Legislature(1993 - 1994)
04/23/1994 09:00 AM Senate JUD
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE JUDICIARY COMMITTEE
April 23, 1994
9:00 a.m.
MEMBERS PRESENT
Senator Robin Taylor, Chairman
Senator Rick Halford, Vice-Chairman
Senator George Jacko
Senator Suzanne Little
MEMBERS ABSENT
Senator Dave Donley
OTHERS PRESENT
Representative Cynthia Toohey
Representative Brian Porter
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 299(HES)
"An Act relating to revocation of a driver's license for illegal
possession or use of a controlled substance or illegal possession
or consumption of alcohol; and providing for an effective date."
CS FOR HOUSE BILL NO. 315(JUD)
"An Act relating to the unauthorized use of or unauthorized
interference with transmission and delivery of subscription cable
services; and amending the definition of the offense of theft of
services and the penalties for its violation."
CS FOR HOUSE BILL NO. 302(STA)
"An Act excluding certain sports officials and certain recreational
activities sanctioned by an employer from coverage provided under
workers' compensation; and providing for an effective date."
CS FOR HOUSE BILL NO. 333(RES)
"An Act amending the Alaska Land Act to define the term `state
selected land' for the purpose of recognizing mining locations, and
giving retrospective effect to the amendment; and providing for an
effective date."
CS FOR HOUSE BILL NO. 410(STA)
"An Act relating to real estate appraisers and the Board of
Certified Real Estate Appraisers."
SENATE BILL NO. 279
"An Act relating to operating or driving a motor vehicle,
commercial motor vehicle, aircraft, or watercraft."
SENATE BILL NO. 372
"An Act relating to community local options for control of
alcoholic beverages; relating to the control of alcoholic
beverages; relating to the definition of `alcoholic beverage'; and
providing for an effective date."
CS FOR SENATE BILL NO. 367(HES)
"An Act relating to health care and insurance for health care; to
review and approval of health insurance rates and rating factors;
relating to certain civil actions against health care providers; to
coordination of insurance benefits and to determination and
disclosure of fees paid to an insured or health care provider;
relating to the offense of operating a commercial motor vehicle
while intoxicated and the offense of operating a motor vehicle,
aircraft, or watercraft while intoxicated; relating to presumptions
arising from the amount of alcohol in a person's breath or blood;
relating to the rate of interest on certain judgments and decrees;
to excise taxes on cigarettes; amending Alaska Rules of Civil
Procedure 26, 27, 68, 79, and 82 and Alaska Rules of Evidence 802,
803, and 804; repealing Alaska Rule of Civil Procedure 72.1; and
providing for an effective date."
CS FOR SENATE BILL NO. 161(STA)
"An Act relating to interest rates and calculation of interest
under certain judgments and decrees and on refunds of certain
taxes, royalties, or net profit shares; and providing for an
effective date."
SENATE CONCURRENT RESOLUTION NO. 18
Requesting the governor to offer the United States Congress
$10,000,000,000 in cash, or other terms that may be negotiated
between the state and the federal government, to purchase all
federal land, water, or land and water, including any surface or
subsurface interests, in Alaska other than military reservations
and federal offices, to have the federal government relinquish all
dominion, control, and regulatory authority over all land, water,
or land and water, including surface or subsurface interests, in
Alaska other than military reservations and federal offices, and
providing a bonus if certain federal agencies are removed from the
state within six months of the federal sale to the state and
relinquishment of control.
SENATE CS FOR CS FOR HOUSE BILL NO. 79(HES)
"An Act relating to recovery from a parent or legal guardian of
wilful or malicious destruction of property by a minor."
PREVIOUS SENATE COMMITTEE ACTION
HB 299 - See State Affairs minutes dated 4/11/94.
HB 315 - See State Affairs minutes dated 3/30/94 and 4/6/94.
HB 302 - NO PREVIOUS ACTION.
HB 333 - See Resources minutes dated 3/21/94.
HB 410 - NO PREVIOUS ACTION.
SB 279 - See State Affairs minutes dated 3/9/94 and 3/11/94.
See Judiciary minutes dated 3/28/94.
SB 372 - NO PREVIOUS ACTION.
SB 367 - See Health, Education & Social Services minutes dated
3/28/94, 3/30/94, 4/6/94 and 4/7/94. See Judiciary
minutes dated 4/8/94.
SB 161 - See State Affairs minutes dated 4/2/93 and 4/7/93.
See Judiciary minutes dated 4/14/93 and 4/20/93.
SCR 18 - See Resources minutes dated 4/8/94 and 4/11/94.
See Judiciary minutes dated 4/18/94.
HB 79 - See Health, Education & Social Service minutes dated
2/2/94. See Judiciary minutes dated 4/18/94.
WITNESS REGISTER
Eric Musser, Legislative Assistant
Representative Brian Porter
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Supports HB 315.
Gary Haines
Vice-President of Prime Cable
Servicing Anchorage, Kenai, Soldotna,
and Bethel.
POSITION STATEMENT: Supports HB 315.
Pat Smutz
Alaska State AFL-CIO
2501 Commercial Drive
Anchorage, Alaska 99501
POSITION STATEMENT: Opposed HB 302.
Jack Heesch, President
Alaska Softball Association
Box 201608
Anchorage, Alaska 99520
POSITION STATEMENT: Supports HB 302.
Jack Phelps, Aide
Representative Pete Kott
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Introduced HB 333.
Diane Lauber
Anheiser Bush
321 Highland Drive
Juneau, Alaska 99801
POSITION STATEMENT: Opposed SB 372.
Resa Jerrel
National Federation of Independent Business
9159 Skywood Lane
Juneau, Alaska 99801
POSITION STATEMENT: Opposed SB 372.
Pat Sharrock, Director
Alcoholic Beverage Control Board
550 W. 7th Ave., Suite 350
Anchorage, Alaska 99801
POSITION STATEMENT: Supports SB 372.
ACTION NARRATIVE
TAPE 94-38, SIDE A
Number 001
CHAIRMAN ROBIN TAYLOR called the Judiciary Committee meeting to
order at 9:00 a.m.
SENATOR TAYLOR invited REPRESENTATIVE CYNTHIA TOOHEY to review her
bill, CS FOR HOUSE BILL NO. 299(FIN) am (DRIVER'S LICENSE
REVOCATION:ALCOHOL/DRUGS). After a short discussion, SENATOR
HALFORD moved to pass HB 299 from committee with individual
recommendations. Without objections, so ordered.
SENATOR TAYLOR introduced HB 315 (THEFT OF SUBSCRIPTION TV
SERVICES) sponsored by REPRESENTATIVE BRIAN PORTER. Before his
legislative assistant, ERIC MUSSER, gave his testimony on the bill,
SENATOR TAYLOR indicated the bill would not be leaving the
committee today, but testimony would be taken on the bill in
preparation for passing the bill from committee at the next
meeting.
Number 054
MR. MUSSER explained briefly that HB 315 is to place in statute the
penalties for the unauthorized use, distribution, or sale of
subscription cable services. He said presently Alaska's theft of
services statute, AS 11.46.200, is very broad and unenforceable in
the theft of cable services.
MR. MUSSER explained the bill first, under AS 11.46.200(A)(4) makes
it a Class A misdemeanor to maintain, whether physically or
electronically, an unauthorized device to a TV set. Under (4)(B)
manufacturing, assembling, distribution, or marketing the converter
boxes becomes a Class C felony.
Number 097
SENATOR LITTLE asked where the illegal devices were available. MR.
MUSSER explained GARY HAINES from Prime Cable has some samples and
noted the manner in which they were acquired. He showed an example
of a cable box at the time of subscription, the illegal box, and
explained the prohibitions.
SENATOR LITTLE questioned the degree of crime in the scenario just
described by MR. MUSSER.
MR. MUSSER said it would be theft in the third degree as described
in page 2, line 16.
SENATOR LITTLE wanted to know how to catch these thieves.
MR. MUSSER deferred to GARY HAINES, Vice-President of Prime Cable,
who explained some are detected from anonymous calls, and some are
detected through FBI sting operations, since it is against federal
law.
Number 162
MR. HAINES showed a list from a sting from Global Network which
showed a large number of persons in Anchorage who had purchased the
illegal box, and he explained how a great deal of money is made
from the boxes. He explained it wasn't just an Anchorage problem,
but was spreading throughout the state.
MR. HAINES outlined how a person could steal one of his legal boxes
and purchase a test chip out of California for $19.00, which makes
an even higher profit.
Number 191
REPRESENTATIVE PORTER joined the meeting at this time and expressed
his appreciation to the committee for hearing the bill, and he
outlined the problems with the statutes keeping up with the
increase in cable theft. He explained how difficult it was to
determine how many hours someone has used a pirate box, and he
reviewed the penalties for theft.
SENATOR HALFORD indicated he had a problem with the level of
penalty, and found it difficult to make it a Class C penalty,
because of other Class C penalty categories. He suggested changing
it to a Class A misdemeanor. SENATOR TAYLOR suggested the bill
could be changed under the title.
SENATOR LITTLE discussed her understanding of two separate
offenses, one for possessing the pirate box, and one for selling
it.
Number 240
REPRESENTATIVE PORTER approved the idea of changing the penalties.
SENATOR HALFORD conceptually moved to adjust the penalties so that
Section 1 would be a Class A misdemeanor and Section 2 a Class B
misdemeanor. He also moved to have the bill written consistent as
a Judiciary committee substitute. Without objections, so ordered.
SENATOR TAYLOR requested his staff to prepare the committee
substitute to be shown to REPRESENTATIVE PORTER before bringing it
to committee on Monday.
SENATOR TAYLOR introduced a work draft for SENATE CS FOR CS FOR
HOUSE BILL NO. 302(JUD), workers compensation for recreational
activities, and warned the committee members it was a controversial
subject since it dealt with the "bunkhouse rule." He explained
there had been worker's compensation wars around the legislature
for years.
SENATOR JACKO asked what the bunkhouse rule was, and SENATOR TAYLOR
suggested it could be answered by someone from REPRESENTATIVE
NAVARRE'S staff or PAT SMUTZ, legislative director for the AFL-CIO.
Number 260
MR. SMUTZ explained the bunkhouse rule was a worker at a remote
work site, under the control of the employer, was covered by
workers compensation 24 hours a day.
SENATOR LITTLE asked what changes the bill would make.
MR. SMUTZ said the committee substitute deletes the House versions
on page 2, lines 12 through 15, and would make a major modification
of the worker's compact. If you were engaged in a recreational
activity at a remote site, you wouldn't be covered by worker's
compensation.
MR. SMUTZ claimed it would be a backward step in the worker's
compensation, and he discussed the traditional means for
negotiating compromises between labor and management, as well as
the Alaska Labor/Management Worker's Compensation Ad Hoc Committee.
At that time, he said labor gave up major concessions in quite a
bit of insurance premium reductions, and it worked out as a major
compromise, a system that seems to work. He claimed at the end of
session, there is always a special interest that wants to modify
the law. He described a number of remote camps, and he didn't see
any one from those camps supporting the change. He was curious as
to the specific interest, but he was not aware of any problems.
Number 313
SENATOR TAYLOR asked MR. SMUTZ to comment on the proposed committee
substitute which addresses the officials who are on a contractual
basis at a sports event involving softball, and he described a
group of legislators, who would be playing softball in the
afternoon. He thought this was the main thrust of the legislation
from REPRESENTATIVE NAVARRE'S position.
MR. SMUTZ said it was called the softball rule, and he described an
example of a large company that went Outside and recruited a ringer
to play on their company team. The ringer, a woman, was hurt and
she was denied worker's compensation. It went to court where it
was decided it was a condition of hire and was covered under
workers compensation. He thought there was a perception problem as
to whether these people are covered by workers compensation.
MR. SMUTZ said he was not too familiar with the umpire part of the
legislation, but thought it involved official who contract as
individuals to be umpires and referees, although they wanted to be
considered as individual contractors - not necessarily employees.
MR. SMUTZ, in answer to a question from SENATOR TAYLOR, said the
AFL-CIO was neutral on the bill.
SENATOR TAYLOR explained in the example given by MR. SMUTZ, the
ringer would not be covered if the committee substitute passed, and
he explained in page 2, line 8 the language that would exclude
activities of a personal nature away from employer provided
facilities. Employer sanctioned activities do not include
recreational activities unless the activity occurs at a remote job
site or on the employment premises.
SENATOR TAYLOR was interrupted by JACK HEESCH, President of the
Alaska Softball Association, who explained the court interpreted
the employer provided rule to include that if you pay the fee to
rent the field, which you do when you pay a fee to enter a league,
some of that money is transferred to the Municipality Parks and
Rec. for rental of the fields. The court interpreted that as being
an employer provided facility as the result of the rental of the
field through the entry of the team into a league.
SENATOR TAYLOR clarified the meaning as even after HB 302 has been
passed, that MR. HEESCH believed if the employer paid for the
rental of field that somehow becomes employment premises.
Number 369
MR. HEESCH said they were eliminating "employer provided" and
specifying "employer premises." SENATOR TAYLOR used a hypothetical
example of Fred Meyers having a softball team, and even if Fred
Meyers buys them their uniforms, pays costs and fee rental of a
field, that is not employment premises? MR. HEESCH said that was
correct. SENATOR TAYLOR said those players would not be covered by
worker's compensation as he interprets the legislation.
SENATOR TAYLOR explained somehow he had modified the remote camp
rule by deleting it, and MR. SMUTZ agreed. There was a argument as
to whether workers playing ball at a remote camp were covered or
those playing ball in a Fred Meyers' parking lot. SENATOR TAYLOR
said the committee substitute would eliminate coverage for those in
the urban setting, but those in a remote setting would still be
covered or any activity - even mountain climbing - over which the
employer has no control. MR. SMUTZ was not sure what the employers
in logging camps could do, but he did know athletic equipment was
provided. He explained the remote circumstances where recreation
is part of the camp life and the necessity of workers compensation
24 hours a day.
Number 413
SENATOR LITTLE clarified that activities provided at a remote site
are part of the benefit package that comes with the job and is a
negotiated part of the contract between the employer and employee.
MR. SMUTZ, in speaking for union sites, described the recreation
activities, and he used the North Slope as an example of using the
activities as an enticement to stay.
SENATOR TAYLOR wanted to know where the line is drawn between the
employer who provides all kinds of equipment and events here in
town, and are not covered, but in logging communities their
employers are basically under a cloud now because they have to be
covered. He clarified most of his communities are remote sites.
This brought a question from SENATOR LITTLE asking how there can be
a remote site with employees involved in recreational activities
fifty miles from camp.
SENATOR TAYLOR said Prince of Wales Island has 2000 miles of road
and the deepest caves ever discovered. He explained it was going
to become a national park, but presently loggers on the Island can
spend off duty time spelunking. If an employee is injured, the
employer is responsible, but SENATOR TAYLOR doesn't think that is
appropriate.
MR. SMUTZ described the difference on the employees on the North
Slope who have to observe a certain amount of control in their
activities. He suggested limitations on where the loggers may
travel might be a negotiable item in a contract.
MR. SMUTZ explained restrictions were difficult, but he didn't
think the committee substitute for HB 302 properly addresses the
problem, and would only create more problems. SENATOR TAYLOR said
the original bill certainly draws a line on every employee living
at this time, and he referred to page 2.
MR. SMUTZ said it would probably be determined in future court
cases, but MR. HEESCH indicated continued support for the bill.
Number 463
SENATOR TAYLOR explained how, in refereeing three games on Sandy
Beach, the referee might be covered on one but not the other two.
MR. HEESCH explained that most of the officials worked for
organizations in such groups as the Juneau Sport's Association,
under contract as independent contractors. He quoted the IRS as
being in agreement, as well as the Department of Labor, but he also
elaborated on the vagaries of insurance rules that has made it
expensive.
Number 495
SENATOR LITTLE said she had a clear understanding of the original
bill, but was not willing to support the committee substitute.
SENATOR TAYLOR called for a vote on SENATOR HALFORD'S move to adopt
the new committee substitute for House Bill No. 302(JUD). The role
was taken with the following results: SENATORS TAYLOR, HALFORD, and
JACKO voted "yea," and SENATOR LITTLE voted "nay." SENATOR TAYLOR
stated the motion carried.
It was decided the bill would go next to Rules.
SENATOR HALFORD moved to pass SENATE CS FOR CS FOR HOUSE BILL NO.
302(JUD) from committee. SENATOR LITTLE objected, and explained
the committee substitute addressed a situation that could be more
properly addressed in individual cases, where there are problems
through agreements between employers and employee at remote work
sites. She thought it would make a sweeping change in all remote
sites, where there aren't problems, and seems highly inappropriate.
She urged the bill not be passed from committee, since she didn't
think it would benefit the State as a whole.
SENATOR TAYLOR called for a vote on SENATOR HALFORD'S move to pass
SENATE CS FOR CS FOR HOUSE BILL NO. 302(JUD). The role was taken
with the following results: SENATORS TAYLOR, HALFORD, and JACKO
voted "yea," and SENATOR LITTLE voted "nay." SENATOR TAYLOR stated
the motion carried.
SENATOR TAYLOR introduced HB 333 (MINING LOCATIONS ON STATE
SELECTED LAND) sponsored by REPRESENTATIVE PETE KOTT, and invited
JACK PHELPS, Aide to REPRESENTATIVE KOTT, to testify.
MR. PHELPS explained there was currently a provision in state law
that allows mining locations on state land and state selected land,
but there is no Alaska statute defining "state selected land." He
further explained the problems encountered by the miners who have
federal claims on land that has been selected by the state, and he
said the bill would provide a definition that corrects the problem.
MR. PHELPS said it would allow a certain mechanism for a person
with an unpatented federal claim to convert that claim to a state
claim once the land is conveyed to the state. He referred the
definition to page 1, lines 7 through 10.
SENATOR TAYLOR asked if there were questions about the definition,
and SENATOR LITTLE asked about a person having an unpatented
federal claim. SENATOR TAYLOR explained the process of getting
from staking to patent - lengthy and expensive.
MR. PHELPS claimed there were many unpatented federal claims in the
state, and he said many are on lands that are under state selection
of about 21 million acres. He explained the bill would allow the
miner, whose land was claimed by the state, to convert their claims
to state claims. Any royalties from the mining would flow to the
state rather than the state government.
Number 553
SENATOR LITTLE asked if it gave retrospective effect to amendment,
and MR. PHELPS referred her to Section 3 for clarity as to
retroactively. He also explained about the retroactive date of
April 14, 1966.
SENATOR LITTLE asked if he knew of anyone opposed to the bill, and
MR. PHELPS said he was not aware of anyone, but he said there may
be some individual miners who may not realize the benefit of
overstaking. He reviewed the wide support from miners to industry
for the bill.
There was a brief discussion of restaking a mining claim.
SENATOR HALFORD moved to pass CS FOR HOUSE BILL NO. 333(RES)(MINING
LOCATIONS ON STATE SELECTED LAND) from committee with individual
recommendations. Without objections, so ordered.
SENATOR TAYLOR introduced CS FOR HOUSE BILL NO. 410(STA) and
explained it was an Act relating to real estate appraisers. Since
there was no sponsor present, SENATOR TAYLOR directed his committee
aide, KEVIN SULLIVAN, to review the bill.
Number 590
MR. SULLIVAN explained the bill had been brought to committee
advocated by the Department of Commerce, and he further explained
the House version basically certifies the appraisers in the State
of Alaska to conform to federal requirements.
MR. SULLIVAN quoted FRED FERRARA from the Appraisers Association in
Anchorage as being opposed to the legislation and would prefer to
keep the two year of practical experience. The federal requirement
as embodied in HB 410 does not require two years of training
experience.
SENATOR LITTLE clarified the license would only require 120 hours
of educational experience. She questioned whether the appraisers
who do not meet the 120 hours of training would not be recognized
as certified appraisers. She wanted to know if the state was
increasing or decreasing the requirements.
MR. SULLIVAN explained in the aggregate the state is actually
decreasing because, as this measure is before us, we are no longer
abiding by the current law ....
TAPE 94-38, SIDE B
Number 001
...... referring to the classroom hours. He said if the bill was
adopted as is, it would just be the classroom hours. SENATOR
TAYLOR said the Board could modify or change that by regulation.
MR. SULLIVAN said the 120 hours being required is greater than is
presently in state law. He reviewed the changes again in current
law and in the new legislation, and said the two year provision
would be deleted.
SENATOR TAYLOR said it was also a sunset bill moving them from 1994
to 1998. SENATOR HALFORD said it gave the regulatory board control
what was formerly in statute, and he explained how the provisions
could be changed by the board.
SENATOR LITTLE asked if the board was under the Department of
Labor, but she was told it is under the Department of Commerce.
SENATOR TAYLOR asked for committee opinion on MR. FERRARA'S concern
about returning the two year experience back into the legislation.
SENATOR HALFORD asked about an audit, but MR. SULLIVAN did not have
any such information in the bill packet.
SENATOR LITTLE said she supported retaining the two year internship
requirement, and she explained the importance of an accurate
appraisal of property. She thought the legislation might require
more stringent rules from the board, but SENATOR TAYLOR quoted
House language that said just the opposite.
MR. SULLIVAN explained the Senate version had retained the two year
internship requirements, but the Department of Commerce has asked
for the House version be moved for obvious reasons.
In answer to a question by SENATOR HALFORD, SENATOR TAYLOR reported
the bill had been introduced on the House side by the Labor and
Commerce Committee by request. The Senate version is SB 361.
SENATOR LITTLE moved a conceptual amendment to make it comparable
to the Senate Labor & Commerce version, which would add in the two
year internship requirement.
SENATOR HALFORD asked to defer action on the bill until the
advocate for the bill was determined. SENATOR TAYLOR also noted
other inconsistencies in the two bills.
Number 056
SENATOR LITTLE withdrew her motion, and the bill was held for
further changes.
Number 068
SENATOR TAYLOR returned SB 279 (DRIVING WHILE INTOXICATED LAWS) to
committee and noted a Judiciary Committee substitute has been
prepared, even though it is a Governor's bill.
SENATOR TAYLOR reviewed some concerns in the committee with the
accident that occurred in Anchorage where a multiple DWI offender
had killed a woman and her daughter. The committee felt the need
for something more thus the increase the penalty for a third time
offender to a Class C felony. He said the legislation also
provided for forfeiture provisions for a vehicle used in the
commitment of a crime.
SENATOR TAYLOR moved to adopt CS FOR SENATE BILL NO. 279(JUD)
(version Ford, 4/22/94). Without objections, so ordered.
SENATOR HALFORD moved to pass CS FOR SENATE BILL NO. 279(JUD)
(DRIVING WHILE INTOXICATED LAWS) from committee with individual
recommendations. Without objections, so ordered.
Number 091
SENATOR TAYLOR introduced SB 372 (ALCOHOLIC BEVERAGES: LOCAL OPTION
& MISCELLANEOUS) sponsored by the Senate Judiciary Committee by
Request and began taking testimony on the bill.
DIANE LAUBER explained the Anheiser Bush Companies, whom she
represents, is proud of their leadership role in promoting
responsible use of its products, and she described their " know
when to say when" educational advertising campaign as being
effective. She said the company has been strong supporters of the
designated driver campaign and were the first major brewer to
produce a non-alcoholic malt beverage. She also described programs
in schools and colleges to discourage underage consumption of all
alcohol and to provide alternatives to the use of intoxicating
beverages.
MS. LAUBER said their company opposes a tax increase on beer, and
she claimed beer in Alaska is already taxed at a rate nearly 50%
higher than the national average. She outlined the increases that
have been made previously, and she warned a 20% increase in taxes
would not translate into an increase of 20% in taxes collected if
federal experience is any indication. She cited studies to show
that higher taxes is not a deterrent to the abuse of alcohol by
alcoholics. She claimed the vast majority of beer is consumed by
responsible users, and she reviewed the health benefits of daily
consumption of moderate amounts of alcoholic beverages. She
explained the company did not object to paying their fair share of
taxes, but the continued increase in federal and state taxes was
more than an adequate tax on the beer drinkers in the state.
RESA JERREL introduced herself as the state director for the
National Federation of Independent Business/Alaska and expressed
the opposition of the business group to SB 372, especially the
section on page 30, section 58 of the work draft of the proposed
committee substitute which would raise the taxes on alcoholic
beverages. She quoted the last survey of her membership that by
92%, they wanted to reduce government spending before increasing
present taxes.
SENATOR JACKO asked if her survey referred to alcohol or taxes in
general, and she said it mentioned taxes in general. MS. JERREL
said she did ask a question: "If the legislature believes it has
to increase taxes, which one do you think is the fairest?" She
said they listed, first sales taxes, second personal income tax,
with alcohol and tobacco tax as third.
Next, SENATOR TAYLOR called on PATRICK SHARROCK, Director of the
Alcoholic Beverage Control Board, to testify.
Number 162
MR. SHARROCK began by thanking the committee for introducing the
bill, and he reviewed elements of the law that have been discussed.
He said the primary issue involved in this legislation is the
rewriting of the local option provisions that allow incorporated
communities and unincorporated villages around the state to
implement one of the five local option provisions to restrict
alcoholic beverages in the communities.
MR. SHARROCK said there were currently 112 cities and villages that
have exercised their local option, with one village, ST. MARYS,
that tried to change their option. He said the residents thought
they were voting on one result, but their vote resulted in another.
MR. SHARROCK read from an article in the Anchorage paper, April 18,
1993 which reported in order for a city to adopt a less strict law,
the city manager explained the city must first repeal their ban
entirely, and hold a second election to select what level of
restriction they wanted. He said this was a difficult procedure
for many of the voters in these villages, many of whom, he said,
can't speak English.
MR. SHARROCK claimed the main ingredient of this legislation
retains the same options that are under current law, but puts them
into three categories in terms of what the city can do, and he
referred to Section 1, page 1, for an explanation of the options.
SENATOR TAYLOR clarified there would be no need for a vote to
repeal an option before voting for a different standard.
MR. SHARROCK thought this legislation was particularly important
for the rural areas which deals with the issue on a day to day
basis. He referred to page 1, Section 1 which would prohibit a
package store from soliciting or receiving orders from an agent in
a local option area, and he explained examples.
MR. SHARROCK discussed with SENATOR TAYLOR a number of complaints
about sending unsolicited alcoholic beverage information, which
keeps the package stores from direct mailing to people.
Number 203
MR. SHARROCK said the next provision relates to HB 504, which lists
the limitation of military personnel going into veteran or other
clubs where the current law says they have to be military uniform.
He said this would be changed in this legislation.
MR. SHARROCK said the legislation would restrict package stores to
shipping only to the purchaser, and he explained examples of
abuses.
SENATOR JACKO asked how this was a problem, and MR. SHARROCK said
the problem is the package store, which under current regulations
must have full identification of the person to whom the alcohol
will be sent. A file must be maintained showing what has been
submitted from the purchaser in the form of identification.
SENATOR TAYLOR and MR. SHARROCK discussed various scenarios where
this would be illegal.
MR. SHARROCK noted another board complaint is sending "high octane"
alcohol to the Bush, and he said this legislation would prohibit
the shipment of 150 proof rum and everclear, which he said has no
business in the Bush.
MR. SHARROCK explained in Sections 7 and 8, the director would be
required to give renewal notice to licensees whose licenses are
expiring, requires the licensee to file a renewal application by
January 1, and increases the penalty for late applications to $500.
MR. SHARROCK complained the board has never been able to provide
consistent and equal enforcement around the state for persons who
don't file their applications in a timely manner.
MR. SHARROCK said Section 8 addresses a problem which repeals
provisions regarding denial of a new license in a municipality that
has prohibited sale except by a municipal owned liquor store. It
prohibits issuance of a new license or permit in certain cities or
in an established village when certain local options are approved,
and he used the example of working with a restaurant in Government
Hill in Anchorage for specific approval of a time when beer and
wine could be sold after school children had gone home.
MR. SHARROCK mentioned several other "glitches" that would be fixed
by the legislation. Up until biennial renewal, local governments
could protest, statutorily using the words "under law," and he
explained the ramifications of this. It took away municipalities
right to protest for unpaid sales taxes on an annual basis, and
this would be corrected. They discussed triggering sanctions
within the ABC Board.
Number 269
Kenai protests every year.
MR. SHARROCK mentioned another glitch which was to take away
reference to half-year licenses, which has affected about 190 half-
year licenses. Also, another technical matter deals with notices,
which must be given to package stores where there has been a local
option imposed by the community. Under current law the Board is
suppose to notify every package store in the state by registered
mail, and he explained why this has been modified.
Lastly, he explained a modification to the definition of "alcoholic
beverage," because it was brought to MR. SHARROCK'S attention by
legal professionals across the state who had written to Long's Drug
in Anchorage asking that a list of about 30 products not be shipped
to certain people in various communities.
MR. SHARROCK explained that alcohol can be extracted from some of
these products such as hairspray for consumption. He further
explained this change in the definition of alcohol is not to bring
those types of products under Title 4, as alcoholic beverages, but,
if there is possession by those persons or an intent to consume,
search warrants can be granted and the products seized.
SENATOR LITTLE questioned his reference to "those persons." MR.
SHARROCK said he was referring to residents of a community. She
asked if he meant communities where alcohol has been prohibited.
MR. SHARROCK answered it was not necessarily, but explained it
would depend on whether the alcohol was being extracted from the
product. Then it could be seized.
SENATOR LITTLE asked if he was making a delineation between hair-
spray and a refined product that would be manufactured by an
individual. He said she was correct and there was some discussion
among committee members. SENATOR TAYLOR related an incident of
abuse in his community of a well known cold preparation, which
contains alcohol. MR. SHARROCK said this type of abuse of a
product would fall into play in an area that had local option if
the product was intended as an alcoholic beverage.
SENATOR LITTLE asked how it would be known if these products were
ordered for illicit purposes. MR. SHARROCK said he had been told
it was easy to make that determination if there are large
quantities of those products going into communities where it would
seem that large quantities would not be consumed.
SENATOR JACKO expressed some concerns in regards to local options
since he owns a grocery store. He asked what would happened if a
high school student working in the store inadvertently sold one of
these products. MR. SHARROCK clarified the legislation would only
provide for enforcement when there was a problem.
Number 341
SENATOR LITTLE expressed a problem with the provision that alcohol
over 100 proof not be allowed to be shipped to dry communities, and
thought it would be up to the specific community rather than having
the state impose the restriction. SENATOR JACKO agreed with
SENATOR LITTLE'S concern, and asked about his statement that it had
no business in the Bush.
MR. SHARROCK quoted remarks about the dangers of everclear since it
is 90% alcohol and quick consumption is catastrophic. SENATOR
TAYLOR asked if some communities specifically asked not to have
everclear in their community, and MR. SHARROCK said he was correct.
SENATOR TAYLOR understood some communities restrict package stores
from shipping to people, but SENATOR LITTLE thought there should be
a better way. She thought communities should be given the ability
to prohibit entirely over 100 proof alcohol if they choose to do
so. MR. SHARROCK clarified it was for 150 proof, and only applies
to those communities that have adopted a local option election.
SENATOR TAYLOR clarified a package store could ship those products
to a person in another community where it was not prohibited. MR.
SHARROCK said this was covered on page 3, Section 6, and he
reviewed the provisions in the subsections. SENATOR TAYLOR wanted
it be sure it was clear the restrictions only applied to those
areas where a vote has occurred.
SENATOR LITTLE asked MR. SHARROCK if he had a sense of the
communities that have restrictions about whether or not this is
acceptable to the community, and MR. SHARROCK said he had not.
SENATOR LITTLE referred to Section 6(H)(1) and asked it was current
law. MR. SHARROCK said it was. SENATOR TAYLOR clarified the new
law had to do with the an alcoholic beverage containing more than
75% by volume.
Number 402
SENATOR JACKO ask for clarification on MR. SHARROCK'S remark that
everclear had "no business in the Bush." He wondered if he implied
it had more business in urban Alaska than it does in rural Alaska.
MR. SHARROCK said he only tried to relate the kinds of stories the
ABC Board has heard in terms of abuse of alcohol in rural areas,
and he admitted alcohol abuse occurred other places as well. He
reiterated his remarks about local option in relation to high proof
product.
SENATOR LITTLE repeated her feeling it should be an option of the
local government, and there was a discussion of outlawing everclear
in the whole state. SENATOR TAYLOR explained only two states in
the United States allowed the sale of everclear - Georgia and
Alaska. SENATOR LITTLE continued to feel that it was an imposition
of a restriction on one segment of our state, but she also thought
everclear was a terrible substance.
Number 447
SENATOR TAYLOR pointed to page 3 lines 14 and 14 of the committee
substitute and explained it pertained to those areas that have
restricted the sale of alcoholic beverages. Both SENATOR HALFORD
and SENATOR LITTLE were concerned about equal protection, and
SENATOR TAYLOR was not sure, but said it provides for some
restriction to comply with the local option of the areas.
SENATOR HALFORD suggested getting rid of everclear in the state,
and followed his remark with a proposed amendment to do so. There
was some discussion about making it a conceptual amendment and
whether to ban possession or sale.
SENATOR TAYLOR asked for the adoption of CS FOR SENATE BILL NO.
372(JUD). Without objections, so ordered.
SENATOR HALFORD proposed an amendment to ban from sale in Alaska
any alcoholic beverage above 76% by volume. Without objections, so
ordered.
SENATOR LITTLE proposed an amendment to delete lines 14 and 15 on
page 3, including or and placing a . after month. Without
objections, so ordered.
Number 578
SENATOR LITTLE asked if the taxes included in the legislation were
part of the budget or considered as revenues. SENATOR TAYLOR said
no they would have been included in the budget package yesterday.
In reference to the taxes proposed in the legislation, SENATOR
LITTLE felt she could support them if there was a provision in the
bill that the revenues gained by the new tax would be used for some
purpose such as alcohol prevention programs, but she has a concern
there is no specific purpose for the new funds. SENATOR TAYLOR
described the use of the funds for treatment programs, and there
was a discussion of including an intent the money go to alcohol
treatment programs. SENATOR HALFORD explained there would be no
dedication unless there was a constitutional amendment.
TAPE 94-39, SIDE A
Number 001
SENATOR HALFORD moved to pass CS FOR SENATE BILL NO. 372(JUD)
(ALCOHOLIC BEVERAGES: LOCAL OPTION & MISC.) from committee with
individual recommendations. Without objections, so ordered.
SENATOR TAYLOR introduced SB 367 (HEALTH CARE REFORM COMMITTEES)
and suggested the committee members look at the bill carefully,
since he said it has within it the "bad baby statute," which
provides for a statute of limitations for the pediatricians of the
state that have been complaining for years about a twenty year plus
statute of limitations. This reduces it to eight and fixes it. He
said it had two committees within it and has to go to the Finance
Committee to get to the floor.
SENATOR LITTLE said she didn't like it, but SENATOR TAYLOR said
they stripped most of the bad stuff out of it. He said there were
just two advisory committees left.
SENATOR HALFORD posed a hypothetical of a child being born
following the mother taking a drug that was questionable like DES,
and 20 years later finding something is wrong. He asked if the
bill prevented recourse by the child.
SENATOR TAYLOR said it didn't, because in those instances that's a
product the mother took, and he explained this is a statute having
to do with the child itself - whether the child can sue the doctor
who delivered. He said the bill would also cover pediatricians and
midwives.
Number 048
SENATOR LITTLE asked for clarification that the child had a ten
year limitation, and SENATOR TAYLOR said he had not changed that
one. He said SENATOR RIEGER had fixed that one at eight years.
SENATOR LITTLE posed a hypothetical of a nine year old child, and
asked if the parents could bring a suit against the physician for
anything occurred during birth. She asked if that was correct?
SENATOR TAYLOR said the committee looked at the number of suits
that had been brought by anyone over eight years old. He said a
"bad baby" is usually noticed before eight years have passed.
SENATOR HALFORD continued to ask about the things that don't come
out for 20 years, a provision as to when the effect is discovered,
and the use of a prescription drug. SENATOR TAYLOR explained the
provisions in the bill, when the discovery occurs, and the order of
the normal statutes of limitations.
SENATOR HALFORD used the example of a mother given DES, and the
child growing to young womanhood finds she has substantial
reproductive problems and will never be able to have children. He
asked if she could sue.
Number 093
SENATOR TAYLOR said it would depend whether or not there was any
fraud or collusion by the parent, guardian, or health provider.
SENATOR HALFORD declared it was simple negligence by a doctor who
should have known not to prescribe DES. SENATOR TAYLOR said there
would have to be intentional concealment, fraud, or conclusion.
There was a discussion of intentional or gross negligence for
anything not compensated, and SENATOR HALFORD had harsh comments
about the liability system that discriminates against good
samaritans who are getting no compensation. SENATOR TAYLOR thought
there should be some limitation short of 21 years, and he reviewed
the limitations of the legislation. SENATOR HALFORD concluded the
best tort reform was eliminating lawyers, but SENATOR TAYLOR said
it wouldn't change the injury.
Number 134
SENATOR HALFORD moved to adopt CS FOR SENATE BILL NO. 367(JUD).
Without objections, so ordered.
SENATOR HALFORD explained the bill gives a committee member a
compensation of $400 per day plus expenses for serving on the
committee on page 3, line 25 and page 6, line 17. SENATOR HALFORD
said it was excessive and increases the fiscal note. He moved to
reduce the $400 to $200 in both cases. SENATOR TAYLOR thought this
was overly generous, and SENATOR JACKO moved the compensation be
reduced to $100. The motion was moved from committee without
objections, so ordered.
SENATOR TAYLOR called for a vote on SENATOR HALFORD'S move to pass
CS FOR SENATE BILL NO. 367(JUD) (HEALTH CARE REFORM COMMITTEES)
from committee. The roll was taken with the following results:
SENATORS TAYLOR, HALFORD, and JACKO voted "yea," and SENATOR LITTLE
voted "nay." SENATOR TAYLOR stated the bill was passed from
committee.
SENATOR TAYLOR returned SB 161 INTEREST RATES: (JUDGMENTS-TAXES-
ROYALTIES) by Request of the Governor to committee, and he reviewed
the testimony from the State for a rate. He had requested his
aide, KEVIN SULLIVAN, to prepare a committee substitute for a flat
rate that is adjusted annually from a formula set so everyone each
year knows what the interest will be, and not be facing 10.5% as is
today on judgements. He asked for the current interest rate, and
MR. SULLIVAN explained the formula he used amounts to 8% today.
SENATOR JACKO moved to pass CS FOR SENATE BILL NO. 161(JUD)
(INTEREST RATES: JUDGMENTS/TAXES/ROYALTIES) from committee with
individual recommendations. Without objections, so ordered.
SENATOR TAYLOR returned his own bill, SCR 18 (PURCHASE FEDERAL LAND
FROM THE UNITED STATES) to committee. He explained this resolution
would purchase federal land by the State of Alaska for $10 billion.
SENATOR JACKO moved to pass SCR 18 (PURCHASE FEDERAL LAND FROM THE
UNITED STATES) from committee with individual recommendations.
Without objections, so ordered.
SENATOR TAYLOR introduced SENATE CS FOR CS FOR HOUSE BILL NO.
79(HES) (DAMAGE TO PROPERTY BY MINORS) to committee. Committee
Aide, KEVIN SULLIVAN explained it was an act relating to recovery
from a parent or legal guardian of wilful or malicious destruction
of property by a minor. SENATOR TAYLOR commented this was a bill
omn which SENATOR DONLEY had expressed concern, and MR. SULLIVAN
described how his concerns were met in the bill.
SENATOR TAYLOR decided to hold the bill until SENATOR DONLEY
returned.
There being no further business to come before the committee, the
meeting was adjourned by SENATOR TAYLOR.
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