Legislature(2011 - 2012)HOUSE FINANCE 519

02/20/2012 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 125 ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Heard & Held
+ HB 279 EXTENDING CERTAIN BOARDS & COMMISSIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled 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