Legislature(2007 - 2008)BARNES 124

04/26/2007 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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08:04:36 AM Start
08:05:08 AM Community Services Block Grant Program
09:02:41 AM HB232
09:54:50 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Community Services Block Grant (CSBG) TELECONFERENCED
Program
+= HB 232 ALCOHOL SALE/PURCHASE/DISTRIBUTION TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         April 26, 2007                                                                                         
                           8:04 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Anna Fairclough, Co-Chair                                                                                        
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Nancy Dahlstrom                                                                                                  
Representative Mark Neuman                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Woodie Salmon                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kurt Olson                                                                                                       
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Bryce Edgmon                                                                                                     
Representative Mary Nelson                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMUNITY SERVICES BLOCK GRANT PROGRAM                                                                                          
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 232                                                                                                              
"An  Act relating  to  the sale,  distribution,  and purchase  of                                                               
alcoholic beverages; relating to a  state database for records of                                                               
certain  purchases  of  alcoholic   beverages;  relating  to  the                                                               
relocation of a license to  sell alcoholic beverages; relating to                                                               
procedures for  local option elections  for control  of alcoholic                                                               
beverages; and providing for an effective date."                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 232                                                                                                                  
SHORT TITLE: ALCOHOL SALE/PURCHASE/DISTRIBUTION                                                                                 
SPONSOR(s): REPRESENTATIVE(s) MEYER                                                                                             
                                                                                                                                
04/04/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/04/07       (H)       CRA, JUD, FIN                                                                                          
04/12/07       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/12/07       (H)       Heard & Held                                                                                           
04/12/07       (H)       MINUTE(CRA)                                                                                            
04/26/07       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JILL DAVIS, Grants Administrator III                                                                                            
Division of Community Advocacy                                                                                                  
Department of Commerce, Community, & Economic Development                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided remarks regarding the Community                                                                   
Services Block Grant (CSBG) Program.                                                                                            
                                                                                                                                
DAVID HARDENBERGH, Executive Director                                                                                           
Rural Alaska Community Action Program, Inc. (RurAL CAP)                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided remarks regarding RurAL CAP and                                                                   
the work it does with the funds from CSBG.                                                                                      
                                                                                                                                
JO GROVE, Grants Manager                                                                                                        
Fairbanks Office                                                                                                                
Division of Community Advocacy                                                                                                  
Department of Commerce, Community, & Economic Development                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Commended RurAL CAP on its work.                                                                           
                                                                                                                                
MIKE PAWLOWSKI, Staff                                                                                                           
to Representative Kevin Meyer                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 232 on behalf of the sponsor,                                                                 
Representative Meyer.                                                                                                           
                                                                                                                                
ANNE CARPENETI, Assistant Attorney General                                                                                      
Legal Services Section - Juneau                                                                                                 
Criminal Division                                                                                                               
Department of Law                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During hearing of HB 232, answered                                                                         
questions.                                                                                                                      
                                                                                                                                
DOUGLAS GRIFFIN, Director                                                                                                       
Alcoholic Beverage Control Board ("ABC Board")                                                                                  
Department of Public Safety                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:     During  hearing  of   HB  232,  answered                                                               
questions.                                                                                                                      
                                                                                                                                
LOUISE STUTES                                                                                                                   
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Expressed a concern with HB 232.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CO-CHAIR  GABRIELLE   LEDOUX  called  the  House   Community  and                                                             
Regional Affairs  Standing Committee meeting to  order at 8:04:36                                                             
AM.   Representatives LeDoux,  Fairclough, Dahlstrom,  and Neuman                                                             
were present  at the call  to order.  Representatives  Cissna and                                                               
Salmon  arrived  as  the  meeting  was  in  progress.    Also  in                                                               
attendance were Representatives Edgmon and Nelson.                                                                              
                                                                                                                                
^Community Services Block Grant Program                                                                                       
                                                                                                                                
8:05:08 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  first order of business would                                                               
be  to take  public comment  on the  state's draft  plan for  the                                                               
Community  Services Block  Grant  (CSBG) Program  in fiscal  year                                                               
2008.                                                                                                                           
                                                                                                                                
8:05:48 AM                                                                                                                    
                                                                                                                                
JILL  DAVIS,  Grants  Administrator III,  Division  of  Community                                                               
Advocacy,   Department  of   Commerce,   Community,  &   Economic                                                               
Development  (DCCED),  paraphrased  from  the  following  written                                                               
remarks [original punctuation provided]:                                                                                        
                                                                                                                                
     I  am pleased  to  participate in  this Public  Hearing                                                                    
     concerning  the  Draft  State Plan  for  the  Community                                                                    
     Services Block  Grant Program  for Federal  Fiscal Year                                                                    
     2008.  The Department  of Commerce Community & Economic                                                                    
     Development  would like  to  accept  comments from  the                                                                    
     public on  the proposed  use and distribution  of these                                                                    
     funds.                                                                                                                     
                                                                                                                                
     Community Services  Block Grant funds are  allocated to                                                                    
     the  Department   of  Commerce  Community   &  Economic                                                                    
     Development  for  distribution   to  the  State's  only                                                                    
     Community Action Agency, RurAL  CAP Inc.  We anticipate                                                                    
     receiving   approximately  $2.4   Million  in   FFY  08                                                                    
     although  that   number  could  increase   or  decrease                                                                    
     slightly.   The State is  authorized to keep  a maximum                                                                    
     of  5%  of the  funds  to  cover administrative  costs.                                                                    
     The balance of funds are made available to RurAL CAP.                                                                      
                                                                                                                                
     The  purpose of  the CSBG  Program includes  supporting                                                                    
     activities  designed  to address  one  or  more of  the                                                                    
     following:                                                                                                                 
                                                                                                                                
        · to  assist  low-income families  and  individuals,                                                                    
          homeless persons, migrant or seasonal farm                                                                            
          workers, and elderly low-income persons                                                                               
        · to remove obstacles and  solve problems that block                                                                    
          the achievement of self-sufficiency;                                                                                  
        · to secure and retain meaningful employment;                                                                           
        · to  attain an  adequate education  with particular                                                                    
          attention toward improving literacy skills;                                                                           
        · to make better use of available income;                                                                               
        · to  obtain and  maintain  adequate  housing and  a                                                                    
          suitable living environment;                                                                                          
        · to obtain  emergency assistance to  meet immediate                                                                    
          and urgent needs;                                                                                                     
        · to  achieve greater  participation in  the affairs                                                                    
          of the community;                                                                                                     
        · to  address  the  needs of  youth  in  low  income                                                                    
          communities through youth development programs;                                                                       
        · and to  make effective use of  and coordinate with                                                                    
          other programs related to the purposes of the                                                                         
          Community Services Block Grant Program.                                                                               
                                                                                                                                
     The  Draft  State  Plan,  on  which  we  are  accepting                                                                    
     comment today, outlines  how the Department administers                                                                    
     the  CSBG program  and the  activities which  RurAL CAP                                                                    
     proposes to undertake during  Federal Fiscal Year 2008.                                                                    
     Because  the  State Plan  is  lengthy,  I will  briefly                                                                    
     outline the  major components which the  Department and                                                                    
     RurAL CAP have identified for the FFY 08 program.                                                                          
                                                                                                                                
     RurAL CAP  will utilize  the CSBG  funds to  serve low-                                                                    
     income people  throughout the State in  several program                                                                    
     components.    These include  Administrative  Services;                                                                  
     Anchorage   Services;   Child  Development;   Community                                                                  
     Development;  Public  Policy  and Advocacy;  and  Rural                                                                  
     Housing & Planning Services.                                                                                             
                                                                                                                                
     Administrative Services Division:   CSBG funds are used                                                                  
     to   support   agency  clerical,   logistical,   public                                                                    
     information,   development,   and   office   managerial                                                                    
     services.  This  component  also  supports  a  Research                                                                  
     Information  Center  (library); Planning  and  Training                                                                
     and Program Evaluation.                                                                                                  
                                                                                                                                
     Anchorage Services  Division:   CSBG funds are  used to                                                                  
     support  the Homeward  Bound Reintegration  Program and                                                                  
     an  Affordable  Housing  Component.   Program  products                                                                  
     include  education, employment,  job skills,  training,                                                                    
     independent living skills,  improved housing, decreased                                                                    
     substance abuse, and healthier families.                                                                                   
                                                                                                                                
     Child Development  Division:   CSBG provides  funds for                                                                  
     the administrative oversight of  Head Start, Early Head                                                                  
     Start,  and   Parents  as   Teachers  programs   in  24                                                                  
     communities   and  a   Child   Development  Center   in                                                              
     Anchorage  serving 27  children between  the ages  of 9                                                                    
     mos and 6 years of age.                                                                                                    
                                                                                                                                
     Community Development  Division:   CSBG funds  are used                                                                  
     to  support  the  AmeriCorps  Program;  VISTA  (Village                                                                  
     Council  Management   Program  and  the   Vista  Energy                                                                  
     Program);   Rural   Providers  Conference;   and   also                                                                  
     supports the  coordination and implementation  of other                                                                    
     initiatives  on  substance  abuse  prevention,  tobacco                                                                  
     prevention  and  control,  the  Early  Decisions  Fetal                                                                  
     Alcohol Spectrum  (FAS), and  the protection  of indoor                                                                  
     air quality  in rural homes.   Program products include                                                                  
     education,    employment,    job   skills,    training,                                                                    
     independent  living  skills,  improved  housing,  lower                                                                    
     fuel   bills,  less   substance  abuse,   and  improved                                                                    
     environmental conditions and healthier families.                                                                           
                                                                                                                              
     Public Policy and Advocacy:   This component strives to                                                                  
     empower communities,  develop leaders, and  to increase                                                                    
     the  capacity of  low income  people  to impact  public                                                                    
     policy and to  inform decision makers.    These efforts                                                                    
     are  best  accomplished   by  developing  relationships                                                                    
     between  low  income  people and  decision  makers;  by                                                                    
     increasing  skills  and  understandings of  low  income                                                                    
     people   which  increase   their   ability  to   change                                                                    
     conditions which  do not work in  their communities and                                                                    
     beyond.                                                                                                                    
                                                                                                                                
     Rural  Housing and  Planning Services  Division:   CSBG                                                                
     funds   assist   RurAL   CAP   in   forming   strategic                                                                    
     relationships   with    Tribally   Designated   Housing                                                                    
     Entities,   U.S.   Department  of   Agriculture,   U.S.                                                                    
     Department  of  Housing  &  Urban  Development,  Alaska                                                                    
     Housing  Finance Corporation,  and  private sources  to                                                                    
     secure   funding   for   Housing   Rehabilitation   and                                                                    
     Weatherization  Services;  Self-Help  Housing;  Capital                                                                    
     Project   Services;  and   Housing   Advocacy.     This                                                                    
     component   also   assists  with   Community   Planning                                                                    
     activities;   Capacity    Building;   and   Interagency                                                                    
     Coordination activities.                                                                                                   
                                                                                                                                
     Each  of these  components are  described in  detail in                                                                    
     the Draft  State Plan.  In  addition, David Hardenberg,                                                                    
     Executive  Director and  Shauna Hegna,  Deputy Director                                                                    
     of RurAL CAP INC. are  on-line in Anchorage.                                                                               
                                                                                                                                
     David or  Shauna will provide a  more detailed overview                                                                    
     of  each of  these  program components  and answer  any                                                                    
     specific questions you may have.                                                                                           
                                                                                                                                
     Also  included in  this year's  State Plan  are Outcome                                                                    
     Measures for  each of the program  components.  Program                                                                    
     results are  tracked and reported on  a quarterly basis                                                                    
     in terms of  the number of clients who  achieve a given                                                                    
     milestone.  Progress is reviewed  by both RurAL CAP and                                                                    
     state staff and  is used  to evaluate  results and make                                                                    
     program changes when necessary.                                                                                            
                                                                                                                                
     Both the  Department of  Commerce Community  & Economic                                                                    
     Development and  RurAL CAP place  a strong  emphasis on                                                                    
     promoting maximum participation by  rural people in the                                                                    
     elimination of  the causes  and conditions  of poverty.                                                                    
     RurAL  CAP  has  demonstrated  a  sincere  interest  in                                                                    
     helping   low  income   Alaskans  and   are  recognized                                                                    
     nationally   as  a   leader  in   providing  not   only                                                                    
     innovative   programs  which meet  the  needs of  their                                                                    
     clientele, but  also in  developing   exemplary Outcome                                                                    
     Measures.   They  are to  be commended  for their  hard                                                                    
     work and their success.                                                                                                    
                                                                                                                                
     Thank you  for your interest in  the Community Services                                                                    
     Block Grant  program.  Again,  our purpose today  is to                                                                    
     educate  the public  about the  program  and to  accept                                                                    
     comment on the proposed  use and distribution of funds.                                                                    
     With  that, I  would like  to turn  this over  to David                                                                    
     Hardenberg.                                                                                                                
                                                                                                                                
8:14:22 AM                                                                                                                    
                                                                                                                                
DAVID HARDENBERGH, Executive Director, Rural Alaska Community                                                                   
Action Program, Inc. (RurAL CAP), paraphrased from the following                                                                
written remarks [original punctuation provided]:                                                                                
                                                                                                                                
     Thank  you  Chairman LeDoux  and  good  morning to  the                                                                    
     members  of   House  Community  and   Regional  Affairs                                                                    
     Committee.  My  name is David Hardenbergh and  I am the                                                                    
     Executive  Director  of   the  Rural  Alaska  Community                                                                    
     Action Program,  also known  as RurAL  CAP.   I started                                                                    
     working  at  RurAL  CAP  in  1986  and  I've  been  the                                                                    
     Executive Director for the past three years.                                                                               
                                                                                                                                
     The Community  Services Block Grant is  federal funding                                                                    
     that  comes to  the State  of Alaska  with the  goal of                                                                    
     reducing  poverty  through  community-based  activities                                                                    
     which lead to a  greater degree of self-sufficiency for                                                                    
     low-income people.                                                                                                         
                                                                                                                                
     The  funding   comes  to  the  Division   of  Community                                                                    
     Advocacy   of  the   Alaska  Department   of  Commerce,                                                                    
     Community and Economic  Development and is administered                                                                    
     by  the state  Block Grant  Program Manager,  Jo Grove,                                                                    
     and  Grant  Administrator  Jill  Davis.    They  do  an                                                                    
     excellent job handling  the day-to-day responsibilities                                                                    
     of the CSBG program  including preparing and monitoring                                                                    
     the State Plan.                                                                                                            
                                                                                                                                
     As the  only Community  Action Agency in  Alaska, RurAL                                                                    
     CAP  is the  only  eligible recipient  for  90% of  the                                                                    
     state's CSBG funds.   In FY 2008, RurAL  CAP expects to                                                                    
     receive  approximately $2.4  million in  CSBG funds  to                                                                    
     support programs and services for low-income people.                                                                       
                                                                                                                                
     RurAL   CAP  is   a   private,  statewide,   non-profit                                                                    
     organization with  501(c)(3) tax exempt status.   It is                                                                    
     one  of more  than 1,000  Community Action  Agencies in                                                                    
     the  nation which  all work  to build  self-sufficiency                                                                    
     and empowerment  among low-income people who  desire to                                                                    
     pull themselves up out of poverty.                                                                                         
                                                                                                                                
     RurAL  CAP   is  governed  by  a   24-member  Board  of                                                                    
     Directors  representing  every   major  region  of  the                                                                    
     state.   The tripartite  board is  a balance  of target                                                                    
     area village representatives,  elected public officials                                                                    
     and private sector organizations.                                                                                          
                                                                                                                                
     The  board  meets  quarterly, identifies  major  issues                                                                    
     affecting  low-income people  and  sets agency  policy.                                                                    
     The staff  implements board  policy through  an applied                                                                    
     strategic  plan and  oversight of  agency programs  and                                                                    
     services.                                                                                                                  
                                                                                                                                
     RurAL  CAP will  use  this core  funding  from CSBG  to                                                                    
     leverage  approximately $15  to  $20  million in  other                                                                    
     public and  private sector funds to  benefit low-income                                                                    
     Alaskans.   The  agency  employs more  than 350  people                                                                    
     annually  in rural  communities  across Alaska  through                                                                    
     Head  Start, Early  Head  Start,  Parents As  Teachers,                                                                    
     AmeriCorps,  VISTA, and  Weatherization  programs.   In                                                                    
     2006  RurAL CAP  provided  services  in 63  communities                                                                    
     across Alaska.                                                                                                             
                                                                                                                                
     As  an  organization  focused on  alleviating  poverty,                                                                    
     RurAL  CAP applies  the majority  of  its resources  to                                                                    
     rural  communities where  poverty  rates are  typically                                                                  
     three times  higher than in  urban Alaska.  Yet  as the                                                                    
     only community action agency in  Alaska, and one with a                                                                    
     mandate  to  serve  people statewide,  RurAL  CAP  also                                                                    
     provides:                                                                                                                  
                                                                                                                                
        · Head Start services to pre-school children and                                                                        
          their parents in Ketchikan;                                                                                           
        · Home weatherization to qualifying low-income                                                                          
          residents in Juneau;                                                                                                  
        · Affordable housing opportunities to families in                                                                       
          Anchorage; and                                                                                                        
        · Support to UAF social work students through an                                                                        
          AmeriCorps partnership in Fairbanks.                                                                                  
                                                                                                                                
     Typical  of  the  way  RurAL CAP  uses  CSBG  funds  to                                                                    
     leverage services  for some of Alaska's  most needy and                                                                    
     disenfranchised  is the  story  of  the Homeward  Bound                                                                    
     program.   Based in Mountain View,  this program serves                                                                    
     Anchorage's chronic homeless  alcoholic population with                                                                    
     the goal of reintegrating  people back into healthy and                                                                    
     productive lives.                                                                                                          
                                                                                                                                
     The average  Homeward Bound resident  is a 48  year old                                                                    
     Alaska Native male  who has been drinking  for the last                                                                    
     26 years.  He has spent  the last 9 years  homeless and                                                                    
     spent 116 nights  in the last year sleeping  in a local                                                                    
     sobering  station.  Many social  service  professionals                                                                    
     refer  to  this population  as  the  "hard core  street                                                                    
     alcoholics"   and   believe   they  are   the   hardest                                                                    
     population to serve.                                                                                                       
                                                                                                                                
     Seed   money  from   CSBG  was   used  to   help  build                                                                    
     partnerships and  obtain funding  from HUD,  the Alaska                                                                    
     Housing  Finance  Corporation,  and  other  funders  to                                                                    
     support  a  25-bed  facility  and  individualized  case                                                                    
     management  program which  has measurably  improved the                                                                    
     lives of  dozens of Homeward Bound  residents.  Through                                                                    
     participation  in Homeward  Bound,  our residents  have                                                                    
     moved from decades of  homelessness to meaningful lives                                                                    
     in the Anchorage  community.  This program  has been so                                                                    
     successful that  the Substance Abuse and  Mental Health                                                                    
     Services  Administration  of  the  U.S.  Department  of                                                                    
     Health  and Human  Services recently  inducted it  as a                                                                    
     Promising  Practice.  This   national  recognition  has                                                                    
     confirmed  what RurAL  CAP has  known since  we started                                                                    
     the  program  ten  years  ago  -  Homeward  Bound  gets                                                                    
     chronic homeless alcoholics off  the streets.  It helps                                                                    
     the residents  secure and  maintain stable  housing and                                                                    
     jobs.  Simply put, the program works.                                                                                      
                                                                                                                                
     The  State  Plan  before you  today  contains  detailed                                                                    
     examples of  outcome measures for  each of  RurAL CAP's                                                                    
     CSBG-supported  programs.     This  system  of  Results                                                                    
     Oriented  Management and  Accountability, or  ROMA, has                                                                    
     received  national recognition  within  the network  of                                                                    
     social  service  and  community action  agencies  as  a                                                                    
     landmark model of comprehensive outcome evaluation.                                                                        
                                                                                                                                
     With  laser-like attention  focused on  identifying and                                                                    
     documenting  measurable changes  in the  conditions and                                                                    
     behaviors of  the people we  serve, RurAL  CAP's system                                                                    
     of  program evaluation  and  accountability keeps  both                                                                    
     our human and financial  resources focused on improving                                                                    
     the lives  of low-income Alaskans in  ways that produce                                                                    
     measurable results.                                                                                                        
                                                                                                                                
     If I  were to put  myself in the  shoes of a  member of                                                                    
     the general public,  an elected official or  one of our                                                                    
     funders, this is what I might think:                                                                                       
                                                                                                                                
     So  ... you  got all  this money.   You  ran all  these                                                                    
     programs.  So  what!  So what difference  did you make?                                                                    
     How many lives  did you actually improve?   How did you                                                                    
     improve  them?   What  did we  buy  with such  valuable                                                                    
     public resources?                                                                                                          
                                                                                                                                
      Well we can tell you that.  We can tell you exactly                                                                       
     what difference we made.                                                                                                   
                                                                                                                                
        · We  can  tell you  that  during  the 2005  -  2006                                                                    
          program  year,  we conducted  1,622  developmental                                                                  
          screenings  through  our  Head Start,  Early  Head                                                                    
          Start, and Parents As  Teachers programs.  Through                                                                    
          these early  detection screenings we were  able to                                                                    
          identify if  a child had difficulty  with hearing,                                                                    
          vision,  language,  or  other  potential  learning                                                                    
          barriers so  that we could  provide them  with the                                                                    
          services    they    need   before    they    enter                                                                    
          Kindergarten.                                                                                                         
                                                                                                                                
        · We  can  tell  you  that  our  AmeriCorps  members                                                                    
          installed carbon  monoxide alarm detectors  in 963                                                                  
          homes  protecting 3,456  rural residents  from the                                                                  
          harmful affects of this silent killer.                                                                                
                                                                                                                                
        · We  can  tell you  that  during  the 2006  program                                                                    
          year,  64  low-income  households  experienced  an                                                                  
          average 31%  savings in their annual  energy costs                                                                    
          during  the  first  year after  their  homes  were                                                                    
          weatherized.                                                                                                          
                                                                                                                                
        · We can tell you that  during the 2006 fiscal year,                                                                    
          8    disabled   Elders    received   accessibility                                                                  
          improvements   to   their    homes   through   our                                                                    
          rehabilitation    and    weatherization    program                                                                    
          ensuring   that  they   could  continue   to  live                                                                    
          independently.                                                                                                        
                                                                                                                                
        · We  can tell  you  that our  AmeriCorps and  VISTA                                                                    
          members  organized  or   supported  1,758  healthy                                                                  
          activities for  youth and  that our  VISTA members                                                                    
          brought $10.5 million dollars  in cash and in-kind                                                                  
          resources into their rural communities.                                                                               
                                                                                                                                
        · We can  tell you  that 100%  of the  preschool age                                                                  
          children who graduated  from our Child Development                                                                    
          Center  last  year  entered  kindergarten  school-                                                                    
          ready and prepared to learn.                                                                                          
                                                                                                                                
        · And  we  can  even  tell  you  that  in  2006,  17                                                                  
          formerly homeless residents  of the Homeward Bound                                                                    
          program,  who had  been picked  up  more than  100                                                                    
          times by  the Community Service Patrol  during the                                                                    
          12  months before  coming into  the program,  have                                                                    
          successfully  graduated and  moved  into homes  of                                                                    
          their own.                                                                                                            
                                                                                                                                
     RurAL  CAP  strives  to be  a  responsible  steward  of                                                                    
     public  funds.   We run  some of  the most  scrutinized                                                                    
     federal  and state  programs  in  the nation  including                                                                    
     Head   Start,   Alaska  Housing   Finance   Corporation                                                                    
     programs, AmeriCorps, and CSBG.   We pride ourselves on                                                                    
     being  a  grantee  in  good standing  for  all  of  our                                                                    
     programs  and  services.   We  place  a high  value  on                                                                    
     getting  clean financial  and  program  audits, and  we                                                                    
     strive  to  provide  cost-effective services  that  get                                                                    
     results.                                                                                                                   
                                                                                                                                
     Again I want to thank  our grant administrators and the                                                                    
     members  of the  House Community  and Regional  Affairs                                                                    
     Committee  for participating  in this  hearing and  for                                                                    
     your interest in the Community  Services Block Grant FY                                                                    
     2008 State Plan.                                                                                                           
                                                                                                                                
8:25:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA expressed  frustration  with  the lack  of                                                               
indexing in  the CSBG State  Plan book.   She then  asked whether                                                               
she could obtain a breakdown of statistics for specific areas.                                                                  
                                                                                                                                
MR.  HARDENBERGH said  he would  provide  that to  Representative                                                               
Cissna.   He pointed out  that there are some  additional summary                                                               
documents that  present some of  the very detailed outcomes  in a                                                               
more readily accessible format.                                                                                                 
                                                                                                                                
MS. DAVIS then pointed out  that following the attachments in the                                                               
CSBG State Plan book is the  final report, which includes most of                                                               
the statistics mentioned.                                                                                                       
                                                                                                                                
8:27:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN   recalled  Mr.   Hardenbergh's  testimony                                                               
regarding the  17 individuals who  participated in  the [Homeward                                                               
Bound  program] and  ultimately moved  in to  affordable housing.                                                               
He asked if those homes were subsidized by RurAL CAP.                                                                           
                                                                                                                                
MR.  HARDENBERGH  explained  that  some  of  the  Homeward  Bound                                                               
graduates  do  move into  some  of  the  40 units  of  affordable                                                               
housing  maintained  by RurAL  CAP  in  Anchorage.   However,  he                                                               
pointed  out  that the  aforementioned  housing  is open  to  the                                                               
public and  thus it's a matter  of timing.  Mr.  Hardenbergh also                                                               
pointed  out  that individuals  in  those  units pay  full  rent,                                                               
although there's  a subsidy  in that  the Alaska  Housing Finance                                                               
Corporation (AHFC) provided RurAL CAP  with below market loans in                                                               
order to purchase  the properties.  In order to  obtain the below                                                               
market loans,  RurAL CAP has  to verify that they're  occupied by                                                               
low-income residents.                                                                                                           
                                                                                                                                
REPRESENTATIVE  NEUMAN surmised  then that  the housing  of those                                                               
[17]  individuals was  subsidized through  RurAL CAP.   Recalling                                                               
comments that $2.4 million is  going to rural Alaska, he inquired                                                               
as to what is considered rural Alaska.                                                                                          
                                                                                                                                
MR. HARDENBERGH  opined that Alaska  law contains  many different                                                               
definitions  of rural.    He reiterated  that  RurAL CAP  doesn't                                                               
limit its  services to rural Alaska  as RurAL CAP is  a statewide                                                               
organization that provides services throughout the state.                                                                       
                                                                                                                                
REPRESENTATIVE NEUMAN  asked if all  of RurAL CAP's  programs are                                                               
available to all low-income people in Alaska.                                                                                   
                                                                                                                                
MR.  HARDENBERGH  replied yes,  where  there's  a program.    For                                                               
example,   RurAL  CAP   provides  Head   Start  services   in  24                                                               
communities, but  doesn't have the  option of serving  those low-                                                               
income  individuals interested  in  Head Start  outside those  24                                                               
communities.                                                                                                                    
                                                                                                                                
8:32:44 AM                                                                                                                    
                                                                                                                                
JO  GROVE,   Grants  Manager,   Fairbanks  Office,   Division  of                                                               
Community   Advocacy,  Department   of  Commerce,   Community,  &                                                               
Economic Development,  added that she has  personally worked with                                                               
RurAL CAP  on the  CSBG program  for over 16  years.   She opined                                                               
that RurAL  CAP has  demonstrated a  sincere interest  in helping                                                               
low-income  Alaskans.    Furthermore,   it  has  been  recognized                                                               
nationally  as  a leader  in  providing  innovative programs  and                                                               
developing exemplary outcome measures.                                                                                          
                                                                                                                                
8:34:09 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX, upon  determining no one else  wished to testify                                                               
on the CSBG program, closed public testimony.                                                                                   
                                                                                                                                
8:34:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked if  these programs are  available to                                                               
everyone in the state equally.                                                                                                  
                                                                                                                                
MS.  DAVIS pointed  out that  the  24-member board  of RurAL  CAP                                                               
represents the entire  state and makes decisions  on programs and                                                               
policies.                                                                                                                       
                                                                                                                                
8:36:06 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH asked  if individual  programs submit  grant                                                               
applications to  RurAL CAP  since it receives  90 percent  of the                                                               
[CSBG program] funding.                                                                                                         
                                                                                                                                
MR. HARDENBERGH informed  the committee that the  RurAL CAP board                                                               
of directors  goes through a  strategic planning process  for the                                                               
entire organization  and submits a single  funding application to                                                               
the state  for the  use of CSBG.   He noted  that RurAL  CAP also                                                               
submits many other funding applications  to other federal, state,                                                               
and private sources for funds to meet the mission of RurAL CAP.                                                                 
                                                                                                                                
CO-CHAIR  FAIRCLOUGH surmised  then that  RurAL CAP  doesn't help                                                               
other  nonprofits by  providing a  grant opportunity  to dovetail                                                               
with what RurAL CAP is requesting.                                                                                              
                                                                                                                                
MR. HARDENBERGH said that RurAL  CAP doesn't use the CSBG funding                                                               
for  such, but  RurAL  CAP  does have  a  small separate  private                                                               
foundation  that provides  small  grants to  other nonprofits  or                                                               
other local city or tribal governments for small projects.                                                                      
                                                                                                                                
CO-CHAIR FAIRCLOUGH explained that  she brings this issue forward                                                               
because  there  are many  nonprofits  in  local communities  that                                                               
already  have  structure to  provide  a  service.   The  federal,                                                               
state, and  local governments, she  opined, don't  want duplicate                                                               
services.    Therefore,  she expressed  concern  if  RurAL  CAP's                                                               
strategic plan isn't folding in  the resources available in local                                                               
communities  in rural  Alaska.   She highlighted  that there  are                                                               
many  other  resources  with bureaucracies  in  place  that  have                                                               
connections inside  some communities to implement  programs.  Co-                                                               
Chair  Fairclough  expressed  the  need  for  there  to  be  some                                                               
collaboration  in local  communities  to  support what's  already                                                               
being done with RurAL CAP funding.                                                                                              
                                                                                                                                
8:39:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA  asked   if   [CSBG]  is   part  of   the                                                               
legislature's  budget  process  and  if so,  has  it  been  fully                                                               
funded.                                                                                                                         
                                                                                                                                
MS. GROVE  related that the  department requests  federal receipt                                                               
authority  for what  it estimates  it will  receive for  the CSBG                                                               
program.  In terms of  individual budgets for each program, those                                                               
are  included  in  the  CSBG  State  Plan,  but  those  would  be                                                               
estimates at  this point.   Once the department knows  the amount                                                               
of [federal funds] it will  receive, RurAL CAP provides an update                                                               
with  the exact  amount  received  by the  program.   In  further                                                               
response to  Representative Cissna,  Ms. Grove confirmed  that no                                                               
matching  state  funds are  required  or  provided for  the  CSBG                                                               
program.  The department would  probably know the amount of funds                                                               
available next fall, in October or November.                                                                                    
                                                                                                                                
8:42:20 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH clarified that the  CSBG program may not have                                                               
a  requirement  for  matching  state  funds,  but  the  Community                                                               
Development Block  Grant in Anchorage  does.  She  suggested that                                                               
Representative   Cissna  may   be  thinking   of  the   Community                                                               
Development Block Grant program.                                                                                                
                                                                                                                                
REPRESENTATIVE  CISSNA opined  that it  would be  a good  idea to                                                               
have an  understanding of the  potential overlap of  services and                                                               
even obtain some reporting to compare budget requests.                                                                          
                                                                                                                                
8:43:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN expressed  interest in  a smaller  report.                                                               
He  then inquired  as  to  what will  happen  when the  projected                                                               
federal  funding decreases  and  deficit situation  of the  state                                                               
arrive.                                                                                                                         
                                                                                                                                
MS.  GROVE said  that the  department doesn't  know exactly  what                                                               
will happen  with federal funding.   This plan and  the projected                                                               
$2.4  million  estimate   of  federal  funds  is   based  on  the                                                               
historical  funding  of the  program.    Since the  CSBG  program                                                               
doesn't require  a state match,  [any change in  federal funding]                                                               
would  have no  bearing on  the state.   In  further response  to                                                               
Representative  Neuman,  Ms.  Grove  confirmed  that  there's  no                                                               
contingency plan for a time of decreased federal funding.                                                                       
                                                                                                                                
8:45:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  expressed the  need to  grasp how  best to                                                               
coordinate [programs and  funding] in order to  avoid overlap and                                                               
waste.                                                                                                                          
                                                                                                                                
The committee took an at-ease from 8:47 p.m. to 9:02 a.m.                                                                       
                                                                                                                                
HB 232-ALCOHOL SALE/PURCHASE/DISTRIBUTION                                                                                     
                                                                                                                                
9:02:41 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  final order of business would                                                               
be  HOUSE   BILL  NO.  232,   "An  Act  relating  to   the  sale,                                                               
distribution, and purchase of alcoholic  beverages; relating to a                                                               
state  database for  records of  certain  purchases of  alcoholic                                                               
beverages;  relating  to the  relocation  of  a license  to  sell                                                               
alcoholic  beverages; relating  to  procedures  for local  option                                                               
elections for  control of alcoholic beverages;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
CO-CHAIR  LEDOUX further  announced  that she's  not planning  on                                                               
moving  HB 232  out  of committee  today.   She  then noted  that                                                               
members of the  Bush Caucus were invited to  participate since HB
232 impacts rural  communities of the state.  She  then noted the                                                               
presence of Representatives Edgmon and Nelson.                                                                                  
                                                                                                                                
9:03:33 AM                                                                                                                    
                                                                                                                                
MIKE  PAWLOWSKI,  Staff  to Representative  Kevin  Meyer,  Alaska                                                               
State  Legislature,  explained  that  Sections  1-2  establish  a                                                               
statewide database  for the  written order  system.   The written                                                               
order system  sets a  limit in  the amount of  what a  person can                                                               
purchase  in a  given month  or what  a licensee  can ship.   The                                                               
database is envisioned  to allow the licensee to  stay within the                                                               
law and the  individual to track the amount of  alcohol they have                                                               
had shipped.   Section 3 prohibits a package  store from shipping                                                               
alcohol to a  person other than that person's  address.  Although                                                               
the aforementioned  is specified  in statute, this  clarifies the                                                               
intent  in statute.    Sections  4-5 address  the  transfer of  a                                                               
liquor license  within a borough to  a city, in which  the Mat-Su                                                               
Borough   expressed  interest   in  order   to  foster   economic                                                               
development.    He  explained  that  since  liquor  licenses  are                                                               
limited by  population and  under a  limited entry  system, there                                                               
might be several  licenses in a borough while  very few available                                                               
in the city.  Sections 4-5  specifies that when a local governing                                                               
body  decides  that the  transfer  of  a  liquor license  from  a                                                               
borough  to a  city is  appropriate, it  can allow  the transfer.                                                               
Sections 6, 7, 11, and  12 prohibit an individual from purchasing                                                               
alcoholic beverages  in a  local option  area from  an individual                                                               
selling alcohol in violation of  the local option.  Mr. Pawlowski                                                               
pointed  out  that  current  statute  only  specifies  that  it's                                                               
illegal to sell  [alcohol to individuals in violation  of a local                                                               
option]  while  it doesn't  speak  to  the individual  purchasing                                                               
[alcohol in violation of a local  option].  Section 8 changes the                                                               
time between  the adoption of a  local option and an  election to                                                               
change  that option  from  12 months  to 24  months.   Section  9                                                               
prohibits a  person from purchasing  alcohol by written  order on                                                               
behalf of  another person.   Section 10 prohibits  the possession                                                               
of ingredients for home brew.   Sections 13-14 are clarifications                                                               
to forfeiture  provisions.  Section 15,  a substantive provision,                                                               
allows the establishment of a  pilot project for alcohol delivery                                                               
sites.  Sections 16-20 are instructions to the revisor.                                                                         
                                                                                                                                
9:07:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN expressed  concern  with  Section 10,  and                                                               
inquired as  to who  determines "intent".   He then  stressed his                                                               
concern with regard to a  state database that tracks individuals'                                                               
liquor purchases,  which would seem  to be  personal information.                                                               
Representative Neuman  then turned attention to  Andy Lundquist's                                                               
email in which  she highlights that computer  access is necessary                                                               
to fulfill  the mandate in  HB 232, which  could be a  burden for                                                               
small licensees.                                                                                                                
                                                                                                                                
MR. PAWLOWSKI  said that  the sponsor is  aware of  those issues.                                                               
He acknowledged  that the concern  with Section 10 is  valid, but                                                               
suggested  that having  the ingredients  in conjunction  with the                                                               
equipment necessary to  brew alcohol would seem to  make it clear                                                               
that  an individual  is  brewing  alcohol.   With  regard to  the                                                               
concern  surrounding  privacy,  he  pointed out  that  the  state                                                               
already tracks written  orders.  To address  the privacy concern,                                                               
he  suggested that  perhaps the  database  could be  purged on  a                                                               
regular basis.   Therefore, the state  would collect information,                                                               
but not retain it.  The  concern for small licensees is fair, but                                                               
he pointed  out that the  written orders are done  mainly through                                                               
larger businesses.   In  fact, most often  the small  licensee is                                                               
purchasing large  volumes from one  of the hub communities.   Mr.                                                               
Pawlowski related  that the sponsor  feels that licensees  have a                                                               
responsibility to ensure that he/she isn't violating the law.                                                                   
                                                                                                                                
9:11:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  pointed out that with  the methamphetamine                                                               
database the store keeps the  database and the state requests the                                                               
database if  it's needed.   Perhaps, the aforementioned  could be                                                               
done with alcohol, he suggested.                                                                                                
                                                                                                                                
MR. PAWLOWSKI said it's something the sponsor could review.                                                                     
                                                                                                                                
9:12:06 AM                                                                                                                    
                                                                                                                                
CO-CHAIR   FAIRCLOUGH  reminded   the  committee   that  HB   232                                                               
implements  several of  the recommendations  made  in the  Alaska                                                               
Rural  Justice  and  Law Enforcement  Commission  Report.    This                                                               
legislation  allows Village  Public  Safety  Officers (VPSOs)  as                                                               
well  as state  troopers to  enter  dry and  damp communities  to                                                               
garner a  better case when  enforcing the local option  in place.                                                               
Co-Chair Fairclough  reviewed the  committee's concerns  from the                                                               
last  meeting  and today's  meeting.    With regard  to  concerns                                                               
expressed  regarding the  local  elections, she  opined that  the                                                               
state isn't  trying to  control local  elections but  rather that                                                               
more time is  allowed for a community to [settle  into] its local                                                               
option before changing it.                                                                                                      
                                                                                                                                
9:14:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON related  her understanding  that under  HB
232 there can't be an election  [on the local option] prior to 24                                                               
months after the existing local option was implemented.                                                                         
                                                                                                                                
MR.  PAWLOWSKI   explained  that   Section  8   specifies  longer                                                               
timeframes in  which [a community  with a local option  in place]                                                               
can  have  a  special  election  to   remove  or  go  to  a  less                                                               
restrictive option.                                                                                                             
                                                                                                                                
CO-CHAIR  LEDOUX surmised  then  that a  community  with a  local                                                               
option could go to more restrictive option within short period.                                                                 
                                                                                                                                
MR. PAWLOWSKI deferred to Ms. Carpeneti.                                                                                        
                                                                                                                                
9:16:05 AM                                                                                                                    
                                                                                                                                
ANNE  CARPENETI,  Assistant   Attorney  General,  Legal  Services                                                               
Section -  Juneau, Criminal Division, Department  of Law, pointed                                                               
out that  Section 8 is  current law.   Current law  provides that                                                               
there can't  be an election that  would remove a local  option or                                                               
adopt a less restrictive option  within 12 months [of adopting or                                                               
changing a local  option].  After hearings  throughout the state,                                                               
the Alaska  Rural Justice and Law  Enforcement Commission decided                                                               
that  the  aforementioned probably  wasn't  adequate  time for  a                                                               
local option to  take effect.  Therefore,  the recommendation was                                                               
to  extend the  time from  12 months  to 24  months.   In further                                                               
response, Ms.  Carpeneti noted that statute  allows elections for                                                               
several local options sooner than 12 months.                                                                                    
                                                                                                                                
9:17:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON asked  if anything  precludes a  community                                                               
from placing such a question on a regular ballot.                                                                               
                                                                                                                                
MS. CARPENETI  said she believes  that's allowed, but  offered to                                                               
confirm that.                                                                                                                   
                                                                                                                                
9:18:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON inquired as to  the meaning of the language                                                               
in Section 8 on lines 19-20.                                                                                                    
                                                                                                                                
MS.  CARPENETI  explained  that   under  current  law  there  are                                                               
limitations  regarding  how  often  a community  can  hold  local                                                               
option elections.   She  surmised that  the Alaska  Rural Justice                                                               
and Law  Enforcement Commission was probably  thinking that since                                                               
the time between elections was  changed from once every 12 months                                                               
to 24 months,  then it would probably be necessary  to extend the                                                               
general time period between elections.   Ms. Carpeneti reiterated                                                               
her understanding  that the notion  was to provide  local options                                                               
more time  to take effect as  there are adjustments that  have to                                                               
be made,  such as  the closure  of package stores.     In further                                                               
response to  Representative Edgmon, Ms. Carpeneti  clarified that                                                               
current law  provides that  a community  can't remove  an option,                                                               
but it can adopt a more restrictive option in less time.                                                                        
                                                                                                                                
9:21:30 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  related her understanding that  communities will                                                               
have to  abide by this election  law; it isn't a  local option to                                                               
adopt the time periods specified in HB 232.                                                                                     
                                                                                                                                
MS. CARPENETI replied yes.                                                                                                      
                                                                                                                                
MR. PAWLOWSKI related his understanding  that the ballot comes at                                                               
a regular  special election  that's left  to the  municipality to                                                               
decide, which is clearly stated in AS 04.11.507(b):                                                                             
                                                                                                                                
          (b) Upon receipt of a petition of a number of                                                                         
     registered voters  equal to 35  percent or more  of the                                                                    
     number  of votes  cast at  the  last regular  municipal                                                                    
     election, the  local governing  body of  a municipality                                                                    
     shall place upon a separate  ballot at the next regular                                                                    
     election,  or at  a special  election, whichever  local                                                                    
     option,  change in  local option,  or removal  of local                                                                    
     option  constitutes the  subject of  the petition.  The                                                                    
     local governing body shall conduct the election under                                                                      
     the election ordinance of the municipality.                                                                                
                                                                                                                                
9:23:02 AM                                                                                                                    
                                                                                                                                
MS.   CARPENETI,  in   response   to  an   earlier  question   by                                                               
Representative  Neuman, clarified  that the  database applies  to                                                               
local  option  areas  that  are  damp  only.    Furthermore,  the                                                               
database applies  to written orders  by people who live  in local                                                               
option damp  areas.   Currently, before  responding to  a written                                                               
order from a  resident of a local option  community, the licensee                                                               
is  required to  keep  records  of purchases  for  a  year.   The                                                               
licensee  is required  to notify  the Alcoholic  Beverage Control                                                               
Board  ("ABC Board")  of  those ordering  more  alcohol than  the                                                               
local  option allows.   Ms.  Carpeneti  explained that  currently                                                               
there is  no mechanism for a  licensee to see if  other licensees                                                               
have filled the order for  the month, which the proposed database                                                               
in HB 232 would provide.                                                                                                        
                                                                                                                                
REPRESENTATIVE  NEUMAN  expressed  concern  that  small  business                                                               
owners, under  HB 232, would  be required  to have a  computer in                                                               
order to  report this information  to a database.   He questioned                                                               
how far government can go into a private business.                                                                              
                                                                                                                                
MS.  CARPENETI pointed  out that  the written  orders are  mainly                                                               
filled by large  licensees in Anchorage.  Depending  upon how the                                                               
database  is established,  the law  requires that  the ABC  Board                                                               
work  with licensees,  which she  assumed  could be  done with  a                                                               
phone call.                                                                                                                     
                                                                                                                                
9:26:20 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH  clarified that the data  is already required                                                               
to be gathered.  The only thing  that's new is that the ABC Board                                                               
would have that data from those  who distribute alcohol to dry or                                                               
damp communities.   Co-Chair Fairclough  opined that  more people                                                               
could access the  existing database than would be  the case under                                                               
the proposed database in HB 232.                                                                                                
                                                                                                                                
9:27:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON related  her understanding  that very  few                                                               
companies  do  written orders  for  which  a  log must  be  kept.                                                               
Furthermore, a  limit as to how  much can be imported  per person                                                               
in damp communities  already exists.  She pointed  out that there                                                               
are ways in  which to play the system and  make it more difficult                                                               
to track  the importation  of alcohol.   The reason,  she opined,                                                               
that a  database is  necessary is  for those  who want  to import                                                               
more alcohol  than is legally  allowed for  personal consumption.                                                               
This legislation  attempts to prevent  gaming the  existing laws.                                                               
She  further opined  that Alaska  is a  frontier state,  which is                                                               
evident in the  hub communities where residents feel  they have a                                                               
constitutional  right  to drink  alcohol.    However, the  Alaska                                                               
Constitution  doesn't   specify  that.     Representative  Nelson                                                               
pointed out that many rural communities  want to be dry, but have                                                               
difficulty  doing so  because the  neighboring community  is wet.                                                               
Many  rural communities  want to  be dry  and are  saying that  a                                                               
system that's  harder to buy  and sell alcohol is  necessary, she                                                               
said.   Representative Nelson noted  her agreement  with Co-Chair                                                               
Fairclough's  earlier  statements,  adding   that  she  isn't  as                                                               
concerned with the statewide database as others.                                                                                
                                                                                                                                
9:31:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON asked whether those  who do ship alcohol to                                                               
rural Alaska were  consulted in terms of the  additional work and                                                               
cost to them.                                                                                                                   
                                                                                                                                
MR. PAWLOWSKI  replied yes, [the  sponsor] has spoken with  a few                                                               
[licensees that  ship alcohol  to rural Alaska].   He  then posed                                                               
the licensee's  perspective in which  the licensee would  want to                                                               
ensure that he/she follows  AS 04.11.150(g), although [currently]                                                               
it's next to  impossible for a licensee to comply  because of the                                                               
possibility of gaming.   Therefore, the database  provides a tool                                                               
for the licensees  to ensure they are complying with  the law and                                                               
for the communities to control the importation of alcohol.                                                                      
                                                                                                                                
9:32:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX  asked  if it's  currently  illegal  to  consume                                                               
alcohol in a dry community.                                                                                                     
                                                                                                                                
MS. CARPENETI replied yes.                                                                                                      
                                                                                                                                
CO-CHAIR LEDOUX then asked if  that's been challenged on the same                                                               
grounds as the consumption of marijuana in the Raven decision.                                                                
                                                                                                                                
MS. CARPENETI related  that the local option  laws were litigated                                                               
in  relation to  constitutionality back  in the  1980s and  early                                                               
1990s  when first  adopted.    The local  option  laws have  been                                                               
upheld  by the  court system.   In  further response  to Co-Chair                                                               
LeDoux, Ms.  Carpeneti related her  understanding that  the local                                                               
options  were upheld  in the  context  of criminal  prosecutions.                                                               
She offered  to provide  the committee with  the decisions.   She                                                               
then  mentioned,   in  response  to  earlier   queries  regarding                                                               
methamphetamines, that  the federal government is  discussing the                                                               
use  of a  database  to thwart  situations  in which  individuals                                                               
purchase  the  maximum  amount  of  cold  medicine  from  various                                                               
stores.   Therefore, the use of  the proposed database in  HB 232                                                               
isn't that unusual.                                                                                                             
                                                                                                                                
9:34:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON  informed  the committee  that  for  those                                                               
making  a  written order  in  Bethel,  it's  not delivered  to  a                                                               
person's residence  but rather it's  sent via air carrier  and is                                                               
picked up from the air  carrier.  The aforementioned is addressed                                                               
in Section 3  of the legislation.   Representative Nelson offered                                                               
that a  large reason  for the  alcohol delivery  site is  so that                                                               
residents of a dry community can't  order and pick it up from the                                                               
freight office  and drive  home.  Those  picking up  alcohol from                                                               
the alcohol delivery site must be from a damp community.                                                                        
                                                                                                                                
CO-CHAIR  LEDOUX  posed  a  situation  in  which  a  resident  of                                                               
Kwethluk,  a dry  community, visits  Bethel for  a week  and that                                                               
Kwethluk resident wants to do  some entertaining while in Bethel.                                                               
She  asked  whether that  Kwethluk  resident  would be  able  [to                                                               
purchase alcohol while in Bethel].                                                                                              
                                                                                                                                
REPRESENTATIVE NELSON said that those  from a Barrow area village                                                               
can't pickup alcohol from the delivery site.                                                                                    
                                                                                                                                
9:36:44 AM                                                                                                                    
                                                                                                                                
MS.  CARPENETI,   in  response   to  an  earlier   question  from                                                               
Representative  Edgmon,  pointed  out   that  the  definition  of                                                               
"established village" is found in AS 04.24.080(9), which says:                                                                  
                                                                                                                                
     (9) "established  village" means an area  that does not                                                                    
     contain  any part  of an  incorporated city  or another                                                                    
     established village and that is                                                                                            
          (A) an unincorporated community that is in the                                                                        
     unorganized borough  and that has 25  or more permanent                                                                    
     residents; or                                                                                                              
          (B) an unincorporated community that is in an                                                                         
     organized borough, has 25  or more permanent residents,                                                                    
     and                                                                                                                        
          (i) is on a road system and is located more than                                                                      
     50  miles  outside the  boundary  limits  of a  unified                                                                    
     municipality, or                                                                                                           
        (ii) is not on a road system and is located more                                                                        
     than 15 miles outside the boundary limits of a unified                                                                     
     municipality;                                                                                                              
                                                                                                                                
REPRESENTATIVE EDGMON asked then whether  HB 232 applies to those                                                               
communities with populations of 25 or less.                                                                                     
                                                                                                                                
MS.  CARPENETI related  her  understanding that  an  area with  a                                                               
population of less than 25  wouldn't be considered an established                                                               
village  and wouldn't  be  able  to adopt  a  local  option.   In                                                               
further  response, Ms.  Carpeneti specified  that HB  232 doesn't                                                               
change the local  option law in any major way  that would [change                                                               
the aforementioned].                                                                                                            
                                                                                                                                
9:38:46 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX  drew attention to  Levelock, a community  with a                                                               
population  of  less  that  25  permanent  residents,  and  asked                                                               
whether it would be able to adopt a local option to be dry.                                                                     
                                                                                                                                
MS. CARPENETI  said she  would need  more information.   However,                                                               
she  noted that  [the local  option  law] is  based on  permanent                                                               
residents.                                                                                                                      
                                                                                                                                
CO-CHAIR LEDOUX  then posed a  situation in which a  village with                                                               
30 residents enacts a law to be  damp or dry.  She inquired as to                                                               
what happens when six people move away from such a village.                                                                     
                                                                                                                                
9:40:50 AM                                                                                                                    
                                                                                                                                
DOUGLAS  GRIFFIN,  Director,  Alcoholic  Beverage  Control  Board                                                               
("ABC Board"),  Department of Public  Safety, said that  [the ABC                                                               
Board]   doesn't   really   address/monitor  a   community   that                                                               
experiences a decline in population.   The [ABC Board] makes sure                                                               
that a community meets the  threshold of [25] permanent residents                                                               
at the time the local option is adopted.                                                                                        
                                                                                                                                
9:42:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR   FAIRCLOUGH,   drawing   from  her   local   government                                                               
experience, said  that a local  vote on  a matter not  covered by                                                               
[or at a more restrictive level]  than state law would be a local                                                               
control issue.                                                                                                                  
                                                                                                                                
9:43:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA inquired as to how PO Boxes are addressed.                                                                
                                                                                                                                
REPRESENTATIVE  NELSON said  she  believes that  it's illegal  to                                                               
ship alcohol through the mail.                                                                                                  
                                                                                                                                
MR.  GRIFFIN  pointed out  that  under  13 ACC  104.645(c)(5)  it                                                               
requires the resident address of the purchaser.                                                                                 
                                                                                                                                
9:45:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON requested explanation of Sections 13-14.                                                                  
                                                                                                                                
MS.   CARPENETI  characterized   Sections  13-14   as  conforming                                                               
amendments.   She explained that  current law prohibits  a person                                                               
from  bootlegging  alcohol but  doesn't  prohibit  a person  from                                                               
purchasing  bootleg alcohol.   This  legislation  would make  the                                                               
purchase  of alcohol  from a  bootlegger a  class A  misdemeanor.                                                               
She further  explained that  the forfeiture  statutes in  Title 4                                                               
allow forfeiture  of airplanes,  boats, automobiles,  and various                                                               
other  types of  transportation  that  transport bootleg  alcohol                                                               
into  a community  in violation  of  the law.   This  legislation                                                               
would  allow  the existing  law,  forfeiture  of the  alcohol  in                                                               
connection  with  a conviction  for  selling,  to continue  while                                                               
excluding  the  forfeiture of  vehicles  in  connection with  the                                                               
conviction for purchasing.                                                                                                      
                                                                                                                                
MR.   PAWLOWSKI   pointed   out    that   the   provision   cited                                                               
[04.11.499(a)] in Sections 13-14 is from Section 7.                                                                             
                                                                                                                                
MS. CARPENETI  commented that to  make the minor change,  all the                                                               
forfeiture  provisions had  to be  changed to  exclude forfeiture                                                               
under the circumstances of the purchase.                                                                                        
                                                                                                                                
9:47:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  said that  Section 10  is of  concern with                                                               
the  definition  of  "material   and  equipment"  and  "with  the                                                               
intent".  Drawing upon his  experience living in rural Alaska, he                                                               
said that  there are times when  law enforcement is at  odds with                                                               
the local  leadership or a  specific resident and thus  "with the                                                               
intent"   could  mean   various  things.     He   questioned  the                                                               
implications if the language if it's broadly interpreted.                                                                       
                                                                                                                                
MS.  CARPENETI said  that  it's a  specific  intent and  defense,                                                               
which isn't  an uncommon defense  in criminal law.   Furthermore,                                                               
it's the most difficult to prosecute  because it has to be proven                                                               
that  a  person  did  an  act with  the  specific  intent  to  do                                                               
something else.   She pointed  out that there are  other [similar                                                               
statutes]  with  regard  to  the   possession  of  precursors  to                                                               
methamphetamine  with the  intent to  manufacture meth,  which is                                                               
illegal.   She  also pointed  out  that it's  illegal to  possess                                                               
burglary  tools  with  the  intent   to  commit  burglary.    Ms.                                                               
Carpeneti  emphasized that it's  very difficult to prosecute this                                                               
because it  has to  be proven that  the individual  possessed the                                                               
item(s)  with the  specific  intent to  perform  an illegal  act.                                                               
Therefore, she  opined that  the crime addressed  in HB  232 will                                                               
probably  only be  prosecuted  if  there is  an  admission or  an                                                               
extraordinary situation.                                                                                                        
                                                                                                                                
9:49:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON  commented that  just merely  being charged                                                               
[with  purchasing alcohol  in  a dry  community]  is a  hindrance                                                               
itself.                                                                                                                         
                                                                                                                                
MS. CARPENETI  pointed out  that the  aforementioned is  the case                                                               
with all laws.                                                                                                                  
                                                                                                                                
9:50:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON surmised that  the term "vehicle" refers to                                                               
snow machines and all terrain vehicles (ATVs).                                                                                  
                                                                                                                                
MS. CARPENETI replied yes.                                                                                                      
                                                                                                                                
REPRESENTATIVE  NELSON thanked  the committee  for inviting  [the                                                               
Bush Caucus] to comment on HB 232.                                                                                              
                                                                                                                                
9:51:12 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX re-opened public testimony.                                                                                     
                                                                                                                                
9:51:25 AM                                                                                                                    
                                                                                                                                
LOUISE  STUTES expressed  concern with  the provision  allowing a                                                               
license [to  sell alcohol]  from the borough  to be  brought into                                                               
the city.                                                                                                                       
                                                                                                                                
9:52:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX, upon determining no  one else wished to testify,                                                               
closed public  testimony.  She  then announced that HB  232 would                                                               
be held over.                                                                                                                   
                                                                                                                                
9:53:04 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH mentioned that  there is a possible amendment                                                               
to  Section   10  that  would   address  the  concern   that  law                                                               
enforcement could  misuse their  powers.   Per the  amendment the                                                               
language on  page 5, line  29, would read  as follows:   "may not                                                               
possess quantities  of sugar, artificial sugar,  malt, yeast that                                                               
exceed  personal  use  in  excess  of one  year;  and  any  other                                                               
material  or  equipment  with  the specific  intent  to  use  the                                                               
material or equipment to create an alcoholic beverage."                                                                         
                                                                                                                                
9:54:44 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Community  and Regional  Affairs Standing  Committee meeting  was                                                               
adjourned at 9:54:50 AM.                                                                                                      

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