Legislature(2003 - 2004)

04/27/2004 08:15 AM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
        CSHB 428(JUD)am-CIVIL PENALTY: MINORS & ALCOHOL                                                                     
                                                                                                                              
REPRESENTATIVE KEVIN MEYER,  sponsor of HB 428,  told members the                                                               
intention of this  bill is simply to prohibit  adults from buying                                                               
alcohol  for minors.  This  bill will  allow  businesses to  take                                                               
civil action  against minors  who buy  alcohol or  against adults                                                               
who  buy alcohol  for minors.  He noted  that under  an Anchorage                                                               
ordinance, the Brown  Jug Liquor Store in  Anchorage is currently                                                               
using the  method in  HB 428.  The Brown Jug  waives $700  of the                                                               
$1,000 fine if the offender  completes an alcohol education class                                                               
offered by MADD, STAR and the  Keala (ph) House. STAR is involved                                                               
because it has found that  adults who purchase alcohol for minors                                                               
are   sometimes  sex   offenders.  He   noted  this   bill  makes                                                               
participation in  the program entirely optional.  Some businesses                                                               
have  offered to  help enforce  state laws  but the  state cannot                                                               
afford  to have  police officers  at  every liquor  store, so  it                                                               
needs more  volunteer help  to ensure that  alcohol does  not get                                                               
into  the  hands  of  minors.  The  Brown  Jug  Liquor  Store  in                                                               
Anchorage is the only business  participating in this program but                                                               
it would  like to see  the program offered statewide.  He pointed                                                               
out the bill has a zero fiscal note.                                                                                            
                                                                                                                                
8:34 a.m.                                                                                                                       
                                                                                                                                
SENATOR  SCOTT OGAN  asked  if  this bill  could  have a  reverse                                                               
effect because a store could collect  a $1,000 fine every time it                                                               
sells alcohol to a minor and then turn that person in.                                                                          
                                                                                                                                
REPRESENTATIVE MEYER did not believe  so because of the hassle of                                                               
going through  the civil  process for a  $1,000 fine.  He pointed                                                               
out that the  Brown Jug Liquor program is  participating to cover                                                               
its  own costs,  which it  estimates to  be $300.  He added  if a                                                               
business purposely sold  to a minor, the business  could lose its                                                               
license.                                                                                                                        
                                                                                                                                
CHAIR SEEKINS  referred to the language  on page 1, line  12, and                                                               
asked what constitutes an order.                                                                                                
                                                                                                                                
REPRESENTATIVE  MEYER deferred  to  the owner  of  the Brown  Jug                                                               
Liquor Store for an answer.                                                                                                     
                                                                                                                                
CHAIR SEEKINS expressed concern that  a minor could be lured into                                                               
a bar to order a drink and then turned in for a reward.                                                                         
                                                                                                                                
REPRESENTATIVE MEYER was skeptical  that would happen because bar                                                               
owners would  be subject  to serious  penalties. He  said another                                                               
state law  allows businesses  to take  action against  minors who                                                               
try to enter an establishment with a fake I.D.                                                                                  
                                                                                                                                
CHAIR SEEKINS took public testimony.                                                                                            
                                                                                                                                
MS. CINDY CASHEN, representing  the Juneau, Anchorage, Fairbanks,                                                               
and  Mat-Su  MADD  Chapters,  stated   strong  support  for  CSHB
428(JUD)am because  it will  be an effective  way to  enforce the                                                               
minimum  drinking  age law.  It  is  a  civil measure  that  will                                                               
further  limit  illegal  underage  drinking  access  to  alcohol,                                                               
thereby  reducing youth  involvement  in alcohol-related  traffic                                                               
accidents.  In addition,  MADD  supports  community policing  and                                                               
brings  liquor  licensees  into the  fight  to  prevent  underage                                                               
drinking. She noted  she has heard from many  liquor store clerks                                                               
who  are frustrated  that they  can do  nothing to  prevent adult                                                               
males  from  purchasing alcohol  for  underage  teen girls.  This                                                               
legislation  provides  the  same  motivational  tool  as  a  bill                                                               
introduced by  Representative Meyer  that passed  the legislature                                                               
two years  ago. It will provide  an incentive to store  clerks or                                                               
bar  bouncers by  offering a  financial  reward and  satisfaction                                                               
from  knowing they  are being  responsible  citizens. Their  jobs                                                               
will become more  of a career and those employees  often get more                                                               
training.  MADD  believes  this   bill  will  deter  adults  from                                                               
purchasing alcohol for minors,  particularly sexual predators and                                                               
friends and  family members of  underage drinkers who  think they                                                               
are doing a favor for a minor.                                                                                                  
                                                                                                                                
MR.  O.C.  MADDEN,  owner  of Brown  Jug  Liquors  in  Anchorage,                                                               
informed members  that an  Anchorage ordinance  allows businesses                                                               
to  take a  $1,000  civil  penalty against  those  who order  and                                                               
receive  beverages from  a  licensee for  the  purpose of  giving                                                               
those  beverages  to  a  minor and  against  minors  who  solicit                                                               
adults.  He provides rewards  to employees who intervene in those                                                               
cases and waives $700 of the  fine if the offender agrees to take                                                               
an alcohol  awareness class.  He pointed  out that  virtually 100                                                               
percent of the  minor offenders take the class, which  has been a                                                               
very effective tool.                                                                                                            
                                                                                                                                
To address  concerns raised  by members, MR.  MADDEN said  a sale                                                               
does not have to  occur for an arrest or stop  to be made. Alaska                                                               
law currently  prohibits an  adult from  ordering or  receiving a                                                               
beverage from a  licensee for distribution to a  minor. Brown Jug                                                               
Liquors  has made  about 120  arrests or  stops so  far, and  has                                                               
found that what the court has accepted  to be an order is when an                                                               
adult takes a product  at the request of a minor  and places in a                                                               
cart for  the purpose of  giving that  product to the  minor. The                                                               
adult does not actually have to make the purchase.                                                                              
                                                                                                                                
Regarding luring a minor in to  make a purchase, it is a criminal                                                               
offense  for  a  licensee  to knowingly  allow  minors  into  the                                                               
premise. Under AS  04.16.049, the licensee can stop  the minor at                                                               
the door and the minor, at that  point in time, is liable for the                                                               
$1,000 civil penalty so it is  not beneficial for the licensee to                                                               
allow a minor  to enter. He feels  that law has been  a very good                                                               
tool.  After the  Anchorage  Daily  News did  an  article on  the                                                               
program, he received calls from  other licensees around the state                                                               
questioning how they could replicate that program.                                                                              
                                                                                                                                
SENATOR  OGAN  commented  that  he   believes  one  of  the  most                                                               
prevalent problems in the state is underage drinking.                                                                           
                                                                                                                                
SENATOR  FRENCH   thanked  Mr.   Madden  for   showing  community                                                               
leadership  in its  role  in this  program,  particularly in  his                                                               
efforts to waive part of the  fine in lieu of treatment. He asked                                                               
whether  this bill  should provide  more  stimuli for  treatment,                                                               
rather than leaving that up to the licensee.                                                                                    
                                                                                                                                
MR. MADDEN said  that basically the way it works  right now, when                                                               
a Brown Jug Liquor employee  catches a person under the Anchorage                                                               
ordinance, it  sends the offender  a demand letter. He  likes the                                                               
$1,000  penalty and  the  fact that  treatment  is not  mandatory                                                               
because  that provides  a substantial  hammer  to encourage  that                                                               
minor to  get on board with  the treatment program. If  the minor                                                               
knows the outcome  will be the same, whether he  accepts the deal                                                               
or fights it  in court, he will  choose to fight it  in court. If                                                               
that  were the  case, the  licensee would  not have  the time  to                                                               
invest in pursuing  these cases. He has found  that requiring the                                                               
educational component  is not necessary  because the  minors sign                                                               
up for it  right away to lower the fine.  He noted that offenders                                                               
learn quickly  that it will  cost them more  than $300 to  get an                                                               
attorney to fight the case.                                                                                                     
                                                                                                                                
SENATOR FRENCH  said his  perspective is  that not  all licensees                                                               
will be  as enlightened  as Brown  Jug Liquors  and many  may see                                                               
this as an  opportunity to put cash in  their employees' pockets.                                                               
He agrees that may have a  positive effect in that employees will                                                               
be more alert to  these kinds of sales. He said  he would like to                                                               
see that  the minors  who get caught  learn something  other than                                                               
that it was an expensive mistake.                                                                                               
                                                                                                                                
MR.  MADDEN responded  that right  now there  is no  incentive in                                                               
current state  law providing  for a  licensee to  not sell  to an                                                               
adult  who  is  purchasing  for  a minor.  The  licensee  is  not                                                               
obligated to  monitor areas outside  the premise. At  the present                                                               
time, a licensee can actually  profit from wearing blinders. This                                                               
bill will encourage  licensees to be more vigilant  about what is                                                               
going  on outside  of  their establishments  and  will address  a                                                               
very, very  serious problem. This  bill has no  enforcement costs                                                               
so the only costs involved are paid completely by the offender.                                                                 
                                                                                                                                
MR.  DAVID  LAMBERT, the  owner  of  two dispensary  licenses  in                                                               
Fairbanks,  stated strong  support for  CSHB 428(JUD)am.  He said                                                               
currently,  licensees can  go  after minors  who  attempt to  buy                                                               
liquor  for  a $1,000  fine.  That  has  been  a great  tool  and                                                               
although his establishments have made no  money at it so far, the                                                               
word  is out  that minors  will get  stopped if  they attempt  to                                                               
purchase liquor at one of his  establishments. A $1,000 fine is a                                                               
high enough  deterrent, and he would  hate to see any  changes to                                                               
that   penalty.  He   believes   that  in   Fairbanks,  his   two                                                               
establishments are the  only two that are going  after minors. He                                                               
said  he  does  give  incentives  to his  clerks.  He  opposes  a                                                               
mandatory educational  component because most  establishments are                                                               
doing  nothing now;  reducing the  fine  will not  make it  worth                                                               
their while to do anything.                                                                                                     
                                                                                                                                
CHAIR SEEKINS  asked Mr.  Lambert what  incentive he  provides to                                                               
his employees.                                                                                                                  
                                                                                                                                
MR. LAMBERT said  the first time an employee arrests  a minor, he                                                               
gives the employee $100. After  the first time, the employee gets                                                               
$250. He  noted that most employees  do not want to  make trouble                                                               
for the minor but he has told  his employees that they are out of                                                               
jobs  if they  knowingly  serve  a minor.  He  said  he has  lost                                                               
business because  the minors go  elsewhere. He noted  the biggest                                                               
problem he  has seen is  when a group of  people come to  his bar                                                               
and the minor uses the ID  of another group member. He said going                                                               
after minors entering a tavern is a low priority for police.                                                                    
                                                                                                                                
CHAIR SEEKINS asked if he uses  a program similar to Mr. Madden's                                                               
that includes the educational component.                                                                                        
                                                                                                                                
MR.  LAMBERT  said he  does  not  at this  point  but  that is  a                                                               
possibility in the future. He agreed  with Mr. Madden that if the                                                               
legislature  requires the  education  component  and reduces  the                                                               
fine, the licensees will not bother to participate.                                                                             
                                                                                                                                
MS. CASHEN  told members  that MADD  advocates for  treatment but                                                               
CSHB 428(JUD)am  is not  a treatment bill.  This bill  deals with                                                               
deterrents and intervention. MADD believes  if it saves one life,                                                               
it is  worthwhile. She  said if  this bill  becomes law,  it will                                                               
help to set in place programs  similar to the one in Anchorage in                                                               
other  communities, and  eventually  provide  for an  educational                                                               
component.                                                                                                                      
                                                                                                                                
With  no  further  participants,   CHAIR  SEEKINS  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
SENATOR FRENCH  said he  can see  how this  program is  a win-win                                                               
situation  in Anchorage  with Brown  Jug Liquors,  but he  is not                                                               
sure it  will have the  same benefit if no  educational component                                                               
is required. He  said that a $1,000 fine will  be a big deterrent                                                               
for  a minor  but he  would  prefer to  have some  of that  money                                                               
turned into an  educational program that would make  for a better                                                               
learning experience.                                                                                                            
                                                                                                                                
CHAIR SEEKINS  felt some teenagers  will learn from  an education                                                               
class,  others won't,  and some  will  endure the  class for  the                                                               
benefit of  a lower fine. He  noted that the military  prefers to                                                               
have  18 and  19-year-old  foot soldiers  because those  soldiers                                                               
believe  that consequences  belong  to someone  other than  them.                                                               
That same  attitude sometimes  prevails in  the use  of dangerous                                                               
substances  with young  people, due  to the  physiology of  their                                                               
development,  particularly males.  He would  prefer to  require a                                                               
$1,000 fine  and an  education class. He  said the  committee has                                                               
heard time  and again that 90  percent of the cases  heard in the                                                               
court system have a drug and alcohol aspect to them.                                                                            
                                                                                                                                
TAPE 04-53, SIDE B                                                                                                            
                                                                                                                                
REPRESENTATIVE  MEYER  said  he appreciates  Senator  French  and                                                               
Chair Seekins' concern and that  the same concerns were expressed                                                               
on the  House side. He  pointed out  that because the  program is                                                               
just  getting  started,   he  wants  the  bill   to  have  enough                                                               
flexibility for licensees to work  with their situations to get a                                                               
program going.  If licensees abuse  the program, the  statute can                                                               
be tightened. He  noted it is so hard to  get licensees to pursue                                                               
action against minors  because it is easier to make  the sale. He                                                               
said  the  House  decided  to provide  the  program  with  enough                                                               
flexibility so that it can grow  and come back to make changes if                                                               
need be later.                                                                                                                  
                                                                                                                                
SENATOR  OGAN said  he believes  some  abuse will  occur, but  he                                                               
would like to  get data on the  amount of liquor that  is sold to                                                               
minors  on weekends.  He bets  that is  a significant  amount. He                                                               
suggested putting some  coercion language in the  bill or stating                                                               
on  the record  that the  intent of  this legislation  is not  to                                                               
allow liquor  salespeople to  coerce minors to  buy liquor  to be                                                               
able to fine them.                                                                                                              
                                                                                                                                
CHAIR SEEKINS agreed that is not the intent.                                                                                    
                                                                                                                                
REPRESENTATIVE  MEYER  noted  that  MADD will  be  watching  this                                                               
program closely and that MADD  wants the education component very                                                               
much. However, MADD is willing  to forego requiring the education                                                               
component  just to  get the  program  started. He  said he  would                                                               
prefer  to leave  the bill  as is  and have  MADD monitor  how it                                                               
works.                                                                                                                          
                                                                                                                                
CHAIR SEEKINS agreed with that approach.                                                                                        
                                                                                                                                
SENATOR OGAN  repeated that  he would  prefer that  the committee                                                               
stated that its intent is not to entrap people.                                                                                 
                                                                                                                                
CHAIR SEEKINS noted that all agree  that is not the intent of the                                                               
sponsor  or anyone  who has  taken action  on this  bill to  this                                                               
point, as well as all committee members present.                                                                                
                                                                                                                                
SENATOR   OGAN  moved   CSHB  428(JUD)am   from  committee   with                                                               
individual recommendations and attached zero fiscal notes.                                                                      
                                                                                                                                
CHAIR  SEEKINS  announced  that  without  objection,  the  motion                                                               
carried. He then called a five-minute recess.                                                                                   

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