Committee advances bill allowing patriotic organizations to serve each other; licensees urge dram-shop changes

Representative Louise Stutes told the Senate Labor and Commerce Committee on May 15 that House Bill 363 would allow patriotic organizations such as the VFW and American Legion to serve each other and, when properly permitted, to serve nonmembers spirits, beer and wine at on-premise events.

Live testimony from Paul Thomas (chairman for Alaska State Char and a liquor license holder), John Blasco (CEO, Anchorage Distillery), Michael Ward (director, Cook Inlet Char and small-business owner) and Michael Cervantes (operating owner of banks out here, Fairbanks) expressed support for HB 363 and pressed the committee to consider amending dram-shop civil liability to bring Alaska in line with other states. Testifiers described sharply rising insurance costs for tasting rooms and bars — examples included a near-50% insurance rate increase cited by a distillery and reported spikes in premiums for small businesses.

Chair Beartman said he filed a separate committee bill (SB 284) to address dram-shop and liquor liability, but that crafting a policy change in under a week would be "perilous"; he said he will work with stakeholders on a refined approach in the interim. With no objections heard, the committee reported HB 363 from committee with individual recommendations and no attached fiscal note.

Representative Stutes said she is willing to work with the committee on any dram-shop proposals and noted that title 4 changes need thorough vetting.

The committee did not take a roll-call vote; the chair declared the bill reported after no objection was heard.