Legislature(2005 - 2006)HOUSE FINANCE 519

03/14/2006 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 365 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HB 366 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ HB 190 REQUIRED ID FOR PURCHASING ALCOHOL TELECONFERENCED
Heard & Held
+ HB 409 NO WORKERS' COMP. FOR REAL EST. LICENSEE TELECONFERENCED
Moved CSHB 409(L&C) Out of Committee
+ HB 471 KNIK ARM BRIDGE AND TOLL AUTHORITY TELECONFERENCED
Moved CSHB 471(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 190                                                                                                            
                                                                                                                                
     "An  Act  relating to  certain  licenses  for the  sale,                                                                   
     distribution,   or  manufacture  of  tobacco   products;                                                                   
     relating to  tobacco taxes  and sales and  cigarette tax                                                                   
     stamps;   relating   to    provisions   making   certain                                                                   
     cigarettes  contraband   and  subject  to   seizure  and                                                                   
     forfeiture; relating  to certain crimes,  penalties, and                                                                   
     interest  concerning tobacco  taxes and sales;  relating                                                                   
     to  notification  regarding a  cigarette  manufacturer's                                                                   
     noncompliance   with   the    tobacco   product   Master                                                                   
     Settlement  Agreement  or related  statutory  provisions                                                                   
     and  to confiscation  of  the affected  cigarettes;  and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
Representative Foster  MOVED to ADOPT  the work draft  for HB                                                                   
190, labeled  24-LS0617\S, Luckhaupt,  3/10/06.   There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
2:42:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HARRY CRAWFORD,  sponsor,  spoke strongly  in                                                                   
support of  HB 190 because of  its potential to save  so many                                                                   
lives.   He  shared a  personal  story about  a car  accident                                                                   
involving his  wife and a repeat  offender drunk driver.   He                                                                   
emphasized that this bill focuses  on prevention, rather than                                                                   
punishment.   As a matter of  routine, a judge will  issue an                                                                   
order for  the defendant  not to buy  or consume  alcohol, or                                                                   
enter a licensed  establishment.  Many  offenders immediately                                                                   
purchase alcohol upon their release.   He related that he has                                                                   
borrowed  language from  other previous  bills to draft  this                                                                   
bill, which  would provide  for a  physical display  on state                                                                   
issued ID's if  a person has been prohibited  from purchasing                                                                   
alcohol  by a court.   It  also allows  for a civil  penalty,                                                                   
paid to the  licensee if a person restricted  from purchasing                                                                   
alcohol is on their premises.                                                                                                   
                                                                                                                                
Representative Crawford acknowledged  that "change" is always                                                                   
difficult.  There are many amendments  that were incorporated                                                                   
into the committee substitute.                                                                                                  
                                                                                                                                
2:48:22 PM                                                                                                                    
                                                                                                                                
Representative Crawford  provided a sectional  analysis of HB                                                                   
190 (copy on file.)                                                                                                             
                                                                                                                                
Section  1 amends  AS  04.16 by  adding  a  new section  that                                                                   
provides that  a person who  purchases alcohol may  not enter                                                                   
or remain on  licensed premises, provides a  civil remedy for                                                                   
licensees against persons who violate this section.                                                                             
                                                                                                                                
Section 2  amends AS 04.16 by  adding a new section  that the                                                                   
purchasing of  alcoholic beverages by  a person of  legal age                                                                   
is a privilege  that can be  revoked for the conviction  of a                                                                   
crime or as a condition of probation or parole.                                                                                 
                                                                                                                                
Section 3 provides a conforming amendment to Section 2.                                                                         
                                                                                                                                
Section 4 amends  AS 28.15.111(a) by requiring  that drivers'                                                                   
licenses  must  be  designed  to  allow  the  license  to  be                                                                   
electronically  read so as  to display  whether a person  has                                                                   
privilege   to   purchase  alcoholic   beverages   under   AS                                                                   
04.16.160.                                                                                                                      
                                                                                                                                
New Section  5 requires DMV to  cancel and re-issue  a marked                                                                   
license if an individual's privilege  to purchase alcohol has                                                                   
been revoked under Section 2 of HB 190.                                                                                         
                                                                                                                                
New Section  6 requires  the surrender of  a license  when an                                                                   
individual  has  been  ordered  not to  consume  alcohol  and                                                                   
establishes the  obligation of  the court and  the Department                                                                   
of Corrections to notify DMV when an order is issued.                                                                           
                                                                                                                                
New Section 7 permits DMV to establish  a fee for issuing the                                                                   
marked licenses established by HB 190.                                                                                          
                                                                                                                                
Representative  Crawford offered to  answer questions  of the                                                                   
committee.                                                                                                                      
                                                                                                                                
2:51:57 PM                                                                                                                    
                                                                                                                                
DUANE  BANNOCK,   DIRECTOR,  DIVISION   OF  MOTOR   VEHICLES,                                                                   
DEPARTMENT  OF  ADMINISTRATION,  noted appreciation  for  the                                                                   
work done  on this legislation.   He said DMV  recognizes the                                                                   
trouble that drunk driving has  caused Alaskans.  He reminded                                                                   
members  about  previous legislation  addressing  deaths  and                                                                   
accidents involving younger drivers.                                                                                            
                                                                                                                                
He  apologized to  the  committee for  the  submission of  an                                                                   
indeterminate fiscal note.  The  DMV has not been able to get                                                                   
a grip  on the number  of persons that  would be  affected by                                                                   
passage of the  legislation.  The Division does  not know how                                                                   
much it will  cost to develop an accurate real  time exchange                                                                   
between the Court  System and the Department  of Corrections.                                                                   
There   is  no  direct   link  between   the  Department   of                                                                   
Corrections and DMV.  He stressed  the worthwhile goal of the                                                                   
legislation.                                                                                                                    
                                                                                                                                
2:56:07 PM                                                                                                                    
                                                                                                                                
Mr.  Bannock  questioned  the  tie-in between  the  bill  and                                                                   
drinking while driving.  He asked  how the tragic story could                                                                   
change for drinking while driving  as a result of the passage                                                                   
of this bill.                                                                                                                   
                                                                                                                                
Co-Chair  Meyer asked  how the courts  and other  departments                                                                   
could link up  to see that the driver's licenses  are marked.                                                                   
Mr.  Bannock  replied  that  court-ordered   revocations  are                                                                   
usually  sent by  mail.   The  systems  are not  intra-agency                                                                   
connected.   In the future, the  agencies would like  to have                                                                   
that  type of  system for  intra-agency  communication.   The                                                                   
state is millions of dollars away from such a system.                                                                           
                                                                                                                                
2:59:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  posed a hypothetical situation  involving the                                                                   
transfer of information.   Mr. Bannock acknowledged  that his                                                                   
example was  correct, and  added that  there remains  an open                                                                   
end  in  the  circuit  concerning   the  vendor  selling  the                                                                   
alcohol.                                                                                                                        
                                                                                                                                
Representative Kerttula  assumed that the court  system could                                                                   
relay that  information by email.   Mr. Bannock  replied that                                                                   
under the  bill, Section 6, addresses  that.  He  agreed that                                                                   
email would  be the most efficient  way at this time,  but is                                                                   
not the cure-all of the overall purpose of the bill.                                                                            
                                                                                                                                
3:01:34 PM                                                                                                                    
                                                                                                                                
Representative  Crawford stated  that even  he is capable  of                                                                   
emailing.  He said he believes  that Mr. Bannock's assessment                                                                   
that  this would  cost  millions of  dollars  was creating  a                                                                   
"road-block".    He disagreed  with  Mr.  Bannock's  opinion.                                                                   
There   are   financial  incentives   associated   with   the                                                                   
legislation.  He emphasized that  the state must do something                                                                   
to interrupt the current situation.                                                                                             
                                                                                                                                
3:03:57 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer asked about the  constitutionality of labeling                                                                   
the ID of a person for drinking concerns.                                                                                       
                                                                                                                                
ANNE CARPENETI,  ASSISTANT ATTORNEY  GENERAL, LEGAL  SERVICES                                                                   
SECTION-JUNEAU,   CRIMINAL  DIVISION,   DEPARTMENT  OF   LAW,                                                                   
replied  that  it could  raise  constitutional  issues.   She                                                                   
thought  there  would  be ways  to  get  information  without                                                                   
carrying a "scarlet letter" for that person.                                                                                    
                                                                                                                                
Co-Chair Meyer suggested it could  impact DMV.  Ms. Carpeneti                                                                   
thought  that  there  may  have  to  be  a  bar  code  reader                                                                   
involved.                                                                                                                       
                                                                                                                                
Co-Chair Meyer commented on the  financial incentive to check                                                                   
the  identification.    Ms.  Carpeneti   responded  that  the                                                                   
current  drafting  would not  allow  for buying  or  drinking                                                                   
alcohol on the premise.                                                                                                         
                                                                                                                                
Representative Stoltze asked if  the consequences would apply                                                                   
only to  those that who commit  an offense after  the passage                                                                   
of   the  bill.      Ms.   Carpeneti  suggested   adding   an                                                                   
applicability section to the bill to clarify that.                                                                              
                                                                                                                                
Representative Stoltze  voiced concern with  the registration                                                                   
of sex offenders previous to the  passage of the sex offender                                                                   
bill.  If that logic was followed  in this legislation, there                                                                   
could  be problems.   Ms.  Carpeneti  advised that  generally                                                                   
criminal statutes apply into the future, not the past.                                                                          
                                                                                                                                
Representative  Stoltze  commented  that  there would  be  no                                                                   
"looking back" at offenses.  Ms.  Carpeneti discussed how the                                                                   
application works post facto and  said it could be applied as                                                                   
a condition of parole.                                                                                                          
                                                                                                                                
3:10:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  noted that  when a  person does buy  alcohol,                                                                   
any ID is ok  to use.  Ms. Carpeneti agreed.   Representative                                                                   
Crawford pointed out that the  bill addresses both the ID and                                                                   
driver's  license.   Ms.  Carpeneti added  that  it does  not                                                                   
mention a passport.                                                                                                             
                                                                                                                                
Representative  Stoltze  suggesting  looking  a list  of  all                                                                   
possible ID's.  Ms. Carpeneti  said a person could get around                                                                   
it by using another form of ID.                                                                                                 
                                                                                                                                
Co-Chair Meyer implied that a  habitual offender would try to                                                                   
get around the law.                                                                                                             
                                                                                                                                
3:12:58 PM                                                                                                                    
                                                                                                                                
Representative Crawford  noted that the bill  is not perfect.                                                                   
He said he did not want to prohibit  a person with an out-of-                                                                   
state  license or  an  ID from  another  country from  buying                                                                   
alcohol.    The bill  is  just  trying to  prohibit  habitual                                                                   
offenders in Alaska; it is not trying to be all-inclusive.                                                                      
                                                                                                                                
Co-Chair  Meyer  expressed a  concern  about  loopholes.   He                                                                   
asked  if  there  is  a  way  to  educate  owners  of  liquor                                                                   
establishments.                                                                                                                 
                                                                                                                                
DOUG  GRIFFIN,  DIRECTOR,  ALCOHOL   BEVERAGE  CONTROL  (ABC)                                                                   
BOARD,  responded that  Co-Chair Meyer  is correct in  saying                                                                   
that any kind of government issued  ID, which would include a                                                                   
passport,  military  ID, or  a  driver's license  from  other                                                                   
states or territories could be used.                                                                                            
                                                                                                                                
Co-Chair Meyer asked  for comments on the bill.   Mr. Griffin                                                                   
said the removal of the requirement  that everyone purchasing                                                                   
alcoholic  beverages must  show  identification, removes  the                                                                   
direct interest the ABC Board  would have in this matter.  He                                                                   
spoke of his board's concern about the abuse of alcohol.                                                                        
                                                                                                                                
Co-Chair Meyer  noted previous bills regarding  this subject.                                                                   
He  spoke of  the  success  of those  bills.    He asked  Mr.                                                                   
Griffin if businesses have taken  advantage of civil lawsuits                                                                   
to sue persons  who use a fake ID.  Mr. Griffin  said he does                                                                   
not know  if they  are taking  the "civil  action" step.   He                                                                   
noted most come from Brown Jug and Chilkoot Charlie's.                                                                          
                                                                                                                                
3:18:36 PM                                                                                                                    
                                                                                                                                
Representative Kerttula  pointed out that in  Juneau when Co-                                                                   
Chair  Meyer's bill  on underage  drinking passed,  a lot  of                                                                   
education related  information went  out.  The  programs were                                                                   
successful in rural areas due to this education.                                                                                
                                                                                                                                
Mr.  Griffin responded  that  there are  differences  between                                                                   
underage drinking  and HB 190,  which deals with  the alcohol                                                                   
abuser.    He  agreed  that  we   must  take  a  multifaceted                                                                   
approach.                                                                                                                       
                                                                                                                                
3:21:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault MOVED to ADOPT Amendment #1:                                                                                  
                                                                                                                                
     Page 3, line 27                                                                                                            
     Following "license," delete "the person must obtain a                                                                      
     new license that lists" and insert "when the person                                                                        
     obtains a new license, the license must list"                                                                              
                                                                                                                                
     Page 4, line 2                                                                                                             
     Delete "the person must obtain a new license that                                                                          
     lists" and insert "when the person obtains a new                                                                           
     license, the license must list"                                                                                            
                                                                                                                                
Representative Stoltze OBJECTED for discussion purposes.                                                                        
                                                                                                                                
Representative Crawford  addressed the amendment.   He stated                                                                   
that the language change was requested by DMV.                                                                                  
                                                                                                                                
Co-Chair Chenault asked for Mr. Duane Bannock's opinion.                                                                        
                                                                                                                                
Duane Bannock  stated  that DMV concurs  with the  amendment.                                                                   
He summarized that  when a person applies for  a new license,                                                                   
then the new license must be marked.                                                                                            
                                                                                                                                
Representative  Joule asked  how  the mark  would be  removed                                                                   
when the penalty ends.  Representative  Crawford replied that                                                                   
the day the penalty ends, a new license could be obtained.                                                                      
                                                                                                                                
Representative Crawford shared  that in Minnesota, a person's                                                                   
car   license    plate   is   marked   and    that   is   not                                                                   
unconstitutional.   Co-Chair Meyer  responded that he  has no                                                                   
problem with that.  He stated  a concern about discrimination                                                                   
when trying to  rent a car.  Representative  Crawford thought                                                                   
it would  be up to the car  rental company's discretion.   He                                                                   
said  he does  not want  to address  that  situation in  this                                                                   
bill.                                                                                                                           
                                                                                                                                
Representative  Stoltze  REMOVED  his OBJECTION  to  adopting                                                                   
Amendment  #1.  There  being NO  OBJECTION, Amendment  #1 was                                                                   
adopted.                                                                                                                        
                                                                                                                                
3:28:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer stated his intent  to hold the bill due to the                                                                   
indeterminate fiscal  note, and  because he does  not believe                                                                   
that the bill targets the intended person.                                                                                      
                                                                                                                                
Representative Crawford  replied that the cost  would be born                                                                   
by the  offenders, not the  state.  The  fiscal note  must be                                                                   
indeterminate  because  the  numbers  of  offenders  are  not                                                                   
known.  He emphasized  that it would not be a  direct cost to                                                                   
the  state.    He  addressed  targeting  the  offender.    He                                                                   
explained  his intent  to give  tools to the  people who  are                                                                   
willing to help  "end this carnage".  He admitted  that it is                                                                   
not a perfect bill, but he strongly  asked for passage of the                                                                   
bill.                                                                                                                           
                                                                                                                                
Co-Chair  Meyer suggested  talking  to Brown  Jug about  this                                                                   
bill.  He said  he is not sure licensed premises  would agree                                                                   
to take this step.  Representative  Crawford reported that in                                                                   
his  discussions  with  licensed   establishments,  he  found                                                                   
offers of support.                                                                                                              
                                                                                                                                
Representative  Stoltze  suggested  finding  a  way  to  make                                                                   
offenders pay the cost.                                                                                                         
                                                                                                                                
3:33:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer said  that a bar coding system  could be used.                                                                   
Representative  Crawford  disagreed with  that  concept.   He                                                                   
said he prefers a marking system.                                                                                               
                                                                                                                                
CSHB 190  (FIN) was heard and  HELD in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                

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