Legislature(2007 - 2008)BARNES 124

02/05/2008 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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08:03:24 AM Start
08:03:49 AM HB327
09:24:36 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 327 ALCOHOL: LOCAL OPTION/LICENSING/MINORS TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 01/31/08>
HB 327-ALCOHOL: LOCAL OPTION/LICENSING/MINORS                                                                                 
                                                                                                                                
8:03:49 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the only order  of business would                                                               
be HOUSE  BILL NO.  327, "An Act  relating to  shipping, sending,                                                               
transporting,  or bringing  alcohol to  a local  option area  and                                                               
providing alcohol to  others in the local  option area, including                                                               
penalties  for violations;  relating to  furnishing alcohol  to a                                                               
minor  and  to civil  penalties  for  licensees whose  agents  or                                                               
employees furnish  alcohol to a  minor; relating  to manslaughter                                                               
as a  direct result of  ingestion of alcoholic  beverages brought                                                               
in violation of  a local option prohibition;  relating to reports                                                               
of  the court  concerning certain  alcohol violations  by minors;                                                               
making  conforming amendments;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
8:04:21 AM                                                                                                                    
                                                                                                                                
TALIS  COLBERG, Attorney  General,  Department of  Law, began  by                                                               
relating  that HB  327  is  the product  of  many  groups.   This                                                               
legislation,  he explained,  prohibits  a  licensee from  sending                                                               
alcohol in plastic bottles to  a local option community.  Plastic                                                               
bottles  conceal  the  noise  of  glass  bottles,  and  therefore                                                               
plastic  bottles  make  it  easier  to  smuggle  alcohol  into  a                                                               
community that has decided not to  have alcohol.  He informed the                                                               
committee that  HB 327 is  supported by recommendations  from the                                                               
hearings from  the Rural  Justice and Law  Commission as  well as                                                               
local  law enforcement  groups.   This  legislation also  imposes                                                               
civil penalties  on licensees whose  employees are  convicted for                                                               
furnishing alcohol to minors.   The legislation has an escalating                                                               
scale  of penalties  in  which  the licensee  would  pay a  civil                                                               
penalty  of $500  for the  first conviction;  $1,000 penalty  and                                                               
suspension of license for 7 days  for the second offense within 5                                                               
years; and a  $2,000 civil fine and suspension of  license for 30                                                               
days for  a third conviction within  5 years.  Under  HB 327, the                                                               
third conviction  for bootlegging small amounts  within a 10-year                                                               
period would  result in a  class C  felony, which is  an increase                                                               
from  current law  that provides  for a  class A  misdemeanor for                                                               
bootlegging small  amounts and a  class C felony  for bootlegging                                                               
larger amounts.   The proposed legislation  also adopts mandatory                                                               
minimum penalties for bootlegging that  are the same as mandatory                                                               
minimum  penalties   for  drunk   driving,  save   the  look-back                                                               
provision  for bootlegging  is for  10 years.   Furthermore,  the                                                               
legislation considers a person  convicted of bootlegging eligible                                                               
for  therapeutic   court.    The   legislation  also   allows  an                                                               
individual  who  causes   the  death  of  another   due  to  that                                                               
individual  bootlegging alcohol  in  a local  option  area to  be                                                               
prosecuted for manslaughter.  This  is similar to legislation the                                                               
legislature  adopted  for  the   sale  of  methamphetamines  that                                                               
directly caused another person's death.                                                                                         
                                                                                                                                
8:07:29 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  related her belief that  those who import/export                                                               
alcohol  in glass  bottles  would  wrap them  in  order to  avoid                                                               
breakage.                                                                                                                       
                                                                                                                                
ATTORNEY GENERAL COLBERG  said that no matter how  the alcohol is                                                               
transported,  there is  likely to  be  an effort  to conceal  and                                                               
protect it.   However,  he opined that  it's easier  to transport                                                               
alcohol in plastic than glass.                                                                                                  
                                                                                                                                
8:08:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   NEUMAN  directed   attention   to  the   sponsor                                                               
statement,  which specifies  that  the  legislation would  create                                                               
further incentive  to train licensees.   However, he  related his                                                               
understanding  that   licensees  already  go  through   a  fairly                                                               
extensive training program.                                                                                                     
                                                                                                                                
ATTORNEY GENERAL COLBERG said that  the premise of that provision                                                               
is based  on the experience with  tobacco.  He mentioned  a chart                                                               
that illustrates  that when there's a  serious enforcement effort                                                               
to punish those who haven't done  a good job of training, there's                                                               
a significant  decrease in the number  of offenses.  In  the case                                                               
of tobacco,  the penalty and the  ability to enforce it  seems to                                                               
have a beneficial impact that can be statistically illustrated.                                                                 
                                                                                                                                
8:09:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN opined that  liquor store employees already                                                               
receive  fairly  extensive  training  to  judge  the  age  of  an                                                               
individual and to understand the laws concerning alcohol.                                                                       
                                                                                                                                
ATTORNEY GENERAL  COLBERG noted  his agreement.   He  related his                                                               
observation  that   more  establishments  are   carding  everyone                                                               
served.  The aforementioned, he opined,  is one of the results of                                                               
the law and the knowledge  that someone faces the consequences of                                                               
not  following  the  law.   Furthermore,  it  seems  increasingly                                                               
apparent that  the penalty  attached to  the training  results in                                                               
employers ensuring [that employees receive training].                                                                           
                                                                                                                                
8:11:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN pointed  out that  upon a  second offense,                                                               
there  are civil  fines and  the license  is suspended  for seven                                                               
days  and  then for  thirty  days  on  the  third offense.    The                                                               
aforementioned is  for offenses  during a  five-year period.   He                                                               
opined that  even with  training, there will  be mistakes.   This                                                               
legislation places  the onus  on the  employer, who  provided the                                                               
training required by state law.   Representative Neuman expressed                                                               
concern with infringing on the owner's business in this manner.                                                                 
                                                                                                                                
ATTORNEY  GENERAL COLBERG  said  that  Representative Neuman  has                                                               
valid  concerns and  this is  a judgment  call for  the committee                                                               
with regard to  how to hold an owner accountable  for the actions                                                               
of  his/her  employees.    Pointing  again  to  documentation  on                                                               
tobacco,  Attorney  General  Colberg acknowledged  that  although                                                               
[training]    never   completely    eliminates   offenses,    the                                                               
consequences to offenses dramatically reduces the problem.                                                                      
                                                                                                                                
8:15:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  if Attorney  General Colberg  would                                                               
consider  a   different  approach  because  it   seems  that  the                                                               
penalties in  HB 327 are  a bit severe  for business owners.   He                                                               
said he would  be willing to speak with  Attorney General Colberg                                                               
later regarding a different approach.                                                                                           
                                                                                                                                
8:15:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH  related  that  the  first  offense  doesn't                                                               
appear to be  a meaningful civil fine, and  therefore she offered                                                               
to  work with  the administration  to develop  a more  meaningful                                                               
penalty  for a  first-time offense.   She  then related  that the                                                               
future  success of  a business  is reduced  when it's  closed for                                                               
five  days and  thus  a  second offense  could  put  some out  of                                                               
business.  Although Co-Chair Fairclough  said she appreciated the                                                               
comparison  of  alcohol to  tobacco,  she  pointed out  that  the                                                               
difference  is that  in the  case  of the  tobacco endorsement  a                                                               
particular product is removed, the  availability of which impacts                                                               
only  a  particular revenue  stream  in  an establishment.    She                                                               
questioned  whether a  meaningful  civil fine  could be  utilized                                                               
rather  than   business  closures.    Co-Chair   Fairclough  then                                                               
directed attention  to the use  of the language  "municipality or                                                           
established village"  on page 2, line  9, and asked if  it covers                                                           
second class cities and the various types of boroughs.                                                                          
                                                                                                                                
8:18:28 AM                                                                                                                    
                                                                                                                                
ANNE CARPENETI,  Assistant Attorney General,   Department of Law,                                                               
explained   that  the   language  "municipality   or  established                                                           
village"  is used  in the  local option  statutes, which  is used                                                           
when describing  local option  communities.   With regard  to the                                                               
same  language  being used  on  page  5,  line 5,  Ms.  Carpeneti                                                               
confirmed  that it's  current law  and is  used to  refer to  the                                                               
entities that adopt local options.                                                                                              
                                                                                                                                
8:19:19 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH then  directed attention to page  4, line 24,                                                               
through page  5, line  6.   She recalled that  one of  the issues                                                               
with  the tobacco  laws has  been  in regard  to the  need for  a                                                               
meaningful hearing  prior to applying penalties  and allowing for                                                               
response.   The  [legislation] appears  to limit  the information                                                               
that  can  be  brought  forward.    She  questioned  whether  the                                                               
legislation provides  an appropriate  manner in which  a licensee                                                               
can respond to the actions of an agent or the court.                                                                            
                                                                                                                                
MS.  CARPENETI informed  the committee  that a  similar procedure                                                               
was  recently upheld  by  the Alaska  Supreme  Court for  tobacco                                                               
enforcement.   The  issue, she  noted, was  a due  process claim.                                                               
The court found that it was  an adequate procedure for a licensee                                                               
to litigate the closure [of the business].                                                                                      
                                                                                                                                
CO-CHAIR  FAIRCLOUGH  recalled   legislation  that  attempted  to                                                               
modify  the appeals  process  in order  to  provide a  meaningful                                                               
dialogue  between the  courts  and the  licensee.   Although  the                                                               
courts  upheld the  case, she  said she  wasn't certain  that the                                                               
licensees are pursuing the matter further.                                                                                      
                                                                                                                                
MS. CARPENETI offered to obtain information on the matter.                                                                      
                                                                                                                                
8:21:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA mentioned  the  costs of  alcohol and  the                                                               
damage it  has done.   She  characterized mind-altering  drugs as                                                               
poison,  and pointed  out that  any other  mind-altering drug  is                                                               
heavily  regulated.   She acknowledged  that alcohol  is part  of                                                               
Alaska and  the costs  of alcohol  tend to be  ignored as  is the                                                               
related family  crisis.  Representative  Cissna then  inquired as                                                               
to how  get this [legislation]  passed.  She further  inquired as                                                               
to  whether  the administration  is  really  ready to  deal  with                                                               
[alcohol].  The only way, she opined,  to do so is to lay out the                                                               
costs of the very protected alcohol industry.                                                                                   
                                                                                                                                
ATTORNEY  GENERAL COLBERG  acknowledged that  in Alaska  there is                                                               
clearly  a correlation  between crime  and alcohol  and substance                                                               
abuse.   The  local option  attempts  to address  the problem  in                                                               
locations where  it's significantly worse.   This legislation, he                                                               
noted, also attempts  to address minor use of  alcohol.  Attorney                                                               
General  Colberg  noted  that  due  to his  position  he  has  an                                                               
increased opportunity  to visit  rural communities  where alcohol                                                               
is  a  very  significant  problem,  particularly  in  areas  with                                                               
minimal  law  enforcement.   As  pointed  out  by  Representative                                                               
Salmon  last  year, laws  aren't  meaningful  if law  enforcement                                                               
isn't present.   He  noted that  the administration,  through the                                                               
Village Public  Safety Officer  (VPSO) Task  Force, is  trying to                                                               
address [an  increased] presence of  law enforcement in  order to                                                               
make  laws  more meaningful.    He  then  expressed the  need  to                                                               
interdict  the   problem  before  it   gets  to  minors.     This                                                               
legislation  is  a fairly  broad-based  effort  to address  these                                                               
problems  because clearly  the current  system isn't  working, as                                                               
evidenced  by the  grim statistics  associated  with alcohol  and                                                               
drug abuse in Alaska.                                                                                                           
                                                                                                                                
8:28:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   NEUMAN  turned   attention   to  the   mandatory                                                               
manslaughter  provisions in  HB 327.    He posed  a situation  in                                                               
which  a  minor steals  alcohol  from  his father's  cabinet  and                                                               
drives into  a damp community and  his friend drinks it  and dies                                                               
from alcohol  poisoning.  Under  the provisions of HB  327, would                                                               
the minor who  stole the alcohol from his father  be convicted of                                                               
mandatory manslaughter provisions, he asked.                                                                                    
                                                                                                                                
ATTORNEY GENERAL  COLBERG replied no, the  provision merely opens                                                               
the penalty up to manslaughter.   He explained that the provision                                                               
is trying to  address one who is classified in  the category of a                                                               
bootlegger.  Bootlegging is fairly  prevalent in rural Alaska and                                                               
the  downside   for  bootlegging   isn't  very   significant  for                                                               
bootleggers.   Therefore,  HB 327  attempts  to hold  bootleggers                                                               
responsible   for   the   consequences  of   performing   illegal                                                               
activities in a community with a local option.                                                                                  
                                                                                                                                
8:30:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN,  referring to  Section  8(1)  on page  7,                                                               
related  his understanding  that  the language  of  HB 327  would                                                               
result  in the  [minor  who  stole the  alcohol  in his  previous                                                               
example]  being charged  with manslaughter  [if  his friend  died                                                               
from alcohol consumption].                                                                                                      
                                                                                                                                
MS.   CARPENETI  pointed   out   that  the   language  to   which                                                               
Representative Neuman referred is  current law.  This legislation                                                               
adds paragraph (4)  on page 7, lines 13-16, which  is specific to                                                               
manslaughter in terms of illegal  bootlegging of alcohol and that                                                               
alcohol causing the death of another directly.                                                                                  
                                                                                                                                
ATTORNEY GENERAL  COLBERG added  that absent  any change  in law,                                                               
what  Representative Neuman  described  could  be prosecuted  [as                                                               
manslaughter]  because  a reckless  activity  that  leads to  the                                                               
death  of  another could  still  arguably  be manslaughter.    In                                                               
further  response  to  Representative  Neuman,  Attorney  General                                                               
Colberg  confirmed  that  HB  327   expands  the  law  such  that                                                               
[punishment  of manslaughter]  includes  bootlegging  in a  local                                                               
option community.                                                                                                               
                                                                                                                                
8:33:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN,  referring  to  the  sectional  analysis,                                                               
inquired as to how one can  ensure that employees are trained and                                                               
able to avoid furnishing alcohol to minors.                                                                                     
                                                                                                                                
ATTORNEY GENERAL  COLBERG replied  that it would  require someone                                                               
to  specifically monitor  this  particular activity.   He  opined                                                               
that if  the consequences  to one's  livelihood and  business are                                                               
more dire,  one may be  more willing  to be directly  involved or                                                               
assign someone to monitor activities.                                                                                           
                                                                                                                                
MS. CARPENETI  noted that she  represents the  Alcoholic Beverage                                                               
Control Board  ("ABC Board") and  thus is familiar with  the laws                                                               
and requirements  for training.   Current  law doesn't  require a                                                               
person who serves alcohol to have  training for the first 30 days                                                               
of employment,  which is  an example  of a  situation in  which a                                                               
licensee might  be more  cautious and  ensure that  employees are                                                               
trained prior to  serving alcohol.  Ms.  Carpeneti clarified that                                                               
an employee serving alcohol has  to obtain training after 3o days                                                               
of employment.                                                                                                                  
                                                                                                                                
8:35:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SALMON  asked  if  HB 327  would  result  in  the                                                               
prosecution of more bootleggers.                                                                                                
                                                                                                                                
ATTORNEY GENERAL COLBERG answered that's the hope.                                                                              
                                                                                                                                
8:35:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON highlighted the  lack of law enforcement in                                                               
rural areas.  He  inquired as to how the state  can enforce a law                                                               
such as  that proposed  in HB 327.   He noted  that he  has known                                                               
bootleggers who have been bootlegging for 40 years.                                                                             
                                                                                                                                
ATTORNEY  GENERAL  COLBERG  recalled that  Representative  Salmon                                                               
raised the same  valid point last year during  discussions of the                                                               
Rural  Justice  and  Law Commission  recommendations  related  to                                                               
bootlegging.  He opined that  it's likely that the Village Public                                                               
Safety  Officer Task  Force will  make recommendations  regarding                                                               
increasing  manpower through  the regional  corporations and  the                                                               
state's Department of Public Safety.   These recommendations will                                                               
likely  suggest  more of  a  law  enforcement presence  in  rural                                                               
Alaska in  order to  provide more  meaningful enforcement  of the                                                               
laws.                                                                                                                           
                                                                                                                                
8:37:25 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH  asked if there was  any discussion regarding                                                               
an  endorsement  for a  screening  process  such that  businesses                                                               
would be eligible to distribute  to distribution centers or local                                                               
option communities.   She pointed out that she's  referring to an                                                               
endorsement that's similar to the tobacco stamp.                                                                                
                                                                                                                                
MS. CARPENETI specified that she  didn't participate in the minor                                                               
drinking group.                                                                                                                 
                                                                                                                                
CO-CHAIR FAIRCLOUGH  surmised that [the legislation]  attempts to                                                               
strengthen the  law, but  it seems that  a scattered  approach is                                                               
being  taken  such  that  businesses  will  have  to  train  many                                                               
employees.   She suggested a  single-shot approach in  which only                                                               
particular   vendors  are   allowed  to   sale  to   distribution                                                               
[centers],  which  would allow  for  more  specific training  for                                                               
those communities  with a local option.   She asked if  that runs                                                               
awry with other laws.                                                                                                           
                                                                                                                                
MS.  CARPENETI  deferred  to   Mr.  Griffin,  Alcoholic  Beverage                                                               
Control Board ("ABC Board").   She noted that not many businesses                                                               
ship alcohol in  response to a written order from  a local option                                                               
community.    She  reminded  the committee  that  last  year  the                                                               
legislature  passed  a  law  that  required  such  businesses  to                                                               
participate in a  database in order to provide  information as to                                                               
which business  sent how much  and to  whom in what  local option                                                               
area.                                                                                                                           
                                                                                                                                
8:39:46 AM                                                                                                                    
                                                                                                                                
DOUGLAS  GRIFFIN,  Director,  Alcoholic  Beverage  Control  Board                                                               
("ABC  Board"),   Department  of  Public  Safety,   reminded  the                                                               
committee  that  due to  the  enactment  of  SB 128,  a  database                                                               
related to the sale of  alcohol is being established.  Currently,                                                               
19  package  stores  are  registered  with the  ABC  Board.    He                                                               
remarked   that  an   endorsement,  as   suggested  by   Co-Chair                                                               
Fairclough,  may be  appropriate  because it  would provide  more                                                               
formality to the process.  Package  stores that wish to engage in                                                               
the written  order process are  required to notify the  ABC Board                                                               
so that  the board  can keep the  package stores  up-to-date with                                                               
regard to changes in the local  option and to the conviction list                                                               
for bootlegging.  He opined  that the aforementioned relationship                                                               
will become stronger as the  database comes online.  Furthermore,                                                               
a new position was created with  the enactment of SB 128 and thus                                                               
more  training will  be provided.   One  of the  benefits of  the                                                               
implementation of  the database  is that  it will  strengthen the                                                               
board's relationship with package stores  that do sell by written                                                               
order, he  suggested.  Since some  of the package stores  may not                                                               
be in total compliance with all  aspects of the program, the hope                                                               
is to tighten that compliance with this written order process.                                                                  
                                                                                                                                
8:43:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked if less package  stores ship alcohol                                                               
because of the database requirement included in SB 128.                                                                         
                                                                                                                                
MR. GRIFFIN related his sense that  some of the 19 package stores                                                               
currently on the  list may decide not to ship  alcohol by written                                                               
order   due  to   the  hassle   of   the  database   requirement.                                                               
Furthermore,  he  suggested  that  probably not  all  19  package                                                               
stores  actively ship  to rural  Alaska.   In fact,  the bulk  of                                                               
written orders  are probably  performed by  four to  five package                                                               
stores in the state.                                                                                                            
                                                                                                                                
REPRESENTATIVE NEUMAN related his  understanding that any package                                                               
store  in Alaska  that wants  to ship  alcohol within  the state,                                                               
must have a computer to be connected to the state's database.                                                                   
                                                                                                                                
MR. GRIFFIN  specified that the  database will go into  effect by                                                               
July 1, 2008.   He noted that  the law required the  ABC Board to                                                               
have consultations with the package  stores, which has been done.                                                               
Presently,  package stores  don't have  to have  a computer,  and                                                               
thus the  paper records are  to be kept  for a year.   Therefore,                                                               
the hope  is that the  database, with its  list of those  to whom                                                               
the package  store can't  sell alcohol,  will make  things easier                                                               
for  package stores.   He  explained  that the  list will  likely                                                               
utilize a  unique identifier and thus  help reduce identification                                                               
problems.  Mr. Griffin related that  the goal of the database was                                                               
to prevent  bootleggers who were  gaming the system  and ordering                                                               
more than allowable from multiple package stores.                                                                               
                                                                                                                                
8:48:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN surmised  then that  HB 327  would require                                                               
use of a computer by package stores.                                                                                            
                                                                                                                                
MR.  GRIFFIN specified  that the  legislation, SB  128, requiring                                                               
the use  of computers  for the  database passed  last year.   The                                                               
legislation, HB  327, before the committee  today doesn't address                                                               
[the use of computers].                                                                                                         
                                                                                                                                
8:48:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON  inquired as to how  one determines whether                                                               
the individual ordering the alcohol is of a legal age to do so.                                                                 
                                                                                                                                
MR.  GRIFFIN  explained that  when  an  account  is setup  for  a                                                               
written order  some sort of government-issued  identification has                                                               
to  be provided  to  the package  store.   The  written order  is                                                               
literally  a  handwritten  letter   so  that  signatures  can  be                                                               
compared to the signature that originally setup the account.                                                                    
                                                                                                                                
8:50:55 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX, referring to Section  8 paragraph (4) on page 7,                                                               
recalled  that Attorney  General Colberg  said that  the language                                                               
didn't refer to a mandatory manslaughter charge.                                                                                
                                                                                                                                
MS.  CARPENETI  explained  that whenever  a  crime  is  allegedly                                                               
committed the police investigate and  send the information to the                                                               
district attorney,  who evaluates  the facts  based upon  the law                                                               
and what  the district attorney  believes can be proven  beyond a                                                               
reasonable doubt.  Ms. Carpeneti said:                                                                                          
                                                                                                                                
     Whether you  would be choosing manslaughter  if there's                                                                    
     the death  of a  person, you  would evaluate  the facts                                                                    
     based on all  of our homicide laws and  fit whether the                                                                    
     facts  could  be proven  to  that  particular level  of                                                                    
     crime.  But there's no  mandate that says that a person                                                                    
     under  these  particular   circumstances  ...  must  be                                                                    
     charged  with manslaughter  under  any  of the  various                                                                    
     theories  of manslaughter  in our  current law  or this                                                                    
     proposed additional one.                                                                                                   
                                                                                                                                
8:52:30 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX posed  a situation in which  an underage teenager                                                               
steals  alcohol from  her father  and  gives it  to her  underage                                                               
boyfriend, who dies from alcohol  poisoning.  She inquired as why                                                               
manslaughter would be chosen in one instance but not another.                                                                   
                                                                                                                                
MS. CARPENETI  pointed out that  in the  aforementioned situation                                                               
the  underage  teenager who  took  the  alcohol from  her  father                                                               
wouldn't  be charged  at  all  since she's  a  juvenile, but  the                                                               
Juvenile  Justice   System  would  review  whether   to  file  an                                                               
accusation.   The  same process  would be  followed in  the adult                                                               
system.   She  reminded the  committee that  prosecutors exercise                                                               
discretion with regard  to what he/she considers  the just charge                                                               
in  relation to  how the  facts  fit into  the law.   In  further                                                               
response  to Co-Chair  LeDoux, Ms.  Carpeneti  specified that  in                                                               
Alaska an individual remains a juvenile until the age of 18.                                                                    
                                                                                                                                
8:55:32 AM                                                                                                                    
                                                                                                                                
DIANE CASTO,  Section Manager, Prevention and  Early Intervention                                                               
Section, Division of Behavioral  Health, Department of Health and                                                               
Social Services (DHSS),  began by relating that  DHSS believes HB
327 is very important and supports  HB 327.  Ms. Casto noted that                                                               
she also manages  the tobacco control program,  and therefore can                                                               
respond to some of the  earlier questions regarding tobacco laws.                                                               
The department, she  related, believes alcohol is  a huge problem                                                               
in Alaska, particularly in Alaska's  youth.  As a national issue,                                                               
the problem of  underage drinking has gained  much attention over                                                               
the last  few years.  In  2002 the National Research  Council and                                                               
Institute  of Medicine  were tasked  with  developing a  national                                                               
strategy  to  reduce  underage   drinking.    The  aforementioned                                                               
resulted in  the production of  the "Reducing  Underage Drinking:                                                               
A   Collective  Responsibility"   in  2004,   which  became   the                                                               
foundation for  much of  the work  that states  are doing  now in                                                               
regard  to developing  state plans  to reduce  underage drinking.                                                               
Also  in  2004  Congress   established  the  federal  Interagency                                                               
Coordinating Committee  to reduce  and prevent  underage drinking                                                               
and in  2005 Alaska followed  suit with the establishment  of the                                                               
Alaska Interagency  Coordinating Committee  on the  Prevention of                                                               
Underage   Drinking.     The   Alaska  Interagency   Coordinating                                                               
Committee  on the  Prevention of  Underage Drinking  prepared the                                                               
"Plan to Reduce & Prevent  Underage Drinking", which is currently                                                               
available  for public  comment.   As  part of  Alaska's plan,  in                                                               
March [DHSS] will  host a series of 26 town  hall meetings across                                                               
the  state in  order  to  obtain community  insight.   Ms.  Casto                                                               
highlighted  that throughout  all these  reports and  committees,                                                               
the  consistent  [finding] is  that  one  of the  most  effective                                                               
strategies to  prevent and reduce  underage drinking is  to limit                                                               
and reduce  access to alcohol for  youth as well as  changing the                                                               
attitude related to underage alcohol  use.  Alcohol is the number                                                               
one drug of choice for youth  and is the most damaging and deadly                                                               
of  drugs;  it  causes  more  accidents  and  death.    She  then                                                               
highlighted  the high  rates of  suicide among  youth in  Alaska.                                                               
The  suicide rates  in Alaska  for ages  15-24 are  significantly                                                               
higher  than the  rate of  suicide among  the entire  population.                                                               
Furthermore,  in  the  nation  youth have  the  lowest  rates  of                                                               
suicide while they  have the highest rates in  Alaska.  Moreover,                                                               
almost 40 percent of all  suicides are associated with alcohol in                                                               
Alaska, she related.                                                                                                            
                                                                                                                                
9:00:25 AM                                                                                                                    
                                                                                                                                
MS.  CASTO reminded  the committee  that every  two years  Alaska                                                               
participates  in the  Centers for  Disease  Control's Youth  Risk                                                               
Behavior Survey  (YRBS).  In the  2007 YRBS, there are  small but                                                               
significant reductions  in the categories related  to alcohol use                                                               
among  youth. However,  still  73.6 percent  of  the students  in                                                               
grades 9-12  reported having at least  one drink of alcohol  on 1                                                               
or more  days in  the past  30 days.   Ms.  Casto then  related a                                                               
study  regarding the  rates of  lifetime  dependence on  alcohol,                                                               
which  has found  lifetime dependence  on  alcohol declines  from                                                               
more than  40 percent when drinking  begins at age 14  or younger                                                               
to 10 percent  if drinking begins after age 20.   In Alaska, 20.4                                                               
percent of students reported having  their first drink of alcohol                                                               
prior to  age 13.   Therefore, approximately 40 percent  of those                                                               
youth will  become dependent on  alcohol in their lifetime.   She                                                               
related  that  9.7  percent  of  high  school  students  reported                                                               
drinking and driving at least once  in the past 30 days, which is                                                               
a small decrease from 11.3 percent a couple of years ago.                                                                       
                                                                                                                                
9:02:43 AM                                                                                                                    
                                                                                                                                
MS. CASTO  turned to the  portions of  HB 327 that  address minor                                                               
consuming, which are  the provisions to:   increase penalties for                                                               
those who sell  alcohol to minors, develop a database  that has a                                                               
more consistent tracking  system with DMV, and  access to alcohol                                                               
in damp/dry communities.  She  noted that the department supports                                                               
those provisions.                                                                                                               
                                                                                                                                
9:04:07 AM                                                                                                                    
                                                                                                                                
MS. CASTO  then addressed the  issues related to  the comparisons                                                               
of alcohol  and tobacco penalties.   She recalled mention  of the                                                               
changes in tobacco laws due to  the Holiday case, which the state                                                             
lost.   The Holiday  case related  to due  process and  said that                                                             
existing laws  didn't afford the owner/retailer  due process when                                                               
his/her  clerk  was charged  with  selling  tobacco to  a  minor.                                                               
Therefore,  SB 84  included provisions  to ensure  that penalties                                                               
with  due  process was  fair  but  firm.    Alaska has  the  most                                                               
stringent laws related  to tobacco.  In fact, Alaska  is the only                                                               
state with a mandatory fine for  the first offense.  In 2002 when                                                               
the laws  increased the penalties  for those who sell  tobacco to                                                               
minors, the  rates dropped significantly.   She  then highlighted                                                               
that  currently there  are three  investigators  for tobacco  but                                                               
only one  for alcohol.   Often tobacco enforcement  officers work                                                               
with  the alcohol  enforcement officer  and they  have discovered                                                               
that the  same youth  who have been  denied tobacco  products can                                                               
purchase alcohol.   She opined that the aforementioned  is due to                                                               
the  leniency of  the  laws related  to the  sale  of alcohol  to                                                               
minors.    Ms.  Casto  then recalled  the  court  case  involving                                                               
Tesoro, referred to  by Ms. Carpeneti, in which  the court upheld                                                               
that  due  process  was  provided.   Therefore,  there  are  some                                                               
differences  of  opinion  on  the  matter.    One  of  the  major                                                               
differences  between tobacco  and alcohol  penalties is  that for                                                               
tobacco  there  is  a  ceiling  and  floor  for  the  fines,  and                                                               
therefore there  is always  some penalty.   However,  for alcohol                                                               
under  current law  only  the clerk  is given  a  fine and  faces                                                               
potential jail time.   In discussions with those  who enforce the                                                               
law, Ms. Casto related her  understanding that no fine is imposed                                                               
but rather  a probationary  action occurs  and no  penalty exists                                                               
for the first offense [of selling to a minor].                                                                                  
                                                                                                                                
9:07:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA  opined   that  if   there  were   enough                                                               
enforcement officers for alcohol, then  it's more likely that the                                                               
necessary  enforcement  would  occur.   She  likened  it  to  the                                                               
situation with the lack of VPSOs in rural Alaska.                                                                               
                                                                                                                                
MS. CASTO noted her agreement.   She related her belief that part                                                               
of  the success  with tobacco  is due  to the  ability to  keep a                                                               
consistent group  of enforcement officers.   She then  noted that                                                               
tobacco is  different in that  federal tobacco law  mandates that                                                               
all states  receiving a federal substance  abuse, prevention, and                                                               
treatment block grant have to maintain  a 20 percent or less sell                                                               
rate  or  a  portion  of  those  block  grant  dollars  is  lost.                                                               
Therefore, there's  further incentive to maintain  a healthy team                                                               
for tobacco.                                                                                                                    
                                                                                                                                
9:10:05 AM                                                                                                                    
                                                                                                                                
MS.  CASTO  concluded  her  testimony  by  emphasizing  that  the                                                               
critical difference  [between alcohol  and tobacco] is  that [for                                                               
alcohol] there's  not a concrete  penalty for a first  offense of                                                               
selling  to a  minor.   Furthermore,  currently  in alcohol  only                                                               
clerks are  cited for  infractions.   With tobacco,  the business                                                               
owners [face  penalty for  the actions  of their  employees], and                                                               
thus  they have  a  stronger commitment  to  set the  appropriate                                                               
example and not sell tobacco to minors.                                                                                         
                                                                                                                                
9:12:05 AM                                                                                                                    
                                                                                                                                
SUSAN MCLEAN,  Chief Assistant  Attorney General,  Legal Services                                                               
Section,  Criminal  Division,  Department of  Law,  informed  the                                                               
committee  that she  has  been  a prosecutor  in  Alaska and  has                                                               
prosecuted cases throughout the state.   She said today she would                                                               
relate  her  observations  with  regard  to  how  very  different                                                               
Western  Alaska   is  in  terms   of  how  alcohol   impacts  the                                                               
communities in  the region.   There  is no  place in  Alaska with                                                               
more  violent crime  than Western  Alaska, she  related.   Having                                                               
been the district attorney in  Bethel, Ms. McLean opined that the                                                               
communities  in  Western Alaska  have  every  reason to  be  dry.                                                               
Sadly,   most  of  the  cases with  more  tragic results  involve                                                               
crimes  committed by  young people  against family  members while                                                               
other family members witness.                                                                                                   
                                                                                                                                
MS. MCLEAN noted that she returned  to work for DOL two years ago                                                               
to start a rural prosecution program,  the purpose of which is to                                                               
provide  assistance  to primarily  Western  Alaska  and areas  in                                                               
Alaska in which  the attorneys are so overwhelmed  that they need                                                               
outside help.   In that  capacity, Ms. McLean reviewed  the cases                                                               
in Bethel that she was assigned  and recalled that most often the                                                               
person who committed  the crime doesn't remember  what he/she has                                                               
done.   Therefore,  she opined  that clearly  the bootlegger  who                                                               
brings  alcohol into  a  damp/dry community  for  the third  time                                                               
should  face  the deterrent  of  a  felony  crime.   The  typical                                                               
situation  is  that a  bootlegger  purchases  a small  bottle  of                                                               
alcohol for under  $10 and sells that bottle  for a significantly                                                               
higher price, $150-$200, which  illustrates the tremendous profit                                                               
motive in bootlegging.                                                                                                          
                                                                                                                                
9:17:24 AM                                                                                                                    
                                                                                                                                
MS. MCLEAN then  turned to the earlier  hypothetical situation in                                                               
which a teenager takes alcohol from  a parent and goes into a dry                                                               
area  and provides  it to  someone who  subsequently dies.   With                                                               
regard  to that  situation, Ms.  McLean said  she didn't  believe                                                               
that  teenager  could  be  charged  with  mandatory  manslaughter                                                               
because  the person  who  provided the  alcohol  would've had  to                                                               
violate  AS 04.11.010,  which relates  to the  sale or  barter of                                                               
alcohol.  A  person is not presumed to have  provided alcohol for                                                               
sale  or  barter unless  what  was  provided  is more  than  10.5                                                               
liters.  Therefore, the aforementioned  example lacks the element                                                               
of sale or barter and thus  she didn't believe the teenager could                                                               
be charged with a crime.                                                                                                        
                                                                                                                                
9:18:59 AM                                                                                                                    
                                                                                                                                
WALTER   EVANS,  Chief   Probation   Officer,  Northern   Region,                                                               
Probation Services,  Division of Juvenile Justice,  Department of                                                               
Health and Social Services, provided the following testimony:                                                                   
                                                                                                                                
     I'd  like to  thank you  for  taking up  this bill  and                                                                    
     giving  serious  attention  to the  issue  of  alcohol,                                                                    
     particularly  in our  rural areas.   By  now, I'm  sure                                                                    
     you're all familiar with the  impact that alcohol abuse                                                                    
     is  having  on  rural  Alaska and  Alaska's  kids.    I                                                                    
     witnessed this  impact myself during the  seven years I                                                                    
     spent as  a juvenile  probation officer  serving Bethel                                                                    
     and  the many  villages on  the Yukon  Kuskokwim Delta.                                                                    
     During  that  time  I  witnessed  first  hand  the  way                                                                    
     alcohol makes  young people, who are  already impulsive                                                                    
     ...,  even  more  impulsive   and  indifferent  to  the                                                                    
     effects of their behavior on  others.  When they drink,                                                                    
     their ability  to control their own  actions is reduced                                                                    
     and their  understanding and the consequences  of their                                                                    
     actions  becomes blurred.    Our  rural staff  estimate                                                                    
     that between 50 and 80 percent  of all crimes we see by                                                                    
     juveniles involved  alcohol in  some way,  whether they                                                                    
     are  intoxicated when  they commit  the  crime or  they                                                                    
     commit  the  crime  to  get alcohol  or  money  to  buy                                                                    
     alcohol.   The  cause and  effect is  clear:   the more                                                                    
     readily alcohol is available to  young people, the more                                                                    
     likely  they are  to commit  crimes.   The more  we can                                                                    
     limit the access  to alcohol by youth, the  more we can                                                                    
     hopefully limit the crimes  they commit because they're                                                                    
     intoxicated  or addicted.    This bill  does  a lot  of                                                                    
     different things  to keep alcohol  out of the  hands of                                                                    
     young people, but probably the  most useful thing, from                                                                    
     our perspective  in Juvenile Justice, is  in seeking to                                                                    
     establish  a  tracking  mechanism for  minor  consuming                                                                    
     cases.   Currently,  when an  individual  is cited  for                                                                    
     underage  drinking or  possession,  the justice  system                                                                    
     has a  difficult time establishing the  number of times                                                                    
     the  youth   has  been  cited  previously   or  whether                                                                    
     compliance  with  education or  treatment  requirements                                                                    
     from an earlier case was  achieved.  This bill lays the                                                                    
     ground work  for an improved  system of  tracking minor                                                                    
     consuming   offenses,   hopefully    resulting   in   a                                                                    
     coordinated  approach  across   agencies  working  with                                                                    
     these  youth  to monitor  and  report  on the  outcomes                                                                    
     associated with the minor consuming offense.                                                                               
                                                                                                                                
9:21:57 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX, upon determining no  one else wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
9:22:05 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH expressed the desire  to set HB 327 aside and                                                               
have the administration review the civil penalties.                                                                             
                                                                                                                                
CO-CHAIR LEDOUX  clarified that  she didn't  intend to  report HB
327 from committee today.                                                                                                       
                                                                                                                                
9:22:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   OLSON  requested   more  information   from  the                                                               
Department  of  Corrections  in  relation  to  its  indeterminate                                                               
fiscal note.   He  suggested that  perhaps a  hypothetical fiscal                                                               
note could be drafted in terms of the various classes of crimes.                                                                
                                                                                                                                
9:23:01 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  opined that  the sooner  disincentives are                                                               
in place and  the tougher they are  the better.  In  fact, a more                                                               
costly  first  penalty  for  the offense  is  more  effective  in                                                               
successfully changing behavior.                                                                                                 
                                                                                                                                
[HB 327 was held over.]                                                                                                       

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