Legislature(2011 - 2012)HOUSE FINANCE 519

04/06/2011 08:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 125 ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Heard & Held
*+ HB 206 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 206                                                                                                            
                                                                                                                                
     "An Act relating to the Alcoholic Beverage Control                                                                         
     Board; and providing for an effective date."                                                                               
                                                                                                                                
                                                                                                                                
8:49:47 AM                                                                                                                    
                                                                                                                                
JENNIFER   SENETTE,   STAFF,  REPRESENTATIVE   KURT   OLSON,                                                                    
explained that the legislation  would extend the termination                                                                    
date if  the Alcohol  Beverage Control  Board (ABC)  to June                                                                    
30, 2015; this  was a four-year extension  and reflected the                                                                    
recommendation  of   the  2009   audit  report.   The  audit                                                                    
recommended  that the  legislature  extend  the ABC  Board's                                                                    
termination date  until June 30,  2014, but  legislation had                                                                    
been passed during  the 2010 session that  extended the date                                                                    
an additional  year. The extension  had been  honored during                                                                    
the crafting of  HB 206, resulting in a  termination date of                                                                    
June 30, 2015.                                                                                                                  
                                                                                                                                
Co-Chair  Stoltze requested  further clarification  from the                                                                    
Division of  Legislative Budget and Audit  (LB&A) concerning                                                                    
the audit.                                                                                                                      
                                                                                                                                
PAT DAVIDSON,  LEGISLATIVE AUDITOR, DIVISION  OF LEGISLATIVE                                                                    
AUDIT,  reiterated  that in  2009  LB&A  had conducted  full                                                                    
sunset review of  the board and had  recommended a four-year                                                                    
extension. In 2010  the legislature passed a  bill to extend                                                                    
the ABC  Board by one  year. As  a result, a  current status                                                                    
check  of the  recommendations  that had  been  made in  the                                                                    
prior audit was  conducted. The division had  focused on two                                                                    
recommendations;  the first  was to  determine that  the ABC                                                                    
Board   had    established   quantifiable    and   objective                                                                    
enforcement  goals, and  to develop  a clear  plan in  which                                                                    
enforcement  resources   could  be  directed  in   order  to                                                                    
maximize  efficiency and  effectiveness. The  division found                                                                    
that the  recommendation had been partially  resolved. While                                                                    
enforcement  staff had  been successful  in meeting  some of                                                                    
the  regional  inspection  goals,  reducing  the  number  of                                                                    
duplicate inspections had been  less successful, as had been                                                                    
the  results  concerning   compliance  check  activity.  The                                                                    
second recommendation dealt  with administrative activities.                                                                    
Several outstanding issues  had been substantially resolved.                                                                    
One  related to  reconciliation  between the  ABC data  base                                                                    
with regard to licensing  activity and the states accounting                                                                    
records.  Accurate distribution  of licensing  fees back  to                                                                    
municipalities was dependent on  the ABC being reconciled to                                                                    
the state accounting system.                                                                                                    
                                                                                                                                
8:53:37 AM                                                                                                                    
                                                                                                                                
Representative  Gara  wondered  whether the  duplication  of                                                                    
serviced had resulted in wasted  funds. Ms. Davidson replied                                                                    
that there had been no duplication of services.                                                                                 
                                                                                                                                
Vice-chair  Fairclough asked  how long  ago the  outstanding                                                                    
recommendations  had  been  recommended to  the  board.  Ms.                                                                    
Davidson    responded    that    the    enforcement    goals                                                                    
recommendation had first appeared  in the 2006 sunset audit.                                                                    
A series  of administrative recommendations had  been issued                                                                    
for the past few years, some in 2006 and more in 2010.                                                                          
                                                                                                                                
Vice-chair  Fairclough  wondered  whether the  division  had                                                                    
reviewed the attendance and longevity  of board members. Ms.                                                                    
Davidson stated that  the longevity of members  had not been                                                                    
examined. Quorum maintenance and  meeting attendance had not                                                                    
been issues for the division.                                                                                                   
                                                                                                                                
Vice-chair  Fairclough  asked  if   there  had  been  enough                                                                    
longevity  on the  board to  recognize that  since 2006  the                                                                    
same recommendations were coming  back before the group. Ms.                                                                    
Davidson answered  that she  did not  know. She  stated that                                                                    
any  noted progress  had occurred  under  the new  executive                                                                    
director of  the board.  She stated  that the  changeover of                                                                    
the new executive director was  noteworthy in the 2010 audit                                                                    
as an observance  of corrective actions by  the board having                                                                    
taken place.                                                                                                                    
                                                                                                                                
Representative Wilson  expressed concern that the  board had                                                                    
not  taken  proper  minutes or  given  proper  prior  public                                                                    
notice  of  meetings. Ms.  Davidson  relayed  that when  the                                                                    
board examined the  activities over the last  year, the only                                                                    
two issues remaining with regard  to board meetings was that                                                                    
the agendas  had not  listed the  timing of  public comment,                                                                    
and that the board had failed  to document when it was going                                                                    
into  executive  session.  Continuing problems  with  public                                                                    
notice had not been discovered.                                                                                                 
                                                                                                                                
Representative  Wilson  asked  if  the  public  comment  and                                                                    
executive session  issues had been alleviated.  Ms. Davidson                                                                    
replied that the issues had been resolved.                                                                                      
                                                                                                                                
8:58:24 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze OPENED public testimony.                                                                                       
                                                                                                                                
8:58:55 AM                                                                                                                    
                                                                                                                                
BELEN  COOK, BOARD  MEMBER, ALASKA  BEVERAGE CONTROL  BOARD,                                                                    
DEPARTMENT  OF  HEALTH  AND SOCIAL  SERVICES,  CORDOVA  (via                                                                    
teleconference), testified in support of HB 206.                                                                                
                                                                                                                                
Vice-chair Fairclough understood that  there were members of                                                                    
the  board that  were coming  up for  reappointment or  were                                                                    
facing  an  expiration of  term.  She  asked if  there  were                                                                    
people  on the  board  that had  been  members for  multiple                                                                    
years, and  if so, why  had the audit  recommendations taken                                                                    
so long to be resolved.                                                                                                         
                                                                                                                                
Ms.  Cook replied  that  the last  two  appointees were  Bob                                                                    
Kline, ABC  Board Chairman who represented  industry and had                                                                    
been on  the board  off and  on for the  last 12  years. She                                                                    
added that  he was  a good and  fair chairman.  Joe Delphino                                                                    
had been  on the board  prior to Ms. Cook's  appointment and                                                                    
was  expected  to   seek  reappointment,  however,  personal                                                                    
reasons had  prevented him  from remaining  on the  board. A                                                                    
Wasilla resident now filled the  chair. Ellen Ganley was the                                                                    
vice-chair representing a  public seat, and had  been on the                                                                    
board off  and on for  10 years. She  did not know  why some                                                                    
members had not stayed on  the board longer. She shared that                                                                    
the problems highlighted by the  audit had been sufficiently                                                                    
handled by the director.                                                                                                        
                                                                                                                                
9:04:01 AM                                                                                                                    
                                                                                                                                
DALE  FOX,   PRESIDENT  AND   CEO,  CHARR,   ANCHORAGE  (via                                                                    
teleconference)  spoke in  support of  HB 206.  He testified                                                                    
that the ABC  was an important organization  that provided a                                                                    
level  playing field  for licensees.  The industry  had seen                                                                    
major improvements under the direction  of the new executive                                                                    
director, Shirley Gifford.                                                                                                      
                                                                                                                                
BOB   WINN,  BLUES   CENTRAL/CHEF'S   INN,  ANCHORAGE   (via                                                                    
teleconference) voiced support of HB 206.                                                                                       
                                                                                                                                
HB  206  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:06:39 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:07:06 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 125 Supporting Documents-Related Statutes.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB125 Sponsor Statement.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB 125 F.O.E. Letter.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB125 Supporting Documents-ABC Sunset Review.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB125 Supporting Documents-LB&A Subcom Rcmndtn ABC Board.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB125-Summary of Changes.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB206 Sponsor Statement.pdf HFIN 4/6/2011 8:30:00 AM
HB 206
HB206 Supporting Documents- ABC Board Audit Summary 8-14-2009.pdf HFIN 4/6/2011 8:30:00 AM
HB 206
HB206 Supporting Documents- ABC Board Audit 8-14-2009.pdf HFIN 4/6/2011 8:30:00 AM
HB 206
HB 125 F.O.E. Letter.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB 125 AMHB letter.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB125-NEW FN CCED-ASD-03-29 11.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB206-DPS-ABCB-04-04-11.pdf HFIN 4/6/2011 8:30:00 AM
HB 206
HB 125 ABCB Complaint Procedure.pdf HFIN 4/6/2011 8:30:00 AM
HB 125
HB 125 DHSS Alccohol Sales Minors.pdf HFIN 4/6/2011 8:30:00 AM
HB 125