SB 9-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG  1:30:26 PM CHAIR COSTELLO announced the consideration of 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." 1:31:12 PM SENATOR PETER MICCICHE, sponsor of SB 9, Alaska State Legislature, Juneau, Alaska, summarized that the goal of the legislation is to modernize the Title 4 alcohol statutes with changes that improve the processes for public safety, public health, and the industry. 1:32:12 PM CHAIR COSTELLO opened public testimony on SB 9. 1:32:24 PM LEE ELLIS, President, Brewers Guide of Alaska; President, Midnight Sun Brewing Company, Anchorage, Alaska, stated that it has taken nine years of hard work to come to consensus on what the modern alcohol laws should look like. SB 9 is the best work of 120 different stakeholders from public health, law enforcement, and the wholesalers, retailers, and manufacturers in the alcohol industry. He said modernization is critical for the industry, as is streamlining licensing, and enhancing the privileges of craft breweries. He encouraged the committee to move the bill. 1:34:17 PM ROBIN MINARD, MatSu Health Foundation, Wasilla, Alaska, stated that the foundation supports SB 9 because it represents a multiyear, multi-stakeholder partnership with the alcohol industry to promote the responsible use of alcohol by adults, reduce underage consumption, support better enforcement of Alaska's alcohol laws, and have a healthy industry. She thanked the committee and asked that they move the bill forward because it has health benefits for all Alaskans. 1:36:00 PM EVAN WOOD, Co-owner and Co-founder, Devils Club Brewery, Juneau, Alaska, agreed with previous testimony that it has been a long journey to arrive at SB 9. He said it is a rare opportunity to have all the stakeholders on the same page in support of the legislation in its current form. The past year has been onerous and he believes that passing the bill in an expedited manner would be alleviating for the industry. 1:37:32 PM SARAH OATS, President, Alaska Cabaret Hotel Restaurant and Retailers Association (CHARR), Anchorage, Alaska, stated that Alaska CHARR is the state's trade association that represents many of the 2000 liquor licenses statewide. She said that after many years, stakeholders reached consensus on a thoughtful draft of alcohol regulatory reform. There was agreement among public health, public safety, state and municipal regulatory bodies, and the three industry tiers. SB 9 captures that consensus. MS. OATS said Alaska CHARR fully supports SB 9 and urges the committee to pass the legislation, which will provide long-term regulatory certainty. She described the impact the pandemic has had on the industry and emphasized that SB 9 provides the opportunity to move forward with a better regulatory system and for Alaska's second largest industry to thrive. The changes include the penalty modifications for violations to ensure fair and consistent enforcement of alcohol laws; expedited application processes; and statutes that make it easy for industry members to understand their legal privileges, restrictions, and expectations. 1:40:34 PM TIFFANY HALL, Recover Alaska, Anchorage, Alaska, stated that for many years Recover Alaska has worked hand in hand with other public health and safety proponents, all levels of the alcohol industry, as well as local, municipal and community leaders. She cited data to show that Alaska struggles with many problems associated with alcohol. Alaskans die at rates three times the national average and alcohol costs the state $2.4 billion, 709 million of which is lost productivity. Other costs include health care, criminal justice, traffic collisions, and social services. MS. HALL said Recover Alaska supports SB 9 for its positive health and safety provisions that are largely evidenced-based practices. These practices will work to reduce underage drinking, increase public safety by reducing alcohol related violence and crime, and will reduce alcohol related deaths. Further, the bill will provide clarity and education for the Alcohol and Marijuana Control Office and licensees, which will make it easier for everyone to follow and enforce Title 4 laws. She said all stakeholders can agree on this bill. 1:42:46 PM JEANNE REILLY, Reilly's Irish Pub, Anchorage, Alaska, stated that the industry has come together with the Brewers Guild and the beverage dispensary licensees in a fantastic compromise after many years of debate. She voiced support and hope that the bill would move forward. 1:43:50 PM CHAIR COSTELLO closed public testimony on SB 9 after discerning that nobody else wished to comment. SENATOR STEVENS asked the sponsor to remind the committee what SB 9 does to control substance abuse. SENATOR MICCICHE answered that the bill will help by clarifying the way licensees operate and by providing funding for additional enforcement. Under current law, many infractions that are misdemeanors are neither enforced nor prosecuted. SB 9 changes those infractions to violations with an associated fine. The penalty is immediate and does not require extensive court time. The bill also links the license holder to the violation when a server overserves somebody or serves a minor. Along with this, there is funding for education so licensees know how to comply with the rules. He noted that part of the education outreach includes the new marijuana rules. CHAIR COSTELLO found no further questions and solicited a motion. 1:46:42 PM SENATOR REVAK moved to report SB 9, work order 32-LS0124\B, from committee with individual recommendations and attached fiscal note(s). 1:46:54 PM CHAIR COSTELLO found no objection and SB 9 passed from the Senate Labor and Commerce Standing Committee. 1:47:04 PM At ease 1:48:57 PM CHAIR COSTELLO reconvened the meeting and invited the sponsor to make closing remarks. SENATOR MICCICHE said many people worked on this bill and significantly improved it in the process. He thanked the committee for moving the bill and for the help in past years to improve the bill.