Legislature(2009 - 2010)CAPITOL 106
04/06/2010 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB261 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 261 | TELECONFERENCED | |
| + | SB 244 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
April 6, 2010
8:09 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Paul Seaton, Vice Chair
Representative Carl Gatto
Representative Craig Johnson
Representative Peggy Wilson
Representative Max Gruenberg
Representative Pete Petersen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 261(L&C)
"An Act relating to the membership of the Alcoholic Beverage
Control Board; and providing for an effective date."
- MOVED HCS CSSB 261(STA) OUT OF COMMITTEE
SENATE BILL NO. 244
"An Act providing that, during the governor's term of office,
the duty station of the governor is Juneau, and prohibiting
payment of certain travel allowances for use of the governor's
personal residence."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 261
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL BD MEMBERS
SPONSOR(s): SENATOR(s) OLSON
02/05/10 (S) READ THE FIRST TIME - REFERRALS
02/05/10 (S) STA, L&C
02/18/10 (S) STA RPT 4DP
02/18/10 (S) DP: MENARD, FRENCH, MEYER, KOOKESH
02/18/10 (S) STA AT 9:00 AM BELTZ 105 (TSBldg)
02/18/10 (S) Moved SB 261 Out of Committee
02/18/10 (S) MINUTE(STA)
03/16/10 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/16/10 (S) Moved CSSB 261(L&C) Out of Committee
03/16/10 (S) MINUTE(L&C)
03/17/10 (S) L&C RPT CS 3DP 1DNP SAME TITLE
03/17/10 (S) DP: PASKVAN, MEYER, DAVIS
03/17/10 (S) DNP: BUNDE
03/23/10 (S) TRANSMITTED TO (H)
03/23/10 (S) VERSION: CSSB 261(L&C)
03/24/10 (H) READ THE FIRST TIME - REFERRALS
03/24/10 (H) STA
04/01/10 (H) STA AT 8:00 AM CAPITOL 106
04/01/10 (H) Heard & Held
04/01/10 (H) MINUTE(STA)
04/06/10 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
TIM BENINTENDI, Staff
Senator Donny Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 261 on behalf of Senator
Olson, sponsor.
ROBERT BEASLEY, Enforcement Supervisor
Alcoholic Beverage Control Board
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
261.
ACTION NARRATIVE
8:09:26 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:09 a.m. Representatives Seaton, Gatto,
Johnson, Wilson, Petersen, and Lynn were present at the call to
order. Representative Gruenberg arrived as the meeting was in
progress.
SB 261-ALCOHOLIC BEVERAGE CONTROL BD MEMBERS
8:09:52 AM
CHAIR LYNN announced that the only order of business was CS FOR
SENATE BILL NO. 261(L&C), "An Act relating to the membership of
the Alcoholic Beverage Control Board; and providing for an
effective date."
8:10:57 AM
REPRESENTATIVE SEATON moved to adopt, as a work draft, the House
committee substitute (HCS) to CSSB 261, Version 26-LS1406\P,
Cook, 4/5/10, in which subparagraph (B), on page 2, line 9, is
deleted and replaced with the following handwritten language:
(B) is an established village that is located in a
borough or in the unorganized borough; for purposes of
this subparagraph, "established village" has the
meaning given in AS 04.21.080.
There being no objection, Version P was before the committee.
8:11:08 AM
TIM BENINTENDI, Staff, Senator Donny Olson, Alaska State
Legislature, presented SB 261 on behalf of Senator Olson,
sponsor. He highlighted the changes incorporated in Version P.
He directed attention to page 1, line 11, where the
specification regarding how many members of the board would be
allowed to "be engaged in the same business, occupation, or
profession" was changed from "No three" to "Not more than two".
Mr. Benintendi directed attention to the second change on page
2, beginning on line 5, which read as follows [original
punctuation provided with some handwritten changes]:
(2) "rural area" means a community with a
population of 6,000 or less that is not connected by
road or rail to Anchorage or Fairbanks, and that is
(A) a city; for purposes of this
subparagraph, "city" has the meaning given in AS
29.71.800; or
(B) is an established village that is
located in a borough or in the unorganized borough;
for purposes of this subparagraph, "established
village" has the meaning given in AS 04.21.080.
MR. BENINTENDI said that language is basically the same as in
the original bill version, except that the population figure was
raised from 4,500 to 6,000, which expanded the number of
communities from which applicants could come, while still
maintaining the bill sponsor's intent for the bill.
8:14:18 AM
MR. BENINTENDI offered his understanding that there is a roster
of place names that was given to the committee, which "conforms
to the structure of this bill." He indicated 94,000 is the
"ultimate field."
MR. BENINTENDI said if committee members want the language in
subparagraph (B) to also include organized boroughs, then an
amendment would be necessary.
8:17:19 AM
REPRESENTATIVE JOHNSON moved to adopt Conceptual Amendment 1, as
follows:
Page 2, following (B):
Insert "(C) but a rural area does not mean a
community, city, or established village which is dry
or damp under provisions of a local-option election."
REPRESENTATIVE P. WILSON objected to Conceptual Amendment 1 for
discussion purposes.
REPRESENTATIVE JOHNSON said the purpose of Conceptual Amendment
1 is to put members on the board who deal with communities where
there is a liquor license in the community.
CHAIR LYNN said that makes sense.
8:18:12 AM
REPRESENTATIVE SEATON [objected to Conceptual Amendment 1]. He
explained that he thinks Conceptual Amendment 1 made sense for
the former bill version, which specified that the communities
must have held a local option election, but now Version P
specifies that ["rural area"] must have a population of 6,000 or
less. He continued as follows:
I think that … when a community votes on these issues,
… it is generally a close election, so someone that is
in that community that may have voted not to select
that local option is fully vested and fully aware of
the problems of this type of a structure, as well. …
I think that that gives a good perspective for the
board. So, I'm not advocating we go back to language
that says there has to have been a local option
election, but I would like to not disenfranchise
anybody from one of those communities from serving on
the board.
8:19:38 AM
REPRESENTATIVE JOHNSON responded that if dry and damp
communities are included, then that would place the ABC Board in
the position of having to enforce law, and the board has no
power for recourse.
8:20:48 AM
REPRESENTATIVE SEATON said that is almost like saying that
anyone who does not drink alcohol should not be allowed to serve
on the board. He said he worries when barriers start being put
in place. He related that he is happier that the population
requirement was changed to 6,000 in Version P.
REPRESENTATIVE JOHNSON said [barring anyone who does not drink
from serving on the board] would be "crossing the line."
8:21:52 AM
MR. BENINTENDI, in response to Representative Wilson, indicated
that the bill sponsor supports [Conceptual Amendment 1].
8:24:12 AM
REPRESENTATIVE SEATON, in response to Representative Gruenberg,
clarified that adopting Conceptual Amendment 1 would result in
those from dry or damp communities not being allowed to serve on
the ABC Board.
8:26:20 AM
REPRESENTATIVE GRUENBERG moved to adopt an amendment to
Conceptual Amendment 1, to move "or", on page 2, line 8, to the
end of subparagraph (B), because he offered his understanding
that a new subparagraph (C) would follow if Conceptual Amendment
1 is adopted.
8:27:30 AM
REPRESENTATIVE P. WILSON objected to the amendment to Conceptual
Amendment 1. She explained that the "or" on page 2, line 8, is
between subparagraphs (A) and (B), because under Version P, a
rural area must meet the requirements in paragraph (2) and
subparagraph (A) "or" (B).
8:29:08 AM
REPRESENTATIVE GRUENBERG withdrew his motion to adopt an
amendment to Conceptual Amendment 1.
8:29:17 AM
REPRESENTATIVE SEATON clarified that if Conceptual Amendment 1
is adopted, a person from a community that has both held a local
option election and selected to be damp or dry would not be
allowed to serve on the board. He added, "But if there had been
no [local option] election in that community and there was no
liquor store or something else, those people could serve on the
board."
8:30:23 AM
REPRESENTATIVE JOHNSON said his preference is that a damp or dry
community, whether or not it has held a local option election,
would not be eligible to have one of its members serve on the
board; however, he said he is willing to keep Conceptual
Amendment 1 as is, because the sponsor has stated his support of
it. He said he does not know of any dry communities that have
not had local option elections. He indicated that the committee
had heard from the ABC Board that a community that has not held
a local option election is assumed not to be dry.
8:31:21 AM
MR. BENINTENDI relayed that when the bill sponsor considered
Conceptual Amendment 1, he used the status of a community as
criteria.
8:31:49 AM
REPRESENTATIVE GATTO reiterated his concern about placing
restrictions, because he said he does not think it is the
intention of the bill sponsor to narrow the number of eligible
people.
8:33:09 AM
MR. BENINTENDI indicated that the bill sponsor is pleased with
the bill, as written.
8:34:22 AM
REPRESENTATIVE P. WILSON said it seems as though it would be
beneficial to have people serving on the ABC Board who are from
towns with liquor licenses, because they would be more connected
to the issues addressed by the board and the ramifications of
the board's decisions.
8:35:24 AM
REPRESENTATIVE GATTO said every rural community, under state
law, starts out a wet community, and in order to change that
status must hold a local option election. He said he thinks
people are valuable to the board who are from communities that
used to be wet, but now are [dry or damp], because those people
see both sides of the issue. He said he would oppose any
amendment that would restrict the number of people that are
available to serve on the board.
8:36:55 AM
REPRESENTATIVE PETERSEN suggested that there may be communities
in Alaska that are wet, but "don't have anyone with a liquor
license." He suggested that it is not economically viable for a
community of 12-18 people to have an alcohol beverage license.
8:37:33 AM
REPRESENTATIVE SEATON, in response to Chair Lynn, confirmed that
he maintained his objection to the motion to adopt Conceptual
Amendment 1.
REPRESENTATIVE GRUENBERG stated his objection to Conceptual
Amendment 1. He said the basic intent of the bill is to provide
rural representation, and cutting out further constituents from
eligibility on the board would not serve the purpose of the bill
sponsor. He opined that a person from a rural community would
bring a certain perspective to the board, whether or not that
community happens to be wet, damp, or dry.
8:38:38 AM
A roll call vote was taken. Representatives Johnson and Wilson
voted in favor of adopting Conceptual Amendment 1.
Representatives Gatto, Gruenberg, Petersen, Seaton, and Lynn
voted against it. Therefore, Conceptual Amendment 1 failed by a
vote of 2-5.
8:39:10 AM
REPRESENTATIVE JOHNSON moved to adopt Conceptual Amendment 2, as
follows:
Page 2, line 6, following "Fairbanks,":
Insert "or a community of more than 6,000 that is
not connected by road or rail to Anchorage or
Fairbanks and has participated in a local-option
election,"
REPRESENTATIVE GRUENBERG objected for discussion purposes.
REPRESENTATIVE JOHNSON indicated that a representative from the
City of Bethel expressed concern that the latest U.S. Census
information will show the City of Bethel as having more than
6,000 residents, which would disqualify that community under the
proposed legislation. He said the City of Bethel has as severe
a problem with [the issue of alcohol] as any other community in
the state and has requested this amendment.
8:41:10 AM
REPRESENTATIVE GATTO suggested there are two ways to resolve the
issue: to set a certain U.S. Census date or to set a certain
population number. He indicated that Conceptual Amendment 2
would allow populations of more than 6,000, while Version P
would allow populations of 6,000 or less, which would mean
everyone would be included.
REPRESENTATIVE JOHNSON pointed out that those communities on the
Railbelt and road system would be excluded, which he said is the
intention of the bill.
8:42:06 AM
REPRESENTATIVE P. WILSON point out that Conceptual Amendment 2
would put Sitka on the qualified list.
8:42:18 AM
REPRESENTATIVE GRUENBERG, in response to Representative Gatto,
said he thinks the population at the time of appointment to a
board seat would be the deciding factor. He then asked
Representative Wilson if she knows if Sitka has participated in
a local option election.
REPRESENTATIVE WILSON said she does not know if Sitka has
participated in a local option election, although the community
does have a liquor store. She said she does know that the
community is not connected to Fairbanks by road or rail.
REPRESENTATIVE GRUENBERG offered his understanding that under
the proposed legislation, Sitka would have to have participated
in a local option election in order to qualify.
REPRESENTATIVE JOHNSON observed that language regarding local
option elections is no longer in [Version P].
REPRESENTATIVE GRUENBERG indicated "that would be a criterion"
under Conceptual Amendment 2.
REPRESENTATIVE JOHNSON said he knows that the City of Bethel has
participated in a local option election and should not be
excluded from representation on the board.
8:44:08 AM
[Chair Lynn passed the gavel to Vice Chair Seaton.]
8:44:24 AM
REPRESENTATIVE PETERSEN suggested language be added to the bill
to specify that the City of Bethel is to be included.
REPRESENTATIVE JOHNSON responded that that would be
unconstitutional.
REPRESENTATIVE GRUENBERG concurred.
REPRESENTATIVE P. WILSON questioned the need for the local
option language.
8:45:11 AM
MR. BENINTENDI stated, "The language in Conceptual Amendment 2
is exclusive to Bethel." He related that the City of Bethel's
current population is officially still fewer than 6,000, but is
close to surpassing 6,000. He reminded members that the
proposed Conceptual Amendment 2 includes the language "that is
not connected by road or rail" and "has participated in a local-
option election"; therefore, this amendment [presently] would
apply only to the City of Bethel.
REPRESENTATIVE P. WILSON said she wants to ensure that the
committee is doing what the bill sponsor wants as encompassed in
Version P [with the proposed Conceptual Amendment 2]. She
concluded, "So, it doesn't have to be all of these; it's this
one, this one, or this one."
8:47:02 AM
MR. BENINTENDI responded that that is the intention and stated
that "we are very comfortable with the language." He emphasized
the City of Bethel has been a community of interest since the
bill's inception.
8:47:26 AM
REPRESENTATIVE GRUENBERG pointed out that under Conceptual
Amendment 2, Juneau, for example, which is not connected by rail
or road, could hold an open election, remain a wet community,
and be eligible to have a person from its community serve on the
rural board seat.
MR. BENINTENDI confirmed that technically that is correct.
8:49:28 AM
REPRESENTATIVE GRUENBERG removed his objection to the motion to
adopt Conceptual Amendment 2.
8:49:53 AM
REPRESENTATIVE GATTO objected. He indicated concern that it has
not been identified what the source will be to determine
populations.
8:50:54 AM
VICE CHAIR SEATON pointed out that under the proposed
legislation, a community under 6,000 would qualify for a rural
seat, and [Conceptual Amendment 2] would allow an exception for
a community with a population over 6,000, which meets other
criteria. He suggested that Representative Gatto bring his
point up again after Conceptual Amendment 2 has been addressed.
8:52:45 AM
REPRESENTATIVE GATTO withdrew his objection. There being no
further objection, Conceptual Amendment 2 was adopted.
8:54:09 AM
REPRESENTATIVE GRUENBERG directed attention to the handwritten
language in Version P, which references AS 04.21.080. He said
"established village" is defined in [paragraph] (9) of that
statute, and since "the bill is in Title 04," it is not
necessary to reference AS 04.21.080 in subparagraph (B).
8:55:10 AM
REPRESENTATIVE GRUENBERG moved to adopt Amendment 3, as follows:
Page 2, in subparagraph (B), following "unorganized
borough":
Delete "; for purposes of this subparagraph,
'established village' has the meaning given in AS
04.21.080."
VICE CHAIR SEATON objected for discussion purposes. He asked if
the reference to AS 29.71.800 on page 2, line 8 - regarding the
definition of "city" - should also be deleted.
REPRESENTATIVE GRUENBERG answered no. He explained that the
definition of "city" comes from a different title; therefore, it
must be noted in the bill language.
8:56:48 AM
VICE CHAIR SEATON removed his objection. There being no further
objection, Amendment 3 was adopted.
8:57:26 AM
VICE CHAIR SEATON returned to the issue brought forth previously
by Representative Gatto regarding the source of population
statistics. He said not establishing which source those
statistics come from may be problematic.
8:58:58 AM
REPRESENTATIVE PETERSEN concurred. He suggested that the 2010
U.S. Census be the source indentified.
8:59:29 AM
VICE CHAIR SEATON suggested that the committee instead designate
the population statistics generated during annual community and
municipal revenue sharing.
9:00:03 AM
REPRESENTATIVE P. WILSON offered her understanding that the
Department of Labor & Workforce Development also generates
population statistics.
VICE CHAIR SEATON, in response to a question from Representative
Wilson, stated his belief that the legislature gets population
statistics for revenue sharing purposes from the Department of
Commerce, Community, & Economic Development (DCCED); however, he
opined that the department need not be identified in the bill
language. Instead, he suggested that the bill could note that
the populations were determined by the revenue-sharing formula.
9:00:56 AM
REPRESENTATIVE GRUENBERG said he wants to hear from someone on
the ABC Board regarding the source of population statistics.
9:01:13 AM
ROBERT BEASLEY, Enforcement Supervisor, Alcoholic Beverage
Control Board, in response to Vice Chair Seaton, said he is not
certain what source the board uses, but suggested the most
current U.S. Census or statistics from DCCED. In response to
Representative Gruenberg, he said he believes the board
currently has the discretion to use the most current statistics.
REPRESENTATIVE GRUENBERG said he would like the board to have
the discretion to do that by regulation.
9:03:45 AM
VICE CHAIR SEATON moved to adopt Conceptual Amendment 4, such
that the numbers used for community population would be the
numbers used for community revenue sharing by the State of
Alaska.
REPRESENTATIVE GRUENBERG objected.
VICE CHAIR SEATON spoke to Conceptual Amendment 4. He said the
state must generate population statistics each year for revenue
sharing. It is all done on a per capita basis, he said;
therefore, every municipality's population is determined for
revenue sharing.
9:05:04 AM
REPRESENTATIVE GRUENBERG spoke to his objection. He indicated
that that may not be the most recent statistic when a board seat
opens. He said "we" used to have municipal assistance, but no
longer do, and at some point "they might go away from revenue
sharing for some reason." He said he would like to know the
bill sponsor's opinion of Amendment 4.
9:05:57 AM
MR. BENINTENDI said the bill sponsor would be "satisfied either
way."
9:06:09 AM
REPRESENTATIVE JOHNSON reminded Representative Gruenberg that
whatever the regulations of the ABC Board are, it has nothing to
do with the appointment of its members. He indicated that the
policy call to be made may affect statute and the governor's
process.
9:06:52 AM
REPRESENTATIVE GRUENBERG removed his objection. There being no
further objection, Conceptual Amendment 4 was adopted.
9:08:24 AM
MR. BEASLEY, in response to Representative Johnson, said Shelley
Gifford, the director of the ABC Board, has told him that the
board is neutral on the issue [of SB 261]; therefore, the board
has no recommendations to offer.
9:08:51 AM
REPRESENTATIVE GATTO said he thinks the committee has "done the
right work."
9:09:05 AM
REPRESENTATIVE GATTO moved to report the proposed House
committee substitute (HCS) for SB 261, Version 26-LS1406\P,
Cook, 4/5/10, as amended, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, HCS CSSB 261(STA) was reported out of the House
State Affairs Standing Committee.
The committee took an at-ease from 9:10:04 AM to 9:10:35 AM.
9:10:37 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:11
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS for SB 261 P Version and other updated packet info.pdf |
HSTA 4/6/2010 8:00:00 AM |
SB 261 |
| Copy of SB261 spreadsheet up to 6K pop.xlsx |
HSTA 4/6/2010 8:00:00 AM |
SB 261 |