HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE March 7, 1995 1:12 p.m. MEMBERS PRESENT Representative Alan Austerman, Co-Chair Representative Ivan, Co-Chair Representative Kim Elton Representative Al Vezey Representative Pete Kott MEMBERS ABSENT Representative Jerry Mackie Representative Irene Nicholia OTHER LEGISLATORS PRESENT Representative Jeannette James COMMITTEE CALENDAR HB 180: "An Act relating to liquor licenses issued to hotel, motel, resort, or similar establishment; and providing for an effective date." PASSED OUT OF COMMITTEE HCRA - 03/07/95 *HB 192: "An Act relating to housing programs of the Alaska Housing Finance Corporation, the corporation's supplemental housing development grants to regional housing authorities, and to housing programs of regional housing authorities, and permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing." SCHEDULED BUT NOT HEARD (*First Public Hearing WITNESS REGISTER BARBARA COTTING, Administrative Assistant Representative Jeannette James Alaska State Legislature State Capitol Building, Room 102 Juneau, AK 99801 Telephone: (907) 465-3743 POSITION STATEMENT: Read the sponsor statement for HB 180 PATRICK SHARROCK, Director Alcoholic Beverage Control Board Department of Revenue 550 W. 7th, Ste. 350 Anchorage, AK 99501 Telephone: (907) 277-8638 POSITION STATEMENT: Answered questions concerning HB 180 NOLAND HALLMAN 520 Macadoo Lane Wasilla, AK 99654 Telephone: (907) 373-0571 POSITION STATEMENT: Supported HB 180 PREVIOUS ACTION BILL: HB 180 SHORT TITLE: LIQUOR LICENSES FOR RESORT/LODGES SPONSOR(S): REPRESENTATIVE(S) JAMES JRN-DATE JRN-PG ACTION 02/15/95 369 (H) READ THE FIRST TIME - REFERRAL(S) 02/15/95 369 (H) ITT, CRA, L&C 02/21/95 (H) ITT AT 02:30 PM CAPITOL 408 02/21/95 (H) MINUTE(ITT) 02/22/95 446 (H) ITT RPT 2DP 5NR 02/22/95 446 (H) DP: JAMES, MASEK 02/22/95 446 (H) NR: KOTT, PORTER, ROBINSON, NICHOLIA 02/22/95 446 (H) NR: AUSTERMAN 02/22/95 446 (H) ZERO FISCAL NOTE (REV) 03/07/95 (H) CRA AT 01:00 PM CAPITOL 124  BILL: HB 192 SHORT TITLE: AHFC HOUSING LOANS SPONSOR(S): REPRESENTATIVE(S) FOSTER,Ivan JRN-DATE JRN-PG ACTION 02/22/95 448 (H) READ THE FIRST TIME - REFERRAL(S) 02/22/95 448 (H) COMMUNITY & REGIONAL AFFAIRS, FINANCE 02/27/95 511 (H) COSPONSOR(S): IVAN 03/07/95 (H) CRA AT 01:00 PM CAPITOL 124 ACTION NARRATIVE TAPE 95-5, SIDE A Number 000 CO-CHAIR IVAN opened the House Community and Regional Affairs Committee at 1:12 p.m. He noted the cancellation of the first item on the agenda, the first hearing of HB 192 sponsored by Representative Foster. He stated the next item on the agenda was HB 180 and recognized those on teleconference to testify. He invited Barbara Cotting to come forward on behalf of Representative Jeannette James to introduce HB 180. HCRA - 03/07/95 HB 180 - LIQUOR LICENSES FOR RESORT/LODGES Number 029 BARBARA COTTING, Administrative Assistant to Representative Jeannette James, stated this bill was introduced at the request of a constituent. She read the following sponsor statement: "HB 180 was a cooperative effort between remote lodge owners and the Alcoholic Beverage Control Board to correct an inequity. Under the current laws, some small lodges which just happen to be located in a remote corner of large, unified population areas, cannot get a liquor license. These small remote lodges exemplify the very heart of Alaska and provide a vital service to Alaskan residents as well as visitors from outside our state. For example, as the law now reads, if a person wants to develop a small lodge or tourist facility in a remote or inaccessible area of the Mat-Su or Kenai boroughs, the lodge would be required to have 40 rental rooms to obtain a full service liquor license. All of us who have enjoyed visiting small remote lodges in Alaska know that this requirement is excessive and unfair. It's important to realize this is not a liquor issue. This is an effort to remove a road block created by an inequity in our laws. If Alaska is to survive economically, we must allow hard working Alaskans to develop small businesses in the spirit of Alaskan enterprise." Ms. Cotting stated this bill was first heard in the House Special Committee on International Trade and Tourism and many questions arose that could only be answered by the Alcoholic Beverage Control Board. For this reason, she said, Patrick Sharrock was on teleconference to help answer questions from the committee. Number 067 CO-CHAIR IVAN asked the members if they had any comments or questions. Number 069 CO-CHAIR ALAN AUSTERMAN asked if this change in legislation would affect how lodges would apply for liquor licenses. He used an example from his district of Kodiak, in which a hunting lodge applied for a liquor license. He said this hunting lodge was within skiff distance from a village and the villagers were opposed to having a liquor store in the perimeters of the village. He wanted to know whether the municipality or the borough would be given the opportunity to oppose a liquor license in their vicinity. Number 098 PATRICK SHARROCK, Director, Alcoholic Beverage Control Board (ABC Board), answered that the application procedure and administrative processing of the application would be the same as it always was, but this legislation would only add another step of criteria, whereby a person could obtain a liquor license. Number 111 REPRESENTATIVE PETE KOTT asked Mr. Sharrock to comment on the requirements concerning the decision to allow public testimony to be included as part of the decision making process that allocates liquor licenses. Number 119 MR. SHARROCK listed the process for granting a license. First, the application had to be publicly posted for at least ten days. It also had to be advertised once a week for three weeks in a newspaper publication. Upon completion of public notification, the application is filed with the ABC Board. If the proposed premises rests in an area that has a local governing body, the ABC Board forwards a copy of the application to that governing body for their opportunity to lodge or file a protest of the application. Under the statute, if that governing body does "protest" that application, the statute tells the ABC Board that it can't approve the application unless the reason of "protest" is found arbitrary and unreasonable. During this process, any public testimony in written form or appearance before the board is welcome. Number 147 CO-CHAIR IVAN also asked how this proposed legislation would affect unorganized boroughs. Number 154 MR. SHARROCK answered there were separate rules under the statute for premises in unorganized boroughs. Under current law, these were determined by the population within a five mile radius of a proposed licensed premises. If a person were to establish a tourist facility as a location in the unorganized borough, that person would have to have a minimum of ten rooms, or the number of rooms is determined by the population of a community within a five mile radius of the proposed premises in order to be eligible to apply for a liquor license. Number 174 CO-CHAIR IVAN stated that his constituents were concerned over local businesses in his district looking into getting liquor licenses in the future. Number 180 MR. SHARROCK stated that HB 180 does not apply to unorganized borough areas. He said there were separate statutes that deal with how licenses were issued in the unorganized borough. Number 185 CO-CHAIR AUSTERMAN asked about notification policies in areas not included within city limits. He wanted to know if unincorporated villages would not be informed of pending license applications. Number 196 MR. SHARROCK confirmed this and said the village would not be notified. Number 198 NOLAND HALLMAN from Mat-Su, expressed his approval of HB 180. He stated he was particularly in favor of the issuance of a liquor license for Maclaren River Lodge owned by Mike Tittle. He explained that the lodge was completely isolated and had at least ten rooms and was only accessible by snowmobile in the winter time. Mr. Hallman said the license would help Mr. Tittle's winter trade coming out of Fairbanks and Anchorage. Number 220 CO-CHAIR IVAN invited questions or comments from committee members. Number 225 REPRESENTATIVE AL VEZEY moved that HB 180 pass from the Community and Regional Affairs (CRA) Committee with individual recommendations and with attached zero fiscal notes. Number 229 CO-CHAIR IVAN heard no objection and it was so ordered. CO-CHAIR IVAN informed the committee of the next scheduled meeting and agenda. ADJOURNMENT CO-CHAIR IVAN adjourned the House Community and Regional Affairs Committee at 1:24 p.m.