JUNEAU — The president of the Alaska Brewers Guild held his head in his arms, the Senate president laughed and smiled, and the top of Alaska’s largest alcohol commerce group exchanged high-fives with lawmakers because the Alaska Home decisively ended 10 years of battle by passing a sweeping reform of the state’s alcohol legal guidelines.
“I believe we’re all prepared to maneuver on,” mentioned Rep. James Kaufman, R-Anchorage, who carried the invoice within the Home.
Senate Invoice 9, accepted 35-2 by the Home on Sunday night, comprehensively modifications the best way Alaska regulates alcohol-serving companies and punishes them if issues go flawed.
The purchasers of Alaska’s bars, breweries, distilleries and liquor shops will see few fast modifications, however these concerned within the alcohol business — together with the individuals who regulate it and public well being organizations who cope with its issues — say it is going to modernize the state’s business.
It additionally could conclusively finish a battle between established bars and newcomer breweries and distilleries.
Alaska regulates the variety of alcohol-related companies in line with the inhabitants of a city, metropolis or borough, and most cities are at or above their restrict relating to bars and liquor shops.
That’s created a high-cost marketplace for secondhand licenses, which might price a whole lot of 1000’s of {dollars}. Brewery and distillery taproom licenses are cheaply out there over-the-counter from the state, and bars have been apprehensive about competitors that might devalue their licenses.
“For some individuals, it’s their retirement,” mentioned Rep. Adam Wool, D-Fairbanks.
The dispute between these segments of the alcohol business killed prior legislative efforts at reform.
Earlier than the 2020 legislative session, business officers negotiated an settlement, however COVID-19 introduced the session to an early finish, and laws by no means handed.
The Senate handed a revised model of the invoice in 2021, and now the Home has adopted swimsuit.
“A number of the controversy … has been resolved,” mentioned Wool, a former bar proprietor whose opposition had been a big roadblock to passage.
To deal with the considerations of current licensees, new taproom licenses can be restricted to 1 for each 9,000 individuals in a city or metropolis. Different licenses can be found on a 1 per 3,000 particular person foundation, and the variety of breweries and distilleries has no restrict — they only can’t open a taproom.
Current taprooms can keep open, even when their metropolis is over the brand new restrict. Taprooms may even be capable of be open from 9 a.m. to 9 p.m. Present regulation requires them to shut at 8 p.m.
Taprooms are at the moment barred from holding live-music occasions however can be allowed to carry a restricted variety of occasions per 12 months.
Different restrictions stay in place: no TVs, no chairs or stools on the taproom bar, and restricted serving sizes.
In Alaska, taprooms have been used as a means for small breweries to generate income and create a marketplace for their beer earlier than they start distributing broadly.
Limiting the variety of new taprooms has been intensely controversial, and on Sunday, Rep. Jonathan Kreiss-Tomkins, D-Sitka, unsuccessfully tried to scale back the restrict.
“This considerably restricts competitors and restricts enterprise creation on this business,” he mentioned.
His modification failed 15-22, with opponents saying they didn’t wish to disrupt a gently balanced compromise amongst completely different elements of the alcohol business.
“Perhaps it’s time we cease screwing round with this … let’s go forward and move this factor,” mentioned Rep. Kevin McCabe, R-Large Lake.
Among the many invoice’s results:
• The state will start to license firms that ship alcohol by mail, taxing these companies for the primary time. Licensing will assist police struggle bootlegging to the state’s “dry” communities, proponents say.
• Beer kegs should be registered, permitting police to trace who purchased the alcohol for an underage consuming celebration.
• Native governments, together with Alaska Native tribes, can now purchase alcohol licenses.
• As a result of the Alaska Division of Regulation hardly ever prosecutes misdemeanors, many low-level alcohol crimes will turn out to be citations as a substitute of misdemeanors. Proponents mentioned companies working improperly had been escaping punishment due to the state’s low prosecution price.
• It’s simpler to serve beer and wine at a music pageant, out of doors live performance or nonprofit occasion by utilizing a restaurant’s alcohol license, even when the occasion takes place away from the restaurant.
• The invoice makes most sorts of licenses dearer, however licensees will get extra privileges. Liquor shops will be capable of maintain occasions at which they will serve samples. They will additionally ship alcohol to properties. A bar will be capable of serve alcohol at a number of counters beneath one license.
SB 9 should return to the Senate for a procedural vote, however Senate President Peter Micciche, who has pushed the invoice for the previous 10 years, mentioned he expects that can be only a formality earlier than the invoice goes to Gov. Mike Dunleavy, who is predicted to approve it.
Initially revealed by the Alaska Beacon.