SENATE BILL NO. 9 "An Act relating to alcoholic beverages; relating to the regulation of manufacturers, wholesalers, and retailers of alcoholic beverages; relating to licenses, endorsements, and permits involving alcoholic beverages; relating to common carrier approval to transport or deliver alcoholic beverages; relating to the Alcoholic Beverage Control Board; relating to offenses involving alcoholic beverages; amending Rule 17(h), Alaska Rules of Minor Offense Procedure; and providing for an effective date." 9:46:30 AM Co-Chair Bishop relayed that the committee was hearing SB 9 for the first time and would consider the bill and then set it aside. 9:47:04 AM SENATOR PETER MICCICHE, SPONSOR, discussed the bill. He reminded that the bill had passed the Senate twice. He emphasized that the legislation was a collaborative, year's long effort from a large group of stakeholders. he estimated that there was about 16,000 hours invested in the bill. He listed stakeholders including public safety, public health, the industry, the Alcohol and Marijuana Control Office (AMCO) Board, the Alcoholic Beverage Control (ABC) Board, and the legislature. Senator Micciche relayed that stakeholders had worked together to meet the goals of Title IV in promoting a fair business climate, protection of public health and safety, limiting youth access to alcohol, promoting responsible alcohol use and reducing the harms of over-consumption, implementing change without negatively harming existing businesses and responsible operators, and expanding local control for municipalities. Senator Micciche noted that key concepts of the bill were: sticking with a three-tier system to prevent inappropriate monopolies, licensure restructure with clearly defined categories, and regulating the number of licenses available in each community by type. He emphasized that the bill was about balance, reorganization, and fairness. He noted that 90 percent of the bill proposed to reorganize existing statute. Senator Micciche identified that not every bar owner supported the bill, but the Alaska Cabaret, Hotel, Restaurant and Retailers (CHARR) Association did support the bill. He noted that not every manufacturer supported the bill, but the Alaska Brewers Guild did support the bill. He thought the Department of Public Safety wanted the bill to be stricter, but Recover Alaska, the Alaska State Troopers, and the Public Safety Employees Association supported the bill because of the balance that had been struck between. He thought the bill was important for economic recovery in the industry. He emphasized that although alcohol was the number one substance abuse problem in the state, it was also an important industry. He asserted that the bill improved public safety and provided tools for the industry to be successful. 9:50:42 AM ANNA BRAWLEY, TITLE IV REVIEW COORDINATOR, AGNEW BECK CONSULTING, ANCHORAGE (via teleconference), discussed the presentation "Alcoholic Beverage Control (ABC) Board Title 4 Review Project - Overview of Senate Bill 9" (copy on file). Ms. Brawley advanced to slide 5, "Goals of Title 4 Review Process": A comprehensive, systems-level review, and a series of compromises to make Title 4 work better for everyone. Promote a fair business climate and protect public health and safety. 1.Create rational regulation for all tiers of the state's alcohol industry. 2.Limit youth access to alcohol, while ensuring youth are not criminalized 3.Promote responsible alcohol use and reduce the harms of overconsumption. Make Title 4 a clear and consistent legal framework. 1.Increase swiftness, proportionality and consistency of penalties. 2.Increase local law enforcement of Title 4. 3.Increase licensee accountability before the ABC Board for Title 4 violations Ms. Brawley thought the goal of the bill was to strike a balance and have the state's alcohol laws work better for everybody. Ms. Brawley showed slide 6, "Categories of Recommendations": 1.Alcohol Licenses, Permits and Trade Practices 2.Role and Functions of the ABC Board and Staff 3.Underage Drinking and Youth Access to Alcohol 4.Regulation of Internet Sales of Alcohol 5.Technical or Administrative Law Changes 6.Local Option Communities **Note: Local Option recommendations are documented in the report, but not included in SB 9. More comprehensive discussion of Local Option laws is needed in the future.6 Note: all section references current to SB 9 ver. I, 4-14-21 Ms. Brawley discussed slide 7, " The 3-Tier System": Alcohol must be manufactured, distributed and sold to the public by different businesses. This is designed to prevent monopolies. Ms. Brawley stated that slide 7 was a general overview of how the state managed alcohol. There was a flow chart showing the three tiers: manufacturing, wholesale, and retail. She mentioned that much of the bill discussion had pondered how to keep the system in place but be more flexible and respond to how the current system operated. Ms. Brawley spoke to slide 8, "Alaska's Liquor License System: Proposed Changes," which showed a graph flow chart. She noted that the next three slides were part of a graphic that illustrated how SB 9 reorganized existing licenses so that they were easy to understand. The licenses would follow the general organization of the three-tier system and would offer more options for businesses such as endorsements. Ms. Brawley looked at slide 9, "Alaska's Liquor License System: Proposed Changes." The graphical chart showed the types of retail licenses that served the public, such as bars, package stores, and restaurants. She explained that most already existed in law save for a few new licenses being proposed that she would address in a later slide. Ms. Brawley showed slide 10, "Alaska's Liquor License System: Proposed Changes." The graphical chart showed the retail tier licenses. She thought it was important to understand that there were licenses specifically responding to the fact that the state had a strong tourism and hospitality sector. The licenses were not tied to population limits and were designed to serve visitors to a community. Some of the licenses already existed and were more options proposed in the bill. 9:54:09 AM Ms. Brawley addressed slide 11, "Proposed: More Retail Options for Manufacturers," which showed a flow chart. She explained that the slide was an example of how the bill was proposing more flexibility. She noted that currently a brewery would have one license that allowed it to make beer and sell it to the public on a limited basis. The bill proposed more options for the businesses to be able to own a bar, a restaurant, or package store, which was not currently allowed. She mentioned a "brewpub" business model as opposed to a limited retail space. Ms. Brawley reviewed slide 12, "Proposed: Manufacturer Sales Limits by Product Type," which showed a graphical chart of onsite sales versus offsite sales for brewery, winery, and distillery retail. The slide illustrated what was already in the law and clarified how much each limited retail license allowed for serving. Ms. Brawley spoke to slide 13, "Proposed: Endorsements on Licenses": Add endorsements to existing licenses, giving businesses flexibility in how to operate, without creating more specific license types. BASE LICENSE ENDORSEMENTS - Expanded activities and/or premises to fit business model Endorsements would allow sampling on premises, multiple bar rooms, deliveries by package stores, etc. Section 13, 04.09.400; endorsements defined in 04.09.410 - .520 Ms. Brawley explicated that rather than creating a new license type for every single business model, the bill proposed to allow more flexibility by adding endorsements to licenses. She used the example of allowing for a larger premises or allowing sampling not allowed under the base licenses. She thought licenses had been expanded in inconsistent ways in the past and that endorsements would allow more options. Ms. Brawley spoke to slide 14, "Proposed Endorsements": ? R-7A | Bowling Alley Endorsement ? R-7B | Package Store Shipping Endorsement ? R-7C | Package Store Delivery Endorsement ? R-7D | Package Store Re-Packaging Endorsement ? [R-1] Multiple Fixed Counter Endorsement [R-1] Hotel/Motel Endorsement ? [R-1] Large Resort Endorsement ? [R-3] Package Store Sampling Endorsement ? [M-1] Brewery Repackaging Endorsement Ms. Brawley noted that many of the proposed endorsements were already in law but were not standardized nor easily added to a license. Ms. Brawley referenced slide 15, "Proposed: Limited Free Samples for Package Stores": • In current title 4, Package Stores cannot allow any consumption on premises • the bill would allow small free samples, with a Package Store Sampling Endorsement • Ounce limits defined as: "Any combination of products, not to exceed the alcohol equivalent of any single product type" • Ex: Customer A chooses 12 oz. beer. Customer B chooses 6 oz. cider and 3 oz. wine. Customer C chooses 2 oz. wine, and 4 oz. beer. Ms. Brawley looked at slide 16, " R-7 Standardize Permits": ? Unlike licenses, permits are typically issued for single events, on or off licensed premises. ? Define all permit types in statute, not just in regulation ? Fee for all permits is $50 per event day ? Most permits listed are already in statute or regulation ? New permit: Tasting Event Permit, allowing a Package Store to host an event on premises Section 13, 04.09.600; permits defined in 04.09.610 - .690 Ms. Brawley showed slide 17, "Proposed Permits": ? R-7F | Beverage Dispensary Caterer's Permit (AS 04.11.230; 3 AAC 304.685) ? R-7G | Restaurant Caterer's Dining Permit (3 AAC 304.680) ? R-7H | Club Caterer's Permit (3 AAC 304.690) ? R-7I | Nonprofit Event Permit (AS 04.11.240) ? R-7J | Art Exhibit Permit (3 AAC 304.697) ? R-7K | Alcoholic Beverage Auction Permit (3 AAC 304.699) ? R-7L | Inventory Resale Permit (Retail Stock Sale License, AS 04.11.200) ? R-7M | Package Store Tasting Event Permit (proposed) ? [2020] | Music Festival Permit (proposed) ? [2020] | Live Music & Entertainment Permit (proposed) Section 13, 04.09.600; permits defined in 04.09.610 - .690 Ms. Brawley noted that some of the listed permits were held by licensees, and others were held by non-profits. The bill proposed to reorganize what was allowed. Ms. Brawley reviewed slide 18, "Proposed: Package Store Tasting Event Permit": • Allows a package store to host a special tasting event on its own premises, with onside consumption of alcohol for those attending event. • The event may be in the store or another area of their property, such as a special event space. it may not be held in an offsite location. • Licensees can only offer products in their inventory. Hosting license • Event may last up to 4 hours, and must end by 9 p.m. • Must also serve food • Each license can host 6 events per year in the same community as the license is located Ms. Brawley spoke to slide 19, "Population Limits: Current Title 4 (AS 04.11.400)": Population limits determine how many of each license type may be issued in each community. Restaurants: 1 per 1,500 residents. All other license types (bars, package stores, golf courses, breweries, etc.): 1 per 3,000 residents. Some licenses are exempt from population limits: bars located in hotels or airports, restaurants issued for public convenience, and licenses that serve tourists. Ms. Brawley explained that the next few slides addressed population limits. She communicated that there were exceptions to what was listed on slide 19, specifically for tourism. 9:58:05 AM Ms. Brawley addressed slide 20, "Population Limits: Current Title 4 (AS 04.11.400)": Some license types are exempt from population limits: most exempt license types are designed to serve tourists and travelers, such as hotels or outdoor recreation lodges. They can be issued if other qualifications are met (ex: minimum number of hotel rooms). Ms. Brawley commented that the bill did not propose to throw the system out, and that there were health and safety reasons for wanting to limit the number of licenses. She recognized there were existing licensees that bought into the system. The stakeholders had discussed how to allow for more flexibility for small cities with a limited number of licenses. Ms. Brawley reviewed slide 21, "Proposed Seasonal REPL Tourism": ?Seasonal restaurant license ?Available in smaller communities (< 40,000 pop.) ?Same operating requirements and privileges as full-year restaurants (REPL) Number of licenses per community determined by formula: 5-year average of annual visitors/months in season = Average monthly visitor population Residents + average monthly visitors)/1,500 = Available Seasonal REP Tourism Licenses Season defined as up to 6 months per year, in any combination Example: May through September + 1 winter month Section 13, 04.09.360 Ms. Brawley showed slide 22, "Proposed: Covert Public Convenience Licenses and Applications": Existing Public Convenience licenses would be converted to regular Restaurant or Eating Place Licenses (REPLs). Public Convenience - Not transferable REPL - Transferrable to a new owner or location Applications that have been completed as of the bill's signing date would be converted to applications for regular REPLs, and could be approved by the ABC Board outside the existing population limits. Public Convenience Application REPL - can be approved outside of population limits Sections 167-169, Transition Ms. Brawley noted that the application process for converting to restaurants had been cumbersome for all and under the proposed changes would be more streamlined. Ms. Brawley discussed slide 23, "Proposed: Local Government Petition for Additional Alcohol Licenses," which showed a flow chart of a proposed bill provision that would expand options for licenses in communities. The provision would allow a municipality to prepare a petition for more alcohol licenses in the community. The community could petition the ABC Board for more licenses of a certain type in the jurisdiction. The city would have recourse to revise the application if it was rejected. Ms. Brawley looked at slide 24, "Proposed: Option to Relocate Some Licenses from a Borough to a City": • Current Title 4 allows relocation of a bar (BDL) from a borough to a city within that borough. • The bill proposes also allowing relocation of package stores Ms. Brawley spoke to slide 25, "Proposed: Regulate Trade Practices": Some trade practices are illegal in federal law: practices of alcohol manufacturers and wholesalers to compel retailers' buying decisions or stopping them from buying competitors products. Proposed: add equivalent sections to Title 3, protect retails and allow for state enforcement. Tied House Partial ownership of retail license by a manufacturer, to control what products are sold or exclude competitors. Does not apply to 100 percent manufacturer-owned licenses. Exclusive outlet Agreement between supplier and retailer to exclude other retails or suppliers. Commercial bribery Supplier pays bonus or provides merchandise in exchange for exclusive arrangement or agreement not to purchase other products. Consignment sales Supplier and retailer make deals to take back unsold products. Section 88, 04.16.017 Ms. Brawley noted that the slide showed things illegal in federal law but that were not enforced. Most states had laws that allowed an agency such as AMCO to enforce the rules. She noted that the manufacturers and wholesalers had brought up the topic with the bill stakeholders. 10:02:00 AM Ms. Brawley referenced slide 26, "F-1. Adjust License Fees to Reflect Current ABC Budgetary Needs": Update license fees according to privileges and administrative costs of each, and collect sufficient revenue to cover the ABC Board's required activities: Administration of licenses & permits Education about Title 4 and related regulations Enforcement of Title 4 and related regulations ? ABC Board required to review license fees at least every 5 years. ? See Appendix, Table 2 of the Title 4 Review report for current license fees and proposed changes. Section 8, 04.06.090; License fees throughout Section 13 Ms. Brawley noted that the ABC Board and AMCO were receipt- funded agency. The fees had not been changed in many years. Ms. Brawley spoke to slide 27, "Proposed: More Accountability for License Fees Allocated to Local Governments": • Current Title 4 allows for local governments to receive an allocation equal to the license fees collected in their area, intended for enforcement of Title 4 and related ordinances. • Reporting on these activities in required, but not defined in statute. Some jurisdictions report regularly, while others do not. • The bill includes better reporting and prevention about use of these funds, and requiring reports about education activities as well as enforcement. Section 81, 04.11.610 Ms. Brawley discussed slide 28, "RB-4. ABC Board as Key Partner for Alcohol Education Efforts": • The ABC Board and AMCO, subject matter experts on Title 4, would work with other agencies and organizations to develop a coordinated education plan about responsible alcohol use and applicable laws. • Coordinate with Department of Health and Social Services and other agencies tasked with alcohol- related education. 28 Section 5, 04.06.075; Section 9, 04.06.090 Ms. Brawley showed slide 29, "Internet Sales in Alaska: Few Rules": ? Alaska is one of the only states with no rules for Internet sales of alcohol. ? Alaska Package Stores cannot sell alcohol online, only via (paper) written orders. ? Alaska Wineries and Package Stores can ship wine to customers in some circumstances. ? Without state laws restricting online sales, there are currently no limits on purchases of alcohol online from out-of-state sellers. ? Alaska consumers also do not pay state excise tax on online purchases, as they do on products sold and purchased in state. Co-Chair Bishop asked if there had been an amendment in the Senate Labor and Commerce Committee that had related to taxation of wine. Senator Micciche affirmed that there had been such an amendment to the bill, the but the bill had not passed. Ms. Brawley discussed slide 30, "Proposed: Regulate Internet Alcohol Sales": • Alaska does not limit online sales of alcohol. Order from out of state businesses are not subject to Alaska's alcohol excise tax, and the state cannot track how much alcohol is ordered each year. • The bill would create a Winery Direct Shipment License and allow online alcohol sales only from U.S. wineries and Alaska package stores. -Alaska customer orders wine online from winery Wine only: no beer or spirits -Winery Direct Shipment Licensee verifies: Is the customer 21 or older? Is customer in a non-Local Option area? Is order within limit for personal use? 6 cases per sale 12 cases per year -Common carrier receives, transports and delivers order -Carrier verifies customer is 21+, delivers package in person Section 13, 04.09.370; Section 90, 04.16.022; Section 159, 43.60.060 10:06:04 AM Ms. Brawley addressed slide 31, "Proposed: Regulate Internet Alcohol Sales": • Common carriers must be approved by the ABC board to transport and deliver alcohol consumers throughout the state. • Carriers must demonstrate that they have policies and train employees to properly handle shipments of alcohol. -Carrier maintains policies: • Safe alcohol handling • Delivery to adult, age 21+ • Delivery in-person only -ABC board reviews and approves carrier for alcohol transport and delivery -ABC board publishes list of approved carriers Section 13, 04.09.750 Ms. Brawley looked at slide 32, "Tracking Alcohol orders in Local Option Areas: Current title 4": Residents in Local Option communities that allow importation of alcohol may order a limited amount of alcohol each month for personal and non-commercial use. Monthly Importation Limit • 12 gal. Beer - Or 1 half-barrel (15.5 gal) keg • 24L wine (32 bottles) • 10.5 L spirits (14 bottles) -Alaska customer sends order to package store -Licensee verifies: • Is customer 21 or older? • Has customer met monthly order limit? • is new order within monthly limit? -Licensee records new order in ABC Board database -Access limited to: • ABC Board • Package stores • Law enforcement -Common carrier receives, transports and delivers order -Carrier delivers package Sections 10-12 & 16,04.06.095; existing monthly limits defined in AS 04.11.010 Ms. Brawley discussed slide 33, "Proposed: Publish Community-Level Data from Local Option Order Database": • In current Title 4, all data in the Local Option order database is private, and deleted after 1 year. • the bill would keep individual order information private, but retain aggregate data for 10 years and allow the ABC Board to publish annual total sales volume by region or community. • This valuable information would be available to communities and law enforcement to understand the flow of alcohol into Local Option communities via legal sales. - Keep community level data 10 years - Protect individual order data - ABC Board publishes annual data reports Sections 10-12, 04.06.095 10:07:17 AM Senator Wielechowski asked about slide 30, which addressed creating a winery-direct shipment license and would allow online alcohol sales from U.S. wineries and Alaska package stores. He asked about sales from brewing companies and distillers and whether the businesses were allowed to sell online under the bill. Ms. Brawley indicated that most states had a similar system in which only the shipment of wine was allowed. She understood that UPS and FedEx would not ship products other than wine and required a contact with the winery to be able to ship. Senator Wilson asked if breweries and distilleries in the state could ship their product. He asked if there were any other group or industry that had expressed interest in shipping products other than wine within the state. Ms. Brawley did not want to speak for other industries and sectors regarding the provision. She noted that the stakeholder group had not heard opposition to the provision from other industry stakeholders. She thought the law differed by state. Co-Chair Bishop asked if the bill would allow an Alaskan distiller to sell spirits online to the Lower 48. Senator Micciche thought there was an invited testifier that could address the question. He stated that he had not heard from any parties that had a business model that resulted in shipping beer or spirits. He knew there were some people in the state that did ship wine to the Lower 48, and under the bill would be able to continue doing so. He reiterated that most states were doing wine only. He mentioned excise taxes for selling within the state. 10:11:07 AM LEE ELLIS, PRESIDENT, BREWERS GUILD OF ALASKA, ANCHORAGE (via teleconference), addressed shipping out of state. Shipping directly into any state was regulated by the receiving state. Brews or distillers in Alaska could ship to other states that allowed it. He noted that UPS did ship beer. He thought brewers had not expressed particular interest in the subject of shipping prior to the pandemic. He thought Alaska had an unfair law regarding personal importation. The current law allowed breweries and distilleries to ship to Alaska, while Alaskan breweries and distilleries were not allowed to ship directly to consumers in the state. Senator Wilson was interested in helping to try and level the playing field, and would work with the bill sponsor. Ms. Brawley addressed slide 34, "RB-6. Revise Title 4 Penalties": ? Review penalties for all Title 4 sections, and revise as needed to make penalties proportionate to the offense, and more consistently enforced. ? Retain existing Misdemeanor and Felony charges for serious offenses, particularly those causing harm to children. ? Ensure that the ABC Board, and licensee, is informed about Title 4 convictions: require court to send records to AMCO, and AMCO to send to the licensee. ? ABC Board retains authority to impose conditions or additional penalties, including suspending or revoking license. ? See Appendix, Table 3 in Title 4 Review Report for table of all current penalties and proposed changes. Defined throughout; most prohibited acts defined in chapters 11 + 16 Ms. Brawley informed that the remaining slides would deal with penalties. She noted that the stakeholder group had addressed how to rebalance penalties for minor offenses to be dealt with while keeping serious crimes prosecuted at current levels. Ms. Brawley discussed slide 35, "Proposed: Revise Penalties for Lesser Offenses": • In current law, almost all violations of Title 4 are Class A misdemeanors. • When penalties are set high across the board and perceived to be too strict for most offenses, law enforcement is less likely to issue citations and courts are less likely to pursue those cases. • In the bill, many penalties would become minor offenses. Serious violations, such as selling alcohol without a license, allowing gambling on the premises, or perjury on a license application would remain misdemeanors felonies, as they are today. Minor Offense (Violation • Up to $500 fine (most are $250) • Community work service • Does not require court appearance Example: Failure to post required warning signs, noncompliance with a permit regulation Class A Misdemeanor • up to $10,000 fine • Up to 1 year in prison • 10 years probation • Requires court appearance Example: Selling alcohol without a license, knowingly allowing underage sales by employees Class C Felony • Up to $50,000 fine • Up to 5 years in prison • 10 years probation • Requires court appearance Example: Perjury on state license application (Class B), importing large amounts of alcohol into local option area Defined throughout; most prohibited acts defined in chapters 11 + 16 Ms. Brawley summarized that the bill proposed to move minor offenses to minor offense or violation charges and allow the ABC Board or another local enforcement agency to issue a fine. Anything that was a serious offense would be retained as a felony or misdemeanor. 10:14:14 AM Ms. Brawley showed slide 36, "Proposed: Licensee Penalties for Overserving an Adult or Serving a Minor": (AS 04.16.030 and AS 04.16.052) • In current Title 4, a licensee or employee who knowingly overserves an intoxicated adult or who serves alcohol to a minor is guilty of a Class A Misdemeanor. • The bill would change the penalty for both statutes to a Minor Offense, with a $500 fine. • In addition to the penalty to the person who commits the violation, the owner of the license would receive an administrative (non-criminal) penalty of $250. This alerts the owner that a violation occurred, holds them immediately accountable and encourages future compliance. Employee serves a minor - Employee receives ticket and $500 fine from law enforcement - Licensee receives $250 administrative from ABC Board Section 92, 04.16.030; Section 104, 04.16.052; Sections 127 - 129, 04.16.180 Mr. Brawley discussed incentivizing good behavior of businesses. She emphasized businesses knowing a violation happened, and an incentive for corrective action. She thought the proposed $500 fine was a stiff penalty for serving a minor. She thought the tickets would allow the ABC Board to track offenses and know if corrective action was needed. Senator Wielechowski asked about the standard of knowingly serving a minor. He asked if the charge was proposed to be dropped from a misdemeanor to a $500 fine. Ms. Brawley affirmed that the standard was "knowingly" serving a minor. She thought the Department of Law could speak more definitively to the definition. She reiterated that there had been a lack of enforcement of the misdemeanor charge, and the group had discussed the most effective way to go forward. Senator Wielechowski asked about the potential for additional penalties for multiple offenses. Ms. Brawley shared that the stakeholder group had discussed the idea of graduated penalties, which was not built into the proposed bill. She reminded that the ABC Board could step in and suspend an operator's license, which was a significant deterrent. Senator Wielechowski asked how many individuals were charged per year with overserving or serving a minor. Ms. Brawley did not have current data but recalled that previous data regarding Title IV offenses showed that half of the offenses were related to minor consuming. Vanishingly few of the offenses were to an employee or licensee under the proposed statute. 10:18:11 AM Senator Micciche explained that it had taken time for him to support the proposed change listed on slide 36. He had learned that the misdemeanor cases were not being prosecuted and that the courts had higher priorities. He related that the proposed bill provided more enforcement and education with greater available licensing dollars. He emphasized that the proposed system would provide more information for licensees. He thought the proposed change would make the issue more self-correcting as employees would have tickets on record. Ms. Brawley addressed slide 37, "Proposed: Require Keg Registration": • Reduces adults' incentive to legally purchase alcohol and supply an underage drinking party. • Kegs tagged with the purchaser's contact information can be tracked if confiscated at an underage party or other situation where minors are given access to alcohol. • A person, not a licensee, possessing an untagged keg containing alcohol could be fined. • Modeled on existing Anchorage and Juneau ordinances. Licensee sells keg, tags with purchaser information Party with responsible adults - Keg returned to licensee, tag removed Party with underage drinkers - Ticket to keg purchases for furnishing alcohol to minors Section 134, 04.21.012 Ms. Brawley stated that the proposed keg registration not only tried to try to help with the problem of underage drinking but used enforcement to address the issue. The proposed keg registration practice was already in place in Anchorage and Juneau. She asserted that the proposal signified a public health best practice. Senator Wielechowski asked about the penalty for an adult that knowingly purchased alcohol for a minor. Ms. Brawley stated that for a person not employed by a licensee, the penalty would still be a Class A misdemeanor. The keg registration would be an additional penalty. She imagined that if the keg purchaser was identified as the source of alcohol consumed by underage drinkers, the purchaser would be charged with a misdemeanor. 10:22:42 AM Senator Olson understood that currently breweries were not allowed to have live music to perform on the premises, while many manufacturers could have non-profit fundraisers with music. He asked if the bill would allow for a change the treatment of live music. Ms. Brawley affirmed that the bill would clarify that a brewery, winery, or distillery with a retail license was allowed to have live music on the premises. The bill would make a slight change to allow for closure at 10 o'clock p.m. Senator Micciche commented that there was a compromise that had occurred two years previously. He recalled that the board had been trying to enforce some regulations for manufacturers facility. Part of the compromise went from a "soft close" at 8 o'clock in the evening to a "hard close" at 10 o'clock in the evening. The bill limited new tasting rooms to one in 12,000. There could be four permitted events per year, as well as community events such as art shows and fundraisers. He recalled that the previous director of AMCO was terminated due to 12 pages of public testimony against the regulations. He thought there was a balance by working with different user groups. Senator Wilson asked if the bill would allow for curbside pickup. Senator Micciche answered in the negative but thought allowing curbside pickup would be helpful for the industry. He thought it was a concept worth considering. SB 9 was HEARD and HELD in committee for further consideration. Co-Chair Bishop discussed the agenda for the following day.