ALASKA STATE LEGISLATURE  HOUSE LABOR AND COMMERCE STANDING COMMITTEE  March 18, 2020 3:32 p.m. MEMBERS PRESENT Representative Ivy Spohnholz, Chair Representative Louise Stutes Representative Zack Fields Representative Sara Hannan Representative Andi Story MEMBERS ABSENT  Representative Mel Gillis Representative Sara Rasmussen COMMITTEE CALENDAR  CS FOR SENATE BILL NO. 52(FIN) AM "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." - MOVED CSSB 52(FIN) AM OUT OF COMMITTEE HOUSE BILL NO. 257 "An Act relating to the Alaska Banking Code; relating to mutual savings banks; relating to interstate state banks and international banks; relating to the pledging of bank assets as collateral security to tribal organizations; relating to the pledging of bank assets for interest swap agreements; relating to state business licenses; relating to persons who make loans secured by interests in vessels or facilities; relating to liability for the release or threatened release of hazardous substances; relating to the Model Foreign Bank Loan Act; and providing for an effective date." - BILL HEARING CANCELED SENATE BILL NO. 195 "An Act relating to election of a domestic insurer's board of directors." - BILL HEARING CANCELED SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 146 "An Act relating to an application for a license to operate as a dealer in motor vehicles; and requiring a dealer in motor vehicles to maintain liability and property insurance." - BILL HEARING CANCELED PREVIOUS COMMITTEE ACTION  BILL: SB 52 SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG SPONSOR(s): SENATOR(s) MICCICHE 02/11/19 (S) READ THE FIRST TIME - REFERRALS 02/11/19 (S) L&C, JUD, FIN 03/26/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/26/19 (S) Heard & Held 03/26/19 (S) MINUTE(L&C) 03/28/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/28/19 (S) Heard & Held 03/28/19 (S) MINUTE(L&C) 04/02/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/02/19 (S) Heard & Held 04/02/19 (S) MINUTE(L&C) 04/04/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/04/19 (S) -- MEETING CANCELED -- 04/09/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/09/19 (S) Heard & Held 04/09/19 (S) MINUTE(L&C) 04/11/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/11/19 (S) Heard & Held 04/11/19 (S) MINUTE(L&C) 04/16/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 04/16/19 (S) Moved CSSB 52(L&C) Out of Committee 04/16/19 (S) MINUTE(L&C) 04/17/19 (S) L&C RPT CS FORTHCOMING 4DP 04/17/19 (S) DP: REINBOLD, COSTELLO, BIRCH, BISHOP 04/17/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg) 04/17/19 (S) -- MEETING CANCELED -- 04/17/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg) 04/17/19 (S) -- MEETING CANCELED -- 04/19/19 (S) L&C CS RECEIVED SAME TITLE 04/22/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg) 04/22/19 (S) Heard & Held 04/22/19 (S) MINUTE(JUD) 04/23/19 (S) JUD AT 6:00 PM BELTZ 105 (TSBldg) 04/23/19 (S) Heard & Held 04/23/19 (S) MINUTE(JUD) 04/24/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg) 04/24/19 (S) Heard & Held 04/24/19 (S) MINUTE(JUD) 04/26/19 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg) 04/26/19 (S) Moved CSSB 52(JUD) Out of Committee 04/26/19 (S) MINUTE(JUD) 04/29/19 (S) JUD RPT CS 2DP 1AM SAME TITLE 04/29/19 (S) DP: HUGHES, MICCICHE 04/29/19 (S) AM: KIEHL 02/11/20 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/11/20 (S) Heard & Held 02/11/20 (S) MINUTE(FIN) 02/19/20 (S) FIN RPT CS FORTHCOMING 2DP 2NR 1AM 02/19/20 (S) DP: VON IMHOF, BISHOP 02/19/20 (S) NR: WIELECHOWSKI, HOFFMAN 02/19/20 (S) AM: WILSON 02/19/20 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/19/20 (S) Moved CSSB 52(FIN) Out of Committee 02/19/20 (S) MINUTE(FIN) 02/21/20 (S) FIN CS RECIEVED SAME TITLE 02/26/20 (S) TRANSMITTED TO (H) 02/26/20 (S) VERSION: CSSB 52(FIN) AM 02/28/20 (H) READ THE FIRST TIME - REFERRALS 02/28/20 (H) L&C, FIN 03/09/20 (H) L&C AT 3:15 PM BARNES 124 03/09/20 (H) Heard & Held 03/09/20 (H) MINUTE(L&C) 03/11/20 (H) L&C AT 3:15 PM BARNES 124 03/11/20 (H) Heard & Held 03/11/20 (H) MINUTE(L&C) 03/16/20 (H) L&C AT 3:15 PM BARNES 124 03/16/20 (H) Heard & Held 03/16/20 (H) MINUTE(L&C) 03/18/20 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER SENATOR PETER MICCICHE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, provided comments and answered questions during the hearing on SB 52. ACTION NARRATIVE 3:32:36 PM CHAIR IVY SPOHNHOLZ called the House Labor and Commerce Standing Committee meeting to order at 3:32 p.m. Representatives Stutes, Fields, Hannan, Story, and Spohnholz were present at the call to order. SB 52-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG  3:33:08 PM CHAIR SPOHNHOLZ announced that the first order of business would be CS FOR SENATE BILL NO. 52(FIN) am, "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." 3:33:28 PM SENATOR PETER MICCICHE, Alaska State Legislature, prime sponsor of SB 52, stated that its an important bill. He added that it will be more important as the industry works to recover from the impacts [of the coronavirus]. He thanked the committee for hearing the bill. CHAIR SPOHNHOLZ agreed. She offered her belief that the industry will be devastated over the coming months as a result of mandated social distancing. She said everything [the legislature] can do to provide stability is important. 3:34:16 PM REPRESENTATIVE STORY offered her understanding that if SB 52 were to pass, the current recreational site licenses would have seven or eight years depending on the license number - to continue operating similarly. She provided an example of a bowling alley whose patrons consume beer and wine by the lanes. Assuming the bowling alley doesnt have any violations and is licensed under the current recreational site license, she asked if they could continue to do so. SENATOR MICCICHE confirmed that. He said in those seven or eight years there will likely be a transition to another license type, which is an opportunity created by SB 52. REPRESENTATIVE STORY pointed out that there is a gap in SB 52 concerning bowling alleys. She added that if it goes unchanged, they will either need a full beverage dispensary license (BDL) or a tourism license to operate. She said its something that needs to be addressed in the next seven years; nonetheless, she expressed her excitement about the bill overall. SENATOR MICCICHE agreed wholeheartedly. He said there is still additional work to do, adding that this is not the end-all be- all. 3:37:50 PM REPRESENTATIVE STUTES stated that she has significant concerns about the bill. Her primary concern, she said, is the issue of enforcement and who will do it. She expressed concern about the expansion of certain license parameters. She addressed the coronavirus, saying that it will affect everyone, especially the BDL license holders. Nonetheless, she acknowledged the hard work that Senator Micciche, as well as the industry, has put into the bill. CHAIR SPOHNHOLZ opined that enforcement has been undermined by the severity of some of the current sanctions. She said an important element of SB 52 is that it rationalizes and modernizes the sanctions and includes a fiscal note to allow for enforcement. SENATOR MICCICHE acknowledged the statement made by Representative Stutes. He explained that SB 52 did not create the competition between licensees and those that have created a new business model. That situation, he said, existed before this legislation came about. He added that the bill attempts to provide a compromise that works for now; however, there is still more to do. 3:42:12 PM REPRESENTATIVE HANNAN reflected on her experience regarding SB 52. She acknowledged the hard work of Senator Micciche and his staff, as well as from the industry and stakeholders. 3:43:31 PM REPRESENTATIVE STUTES moved to report CSSB 52(FIN) am out of committee with individual recommendations and the accompanying fiscal notes. Without objection, CSSB 52(FIN) am was moved from the House Labor and Commerce Standing Committee. 3:43:59 PM REPRESENTATIVE FIELDS inquired about the insurance bill on the agenda. He indicated the committees interest in moving that legislation forward, whether its before or after the coronavirus-related recess. CHAIR SPOHNHOLZ agreed. She explained that the bills on todays calendar were moved, not due to a lack of interest, but because there are time-sensitive issues related to COVID-19 to address. 3:45:08 PM CHAIR SPOHNHOLZ announced that the House Labor and Commerce Standing Committee was recessed at 3:45 to a call of the chair. 7:45:50 PM ADJOURNMENT  There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 7:46 p.m.