2025 Legislative Priorities
Letter from the President
SARAH OATES HARLOW | ALASKA CHARR PRESIDENT & CEO
2025 Legislative Priorities
WELCOME
Every year during our winter meeting , the Alaska CHARR Board of Directors sets our legislative priorities for the current session , and members join us at the Capitol for meetings with legislators to discuss them . This year , Alaska CHARR members and our Government Affairs team met with over half of our legislators , stressing our industry ’ s significant ongoing challenges to business operations including labor shortages , liquor liability insurance rate hikes , and significant increases in operating costs . On behalf of the 2,000 businesses and over 36,000 employees of Alaska ’ s hospitality industry , the following are our legislative priorities for 2025 .
Pass SB 15 – Allow Employees Aged 18-20 to Serve or Sell Alcohol Alaska is one of only three states ( along with Utah and Nevada ) that requires an alcohol server to be 21 or older . Employers struggle to promote or retain quality employees who are 18-20 because they are prohibited from taking or delivering alcohol orders or being promoted into supervisor roles . Alaska is not competitive in this space . Last year , HB 189 would have accomplished this but was passed after the constitutional deadline . Thank you to the many legislators who have sponsored and / or acted to swiftly move this legislation so that the industry and workers may benefit from it this tourism season .
Liquor Liability ( Dram Shop ) Reform Over the past few years , lack of access to affordable liquor liability insurance has become a crisis for hospitality businesses . As of 2024 , Alaska now has the worst rating for liquor liability in the country by the Insurance Services Office ( ISO ). The insurance landscape has changed – companies are no longer interested in writing policies in states with an ISO score higher than 6 . Alaska is rated an 8 .
Too many establishments are going without insurance , either because they cannot afford it or because they have been rejected for coverage by the few remaining insurance companies in Alaska . At least one agency specializing in liquor liability insurance has seen 45 % of their customers lose coverage or reject it due to the exorbitant cost . This crisis puts both the public and the industry at risk . Without reform , Alaska is in danger of losing its most iconic establishments because a single loss will result in their bankruptcy . What ’ s worse is that the affected victims will never be able to recover their losses , as businesses will no longer have insurance to pay claims .
In recent years , the other states with worse ( higher ) grades all worked with their legislatures to fix their dram shop laws . A draft legislative fix is currently being reviewed by the ISO to confirm that it will bring Alaska to a rating of 5 or lower . The other states have reduced their ratings by creating a wider standard for the furnishing of alcohol – the server must knowingly furnish to a drunken or underage person .
Alaska needs common sense liquor liability reform . If passed , legislation should help drive down the cost of liquor liability insurance for restaurant , bar , hotel / motel , and liquor store owners while still protecting the public interest , health , and safety . The net result is that businesses will regain access to coverage or purchase higher amounts of protection at a lower cost – a benefit to all .
Prohibit Interchange Fees on Taxes and Tips Hospitality businesses are the cornerstones of our communities and an engine of our economy . In 2024 , Alaska ’ s restaurant industry exceeded $ 4.02 billion in economic output and collected $ 254 million in taxes for all levels of government . However , this service for the government comes at a significant cost for the business owner , because credit card networks require businesses to pay interchange fees ( also known as “ swipe fees ”) on the taxes they collect . The same is true for tips left by credit card for servers and bartenders . In both cases , the operator collects the money , but 100 % of the amount is passed on to either the government or hospitality employees . But the swipe fees ( averaging 2-4 % per transaction ) must still be paid on the total check amount , so those fees are coming out of businesses ’ margins .
Merchants in Alaska are paying over $ 6.2 million in credit card swipe fees annually just to carry out their role in collecting taxes on behalf of localities . This figure is likely much higher for gratuities / tips given that a conservative estimate for the typical restaurant tip is 15 % across the nation . Alaska businesses should be protected from paying costly interchange fees when collecting money on behalf of the government or employees .
Improve Processing Times at AMCO The omnibus bill fondly referred to as the “ Title 04 Rewrite ” was signed into law in 2022 . Subsequently , the initial review and processing of license applications by the Alcohol & Marijuana Control Office ( AMCO ) have been delayed for months , or even over a year . This has resulted in significant business disruptions , permanent closures of businesses before they ’ re even able to open , and tens to hundreds of thousands of dollars in additional costs to small businesses . Alaska needs a solution to improve processing times of applications submitted to AMCO .
Additional Positions Taken by Alaska CHARR on Introduced Legislation
• HB 25 – Disposable Food Service Ware . Oppose : this would prohibit restaurant operators from using polystyrene to-go containers and require them to use biodegradable , compostable , or reusable containers
• HB 35 / SB 19 – Prisoners : Electronic Device Access , Use . Support : this is how incarcerated people receive vocational training , including ServSafe
• HB 61 / SB 68 – Employment of Minors . Support : this would allow children to work in family-owned businesses without the parents having to obtain a permit from the state . Many small businesses in our industry would benefit .
If any of these issues resonate with you , please contact our new Member Services Manager , Portland Sarantopoulos , who can help you prepare for providing testimony . Law makers need to hear directly from business owners and operators – from you – if we want to make a difference together .
At your service ,
ALASKA CHARR MAGAZINE | 3