Legislature(2005 - 2006)CAPITOL 106

03/30/2006 01:30 PM RULES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Rescheduled from 03/23/06 --
+= SB 210 VIOL. OF ALCOHOLIC BEV. LAWS/FORFEITURE TELECONFERENCED
Moved HCS SB 210(RLS) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 186 EXECUTIVE BRANCH ETHICS TELECONFERENCED
Heard & Held
1:38:26 PM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG announced  that the first order  of business would                                                               
be SENATE BILL  NO. 210, "An Act relating to  the manufacture and                                                               
transportation  of alcoholic  beverages; relating  to forfeitures                                                               
of  property  for  violations of  alcoholic  beverage  laws;  and                                                               
relating to violations of alcoholic beverage laws."                                                                             
                                                                                                                                
1:39:52 PM                                                                                                                    
                                                                                                                                
SENATOR  GENE  THERRIAULT,  Alaska  State  Legislature,  sponsor,                                                               
explained that the idea behind SB  210 arose from the work of the                                                               
Alaska  Rural  Justice  and  Law  Enforcement  Commission,  which                                                               
identified a number of inconsistencies  in state law that make it                                                               
difficult to  help control the  alcohol problem in  rural Alaska.                                                               
Senator  Therriault  then  provided   a  sectional  analysis  and                                                               
highlighted  that Section  1 amends  the allowable  quantities of                                                               
alcohol from 12 liters of distilled  spirits to 10.5 liters as it                                                               
relates  to  a  presumption  of possession  for  the  purpose  of                                                               
selling alcohol.   Section  2 of the  legislation allows  for the                                                               
seizure  of   alcohol  from  common  carriers   when  it's  being                                                               
transported in violation of the  law and allows the forfeiture of                                                               
property  that  was  purchased from  the  illegal  proceeds  from                                                               
bootlegging activities.  Section 3  adds language similar to that                                                               
of the  drug control statutes  in order to provide  a streamlined                                                               
process when property  is seized and an innocent  party claims an                                                               
ownership interest in that property.   Senator Therriault pointed                                                               
out that  Section 4  relates to the  common carrier  statutes and                                                               
Section  5   provides  a  definition  for   "the  manufacture  of                                                               
alcohol."                                                                                                                       
                                                                                                                                
1:42:19 PM                                                                                                                    
                                                                                                                                
SENATOR THERRIAULT  thanked Chair Rokeberg for  bringing the need                                                               
for  an amendment  to his  attention and  allowing time  to check                                                               
with impacted communities,  which are boroughs in  which there is                                                               
a city.  He highlighted an e-mail  from the mayors of the City of                                                               
North Pole, the  City of Fairbanks, and the  Fairbanks North Star                                                               
Borough  that  relates  support   for  the  amendment.    Senator                                                               
Therriault mentioned  that he was supportive  of Chair Rokeberg's                                                               
[amendment].                                                                                                                    
                                                                                                                                
1:43:45 PM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG  thanked the sponsor  for allowing him  to utilize                                                               
SB 210 to correct a minor problem in state commerce.                                                                            
                                                                                                                                
1:44:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BERKOWITZ asked  if  all  of the  recommendations                                                               
from  the Alaska  Rural Justice  and  Law Enforcement  Commission                                                               
were incorporated in SB 210.                                                                                                    
                                                                                                                                
1:44:45 PM                                                                                                                    
                                                                                                                                
HEATHER BRAKES,  Staff to Senator  Gene Therriault,  Alaska State                                                               
Legislature, acknowledged  that were other recommendations.   The                                                               
recommendations included in SB 210  are mainly cleanup of current                                                               
statute while  the other recommendations  not included in  SB 210                                                               
were larger policy issues that  the sponsor chose not to include.                                                               
In further response to Representative  Berkowitz, there is no set                                                               
date for  the report to be  issued from the Alaska  Rural Justice                                                               
and Law Enforcement Commission.                                                                                                 
                                                                                                                                
1:46:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  moved that the committee  adopt Amendment                                                               
1, labeled 24-LS1232\G.1, Luckhaupt, 3/21/06, which read:                                                                       
                                                                                                                                
     Page 1, line 1, following "beverages;":                                                                                  
          Insert "relating to relocation of existing                                                                          
     licenses within a borough;"                                                                                              
                                                                                                                                
     Page 2, following line 3:                                                                                                  
     Insert new bill sections to read:                                                                                          
        "* Sec. 2. AS 04.11.400(a) is amended to read:                                                                      
          (a)  Except as provided in (d) - (h), (k), [AND]                                                                      
     (l), and (n) of this section,  a new license may not be                                                                
     issued  and the  board  may prohibit  relocation of  an                                                                    
     existing license                                                                                                           
               (1)  outside an established village,                                                                             
     incorporated city,  unified municipality,  or organized                                                                    
     borough  if  after  the issuance  or  relocation  there                                                                    
     would be (A)  more than one restaurant  or eating place                                                                    
     license for  each 1,500 population or  fraction of that                                                                    
     population, or (B) more than  one license of each other                                                                    
     type, including  licenses that  have been  issued under                                                                    
     (d) or (e)  of this section, for  each 3,000 population                                                                    
     or fraction  of that  population, in  a radius  of five                                                                    
     miles   of  the   licensed   premises,  excluding   the                                                                    
     populations   of  established   villages,  incorporated                                                                    
     cities, unified municipalities,  and organized boroughs                                                                    
     that are wholly or partly included within the radius;                                                                      
               (2)      inside   an   established   village,                                                                    
     incorporated  city, or  unified  municipality if  after                                                                    
     the issuance  or relocation there  would be  inside the                                                                    
     established  village,  incorporated  city,  or  unified                                                                    
     municipality                                                                                                               
               (A)  more than one restaurant or eating                                                                          
     place license for each 1,500  population or fraction of                                                                    
     that population; or                                                                                                        
               (B)  more than one license of each other                                                                         
     type, including  licenses that  have been  issued under                                                                    
     (d) or (e)  of this section, for  each 3,000 population                                                                    
     or fraction of that population;                                                                                            
               (3)  inside an organized borough but outside                                                                     
     an  established village  or  incorporated city  located                                                                    
     within   the  borough,   if  after   the  issuance   or                                                                    
     relocation  there  would  be inside  the  borough,  but                                                                    
     outside  the  established   villages  and  incorporated                                                                    
     cities located within the borough,                                                                                         
               (A)  more than one restaurant or eating                                                                          
     place license for each 1,500  population or fraction of                                                                    
     that population; or                                                                                                        
               (B)  more than one license of each other                                                                         
     type, including  licenses that  have been  issued under                                                                    
     (d) or (e)  of this section, for  each 3,000 population                                                                    
     or   fraction   of   that  population   excluding   the                                                                    
     population  of  those  established villages  that  have                                                                    
     adopted a  local option under  AS 04.11.491(b)(1), (3),                                                                    
     or (4),  and excluding  the population  of incorporated                                                                    
     cities located within the organized borough.                                                                               
        * Sec.  3. AS 04.11.400 is  amended by adding  a new                                                                  
     subsection to read:                                                                                                        
          (n)  Without regard to (a) of this section, the                                                                       
     board may  allow the relocation  of a license  within a                                                                    
     borough, including  within an incorporated  city within                                                                    
     a  borough,  if  the  governing  body  of  the  borough                                                                    
     approves  of  the relocation  and,  if  the license  is                                                                    
     being relocated  into or  within an  incorporated city,                                                                    
     the governing  body of  the incorporated  city approves                                                                    
     of the relocation."                                                                                                        
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
REPRESENTATIVE HARRIS objected for purposes of discussion.                                                                      
                                                                                                                                
1:46:53 PM                                                                                                                    
                                                                                                                                
CHAIR  ROKEBERG  explained  that  Amendment  1  would  allow  the                                                               
transfer of  a Title  IV license  from a borough  into a  city or                                                               
another  Title  IV  entity  and  vice versa.    He  informed  the                                                               
committee that  some major  restaurant chains  want to  locate in                                                               
the Wasilla area,  but they are restricted from  doing so because                                                               
they  can't  obtain a  beverage  dispensary  license due  to  the                                                               
population  restrictions  and  the lack  of  available  licenses.                                                               
However,   there  are   available   licenses   in  the   borough.                                                               
Therefore,  the primary  caveat  is  that in  order  to have  any                                                               
transfer  from  one  jurisdiction   to  another,  both  political                                                               
subdivisions  have to  approve it,  which he  characterized as  a                                                               
safety valve.                                                                                                                   
                                                                                                                                
1:49:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  asked if the appeal  process would remain                                                               
the same.                                                                                                                       
                                                                                                                                
1:49:21 PM                                                                                                                    
                                                                                                                                
DOUGLAS  GRIFFIN,  Director,  Alcoholic  Beverage  Control  Board                                                               
("ABC  Board"),  Department  of Public  Safety,  in  response  to                                                               
Representative Coghill,  specified that this won't  change any of                                                               
the appeals processes.  Of course,  when a license moves from the                                                               
borough  to the  city, it  becomes a  city license  and thus  the                                                               
renewal would  go through  the governmental  entity to  which the                                                               
license was  transferred.  This,  in effect, makes  boroughs with                                                               
cities within  them operate much  like a unified  municipality in                                                               
regard  to the  movement of  liquor  licenses and  in both  cases                                                               
local government approval is required for the transfer.                                                                         
                                                                                                                                
MR.  GRIFFIN  highlighted that  SB  210  doesn't contemplate  nor                                                               
create any more  liquor licenses.  Upon review of  this issue, it                                                               
was  determined  that  fewer restrictions  [on  the  transfer  of                                                               
licenses]  reduces  the restriction  on  commerce.   Overall  the                                                               
philosophy of  the ABC Board, he  related, is to try  to regulate                                                               
alcoholic  beverages in  a manner  that best  serves the  public.                                                               
Mr. Griffin  related that  the ABC Board  doesn't have  a problem                                                               
with Amendment 1.                                                                                                               
                                                                                                                                
1:54:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG related his  understanding that the ABC                                                               
Board has  final approval over these  licenses.  He then  posed a                                                               
situation  in which  one  city within  the  Fairbanks North  Star                                                               
Borough  transfers  a  liquor  license to  another  city  in  the                                                               
borough.  In  such a case, would the city  from which the license                                                               
is leaving  have the ability to  protest/disapprove the transfer,                                                               
he asked.                                                                                                                       
                                                                                                                                
MR. GRIFFIN deferred to the Department of Law representative.                                                                   
                                                                                                                                
REPRESENTATIVE HARRIS removed his objection.                                                                                    
                                                                                                                                
1:56:37 PM                                                                                                                    
                                                                                                                                
ANNE  CARPENETI,  Assistant   Attorney  General,  Legal  Services                                                               
Section  - Juneau,  Criminal Division,  Department  of Law,  said                                                               
that a city-to-city transfer wasn't  considered with Amendment 1.                                                               
However,  she  related  her  understanding  that  when  a  liquor                                                               
license  leaves a  city, the  city  doesn't have  an occasion  to                                                               
protest.   Therefore, the language  of Amendment 1 would  seem to                                                               
mean that  the area where  the license  is going to  be relocated                                                               
would have to approve.                                                                                                          
                                                                                                                                
1:57:31 PM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG asked  if Amendment 1 would allow  the transfer of                                                               
a license from one city to another city under the same borough.                                                                 
                                                                                                                                
MS. CARPENETI replied yes.                                                                                                      
                                                                                                                                
1:57:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL surmised then that  if a business is moved                                                               
from Fairbanks  to North Pole,  the business would still  have to                                                               
apply in  North Pole for  the liquor  license and go  through the                                                               
regular public hearing process.                                                                                                 
                                                                                                                                
MS. CARPENETI confirmed that whatever  municipal process in place                                                               
would apply.                                                                                                                    
                                                                                                                                
1:58:40 PM                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
1:58:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS moved to report  SB 210, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There being  no objection,  HCS SB  210(RLS) was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
1:59:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRIS moved to adopt  a proposed House Concurrent                                                               
Resolution,  Version  A,  Luckhaupt,   3/21/06,  as  the  working                                                               
document.  There being no objection, it was so ordered.                                                                         
                                                                                                                                
REPRESENTATIVE  HARRIS   moved  to  report  the   proposed  House                                                               
Concurrent  Resolution, Version  A,  Luckhaupt,  3/21/06, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  There being no objection, it was so ordered.                                                                     
                                                                                                                                

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