Legislature(2007 - 2008)HOUSE FINANCE 519

04/11/2007 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 155 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved CSHB 155(FIN) Out of Committee
+ HB 158 PRIVATE INVESTIGATORS/AGENCIES TELECONFERENCED
<Bill Hearing Canceled>
+ HB 178 EMPLOYM'T OF PEOPLE W/ DISABILITIES COM. TELECONFERENCED
Moved CSHB 178(HES) Out of Committee
+ HB 212 LAND TRANSFERS ALASKA RR & EKLUTNA TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 67 MUNI PROP TAX EXEMPTION FOR POLICE HOMES TELECONFERENCED
Moved CSHB 67(FIN) Out of Committee
HOUSE BILL NO. 155                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Alcoholic                                                                    
     Beverage Control Board; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
ELEANOR  WOLFE,  STAFF, REPRESENTATIVE  KURT  OLSON,  related                                                                   
that  the  bill extends  the  sunset  date of  the  Alcoholic                                                                   
Beverage   Control  (ABC)   Board  for   six  years   at  the                                                                   
recommendation of the Legislative  Budget and Audit Committee                                                                   
(LB&A).                                                                                                                         
                                                                                                                                
2:47:36 PM                                                                                                                    
                                                                                                                                
DOUGLAS GRIFFIN, DIRECTOR, ALCOHOLIC  BEVERAGE CONTROL BOARD,                                                                   
DEPARTMENT OF  PUBLIC SAFETY, related the Board's  process of                                                                   
complying with  LB&A's recommendations.   He explained  about                                                                   
the process of  securing funding for those improvements.   He                                                                   
explained the make up and duties of the ABC Board.                                                                              
                                                                                                                                
Vice Chair Stoltze questioned  if there is a plan to increase                                                                   
the size of the board to include  rural members.  Mr. Griffin                                                                   
noted that there  was interest brought out by  the transition                                                                   
report  to look  at  broader geographical  representation  to                                                                   
include  at least  one rural  member.   There  was also  some                                                                   
discussion  about  expanding the  size  of the  board,  which                                                                   
would take further action.                                                                                                      
                                                                                                                                
2:52:05 PM                                                                                                                    
                                                                                                                                
Representative  Hawker spoke to  audit items (copy  on file.)                                                                   
He felt that items one to three  were profound and indicative                                                                   
of  weaknesses of  paramount importance.    He questioned  if                                                                   
improvements  have  been  made and  recommended  a  shortened                                                                   
sunset date.                                                                                                                    
                                                                                                                                
PAT   DAVIDSON,  LEGISLATIVE   AUDITOR,   LEGISLATIVE   AUDIT                                                                   
DIVISION,  LEGISLATIVE AFFAIRS  AGENCY, noted  that they  had                                                                   
not updated  the audit.   She  noted that the  recommendation                                                                   
was  for a  maximum  of six  years, which  is  less than  the                                                                   
statutory authority for eight years.                                                                                            
                                                                                                                                
Representative  Hawker  questioned   if  Ms.  Davidson  would                                                                   
recommend  a six-year  period  given the  seriousness of  the                                                                   
concerns.     Ms.   Davidson   noted  that   there  are   two                                                                   
alternatives to following  up on concerns, one  is to shorten                                                                   
the termination date; the other  would be for a request to do                                                                   
a  follow-up.   The six-year  recommendation  only speaks  to                                                                   
whether the board  should continue to exist.   Representative                                                                   
Hawker  ascertained  that  priority  be  given  to  statutory                                                                   
deadline audits.                                                                                                                
                                                                                                                                
2:56:42 PM                                                                                                                    
                                                                                                                                
In response  to a  question by  Representative Crawford,  Ms.                                                                   
Davidson noted  that the recommendation addresses  six items.                                                                   
Sometimes  procedures were  in  place, but  not followed;  at                                                                   
other  times procedures  were not  in existence,  such as  in                                                                   
data base access.  There is a  process for municipal refunds,                                                                   
but it was not followed.                                                                                                        
                                                                                                                                
Representative  Joule noted the  recent audit date  and asked                                                                   
if  it  would  be  difficult  to  see  if  items  were  being                                                                   
addressed.     He   pointed   out  that   there   is  a   new                                                                   
administration   and   questioned  if   there   could  be   a                                                                   
conditional six-year  extension with a two-year  review.  Ms.                                                                   
Davidson  noted  that a  lack  of  segregation of  duties  in                                                                   
Fairbanks  will take  some time  to address.   She felt  that                                                                   
most  issues  could   be  addressed  within  a   year.    She                                                                   
acknowledged  that   there  is  a  backlog   and  those  with                                                                   
statutory  deadlines have  priority.   She suggested  that an                                                                   
audit request would take two years.                                                                                             
                                                                                                                                
3:02:03 PM                                                                                                                    
                                                                                                                                
Representative  Joule questioned  if the  ABC Board  is short                                                                   
staffed.      Ms.   Davidson   clarified   that   there   are                                                                   
responsibilities that can be reallocated between staff.                                                                         
                                                                                                                                
Ms. Wolfe  explained that they  were aware of the  issues and                                                                   
were  advised that  they would  be addressed  by the  current                                                                   
administration.                                                                                                                 
                                                                                                                                
Mr. Griffin did not know of other  legislation to address the                                                                   
audit problems.                                                                                                                 
                                                                                                                                
In  response  to  a question  by  Representative  Kelly,  Ms.                                                                   
Davidson   explained   that   the  last   audit   had   eight                                                                   
recommendations, most  of which have been implemented.    The                                                                   
outstanding  issue  was  security  over the  database.    Ms.                                                                   
Davidson  observed that  the same  executive  director is  in                                                                   
charge,  but  that the  Board  has  just  been moved  to  the                                                                   
Department of Public Safety.   She did not know the makeup of                                                                   
the Board.                                                                                                                      
                                                                                                                                
Representative Kelly continued to express concerns.                                                                             
                                                                                                                                
3:07:01 PM                                                                                                                    
                                                                                                                                
Ms. Davidson explained  that the Department of  Public Safety                                                                   
and Board had  responded separately to the  concerns and both                                                                   
indicated support for the recommendations  and indicated that                                                                   
they would be addressed.                                                                                                        
                                                                                                                                
In  response  to  a  question  by  Vice  Chair  Stoltze,  Ms.                                                                   
Davidson noted  that a survey resulted in  positive responses                                                                   
regarding law  enforcement and  community groups'  opinion of                                                                   
how well  the ABC Board  was doing.   There was  some concern                                                                   
about  enforcement   activities  because  there   is  unequal                                                                   
enforcement  across  the state.    Businesses  in Juneau  and                                                                   
Fairbanks are  inspected within four years, while  Kenai only                                                                   
has a 50% chance of inspection.                                                                                                 
                                                                                                                                
3:11:14 PM                                                                                                                    
                                                                                                                                
Representative   Hawker   asked   about  the   priority   for                                                                   
legislative  audits  based on  who  made  the request.    Ms.                                                                   
Davidson  noted   that  no   priority  was  given   regarding                                                                   
individual legislators versus committees.                                                                                       
                                                                                                                                
Representative  Kelly commented that  even three  years would                                                                   
be  a long  time.   He expressed  concern  with a  three-year                                                                   
extension.                                                                                                                      
                                                                                                                                
Co-Chair Meyer noted that some  issues would take a couple of                                                                   
years.  Ms. Davidson noted that  a three-year extension would                                                                   
occur in  2010, which is  when they are  required to  have an                                                                   
audit.  She related the time frame needed.                                                                                      
                                                                                                                                
Representative  Kelly suggested  that a three-year  extension                                                                   
would send a strong signal.                                                                                                     
                                                                                                                                
3:15:10 PM                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to  ADOPT Conceptual Amendment 1:                                                                   
                                                                                                                                
     Change the date on line 5 from June 30, "2013" to                                                                          
     "2010."                                                                                                                    
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative  Gara asked  about the  removal of the  voting                                                                   
ability  of  the  director.    Ms.  Davidson  explained  that                                                                   
recommendation was based on a policy standpoint.                                                                                
                                                                                                                                
Co-Chair  Meyer mentioned  that a  new fiscal  note would  be                                                                   
needed.                                                                                                                         
                                                                                                                                
3:18:13 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED to REPORT  HB 155.  There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB  155 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and with  a  new  fiscal note  by  the                                                                   
Department of Public Safety.                                                                                                    
                                                                                                                                
3:19:58 PM                                                                                                                    
                                                                                                                                

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