04/04/2011 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB156 | |
| HB50 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 156 | TELECONFERENCED | |
| *+ | HB 50 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 4, 2011
3:20 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Craig Johnson, Vice Chair
Representative Mike Chenault
Representative Dan Saddler
Representative Steve Thompson
Representative Lindsey Holmes
Representative Bob Miller
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 156
"An Act relating to the chair of the Regulatory Commission of
Alaska."
- MOVED OUT OF COMMITTEE
HOUSE BILL NO. 50
"An Act relating to the purchase of alcoholic beverages at a
club and to access by certain persons under 21 years of age to a
club's licensed premises when alcoholic beverages are present."
- MOVED OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 156
SHORT TITLE: CHAIR OF RCA
SPONSOR(s): REPRESENTATIVE(s) OLSON
02/11/11 (H) READ THE FIRST TIME - REFERRALS
02/11/11 (H) L&C
02/16/11 (H) BILL REPRINTED 2/16/11
04/04/11 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 50
SHORT TITLE: ACCESS TO LICENSED PREMISES
SPONSOR(s): REPRESENTATIVE(s) SADDLER
01/18/11 (H) PREFILE RELEASED 1/7/11
01/18/11 (H) READ THE FIRST TIME - REFERRALS
01/18/11 (H) L&C, JUD
04/04/11 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JENNIFER SENETTE, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 156 on behalf of the prime
sponsor, Representative Kurt Olson.
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 50 as prime sponsor of the
bill.
SHIRLEY GIFFORD, Director
Alcoholic Beverage Control Board (ABC Board)
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 50.
ACTION NARRATIVE
3:20:18 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:20 p.m. Representatives Olson,
Chenault, Johnson, Saddler, Thompson, Holmes, and Miller were
present at the call to order.
HB 156-CHAIR OF RCA
3:20:30 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 156, "An Act relating to the chair of the
Regulatory Commission of Alaska."
3:20:48 PM
JENNIFER SENETTE, Staff, Representative Kurt Olson, on behalf of
the prime sponsor, stated that HB 156 would allow the governor
to select a commissioner of the Regulatory Commission of Alaska
(RCA) to serve as the chair of the RCA for a three year term.
The appointment structure differs from the current structure, in
which the RCA commissioners select one member to serve as chair
for the following fiscal year. Under the bill, the RCA's chair
could serve no more than three successive terms, but could sit
out for one year and still be eligible to be considered to once
again serve as chair. She explained that having the chair
appointed by the governor is not a new concept. She referred to
a history of the RCA in members' packets that shows from 1970 to
2003 the governor designated the chair of the commission,
formerly known as the Alaska Public Utilities Commission (APUC).
Currently, 15 boards have a similar leadership structure,
including the Commercial Fisheries Entry Commission (CFEC); the
Workers' Compensation Appeals Commission (WCAC), the Labor
Relations Agency, the Occupational Health and Safety Board, the
Board of Marine Pilots, the Knik Arm Bridge and Toll Authority
(KABATA), and the Oil and Gas Conservation Commission (OGCC).
This bill would provide a three year-term for the RCA's chair,
which would provide greater degree of consistency for its
leadership. This is important since many of the issues and
dockets opened by the RCA span numerous years, so having a
leadership structure for more than one year would be
advantageous, she said.
3:23:10 PM
MS. SENETTE provided a section-by-section analysis of the bill.
The first section of HB 156 would allow the governor to appoint
one member of the RCA as chair and would establish the term at
three years. The second section of HB 156 would provide
transition language to account for the current RCA chair's term.
Under this provision the governor would designate the next chair
once the current RCA chair's term ends, she said.
3:23:55 PM
REPRESENTATIVE HOLMES related her understanding that currently
the RCA's chair is limited to three terms. She asked whether HB
156 would allow the chair to serve successive terms.
MS. SENETTE responded that nothing in HB 156 would prevent the
governor from designating the RCA's chair for consecutive terms.
However, given that the term limit of a commissioner is six
years, two successive terms would be the maximum allowed.
REPRESENTATIVE HOLMES recalled the RCA's commissioner terms are
staggered terms of six years. Theoretically, a governor would
be more likely to choose someone with at least three years
remaining of his/her term. However, HB 156 does not require
full chair terms be completed, she said.
CHAIR OLSON offered his belief that it was unlikely the governor
would select someone as chair who has less than three years of
his/her term remaining. He suggested someone on the committee
with experience overseeing boards and commissions may wish to
comment.
REPRESENTATIVE SADDLER answered that he did not have any
recollection on the matter.
CHAIR OLSON reiterated his belief that selecting someone to
serve out the chair's term would not be an issue.
REPRESENTATIVE HOLMES related a scenario in which the governor
selected someone with two years remaining. She offered her
belief that HB 156 would not extend the commissioner's term for
another year.
MS. SENETTE related her understanding that it would not do so.
3:26:20 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 156.
REPRESENTATIVE HOLMES asked whether the RCA or the Governor's
office had a position on the bill.
CHAIR OLSON related his understanding that the RCA and the
Governor's office were neutral on HB 156.
3:26:59 PM
REPRESENTATIVE JOHNSON moved to report HB 156 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HB 156 was reported from the
House Labor and Commerce Standing Committee.
3:27:26 PM
The committee took an at-ease from 3:27 p.m. to 3:30 p.m.
HB 50-ACCESS TO LICENSED PREMISES
3:30:27 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 50, "An Act relating to the purchase of alcoholic
beverages at a club and to access by certain persons under 21
years of age to a club's licensed premises when alcoholic
beverages are present."
3:30:45 PM
REPRESENTATIVE DAN SADDLER, Alaska State Legislature explained
that HB 50 does not seek to allow anyone under the age of 21 to
legally drink alcoholic beverages. Instead, he stated, HB 50 is
an access bill with two basic elements. First, the bill would
make it easier for service men and women, who are over the age
of 21 to enjoy companionship in the club houses of service and
patriotic organizations. Patriotic clubs, such as the American
Legion (AL), Veterans of Foreign Wars (VFW), and Disabled
American Veterans (DAV) are wonderful institutions where
veterans and active duty soldiers can relax and enjoy the
special understanding and support from others who have "been
there" and who understand the rigors of military life. The
legislature has recognized these values. In 2006 the
legislature passed a bill, Senate Bill 209, to allow active duty
men and women over the age of 21 to enter such clubs using their
military identification cards. Some language remains in statute
that limits that access only to special occasions. This bill
would remove that restriction, he said.
REPRESENTATIVE SADDLER explained that Section 2 of HB 50
pertains to military personnel under the age of 21. This bill
would allow minors to enter licensed premises of patriotic clubs
only if they are club members or are guests of members. He
reiterated that HB 50 does not permit minors to drink alcoholic
beverages on club premises. However, commanders often use such
clubs as locations for off base "commander calls" which are
informal meetings of small units to welcome soldiers home, to
send them off in deployment, or to impart important information.
Thus, excluding soldiers under the age of 21 could erode the
unit's cohesion and could affect their morale. He reiterated
that HB 50 would allow soldiers who are minors to enter these
patriotic or military clubs by using their military
identification so long as they are club members or are guests of
club members. He maintained the bill would not authorize
underage soldiers to drink alcoholic beverages. It would simply
clarify that soldiers over 21 do not have to wait for a special
occasion to visit these patriotic or military clubs. It would
also permit soldiers under the age of 21 to visit patriotic or
military clubs as members or as guests of members. He concluded
that this bill would help demonstrate that Alaska understands
and would like to accommodate the special needs of the young men
and women in uniform.
3:33:10 PM
REPRESENTATIVE MILLER asked whether a clear definition of club
or patriotic organization" licensed as a club exists.
3:33:41 PM
REPRESENTATIVE SADDLER answered that the current statutory
definition of "club license" is found in AS 04.11.110, which
reads:
(a) A club license authorizes a club or
organization to sell alcoholic beverages for
consumption only on the licensed premises.
(b) A club license may only be issued to a club,
fraternal organization, patriotic organization, or
social organization that has been (1) chartered by a
state or national organization for a period of two
consecutive years before application for a license
under this section; or (2) chartered by a national
organization and the national organization has
maintained a chartered club or organization within the
state for a period of at least 20 years. The
organization licensed under this section must be
operated for social, recreational, political,
benevolent, or athletic purposes and not for profit. A
club license may only be issued to an organization if
none of the income from the sale of alcoholic
beverages is distributed to its members, directors, or
officers. Soliciting of public patronage of the club
premises except as approved by the board is a
violation of this section.
3:34:44 PM
REPRESENTATIVE CHENAULT asked whether the military personnel who
are members of the clubs can currently patronize the club. He
related his understanding that club members over the age of 21,
who are soldiers, would meet all requirements and would not be
limited to club premises only for special occasions. He asked
whether this proposed change in Section 1 would address soldiers
over the age of 21 who are not members of the club or
organization.
REPRESENTATIVE SADDLER agreed. He elaborated the purpose of the
bill is to eliminate confusion about what might constitute a
special occasion and who may decide what would constitute a
special occasion.
3:36:01 PM
REPRESENTATIVE CHENAULT asked whether a member of the VFW, over
the age of 21, would be allowed to take a friend into the VFW,
who is not a member of the armed services and be served
alcoholic beverages.
REPRESENTATIVE SADDLER answered yes. He said he based his
answer on his own experience as a guest at a VFW in his
district.
REPRESENTATIVE THOMPSON pointed out that the VFW member's guest
must sign in as a guest. He explained that a nonmember by state
law cannot purchase an alcoholic beverage. The sponsor of the
guest must purchase the alcoholic beverage, he said.
REPRESENTATIVE SADDLER clarified that this bill does not apply
to the purchase of alcoholic beverages, but pertains to access
to licensed premises only.
3:37:20 PM
REPRESENTATIVE JOHNSON expressed concern about any added
liability the owner of the premise would incur if unaccompanied
minors are on premises where alcoholic beverages are served. He
asked whether guests would be "carded" since identification is
normally checked at the bar at the time of purchase.
REPRESENTATIVE SADDLER responded that current law allows those
over the age of 16 and under the age of 21 to enter licensed
premises if they are with a parent or guardian. Typically,
according to one canteen owner, soldiers watch out for their
buddies. Thus, he did not envision this as an issue.
REPRESENTATIVE JOHNSON offered his belief the proposed bill
would not relieve the club of any liability. He asked whether
an establishment's license would be at risk.
3:38:49 PM
SHIRLEY GIFFORD, Director, Alcoholic Beverage Control Board (ABC
Board), Department of Public Safety (DPS), introduced herself.
REPRESENTATIVE JOHNSON asked whether a licensed premise could be
held liable if a minor purchased alcoholic beverages in a club
or patriotic organization. He also asked whether minors would
need to be "carded" by the club, such as the VFW.
MS. GIFFORD confirmed the liability for a minor purchasing
alcohol rests with the child. However, bartenders and servers
must ensure any person they sell alcoholic beverages to is 21
years of age or older. She agreed some liability exists for the
licensee, but only in the event the licensee sold an alcoholic
beverage to an underage person.
3:40:29 PM
REPRESENTATIVE JOHNSON asked whether the ABC Board currently
performs compliance checks on service organizations.
MS. GIFFORD advised members that the ABC Board performs
compliance checks at service clubs but not as frequently as for
private sector clubs. In the past five years, the ABC Board's
investigator reported clubs had 36 sales to a non-club member
and 16 furnishings of alcoholic beverages to minors. She
explained that the ABC Board's effort to require magnetic cards
or membership cards was met with considerable resistance from
clubs. She reported that the ABC Board "backed away" from its
efforts to require membership cards due to the bylaws of the
private clubs and organizations and the specific federal laws
that apply to them. She expressed concern about the possibility
of minor consuming and driving after drinking. She explained
that the clubs cooperate with the ABC Board. However, the VFW
and similar clubs require identification as people enter their
premises, including ABC Board investigators, which hinders
compliance checks, she said. She maintained her concern over
increased access of minors entering the patriotic organization
clubs.
3:42:30 PM
REPRESENTATIVE JOHNSON asked whether underage persons on
premises would constitute a violation in a bar.
MS. GIFFORD answered that underage persons are not allowed in a
bar unless they are accompanied by a parent or guardian.
Therefore, if an underage person is at a bar, such as Chilkoot
Charlies, he/she would be charged.
REPRESENTATIVE JOHNSON related his understanding that under HB
50, this would not be an issue in service organizations.
MS. GIFFORD answered yes. She related that should HB 50 pass,
that a person under the age of 21 would be on the premise
legally.
CHAIR OLSON asked for clarification that the bill would
specifically apply to military personnel under 21 years of age.
REPRESENTATIVE SADDLER answered yes, that is correct.
CHAIR OLSON asked whether the underage soldiers could visit
premise that sells alcoholic beverages on a military base.
MS. GIFFORD responded that the ABC Board does not enforce liquor
laws on military bases. Thus, she was unsure whether underage
soldiers were allowed at military clubs, although she has heard
anecdotally both yes and no. She offered to research the issue.
She reiterated that the ABC Board does not enforce the state
laws on military bases.
REPRESENTATIVE SADDLER related his understanding that the thrust
of the question is whether any additional liability would exist
to licensed premises with persons under the 21 years of age on
premises legally without a parent or guardian. He related that
he would answer probably not. He offered his belief that some
liability would exist but probably not any additional liability
under the bill.
CHAIR OLSON offered his belief that it would be the same as if
he took his daughter, if she were under 21 years of age, to a
restaurant that also has a full bar.
REPRESENTATIVE SADDLER agreed. He reiterated his understanding
that soldiers tend to watch out for one another and bartenders
are diligent. He said he is not saying underage drinking never
happens but that other soldiers and bartenders watch out for
underage military personnel.
3:45:40 PM
REPRESENTATIVE THOMPSON related a scenario in which three of
four soldiers over the age of 21 enter a club and sign in at the
door. One person is a minor. One of the adult soldiers
approaches the bar and purchases alcoholic beverages for his
buddies who sit at table farthest away from the bar. He asked
whether the establishment would be held liable for the underage
person drinking alcoholic beverages since the bartender did not
go to the table to monitor who is drinking the alcohol.
REPRESENTATIVE SADDLER pointed out current laws against underage
drinking would apply in that situation.
MS. GIFFORD answered that situation would be monitored as part
of any compliance checks. She pointed out that HB 50 would make
it more difficult for the ABC Board's enforcement officers to
oversee minor consuming in private clubs. It would simply add
another element, such as whether the alcoholic beverages are
being consumed by the underage person or his/her friends sitting
at the table. She maintained that the access of the underage
person to alcoholic beverages would make it more challenging to
enforce.
3:48:11 PM
REPRESENTATIVE MILLER offered his belief that HB 50 would seem
to place a lot more stress on bar owners, club owners, waiters,
waitresses, and the 21-year-olds who are purchasing alcohol when
a minor is part of their group. He pointed out that it would
require considerable supervision of younger person coming into
the facility.
REPRESENTATIVE SADDLER reiterated that his research indicates
that issues do not often arise. He recalled testimony given on
other bills, such that the DPS has reported underage drinking by
the military is not one of their big problems. He offered his
belief that not many violations occur with servicemen, which is
why not as much effort is needed for compliance checks at
service organizations. He stressed that under the bill the
current liquor laws would still apply and still allow ABC agents
to enter patriotic clubs.
MS. GIFFORD reviewed the violation statistics for the past five
years. Clubs had 36 sales to non-club members and 16
furnishings of alcohol to minors, she said. She indicated other
violations have also occurred such as sales to inebriated
persons. She agreed the ABC Board does not receive calls to
clubs as often as for other licensed premises, but some
violations still occur. She pointed out that the ABC Board does
not enter clubs as often as other premises. She offered that
trying to compare clubs and patriotic organizations to other
licensed premises is difficult.
3:50:29 PM
CHAIR OLSON recalled from his own military service that other
consequences exist for soldiers, including that the military can
take additional actions against soldiers. He offered his belief
that not a lot of underage drinking happens in military
establishments.
REPRESENTATIVE SADDLER explained that Section 2 of HB 50 does
not open the door wider. It simply eliminates the limitation
and reference to special occasions. He recapped that he does
not think this bill would increase underage drinking. This is
an access bill. It just ensures that those are legally entitled
to enter licensed premises can do so without limitations.
Additionally, military personnel over 21 years of age would be
allowed to enter private clubs and patriotic organizations as
guests.
3:52:18 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 50.
3:52:41 PM
REPRESENTATIVE JOHNSON asked for the ABC Board's position on the
bill.
MS. GIFFORD responded that the ABC Board does not have any
position. She stated that she raised some concerns for the
committee to consider in her testimony. She said that the ABC
Board does not currently know when special occasions occur at
clubs so she does not object to the provisions of the bill. She
maintained her concern is limited to the additional access to
alcoholic beverages by underage persons.
3:54:29 PM
REPRESENTATIVE CHENAULT moved to report HB 50 out of committee
with individual recommendations and the accompanying fiscal
note.
REPRESENTATIVE JOHNSON objected. He then removed his objection.
There being no further objection, HB 50 was reported from the
House Labor and Commerce Standing Committee.
3:55:41 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB156 ver A.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 156 |
| HB156 Sponsor Statement.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 156 |
| HB156 Sectional Summary.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 156 |
| HB156 Fiscal Note-CCED-RCA-03-31-11.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 156 |
| HB156 Supporting Documents-Webpage RCA Informational Sheet 3-30-2011.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 156 |
| HB156 Supporting Documents-Webpage RCA Roster 3-30-11.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 156 |
| HB50 ver A.pdf |
HJUD 3/14/2012 1:00:00 PM HL&C 4/4/2011 3:15:00 PM |
HB 50 |
| HB50 Sponsor Statement.pdf |
HJUD 3/14/2012 1:00:00 PM HL&C 4/4/2011 3:15:00 PM |
HB 50 |
| HB50 Sectional Analysis.pdf |
HJUD 3/14/2012 1:00:00 PM HL&C 4/4/2011 3:15:00 PM |
HB 50 |
| HB50 Supporting Documents - Email David Lemelin 3-7-2011.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 50 |
| HB50 Fiscal Note L&C.pdf |
HL&C 4/4/2011 3:15:00 PM |
HB 50 |