Legislature(2011 - 2012)CAPITOL 120

04/13/2011 01:00 PM JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 15 SEX OFFENDER/UNDERAGE ALCOHOL OFFENSE TELECONFERENCED
Heard & Held
+ SB 78 LIABILITY RELATED TO ALCOHOL TELECONFERENCED
Moved Out of Committee
+ HB 224 SALES OF NICOTINE PRODUCTS TO MINOR TELECONFERENCED
Moved CSHB 224(JUD) Out of Committee
<Bill Held Over from 4/11/11>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                         April 13, 2011                                                                                         
                           1:17 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Gatto, Chair                                                                                                
Representative Steve Thompson, Vice Chair                                                                                       
Representative Wes Keller                                                                                                       
Representative Bob Lynn                                                                                                         
Representative Lance Pruitt                                                                                                     
Representative Max Gruenberg                                                                                                    
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault (alternate)                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 224                                                                                                              
"An Act relating to the  prohibition of selling or giving tobacco                                                               
or a product containing nicotine  to a minor unless prescribed by                                                               
a licensed physician."                                                                                                          
                                                                                                                                
     - MOVED CSHB 224(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 15(JUD)                                                                                
"An  Act  relating  to penalties  for  certain  alcohol  offenses                                                               
involving persons under 21 years  of age committed by certain sex                                                               
offenders or child kidnappers."                                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 78(JUD)                                                                                
"An  Act  relating  to liability  of  certain  limited  liability                                                               
organizations holding liquor licenses;  and relating to accidents                                                               
involving  the  vehicle  of  a  person  under  the  influence  of                                                               
alcoholic beverages."                                                                                                           
                                                                                                                                
     - MOVED CSSB 78(JUD) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 224                                                                                                                  
SHORT TITLE: SALES OF NICOTINE PRODUCTS TO MINOR                                                                                
SPONSOR(S): REPRESENTATIVE(S) SEATON                                                                                            
                                                                                                                                
04/04/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/04/11       (H)       JUD, FIN                                                                                               
04/11/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/11/11       (H)       Scheduled But Not Heard                                                                                
04/13/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
                                                                                                                                
BILL: SB 15                                                                                                                   
SHORT TITLE: SEX OFFENDER/UNDERAGE ALCOHOL OFFENSE                                                                              
SPONSOR(S): SENATOR(S) MEYER                                                                                                    
                                                                                                                                
01/19/11       (S)       PREFILE RELEASED 1/7/11                                                                                
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       HSS, JUD                                                                                               
03/16/11       (S)       HSS AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/16/11       (S)       Moved CSSB 15(HSS) Out of Committee                                                                    
03/16/11       (S)       MINUTE(HSS)                                                                                            
03/18/11       (S)       HSS RPT CS  4DP  SAME TITLE                                                                            
03/18/11       (S)       DP: DAVIS, MEYER, EGAN, DYSON                                                                          
03/18/11       (S)       FIN REFERRAL ADDED AFTER JUD                                                                           
03/28/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/28/11       (S)       Heard & Held                                                                                           
03/28/11       (S)       MINUTE(JUD)                                                                                            
03/30/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/30/11       (S)       Moved CSSB 15(JUD) Out of Committee                                                                    
03/30/11       (S)       MINUTE(JUD)                                                                                            
04/01/11       (S)       JUD RPT CS  4DP  NEW TITLE                                                                             
04/01/11       (S)       DP:   FRENCH,   COGHILL,   WIELECHOWSKI,                                                               
                         PASKVAN                                                                                                
04/06/11       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/06/11       (S)       Heard & Held                                                                                           
04/06/11       (S)       MINUTE(FIN)                                                                                            
04/08/11       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/08/11       (S)       Moved CSSB 15(JUD) Out of Committee                                                                    
04/08/11       (S)       MINUTE(FIN)                                                                                            
04/08/11       (S)       FIN RPT CS(JUD)  3DP 2NR                                                                               
04/08/11       (S)       DP: HOFFMAN, EGAN, ELLIS                                                                               
04/08/11       (S)       NR: STEDMAN, OLSON                                                                                     
04/08/11       (S)       TRANSMITTED TO (H)                                                                                     
04/08/11       (S)       VERSION: CSSB 15(JUD)                                                                                  
04/09/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/11       (H)       JUD, FIN                                                                                               
04/13/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
                                                                                                                                
BILL: SB 78                                                                                                                   
SHORT TITLE: LIABILITY RELATED TO ALCOHOL                                                                                       
SPONSOR(S): SENATOR(S) MCGUIRE BY REQUEST                                                                                       
                                                                                                                                
02/04/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/11       (S)       L&C, JUD                                                                                               
03/22/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/22/11       (S)       Heard & Held                                                                                           
03/22/11       (S)       MINUTE(L&C)                                                                                            
03/29/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
03/29/11       (S)       Moved SB 78 Out of Committee                                                                           
03/29/11       (S)       MINUTE(L&C)                                                                                            
03/30/11       (S)       L&C RPT 5DP                                                                                            
03/30/11       (S)       DP: EGAN, GIESSEL, DAVIS, PASKVAN,                                                                     
                         MENARD                                                                                                 
04/01/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/01/11       (S)       Heard & Held                                                                                           
04/01/11       (S)       MINUTE(JUD)                                                                                            
04/04/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/04/11       (S)       Moved CSSB 78(JUD) Out of Committee                                                                    
04/04/11       (S)       MINUTE(JUD)                                                                                            
04/06/11       (S)       JUD RPT CS  4DP 1NR  NEW TITLE                                                                         
04/06/11       (S)       DP:   FRENCH,   WIELECHOWSKI,   PASKVAN,                                                               
                         MCGUIRE                                                                                                
04/06/11       (S)       NR: COGHILL                                                                                            
04/08/11       (S)       TRANSMITTED TO (H)                                                                                     
04/08/11       (S)       VERSION: CSSB 78(JUD)                                                                                  
04/09/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/11       (H)       JUD                                                                                                    
04/13/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KATIE KOESTER, Staff                                                                                                            
Representative Paul Seaton                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 224 on behalf of the sponsor,                                                               
Representative Seaton.                                                                                                          
                                                                                                                                
ANDREA FENAUGHTY, Ph.D., Deputy Chief                                                                                           
Chronic Disease Prevention and Health Promotion                                                                                 
Division of Public Health                                                                                                       
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During discussion of HB 224, provided                                                                    
comments, expressed support, and suggested a change to the bill.                                                                
                                                                                                                                
SENATOR KEVIN MEYER                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Sponsor of SB 15.                                                                                        
                                                                                                                                
CHRISTINE MARASIGAN, Staff                                                                                                      
Senator Kevin Meyer                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Assisted with the presentation of SB 15 on                                                               
behalf of the sponsor, Senator Meyer.                                                                                           
                                                                                                                                
ANNA SAPPAH, Executive Director                                                                                                 
Alaska Addiction Professionals Association;                                                                                     
Beneficiary Member                                                                                                              
Advisory Board on Alcoholism and Drug Abuse                                                                                     
Division of Behavioral Health (DBH)                                                                                             
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 15.                                                                           
                                                                                                                                
DOUGLAS MOODY, Deputy Public Defender                                                                                           
Criminal Division                                                                                                               
Central Office                                                                                                                  
Public Defender Agency (PDA)                                                                                                    
Department of Administration (DOA)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During discussion of SB 15, expressed                                                                    
concerns and responded to questions.                                                                                            
                                                                                                                                
ESTHER TEMPEL, Staff                                                                                                            
Senator Lesil McGuire                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 78 on behalf of the sponsor by                                                              
request, Senator McGuire.                                                                                                       
                                                                                                                                
RICHARD M. ROSSTON, Attorney at Law                                                                                             
Dorsey & Whitney LLP                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided comments during discussion of                                                                   
SB 78.                                                                                                                          
                                                                                                                                
SILVIA VILLAMIDES, Director                                                                                                     
Anchorage Cabaret, Hotel, Restaurant & Retailers Association                                                                    
(Anchorage CHARR)                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Provided comments  during  discussion  of                                                             
SB 78.                                                                                                                          
                                                                                                                                
BOB KLEIN, Chairman                                                                                                             
Alcoholic Beverage Control Board ("ABC Board")                                                                                  
Department of Public Safety (DPS);                                                                                              
Member                                                                                                                          
Board of Directors                                                                                                              
Alaska  Cabaret, Hotel,  Restaurant  and Retailer's  Association,                                                               
Inc. (Alaska CHARR);                                                                                                            
Director                                                                                                                        
Sales and Marketing (ph)                                                                                                        
Brown Jug                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    Provided  comments  and  responded  to  a                                                             
question during discussion of SB 78.                                                                                            
                                                                                                                                
J. RANDALL CALL, General Counsel                                                                                                
Alyeska Resort;                                                                                                                 
President                                                                                                                       
Alyeska Resort Development L.L.C.                                                                                               
(No address provided)                                                                                                           
POSITION  STATEMENT:    Provided comments  during  discussion  of                                                             
SB 78.                                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:17:39 PM                                                                                                                    
                                                                                                                                
CHAIR CARL  GATTO called the  House Judiciary  Standing Committee                                                             
meeting to  order at  1:17 p.m.   Representatives  Gatto, Keller,                                                               
Pruitt, Thompson, Gruenberg, and Holmes  were present at the call                                                               
to  order.   Representative Lynn  arrived as  the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
          HB 224 - SALES OF NICOTINE PRODUCTS TO MINOR                                                                      
                                                                                                                                
1:17:55 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO announced  that the first order of  business would be                                                               
HOUSE  BILL NO.  224,  "An  Act relating  to  the prohibition  of                                                               
selling or giving  tobacco or a product containing  nicotine to a                                                               
minor unless prescribed by a licensed physician."                                                                               
                                                                                                                                
REPRESENTATIVE  THOMPSON moved  to adopt  the proposed  committee                                                               
substitute  (CS)  for  HB   224,  Version  27-LS0466\I,  Gardner,                                                               
4/11/11,  as the  working document.   There  being no  objection,                                                               
Version I was before the committee.                                                                                             
                                                                                                                                
1:19:29 PM                                                                                                                    
                                                                                                                                
KATIE KOESTER,  Staff, Representative  Paul Seaton,  Alaska State                                                               
Legislature,  on behalf  of the  sponsor, Representative  Seaton,                                                               
explained that HB  224 would make it a violation  - punishable by                                                               
a  fine of  [not less  than $300]  - to  sell or  give a  product                                                               
containing nicotine  to a [person  under 19  years of age].   New                                                               
products that contain nicotine -  many looking like candy, breath                                                               
mints,  gum, toothpicks,  hand wipes,  or water  - are  now being                                                               
marketed but aren't being regulated  like other tobacco products.                                                               
Nor  are these  new  products intended  or  marketed as  tobacco-                                                               
cessation  products, which  are regulated  by the  U.S. Food  and                                                               
Drug  Administration (FDA).   In  order to  address the  issue of                                                               
youth under 19  years of age using  tobacco-cessation products to                                                               
help  them  quit  smoking,  HB  224  contains  an  exemption  for                                                               
nicotine  products marketed  and  regulated as  tobacco-cessation                                                               
products that  are prescribed by  a health care  professional, or                                                               
that  are  provided to  the  youth  by  his/her parent  or  legal                                                               
guardian.   She mentioned that  Version I uses the  term, "health                                                               
care professional",  rather than the term,  "physician", in order                                                               
to address situations  involving rural areas of  the state, where                                                               
physicians aren't always available.                                                                                             
                                                                                                                                
MS. KOESTER noted that HB 224  uses an age threshold of 19, which                                                               
is  the  same   age  threshold  provided  for   in  the  statutes                                                               
pertaining to  tobacco.   However, the  Department of  Health and                                                               
Social  Services   (DHSS)  would  prefer  that   the  bill's  age                                                               
threshold be changed  to 18 so that when someone  who is 18 years                                                               
of  age calls  the  DHSS's tobacco-cessation  helpline, the  DHSS                                                               
would  still be  able to  provide him/her  with tobacco-cessation                                                               
products.    Ms. Koester  mentioned  that  the sponsor  would  be                                                               
amenable to  such a  change.   She then went  on to  explain that                                                               
Version  I   is  proposing  to   address  [non-cessation-related]                                                               
nicotine-containing products  by adding a  new section 109  to AS                                                               
11.76,  whereas the  original  version of  the  bill proposed  to                                                               
simply  add   references  to  products  containing   nicotine  to                                                               
existing  AS  11.76.100.    The   original  bill's  approach  was                                                               
problematic, however,  because AS 11.76.100 is referenced  in the                                                               
statutes addressing  violations of and penalties  associated with                                                               
Alaska's  tobacco laws  as  they relate  to  licensed vendors  of                                                               
tobacco products.                                                                                                               
                                                                                                                                
MS.   KOESTER    mentioned   that   members'    packets   include                                                               
documentation  regarding the  toxicity of  nicotine when  used by                                                               
children;  incidents requiring  the  hospitalization of  children                                                               
who  used  nicotine  products;   and  the  availability  of  such                                                               
products, including information indicating  that the packaging of                                                               
such products so  closely resembles that of  candy, breath mints,                                                               
gum,  toothpicks, hand  wipes, or  water  that they  pose a  real                                                               
hazard  to children.   Also  included  is information  indicating                                                               
that at  least one tobacco  manufacturer has relayed that  it has                                                               
no  intention of  marketing such  products for  tobacco-cessation                                                               
purposes.  Again, such products  are not currently regulated, and                                                               
HB  244  is  intended  to  stop  their  potential  for  abuse  by                                                               
children, thereby addressing the sponsor's concern.                                                                             
                                                                                                                                
1:25:22 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO observed  that members' packets include  a picture of                                                               
some  of  those  nicotine-containing products,  illustrating  how                                                               
closely their packaging resembles that of benign products.                                                                      
                                                                                                                                
MS. KOESTER,  in response to  questions and  comments, reiterated                                                               
that   currently   these  nicotine-containing   products   aren't                                                               
regulated at  all in  Alaska -  anyone of any  age can  buy them;                                                               
concurred  that under  HB 224,  violations would  only warrant  a                                                               
monetary fine;  mentioned that  the bill also  has a  referral to                                                               
the  House Finance  Committee; and  relayed that  the sponsor  is                                                               
very concerned about ensuring that  children addicted to nicotine                                                               
or tobacco can  still access the resources they need  in order to                                                               
help them quit,  and would therefore be amenable  to altering the                                                               
bill to that effect.                                                                                                            
                                                                                                                                
REPRESENTATIVE   KELLER,  to   address  the   sponsor's  concern,                                                               
suggested changing  proposed AS 11.76.109(b) such  that after the                                                               
words, "approved purposes;" the word,  "and" be replaced with the                                                               
word, "or".                                                                                                                     
                                                                                                                                
MS. KOESTER  pointed out  that such  a change  would result  in a                                                               
parent  or  legal  guardian  being able  to  give  his/her  child                                                               
nicotine-containing  products that  aren't intended  for tobacco-                                                               
cessation.    As  currently  written,  proposed  AS  11.76.109(b)                                                               
already  provides an  exemption  for tobacco-cessation  products,                                                               
which, again, are regulated by the FDA.                                                                                         
                                                                                                                                
1:29:46 PM                                                                                                                    
                                                                                                                                
ANDREA   FENAUGHTY,   Ph.D.,   Deputy  Chief,   Chronic   Disease                                                               
Prevention  and  Health  Promotion, Division  of  Public  Health,                                                               
Department  of Health  and Social  Services (DHSS),  referring to                                                               
the DHSS's tobacco-cessation  helpline, explained that currently,                                                               
people ages 18 and older who  call the helpline are provided with                                                               
tobacco-cessation  products.    As  currently  written,  however,                                                               
HB 224 would prevent the  DHSS's from providing tobacco-cessation                                                               
products to  anyone who  is 18  years of  age.   Furthermore, the                                                               
Health  Insurance  Portability  and  Accountability  Act  (HIPAA)                                                               
prevents the DHSS  from providing such products to  the parent or                                                               
legal  guardian   of  a  person   18  years  of  age   or  older.                                                               
Nonetheless, the  DHSS is  in support  of HB  224 and  is working                                                               
with the  sponsor to address  this issue of  18-year-olds seeking                                                               
tobacco-cessation   products,  perhaps   by   changing  the   age                                                               
threshold  from  19  to  18.    In  response  to  questions,  she                                                               
indicated that the  DHSS is suggesting that the  age threshold in                                                               
proposed AS 11.76.109(b) be changed to 18.                                                                                      
                                                                                                                                
1:32:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES   made  a   motion  to   adopt  Conceptual                                                               
Amendment 1,  to delete the  term, "19" on  page 1, line  13, and                                                               
page 2, line 6, and replace it  with the term, "18".  There being                                                               
no objection, Conceptual Amendment 1 was adopted.                                                                               
                                                                                                                                
CHAIR  GATTO,  after ascertaining  that  no  one else  wished  to                                                               
testify, closed public testimony on HB 224.                                                                                     
                                                                                                                                
REPRESENTATIVE HOLMES characterized HB 224 as a good bill.                                                                      
                                                                                                                                
1:33:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON  moved to  report  the  proposed CS  for                                                               
HB 224, Version  27-LS0466\I, Gardner,  4/11/11, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  zero  fiscal  notes.   There  being  no  objection,                                                               
CSHB 224(JUD)  was reported  from  the  House Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
The committee took an at-ease from 1:34 p.m. to 1:36 p.m.                                                                       
                                                                                                                                
         SB 15 - SEX OFFENDER/UNDERAGE ALCOHOL OFFENSE                                                                      
                                                                                                                                
1:36:32 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO  announced that the  next order of business  would be                                                               
CS FOR  SENATE BILL  NO. 15(JUD), "An  Act relating  to penalties                                                               
for certain alcohol offenses involving  persons under 21 years of                                                               
age committed by certain sex offenders or child kidnappers."                                                                    
                                                                                                                                
1:36:53 PM                                                                                                                    
                                                                                                                                
SENATOR   KEVIN  MEYER,   Alaska   State  Legislature,   sponsor,                                                               
explained that SB 15 would  increase the penalties for the crimes                                                               
of providing alcohol to a minor  when the offense is committed by                                                               
a  person who  is required  to register  as a  sex offender  or a                                                               
child kidnapper.   Under SB 15,  if the underlying offense  is [a                                                               
violation,   the  aggravated   penalty   would  be   a  class   B                                                               
misdemeanor; if the underlying offense  is a class A misdemeanor,                                                               
the aggravated  penalty would  be a  class C  felony; and  if the                                                               
underlying offense  is a class  C felony, the  aggravated penalty                                                               
would be a class B felony.   The specific crimes that could be so                                                               
aggravated  under  SB 15  are:    AS  04.16.051 -  Furnishing  or                                                               
delivery of alcoholic  beverages to persons under the  age of 21;                                                               
AS 04.16.055  - Room rental  for purposes of  consuming alcoholic                                                               
beverages;  and  AS 04.16.057  -  Permitting  minor to  illegally                                                               
possess  liquor in  dwelling.]   There  is  a strong  correlation                                                               
between alcohol  use and  sexual assault, and  the intent  of the                                                               
bill is  to stop  those who  use alcohol  in order  to facilitate                                                               
their  sexual  abuse  of  a  minor crimes.    In  conclusion,  he                                                               
mentioned  that  SB 15  passed  the  Senate unanimously  and  has                                                               
attached fiscal notes.                                                                                                          
                                                                                                                                
1:39:46 PM                                                                                                                    
                                                                                                                                
CHRISTINE  MARASIGAN, Staff,  Senator Kevin  Meyer, Alaska  State                                                               
Legislature,  on behalf  of the  sponsor, Senator  Meyer, and  in                                                               
response  to a  comment, clarified  that members'  packets should                                                               
now  contain  two  indeterminate   fiscal  notes,  one  from  the                                                               
Department  of  Law   (DOL)  and  one  from   the  Department  of                                                               
Corrections (DOC).                                                                                                              
                                                                                                                                
SENATOR   MEYER   added  that   in   its   initial  fiscal   note                                                               
calculations, the  DOC had  used historical  conviction averages,                                                               
but when it was pointed out  in the Senate Finance Committee that                                                               
it's not  possible to estimate  how many new  convictions passage                                                               
of  SB 15  would result  in, the  DOC replaced  its prior  fiscal                                                               
notes with an indeterminate fiscal note.                                                                                        
                                                                                                                                
1:43:05 PM                                                                                                                    
                                                                                                                                
ANNA SAPPAH,  Executive Director, Alaska  Addiction Professionals                                                               
Association;  Beneficiary Member,  Advisory  Board on  Alcoholism                                                               
and Drug  Abuse, Division of Behavioral  Health (DBH), Department                                                               
of Health  and Social Services  (DHSS), after mentioning  that in                                                               
addition  to being  in long-term  recovery from  substance abuse,                                                               
she   is   a   survivor   of   several   alcohol-related   sexual                                                               
assault/abuse crimes, relayed that she  is speaking in support of                                                               
SB 15.   It is important to acknowledge the  potential for sexual                                                               
abuse that arises when adults  furnish alcohol and/or other drugs                                                               
to  minors,  she  opined,  because   this  behavior  enables  sex                                                               
offenders  and other  predators  to victimize  minors who  become                                                               
judgmentally impaired while under  the influence.  Predators that                                                               
provide any mind- or mood-altering  substance to minors should be                                                               
punished  for doing  so.   The pain  of living  with having  been                                                               
sexually abused can  be devastating to children.   In conclusion,                                                               
she  asked  the  committee  to  support  SB  15  so  as  to  give                                                               
communities  another  tool with  which  to  promote justice  when                                                               
dealing  with predators  who  would use  any  means available  to                                                               
victimize Alaska's children.                                                                                                    
                                                                                                                                
1:44:45 PM                                                                                                                    
                                                                                                                                
DOUGLAS  MOODY,   Deputy  Public  Defender,   Criminal  Division,                                                               
Central  Office,  Public  Defender Agency  (PDA),  Department  of                                                               
Administration (DOA), in response to  a query, indicated that the                                                               
only concern the PDA has is that  SB 15 might be applied to those                                                               
who aren't the intended targets of the bill.                                                                                    
                                                                                                                                
MS. MARASIGAN pointed  out, though, that the  bill specifies that                                                               
the  proposed  increased  penalties   apply  to  people  who  are                                                               
required to register  as a sex offender or as  a child kidnapper.                                                               
In other  words, SB 15 only  applies to persons who  have already                                                               
been convicted of  such crimes.  Providing alcohol or  drugs to a                                                               
minor  can   leave  him/her  ripe  for   being  sexually  abused.                                                               
Furthermore,  statistics indicate  that from  2006 to  2007, over                                                               
half  of  all sexual  assaults  occurring  in Anchorage  involved                                                               
alcohol,  and one-third  involved victims  under the  age of  19.                                                               
These  statistics highlight  the need  for another  tool to  help                                                               
keep such predators away from  Alaska's children.  In response to                                                               
comments and  questions, she clarified  that the bill  would only                                                               
apply to registered sex offenders  or registered child kidnappers                                                               
who violate either  AS 04.16.051, AS 04.16.055,  or AS 04.16.057;                                                               
and remarked that  the bill is intended to  address predators who                                                               
use alcohol as a grooming tool.                                                                                                 
                                                                                                                                
MR. MOODY,  in response  to questions  and comments,  offered his                                                               
understanding that the bill itself  would not impact any already-                                                               
established  penalty   that  could   be  imposed   for  violating                                                               
conditions of  probation/parole, and that any  such penalty would                                                               
have to be imposed consecutively.                                                                                               
                                                                                                                                
[Members   then    briefly   discussed   aspects    of   existing                                                               
AS 04.16.051.]                                                                                                                  
                                                                                                                                
MS. MARASIGAN,  in response to  comments and  questions regarding                                                               
whether to  either expand or limit  who the bill would  apply to,                                                               
noted that  those issues were  discussed in the  Senate Judiciary                                                               
Standing Committee,  and explained  that via  SB 15  as currently                                                               
written, the  sponsor is  attempting to  address the  behavior of                                                               
those who are already known to  be predators because they have to                                                               
register  as  such;  under  the   bill,  the  proposed  increased                                                               
penalties  could be  applied  before another  sexual  abuse of  a                                                               
minor crime takes place.                                                                                                        
                                                                                                                                
2:07:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER,  referring  to  the  DOC's  [initial  but                                                               
replaced]  fiscal   note,  indicated  favor  with   the  SB  15's                                                               
proposal.                                                                                                                       
                                                                                                                                
CHAIR GATTO observed that the  court-decision notes pertaining to                                                               
AS 04.16.051 mention  the issue of double  jeopardy, and surmised                                                               
that there  are probably  going to  be instances  wherein certain                                                               
charges get merged.                                                                                                             
                                                                                                                                
CHAIR GATTO then relayed that CSSB 15(JUD) would be held over.                                                                  
                                                                                                                                
              SB 78 - LIABILITY RELATED TO ALCOHOL                                                                          
                                                                                                                                
2:10:29 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO announced  that the final order of  business would be                                                               
CS FOR SENATE BILL NO. 78(JUD),  "An Act relating to liability of                                                               
certain limited liability  organizations holding liquor licenses;                                                               
and  relating to  accidents  involving the  vehicle  of a  person                                                               
under the influence of alcoholic beverages."                                                                                    
                                                                                                                                
2:11:40 PM                                                                                                                    
                                                                                                                                
ESTHER  TEMPEL,  Staff,  Senator   Lesil  McGuire,  Alaska  State                                                               
Legislature,  on  behalf  of  Senator  McGuire,  the  sponsor  by                                                               
request,  explained that  in order  to provide  the same  limited                                                               
liability  to  limited liability  companies  (LLCs)  that hold  a                                                               
liquor  license [as  is currently  provided to  corporations that                                                               
hold  a  liquor  license],  Section  1 of  SB  78  would  add  to                                                               
AS 04.21.035   specific    references   to    limited   liability                                                               
partnerships (LLPs) and foreign LLPs  and to the partners of such                                                               
LLPs,  and  would  delete  the   reference  to  AS  10.50,  which                                                               
addresses LLCs specifically.  Section 2  of the bill, by adding a                                                               
new  section  315 to  AS  09.65,  would  limit the  liability  of                                                               
taxi/limousine drivers  who get in  an accident while  driving an                                                               
intoxicated person's vehicle from a licensed premise.                                                                           
                                                                                                                                
MS.  TEMPEL indicated  that these  days, LLCs  are often  used as                                                               
alternatives  to  corporations,  but   the  statutes  related  to                                                               
alcoholic  beverages don't  currently provide  the members  of an                                                               
LLC with the same protection  against liability as is provided to                                                               
the  owners  of a  corporation.    With  regard to  limiting  the                                                               
liability  of taxi/limousine  drivers  who  drive an  intoxicated                                                               
person's   vehicle  from   a   licensed   premise,  the   initial                                                               
legislation authorizing this  liability-limitation passed in 2004                                                               
and  included  a sunset  date  of  2007, which  was  subsequently                                                               
overlooked.  Section  2 of the bill contains  language similar to                                                               
that of the initial, authorizing  legislation, which was intended                                                               
to provide a deterrent to  driving under the influence (DUI), and                                                               
would  give taxi/limousine  companies  - except  in  the case  of                                                               
recklessness, gross negligence, or  intentional misconduct - some                                                               
legal immunity  in the  event that an  accident occurs  while the                                                               
taxi/limousine driver is driving the inebriated person's car.                                                                   
                                                                                                                                
2:15:14 PM                                                                                                                    
                                                                                                                                
MS. TEMPEL indicated that without passage  of SB 78, a lot of the                                                               
transportation  companies  [that  had  been  participating  in  a                                                               
program  established after  passage  of  the initial  legislation                                                               
aren't  going  to  participate anymore]  due  to  concerns  about                                                               
liability.    In  response  to a  question,  she  mentioned  that                                                               
Section 2's  proposed AS 09.65.315(d) specifies  what constitutes                                                               
consent by a motor vehicle  owner.  She surmised, therefore, that                                                               
if a  person has his/her car  keys taken away because  he/she has                                                               
had  too much  to drink,  that  that in  itself would  constitute                                                               
consent under the bill.                                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG questioned  whether Section 1's proposed                                                               
changes are necessary.                                                                                                          
                                                                                                                                
MS. TEMPEL offered her understanding  that liquor licenses aren't                                                               
generally held  by LLPs, and  that without passage of  Section 1,                                                               
in order to  ensure that there is a limitation  on its liability,                                                               
an LLC that  wishes to hold a liquor license  must first create a                                                               
shell corporation for that specific purpose.                                                                                    
                                                                                                                                
2:22:53 PM                                                                                                                    
                                                                                                                                
RICHARD  M.  ROSSTON, Attorney  at  Law,  Dorsey &  Whitney  LLP,                                                               
concurred that  LLPs aren't generally  formed for the  purpose of                                                               
holding a liquor  license; ventured that the  proposed changes to                                                               
AS 04.21.035 are  necessary in order to provide LLCs  that hold a                                                               
liquor license  with the same  limited liability as  is currently                                                               
provided  to  corporations  that   hold  a  liquor  license;  and                                                               
surmised that  back when  the aforementioned  initial legislation                                                               
was enacted, it  wasn't widely known that in  the business world,                                                               
LLCs are  treated more like  corporations than  partnerships, and                                                               
so Section 1 of SB 78  is merely proposing to correct the initial                                                               
legislation's  error  in  not   also  providing  similar  limited                                                               
liability for LLCs.  Under current  law, LLCs that wish to hold a                                                               
liquor  license and  still  have limited  liability  must form  a                                                               
separate corporation, and  this has proven to  be inefficient and                                                               
cumbersome.                                                                                                                     
                                                                                                                                
2:26:39 PM                                                                                                                    
                                                                                                                                
SILVIA   VILLAMIDES,   Director,    Anchorage   Cabaret,   Hotel,                                                               
Restaurant &  Retailers Association (Anchorage  CHARR), mentioned                                                               
that she  would be addressing  Section 2  of SB 78,  the proposed                                                               
limit  on liability  for  taxi/limousine drivers  who  get in  an                                                               
accident  while driving  an intoxicated  person's vehicle  from a                                                               
licensed premise.  She then  referred to and provided information                                                               
about a program started after  passage of the initial legislation                                                               
- the "Off the Road" program,  in which an inebriated person at a                                                               
participating  establishment can  request  a free  ride home  and                                                               
have his/her  vehicle driven home  as well - and  indicated favor                                                               
with  having  the  limitation  on  liability  for  taxi/limousine                                                               
drivers  reinstated in  statute.   In  conclusion, she  mentioned                                                               
that  a  survey  conducted  in 2002-2003  indicated  that  for  a                                                               
variety of reasons,  the majority of patrons  were very reluctant                                                               
to leave their vehicles at  a licensed premise overnight, thereby                                                               
illustrating the need  for legislation such as SB  78, passage of                                                               
which would encourage participation  by liquor-license holders in                                                               
the aforementioned program.                                                                                                     
                                                                                                                                
2:28:30 PM                                                                                                                    
                                                                                                                                
BOB  KLEIN,  Chairman,  Alcoholic Beverage  Control  Board  ("ABC                                                               
Board"),  Department of  Public  Safety (DPS);  Member, Board  of                                                               
Directors,  Alaska  Cabaret,  Hotel,  Restaurant  and  Retailer's                                                               
Association, Inc.  (Alaska CHARR); Director, Sales  and Marketing                                                               
(ph),  Brown Jug,  ventured that  SB 78  is intended  to fix  the                                                               
problem that  resulted from the initial,  authorizing legislation                                                               
having  contained  a  sunset   provision  that  was  subsequently                                                               
overlooked.   He characterized the aforementioned  "Off the Road"                                                               
program  as  a wonderful  program,  noting  that it's  nationally                                                               
recognized and  has done well  in the  cities that have  used it.                                                               
In  response to  a question,  he  clarified that  because no  one                                                               
realized at  the time that  the initial,  authorizing legislation                                                               
had sunset,  many participating establishments simply  kept using                                                               
the program,  and so  now entities have  been scrambling  to find                                                               
adequate insurance,  which is  very expensive.   On the  issue of                                                               
LLCs and AS 04.21.35, Mr. Klein  relayed that he concurs with Mr.                                                               
Rosston's  summation, adding  his belief  that with  the initial,                                                               
authorizing  legislation, it  was  no one's  intention to  remove                                                               
"corporate-type  protections"  [from  LLCs  that  hold  a  liquor                                                               
license].  In conclusion, he encouraged passage of SB 78.                                                                       
                                                                                                                                
2:31:45 PM                                                                                                                    
                                                                                                                                
J.  RANDALL CALL,  General  Counsel,  Alyeska Resort;  President,                                                               
Alyeska  Resort  Development  L.L.C., offering  some  of  Alyeska                                                               
Resort's   acquisition  history   -  as   it  related   to  LLCs,                                                               
corporations,  and  liability -  as  an  example of  the  problem                                                               
warranting  the changes  proposed  by Section  1, indicated  that                                                               
passage  of  SB  78  is important  for  encouraging  out-of-state                                                               
investors to participate in Alaska's business opportunities.                                                                    
                                                                                                                                
CHAIR  GATTO,  after ascertaining  that  no  one else  wished  to                                                               
testify, closed public testimony on SB 78.                                                                                      
                                                                                                                                
REPRESENTATIVE  THOMPSON  observed:    "The  language  in  Senate                                                               
Bill 78  does  not  prohibit  or   limit  an  injured  driver  or                                                               
passenger  ... from  pursuing damages  from any  other automobile                                                               
policy  which may  be available  to them  under the  uninsured or                                                               
underinsured policy coverage under  normal procedures of stacking                                                               
automobile insurance under AS 28.22.221."                                                                                       
                                                                                                                                
MS. TEMPLE and REPRESENTATIVE GRUENBERG concurred.                                                                              
                                                                                                                                
2:35:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON  moved to  report  CSSB  78(JUD) out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSSB  78(JUD)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                
2:37:32 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Judiciary Standing Committee meeting was adjourned at 2:37 p.m.                                                                 

Document Name Date/Time Subjects
SB15 Sponsor Statement 03-31-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB15 Version E 04-01-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB15 Explanation of Changes (Senate).pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB15 Fiscal Note-DOC-OC 03-14-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB15 Fiscal Note-LAW-CRIM 03-11-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB15 Supporting Documents-Letter ABADA 03-29-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB15 Supporting Documents-Letter APOA 02-14-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 15
SB78 Sponsor Statement.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB 78 Sectional Analysis.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Version I.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Fiscal Note-DPS-ABC 03-21-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Fiscal Note-LAW-CRIM 03-25-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Supporting Documents-Chart LLC vs LLP vs Corp.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Supporting Documents-Explanation of Proposed Amendments.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Supporting Documents-Letter Aleyska 02-14-11.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
SB78 Supporting Documents-Letter CHARR.pdf HJUD 4/13/2011 1:00:00 PM
SB 78
HB224 CS Version I 04-11-11.pdf HJUD 4/13/2011 1:00:00 PM
HB 224
HB224 Sponsor Statment Version I 04-12-11.pdf HJUD 4/13/2011 1:00:00 PM
HB 224