Legislature(2011 - 2012)HOUSE FINANCE 519
02/20/2012 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB279 | |
| HB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 125 | TELECONFERENCED | |
| + | HB 279 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 20, 2012
1:35 p.m.
1:35:30 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:35 p.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
Representative Les Gara
ALSO PRESENT
Representative Mike Hawker, Sponsor; Kris Curtis, Acting
Legislative Auditor, Legislative Audit Division; John Aho,
Chair, Seismic Hazards Safety Commission; Sam Kito,
Technical Engineer, Department of Education and Early
Development; Shirley Gifford, Director, Alcohol Beverage
and Control Board, Department of Public Safety; Kate
Burkhart, Executive Director, Advisory Board on Alcoholism
and Drug Abuse, Department of Health and Social Services;
Rod Combellick, Operations Manager, Divison Of Geologic And
Geophysical Surveys, Department of Natural Resources; Jeff
Jessee, Chief Executive Officer, Alaska Mental Health
Trust, Department of Revenue; Ellen Ganley, Vice Chair,
Alcohol Beverage Control Board, Department of Public
Safety; Dale Fox, President and CEO of Alaska Cabaret,
Hotel, Restaurant, and Retailers Association (CHARR);
Sassan Mossanen, General Manager, Denali Brewing Company
Talkeetna, AK, and President of the Governmental Affairs
Committee for the Brewers Association of Alaska; Robin
Jeffery, Owner, Robin's Landing; Patrick Hayes, Chairman,
Meeting the Challenge; Matt Felix, Director, National
Council on Alcoholism.
PRESENT VIA TELECONFERENCE
Michael O'Hare, Deputy Director of Homeland Security,
Department of Military and Veterans Affairs; Dean Maxwell,
Agent, State Farm Insurance; Jan Wrentmore, Owner, Red
Onion Saloon, Skagway; Brad Johnson, Member, Alaska
Association of Chiefs of Police, Fairbanks; Mark Mew, Chief
of Police, Anchorage Police Department; Bob Winn, Owner, La
Mex.
SUMMARY
HB 125 ALCOHOLIC BEVERAGE CONTROL BOARD
HB 125 was HEARD and HELD in Committee for
further consideration.
HB 279 EXTENDING CERTAIN BOARDS & COMMISSIONS
HB 279 was HEARD and HELD in Committee for
further consideration.
HOUSE BILL NO. 279
"An Act extending the termination dates of the
Board of Nursing, the Board of Dental Examiners,
the Board of Barbers and Hairdressers, the Big
Game Commercial Services Board, the Alcoholic
Beverage Control Board, and the Alaska Seismic
Hazards Safety Commission; and providing for an
effective date."
1:35:38 PM
Co-Chair Stoltze expressed the intent to hear, but hold
both scheduled bills.
1:37:04 PM
Co-Chair Thomas MOVED to ADOPT the proposed Committee
Substitute for HB 279, Work Draft 27-LS0944\I (Martin
2/20/12).
Co-Chair Stoltze OBJECTED for discussion. There being no
objection, the Committee Substitute was adopted.
REPRESENTATIVE MIKE HAWKER, SPONSOR, explained that the
bill extends the sunset dates for five boards and one
commission. Sunset dates are a periodic exercise to
evaluate the performance of boards and commissions.
Extensions are recommended by the Legislative Budget and
Audit Committee. Last session an amendment was added by the
Senate that was vetoed by the Governor, therefore the
reauthorization of the boards and commission was before the
House Finance Committee again. Boards and Commissions
recommended for extension are the Board of Barbers and
Hairdressers (June 30, 2019); the Board of Dental Examiners
(June 30, 2019); the Board of Nursing (June 30, 2019); and
the Alcohol Beverage and Control Board (June 30, 2015).
Added to the bill are the Big Game Commercial Services
(June 30, 2016) and Alaska Seismic Hazard Safety Commission
(June 30, 2014). In reference to the Alaska Seismic Hazard
Safety Commission the audit discovered issues regarding
board members not attending meetings and lack of
accomplishments. Representative Hawker stated that the
Acting Legislative Auditor was available to discuss the
report. He noted that the Department of Military and
Veterans Affairs believed the commission did serve a valid
purpose, but recognized it was not working as well as it
could. The proposed shorter extension is to give the
commission an opportunity to repair their actions. Section
VII established a statute that stated there could not be an
omnibus reauthorization bill.
Co-Chair Stoltze asked if the governor's veto in the
previous session expressed a concern over the omnibus
nature of the bills. Representative Hawker indicated the
governor did not express any concerns. The item at issue
was to not mix policy calls with the simple administrable
activity of extending the dates of board and commissions.
The Senate added a provision that was a policy call related
to one board involving judicial matters that the governor
felt had not been previously vetted in any judiciary
committee and, therefore, it was inappropriate to pass a
bill with the policy call.
1:43:49 PM
Co-Chair Stoltze expressed his approval of the more
professional approach to the extension matter.
Representative Hawker noted again that the Acting
Legislative Auditor was available to answer any questions
regarding the audits. He applauded former Legislative
Auditor, Pat Davidson, for her years of service. In the
interim, Kris Curtis was appointed Acting Legislative
Auditor by the Legislative Budget and Audit Committee.
1:46:43 PM
Representative Guttenberg took issue with the comment that
it was difficult to find board members for the Alaska
Seismic Hazard Safety Commission. He noted that just
because the governor does not want to appoint certain
people to the board does not mean there are not any
interested or qualified individuals to serve. He relayed
that people in the industry want to participate and have
waited to be appointed. He pointed out that some items in
audit report had nothing to do with the board itself. He
questioned if any board members had responded to the
report. He emphasized the importance of a seismic board
especially in setting up seismic codes for building
construction. The insurance industry supports the activity
of the commission. Before the commission was established
the seismic reports generated from California which placed
Alaska into one seismic region. For Alaska to control its
own destiny and understand seismic activity the seismic
board is important to the state. He indicated being
troubled by the boards extension of only two years versus
four years.
1:50:31 PM
Co-Chair Stoltze informed there had been discussion to
eliminate the seismic commission entirely; therefore the
two year extension was a compromise by the administration.
Representative Hawker added there should not only be a
seismic commission, but a functioning and effective seismic
commission. He stood by the state auditor's review of the
board.
1:51:20 PM
Co-Chair Stoltze requested the Acting Legislative Auditor
join Representative Hawker at the table for discussion.
KRIS CURTIS, ACTING LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT
DIVISION, summarized the audit recommendations for the
Alaska Seismic Hazard Safety Commission board. The purpose
of the audit was to determine if the commission should be
extended. It was determined that the commission was
operating effectively and serving a public purpose. The
audit recommended the commission be extended until June 30,
2016. Four recommendations were made to the board: to
develop a strategic plan to mitigate seismic hazard risk in
Alaska, to develop procedures to insure public notice of
meetings were published in a timely manner, to follow
procedures for habitually absent members, and to recommend
to the governor that open positions be filled in a timely
method. Representative Stoltze noted the state auditors
focus on one board and that was the reason for the shorter
extension. Ms. Curtis noted the legislative audit office
recommended a four year extension for the commission.
1:53:12 PM
Vice-chair Fairclough spoke about the board attendance
issue and understood that one board member, missing for
three consecutive meetings, was working in the Gulf of
Mexico. She believed the absence was an exception to the
rule and not the board standard. She wondered if everyone
else on the board was in attendance during that time
period. She questioned if the auditor's recommendation
concerned the one individual's absence or a history of
absenteeism within the board. Ms. Curtis responded that the
commission's own policy recommended replacement after three
absences and the one individual missed ten. The commission
did not recommend termination, but waited until the
individual's term was completed in 2012. Co-Chair Stoltze
asked if this was a systemic problem or a single problem
within the board. Vice-chair Fairclough asked about the
time frame for the ten absences. Ms. Curtis replied the
absences were over year and a half period. Co-Chair Stoltze
questioned again if the attendance issue only reflected on
one person. Ms. Curtis replied it reflected on only one
person.
1:55:01 PM
Representative Guttenberg asked what relationship all the
boards have with the governor in filling the seats. Ms.
Curtis indicated that the recommendation to the governor to
fill open seats in a timely manner was a common
recommendation made in many sunset reports. An insufficient
applicant pool is often the cause for delay. The
recommendation is for the governor's office to work with
the commission because the board can be active in
generating an applicant pool. Representative Guttenberg
wondered if outside the recommendation for the one absent
member, had there been a problem with quorums or other
absent board members. Ms. Curtis replied that the only
documentation indicated one position was open for nine
months and one member was habitually absent. Representative
Guttenberg asked if the governor had names, but simply did
not make the appointment. Ms. Curtis reported that
documentation indicated an insufficient applicant pool.
Representative Guttenberg asked if there was a required
number needed in the applicant pool. He believed the only
need was for at least one qualified individual.
1:57:36 PM
MICHAEL O'HARE, DEPUTY DIRECTOR OF HOMELAND SECURITY,
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS (via
teleconference), voiced his support for the Alaska Seismic
and Hazard Commission. The state relies on industry
professionals who donate their time to provide good science
information. He encouraged support of the commission. Co-
Chair Stoltze asked if there was any objection to the two
year extension. Mr. O'Hare supported a two year extension
rather than doing away with the commission.
2:00:18 PM
DEAN MAXWELL, AGENT, STATE FARM INSURANCE (via
teleconference), voiced his support of HB 279, especially
the reauthorization of the Alaska Seismic Hazard
Commission. He related the ongoing important work of the
commission. As an insurance provider, he understands the
significant impact on people and their lives after a
seismic event. The role of an insurance position on the
seismic board is vital to the commission that is currently
involved in working with the insurance division to provide
a public information brochure on earthquake insurance.
Without the commission, the voice from many different
important sources would not be available.
2:04:22 PM
JOHN AHO, CHAIR, SEISMIC HAZARDS SAFETY COMMISSION,
declared his service on the board for the Alaska Seismic
Hazard Commission and was disturbed by some of the
comments. He testified in support of the extension of the
commission. In response to the audit report, the commission
is currently developing a strategic plan. He explained the
board had a plan that was referred to as a "charter." The
charter meeting established a vision, mission, goals, core
values, and measures of success for the board. The board
has been operating under the charter for years. The
strategic plan is extremely important for long range
commitments. In the area of seismic risk mitigation, a plan
cannot evolve overnight. Dependable scientific back-up is
needed before good decisions can be made. He stressed the
need of not recommending policies as unfunded mandates. He
admitted that there could be an improvement in publishing
notices in a timely manner. The staff has now been
instructed to have notices published at least one week in
advance. Regarding the recommendation to replace members
who have missed meetings, the bi-laws state that three
consecutively unexcused board meetings meant expulsion; the
missing person went to the Gulf of Mexico for a one and a
half year project. He agreed it was remiss of the
commission not to recommend a replacement for the absent
member. He noted that in assisting the governor's office to
fill positions, there is a line-item for interested parties
who might want to serve. He believed the audit
recommendations were helpful, but did not rise to the level
to discontinue the board. He spoke of successful goals made
by the commission.
2:09:43 PM
Mr. Aho continued that the commission is currently working
with FEMA in Kodiak on an earthquake planning scenario. He
would like to continue the process with other cities in
Alaska. He noted yearly presentations given throughout
Alaska by the commission to discuss earthquake mitigation
and spoke of the dedicated meetings of the volunteers on
the board. Co-Chair Stoltze emphasized that the Department
of Natural Resources should have been more involved in the
audit process. He stressed no fault with the volunteer
members of the board. Mr. Aho remarked that the Department
of Natural Resources support has been very good. Co-Chair
Stoltze interjected that the department was only lacking in
the process. Representative Doogan emphasized that the
purpose of the audits was intended to determine any
shortcomings and to help the commission fix any problems.
2:14:22 PM
SAM KITO, TECHNICAL ENGINEER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, read a prepared statement:
The Department of Education and Early Development
(DEED) began working with the Alaska Seismic Hazard
Safety Commission in January 2009.
As the department's appointed representative on the
Schools Committee, I have participated in
teleconferences and have occasionally been able to
participate in the Commission's face-to-face meetings.
During the time that I have been working with the
Commission, they have assisted the department in our
efforts to address seismic safety of schools in the
state.
As you are aware, in many communities in Alaska the
school buildings are designated as emergency shelters,
and where they are not specifically designated
many schools end up serving that function due to their
size and location. Because of these reasons, it is
vitally important for the schools to be constructed
in such a manner as to make them useful during
emergencies.
As you are also aware, DEED administers the School
Construction and Major Maintenance grant and Bond Debt
reimbursement programs. Through these programs, the
department prioritizes school capital projects for
construction, addition, renovation and repair of
school buildings in the state.
The Commission has provided valuable insight and
productive comments as the department developed
revisions to the Capital Improvement Project
Application. These changes allow districts to
separately include costs for seismic investigation and
design in a project request and provide districts with
guidance on the types of costs to include in the
seismic hazard budget category.
The commission also developed a ground acceleration
listing of school facilities for the department that
is currently posted on the DEED School Facilities
website along with a map produced by the Commission
that graphically shows the expected peak ground
acceleration for the various areas of the state. This
information can be combined with other information
such as building age and construction type to help
school districts determine the relative risk of their
facilities to seismic events. This information could
not have been developed by department staff because we
lack the necessary expertise.
In summary, the Department of Education and Early
Development has benefitted from the existence of the
Alaska Seismic Hazard Safety Commission, and supports
extension of the Commission.
Representative Costello asked if charter schools in private
rented buildings were inspected. Mr. Kito replied that
charter schools were leased by the charter or the district
and codes are not enforced for those facilities. If the
facilities are purchased by the district to serve as a
district facility for the charter, then those schools would
need to meet current codes.
2:18:25 PM
SHIRLEY GIFFORD, DIRECTOR, ALCOHOL BEVERAGE AND CONTROL
BOARD, DEPARTMENT OF PUBLIC SAFETY, understood the
importance of the board's ending on June 30, 2012. She
supported the continuation of the ABC Board remarking on
many positive changes made within the board. She formed
that she had distributed a survey in response to some
reported dissatisfactions with the board and received an 18
percent return response. The licensing staff of the ABC
Board scored "Above Average" to "Superior." Co-Chair
Stoltze remarked that some of Ms. Gifford's comments would
be best saved for the next bill's discussion. Ms. Gifford
remarked that the board met all the requirements of the
audit and reconciled with the state system.
2:23:45 PM
KATE BURKHART, EXECUTIVE DIRECTOR, ADVISORY BOARD ON
ALCOHOLISM AND DRUG ABUSE, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, supported HB 279 extension for the Alcohol
Beverage and Control Board to 2015.
2:25:16 PM
ROD COMBELLICK, OPERATIONS MANAGER, DIVISON OF GEOLOGIC AND
GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES,
referred to a handout entitled, "Alaska Seismic Hazards
Safety Commission" (copy on file.) He noted the statutory
mission of the commission recommending goals, priorities
and policies to the governor and legislature. He referred
to the membership listed on page one and the broad
expertise represented. Out of the eleven members, only
three were from the state or federal government; the other
members represent the private sector. Three local
representatives are from seismically active regions of the
state that provide input to the commission on their areas
and have the ability to react to commission recommendations
for seismic risk mitigation. He also referred to the three
highly respected public members with earthquake expertise.
John Aho, one of the public members recently received a
life-time achievement award by the Western State Seismic
Policy Council. Another member from the private sector is a
world-renowned highly respected consulting geologist from
Kodiak who also has years of experience in "active faults."
In the early 70s, the Kodiak geologist was on the team that
mapped the Denali Fault before the Alaska Pipeline was
built across it. As a result of the knowledge and
prediction that the fault area would one day experience a
magnitude 8 earthquake; the pipeline was built to
accommodate the possibility. In 2002, there was a magnitude
7.9 earthquake on that fault, but no oil was spilt due to
their work. He referred to the map on page 2, showing the
known active and potentially active faults in Alaska. On
page 3, the map shows the 22,096 earthquakes recorded in
Alaska for an eleven month period in 2011. Often
earthquakes occur in non-populated areas, but eventually
earthquakes hit a populated area with serious consequences.
The U. S. map on page 4, reflects the predicted average
annual earthquake loss ratio. Alaska ranks second
nationally in predicted average Annual Earthquake Loss
Ratio. All the "red" states have seismic advisory
commissions, as well as some of the "yellow" states. Alaska
Earthquake Facts listed on page 5, points out that Alaska
has had an average of one "great" earthquake every thirteen
years. The final page lists the significant commission
accomplishments since the 2006 reauthorization. He surmised
that a lot of the accomplishments were not reflected in the
audit since they had been stated as "goals" by the
commission. He stressed the great job performed by the
commission.
2:33:48 PM
Co-Chair Stoltze responded that comments have not been
against the commission, but the department. He noted if Mr.
Combellick had shown up and commented at the hearings; it
would have alleviated some of the problems. There was no
criticism of the commission. Vice-chair Fairclough asked if
meetings were scheduled with Representative Hawker. Mr.
Combellick responded there were no current meeting plans,
but he would be available in Juneau all afternoon.
2:36:02 PM
Representative Costello asked if going from a charter to
strategic plan was a significant change. Mr. Combellick
believed that the strategic plan would expand and provide
valuable details on the charter.
2:37:11 PM
Co-Chair Hawker contended that some testimony seemed
defensive. He emphasized there was no plan to abolish the
seismic board or to denigrate their work. He affirmed the
legislature's responsibility to make certain that state
assets are effectively applied with the most efficient
operations. The legislative audit just pointed out
necessary improvements in some of the boards. It is not a
personal issue. The two year extension is an opportunity to
revisit the operations in a shorter period of time. Co-
Chair Stoltze remarked on the committee's intent to bring
back the fiscal notes to make sure they are clear and
separate. The Chair closed public hearing.
HB 279 was HEARD and HELD in committee for further
consideration.
2:40:18 PM
AT EASE
2:50:26 PM
RECONVENED
HOUSE BILL NO. 125
"An Act moving the Alcoholic Beverage Control
Board to the Department of Commerce, Community,
and Economic Development and relating to duties
of that department; and providing for an
effective date."
2:50:47 PM
Representative Mike Hawker presented HB 125. He explained
the concerns of the ABC board and the manner in which it
had been operating. The Legislative Audit and Budget
Committee had a sub-committee review the administration of
the ABC Board. The committee recommended, for
administrative purposes only, the ABC Board would be better
housed in the Department of Commerce, Community and
Economic Development (DEC) rather than the Department of
Public Safety. Co-Chair Stoltze commented on the lengthy
public testimony regarding this proposed public policy
change.
2:55:08 PM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST, DEPARTMENT OF REVENUE, referred to the Mental Health
Trust backup material provided. He understood why it might
make sense to move the ABC Board to the DEC and recounted
some of the deficiencies and behaviors found with the
board, but he wanted to relate additional information. The
ABC Board is a regulatory and quasi-judicial agency for the
control of the manufacture, barter, possession and sale of
alcoholic beverages in the state. He questioned if
licensees of a legal product were being given the degree of
respect and consideration expected of professional
enforcement of these very important public safety rules and
regulations. Data was researched on how the ABC employees
were treating the licensees. He referred to two charts
(copies on file) showing the results of a survey passed out
by Director Giffords. The survey indicates that the
satisfaction with the Licensing Process and staff as well
as the enforcement process and staff. He referenced two
opinion pieces (copies on file) published in the Anchorage
Daily News. The article's 'opinion indicated that the
police were not as qualified as the Teaching Alcohol
Professionals (TAP) in observing or determining if a person
was drunk on a liquor licensed property. The allegations
that the police force was only interested in making arrests
without regard to whether it was a good arrest that would
hold up in court. Mr. Jesse disputed this opinion and
believed police officers are faced with assessing
intoxication on a regular basis. He believed comments such
as those were at the heart of the dispute on how much
enforcement is appropriate in this area. He referenced
article, "Effort to reduce drunken driving deaths is
succeeding" Mike Mew, copy on file) that he considered a
very measured carefully constructed response. Police Chief
Mews stated that the police department does not want people
over served liquor in order to bring down the epidemic of
domestic violence and sexual assault. Excessive
intoxication in bars often leads to additional DUIs and
other criminal behavior outside of the bar. He emphasized
the public safety interests in enforcing these laws. If the
mission of the ABC Board was to treat licensees with
respect, dignity, and efficiency in a knowledgeable
professional way, the board meets that standard.
3:02:06 PM
Mr. Jesse referenced paper, "Alaska Alcohol vs. Tobacco
Sales to Minors" (copy on file) showing that alcohol
monitoring is done by the ABC Board and tobacco monitoring
is performed by the Department of Health and Social
Services. Co-Chair Stoltze stated for the record that the
referenced handouts were prepared by the Mental Health
Trust. Mr. Jessee continued that although statistics
reflect improvements in the rate of illegal sales to
minors; it is still at twice the rate of illegal tobacco
sales to minors. He questioned the disparity and found two
relevant points. In the area of alcohol compliance, unlike
tobacco, the current practice is that the ABC Board brings
prospective underage buyers into the board room and the
board votes if they can determine who is 21 years or older.
Co-Chair Stoltze noted that this was more ABC Board
testimony.
Mr. Jesse responded that the issue of underage drinking,
stopping the consequences of underage drinking, and
excessive adult drinking is a core-prevention issue. He
noted that unlike in tobacco, when an illegal alcohol sale
is made to a minor, in first offense case, there is no
certain consequence to the licensee but the penalty falls
exclusively on the employee who made the sale. With tobacco
sales to a minor, there is an automatic twenty day
suspension of the tobacco license. He cited the paper,
"Analysis of strategies designed to reduce sales of alcohol
and tobacco to underage persons: A preliminary report"
Alaska Alcoholic Beverage Control Board, Marny Rivera,
Khristy Parker, January 19, 2012" (copy on file.) He
referenced page 28-29, with Recommendations and
Conclusions: Enforcement Efforts. He believed if the laws
were not going to be changed, there was no difference in
moving the board out of the Department of Public Safety and
into the Department of Commerce, Community and Economic
Development. He stressed the issue was a law enforcement
issue.
3:07:09 PM
Co-Chair Thomas responded that his observation showed that
city law enforcement handled most drinking related issues
and the legislature has no jurisdiction over local
authorities. He cited that if the local police officers are
not properly trained there is nothing the legislature can
do. The legislature only has authority over state troopers.
3:09:47 PM
Representative Neuman remarked that is was not just an
enforcement issue, but many policy issues, including
commerce.
3:11:12 PM
ELLEN GANLEY, VICE CHAIR, ALCOHOL BEVERAGE CONTROL BOARD,
DEPARTMENT OF PUBLIC SAFETY, contended that the earlier
move of the ABC Board from the Department of Revenue to the
Department of Public Safety was very positive. She noted a
level of cooperation and sharing of resources that had not
been there before. Moving the board to the Department of
Commerce will be counterproductive. The liquor industry is
not like other industries in Alaska; it is about alcohol
and the problems it causes throughout the state. She
stressed the best way to deal with the problem was through
enforcement. The University of Alaska study and their
recommendations were based on best practices that work. She
reported that in the last couple of years the curve of
alcohol abuse in Alaska is rising. Co-Chair Stoltze asked
if Ms. Ganley was a public member of the board. Ms. Ganley
replied she was.
3:15:39 PM
Vice-chair Fairclough requested the number of complaints on
enforcement officers that had been received by the ABC
Board in the past few months. Ms. Ganley responded that the
board had not received any complaints.
3:16:26 PM
DALE FOX, PRESIDENT AND CEO OF ALASKA CABARET, HOTEL,
RESTAURANT, AND RETAILERS ASSOCIATION (CHARR), thanked the
committee and the Legislative, Budget and Audit Committee
for hearing many hours of testimony. After thorough
consideration, the Legislative Budget and Audit Committee
concluded that the ABC Board should be located in the
commerce department and that the move does not change or
restrict the important enforcement responsibilities or
abilities. He was proud of a survey conducted by the
Substance Abuse and Mental Health Service Administration
that rated Alaska retailers as the best in nation in
refusing service to underage drinkers. Alaska is one of
only six states that provide alcohol training for all
people involved with serving alcohol. Whenever a problem is
seen in educating the 25,000 in the industry, a new tool is
developed to do a better job. He stressed the importance of
people serving alcohol to know and follow the rules. The
Department of Public Safety has a dominant tool of arrest
and citations. Surveys show that underage drinking is a
significant state problem.
3:20:57 PM
Mr. Fox listed sources where underage individuals can
obtain alcohol: home, relatives, older friends, internet,
etc. The industry takes responsibility of their part in
educating. He believed enforcement was logical and needed
to keep licensees on their toes. The difficulty is making
sure 25,000 people are educated and aware at all times. He
believed education combined with reasonable enforcement is
the best solution. He saw nothing in the move to the DEC
that would diminish the enforcement effort.
3:24:46 PM
Representative Joule asked how the people in the industry
determine who to ask for identification. Mr. Fox responded
that the law clearly states that anyone who looks under 30
should be checked. Representative Joule noted that when
purchasing tobacco, he is asked for identification every
time. He suggested that those who serve alcohol might
consider such an action.
3:26:27 PM
Representative Neuman introduced a constituent from
Talkeetna who had some issues with the board. His situation
involves forty-five employees and several million dollars
in investment.
SASSAN MOSSANEN, GENERAL MANAGER, DENALI BREWING COMPANY
TALKEETNA, AK, AND PRESIDENT OF THE GOVERNMENTAL AFFAIRS
COMMITTEE FOR THE BREWERS ASSOCIATION OF ALASKA related a
meeting of the Brewers Association discussing HB 125 and
all members voted unanimously in support of HB 125. It is
important to recognize that the Ms. Gifford's 18 percent
survey return speaks for itself. He stressed that the
brewing industry works vigilantly not to encourage the
abuse of alcohol. He noted his issue revolved around the
board's lack of understanding licensing rules. There needs
to be collaboration between industry and enforcement. When
the agency responsible for licensing is not familiar with
the rules, it creates a difficult operating environment.
The brewing industry seeks the help of the community and
takes their role in serving alcohol very seriously.
Representative Neuman gave some background about Mr.
Mossanen's issues with the ABC Board on the regulatory, not
enforcement side. Mr. Mossanen asked to expand his business
opportunities to have a restaurant with his brewery. He
applied to the ABC Board and received a temporary permit,
obtained over a million dollars in private industry
investment, and built a new facility. The day before the
final license was due; Mr. Mossanen was informed by Ms.
Gifford that according to Alaska Statutes an individual who
owns a brewery license cannot own a restaurant license. Mr.
Mossanen acted in good faith when they received permission
to go ahead with their business plan. Now they are waiting
to see if ABC Board approves the license so they may
continue business. If the license is not approved, the
business will lose everything. Representative Newman
stressed that this should be a commerce issue, not
enforcement.
3:34:03 PM
Co-Chair Stoltze appreciated framing the issue with the
example.
3:34:56 PM
ROBIN JEFFERY, OWNER, ROBIN'S LANDING, BIG LAKE, AK, feared
that when the ABC board first moved to the Department of
Public Safety, that law enforcement would be on the
bartenders and servers who make the judgment calls. She
believed that the industry does not need help, but it is
the people who frequent bars that need educating. She
believed it would be a step backward if the board was moved
to the Department of Commerce. She believed the board
should be moved to the Department of Health and Social
Services. She believed the Department of Health and Social
Services could reach more people who suffer from addiction
problems.
3:41:05 PM
Co-Chair Stoltze reiterated that Ms. Jeffery wanted the
board moved to the Department of Health and Social
Services. Ms. Jeffery agreed it was important to move the
board from the Department of Public Safety to the
Department of Health and Social Services.
3:41:59 PM
PATRICK HAYES, CHAIRMAN, MEETING THE CHALLENGE, indicated
that if the board moved to the Department of Commerce there
could be a reduction of oversight and enforcement which
could lead to an increase in underage drinking. Meeting the
Challenge opposed the bill. Representative Doogan requested
information on the Meeting the Challenge organization. Mr.
Hayes explained that the Meeting the Challenge campaign was
an organization of individuals who are in recovery from
alcoholism and drug addiction and received their treatment
from state funded substance abuse treatment facilities.
Representative Wilson noted that even if the board was
moved into commerce, public safety would still have the
responsibility to uphold the statues on underage drinking.
Mr. Hayes did not know who would be in charge of enforcing
the laws, but assumed the ABC Board was responsible for the
oversight. Representative Wilson pointed out if the
Department of Public Safety does not do their job, it would
not make any difference into which department the board is
moved.
MATT FELIX, DIRECTOR, NATIONAL COUNCIL ON ALCOHOLISM,
reviewed why the ABC Board was in the Department of Public
Safety. The board originally was in the Department of
Revenue in order to produce tax revenue after statehood.
Taxation of alcohol was a significant revenue stream for
Alaska. It presented a problem that allowed a ratio of
licenses per population that was double most states. A
federally funded commission recommended that the ABC Board
take a more enforcement stance to deal with the surge of
alcohol and drug abuse problems. He acknowledged the value
of enforcement to deal with the problem. He voiced his lack
of support for the bill. He recognized the struggle to get
the ABC Board to enforce Title IV properly and part of this
was achieved by moving it into the Department of Public
Safety.
3:51:02 PM
JAN WRENTMORE, OWNER, RED ONION SALOON, SKAGWAY (via
teleconference), supported the bill. Hotels, bars and
restaurants governed by the liquor license law make up the
state's hospitality industry and are one of the state's
strongest sectors of the economy. Public safety is a
component of the hospitality industry. In small rural
communities there are no state troopers and the enforcement
of Title IV is handled well by local police. She did not
believe it would make a difference whether enforcement was
under Department of Public Safety or the Department of
Commerce, Community and Economic Development. Under the
Department of Public Safety (DPS) she has seen the
Anchorage staff struggle to give adequate support to the
licensing component of the industry. She believed the DPS
should not be the agency in charge of the issue. The
licensing component of the industry should be put into an
agency experienced with these issues. Co-Chair Stoltze
agreed that the liquor industry is one of the most
convoluted bodies of laws in the state. He appreciated the
testimony related to the complexity of the licensing aspect
on the commerce side.
3:56:03 PM
BRAD JOHNSON, MEMBER, ALASKA ASSOCIATION OF CHIEFS OF
POLICE, FAIRBANKS (via teleconference), spoke in opposition
to the legislation. The association felt that the ABC Board
was currently in the best position under the Department of
Public Safety. Alcohol is a major public safety issue
contributing to the majority of crimes in the state,
including domestic violence. The ABC Board has inherent law
enforcement responsibilities that could not be readily
accomplished outside of the law enforcement arena and
within an administrative division of state government. The
ABC Board relies on local law enforcement to implement the
enforcement of Title IV. He urged the committee to consider
not passing the legislation. Vice-chair Fairclough wondered
how the role of public safety would change if the
administrative structure was changed to the DEC. Mr.
Johnson noted a program that worked closely with the board
in Title IV enforcement in Fairbanks. He believed that was
possible because of the professional relationship with the
board. He did not believe this cooperation would be the
same if the board was under a different department. Co-
Chair Stoltze asked whether cooperation would be an
inadequacy in Mr. Johnson's department or an inadequacy in
other departments. Mr. Johnson did not believe it was an
inadequacy, but a change in how investigators are viewed as
members of law enforcement versus not members of law
enforcement. He stressed the difficulty in the working
relationship with representatives of other departments who
are attempting to perform a law enforcement mission that
are not actually tasked with a law enforcement mission.
4:00:50 PM
Vice-chair Fairclough remarked that the industry has
indicated that the Department of Public Safety tends to be
heavy-handed in their approach. The current system lacks
the educational arm to help businesses improve. Mr. Johnson
informed he could only speak from his own experience with
members of the board and their local employees. His own
perspective is that there might have been issues in the
past but he believed that Ms. Gifford has actively worked
toward changing that reputation and experiences.
4:02:27 PM
MARK MEW, CHIEF OF POLICE, ANCHORAGE POLICE DEPARTMENT (via
teleconference), pointed out that Title IV alcohol
enforcement is occasionally performed working with the ABC
Board on the details. Co-Chair Stoltze interjected that the
bill was scheduled since the beginning of session. Mr. Mew
continued that periodic enforcement is beneficial for
Anchorage, especially in preventing drunken driving, sexual
assault and domestic violence. He noted the department's
close work and training with the ABC Board and the
prosecutors who try the cases. He stressed the good working
relationship with the ABC Board and would like to see that
positive work continue. He does not want to see the
effectiveness of the ABC Board reduced.
4:07:19 PM
Representative Wilson wondered if Mr. Mew's department
would stop working with the ABC Board if it moved into
commerce. Mr. Mew indicated the department would still work
with the board.
4:07:49 PM
BOB WINN, OWNER, LA MEX RESTAURANT, ANCHORAGE (via
teleconference), supported the bill. He did not believe
that enforcement would be lowered by the movement. He
stressed that licensees need more counseling support and
believed the Department of Commerce would provide the
needed administrative support.
HB 125 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
4:12:23 PM
The meeting was adjourned at 4:12 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 279 Sponsor Statement.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB 279 Sectional.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB 279 Background.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB279-NEW FN-DPS-ABC-02-13-12.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB279-NEW FN-DCCED-CBPL-02-17-12.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB125CS(L&C)-UpdatedFN-DPS-ABC-02-13-12.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 125 |
| HB125-DCCED-ABC-02-17-12-Updated fn.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 125 |
| HB279 ASHSC_Feb2012_annual_report.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB 279 ASHSC brief DGGS.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB279 CS WORKDRAFT 27-LS0944-I.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |
| HB125-DCCED-ASD-02-20-12-UPDATED-NEW.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 125 |
| HB 125 AMHTA Opposition Documents 2-20-12 HFIN.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 125 |
| HB 125 National Council Handout Report-Opposition 2-20-12.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 125 |
| HB 279 Kito Testimony 2.20.12.pdf |
HFIN 2/20/2012 1:30:00 PM |
HB 279 |