Legislature(2011 - 2012)BARNES 124

04/04/2011 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 156 CHAIR OF RCA TELECONFERENCED
Moved Out of Committee
*+ HB 50 ACCESS TO LICENSED PREMISES TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
               HB 50-ACCESS TO LICENSED PREMISES                                                                            
3:30:27 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE BILL NO. 50, "An Act  relating to the purchase of alcoholic                                                               
beverages at  a club and  to access  by certain persons  under 21                                                               
years  of  age  to  a club's  licensed  premises  when  alcoholic                                                               
beverages are present."                                                                                                         
                                                                                                                                
3:30:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN SADDLER,  Alaska State  Legislature explained                                                               
that HB 50 does  not seek to allow anyone under the  age of 21 to                                                               
legally drink alcoholic beverages.   Instead, he stated, HB 50 is                                                               
an access  bill with two basic  elements.  First, the  bill would                                                               
make it  easier for service men  and women, who are  over the age                                                               
of 21  to enjoy companionship in  the club houses of  service and                                                               
patriotic organizations.   Patriotic clubs, such  as the American                                                               
Legion  (AL),  Veterans  of  Foreign  Wars  (VFW),  and  Disabled                                                               
American   Veterans  (DAV)   are  wonderful   institutions  where                                                               
veterans  and  active  duty  soldiers can  relax  and  enjoy  the                                                               
special  understanding and  support  from others  who have  "been                                                               
there"  and who  understand the  rigors  of military  life.   The                                                               
legislature   has  recognized   these  values.     In   2006  the                                                               
legislature passed a bill, Senate  Bill 209, to allow active duty                                                               
men and women over the age of  21 to enter such clubs using their                                                               
military identification cards.   Some language remains in statute                                                               
that limits  that access  only to special  occasions.   This bill                                                               
would remove that restriction, he said.                                                                                         
                                                                                                                                
REPRESENTATIVE  SADDLER  explained  that   Section  2  of  HB  50                                                               
pertains to  military personnel under the  age of 21.   This bill                                                               
would allow minors to enter  licensed premises of patriotic clubs                                                               
only  if they  are club  members or  are guests  of members.   He                                                               
reiterated that HB  50 does not permit minors  to drink alcoholic                                                               
beverages on club  premises.  However, commanders  often use such                                                               
clubs  as locations  for  off base  "commander  calls" which  are                                                               
informal meetings  of small  units to  welcome soldiers  home, to                                                               
send them off in deployment,  or to impart important information.                                                               
Thus,  excluding soldiers  under the  age of  21 could  erode the                                                               
unit's cohesion  and could  affect their  morale.   He reiterated                                                               
that HB  50 would allow  soldiers who  are minors to  enter these                                                               
patriotic   or   military   clubs   by   using   their   military                                                               
identification so long as they are  club members or are guests of                                                               
club  members.    He  maintained the  bill  would  not  authorize                                                               
underage soldiers to drink alcoholic  beverages.  It would simply                                                               
clarify that soldiers  over 21 do not have to  wait for a special                                                               
occasion to  visit these patriotic  or military clubs.   It would                                                               
also permit  soldiers under the age  of 21 to visit  patriotic or                                                               
military clubs as members or as  guests of members.  He concluded                                                               
that  this bill  would help  demonstrate that  Alaska understands                                                               
and would like to accommodate the  special needs of the young men                                                               
and women in uniform.                                                                                                           
                                                                                                                                
3:33:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLER  asked whether  a clear definition  of club                                                               
or patriotic organization" licensed as a club exists.                                                                           
                                                                                                                                
3:33:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  answered   that  the  current  statutory                                                               
definition  of "club  license" is  found in  AS 04.11.110,  which                                                               
reads:                                                                                                                          
        (a) A club license authorizes a club or                                                                                 
     organization   to   sell    alcoholic   beverages   for                                                                    
     consumption only on the licensed premises.                                                                                 
                                                                                                                                
        (b) A club license may only be issued to a club,                                                                        
     fraternal  organization,   patriotic  organization,  or                                                                    
     social organization  that has  been (1) chartered  by a                                                                    
     state  or national  organization  for a  period of  two                                                                    
     consecutive  years  before  application for  a  license                                                                    
     under  this section;  or (2)  chartered  by a  national                                                                    
     organization   and   the  national   organization   has                                                                    
     maintained a chartered club  or organization within the                                                                    
     state  for  a   period  of  at  least   20  years.  The                                                                    
     organization  licensed  under   this  section  must  be                                                                    
     operated    for   social,    recreational,   political,                                                                    
     benevolent, or athletic purposes  and not for profit. A                                                                    
     club license may  only be issued to  an organization if                                                                    
     none  of   the  income  from  the   sale  of  alcoholic                                                                    
     beverages is distributed to  its members, directors, or                                                                    
     officers. Soliciting  of public  patronage of  the club                                                                    
     premises  except   as  approved  by  the   board  is  a                                                                    
     violation of this section.                                                                                                 
                                                                                                                                
                                                                                                                                
3:34:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT asked whether  the military personnel who                                                               
are members  of the clubs can  currently patronize the club.   He                                                               
related his understanding  that club members over the  age of 21,                                                               
who are  soldiers, would meet  all requirements and would  not be                                                               
limited to  club premises only  for special occasions.   He asked                                                               
whether this proposed change in  Section 1 would address soldiers                                                               
over  the  age  of  21  who  are  not  members  of  the  club  or                                                               
organization.                                                                                                                   
                                                                                                                                
REPRESENTATIVE SADDLER agreed.  He  elaborated the purpose of the                                                               
bill  is to  eliminate confusion  about what  might constitute  a                                                               
special  occasion and  who  may decide  what  would constitute  a                                                               
special occasion.                                                                                                               
                                                                                                                                
3:36:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT asked  whether a member of  the VFW, over                                                               
the age of  21, would be allowed  to take a friend  into the VFW,                                                               
who  is  not  a  member  of the  armed  services  and  be  served                                                               
alcoholic beverages.                                                                                                            
                                                                                                                                
REPRESENTATIVE  SADDLER  answered yes.    He  said he  based  his                                                               
answer  on  his  own experience  as  a  guest  at  a VFW  in  his                                                               
district.                                                                                                                       
                                                                                                                                
REPRESENTATIVE THOMPSON  pointed out that the  VFW member's guest                                                               
must sign in as a guest.   He explained that a nonmember by state                                                               
law cannot  purchase an alcoholic  beverage.  The sponsor  of the                                                               
guest must purchase the alcoholic beverage, he said.                                                                            
                                                                                                                                
REPRESENTATIVE SADDLER  clarified that  this bill does  not apply                                                               
to the  purchase of alcoholic  beverages, but pertains  to access                                                               
to licensed premises only.                                                                                                      
                                                                                                                                
3:37:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHNSON  expressed   concern  about   any  added                                                               
liability the owner  of the premise would  incur if unaccompanied                                                               
minors are on premises where  alcoholic beverages are served.  He                                                               
asked whether  guests would be  "carded" since  identification is                                                               
normally checked at the bar at the time of purchase.                                                                            
                                                                                                                                
REPRESENTATIVE SADDLER  responded that  current law  allows those                                                               
over the  age of  16 and under  the age of  21 to  enter licensed                                                               
premises  if they  are with  a  parent or  guardian.   Typically,                                                               
according  to one  canteen owner,  soldiers watch  out for  their                                                               
buddies.  Thus, he did not envision this as an issue.                                                                           
                                                                                                                                
REPRESENTATIVE  JOHNSON  offered  his belief  the  proposed  bill                                                               
would not  relieve the club of  any liability.  He  asked whether                                                               
an establishment's license would be at risk.                                                                                    
                                                                                                                                
3:38:49 PM                                                                                                                    
                                                                                                                                
SHIRLEY GIFFORD, Director, Alcoholic  Beverage Control Board (ABC                                                               
Board), Department of Public Safety (DPS), introduced herself.                                                                  
                                                                                                                                
REPRESENTATIVE JOHNSON asked whether  a licensed premise could be                                                               
held liable  if a minor  purchased alcoholic beverages in  a club                                                               
or patriotic  organization.  He  also asked whether  minors would                                                               
need to be "carded" by the club, such as the VFW.                                                                               
                                                                                                                                
MS.  GIFFORD  confirmed  the liability  for  a  minor  purchasing                                                               
alcohol rests  with the child.   However, bartenders  and servers                                                               
must ensure  any person  they sell alcoholic  beverages to  is 21                                                               
years of age or older.   She agreed some liability exists for the                                                               
licensee, but  only in the  event the licensee sold  an alcoholic                                                               
beverage to an underage person.                                                                                                 
                                                                                                                                
3:40:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  whether  the  ABC Board  currently                                                               
performs compliance checks on service organizations.                                                                            
                                                                                                                                
MS.  GIFFORD   advised  members  that  the   ABC  Board  performs                                                               
compliance checks at  service clubs but not as  frequently as for                                                               
private sector  clubs.  In the  past five years, the  ABC Board's                                                               
investigator reported  clubs had  36 sales  to a  non-club member                                                               
and  16  furnishings  of  alcoholic beverages  to  minors.    She                                                               
explained that the  ABC Board's effort to  require magnetic cards                                                               
or  membership cards  was met  with considerable  resistance from                                                               
clubs.   She reported that the  ABC Board "backed away"  from its                                                               
efforts  to require  membership cards  due to  the bylaws  of the                                                               
private  clubs and  organizations and  the specific  federal laws                                                               
that apply to them.   She expressed concern about the possibility                                                               
of minor  consuming and  driving after  drinking.   She explained                                                               
that the  clubs cooperate with the  ABC Board.  However,  the VFW                                                               
and similar  clubs require identification  as people  enter their                                                               
premises,  including  ABC   Board  investigators,  which  hinders                                                               
compliance  checks, she  said. She  maintained  her concern  over                                                               
increased access  of minors  entering the  patriotic organization                                                               
clubs.                                                                                                                          
                                                                                                                                
3:42:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHNSON  asked   whether  underage   persons  on                                                               
premises would constitute a violation in a bar.                                                                                 
                                                                                                                                
MS. GIFFORD answered  that underage persons are not  allowed in a                                                               
bar  unless  they  are  accompanied  by  a  parent  or  guardian.                                                               
Therefore, if  an underage person is  at a bar, such  as Chilkoot                                                               
Charlies, he/she would be charged.                                                                                              
                                                                                                                                
REPRESENTATIVE JOHNSON  related his  understanding that  under HB
50, this would not be an issue in service organizations.                                                                        
                                                                                                                                
MS. GIFFORD  answered yes.  She  related that should HB  50 pass,                                                               
that  a person  under  the age  of  21 would  be  on the  premise                                                               
legally.                                                                                                                        
                                                                                                                                
CHAIR  OLSON   asked  for  clarification  that   the  bill  would                                                               
specifically apply to military personnel under 21 years of age.                                                                 
                                                                                                                                
REPRESENTATIVE SADDLER answered yes, that is correct.                                                                           
                                                                                                                                
CHAIR  OLSON  asked whether  the  underage  soldiers could  visit                                                               
premise that sells alcoholic beverages on a military base.                                                                      
                                                                                                                                
MS. GIFFORD responded that the  ABC Board does not enforce liquor                                                               
laws on  military bases.   Thus, she was unsure  whether underage                                                               
soldiers were allowed  at military clubs, although  she has heard                                                               
anecdotally both yes and no.   She offered to research the issue.                                                               
She  reiterated that  the ABC  Board does  not enforce  the state                                                               
laws on military bases.                                                                                                         
                                                                                                                                
REPRESENTATIVE SADDLER related his  understanding that the thrust                                                               
of the question  is whether any additional  liability would exist                                                               
to licensed  premises with persons under  the 21 years of  age on                                                               
premises legally without  a parent or guardian.   He related that                                                               
he would  answer probably not.   He offered his belief  that some                                                               
liability would  exist but probably not  any additional liability                                                               
under the bill.                                                                                                                 
                                                                                                                                
CHAIR OLSON  offered his belief that  it would be the  same as if                                                               
he took  his daughter, if  she were under 21  years of age,  to a                                                               
restaurant that also has a full bar.                                                                                            
                                                                                                                                
REPRESENTATIVE SADDLER  agreed.  He reiterated  his understanding                                                               
that soldiers  tend to watch  out for one another  and bartenders                                                               
are diligent.   He said he is not saying  underage drinking never                                                               
happens  but that  other soldiers  and bartenders  watch out  for                                                               
underage military personnel.                                                                                                    
                                                                                                                                
3:45:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON related  a  scenario in  which three  of                                                               
four soldiers over the age of 21  enter a club and sign in at the                                                               
door.    One person  is  a  minor.   One  of  the adult  soldiers                                                               
approaches  the bar  and purchases  alcoholic  beverages for  his                                                               
buddies who  sit at table farthest  away from the bar.   He asked                                                               
whether the establishment  would be held liable  for the underage                                                               
person drinking  alcoholic beverages since the  bartender did not                                                               
go to the table to monitor who is drinking the alcohol.                                                                         
                                                                                                                                
REPRESENTATIVE SADDLER pointed out  current laws against underage                                                               
drinking would apply in that situation.                                                                                         
                                                                                                                                
MS. GIFFORD  answered that situation  would be monitored  as part                                                               
of any compliance checks.  She  pointed out that HB 50 would make                                                               
it more  difficult for  the ABC  Board's enforcement  officers to                                                               
oversee minor  consuming in private  clubs.  It would  simply add                                                               
another  element, such  as whether  the  alcoholic beverages  are                                                               
being consumed by the underage  person or his/her friends sitting                                                               
at the  table.  She  maintained that  the access of  the underage                                                               
person to alcoholic  beverages would make it  more challenging to                                                               
enforce.                                                                                                                        
                                                                                                                                
3:48:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLER  offered his belief  that HB 50  would seem                                                               
to place a  lot more stress on bar owners,  club owners, waiters,                                                               
waitresses, and the 21-year-olds  who are purchasing alcohol when                                                               
a minor  is part of  their group.  He  pointed out that  it would                                                               
require considerable  supervision of  younger person  coming into                                                               
the facility.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SADDLER reiterated  that  his research  indicates                                                               
that issues do  not often arise.  He recalled  testimony given on                                                               
other bills, such that the  DPS has reported underage drinking by                                                               
the military  is not one of  their big problems.   He offered his                                                               
belief that not  many violations occur with  servicemen, which is                                                               
why  not  as much  effort  is  needed  for compliance  checks  at                                                               
service  organizations.   He  stressed that  under  the bill  the                                                               
current liquor laws would still  apply and still allow ABC agents                                                               
to enter patriotic clubs.                                                                                                       
                                                                                                                                
MS. GIFFORD reviewed  the violation statistics for  the past five                                                               
years.    Clubs   had  36  sales  to  non-club   members  and  16                                                               
furnishings of alcohol to minors,  she said.  She indicated other                                                               
violations  have  also  occurred  such  as  sales  to  inebriated                                                               
persons.   She agreed  the ABC  Board does  not receive  calls to                                                               
clubs  as  often  as  for   other  licensed  premises,  but  some                                                               
violations still occur.  She pointed  out that the ABC Board does                                                               
not enter  clubs as often  as other  premises.  She  offered that                                                               
trying  to compare  clubs and  patriotic  organizations to  other                                                               
licensed premises is difficult.                                                                                                 
                                                                                                                                
3:50:29 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  recalled from  his own  military service  that other                                                               
consequences exist for soldiers,  including that the military can                                                               
take additional actions against soldiers.   He offered his belief                                                               
that  not  a  lot  of   underage  drinking  happens  in  military                                                               
establishments.                                                                                                                 
                                                                                                                                
REPRESENTATIVE SADDLER  explained that  Section 2  of HB  50 does                                                               
not open  the door  wider.  It  simply eliminates  the limitation                                                               
and reference  to special  occasions.  He  recapped that  he does                                                               
not think  this bill would  increase underage drinking.   This is                                                               
an access bill.  It just  ensures that those are legally entitled                                                               
to  enter  licensed  premises  can  do  so  without  limitations.                                                               
Additionally, military  personnel over 21  years of age  would be                                                               
allowed  to enter  private clubs  and patriotic  organizations as                                                               
guests.                                                                                                                         
                                                                                                                                
3:52:18 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 50.                                                                                      
                                                                                                                                
3:52:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked for the  ABC Board's position on the                                                               
bill.                                                                                                                           
                                                                                                                                
MS.  GIFFORD responded  that  the  ABC Board  does  not have  any                                                               
position.   She  stated that  she  raised some  concerns for  the                                                               
committee to  consider in her testimony.   She said that  the ABC                                                               
Board does  not currently  know when  special occasions  occur at                                                               
clubs so she does not object to  the provisions of the bill.  She                                                               
maintained her  concern is  limited to  the additional  access to                                                               
alcoholic beverages by underage persons.                                                                                        
                                                                                                                                
3:54:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT moved to report HB 50 out of committee                                                                  
with individual recommendations and the accompanying fiscal                                                                     
note.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JOHNSON objected. He then removed his objection.                                                                 
There being no further objection, HB 50 was reported from the                                                                   
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
3:55:41 PM                                                                                                                    

Document Name Date/Time Subjects
HB156 ver A.pdf HL&C 4/4/2011 3:15:00 PM
HB 156
HB156 Sponsor Statement.pdf HL&C 4/4/2011 3:15:00 PM
HB 156
HB156 Sectional Summary.pdf HL&C 4/4/2011 3:15:00 PM
HB 156
HB156 Fiscal Note-CCED-RCA-03-31-11.pdf HL&C 4/4/2011 3:15:00 PM
HB 156
HB156 Supporting Documents-Webpage RCA Informational Sheet 3-30-2011.pdf HL&C 4/4/2011 3:15:00 PM
HB 156
HB156 Supporting Documents-Webpage RCA Roster 3-30-11.pdf HL&C 4/4/2011 3:15:00 PM
HB 156
HB50 ver A.pdf HJUD 3/14/2012 1:00:00 PM
HL&C 4/4/2011 3:15:00 PM
HB 50
HB50 Sponsor Statement.pdf HJUD 3/14/2012 1:00:00 PM
HL&C 4/4/2011 3:15:00 PM
HB 50
HB50 Sectional Analysis.pdf HJUD 3/14/2012 1:00:00 PM
HL&C 4/4/2011 3:15:00 PM
HB 50
HB50 Supporting Documents - Email David Lemelin 3-7-2011.pdf HL&C 4/4/2011 3:15:00 PM
HB 50
HB50 Fiscal Note L&C.pdf HL&C 4/4/2011 3:15:00 PM
HB 50