Legislature(2025 - 2026)BELTZ 105 (TSBldg)

01/24/2025 01:30 PM Senate LABOR & COMMERCE

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01:34:34 PM Start
01:37:06 PM SB15
01:57:20 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 15 ALCOHOL: SALE, WARNING SIGNS TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
**Streamed live on AKL.tv**
              SB  15-ALCOHOL: SALE, WARNING SIGNS                                                                           
                                                                                                                                
1:37:06 PM                                                                                                                    
CHAIR BJORKMAN announced the consideration  of SENATE BILL NO. 15                                                               
"An Act relating to the sale  of alcohol; relating to the posting                                                               
of warning  signs for alcoholic  beverages; and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
1:37:42 PM                                                                                                                    
SENATOR KELLY MERRICK speaking as  the sponsor of SB 15, provided                                                               
the following statement:                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                   Senate Bill 15, version A                                                                                  
                       Sponsor Statement                                                                                      
                                                                                                                              
      "An Act relating to the sale of alcohol; relating to                                                                    
     the posting of warning signs for alcoholic beverages;                                                                    
             and providing for an effective date."                                                                            
     Senate  Bill 15  amends  existing statutes  surrounding                                                                    
     the sale and consumption  of alcoholic beverages in our                                                                    
     state. The  bill not only streamlines  our current laws                                                                    
     but  aims  to   promote  responsible  alcohol  service,                                                                    
     enhance  employment opportunities  for  our youth,  and                                                                    
     ensure  that   individuals  under  21   are  adequately                                                                    
     protected. Through  the changes proposed in  this bill,                                                                    
     we clarify  and improve the operational  guidelines for                                                                    
     restaurants,  theaters,   and  seasonal  establishments                                                                    
     holding alcohol licenses.                                                                                                  
                                                                                                                                
     Key provisions include:                                                                                                    
                                                                                                                                
          • Allowing  a person  aged 18-  20 to  be employed                                                                    
          and    alcohol   in    establishments   such    as                                                                    
          restaurants,  breweries,  wineries,  distilleries,                                                                    
          hotels, motels, large resorts                                                                                         
                                                                                                                                
          •  Ensuring establishments  that choose  to employ                                                                    
          those under  21 years of age  adequately supervise                                                                    
          those employees to prevent underage consumption.                                                                      
                                                                                                                                
          •  Expanding the  ability of  individuals aged  16                                                                    
          and older to enter  restaurants and other licensed                                                                    
          premises  for dining,  with protections  to ensure                                                                    
          minors   are   not  inappropriately   exposed   to                                                                    
          alcohol.                                                                                                              
                                                                                                                                
          •  Adjusting  the  service hours  for  alcohol  in                                                                    
          theater  establishments, recognizing  the evolving                                                                    
          nature  of  entertainment   venues  and  providing                                                                    
          greater   flexibility  while   maintaining  public                                                                    
          safety.                                                                                                               
                                                                                                                                
          •  Updating   warning  signs   in  alcohol-serving                                                                    
          establishments to emphasize risks.                                                                                    
                                                                                                                                
     These common-sense  reforms balance public  safety with                                                                    
     desires  of  the  business  community,  reflecting  our                                                                    
     commitment  to  ensuring  that alcohol  consumption  is                                                                    
     managed  responsibly  in  our  communities  while  also                                                                    
     providing     protections,     and    increased     job                                                                    
     opportunities, for young Alaskans.                                                                                         
                                                                                                                                
1:39:56 PM                                                                                                                    
KERRY CROCKER, Staff, Senator Kelly Merrick, Alaska State                                                                       
Legislature, Juneau, Alaska, presented the following Sectional                                                                  
Analysis for SB 15:                                                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                              
                   Senate Bill 15, version A                                                                                  
                       Sectional Analysis                                                                                     
                                                                                                                              
      "An Act relating to the sale of alcohol; relating to                                                                    
     the posting of warning signs for alcoholic beverages;                                                                    
             and providing for an effective date."                                                                            
                                                                                                                                
     Section  1.  Amends  AS 04.09.210(c)  -  Restaurant  or                                                                  
     eating place license  Incorporates supervision of minor                                                                    
     employees  as  a  criteria of  consideration  when  the                                                                    
     board issues or renews a license.                                                                                          
                                                                                                                                
     Section  2.  Amends  AS 04.09.210(d)  -  Restaurant  or                                                                  
     eating place  license Authorizes the license  holder to                                                                    
     employ those aged 16 to  21 years but requires adequate                                                                    
     supervision  of employees  who are  16 or  17 years  of                                                                    
     age, so they do not obtain alcoholic beverages.                                                                            
                                                                                                                                
     Section  3. Amends  AS 04.09.250(c)    Theater  license                                                                  
     Expands  the time  period in  which  a theater  license                                                                    
     holder may sell or  serve alcohol. Removes intermission                                                                    
     language.                                                                                                                  
                                                                                                                                
     Section   4.   Amends   AS  04.09.360(c)       Seasonal                                                                  
     restaurant or  eating place  tourism license  Repeat of                                                                    
     Section   1   for   the   seasonal   tourism   license,                                                                    
     incorporating  supervision  of  minor  employees  as  a                                                                    
     criteria to be considered  by the board during issuance                                                                    
     or renewal of a license.                                                                                                   
                                                                                                                                
     Section   5.   Amends   AS  04.09.360(f)       Seasonal                                                                  
     restaurant or  eating place  tourism license  Repeat of                                                                    
     Section   2   for   the   seasonal   tourism   license,                                                                    
     authorizing  1621-year-old   employees, provided  there                                                                    
     is adequate supervision.                                                                                                   
                                                                                                                                
     Section   6.  Amends   AS  04.09.450(d)      Restaurant                                                                  
     endorsement  Repeat of  Section  1  for the  restaurant                                                                    
     endorsement,   incorporating   supervision   of   minor                                                                    
     employees as a  criteria to be considered  by the board                                                                    
     during issuance or renewal of a license.                                                                                   
                                                                                                                                
     Section   7.  Amends   AS  04.09.450(e)      Restaurant                                                                  
     endorsement  Repeat of  Section  2  for the  restaurant                                                                    
     endorsement,   authorizing  1621-year-old    employees,                                                                    
     provided there is adequate supervision.                                                                                    
                                                                                                                                
     Section 8.  Amends AS 04.16.049(d)    Access of persons                                                                  
     under the age  of 21 to licensed  premises Allows those                                                                    
     who are  aged 18, 19, or  20 employed by a  licensee to                                                                    
     serve,   sell,   deliver,    and   dispense   alcoholic                                                                    
     beverages.   Adds  language   to   ensure  that   adult                                                                    
     entertainment establishments are excluded.                                                                                 
                                                                                                                                
     Section 9. Amends AS 04.16.049(h)    Access of underage                                                                  
     persons to  licensed premises Allows those  aged 16 and                                                                    
     over  to be  present unattended  on the  premises of  a                                                                    
     theater license  holder or a large  resort endorsement;                                                                    
     those under 16  must be accompanied by a  person who is                                                                    
     at least  21 years  of age, with  the consent  of their                                                                    
     parent or legal guardian.                                                                                                  
                                                                                                                                
     Section  10. Amends  AS 04.16.049    Access  of persons                                                                  
     under the age of 21  to licensed premises Defines adult                                                                    
     entertainment.  These   establishments  may   not  take                                                                    
     advantage  of expanded  employee allowances  in Section                                                                    
     8.                                                                                                                         
                                                                                                                                
     Section  11. Amends  AS  04.16.052(a)    Furnishing  of                                                                  
     alcoholic  beverages to  underage persons  by licensees                                                                    
     Allows  licensees  or  an  agent  or  employee  of  the                                                                    
     license  to allow  another person  to sell,  barter, or                                                                    
     give an  alcoholic beverage to  a person under  the age                                                                    
     of   21  years   only  under   the  provisions   in  AS                                                                    
     04.16.049(d).                                                                                                              
                                                                                                                                
     Section 12.  Amends 04.21.065(b)    Posting  of warning                                                                  
     signs  Replaces  the  signs  currently  on  display  at                                                                    
     alcohol vendors  with one that reads  "WARNING: Alcohol                                                                    
     use during  pregnancy can cause birth  defects. Alcohol                                                                    
     use  can  cause  cancer,  including  breast  and  colon                                                                    
     cancers."                                                                                                                  
                                                                                                                                
     Section 13.  Repeals AS 04.09.250(d)    Theatre license                                                                  
     This  is the  portion  of the  theater license  statute                                                                    
     regarding  where  alcohol  can  be  sold,  served,  and                                                                    
     consumed within  the theatre.  With updates  in Section                                                                    
     9, this line is no longer necessary.                                                                                       
                                                                                                                                
     Section 14. Effective date of July 1, 2025                                                                               
                                                                                                                                
1:43:31 PM                                                                                                                    
SENATOR DUNBAR  stated a similar  bill was heard in  the previous                                                               
legislature. He  asked how  SB 15 differs  from last  years  bill                                                               
and what similarities remain.                                                                                                   
                                                                                                                                
1:43:51 PM                                                                                                                    
MR. CROCKER answered  there are zero changes that  have been made                                                               
to SB 15 from House Bill 189.                                                                                                   
                                                                                                                                
1:44:18 PM                                                                                                                    
CHAIR BJORKMAN announced invited testimony on SB 15.                                                                            
                                                                                                                                
1:44:48 PM                                                                                                                    
CODIE  COSTELLO,  President,  Alaska Center  for  the  Performing                                                               
Arts,  Anchorage, Alaska,  testified  in support  of  SB 15.  She                                                               
stated she  is the Chief  Operating Officer of the  Alaska Center                                                               
for the  Performing Arts and  General Manager of  Broadway Alaska                                                               
She offered the following statement:                                                                                            
                                                                                                                                
[Original punctuation provided]                                                                                                 
                                                                                                                                
     Thank you  for the opportunity to  discuss the benefits                                                                    
     of SB 15  today. Alaska Center for  the Performing Arts                                                                    
     (ACPA)  has been  in operation  for over  35 years.  We                                                                    
     partner with  presenters and producers from  Alaska and                                                                    
     around   the   world   to  provide   world-class   Arts                                                                    
     experiences  to  our  community, including  8  resident                                                                    
     companies.                                                                                                                 
                                                                                                                                
     We  are in  our second  season of  Broadway Alaska    a                                                                    
     multi-year    partnership    with    The    Nederlander                                                                    
     Organization.   Last  year   we   presented  4   shows,                                                                    
     generating  over $30  million  in  economic impact  for                                                                    
     downtown  Anchorage and  the state  of Alaska.  That is                                                                    
     from our Broadway program alone,  not to mention all of                                                                    
     the other events  hosted at the PAC!  We understand the                                                                    
     importance  of  our  role as  an  economic  engine  for                                                                    
     Downtown,  Anchorage  and  Alaska. We've  seen  patrons                                                                    
     from all over the country  and cities across Alaska for                                                                    
     our  new  Broadway program,  and  we  are just  getting                                                                    
     started! Next week, we will welcome BEETLEJUICE.                                                                           
                                                                                                                                
     SB 15  allows us to  continue this work,  expanding our                                                                    
     local business  operations and revenue  while enhancing                                                                    
     the theatre experience for our patrons.                                                                                    
     Under  our current  alcohol license,  patrons may  only                                                                    
     consume alcohol  in our upper-level lobbies  and within                                                                    
     limited timeframes, and there  is no alcohol allowed in                                                                    
     theatres and the workforce is limited.                                                                                     
                                                                                                                                
     SB 15  provides an updated  framework for the  rules of                                                                    
     our  license. ACPA  requests this  licensing change  to                                                                    
     increase  our service  flexibility  to accommodate  our                                                                    
     clients and patrons and ensure  their experience at the                                                                    
     theatre is  relaxed and responsible, and  our venue and                                                                    
     services  reflect the  type of  experience our  patrons                                                                    
     seek and  that we  can support and  promote. Currently,                                                                    
     if a  patron purchases a drink  during an intermission,                                                                    
     they need to procure, drink  and be back in their seats                                                                    
     within minutes. This system  is rushed, unnecessary and                                                                    
     leads to a harried atmosphere and product waste.                                                                           
                                                                                                                                
     We  have a  robust  operations plan  for  the PAC  with                                                                    
     well-trained event, security  and concessionaire staff.                                                                    
     We are poised to scale  up and adjust our operations to                                                                    
     ensure  continued  successful,   safe  and  responsible                                                                    
     operations with the passage of SB 15.                                                                                      
                                                                                                                                
     SB  15 increases  ACPA's economic  impact for  downtown                                                                    
     Anchorage; drives  increased operating revenue  to help                                                                    
     us reinvest  in the  facility and personnel;  keeps our                                                                    
     theatre  license in  line with  the national  standards                                                                    
     and increases  the quality of our  patrons' experience.                                                                    
     It  is   a  win  for  local   businesses  by  expanding                                                                    
     workforce  and for  the Arts  industry  and the  lively                                                                    
     downtown   experience  we   all  help   to  curate   in                                                                    
     Anchorage.                                                                                                                 
                                                                                                                                
1:48:28 PM                                                                                                                    
SARAH OATS HARLOW, President, Alaska Cabarets, Hotels,                                                                          
Restaurants, Retailers (CHARR), Anchorage, Alaska, testified in                                                                 
support of SB 15. She offered the following testimony:                                                                          
                                                                                                                                
[Original punctuation provided]                                                                                                 
                                                                                                                                
     I  have  served  as  President  &  CEO  of  the  Alaska                                                                    
     Cabaret, Hotel,  Restaurant, and  Retailers Association                                                                    
     (commonly  known as  Alaska CHARR)  since 2018.  Alaska                                                                    
     CHARR  has over  700 members  and represents  over 2000                                                                    
     hospitality  establishments  that  employ  over  36,000                                                                    
     workers across Alaska communities.                                                                                         
                                                                                                                                
     Alaska's   hospitality  industry   continues  to   face                                                                    
     significant ongoing challenges  to business operations,                                                                    
     the  greatest of  which  being  ongoing and  increasing                                                                    
     labor shortages.                                                                                                           
                                                                                                                                
     Currently, Alaska  is one of  only three  states (along                                                                    
     with Utah and  Nevada) that requires a person  to be 21                                                                    
     years  of  age or  older  to  serve alcohol.  Employers                                                                    
     struggle  to promote  or retain  quality employees  who                                                                    
     are  18-20 years  of age  because  they are  prohibited                                                                    
     from  serving alcohol  or  supervising other  employees                                                                    
     who serve  or sell  alcohol. Alaska is  not competitive                                                                    
     in  this space,  and  our industry  is experiencing  an                                                                    
     outmigration of young workers.                                                                                             
                                                                                                                                
     When  I was  in my  late  teens and  early twenties,  I                                                                    
     attended college  while serving  and bartending  in the                                                                    
     Pacific Northwest.  During summer  breaks, I  stayed in                                                                    
     the  Pacific Northwest  rather than  returning home  to                                                                    
     Alaska because  I could  make significantly  more money                                                                    
     as  a  server  or  manager      positions  that  I  was                                                                    
     prohibited by law from working  in in my home state. In                                                                    
     multiple  years, I  earned six  figures by  serving and                                                                    
     bartending as  a young  adult outside  of Alaska;  if I                                                                    
     had  returned  to Alaska,  I  would  have been  limited                                                                    
     under  current statute  to positions  that paid  25-30%                                                                    
     what I was able to  make outside. Many young people are                                                                    
     making the  same choice in  today's labor  market which                                                                    
     is having  a significant  impact on  Alaska hospitality                                                                    
     businesses.                                                                                                                
                                                                                                                                
     Senate  Bill 15  will  help  hundreds of  Alaskan-owned                                                                    
     establishments  around  the   state  that  collectively                                                                    
     represent Alaska's largest  private employer and second                                                                    
     largest industry.                                                                                                          
                                                                                                                                
     As  the  voice  of  Alaska's  hospitality  industry,  I                                                                    
     respectfully  request  that  you support  thousands  of                                                                    
     workers and  businesses around the  state by  voting in                                                                    
     support of Senate Bill 15.                                                                                                 
                                                                                                                                
1:51:07 PM                                                                                                                    
CHAIR BJORKMAN [concluded invited testimony on SB 15.]                                                                          
                                                                                                                                
1:51:30 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 15.                                                                                
                                                                                                                                
1:52:11 PM                                                                                                                    
TIFFANY HALL,  CEO, Recover Alaska, Anchorage,  Alaska, testified                                                               
in  opposition to  SB  15. She  said SB  15  poses a  significant                                                               
threat to the  safety, health, and future of  Alaska's youth. The                                                               
risks outweigh  the potential benefits.  She added  that exposing                                                               
minors to  alcohol serving environments undermines  public health                                                               
objectives  and could  normalize  underage  drinking. She  stated                                                               
there is  no evidence suggesting  that lowering server  age would                                                               
alleviate  labor shortages.  She  said instead  of risking  youth                                                               
safety, the  hospitality industry  should focus on  higher wages,                                                               
better working conditions and automation  to attract workers. She                                                               
stated  that  posting  cancer  risk warning  signs  is  the  only                                                               
portion of SB 15 she favors.                                                                                                    
                                                                                                                                
1:55:55 PM                                                                                                                    
CHAIR BJORKMAN left public testimony open on SB 15.                                                                             
                                                                                                                                
1:56:01 PM                                                                                                                    
CHAIR BJORKMAN [held SB 15 in committee.]                                                                                       

Document Name Date/Time Subjects
SB15 ver. A.pdf SL&C 1/24/2025 1:30:00 PM
SB 15
SB15 Sponsor Statement Ver. A.pdf SL&C 1/24/2025 1:30:00 PM
SB 15
SB15 Sectional Analysis Ver.A.pdf SL&C 1/24/2025 1:30:00 PM
SB 15
SB15 Supporting Documents-State by State Comparison.pdf SL&C 1/24/2025 1:30:00 PM
SB 15
SB15 Fiscal Note-DCCED-AMCO 01.23.25.pdf SL&C 1/24/2025 1:30:00 PM
SB 15