Legislature(2007 - 2008)HOUSE FINANCE 519
05/16/2007 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB128 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 128 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 128(FIN)
"An Act relating to the sale, distribution, and
purchase of alcoholic beverages; relating to a state
database for records of certain purchases of alcoholic
beverages; relating to the relocation of a license to
sell alcoholic beverages; relating to procedures for
local option elections for control of alcoholic
beverages; and providing for an effective date."
GINNY AUSTERMAN, STAFF, SENATOR DONNY OLSON, explained that
SB 128 was drafted at the urging of the Alaska Rural Justice
and Law Enforcement Commission. She continued:
This legislation is an integral part of the effort to
regulate the sale, distribution, purchase and shipment
of alcoholic beverages into damp local option
communities within the State of Alaska. It puts in
place a requirement for the Alcoholic Beverage Control
Board to create and maintain a database that contains
up to date information related to written orders for
alcohol shipped to the writer of the order. The
package store licensee must consult the database prior
to filling each order.
Currently, AS 04.11.150(g) regulates the amounts of
alcoholic beverages to residents of Local Option Areas,
SB 128 requires that the package store licensee, agent,
or employee access the database to determine the
amounts of alcoholic beverages already ordered by an
individual. It also requires that the date and amount
of the new order be immediately added to the database.
This database will adversely impact the importation and
sale of alcoholic beverages into rural Alaskan
communities by bootleggers. The information in the
database will be accessible only to package stores and
law enforcement none of the information would be
available to the public.
Senate Bill 128 also contains a provision relative to
the transfer of liquor licenses between an organized
borough and communities in that borough. Many
communities across the state have used their allotment
of liquor licenses, while their borough has not, or
vice versa. Alcoholic beverage licenses may now be
transferred within a borough upon approval of the
governing bodies of both the borough and the
incorporated city.
9:28:55 AM
Ms. Austerman explained:
Sections 1 and 2 speak to the requirement of the ABC
Board to create and maintain a database to keep track
of written orders for alcohol from persons residing in
damp local option communities; clearly states to whom
information in the database is available; they
describe, in detail the steps for licensee's to record
and review information in the database; and make
failure to comply with the requirements a class B
misdemeanor.
Section 3 limits the shipping of alcohol in response to
a written order to the address of the person ordering
the alcohol unless that person lives in an area where
there is a community delivery site.
Sections 4 & 5 allow for the relocation of existing
liquor licenses within a borough. Such relocation of
licenses is limited to not more than three in each
decade. "Decade" means each 10 year period beginning
April 1 in a year ending in zero.
Sections 6, 7, 11, 12, and 13 prohibit transport,
importation, purchase, or resale of alcohol in
violation of the local option, and change such offenses
from a class C felony to a class A misdemeanor. These
sections also include conforming amendments for the new
provisions in sections 7 and 12 and 13.
Section 8 extends the period after a local option has
been adopted from 12 to 24 months before an election
may be held to remove the option or change the option
to a less restrictive alternative. It also provides
for an election to remove or make the option less
restrictive, once in a 36 month period. Currently that
period is 18months.
9:30:23 AM
Section 9 prohibits a person from purchasing alcohol by
written order on behalf of another person who resides
in a local option community, and makes the violation a
class A misdemeanor.
Section 10 prohibits a person in a dry local option
area from possessing ingredients or equipment with the
intention of making home brew. This violation would
also be a class A misdemeanor.
Sections 14 and 15 amend forfeiture provisions for
violations of AS 04.11.499 to include the alcohol
purchased from a bootlegger in violation of the
community's local option. Forfeiture of an airplane or
other vehicle is not allowed.
Section 16 allows the ABC Board to establish pilot
alcohol delivery sites in Bethel and Kotzebue at the
request of those communities. Once opened, the sites
would operate for a period of three years.
Sections 17 - 22 include instructions to the revisor of
statutes and effective dates.
Representative Joule asked if the state would operate this
program in Bethel and Kotzebue. Ms. Austerman replied that
the state will handle it the same way it is currently being
handled in Nome.
9:32:14 AM
ANNE CARPENETI, ASSISTANT ATTORNEY GENERAL, LEGAL SERVICES
SECTION-JUNEAU, CRIMINAL DIVISION, DEPARTMENT OF LAW, said
her understanding is that the pilot project would be
operated by the state and then taken over by the municipal
government.
Representative Joule thought the model of the program in
Barrow was a good one. He spoke of a delivery site serving
a very useful purpose. He mentioned a problem with lag time
before the program is implemented because the communities
would end up being "dry" by default. Ms. Carpeneti
explained that first the local municipalities need to ask
the ABC Board to establish delivery sites. A delivery site
would not be imposed, but requested. Representative Joule
understood that it was optional.
9:34:24 AM
CASEY REYNOLDS, ECONOMIC DEVELOPMENT PLANNER, WASILLA,
addressed Section 5, which was at their request, regarding
relocation of liquor licenses. The population inside city
boundaries is smaller than the area serviced, and liquor
licenses are allocated based on population. Because of
that, it is difficult to attract and develop restaurants
because liquor licenses can't be obtained. This legislation
is a way to remedy that problem. It is Wasilla's intent to
have the relocation of an existing beverage dispensary
license apply only to restaurants, not bars or liquor
stores. It also provides for using existing liquor licenses
more effectively. The ABC Board supports this section. It
has been restricted so that it is allowed only three times
every ten years. Co-Chair Meyer agreed with that limitation.
9:37:19 AM
Representative Joule wondered if the fiscal note for the
bill was included in the budget. Co-Chair Meyer said he
would address that later.
DOUGLAS GRIFFIN, DIRECTOR, ALCOHOLIC BEVERAGE CONTROL BOARD,
DEPARTMENT OF PUBLIC SAFETY, related that no money was
budgeted for this item. He thought it could be a pending
budget issue. He concurred with Mr. Reynolds comments.
TALIS COLBERG, ATTORNEY GENERAL, DEPARTMENT OF LAW, related
that he is also co-chair of the Rural Justice Commission,
which is where SB 128 had its genesis. He commented that
the bill would be helpful toward alleviating problems with
alcohol in "dry" and "damp" villages. It was the unanimous
recommendation of the Commission. He testified in support
of the bill.
9:41:18 AM
Co-Chair Meyer MOVED to ADOPT Amendment #1:
Page 1, line 9
After "and"
Delete "shipments"
Insert "shipped"
Representative Hawker OBJECTED.
SUZANNE CUNNINGHAM, STAFF, REPRESENTATIVE MEYER, explained
that Amendment #1 should read, "Delete 'shipments made'".
9:42:02 AM
Representative Hawker MOVED to ADOPT a Conceptual Amendment
to Amendment 1, to have line 3 say, Delete "shipments made".
There being NO OBJECTION, it was so ordered.
Ms. Cunningham continued that the amendment clarifies that
the database will contain monthly information of alcohol
that is purchased and shipped to a person who resides in a
municipality or established village that has restricted the
sale of alcoholic beverages.
Representative Hawker WITHDREW his objection. There being
NO OBJECTION, Amendment #1 was adopted, as amended.
9:42:57 AM
Co-Chair Meyer MOVED to ADOPT Amendment #2:
Insert new section:
AS 04.11.010 (a) is amended to read:
(a) Except as provided in AS 04.11.020, a person
may not knowingly manufacture, sell, offer
for sale, possess for sale or barter, traffic
in, or barter an alcoholic beverage unless
under license or permit issued under this
title.
Renumber remaining sections accordingly.
Representative Hawker OBJECTED.
Ms. Cunningham explained that the purpose of Amendment #2
relates to an amendment that was added in the House
Judiciary Committee to the House companion bill. It
clarifies a statute and inserts a culpability provision.
Co-Chair Meyer said it was discussed in the Judiciary
Committee.
Representative Hawker WITHDREW his objection to Amendment
#2. There being NO OBJECTION, it was so ordered.
9:44:38 AM
Ms. Cunningham clarified that the Conference Committee
accepted a report that did include the Department of Public
Safety statewide support ABC Board fiscal note for $317.5
thousand in general funds.
Representative Foster wondered if the user could pay for
this instead of the state.
9:46:15 AM
LAUREN RICE, LEGISLATIVE LIAISON, DEPARTMENT OF PUBLIC
SAFETY, reported that it has not been clarified who would
pay for the distribution centers.
Mr. Griffin reported that the ABC Board could establish
surcharges, through regulation, at the delivery sites. He
referred to Barrow as an example of the way it could work.
Co-Chair Meyer mentioned fiscal notes #2 and #3.
9:48:54 AM
Representative Hawker voiced concern about the creation of
the database, which includes every person in a village. It
is a legal transaction, and a state database is
inappropriate and violates privacy and individual rights.
He spoke strongly against the policy.
9:51:24 AM
Representative Nelson thought those arguments applied to the
methamphetamine database. She related a personal
experience. She maintained that her rights have to be
waived for the well-being of a community. There is a limit
to how much alcohol can be imported into the two
communities. She agreed with the database in order to help
the community.
Representative Joule suggested expunging the database after
two years. Representative Nelson thought DNA collection was
much more invasive and those records are expunged after a
period of time.
9:54:37 AM
Representative Hawker agreed with concerns about DNA
collection, but saw a difference between that situation and
the database in this legislation because there is probable
cause involving DNA collection and the data will be purged.
He maintained that the database for alcohol purchasing
violates the privacy of the innocent majority. He wished
there could be another way.
9:56:29 AM
Representative Thomas related a personal experience with
having to register for the purchase of allergy medication.
He concurred with Representative Hawker's thoughts.
Representative Thomas reported that his pending amendment
would allow a destination point in Hoonah for cruise ship
customers to buy alcohol. It would not be open to the
public.
9:58:39 AM
Representative Foster MOVED to REPORT HCS CSSB 128 (FIN) out
of Committee with individual recommendations and the
accompanying fiscal notes.
HCS CSSB 128 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with fiscal note #2 by Department
of Public Safety, and with zero fiscal note #3 by the
Department of Law.
10:00:36 AM
At-ease.
Co-Chair Meyer recessed the meeting to the call of the
chair.
12:10:11 PM
Co-Chair Meyer brought the meeting back to order.
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