Legislature(2007 - 2008)

05/14/2007 01:26 PM Senate FIN


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
1:34:28 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 155(FIN)                                                                                             
     "An Act extending the termination date of the Alcoholic                                                                    
     Beverage Control Board; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Stedman  announced  intent  to report  this  bill  from                                                               
Committee   unless  issues   were  raised   that  could   not  be                                                               
immediately resolved.                                                                                                           
                                                                                                                                
1:35:03 PM                                                                                                                    
                                                                                                                                
ELEANOR  WOLFE, Staff  to  Representative  Kurt Olson,  testified                                                               
that  this  legislation was  introduced  at  the request  of  the                                                               
Alcoholic  Beverage  Control  (ABC)   Board.  The  recent  report                                                               
conducted by  the Division of  Legislative Audit  identified some                                                               
problems in the  operation of the Board; however  she was assured                                                               
that they  would be addressed  in separate legislation.  This had                                                               
not yet  occurred but the Committee  would be notified as  to the                                                               
status of the effort.                                                                                                           
                                                                                                                                
Ms.  Wolfe noted  that the  original version  of this  bill would                                                               
extend  the Board  for  six years.  The  House Finance  Committee                                                               
considered  the  bill  and recommended  the  extension  be  three                                                               
years. The  intent is  to provide an  opportunity to  address any                                                               
issues similar to those identified in the audit report.                                                                         
                                                                                                                                
1:36:17 PM                                                                                                                    
                                                                                                                                
Senator  Huggins  recommended  reducing  the  extension  from  36                                                               
months, as  contained in the current  version of the bill,  to 24                                                               
months with  the expectation that  the issues would  be addressed                                                               
during  the  interim and  reviews  by  the legislature  near  the                                                               
conclusion of the two-year period.                                                                                              
                                                                                                                                
1:36:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman repeated Senator Huggins's comments.                                                                           
                                                                                                                                
1:36:57 PM                                                                                                                    
                                                                                                                                
Ms. Wolfe  suggested conferring with the  Division of Legislative                                                               
Audit,  as  the  audit  process   requires  one  year  and  would                                                               
therefore begin in one year.                                                                                                    
                                                                                                                                
1:37:24 PM                                                                                                                    
                                                                                                                                
Senator Dyson  cautioned that because the  legislation originated                                                               
in the  House of Representatives  any changes made by  the Senate                                                               
would  require concurrence  and could  jeopardize the  passage of                                                               
the bill and subsequent extension of the Board.                                                                                 
                                                                                                                                
1:37:39 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  assured  that  "ample time"  remained  in  the                                                               
process   to    receive   concurrence    from   the    House   of                                                               
Representatives.                                                                                                                
                                                                                                                                
Senator Dyson  did not  understand the  dynamics between  the two                                                               
legislative bodies and expressed concern  that the bill would not                                                               
pass.                                                                                                                           
                                                                                                                                
1:38:37 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman reassured this would not occur.                                                                                
                                                                                                                                
1:39:01 PM                                                                                                                    
                                                                                                                                
PAT DAVIDSON, Director, Division  of Legislative Audit, testified                                                               
that  the  Division is  statutorily  required  to make  an  audit                                                               
available to the Legislature when it  convenes in the year that a                                                               
board or  commission is scheduled  to expire. If  the termination                                                               
date of the  ABC Board was scheduled for 24  months, the Division                                                               
would  be required  to  begin  the audit  process  in June  2008.                                                               
Interim  reporting  was  another   option.  Many  of  the  issues                                                               
highlighted  in the  recent audit  only involve  Board action  to                                                               
rectify.                                                                                                                        
                                                                                                                                
1:40:26 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  identified two  options,  one  to shorten  the                                                               
timeframe to  re-extend the Board,  and the other to  request the                                                               
Board  report  its  progress in  implementing  the  changes.  The                                                               
intent was to ensure that the Board would take action.                                                                          
                                                                                                                                
1:41:04 PM                                                                                                                    
                                                                                                                                
Ms.  Wolfe did  not oppose  a  provision requiring  the Board  to                                                               
prepare an interim report to the Legislature.                                                                                   
                                                                                                                                
1:41:15 PM                                                                                                                    
                                                                                                                                
Senator  Huggins changed  his recommendation,  instead supporting                                                               
the  existing   proposed  termination  date  of   the  Board  and                                                               
requesting a report from the Board.                                                                                             
                                                                                                                                
AT EASE 1:41:43 PM / 1:41:52 PM                                                                                             
                                                                                                                                
1:41:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman asked if the  record of this discussion would be                                                               
sufficient  in  requesting the  report.  He  preferred the  least                                                               
cumbersome  method  of ensuring  that  the  Board implements  the                                                               
recommendations identified by the Division of Legislative Audit.                                                                
                                                                                                                                
1:42:47 PM                                                                                                                    
                                                                                                                                
Senator  Elton suggested  the Department  of Commerce,  Community                                                               
and Economic Development, Division  of Corporations, Business and                                                               
Occupational Licensing  could prepare the report.  He pointed out                                                               
that  the  recent  audit  was   completed  during  the  Murkowski                                                               
Administration  and  that  a  new  commissioner  had  since  been                                                               
appointed who may encourage different practices.                                                                                
                                                                                                                                
1:44:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman asked  if intent language would  be necessary to                                                               
request this report or whether the spoken intent would suffice.                                                                 
                                                                                                                                
1:44:39 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  offered  a  motion to  report  the  bill  from                                                               
Committee  with   individual  recommendations   and  accompanying                                                               
fiscal note.                                                                                                                    
                                                                                                                                
There  was no  objection and  CS  HB 155(FIN)  was REPORTED  FROM                                                               
COMMITTEE with zero fiscal note  #2 from the Department of Public                                                               
Safety.                                                                                                                         
                                                                                                                                

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