Legislature(2001 - 2002)

03/14/2001 03:20 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB  80-LEGAL HOURS FOR SALE OF ALCOHOL                                                                                        
                                                                                                                                
Number 1280                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI announced that the  committee would next consider                                                               
HOUSE BILL  NO. 80, "An  Act relating  to the hours  during which                                                               
sale of  alcohol and entry  on licensed premises is  allowed; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
Number 1261                                                                                                                     
                                                                                                                                
DAVID  STANCLIFF,  Staff  to Representative  Scott  Ogan,  Alaska                                                               
State Legislature, presented HB 80 on  behalf of the sponsor.  He                                                               
said  there had  been discussion  about making  the hours  in the                                                               
bill compatible with  those at the Municipality  of Anchorage and                                                               
other municipalities statewide to avoid  a conflict.  There was a                                                               
proposed committee substitute ("CS") drafted to accomplish this.                                                                
                                                                                                                                
Number 1190                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO made a motion  to adopt the proposed CS for                                                               
HB 80,  22-LS0290\C, Ford,  3/8/01, as the  work draft.   Without                                                               
opposition, it was adopted as the work draft.                                                                                   
                                                                                                                                
MR. STANCLIFF said there is a  lot of pressure on the legislature                                                               
to address  some of the problems  that come from alcohol.   There                                                               
are eight measures that have  been introduced [this session].  He                                                               
said Representative  Ogan feels  that it is  wise to  address and                                                               
prevent  problems with  more programs  and higher  taxes.   House                                                               
Bill 80 is  an effort to achieve that by  standardizing bar hours                                                               
throughout  the state.   Most  of the  major municipalities  have                                                               
done this, and it has been done nationally.  It works, he said.                                                                 
                                                                                                                                
Number 1127                                                                                                                     
                                                                                                                                
MR.  STANCLIFF  explained  that  when bars  start  closing  at  a                                                               
reasonable  hour,  there is  a  reduction  in the  problems  that                                                               
occur,  especially  on  our highways  and  in  bar  altercations.                                                               
Presently,  the Matanuska-Susitna  Borough  ("Mat-Su"), parts  of                                                               
the Kenai  [Borough], and  some of the  unorganized areas  of the                                                               
state  still have  the ability  to stay  open until  5 a.m.   The                                                               
legislature in the past has  established hours of closure between                                                               
5 [a.m.]  and 8  a.m.   In the proposed  CS, it  suggests closing                                                               
[bars] at 2 a.m. during the week, and 3 a.m. on the weekends.                                                                   
                                                                                                                                
MR. STANCLIFF said Representative  Ogan's research in riding with                                                               
the   troopers,  talking   to  law   enforcement  officers,   and                                                               
[expressed]  in   a  letter  from   the  Alaska   Peace  Officers                                                               
Association  unanimously  supports  this  legislation.    Driving                                                               
while intoxicated  (DWI) and problems  with the abuse  of alcohol                                                               
increase as the hours grow later.                                                                                               
                                                                                                                                
MR.  STANCLIFF commented  that in  the Mat-Su,  where [bars  are]                                                               
open  until 5  [a.m.],  there  is the  temptation  for people  to                                                               
migrate from  Anchorage to  the Mat-Su  and drink  until closure,                                                               
and  then head  back home.   He  recalled a  recent collision  in                                                               
which one driver  was heading home from a local  bar and collided                                                               
with  another driver;  they both  happened to  be drunk,  and one                                                               
driver  was actually  in  the northbound  lane  heading south  at                                                               
about 5 a.m.                                                                                                                    
                                                                                                                                
MR.  STANCLIFF explained  that  the City  of  Seward has  closure                                                               
hours that are pretty close to 2  a.m.  A bar just over that line                                                               
can stay open  [later] and people are encouraged  or persuaded to                                                               
go there.                                                                                                                       
                                                                                                                                
MR. STANCLIFF  said Representative Ogan  hopes this bill  will be                                                               
one that can be considered, and that  he had tried to hit an hour                                                               
range  that is  in line  with what  most of  the other  municipal                                                               
areas have done.  He mentioned  that there are a number of places                                                               
around the state that are "dry"  and don't sell alcohol in public                                                               
at all.   Representative Ogan  wanted to "throw [it]  out there,"                                                               
he said,  and have  the committee  consider if  it wouldn't  be a                                                               
step in  the right  direction to  try and  alleviate some  of the                                                               
problems so the industry and public don't continue to suffer.                                                                   
                                                                                                                                
Number 0937                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  asked if Representative Ogan  thinks [this                                                               
bill] is  in lieu  of doing  alcohol taxation  and so  forth, and                                                               
that simply  changing the hours  that alcohol is served  is going                                                               
to solve the problem in this state.                                                                                             
                                                                                                                                
MR.   STANCLIFF   responded   in  the   negative,   saying   that                                                               
[Representative  Ogan]  realizes that  this  is  going to  be  an                                                               
undertaking involving  more than just  this measure.   He relayed                                                               
that  Representative Ogan  believes that  this is  something that                                                               
has worked  in other places, that  most of the state  has adopted                                                               
it, that  it is good  policy, and that it  makes sense to  have a                                                               
standardized system throughout the state.                                                                                       
                                                                                                                                
REPRESENTATIVE  HALCRO  commented  that  this is  a  "good  first                                                               
step," and  mentioned some recent alcohol-related  accidents.  He                                                               
pointed out  that in going  through some of the  high-profile DWI                                                               
[cases],  they didn't  happen  at 2  or 3  in  the morning,  they                                                               
happened between 6 and 10 at night.                                                                                             
                                                                                                                                
REPRESENTATIVE HALCRO  said he was  a little concerned  about the                                                               
sponsor statement where  it says, "The industry  needs to support                                                               
this bill or  risk more stringent measures."  He  added that [the                                                               
state] needs more  stringent measures than just  changing the bar                                                               
hours.                                                                                                                          
                                                                                                                                
MR.  STANCLIFF said  he thought  Representative Ogan  would agree                                                               
with  that statement;  however,  Representative  Ogan feels  that                                                               
doing things that  have a positive outcome all add  up in time to                                                               
less reactive  measures that can  occur.  He  said Representative                                                               
Ogan  had stated  his bottom  line  [since he  was not  present],                                                               
which Mr. Stancliff put in writing.   It read:  "I will listen to                                                               
all of  the reasons why 18  hours of public drinking  time is not                                                               
enough, and what  good reasons there are to have  bars open later                                                               
than 2 a.m.  If I am persuaded, I will reconsider this bill."                                                                   
                                                                                                                                
Number 0774                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER   asked  Mr.  Stancliff  to   confirm  that                                                               
Representative Ogan also represents the Wasilla area.                                                                           
                                                                                                                                
MR. STANCLIFF responded that he represents a small portion.                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER  said  he admires  [Representative  Ogan's]                                                               
courage.   He  pointed  out  that there  was  a  letter from  the                                                               
Wasilla City  Council [in the  packet] opposing  the legislation.                                                               
He said  [the council's] argument  is that  it should be  a local                                                               
decision, not made by the state.                                                                                                
                                                                                                                                
MR. STANCLIFF responded that  Representative Ogan understands and                                                               
is a  big supporter of local  control; however, when a  person is                                                               
inebriated, he  or she doesn't  confine the problem to  the local                                                               
area.   The local areas collect  the revenue but don't  share all                                                               
of the expenses caused [by  that person], such as [added expenses                                                               
to]  state   troopers,  state  social  workers,   and  so  forth.                                                               
Representative Ogan feels  that even though that is  a strong and                                                               
persuasive argument, the costs are statewide.                                                                                   
                                                                                                                                
Number 0655                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER said [the Wasilla  City Council] opposed his                                                               
own bill that dealt with  the distance between bars and churches.                                                               
He said  he supports  this initiative  and that  these [proposed]                                                               
hours are plenty for being open.   He noted that Anchorage's bars                                                               
open at  10 a.m. and  that the bill has  [the bars] opening  at 8                                                               
a.m.,  which  he said  seems  early.   He  asked  if  that was  a                                                               
compromise, because other communities open at 8 a.m.                                                                            
                                                                                                                                
MR.  STANCLIFF replied  that the  opening hour  wasn't considered                                                               
[in the bill].  It is 8  a.m., he said, and communities can elect                                                               
to open later.                                                                                                                  
                                                                                                                                
REPRESENTATIVE MEYER  said the Anchorage Assembly  had "tinkered"                                                               
with the hours,  and what the assembly ended up  doing was to put                                                               
a restriction on  the bars that ignored the 3  a.m. closing time.                                                               
The [penalized  bars] would then  have to close  at 12 a.m.  or 1                                                               
a.m. as  a penalty.  The  assembly thought about making  the hour                                                               
12 a.m.,  but when Anchorage  went from 5  a.m. to 3  a.m., there                                                               
was a "rash" of after-hours clubs  opening up.  He explained that                                                               
these  cause a  lot of  expense and  other problems,  maybe worse                                                               
than the bars  staying open until 5 a.m., because  of the illegal                                                               
activities going on  such as gambling and prostitution.   He said                                                               
Anchorage still  has that  problem, but  the assembly  was afraid                                                               
that  by  going to  12  a.m.,  it would  just  become  more of  a                                                               
problem.  He asked if that was considered.                                                                                      
                                                                                                                                
Number 0540                                                                                                                     
                                                                                                                                
MR. STANCLIFF  said it was discussed  and it crops up  when hours                                                               
become fewer.  It  is a judgment call as to  when those hours are                                                               
set;  if they  are set  too  early, it  exacerbates the  problem,                                                               
which  is why  Representative  Ogan looked  at  matching up  with                                                               
Anchorage's  hours.   This is  a more  comfortable standard  than                                                               
what he had originally suggested.                                                                                               
                                                                                                                                
REPRESENTATIVE KOTT  commented that  he thinks  this is  a local-                                                               
option issue  to some extent.   He said he doesn't  think it will                                                               
make  much of  a difference,  no matter  when bars  are open  and                                                               
closed.   If  one is  trying  to stop  problems on  the road,  he                                                               
suggested  dropping [the  blood alcohol  concentration limit]  to                                                               
.04 and  being tough  on the  bar owners.   He said  these people                                                               
shouldn't be drinking in Anchorage  and then going out to Wasilla                                                               
and  drinking, because  the bar  owners  are to  ensure that  bar                                                               
staff  do not  serve anybody  that  looks inebriated,  and it  is                                                               
against  the law.   He  said he  doesn't think  changing the  bar                                                               
hours would  address the  problem, although it  might be  a small                                                               
step in the right direction.                                                                                                    
                                                                                                                                
Number 0384                                                                                                                     
                                                                                                                                
MR. STANCLIFF replied  that there is a lot of  debate around this                                                               
issue  and  Representative  Ogan  feels, based  on  what  he  has                                                               
learned from law  enforcement people and others, that  this is an                                                               
incremental step  in the right  direction.   If one or  two lives                                                               
are saved,  does that  make it worth  a sweeping  policy decision                                                               
"down  here," he  asked.   If people  soul-search a  little, they                                                               
would probably  respond that it  is reasonable.   This is  a tool                                                               
that  the committee  will have  if the  bill is  kept active  and                                                               
moves along, he added.                                                                                                          
                                                                                                                                
Number 0267                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  asked if there  was research  or statistical                                                               
data available  that reflects how  many of  [Alaska's] fatalities                                                               
due to alcohol have occurred between 3  and 5 in the morning.  He                                                               
said he didn't  know if this is really the  problem drinking time                                                               
when fatalities occur.                                                                                                          
                                                                                                                                
MR. STANCLIFF responded that he  didn't have hard data to present                                                               
today;  however, if  the committee  wanted  to see  that type  of                                                               
data, [his office]  would try to obtain it.   The fact that there                                                               
are fewer  cars on the highway  probably means that a  person can                                                               
weave around a bit more and get  away with it.  He said the peace                                                               
officers that he spoke with on  the Kenai Peninsula, and the ones                                                               
that Representative Ogan  spoke with, said that after  2 a.m., if                                                               
[the officers] elect to pull someone  over that has come out of a                                                               
bar, there is high likelihood that  a DWI will result; it is much                                                               
more likely  than at  10 p.m.  or midnight.   He said  the people                                                               
staying  after 2  a.m.,  quite  often, are  there  for the  wrong                                                               
reasons.                                                                                                                        
                                                                                                                                
Number 0032                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  said Alaska has a  tremendous problem with                                                               
alcohol, so  our numbers  might "pale"  in comparison  with other                                                               
states'.  He  asked if Mr. Stancliff had looked  at other states,                                                               
and what the most conservative bar-operating hours were.                                                                        
                                                                                                                                
MR.  STANCLIFF responded  that he  didn't know,  but that  he did                                                               
know that  there were  some states,  Utah being  one of  them ...                                                               
[ends mid-speech due to tape change].                                                                                           
                                                                                                                                
TAPE 01-33, SIDE A                                                                                                              
                                                                                                                                
REPRESENTATIVE  HALCRO  asked  if Representative  Ogan  would  be                                                               
amenable to  changes, because he thinks  opening a bar at  8 a.m.                                                               
is too early.                                                                                                                   
                                                                                                                                
MR. STANCLIFF replied  that Representative Ogan is  not trying to                                                               
penalize the  industry, those that serve  alcohol responsibly, or                                                               
those  that  drink  responsibly.     He  said  a  number  of  the                                                               
municipalities [open]  later than  8 a.m.,  so the  sponsor would                                                               
consider it, if it were the committee's desire.                                                                                 
                                                                                                                                
Number 0117                                                                                                                     
                                                                                                                                
MIKE  LOHMAN, Owner,  Wasilla Bar,  via  teleconference, said  in                                                               
1996  the City  of  Wasilla and  City of  Palmer  went through  a                                                               
similar proposal.   He said  a problem  must first be  defined to                                                               
propose  a  new  law.    He said  his  awareness  came  from  the                                                               
newspaper  article  addressing DWI  and  the  people coming  from                                                               
Anchorage  to  the  [Mat-Su]  valley  to  drink.    He  wrote  to                                                               
Representative Ogan and to some  Senators addressing his concerns                                                               
on January 29 [2001].                                                                                                           
                                                                                                                                
Number 0185                                                                                                                     
                                                                                                                                
MR. LOHMAN  remarked that on February  27, he sent a  petition to                                                               
Representative  Ogan with  over 1,500  signatures supporting  his                                                               
letter of  opposition.  Today,  he has another 500  signatures of                                                               
opposition to  send.   He hasn't  heard back  from Representative                                                               
Ogan,  but  had heard  from  Representative  Beverly [Masek]  and                                                               
Senator Rick Halford.                                                                                                           
                                                                                                                                
MR. LOHMAN said he was  upset that Representative Ogan would make                                                               
such  a proposal  without talking  to the  liquor establishments,                                                               
the  city council,  the  assembly,  or the  police  chief in  the                                                               
valley  for input.   Statements  of generality  without specifics                                                               
cause  people  to  react  with good  intentions,  but  with  poor                                                               
results, he remarked.                                                                                                           
                                                                                                                                
MR. LOHMAN  explained that DWIs  have been reduced from  the 1996                                                               
study  due  to  "our"  efforts with  good  working  relationships                                                               
between the  city, police department,  bar owners,  cab services,                                                               
and the community itself.  As  long as alcohol is available, DWIs                                                               
will occur  to some degree.   Most alcohol-related  accidents are                                                               
caused by repeat offenders who will  drive no matter what the bar                                                               
hours are.                                                                                                                      
                                                                                                                                
MR. LOHMAN remarked that he had  heard of DWI convictions as high                                                               
as 12  [for one  person.  He  asked: How can  this be?  And would                                                               
closing bars  at 2 a.m. change  this? He said there  is a problem                                                               
with the  system, and  it isn't  that the bars  are open  after 2                                                               
a.m.   Information gathered in  1996 from the retired  captain of                                                               
the  vice division  of the  Alaska Police  Department (APD)  show                                                               
that DWIs don't  change relative to bar hours, but  are a measure                                                               
of enforcement.   Mr. Loman  said he had some  disagreements with                                                               
what Representative  Ogan found,  from the  people he  had spoken                                                               
with.                                                                                                                           
                                                                                                                                
Number 0330                                                                                                                     
                                                                                                                                
MR. LOHMAN said  restricting hours creates new  problems.  After-                                                               
hours  clubs appear,  and there  are  quite a  few in  Anchorage.                                                               
Such  establishments give  away liquor,  and there  are gambling,                                                               
drugs, and  prostitution.  There  are rumors of an  upcoming club                                                               
in Wasilla,  just due to  the fact  that the paper  reported that                                                               
there is a bill being proposed to reduce [bar] operation hours.                                                                 
                                                                                                                                
MR. LOHMAN  asked an officer that  he knows quite well  why these                                                               
clubs are not  shut down; the officer said it  is very difficult,                                                               
there is  so much red tape,  and even when they  are [shut down],                                                               
it is  strictly a  misdemeanor and  [after-hour club  owners] can                                                               
open up the next day.  As  long as there isn't a major complaint,                                                               
the police essentially leave them alone.                                                                                        
                                                                                                                                
MR. LOHMAN pointed  out that no one takes  responsibility for the                                                               
amount  of  alcohol consumed  at  house  parties, at  after-hours                                                               
clubs, or in  parking lots.  Isn't it better  to have responsible                                                               
bar owners, he asked, and if  [bar owners] aren't, then deal with                                                               
them,  don't  make  across-the-board   laws  that  have  negative                                                               
consequences.  He said closing at  2 a.m. in Wasilla would create                                                               
cab  shortage  problems.    In  his  bar  at  2  a.m.  there  are                                                               
approximately 200 customers; the police  will not be able to keep                                                               
up with a mass exodus.                                                                                                          
                                                                                                                                
Number 0423                                                                                                                     
                                                                                                                                
MR. LOHMAN reminded the committee  that those people are going to                                                               
want to "slam down" their last  drinks just before last call at 2                                                               
a.m.   When this happens, [patrons]  will not always be  drunk as                                                               
they walk out the door, but  within five to ten minutes they will                                                               
be.   Drinking  after hours  in non-controlled  environments will                                                               
definitely  increase, he  said.   Closing  at 5  a.m. provides  a                                                               
wind-down period.   There are  cabs, and  the police can  keep up                                                               
with what is  actually occurring; the bar owners  can handle what                                                               
they have to control, which is  around 20 to 50 customers at 4:30                                                               
a.m.                                                                                                                            
                                                                                                                                
MR. LOHMAN  said there is also  the "people's rights issue."   He                                                               
said he  heard some  people laughing when  it was  commented that                                                               
people would  be in a bar  after 2 a.m.   He said "we"  don't all                                                               
work 40  hours a  week from  8 a.m.  to 5  p.m., and  people work                                                               
swing  and graveyard  shifts.   To  tell those  people that  they                                                               
can't stop in  the bar and have  a drink after 2 a.m.  is what he                                                               
characterized as  "socialistic at best."   As long as  [a person]                                                               
doesn't hurt someone else, and is  responsible for what he or she                                                               
does, there  is no reason  why he or she  can't have a  drink; if                                                               
that person causes a problem, he or she should be dealt with.                                                                   
                                                                                                                                
MR. LOHMAN  emphasized that  "we" don't need  to change  the law,                                                               
"we" need  to address  the offenders so  they can't  hurt someone                                                               
else.   It would be  too easy for us  to reduce bar  hours across                                                               
the state and  turn our heads from the real  problem of abuse, at                                                               
any hour.   He urged the  committee to leave the  decision of bar                                                               
hour closure  to local government.   He volunteered to work  on a                                                               
committee to evaluate problems associated with DWIs.                                                                            
                                                                                                                                
MR.  LOHMAN stated  that he  wouldn't be  opposed to  a mandatory                                                               
blood-alcohol-limit test  for every customer who  was planning on                                                               
driving.   He offered  to send  the committee  the letter  he had                                                               
sent  to  Representative Ogan,  with  or  without the  petitions.                                                               
There were other people who  wanted to testify today, he relayed,                                                               
but they didn't have time.   He commented that he found out today                                                               
that the committee could be addressed through written testimony.                                                                
                                                                                                                                
Number 0668                                                                                                                     
                                                                                                                                
REPRESENTATIVE   HALCRO  asked   Mr.  Lohman   where  the   1,500                                                               
signatures on the petition came from.                                                                                           
                                                                                                                                
MR.  LOHMAN said  it started  at his  bar and  went all  over the                                                               
valley  to  different  places.   He  verified  that  some  people                                                               
drinking in his bar were asked  to sign the petition.  When asked                                                               
if  he supports  an increase  in  the alcohol  tax, he  responded                                                               
affirmatively;  however,  the  numbers  look  "a  little  abusive                                                               
possibly,"  he commented.   And,  when asked  if he  supports the                                                               
efforts of  communities to have  jurisdiction to raise  their own                                                               
individual alcohol taxes, he responded affirmatively.                                                                           
                                                                                                                                
Number 0732                                                                                                                     
                                                                                                                                
MR. LOHMAN explained that he  would like to see local governments                                                               
be  able to  handle this.    He isn't  against controlling  drunk                                                               
driving, and  would support any  type of legislation to  stop it.                                                               
He pointed out  that there had been some  high-profile cases that                                                               
occurred, and [the accidents] did not  occur between 2 a.m. and 5                                                               
a.m.  He  said there have been some general  comments made, which                                                               
upset him,  that people leave  the valley at  5 a.m. and  head to                                                               
Anchorage, and  there are so  many drunk drivers that  people are                                                               
afraid  to drive.   He  said  if that  were the  case, the  state                                                               
patrol would be out there  with roadblocks catching those people,                                                               
because they are a "cash cow for the State of Alaska."                                                                          
                                                                                                                                
MR.  LOHMAN reminded  the committee  that when  people come  from                                                               
Anchorage  to drink  in  the [Mat-Su]  valley,  they forget  that                                                               
there  are more  people going  from the  valley to  Anchorage for                                                               
concerts, sporting events, and nightclubs.                                                                                      
                                                                                                                                
Number 0799                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT stated  that he  was  the one  who made  the                                                               
comments earlier that Mr. Lohman was  referring to.  He asked Mr.                                                               
Lohman if  there is an  impetus within  the industry to  create a                                                               
different level  of fine  for those bar  owners who  exceed their                                                               
authority in providing alcohol to patrons.                                                                                      
                                                                                                                                
MR. LOHMAN  responded affirmatively and  said he wouldn't  have a                                                               
problem with  that.  He  reiterated his earlier comment  that bar                                                               
staff  shouldn't  be  allowing  people to  drive  when  they  are                                                               
intoxicated.  He emphasized that  [there is a misconception] that                                                               
those driving  intoxicated are  all coming from  a bar,  but they                                                               
are missing the point.   He owns the Wasilla Bar  and goes out at                                                               
5 a.m.  with a garbage can  and picks up alcohol  containers from                                                               
the  parking lot  that people  throw  out [car]  windows.   Those                                                               
don't come out of  the bar, he said, and once  bars are closed at                                                               
2 a.m., people are going to  be anywhere they can stop and party.                                                               
He said  the assumption couldn't  be made that all  drunk drivers                                                               
come from a bar.                                                                                                                
                                                                                                                                
REPRESENTATIVE KOTT  said he is  not making that  assumption, and                                                               
that the bar owners he knows  are responsible and have an idea of                                                               
how much individuals drink at their bar.                                                                                        
                                                                                                                                
Number 0939                                                                                                                     
                                                                                                                                
MR.  LOHMAN  explained  that [bar  owners]  have  very  stringent                                                               
requirements.    He  couldn't  say  that no  one  has  ever  left                                                               
intoxicated because the  criteria [bar owners] are  given are not                                                               
black and  white; people can't  be forced to take  a breathalyzer                                                               
test, yet, if something like  this were mandatory, it would "take                                                               
the monkey  off our  back."   He said "we"  have to  make certain                                                               
that  people who  leave the  bar  can walk  straight, don't  have                                                               
slurred words, and can look straight ahead with their eyes.                                                                     
                                                                                                                                
MR.  LOHMAN  said  his  bar  turns away  people,  and  he  has  a                                                               
videotape to  monitor what is going  on.  The people  leaving his                                                               
establishment had better  be able to pass the test.   His bar has                                                               
an evening  bar check during  which the police officers  come in;                                                               
[his bar]  also calls them  if there is  a "situation."   He said                                                               
the  police  have been  dispatched  for  support, and  they  work                                                               
closely together.                                                                                                               
                                                                                                                                
Number 1026                                                                                                                     
                                                                                                                                
MR. LOHMAN, responding to a  question about the number of patrons                                                               
in his bar between 4:30 and 5 a.m.,  said it is between 20 and 50                                                               
[people].    On certain  occasions  like  New Year's  Eve,  there                                                               
probably are 200.   He pointed out that in  Wasilla there was not                                                               
one DWI on New Year's Eve, and normally there are 20 to 50.                                                                     
                                                                                                                                
REPRESENTATIVE HAYES  asked if the  [Wasilla] community  has ever                                                               
voted on  reducing the bar hours.   He also asked  how long local                                                               
officials are  elected for.   This is  a local-control  issue, he                                                               
said, and  his community  voted on it.   [Fairbanks's]  bars were                                                               
reduced to  a 3:30 a.m. [closure  time]; he said he  didn't agree                                                               
with that and doesn't agree with this.                                                                                          
                                                                                                                                
MR.  LOHMAN replied  that [elected  officials] are  elected every                                                               
three years.   It  was voted on  in 1996 in  Wasilla by  the city                                                               
council and was never up for a community vote.                                                                                  
                                                                                                                                
Number 1140                                                                                                                     
                                                                                                                                
JOAN DIAMOND,  Public Health Representative,  via teleconference,                                                               
said she  has been employed for  21 years in public  health.  She                                                               
spoke in  strong support of  the bill;  she is familiar  with the                                                               
data that  comes from  Anchorage in  particular, and  agrees with                                                               
what  Representative Ogan  brought forth  regarding the  problems                                                               
that occur when  one bar or package store closes  and another one                                                               
stays open later.                                                                                                               
                                                                                                                                
Number 1186                                                                                                                     
                                                                                                                                
MS.  DIAMOND  said  the  information   from  Nome  and  Fairbanks                                                               
indicates that  this is not  just a Southcentral problem,  but is                                                               
much bigger.  The other  important piece, she emphasized, is that                                                               
the legislature  is responsible for protecting  the public's best                                                               
interest; the responsibility  is to the public and  to the public                                                               
roadways,    including   decreasing    the   drinking-and-driving                                                               
disabilities.                                                                                                                   
                                                                                                                                
MS.  DIAMOND referred  to  when  the bar  hours  were reduced  in                                                               
Anchorage, and said  there was a substantial  difference from the                                                               
emergency  room [perspective],  where  she was  a  nurse at  that                                                               
time.                                                                                                                           
                                                                                                                                
Number 1256                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  mentioned that  Ms. Diamond had  done some                                                               
fairly  substantial  work  on  alcohol and  its  effects  on  the                                                               
community.   He asked if there  had been any studies  done on the                                                               
migration of those out drinking.                                                                                                
                                                                                                                                
MS. DIAMOND responded that she didn't have any at her disposal.                                                                 
                                                                                                                                
MARTI GREESON, Executive Director,  Mothers Against Drunk Driving                                                               
(MADD),  via  teleconference,  thanked  Representative  Ogan  for                                                               
introducing a very common-sense bill.   Over the past five years,                                                               
she said,  Alaska has  ranked no less  than third-highest  in our                                                               
nation for the percentage of traffic deaths caused by alcohol.                                                                  
                                                                                                                                
MS. GREESON  said this is  one piece of  action that needs  to be                                                               
taken  to make  a difference  in  the devastation  that is  being                                                               
wreaked upon  [Alaska].  Locally  and nationally,  MADD advocates                                                               
setting uniform  statewide cutoff limits  on the sale  of alcohol                                                               
beverages in  order to  end the practice  of bar-hopping  to find                                                               
establishments closing  later, in order  to have one  more drink,                                                               
with the likelihood of impaired driving as a result.                                                                            
                                                                                                                                
Number 1349                                                                                                                     
                                                                                                                                
MS. GREESON  remarked that the  8 a.m. opening hour  indicates to                                                               
her  that there  is a  problem  around alcohol  and that,  sadly,                                                               
[Alaska] has  a lot of  individuals who are not  responsible with                                                               
alcohol consumption and  [subsequent] behavior.  She  said she is                                                               
in support of standardized hours.                                                                                               
                                                                                                                                
REPRESENTATIVE HALCRO referred to the  fiscal note and said [this                                                               
legislation] would have  a fiscal effect on the ABC  Board and on                                                               
the  officers that  go out  and patrol.   He  asked Mr.  Griffin,                                                               
since there  is a zero fiscal  note, what the actual  fiscal note                                                               
could be.                                                                                                                       
                                                                                                                                
DOUG  GRIFFIN,  Director,  Alcohol Beverage  Control  Board  (ABC                                                               
Board), via  teleconference, said it  is a question of  the level                                                               
of enforcement.  [The ABC Board]  put a zero fiscal note on there                                                               
because  "we" are  spread so  thin  now that  having shorter  bar                                                               
hours wouldn't really make a difference.   "We" could do a little                                                               
more enforcement in [bar] hours,  he said, which the language [in                                                               
the fiscal note] alluded to.                                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO  referred to  Mr. Lohman's  testimony about                                                               
the gray area  regarding regulations and standards  that apply to                                                               
servers.   He asked if  there is  the possibility of  clearing up                                                               
some  of those  regulations and  making the  server-training more                                                               
effective if this bill doesn't go anywhere.                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  indicated that there is  a Techniques of                                                               
Alcohol Management (TAM) bill [coming up].                                                                                      
                                                                                                                                
Number 1504                                                                                                                     
                                                                                                                                
MR. GRIFFIN  replied that the  standard is different and  the law                                                               
talks about  not serving a "drunken  person."  [Bar staff]  go by                                                               
physical signs, and this is not the  same as a .10 or .08 or some                                                               
kind of blood-alcohol  [test], because a server in  a bar doesn't                                                               
have  sophisticated  equipment to  measure  blood  alcohol.   The                                                               
visual  signs are  taught  in the  [TAM] training,  but  it is  a                                                               
different  standard  from what  is  used  for driving  under  the                                                               
influence.   He said not everyone  in a bar drinking  is going to                                                               
drive, so service  people take that into account,  knowing that a                                                               
person has another  way home, a designated driver,  and so forth.                                                               
Determining whether someone is drunk is somewhat subjective.                                                                    
                                                                                                                                
MR. GRIFFIN  stated that alcohol  training is good and  he thinks                                                               
it can  be improved; it has  made a difference and  can be worked                                                               
on to  get people thinking  of a bar  as a social  setting rather                                                               
than a place where  a legal drug is dispensed.   He said "we" are                                                               
going  to  start, as  violations  happen  for "over-service"  and                                                               
service to  underage people, tracking  the type of  training that                                                               
the person  involved with  the infraction had  so "we"  can start                                                               
having  some standards  and accountability  for the  training out                                                               
there.   He said "we" are  going to start looking  at the quality                                                               
of alcohol-server-training programs.                                                                                            
                                                                                                                                
Number 1664                                                                                                                     
                                                                                                                                
MR.  GRIFFIN,  responding  to  a question  about  the  number  of                                                               
investigators in the Anchorage area,  answered two.  He said less                                                               
than half  of a position  is dedicated  to making sure  that bars                                                               
close at  the appropriate time.   He said "we" don't  spend a lot                                                               
of time doing  it; much of the enforcement is  reactive, based on                                                               
a  complaint.    He  said  "we"  rely  on  the  Anchorage  Police                                                               
Department to do that type of legwork.                                                                                          
                                                                                                                                
MR. GRIFFIN,  when asked if a  bar owner can serve  more than one                                                               
drink at  a time, responded  that he or she  can serve two,  or a                                                               
double, or a mixed drink that has two shots in it.                                                                              
                                                                                                                                
CINDY  CASHEN,  Member,  Mothers  Against  Drunk  Drivers  (MADD)                                                               
Juneau Chapter, said  she is also a victim of  drunk driving.  On                                                               
April  19, her  father Ladd  Macauley, and  Martin Richards  were                                                               
killed on the  Kenai highway.  She  thanked Representative Ogan's                                                               
office for  introducing the  bill, and  said [MADD]  in Anchorage                                                               
endorses the bill.                                                                                                              
                                                                                                                                
MS. CASHEN said she, too, would  like to see a local municipality                                                               
be able to do this; however,  they haven't and aren't going to do                                                               
this.  She said in  representing the victims across Alaska, those                                                               
who can no longer speak because  they have been killed by a drunk                                                               
driver, and as  a victim who lost a family  member and loved one,                                                               
she would like to see the  legislature "step up to the plate" and                                                               
say this  isn't right  and "we"  are going to  protect you.   She                                                               
added that  she is  a recovering  alcoholic, and  when she  was a                                                               
practicing alcoholic,  "we" went bar-hopping and  drove - nothing                                                               
was going to stop  them.  She said she has  friends who are still                                                               
practicing [alcoholics] and still bar-hop.   They do it in Juneau                                                               
when there  is a bar  that is open  15 minutes longer;  they will                                                               
stand in  line in a  liquor store that  is open 5  minutes later,                                                               
she remarked.                                                                                                                   
                                                                                                                                
Number 1827                                                                                                                     
                                                                                                                                
MS.  CASHEN  said understanding  the  alcoholic  mind is  a  real                                                               
mystery, but  a person will do  anything.  If that  means getting                                                               
in  a car  and driving  20 to  40 miles  [for a  drink], that  is                                                               
normal;  however, to  a non-alcoholic  mind, that  is not.   That                                                               
will  continue to  happen and  lives will  be lost  if this  bill                                                               
doesn't pass.                                                                                                                   
                                                                                                                                
REPRESENTATIVE HAYES  said he is at  a loss because it  sounds as                                                               
if whether the bars are open till  5 a.m. or 3 a.m., Ms. Cashen's                                                               
friends are still doing the same  activities.  He said to him, he                                                               
doesn't think that the bar hours  are the problem.  It involves a                                                               
bigger issue.  He said  he understands the alcoholic mind because                                                               
he has some family members who are alcoholics.                                                                                  
                                                                                                                                
Number 1911                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HAYES commented  that the  bars used  to be  open                                                               
until 5 a.m.  in Fairbanks, and said he had  closed the bars, but                                                               
was not drinking.  There are  other factors.  The local community                                                               
has  officials  elected  to  reflect  the  views  of  that  local                                                               
community, he  pointed out, and  he has  a hard time  taking away                                                               
that local  control.  In Fairbanks,  this issue was voted  on and                                                               
the bar hours were restricted to  3:30 a.m., but the community as                                                               
a whole had to vote on it.                                                                                                      
                                                                                                                                
MS. CASHEN  agreed with  Representative Hayes  and said  she sees                                                               
his  point;  however,  there  is a  big  difference  between  the                                                               
chronic drunk drinking until 5 a.m.  or drinking until 2 a.m.  It                                                               
is less alcohol  consumed, and the chances of  drunk driving will                                                               
go down.   Mothers  Against Drunk Drivers  doesn't come  out with                                                               
public policy  statements without  a lot  of investigation.   She                                                               
said she would  be more than happy to provide  the committee with                                                               
studies to back this up.   She remarked that it sounds nice being                                                               
able to  dance until 5  a.m., but quite a  few people who  are in                                                               
the bars between 2 and 5 a.m. are going to try to drive home.                                                                   
                                                                                                                                
Number 1986                                                                                                                     
                                                                                                                                
CHAIR  MURKOWSKI asked  Ms. Cashen  to  provide what  statistical                                                               
information she has to the committee.                                                                                           
                                                                                                                                
REPRESENTATIVE HALCRO asked Ms.  Cashen why she feels communities                                                               
haven't responded.                                                                                                              
                                                                                                                                
MS. CASHEN replied  that as with most issues, the  bottom line is                                                               
money.   She surmised that [bar  owners] feel that they  can make                                                               
more money staying open longer.                                                                                                 
                                                                                                                                
REPRESENTATIVE  MEYER  reverted back  to  the  discussion of  the                                                               
problems with  after-hour clubs in  Anchorage.  He said  they are                                                               
hard to bust and  people have a secret code to get  in.  At least                                                               
in a  bar there  is some control  before a person  gets out  in a                                                               
car; in  the after-hours clubs, no  one cares.  He  said that was                                                               
probably  the  main  reason,  when  he  was  on  the  [Anchorage]                                                               
Assembly, that  "we" didn't  change the hours  even more,  from 3                                                               
a.m. to 1 a.m.   He asked if MADD has  considered the effect that                                                               
after-hours  clubs  could have  if  the  bars start  closing  too                                                               
early.                                                                                                                          
                                                                                                                                
Number 2092                                                                                                                     
                                                                                                                                
MS. CASHEN  said she knows  of one [after-hours club]  in Juneau,                                                               
and  [MADD] is  planning on  contacting the  person to  see about                                                               
working with  them to turn  it into a good  thing.  She  said all                                                               
she  sees here  is a  good thing,  and the  bottom line  [of this                                                               
bill]  is that  it  will save  lives.   Recently  there were  six                                                               
people hit,  four of them  killed, up  on the Chena  Highway near                                                               
Fairbanks  around 5  a.m.  this past  summer.   Bar-hopping  does                                                               
happen, she remarked,  and if this crash didn't  occur because of                                                               
if it, there will be [some] others.                                                                                             
                                                                                                                                
MS.  CASHEN concluded  by saying  this  bill sends  a message  to                                                               
victims  across the  state.   She cautioned  that it  would break                                                               
victim's hearts again if the bill were not to pass.                                                                             
                                                                                                                                
Number 2147                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MEYER said  he doesn't  disagree with  Ms. Cashen                                                               
because he  knows when he used  to frequent the bars,  as long as                                                               
they were  open, he was going  to keep drinking.   Luckily, where                                                               
he  lived they  closed at  1 a.m.   He  said for  the responsible                                                               
drinker, this is a good law because  it is going to say "you have                                                               
to stop and go home."   For the hard-core alcoholic, however, who                                                               
drinks uncontrollably  and is going  to drive and  hurt somebody,                                                               
he isn't sure this is going to stop  him or her.  An alcoholic is                                                               
going  to go  to any  extreme  to get  [alcohol], be  it from  an                                                               
after-hours club, a friend's house, or so forth.                                                                                
                                                                                                                                
Number 2206                                                                                                                     
                                                                                                                                
MS. CASHEN  agreed and  said MADD  agrees.   Nothing is  going to                                                               
stop  the chronic  drunk driver  from drinking  and driving,  but                                                               
"we" can  do our best to  prevent it.  Nationally,  80 percent of                                                               
the drunk drivers  are first-time offenders, she said.   A lot of                                                               
them make  this mistake,  but unfortunately a  lot of  them still                                                               
kill.   "We" are  not dealing  with the  chronic drunk  driver in                                                               
this situation  insomuch as sending  a message that  drinking and                                                               
driving isn't acceptable, and that bar-hopping needs to stop.                                                                   
                                                                                                                                
REPRESENTATIVE  KOTT  asked  if  MADD  has  statistical  research                                                               
showing the number of  drunk-driving-related fatalities between 3                                                               
and 5 a.m.  He also asked  if there is any further data available                                                               
that would  suggest that bar  owners were prosecuted  for serving                                                               
that person to the extent that he  or she was over the limit.  He                                                               
wondered if "we"  are tackling the problem at the  right end.  He                                                               
asked Ms.  Cashen, if [the  legislature] could pass any  piece of                                                               
legislation dealing  with DWI, whether  it would be this  bill or                                                               
one lowering  the blood alcohol  level to  .04.  He  suggested if                                                               
the  goal is  to  get people  off the  road,  [the blood  alcohol                                                               
concentration limit] should be lowered to .04 or .02 instead.                                                                   
                                                                                                                                
Number 2276                                                                                                                     
                                                                                                                                
MS. CASHEN responded that it is  a small piece of the puzzle, but                                                               
if it  saves one life,  it is worth  it.   She said she  has seen                                                               
statistics  - not  from  MADD, but  from the  state  - about  the                                                               
number of  crashes occurring  at certain  hours across  the state                                                               
and on  days of the  week, which will back  up a reason  for this                                                               
bill.   [Alaska] is an "alcoholic  state," and there is  a lot of                                                               
alcohol  abuse  going  on,  much  of which  comes  out  in  drunk                                                               
driving.  She  said this is done in other  states, which wouldn't                                                               
pass this law if it didn't [work].                                                                                              
                                                                                                                                
Number 2330                                                                                                                     
                                                                                                                                
MATT FELIX,  Director, National Council Alcoholism  (NCA), Juneau                                                               
Chapter,  said the  NCA  has over  200  chapters nationwide;  the                                                               
Juneau Chapter  was established in  1964.  This is  his thirtieth                                                               
year in the field of alcohol  and drug abuse, eight of which were                                                               
spent  as the  state division  director.   He said  he is  fairly                                                               
familiar with the  alcoholism situation in the state,  as well as                                                               
the government statutes,  Title 4, and the  dispensation and sale                                                               
[of alcohol].                                                                                                                   
                                                                                                                                
MR. FELIX  explained that  this is  a "slice of  the pie,"  not a                                                               
"silver bullet."   He  said there has  been talk  about comparing                                                               
slices and  which one  is the  best in  terms of  doing something                                                               
about drunk  driving and  alcoholism in  Alaska.   He said  it is                                                               
going to take a  package of bills to solve or  at least turn this                                                               
problem around.   He  said there  is data  showing that  the less                                                               
accessible alcohol is, the fewer problems there are.                                                                            
                                                                                                                                
MR.  FELIX relayed  that  there is  a lot  of  data showing  that                                                               
continuous drinking  and having access  to alcohol over  a longer                                                               
period of time  increases the amount of felonies in  a given area                                                               
[such  as domestic  violence].   About 65  to 70  percent of  the                                                               
felonies  in our  prison system  today are  alcohol-related.   He                                                               
explained that there is a  greater percentage of people in prison                                                               
on alcohol-related felonies in our state than in any other.                                                                     
                                                                                                                                
Number 2443                                                                                                                     
                                                                                                                                
MR. FELIX said this is "deja vous"  for him; he came to the state                                                               
in  the  1970s  to  head  the department  of  health  and  social                                                               
services  with the  city [of  Juneau].   The first  month he  was                                                               
here, at  3 a.m., a  man ran into a  boat on Egan  Expressway and                                                               
killed  an individual.   All  four  of the  participants in  that                                                               
accident were intoxicated  over the legal limit.   A month later,                                                               
in 1977,  an individual drank to  the "wee hours of  the morning"                                                               
and at 5 a.m.  went home and shot his wife and  two children.  He                                                               
said it started a process in  Juneau of looking at heavy drinking                                                               
and late  bar hours, and the  response over a period  of three or                                                               
four years  was to [change]  bar hours;  presently, it is  1 a.m.                                                               
during the week, and 3 a.m. on  the weekends, he said.  "We" feel                                                               
that it  made a great deal  of difference, and the  police chief,                                                               
after a year of the bar  hours [being reduced], moved one officer                                                               
from the  late-night shift  to the day  shift because  the change                                                               
had made such a difference.                                                                                                     
                                                                                                                                
Number 2467                                                                                                                     
                                                                                                                                
MR. FELIX  pointed out  that alcohol  is so  cheap in  this state                                                               
that it is ridiculous, cheaper than  soda and milk by volume.  He                                                               
said  there  is  a  .08  [blood-alcohol  limit  bill]  for  drunk                                                               
driving, and  there are a lot  of bills [this session].   This is                                                               
wonderful  seeing   some  response   from  the   legislature,  he                                                               
remarked.                                                                                                                       
                                                                                                                                
TAPE 01-33, SIDE B                                                                                                              
Number 2460                                                                                                                     
                                                                                                                                
MR. FELIX  said he teaches a  class at the university  on alcohol                                                               
abuse and its  history in the state.   In at least  the first ten                                                               
years of statehood,  the Title 4 statutes  were undermined; there                                                               
are loose laws and a lack  of governing of sales of dispensation.                                                               
For example, there  are a lot of intoxicated  people being served                                                               
in  both  bars and  liquor  stores.    He  pointed out  that  Ms.                                                               
Cashen's father was  killed by a man who staggered  into a liquor                                                               
store.  This happens because there is no enforcement.                                                                           
                                                                                                                                
MR. FELIX commented  that the ABC Board is down  to three or four                                                               
statewide  enforcement officers,  and they  don't concentrate  on                                                               
that part,  so there  is a  lack of  enforcement.   He said  in a                                                               
community the size  [of Juneau], where a lot of  the sales tax or                                                               
tax income  to the local  government comes  from both on  and off                                                               
[premises]  sales,  Title 4  won't  be  aggressively enforced  to                                                               
restrict the sale [of alcohol].                                                                                                 
                                                                                                                                
MR.  FELIX said  there  are  a lot  of  things historically  that                                                               
promote drinking in this state  or at least allow heavy drinking.                                                               
Some of the  bills presented this year are trying  to patch those                                                               
holes, and he thinks [HB 80] is just one of them.                                                                               
                                                                                                                                
Number 2401                                                                                                                     
                                                                                                                                
MR. FELIX  referred to an earlier  question.  He stated  that the                                                               
only piece  of data he knows  about that addresses late  hours is                                                               
that there are  "a heck of a lot more"  arrests for drunk driving                                                               
during those  late hours in this  state than in others.   He said                                                               
he couldn't  think of  any other state  where drunks  are running                                                               
into  each  other and  killing  each  other  in the  late  hours.                                                               
Statistically,  it takes  200  drunk-driving  occurrences to  get                                                               
caught once,  but in  this state drunk  drivers are  running into                                                               
one  another.   He  said  he doesn't  know  what the  statistical                                                               
chances  are  of that  happening,  but  it  has  to be  into  the                                                               
thousands.                                                                                                                      
                                                                                                                                
MR. FELIX  stated that bar hours  are an important piece  of this                                                               
package,   and  he   encouraged  the   committee  to   move  [the                                                               
legislation] forward.                                                                                                           
                                                                                                                                
REPRESENTATIVE HAYES said it still  boils down to, "Juneau made a                                                               
choice, Juneau decided that 'we'  have a problem in our community                                                               
and  as  a  community,  your  local  officials  dealt  with  it."                                                               
Fairbanks voted on it as a  community to deal with it.  Anchorage                                                               
had  a problem  and it  was  dealt with.    It is  not the  state                                                               
legislature's  job to  micromanage  a local  community, which  is                                                               
what local officials are elected for.                                                                                           
                                                                                                                                
Number 2334                                                                                                                     
                                                                                                                                
MR. FELIX said he would agree  on most issues, but not on alcohol                                                               
sales  and  abuse  issues.    [Alaska]  has  such  an  outrageous                                                               
situation,  and the  communities  are small  and very  political.                                                               
[Communities]  don't have  the ability  to politically  move this                                                               
kind  of legislation  forward.   He pointed  out that  Juneau had                                                               
that  ability,  but  doesn't have  the  political  initiative  to                                                               
enforce Title  4, which refers  to the sale and  dispensation [of                                                               
alcohol].                                                                                                                       
                                                                                                                                
MR.  FELIX explained  that [Alaska]  is  the only  state that  he                                                               
knows of  - and he has  testified before Congress on  this - that                                                               
abrogates  this particular  responsibility to  local communities.                                                               
It is  an ABC  and state  obligation.  At  least 48  other states                                                               
have realized  that the  potential for  injury caused  by alcohol                                                               
sales and  abuse is so  important that the  state took it  on and                                                               
backed  the  enforcement,  and substantiated  the  statutes  that                                                               
regulate it.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO  said in growing  up in Alaska,  alcohol is                                                               
kind of  part of the  Alaskan "aura."   He mentioned  some famous                                                               
Alaskan  bars.   He  said  it has  been  part  of Alaska's  brief                                                               
history and culture,  more of an attitude up here.   He asked Mr.                                                               
Felix if  people feel that the  effects of alcohol are  just part                                                               
of the Alaskan [experience].                                                                                                    
                                                                                                                                
Number 2254                                                                                                                     
                                                                                                                                
MR.  FELIX  responded "absolutely."    The  frontier attitude  in                                                               
Alaska is  one of the  major factors to  Alaskans' overindulgence                                                               
and the consequences resulting from  that.  He said that attitude                                                               
came and  is substantiated by  our lack of doing  something about                                                               
the problem over  the years as a state.   Historically, "we" made                                                               
some big  mistakes and are going  to live with them  for a number                                                               
of years  around this  problem.  When  [Alaska] was  a territory,                                                               
the  federal government  issued a  tremendous number  of [liquor]                                                               
licenses, and  when [Alaska] became  a state,  "we" grandfathered                                                               
those  licenses  in during  the  first  10  to  15 years  of  our                                                               
history.  "We"  passed licenses out at a very  rapid rate, and at                                                               
relatively no cost.                                                                                                             
                                                                                                                                
MR.  FELIX  said  [Alaska]  has an  overabundance  of  sales  and                                                               
accessibility, and  an extremely  strong liquor lobby  during the                                                               
first  20 years  of the  state's history,  keeping the  price low                                                               
through the lack of taxation.   The four main distributors out of                                                               
Seattle take hundreds  of millions of dollars out  of this state,                                                               
selling by volume,  not by cost.  [Consequently,  Alaska] is left                                                               
with the problems.                                                                                                              
                                                                                                                                
Number 2229                                                                                                                     
                                                                                                                                
MR. FELIX  stated that our statutes,  attitudes, and mistreatment                                                               
of this problem over the years have allowed it.                                                                                 
                                                                                                                                
REPRESENTATIVE  HALCRO  commented  that   he  believes  in  local                                                               
control,  but  the state  has  not  put enough  resources  behind                                                               
enforcement.   He referred to  the ABC  Board and said  there are                                                               
two  inspectors  in  Anchorage  and  three  inspectors  statewide                                                               
[overseeing] 1,400 liquor licenses.   He asked how liquor laws in                                                               
this  state can  be enforced  if  there are  [only] three  people                                                               
tasked  with doing  the job.    He said  it is  impossible.   The                                                               
approach  needs to  be comprehensive,  and this  [legislation] is                                                               
part  of the  puzzle, unless  the state  wants to  get tough  and                                                               
start funding additional enforcement officers.                                                                                  
                                                                                                                                
Number 2146                                                                                                                     
                                                                                                                                
MR. FELIX agreed  and said enforcement is  prevention; when there                                                               
is proper enforcement in any given  area, there is a reduction in                                                               
drunk driving,  domestic violence, and  alcohol-related felonies.                                                               
There is a neutered ABC  enforcement [Board] in this state, which                                                               
was done over a long period  of time.  Without enforcement at the                                                               
state  level  and  without the  political  involvement  of  local                                                               
politics, there  is a situation in  which if a person  owns a bar                                                               
or liquor  store, the chances  of that person getting  caught for                                                               
selling to underage kids are  probably "nil." Therefore, a person                                                               
will take that chance, because it is profitable.                                                                                
                                                                                                                                
MR.  FELIX said  one  of  the [ABC  Board]  officers was  finally                                                               
placed in  Southeast Alaska.  In  one night, this person  went to                                                               
13 liquor stores and made 13  arrests.  This says that those bars                                                               
and  liquor stores  have been  serving after  hours, and  serving                                                               
kids for a long period of time, lacking the enforcement.                                                                        
                                                                                                                                
Number 2066                                                                                                                     
                                                                                                                                
MR.  FELIX  explained that  the  state  addressed the  problem  a                                                               
number of years ago by saying,  "Well, if we're not going to fund                                                               
enforcement at the state level,  let's give the cities some money                                                               
and  ...  demand that  they  enforce  these  laws." He  said  the                                                               
wholesale liquor-license  fees come  to about  $2 million  a year                                                               
and are now  funneled to each incorporated  municipality with the                                                               
explicit  purpose of  enforcing Title  4.   Those fees  get mixed                                                               
with  other  kinds of  revenue-sharing  fees,  go into  the  city                                                               
coffers, go to  the police departments, and  disappear.  Everyone                                                               
has  forgotten  over the  years  that  this  money was  for  that                                                               
purpose;  [the money]  has become  expected  and is  part of  the                                                               
local police department's budget.   The obligations tied to those                                                               
fees are not followed through on.                                                                                               
                                                                                                                                
MR. FELIX commented  that Juneau gets $65,000 [a  year], which is                                                               
one  full-time employee  (FTE), and  Anchorage gets  a couple  of                                                               
hundred  thousand  [dollars], based  on  population.   The  state                                                               
tried for  a while  to enforce  this, but  it undermined  the ABC                                                               
[Board] by  lack of  funding for enforcement  officers.   He said                                                               
they then  tried to "end-run"  to fund local  governments through                                                               
revenue-sharing by  funding the  wholesale license fees  to them;                                                               
this, too, was undermined over time.                                                                                            
                                                                                                                                
REPRESENTATIVE  HALCRO  said it  seems  that  when reading  about                                                               
crackdowns or  undercover sting  operations, usually  the funding                                                               
source is from a grant from  the [U.S.] Department of Justice; it                                                               
doesn't have anything to do with state and local money.                                                                         
                                                                                                                                
Number 2019                                                                                                                     
                                                                                                                                
MR. FELIX commented  that "we" pay them twice for  doing the same                                                               
job.  He  urged the committee to understand that  this bill is an                                                               
integral part  of a  package; it  will probably  take a  lot more                                                               
legislation  this year,  and "we"  can  "straighten this  problem                                                               
out."   He said [Alaska]  by far  has the most  hideous situation                                                               
around  alcohol  of any  state,  which  he had  testified  before                                                               
Congress about;  he was flown  back to Washington,  D.C., because                                                               
they couldn't  understand what was  happening up here.   The per-                                                               
capita consumption is  off the chart, and the  U.S. Senate Health                                                               
Committee couldn't  believe that a [state's  population] could be                                                               
drinking this  much: 514 drinks  for every man, woman,  and child                                                               
in  this state  a year.   Alaskans  drink a  gallon more  of pure                                                               
alcohol, [per capita],  than the national average.   He said "we"                                                               
know it's  true because "we"  tax it,  and almost every  ounce is                                                               
watched.                                                                                                                        
                                                                                                                                
Number 1937                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT  said  the  way the  statutes  are  written,                                                               
outside of  the hours of  5 and 8  a.m., many of  the communities                                                               
around  the  state  have implemented  their  own  ordinances  and                                                               
restrict that  even further.   He said his understanding  of this                                                               
bill, as it  relates to Juneau and Anchorage, means  that it does                                                               
nothing; he asked Mr. Felix if that was correct.                                                                                
                                                                                                                                
MR. FELIX responded affirmatively.                                                                                              
                                                                                                                                
REPRESENTATIVE KOTT  said as  he looks through  the list  [on the                                                               
handout],  there are  not  too many  communities  that this  bill                                                               
really would  affect.  He  submitted that those  communities that                                                               
have restricted  hours of operation  for serving  liquor wouldn't                                                               
go  the other  direction.    He said  perhaps  it  would be  more                                                               
effective to  place some restriction  on establishments  that are                                                               
not  bars, for  them to  close  earlier than  bars.   He said  he                                                               
foresees that some  of the problems are with people  who come out                                                               
of a bar,  then go to a  package store and buy liquor.   If those                                                               
establishments were closed  one hour prior to the  bars, it would                                                               
be a much better approach to the problem.                                                                                       
                                                                                                                                
Number 1843                                                                                                                     
                                                                                                                                
MR.  FELIX responded  that  it  is a  suggestion  that he  hadn't                                                               
thought  about in  a while;  it addresses  the same  problem that                                                               
this   bill  addresses,   which  is   the  relationship   between                                                               
availability and the  problems it presents.   Most research shows                                                               
that price  and availability  are the two  major factors  in per-                                                               
capita consumption.   He said [Alaska] has the  cheapest and most                                                               
available alcohol in the United States.                                                                                         
                                                                                                                                
REPRESENTATIVE  KOTT said  he thought  [the legislature]  had the                                                               
same  debate  about price  and  availability  during the  tobacco                                                               
issue, and  that [Alaska] is now  number three in the  nation for                                                               
per-capita  consumption,  even  after   the  price  was  adjusted                                                               
upwards.                                                                                                                        
                                                                                                                                
MR. FELIX pointed out that  [Alaska] dropped 17 percent among the                                                               
"price-sensitive groups, the fixed income,  elderly, and the teen                                                               
group," in the use of nicotine  the first year after the tax [was                                                               
implemented], and has stayed down in those groups.                                                                              
                                                                                                                                
Number 1775                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEYER  asked for clarification that  the ABC Board                                                               
does not have any enforcement power.                                                                                            
                                                                                                                                
MR. FELIX said, "Oh, yes."                                                                                                      
                                                                                                                                
REPRESENTATIVE MEYER  explained his  understanding that  [the ABC                                                               
Board] could issue a notice of  violation, but needed to have the                                                               
police go with  them to actually arrest somebody.   He asked what                                                               
the powers of the ABC Board are.                                                                                                
                                                                                                                                
Number 1758                                                                                                                     
                                                                                                                                
MR. FELIX said  [the powers] are outlined in Title  4, which is a                                                               
set  of statutes  just  for the  regulation  and dispensation  of                                                               
alcohol.    He  said  [the  ABC Board]  is  limited  in  actually                                                               
arresting and taking someone out of the bar.                                                                                    
                                                                                                                                
REPRESENTATIVE  MEYER  said  the Anchorage  Assembly  found  that                                                               
there were bars  that would stay open past 3  [a.m.], and the ABC                                                               
Board would  write a  notice of violation;  and when  the license                                                               
came  up  for renewal  every  two  years,  "we" would  see  these                                                               
notices of  violation.  He said  "we" would see what  the problem                                                               
was and  try to deal with  it with the establishment  rather than                                                               
[enacting] a law to penalize all  bars.  He added that 99 percent                                                               
of bars  were doing  the right  thing.  He  said those  that were                                                               
trying to  stay open past  3 a.m. would  be required to  close an                                                               
hour earlier, which "we" found  to be very effective because they                                                               
were being  hit in the pocketbook  and it gave them  an incentive                                                               
to abide by the  law.  He said some of them  actually went out of                                                               
business, which is  favorable because "you want the  bad ones out                                                               
of business, and [want to] keep the good ones in business."                                                                     
                                                                                                                                
REPRESENTATIVE MEYER said this, then,  gets back to a local issue                                                               
rather than  a state law.   He said  "we" cannot have  enough ABC                                                               
Board folks to deal with all of the issues.                                                                                     
                                                                                                                                
Number 1675                                                                                                                     
                                                                                                                                
MR. FELIX replied  that this is one of those  situations in which                                                               
local control  sounds nice,  but doesn't  work.   The communities                                                               
that have restricted bar hours did  it out of desperation, and it                                                               
cost a  lot of lives to  get to that  point.  He spoke  about the                                                               
role that  interpersonal relationships play in  influencing local                                                               
politics.                                                                                                                       
                                                                                                                                
MR. FELIX said it is not  and cannot be effective locally.  There                                                               
are a lot of communities with  licenses that are just too "tight-                                                               
knit" and everybody  knows everybody.  Local control of  a lot of                                                               
things is a wonderful idea, but  when there is a product that has                                                               
such a potential  [to cause] harm to society,  then local control                                                               
is not as effective as it should  be, and the state needs to step                                                               
in for these situations.                                                                                                        
                                                                                                                                
REPRESENTATIVE HAYES  asked Mr. Stancliff for  information on the                                                               
number of  communities in the state  with bar hours that  will be                                                               
addressed by this bill, and what  the package store hours are for                                                               
these communities.  He said  in looking at the [committee handout                                                               
that shows bar closure hours],  it shows that every big community                                                               
but Kenai and Palmer has addressed  this under local control.  He                                                               
asked  whether all  of  the little  communities  are the  problem                                                               
then.                                                                                                                           
                                                                                                                                
MR.   FELIX   responded   that    they   haven't   addressed   it                                                               
appropriately; for example,  in Fairbanks it is still 3  a.m.  He                                                               
mentioned  a  young girl  who  was  killed  driving to  the  high                                                               
school; the driver who killed her drank  until 3 a.m.  He said he                                                               
thought 2 a.m.  would be a much more reasonable  hour.  He agreed                                                               
with Representative  Halcro that one  of the improvements  to the                                                               
bill would  be to  have bars  opening at 10  a.m.   He said  if a                                                               
person is drinking  at 8 and 9 a.m., with  some exceptions, there                                                               
is a real problem.                                                                                                              
                                                                                                                                
Number 1483                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES stated that the  bill says that the bars are                                                               
to  close at  2:30 a.m.  Monday through  Friday, and  pointed out                                                               
that Fairbanks is [already closing  at] 2 a.m. [during the week],                                                               
and 3:30 a.m. on the weekends.   He commented that this bill says                                                               
3 a.m. to comply with Anchorage.   He stated that the big picture                                                               
needs to be looked  at.  He said if people need  to leave the bar                                                               
at 3 a.m., then one still runs into the same problem.                                                                           
                                                                                                                                
MR.  FELIX explained  that the  issue of  opening bars  later and                                                               
closing  earlier addresses  the  availability [of  alcohol].   He                                                               
said  to have  a really  effective bill,  bars and  liquor stores                                                               
should open at  10 a.m. and close  at 2 a.m., which  is what most                                                               
states do.  [HB 80 was held over.]                                                                                              

Document Name Date/Time Subjects