WELCOME
Letter from AK CHARR Government Affairs Committee( GAC)
MICHAEL CERVANTES
As 2025 closes, Alaska’ s hospitality industry stands at a crossroads. Your Government Affairs Committee is fighting to secure reforms that will determine whether our businesses survive or collapse. Our 2026 priorities are clear:
• Liquor Liability( Dram Shop) Reform
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Our draft legislation, now being pre-filed, could lower Alaska’ s rating to 5 or below. That means lower premiums, restored coverage, and stronger protections for both businesses and the public. Reform will save jobs, preserve beloved institutions, and keep our communities safe.
• Ending Interchange“ Swipe” Fees on Taxes & Tips
We will continue monitoring pre-filings and add priorities as needed, but these two issues demand immediate action.
DRAM SHOP REFORM
Affordable liquor liability insurance has vanished. In 2024, the Insurance Services Office branded Alaska with the nation’ s worst rating— an 8, the red zone where insurers walk away. Nearly half of our businesses have already lost coverage.
This is not just a business crisis— it’ s a public safety disaster. One lawsuit could wipe out a local establishment, leaving victims uncompensated and workers unemployed. Without reform, Alaska risks losing the very places that knit our communities together.
Other states faced this same nightmare and acted. They reformed their dram shop laws, requiring proof that servers knowingly furnished alcohol to intoxicated or underage patrons. Ratings dropped. Insurers returned. Coverage became affordable again.
AS 2025 CLOSES, ALASKA’ S HOSPITALITY INDUSTRY STANDS AT A CROSSROADS. YOUR GOVERNMENT AFFAIRS COMMITTEE IS FIGHTING TO SECURE REFORMS.
SWIPE FEE REFORM
Hospitality is the backbone of Alaska’ s economy. In 2024, restaurants alone generated $ 4.02 billion in output and delivered $ 254 million in taxes. Yet instead of being rewarded, operators are punished.
Credit card networks impose 2 %– 4 %“ swipe fees” on every transaction— even on dollars businesses never keep. Taxes collected for government? Tips passed directly to employees? Fees still apply.
The result: Alaska merchants lose $ 6.2 million annually just to collect taxes, plus fees on gratuities meant entirely for workers. This is exploitation disguised as business as usual.
Reform will end swipe fees on money businesses don’ t keep. It will restore fairness, strengthen small businesses, preserve jobs, and protect the institutions that hold our communities together.
Thank you,
Michael Cervantes
SAVE THE DATE
2026 Legislative Summit February 10, 2026
ALASKA CHARR MAGAZINE | 2