Legislature(2007 - 2008)HOUSE FINANCE 519
05/11/2007 08:30 AM FINANCE
Download Mp3. <- Right click and save file as
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
SUMMARY CS SB 84(JUD) An Act relating to the testing and packaging of cigarettes to be sold, offered for sale, or possessed in this state; and providing for an effective date. HCS CS SB 84 (FIN) was reported out of Committee with a "" recommendation and with a new fiscal note by the Department of Health and Social Services, fiscal note #4 by the Department of Public Safety and a new fiscal note by the Department of Revenue. HCS CSSB 84 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with a previously published fiscal impact note from the Department of Public Safety and two new fiscal notes: DHSS #5 and REV #6. CS FOR SENATE BILL NO. 125(FIN) An Act relating to the accounting and payment of contributions under the retirement plans of the Public Employees' Retirement System of Alaska and the Teachers' Retirement System, to calculations of contributions under those retirement plans, and to participation in, and termination of and amendments to participation in, the defined benefit plans of those systems; relating to employer contributions to the health reimbursement arrangement plan; making conforming amendments; and providing for an effective date. HCS CS SB 125 (FIN) was reported out of Committee with a "do pass" recommendation and with indeterminate note #1 by the Department of Administration and fiscal note #2 by the Department of Administration. CS FOR SENATE BILL NO. 84(JUD) An Act relating to the testing and packaging of cigarettes to be sold, offered for sale, or possessed in this state; and providing for an effective date. Vice Chair Stoltze MOVED to ADOPT work draft #25-LS0596\N, Bannister, 5/9/07. There being NO OBJECTION, it was adopted. SUZANNE CUNNINGHAM, STAFF, REPRESENTATIVE MEYER, discussed the new provisions of HCS CSSB 84 (FIN). The Department of Health and Social Services (DHSS) will be required to notify tobacco endorsement holders when DHSS investigators cite employees of the endorsement holder for selling tobacco products to a minor. Notification can either be hand delivered or postmarked no later than five days after the citation is issued. Currently, endorsement holders become aware of the violation when they receive a suspension notice. The committee substitute (CS) expands the criteria that can be considered in a hearing pertaining to an endorsement holder's license suspension for a violation of selling tobacco products to a minor. The new criteria are: Did the endorsement holder adopt or enforce education, compliance and a disciplinary program for agents and employees? Did the endorsement holder overcome the presumption that an employee negligently sold tobacco products to a minor? Were there other violations of selling tobacco to a minor at the endorsement holder's locations within five years of the suspension hearing? Did the endorsement holder engage in conduct that was likely to result in the sale of tobacco to a minor? The committee substitute allows the suspension to be mitigated or aggravated based on the new criteria presented in the committee substitute pertaining to an endorsement holder's license suspension. Ms. Cunningham observed that the department could reduce a first offense suspension by ten days and a second offense by 20 days. The CS provides that a suspension can only be reduced once in a twelve month time period. A second suspension cannot be reduced if it occurs within a twelve month period of the first violation. The CS sets out the endorsement holder's responsibilities in regard to training and education programs. Evidence submitted in a suspension hearing on a license suspension must show that a written policy was adopted and enforced, employees were informed of state laws and penalties and training was conducted on state laws and compliance. Each employee is required to sign a form stating that they have been informed and understand the written policy adopted by the employer. The employer must determine that the employee has sufficient skills and experience to apply with the written policy in state law. Agents and employees must verify age before selling tobacco products and monitor the compliance of agents and employees of the written policy. The CS prohibits an employee younger than 19 years of age from selling tobacco products, since it is an age restricted product similar to alcohol. 8:55:14 AM Co-Chair Meyer MOVED to ADOPT Amendment #1. (Copy on File). To Page 11, after line 25, insert new Section: Ms. Cunningham explained that discussion on the fiscal notes noted that the Department of Revenue plans to use receipt supported services that are collected from the certification fees for self extinguishing cigarettes. Clarification language is needed in statute. A new paragraph was added under the definition of program receipts: (82) fees collected under AS 18.74.080. 8:56:39 AM There being NO OBJECTION, it was so ordered. Representative Gara WITHDREW Amendments 2 and 3. 8:58:28 AM Co-Chair Meyer questioned if concerns regarding due process have been resolved. DIANE CASTO, SECTION MANAGER, PREVENTION AND EARLY INTERVENTION SECTION, DIVISION OF BEHAVIOR HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES felt that the due process issue had been resolved. She noted that retailers are provided an opportunity for hearings and to if certain stnd criteria are laid out can have their 1 and 2 violations reduced by an administrative law judge. 8:58:47 AM Representative Gara was comfortable with the Department of Law's interpretation, but noted that the issue may be decided in the Alaska Supreme Court someday. 8:59:30 AM CINDY DRINKWATER, ASSISTANT ATTORNEY GENERAL, COMMERCIAL/FAIR BUSINESS SECTION, CIVIL DIVISION (ANCHORAGE), DEPARTMENT OF LAW, spoke to the rebuttalble presumption provision. The presumption is that citation, which resulted in a conviction, is proof of the underlying fact that the sale occurred. However, the endorsement holder can provide evidence that there was not a negligent sale of tobacco and if they overcame the presumption then they would not be subject to a suspension period. 9:03:52 AM Ms. Drinkwater explained that the employer was not negligent. The endorsement holder would put on that evidence. Co-Chair Chenault referred to a case in Fairbanks where a disgruntled employee sold tobacco products to a minor regardless of the safeguards of the employer. The employer's recourse under the bill would be a ten day suspension instead of a 20 day suspension. 9:05:48 AM Co-Chair Meyer noted that HB 187, which was introduced to address due process, was merged into CSSB 84 (FIN). Public testimony was previously taken on both bills. 9:07:04 AM Representative Hawker noted concern that the proposed amendments do not correct the constitutional deficiencies identified by the Court and suggested that the issue would be decided in the courts. 9:08:40 AM Representative Foster MOVED to REPORT HCS CS SB 87 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CS SB 84 (FIN) was reported out of Committee with a "" recommendation and with a new fiscal note by the Department of Health and Social Services, fiscal note #4 by the Department of Public Safety and a new fiscal note by the Department of Revenue. AT EASE: 9:09:28 AM RECONVENE: 9:11:02 AM Co-Chair Meyer clarified a new fiscal note from the Department of Revenue, dated 5/10/07, was attached to HCS CSSB 84 (FIN), which shows the receipt support services. HCS CSSB 84 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with a previously published fiscal impact note from the Department of Public Safety and two new fiscal notes: DHSS #5 and REV #6.