Legislature(2017 - 2018)BELTZ 105 (TSBldg)

04/11/2018 01:30 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 195 PF DIVIDEND FUND TRANSFERS;CRIMES;VICTIMS TELECONFERENCED
Heard & Held
+= SB 47 MOTOR VEHICLE DEALER FRANCHISES TELECONFERENCED
<Bill Hearing Canceled>
+= SJR 14 CONST. AM: PARENTAL CONSENT TO ABORTION TELECONFERENCED
<Bill Hearing Canceled>
+= HB 208 TRUSTS; COMM PROP TRUSTS; POWERS OF APPT TELECONFERENCED
<Bill Hearing Canceled>
+ SB 76 ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG TELECONFERENCED
Heard & Held
+= HJR 21 FEDS RESPECT STATE REG OF MARIJUANA TELECONFERENCED
Scheduled but Not Heard
+= HB 307 MILITARY JUSTICE & MILITIA CIVIL RELIEF TELECONFERENCED
Heard & Held
+= HB 44 LEGISLATIVE ETHICS: VOTING & CONFLICTS TELECONFERENCED
Scheduled but Not Heard
+ HB 20 SOLEMNIZE MARRIAGE: ELECTED OFFICIALS TELECONFERENCED
Heard & Held
Uniform Rule 23 Waived
+ SB 134 TERMINATION OF PARENTAL RTS;GUARDIANS TELECONFERENCED
Scheduled but Not Heard
Uniform Rule 23 Waived
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         April 11, 2018                                                                                         
                           1:37 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator John Coghill, Chair                                                                                                     
Senator Mia Costello                                                                                                            
Senator Bill Wielechowski                                                                                                       
Senator Mike Shower                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Pete Kelly                                                                                                              
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 76                                                                                       
"An  Act  relating  to  alcoholic   beverages;  relating  to  the                                                               
regulation of  manufacturers, wholesalers, retailers,  and common                                                               
carriers   of   alcoholic   beverages;  relating   to   licenses,                                                               
endorsements,   and   permits  involving   alcoholic   beverages;                                                               
relating  to the  Alcoholic Beverage  Control Board;  relating to                                                               
offenses involving alcoholic beverages;  amending Rule 17, Alaska                                                               
Rules of Minor Offense Procedure;  and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 307(JUD)                                                                                
"An Act  requiring a  person who  commits certain  offenses under                                                               
the code  of military justice  to register  as a sex  offender or                                                               
child  kidnapper; relating  to  the  Servicemembers Civil  Relief                                                               
Act; relating  to contracts made  by servicemembers;  relating to                                                               
nonjudicial  punishment  of  members of  the  organized  militia;                                                               
relating to  offenses subject to court-  martial proceedings; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 20(JUD)                                                                                 
"An  Act  relating  to marriage  solemnization;  and  authorizing                                                               
elected public officials in the state to solemnize marriages."                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 195                                                                                                             
"An  Act  relating to  restitution;  relating  to the  office  of                                                               
victims' rights;  relating to transfers  from the  dividend fund;                                                               
creating   the   restorative   justice   account;   relating   to                                                               
appropriations from the restorative  justice account for services                                                               
for  and  payments  to  crime victims,  operating  costs  of  the                                                               
Violent   Crimes  Compensation   Board,  operation   of  domestic                                                               
violence and sexual assault programs,  mental health services and                                                               
substance  abuse  treatment   for  offenders,  and  incarceration                                                               
costs;  relating to  contributions  from  dividends; relating  to                                                               
delinquent minors; and providing for an effective date."                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 47                                                                                                              
"An  Act  relating to  motor  vehicle  franchises, motor  vehicle                                                               
transactions,    motor    vehicle    dealers,    motor    vehicle                                                               
manufacturers, and motor vehicle distributors."                                                                                 
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
SENATE JOINT RESOLUTION NO. 14                                                                                                  
Proposing  an  amendment to  the  Constitution  of the  State  of                                                               
Alaska relating  to notice  and consent  before termination  of a                                                               
minor's pregnancy.                                                                                                              
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
HOUSE BILL NO. 208                                                                                                              
"An  Act  relating  to  trusts and  powers  of  appointment;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
SPONSOR SUBSTITUTE FOR HOUSE JOINT RESOLUTION NO. 21                                                                            
Urging the  federal government  to respect  the authority  of the                                                               
state  to regulate  marijuana use,  production, and  distribution                                                               
and to honor  previous federal guidance on  marijuana policy; and                                                               
urging  the  federal  government  to reconsider  its  listing  of                                                               
marijuana as a schedule I controlled substance.                                                                                 
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
CS FOR SS FOR HOUSE BILL NO. 44(STA)                                                                                            
"An  Act  requiring  a  legislator  to  abstain  from  taking  or                                                               
withholding official  action or exerting official  influence that                                                               
could  benefit or  harm  an immediate  family  member or  certain                                                               
employers; and  requiring a legislator  to request to  be excused                                                               
from  voting in  an  instance  where the  legislator  may have  a                                                               
financial conflict of interest."                                                                                                
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
SENATE BILL NO. 134                                                                                                             
"An  Act  relating to  the  appointment  of guardians  ad  litem;                                                               
relating  to   petitions  and  proceedings  for   termination  of                                                               
parental  rights; and  amending Rules  1 and  6, Alaska  Adoption                                                               
Rules."                                                                                                                         
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  76                                                                                                                  
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                            
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
03/03/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/03/17       (S)       L&C, JUD                                                                                               
05/11/17       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
05/11/17       (S)       L&C, JUD                                                                                               
03/13/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/18       (S)       Heard & Held                                                                                           
03/13/18       (S)       MINUTE(L&C)                                                                                            
03/15/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/15/18       (S)       Heard & Held                                                                                           
03/15/18       (S)       MINUTE(L&C)                                                                                            
03/20/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/20/18       (S)       Heard & Held                                                                                           
03/20/18       (S)       MINUTE(L&C)                                                                                            
03/22/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/22/18       (S)       Heard & Held                                                                                           
03/22/18       (S)       MINUTE(L&C)                                                                                            
04/03/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/18       (S)       Moved CSSSSB 76(L&C) Out of Committee                                                                  
04/03/18       (S)       MINUTE(L&C)                                                                                            
04/06/18       (S)       L&C RPT CS  2DP 1NR 1AM   SAME TITLE                                                                   
04/06/18       (S)       NR: COSTELLO                                                                                           
04/06/18       (S)       DP: MICCICHE, MEYER                                                                                    
04/06/18       (S)       AM: GARDNER                                                                                            
04/11/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 307                                                                                                                  
SHORT TITLE: MILITARY JUSTICE & MILITIA CIVIL RELIEF                                                                            
SPONSOR(s): REPRESENTATIVE(s) TUCK                                                                                              
                                                                                                                                
01/24/18       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (H)       MLV, JUD                                                                                               
01/30/18       (H)       MLV AT 1:30 PM GRUENBERG 120                                                                           
01/30/18       (H)       Heard & Held                                                                                           
01/30/18       (H)       MINUTE(MLV)                                                                                            
02/06/18       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
02/06/18       (H)       Heard & Held                                                                                           
02/06/18       (H)       MINUTE(MLV)                                                                                            
02/13/18       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
02/13/18       (H)       Moved CSHB 307(MLV) Out of Committee                                                                   
02/13/18       (H)       MINUTE(MLV)                                                                                            
02/14/18       (H)       MLV RPT CS(MLV) NT 2DP 1NR 2AM                                                                         
02/14/18       (H)       DP: PARISH, TUCK                                                                                       
02/14/18       (H)       NR: SADDLER                                                                                            
02/14/18       (H)       AM: RAUSCHER, LEDOUX                                                                                   
02/19/18       (H)       JUD AT 1:30 PM GRUENBERG 120                                                                           
02/19/18       (H)       Heard & Held                                                                                           
02/19/18       (H)       MINUTE(JUD)                                                                                            
02/21/18       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
02/21/18       (H)       Moved CSHB 307(JUD) Out of Committee                                                                   
02/21/18       (H)       MINUTE(JUD)                                                                                            
02/23/18       (H)       JUD RPT CS(JUD) NT 6DP 1NR                                                                             
02/23/18       (H)       DP:   KOPP,    KREISS-TOMKINS,   STUTES,                                                               
                         LEDOUX, REINBOLD, CLAMAN                                                                               
02/23/18       (H)       NR: EASTMAN                                                                                            
02/28/18       (H)       TRANSMITTED TO (S)                                                                                     
02/28/18       (H)       VERSION: CSHB 307(JUD)                                                                                 
03/01/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/18       (S)       JUD                                                                                                    
04/02/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/02/18       (S)       Scheduled but Not Heard                                                                                
04/11/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  20                                                                                                                  
SHORT TITLE: SOLEMNIZE MARRIAGE: ELECTED OFFICIALS                                                                              
SPONSOR(s): REPRESENTATIVE(s) CLAMAN                                                                                            
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       STA, JUD                                                                                               
02/16/17       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
02/16/17       (H)       Heard & Held                                                                                           
02/16/17       (H)       MINUTE(STA)                                                                                            
02/18/17       (H)       STA AT 11:00 AM GRUENBERG 120                                                                          
02/18/17       (H)       Moved  CSHB 20(STA) Out of Committee                                                                   
02/18/17       (H)       MINUTE(STA)                                                                                            
02/22/17       (H)       STA RPT CS(STA) 4DP 2DNP                                                                               
02/22/17       (H)       DP: TUCK, KNOPP, JOSEPHSON, KREISS-                                                                    
                         TOMKINS                                                                                                
02/22/17       (H)       DNP: JOHNSON, BIRCH                                                                                    
03/03/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/03/17       (H)       Heard & Held                                                                                           
03/03/17       (H)       MINUTE(JUD)                                                                                            
03/06/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/06/17       (H)       Heard & Held                                                                                           
03/06/17       (H)       MINUTE(JUD)                                                                                            
03/08/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/08/17       (H)       Moved  CSHB 20(JUD) Out of Committee                                                                   
03/08/17       (H)       MINUTE(JUD)                                                                                            
03/15/17       (H)       JUD RPT CS(JUD) 4DP 1NR 2AM                                                                            
03/15/17       (H)       DP:   KOPP,    KREISS-TOMKINS,   LEDOUX,                                                               
                         CLAMAN                                                                                                 
03/15/17       (H)       NR: FANSLER                                                                                            
03/15/17       (H)       AM: EASTMAN, REINBOLD                                                                                  
02/19/18       (H)       TRANSMITTED TO (S)                                                                                     
02/19/18       (H)       VERSION: CSHB 20(JUD)                                                                                  
02/21/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/18       (S)       STA, JUD                                                                                               
04/03/18       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
04/03/18       (S)       Moved CSHB 20(JUD) Out of Committee                                                                    
04/03/18       (S)       MINUTE(STA)                                                                                            
04/04/18       (S)       STA RPT  2DP 2NR 1AM                                                                                   
04/04/18       (S)       DP: MEYER, EGAN                                                                                        
04/04/18       (S)       NR: GIESSEL, COGHILL                                                                                   
04/04/18       (S)       AM: WILSON                                                                                             
04/09/18       (S)       JUD WAIVED PUBLIC HEARING NOTICE,RULE                                                                  
                         23                                                                                                     
04/11/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 195                                                                                                                  
SHORT TITLE: PF DIVIDEND FUND TRANSFERS;CRIMES;VICTIMS                                                                          
SPONSOR(s): SENATOR(s) HUGHES                                                                                                   
                                                                                                                                
02/19/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/18       (S)       JUD, FIN                                                                                               
04/11/18       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 76                                                                                          
                                                                                                                                
ANNA BRAWLEY, Title 4 Project Review Coordinator and                                                                            
Senior Associate                                                                                                                
Agnew Beck Consulting                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Introduced SB 76 on behalf of the sponsor.                                                                
                                                                                                                                
RACHAEL HANKE, Staff                                                                                                            
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Delivered a sectional analysis of SB 75 on                                                                
behalf of the sponsor.                                                                                                          
                                                                                                                                
REPRESENTATIVE CHRIS TUCK                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 307.                                                                                        
                                                                                                                                
KENDRA KLOSTER, Staff                                                                                                           
Representative Chris Tuck                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Delivered the sectional analysis of HB 307                                                                
on behalf of the sponsor.                                                                                                       
                                                                                                                                
BOB DOEHL, Deputy Commissioner                                                                                                  
Department of Military & Veterans Affairs (DMVA)                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions related to HB 307.                                                                     
                                                                                                                                
CAPTAIN BLAKE CIRCLE                                                                                                            
Alaska Army National Guard                                                                                                      
JBER Alaska                                                                                                                     
POSITION STATEMENT: Answered questions related to HB 307.                                                                     
                                                                                                                                
SARA PERMAN, Staff                                                                                                              
Representative Matt Claman                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 20 on behalf of the sponsor.                                                                
                                                                                                                                
BUDDY WHITT, Staff                                                                                                              
Senator Shelley Hughes                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 195 on behalf of the sponsor.                                                               
                                                                                                                                
ERIC CORDERO GIORGANA, Staff                                                                                                    
Representative Chuck Kopp                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:  Described  the  progress  of  HB  216,  the                                                             
companion to SB 195.                                                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:37:02 PM                                                                                                                    
CHAIR  JOHN   COGHILL  called   the  Senate   Judiciary  Standing                                                             
Committee meeting  to order at 1:37  p.m. Present at the  call to                                                               
order  were Senators  Costello, Shower,  Wielechowski, and  Chair                                                               
Coghill.                                                                                                                        
                                                                                                                                
                                                                                                                                
         SB  76-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG                                                                     
                                                                                                                                
1:38:47 PM                                                                                                                    
CHAIR  COGHILL  announced the  consideration  of  SB 76.  [CSSSSB                                                               
76(L&C) was before the committee.]                                                                                              
                                                                                                                                
1:39:02 PM                                                                                                                    
SENATOR  PETER   MICCICHE,  Alaska  State   Legislature,  Juneau,                                                               
Alaska, sponsor  of SB 76,  stated that the  bill is the  Title 4                                                               
rewrite.  SB  76  modernizes the  state's  35-year-old  alcoholic                                                               
beverage statutes  to allow the Alcoholic  Beverage Control Board                                                               
to operate  more efficiently  as it regulates  the industry  in a                                                               
manner that  promotes public safety  and health  while supporting                                                               
the industry's viability. The bill  is the product of a five-year                                                               
collaboration  of  over  100  stakeholders.  This  diverse  group                                                               
includes representatives of the  alcohol industry, public health,                                                               
public safety, local governments, and advocates for youth.                                                                      
                                                                                                                                
Five shared  goals served  as the  foundation for  developing the                                                               
recommendations:                                                                                                                
                                                                                                                                
   1. Promoting a fair business climate while protecting public                                                                 
     safety and health                                                                                                          
   2. Creating rational regulations for all tiers of the state's                                                                
     alcohol industry                                                                                                           
   3. Limiting youth access to alcohol                                                                                          
 4. Promoting responsible alcohol use and reducing the harms of                                                                 
     overconsumption                                                                                                            
    5. Implementing without negative impacts on business and                                                                    
     operators                                                                                                                  
                                                                                                                                
SENATOR  MICCICHE  said SB  76  is  largely a  reorganization  of                                                               
existing statutes. It clearly defines  the rights and obligations                                                               
of licensees,  restructures penalties  for Title 4  offenses, and                                                               
organizes the statutes in a logical manner for all the users.                                                                   
                                                                                                                                
1:41:30 PM                                                                                                                    
ANNA  BRAWLEY,  Title 4  Project  Review  Coordinator and  Senior                                                               
Associate, Agnew Beck Consulting,  Anchorage, Alaska, thanked the                                                               
committee for hearing  SB 76 and invited questions at  the end of                                                               
each  section of  the presentation.  She  said she  would give  a                                                               
brief overview  of the Title  4 review project and  highlight the                                                               
recommendations in SB 76. She  would also clarify the substantive                                                               
portions that are not changing but being reorganized.                                                                           
                                                                                                                                
She said the title has not  been updated since 1980 and piecemeal                                                               
changes have created confusion in  the law. Looking at the entire                                                               
title to see  what is and is  not working and how  the pieces fit                                                               
together  was the  goal of  the project.  The Alcoholic  Beverage                                                               
Control (ABC) Board initiated the  project in 2012 in recognition                                                               
of the issues with the statutes  that needed to be addressed. The                                                               
board and others brought together  over 100 stakeholders and have                                                               
put  in at  least 12,000  hours on  the project  since 2012.  The                                                               
result is SB 76.                                                                                                                
                                                                                                                                
MS. BRAWLEY displayed  slide 4, which is a  sectional overview of                                                               
SB  76 that  helps  show how  the bill  is  organized. There  are                                                               
several chapters  of Title  4 that  deal with  different subjects                                                               
and that's  the way the  bill is organized. For  example, Chapter                                                               
11 is  licensing, Chapter 6  is powers  and duties of  the board.                                                               
The Title 4 Review Stakeholder  Report has a more thorough review                                                               
of   each  recommendation   and  what   was  considered   by  the                                                               
stakeholder group.                                                                                                              
                                                                                                                                
She listed  the following  six categories of  the Title  4 review                                                               
recommendations:                                                                                                                
                                                                                                                                
   1. Alcohol licenses, permits and trade practices                                                                             
    2. Role and functions of the ABC Board and staff of the                                                                     
     Alcohol and Marijuana Control Office                                                                                       
   3. Recommendations relating to underage drinking and youth                                                                   
     access to alcohol                                                                                                          
   4. Regulation of internet sales of alcohol                                                                                   
   5. Technical  or   administrative    law   changes   such   as                                                               
     reorganizing the statutes                                                                                                  
   6. Discussion about local option communities                                                                                 
                                                                                                                                
MS. BRAWLEY  noted that  the stakeholder  group is  interested in                                                               
continuing the discussions with  local option communities but the                                                               
bill doesn't  have many recommendations  about this  because more                                                               
discussion and participation from rural communities is needed.                                                                  
                                                                                                                                
She reviewed the following key concepts in Title 4:                                                                             
                                                                                                                                
   • Licenses and permits:                                                                                                      
     - License: Allows a business to sell, serve, distribute                                                                    
        and/or manufacture alcohol for the term of the license (2                                                               
        years).                                                                                                                 
     - Permit: Allows time-limited alcohol sales or service by a                                                                
        licensee or non-licensed organization.                                                                                  
   • The 3-tier system: The separation of manufacturers,                                                                        
     wholesalers and retailers to prevent monopolies.                                                                           
   • Population limits: This statute regulates the number of                                                                    
     licenses available in each community by type.                                                                              
   • Proposed new concept: Endorsements are license add-ons that                                                                
     allow an expanded physical presence or expanded activities                                                                 
     on a license.                                                                                                              
                                                                                                                                
MS.   BRAWLEY  displayed   slide  7,   the  3-tier   system  that                                                               
illustrates that  alcohol must be manufactured,  distributed, and                                                               
sold  to the  public  by different  businesses.  This system  was                                                               
established  after  prohibition  and   was  designed  to  prevent                                                               
monopolies.  The laws  have changed  over the  years, and  a main                                                               
theme  of the  discussion is  how much  of the  3-tier system  to                                                               
preserve  and  how much  to  change,  given  the changes  in  the                                                               
industry.                                                                                                                       
                                                                                                                                
She advised  that population limits  is another key  concept that                                                               
is addressed in current statute.  Each license type is limited by                                                               
the  number of  permanent residents  in the  community. For  most                                                               
licenses it is one per 3,000  residents and for restaurants it is                                                               
one license per  1,500 residents. A few license  types are exempt                                                               
from population limits,  most of which are  for serving tourists.                                                               
Retail outlets  primarily have raised health  and safety concerns                                                               
regarding  the  population  limits  because  a  large  number  of                                                               
different license types can result  in a high density of licenses                                                               
in a community even though the statute seems very restrictive.                                                                  
                                                                                                                                
MS. BRAWLEY  said the  first recommendation in  SB 76  relates to                                                               
population limits.                                                                                                              
                                                                                                                                
     P-1. Population Limits Apply to Retail Licenses Only                                                                     
                                                                                                                                
       • Apply population limitations on the number of                                                                          
          licenses only to retail-tier licenses (excluding                                                                      
          tourism-focused   licenses   and   Winery   Direct                                                                    
          Shipment License).                                                                                                    
      • Wholesale licenses, manufacturer licenses who do                                                                        
          not directly serve the public, and some licenses                                                                      
          designed to serve tourists would be exempt from                                                                       
          limits.                                                                                                               
                                                                                                                                
     SB 76: Section 43, 04.11.400(a); Section 44,                                                                               
     04.11.400(i)                                                                                                               
                                                                                                                                
1:48:50 PM                                                                                                                    
SENATOR  WIELECHOWSKI  noted  that  slide 8  indicates  that  one                                                               
package store is  allowed for every 3,000  people and restaurants                                                               
are one  for every 1,500  people but the  numbers on slide  9 are                                                               
much lower.  He asked how  that happened and if  those businesses                                                               
are grandfathered or operating illegally.                                                                                       
                                                                                                                                
MS. BRAWLEY said it's not  licenses that are operating illegally.                                                               
One reason that  there are more licenses than  the statute allows                                                               
is that  some were probably  issued before the  population limits                                                               
were  put in  place.  Also, slide  9 shows  the  total number  of                                                               
retail licenses  in those communities,  not just bars  or package                                                               
store.  Depending  on  the  number of  types  of  licenses  being                                                               
operated in the community, the numbers can get very high.                                                                       
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if she  knew the  number of  package                                                               
stores  or  restaurants  per  residents   in  Juneau,  Nome,  and                                                               
Fairbanks  to  get an  apples  to  apples comparison  versus  the                                                               
statute.                                                                                                                        
                                                                                                                                
MS.  BRAWLEY said  she would  get  the numbers  from the  Alcohol                                                               
Marijuana  Control  Office (AMCO).  They  publish  the number  of                                                               
licenses operating in each community.                                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI  asked  how  the rewrite  will  change  the                                                               
overall density of licenses based on population.                                                                                
                                                                                                                                
MS. BRAWLEY  replied the rewrite  will not change  the underlying                                                               
population limit  formulas. It keeps  any retail license  that is                                                               
currently under population limits at  the same level. Part of the                                                               
rewrite is  a recommendation to  not create new license  types or                                                               
at least  to consider  the implications  of creating  new license                                                               
types.                                                                                                                          
                                                                                                                                
1:51:02 PM                                                                                                                    
MS. BRAWLEY  directed attention  to slide  11 and  explained that                                                               
another primary  recommendation of SB  76 is to  increase license                                                               
fees. Most license  fees have not been increased  since the 1980s                                                               
or when the license type was created in statute.                                                                                
                                                                                                                                
         F-1 Adjust License Fees to Reflect Current ABC                                                                       
     Budgetary Needs.                                                                                                         
                                                                                                                                
        • Update license fees according to privileges and                                                                       
          administrative costs of each, and collect                                                                             
          sufficient revenue to cover the ABC Board's                                                                           
          required activities:                                                                                                  
            Administration of licenses & permits                                                                                
            Education about Title 4 and related regulations                                                                     
            Enforcement of Title 4 and related regulations                                                                      
        • ABC Board required to review license fees at                                                                          
          least every 10 years.                                                                                                 
        • (see also RB-3: Revise ABC Board Budget to                                                                            
          Adequately Fund Necessary Activities).                                                                                
      • See Appendix, Table 2 on page 66 of the report.                                                                         
                                                                                                                                
      SB 76: Section 5, 04.06.090; License fees throughout                                                                      
     Section 9                                                                                                                  
                                                                                                                                
CHAIR COGHILL asked if this will  help relieve some of the stress                                                               
the  board   is  under  regarding  licensing,   enforcement,  and                                                               
permits.                                                                                                                        
                                                                                                                                
MS.  BRAWLEY  deferred  the  question  to  Erika  McConnell,  the                                                               
director of AMCO.                                                                                                               
                                                                                                                                
                                                                                                                                
1:53:33 PM                                                                                                                    
MS.  BRAWLEY directed  attention to  the recommendation  in slide                                                               
12.  Under current  statute, municipal  governments receive  half                                                               
the  license fee  revenue  collected  by the  ABC  Board for  the                                                               
purpose  of enforcing  Title 4.  SB 76  strengthens the  existing                                                               
requirement that municipalities report  how those funds are being                                                               
used:                                                                                                                           
                                                                                                                                
     RB-1. Strengthen Reporting Requirements for Municipal                                                                    
     Enforcement.                                                                                                             
                                                                                                                                
        • Include in statutory requirements (AS 04.11.610) that                                                                 
          municipalities  submit  quarterly  reports on  Title  4                                                               
          enforcement and education activities  to the ABC Board:                                                               
          violations,     educational    presentations,     other                                                               
          activities related to alcohol control.                                                                                
        • Municipalities with local law enforcement receive a                                                                   
          matching allocation ("refund") of license fees                                                                        
          collected within their jurisdiction. Funds intended to                                                                
          be used for Title 4 enforcement.                                                                                      
                                                                                                                                
Slide  13, Proposed  in SB  76: Accountability  for License  Fees                                                               
Allocated to  Local Governments,  illustrates the  current system                                                               
and  notes that  the  report would  be required  as  part of  the                                                               
revenue allocation.                                                                                                             
                                                                                                                                
Slide 14 illustrates the reorganization of existing statutes.                                                                   
                                                                                                                                
     Proposed Changes to licenses, endorsements and permits                                                                   
                                                                                                                                
     SB 76, Section 9: proposed new Chapter 9 in Title 4                                                                        
                                                                                                                                
          04.09.010: Types of Licenses                                                                                        
          04.09.020 - .040: Manufacturing Tier Licenses                                                                         
          04.09.100 - .110: Wholesale Tier Licenses                                                                             
          04.09.200  .360: Retail Tier Licenses                                                                                 
          04.09.400: Definition of Endorsements                                                                               
          04.09.410 - .520: Types of Endorsements                                                                               
          04.09.600: Definition of Permits                                                                                    
          04.09.610 - .690: Types of Permits                                                                                    
                                                                                                                                
MS. BRAWLEY displayed slide 15,  License Types by Tier. She noted                                                               
that  more information  about  each tier  is  in the  stakeholder                                                               
report  and that  most  of  the license  types  are not  changing                                                               
substantively.                                                                                                                  
                                                                                                                                
        • Manufacturing Tier                                                                                                    
            Brewery, Winery, Distillery                                                                                         
        • Wholesale Tier                                                                                                        
            General Wholesale, Beer & Wine Wholesale                                                                            
        • Retail Tier                                                                                                           
              Subject   to   population   limits:   Beverage                                                                    
          Dispensary,  Restaurant  or  Eating  Place,  Club,                                                                    
          Package  Store,   Pub,  Theater,   Common  Carrier                                                                    
          Dispensary, Sporting  Event, Golf  Course, Brewery                                                                    
          Retail, Winery Retail, Distillery Retail                                                                              
              Exempt   from   population   limits:   Outdoor                                                                    
          Recreation  Lodge,  Destination  Resort,  Beverage                                                                    
          Dispensary Tourism, Seasonal  Restaurant or Eating                                                                    
         Place Tourism, Winery Direct Shipment License                                                                          
                                                                                                                                
     [SB 76: Section 9, defined in 04.09.020           040;                                                                     
     04.09.100  110; 04.09.200  360.]                                                                                           
                                                                                                                                
1:55:58 PM                                                                                                                    
SENATOR  SHOWER asked  how the  population limits  and exemptions                                                               
would apply to a summertime tourist town like Talkeetna.                                                                        
                                                                                                                                
MS. BRAWLEY  said Talkeetna's situation  would not be  changed in                                                               
the  sense   that  certain  license  types   are  issued  without                                                               
consideration   of   population   limits.  Also,   the   existing                                                               
population  limits set  within a  borough or  community within  a                                                               
borough are not changed by SB 76.                                                                                               
                                                                                                                                
SENATOR SHOWER  asked for confirmation that  Talkeetna and Denali                                                               
with the  Princess lodges are  in the Unincorporated  Borough and                                                               
would not change.                                                                                                               
                                                                                                                                
MS. BRAWLEY said that's correct.                                                                                                
                                                                                                                                
MS.  BRAWLEY  displayed  slide  16,  M-2&3.  Manufacturer  Retail                                                               
Operations  +  Sampling. It  lists  the  following proposals  for                                                               
breweries, wineries, and distilleries:                                                                                          
                                                                                                                                
        • Allow small manufacturers, with the threshold defined                                                                 
          in the  bill, to  obtain a retail  license (restaurant,                                                               
          package store,  etc.) Currently, with the  exception of                                                               
          brewpubs,  a manufacturer  cannot get  a package  store                                                               
          license or a restaurant license.                                                                                      
        • Add-on retail licenses specifically for manufacturers                                                                 
          to allow limited onsite consumption and offsite sales.                                                                
            Existing licenses converted                                                                                         
            New retail licenses have 1:9,000 population limit                                                                   
        • A separate endorsement for free samples.                                                                              
                                                                                                                                
      SB 76: Section 9, 04.09.310, .320, .330; 04.09.410;                                                                       
     Section 43, 04.11.400(a).                                                                                                  
                                                                                                                                
She  said the  1:9,000 population  limit recognizes  the possible                                                               
unintended consequence of creating three new license types.                                                                     
                                                                                                                                
CHAIR COGHILL said he's heard  some tension about the differences                                                               
in fees and licenses.                                                                                                           
                                                                                                                                
MS.  BRAWLEY  said   her  understanding  is  that   there  is  an                                                               
application  fee  for  all  licenses and  each  has  a  different                                                               
license fee set in statute.                                                                                                     
                                                                                                                                
CHAIR COGHILL commented  that the population limits  are based on                                                               
an arcane formula that he needs to become familiar with.                                                                        
                                                                                                                                
2:00:08 PM                                                                                                                    
SENATOR SHOWER  asked if the town  of Valdez could have  a second                                                               
manufacturer. It currently has one and a population of 4,000.                                                                   
                                                                                                                                
MS.  BRAWLEY said  the limit  currently is  1:3,000. The  statute                                                               
says 3,000 or part of 3,000 so  a town of 4,000 people could have                                                               
two  brewery licenses.  SB 76  grandfathers any  existing brewery                                                               
and any new applicant would be  subject to the 1:9,000 limit. The                                                               
existing brewery in Valdez could  open a new manufacturing space,                                                               
which is not  subject to population limits. A  tasting room would                                                               
not be available unless the population increases.                                                                               
                                                                                                                                
SENATOR SHOWER  asked if that could  be appealed to the  board or                                                               
commissioner.                                                                                                                   
                                                                                                                                
MS. BRAWLEY  deferred the question  to the Alcohol  and Marijuana                                                               
Control Office.                                                                                                                 
                                                                                                                                
MS. BRAWLEY said that slide 17,  Proposed in SB 76: Volume Limits                                                               
for  Free Samples  from  Manufacturers,  demonstrates the  volume                                                               
limits  for free  samples.  Currently the  ounce  limit for  free                                                               
samples is not defined in  statute. The proposed ounce limits are                                                               
generally  specific to  the alcohol  equivalent for  each product                                                               
type.                                                                                                                           
                                                                                                                                
2:02:31 PM                                                                                                                    
MS.  BRAWLEY said  that slide  18,  Proposed in  SB 76:  Multiple                                                               
Retail   License  Options   for  Manufacturers   illustrates  the                                                               
different retail  options for  the manufacturing  licensees. They                                                               
could either get  a specific manufacturer retail  license or they                                                               
could obtain  an existing retail  license. The slide  provides an                                                               
example  for breweries  but the  same would  apply for  all three                                                               
license types.                                                                                                                  
                                                                                                                                
MS. BRAWLEY said slide 19,  Proposed in SB 76: Onsite Consumption                                                               
Limits for  Manufacturers, in Standard  Product Units,  shows the                                                               
proposed  sales  limits  for on-site  and  off-site  consumption.                                                               
These are  by product type  and license  type. The bill  does not                                                               
make  substantive changes  to the  brewery and  distillery retail                                                               
licenses. It does add ounce  equivalents for winery retail, which                                                               
are not currently defined.                                                                                                      
                                                                                                                                
She asked if  thee were any questions on  the highlighted changes                                                               
to licenses.                                                                                                                    
                                                                                                                                
CHAIR COGHILL  said he's  heard some  pushback on  the Distillery                                                               
Retail 3-ounce  equivalent. He asked  if that was  debated during                                                               
the process.                                                                                                                    
                                                                                                                                
MS. BRAWLEY  said there was  some debate  and the group  opted to                                                               
maintain the limits in current statute.                                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI  asked  if  the bill  fixes  the  issue  of                                                               
distilleries being able to serve mixed drinks.                                                                                  
                                                                                                                                
MS. BRAWLEY said  no; the issue came up after  the review process                                                               
was completed.                                                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if  she would  support amending  the                                                               
bill to include a fix for that issue.                                                                                           
                                                                                                                                
MS. BRAWLEY deferred to the sponsor.                                                                                            
                                                                                                                                
CHAIR COGHILL said he received  a negative response when he asked                                                               
the question but the committee should still ask him about that.                                                                 
                                                                                                                                
SENATOR  COSTELLO asked  how the  ounce  equivalents allowed  for                                                               
Distillery Retail place relative to other states.                                                                               
                                                                                                                                
MS. BRAWLEY  said her recollection  is that  3 ounces is  high in                                                               
the states that define an ounce  limit. Some states do not define                                                               
a limit other than a small, free sample.                                                                                        
                                                                                                                                
2:06:08 PM                                                                                                                    
MS. BRAWLEY said slide 20, Proposed  in SB 76: Endorsements, is a                                                               
new concept. The  idea is to provide more  options for businesses                                                               
in terms  of the area  they are able  to serve or  the activities                                                               
they  engage in.  They are  an add-on  to existing  licenses that                                                               
could only  be transferred with  a license  and would need  to be                                                               
renewed every two years. This  also provides the legislature more                                                               
options  to  address  new business  concepts  without  having  to                                                               
create a new license type.                                                                                                      
                                                                                                                                
CHAIR  COGHILL  asked  if  the  ABC  Board  would  authorize  the                                                               
endorsements.                                                                                                                   
                                                                                                                                
MS. BRAWLEY said the ABC  Board would review applications for the                                                               
endorsements, but they would not  create endorsements. They would                                                               
be defined in statute.                                                                                                          
                                                                                                                                
She said that slide 21, R-7  Create Endorsements, is a summary of                                                               
endorsements. The  concept was used  to reorganize and  make more                                                               
logical activities that businesses can currently do.                                                                            
                                                                                                                                
        • Create endorsements as add-ons to licenses in Title 4                                                                 
        • Endorsements must be issued with a license, renewed                                                                   
          biannually with the license, and cannot be transferred                                                                
          to a new location                                                                                                     
        • Endorsements are not population limited                                                                               
        • Convert some existing sections or activities into                                                                     
          endorsements; create new endorsements                                                                                 
                                                                                                                                
MS. BRAWLEY said  that slide 22 lists  the proposed endorsements.                                                               
The  package  store  sampling  is   new.  The  sectional  summary                                                               
provides  information about  whether or  not they  are new  or in                                                               
current   law.  For   example,  [R-3]   Package  Store   Sampling                                                               
Endorsement is new.                                                                                                             
                                                                                                                                
Slide  23,  Proposed  in  SB  76:  Package  Store  Sample  Limits                                                               
illustrates the  sample amounts allowed  by product  type. Alaska                                                               
law currently does not allow  package stores to offer consumption                                                               
on premises. This  proposal would allow a package  store to apply                                                               
for  an  endorsement to  provide  small,  free samples  on  their                                                               
premises. The  samples would be  subject to ounce  limits defined                                                               
as:  "Any combination  of  products, not  to  exceed the  alcohol                                                               
equivalent of  any single  product type."   The sample  limits by                                                               
product are: beer or cider - 12  ounces; wine or mead   6 ounces;                                                               
and spirits    1.5 ounces.  The business would decide  whether to                                                               
operate this through a ticket system or menu.                                                                                   
                                                                                                                                
2:09:52 PM                                                                                                                    
MS. BRAWLEY  said that  slide 24,  R-7 Standardize  Permits, does                                                               
not  propose  major  changes for  permits  currently  defined  in                                                               
statute  or   regulation.  A  standard  application   process  is                                                               
proposed for permits:                                                                                                           
                                                                                                                                
        • Define all permit types in statute, not only in                                                                       
          regulation                                                                                                            
        • Fee for all permits is $50 per event day                                                                              
        • Most permits listed are already in statute or                                                                         
          regulation                                                                                                            
        • New permit: Tasting Event Permit, allowing a Package                                                                  
          Store or Manufacturer to host an event on premises, in                                                                
          partnership with a BDL [Beverage Dispensary License]                                                                  
                                                                                                                                
SENATOR SHOWER asked if a town  could apply for a one-day Tasting                                                               
                         th                                                                                                     
Event Permit for a July 4   celebration or if an existing license                                                               
would be required.                                                                                                              
                                                                                                                                
MS.  BRAWLEY  said  it  is  defined  by  permit  type.  Some  are                                                               
available  only to  current license  holders of  a specific  type                                                               
while others  are available to  nonprofit organizations  or other                                                               
entities.                                                                                                                       
                                                                                                                                
MS.  BRAWLEY  said slide  25,  Proposed  Permits, shows  proposed                                                               
permits and whether they are currently in regulation or statute:                                                                
                                                                                                                                
        • R-7F | Beverage Dispensary Caterer's Permit (AS                                                                       
          04.11.230; 3 AAC 304.685)                                                                                             
        • R-7G | Restaurant Caterer's Dining Permit (3 AAC                                                                      
          304.680)                                                                                                              
        • R-7H | Club Caterer's Permit (3 AAC 304.690)                                                                          
        • R-7I | Nonprofit Event Permit (AS 04.11.240)                                                                          
        • R-7J | Art Exhibit Permit (3 AAC 304.697)                                                                             
        • R-7K | Alcoholic Beverage Auction Permit (3 AAC                                                                       
          304.699)                                                                                                              
        • R-7L | Inventory Resale Permit (Retail Stock Sale                                                                     
          License, AS 04.11.200)                                                                                                
      • R-7M | Tasting Event Permit (proposed in SB 76)                                                                         
                                                                                                                                
MS. BRAWLEY  highlighted that the  Tasting Event Permit  allows a                                                               
package store or manufacturer to  host a special tasting event on                                                               
its premises  in partnership with a  beverage dispensary licensee                                                               
to showcase  their products. Six  of these events per  license is                                                               
allowed each year.                                                                                                              
                                                                                                                                
CHAIR  COGHILL commented  that passage  of the  bill will  have a                                                               
huge impact on the existing codes.                                                                                              
                                                                                                                                
MS.  BRAWLEY  agreed  and  added   that  she  would  address  the                                                               
implementation period later in the presentation.                                                                                
                                                                                                                                
She said that is the end of the permit recommendations.                                                                         
                                                                                                                                
2:12:13 PM                                                                                                                    
MS.  BRAWLEY said  slide 27,  Proposed in  SB 76:  Regulate Trade                                                               
Practices,  illustrates   another  recommendation   that  impacts                                                               
licenses.   Federal  laws   governing  trade   practices  protect                                                               
retailers from manufacturers  or wholesalers unfairly influencing                                                               
purchase decisions.  Most states have implemented  parallel state                                                               
laws   because  the   federal  government   lacks  capacity   for                                                               
enforcement. Also, federal law does  not regulate trade practices                                                               
for breweries.  That regulation is  left to the  states. Examples                                                               
of trade practices are:                                                                                                         
                                                                                                                                
   • Tied House  Partial ownership of retail license by a                                                                       
      manufacturer or wholesaler to control what products are                                                                   
      sold or exclude competitors. This does not apply to 100                                                                   
      percent manufacturer-owned licenses.                                                                                      
   • Exclusive Outlet  An agreement between a supplier and                                                                      
      retailer to exclude other retailers or suppliers.                                                                         
   • Commercial Bribery  The supplier pays a bonus or provides                                                                  
      merchandise in exchange for exclusive arrangement or                                                                      
      agreement not to purchase other products.                                                                                 
   • Consignment Sales  A supplier and retailer make deals to                                                                   
      take back unsold products .                                                                                               
                                                                                                                                
     SB 76: section 77, 04.16.017                                                                                               
                                                                                                                                
2:13:46 PM                                                                                                                    
MS. BRAWLEY  said that slide  28, P-3. Retire  Public Convenience                                                               
Process;  New Options  for REPLs,  lists the  recommendations for                                                               
Public Convenience Licenses:                                                                                                    
                                                                                                                                
   • Repeal Public Convenience statute.                                                                                         
• Convert all existing Public Convenience restaurant licenses                                                                   
     to   standard   restaurant    licenses.   They   are   fully                                                               
     transferrable and subject to population limits with                                                                        
     grandfathering.                                                                                                            
   • Create a Seasonal Restaurant Tourism License.                                                                              
  • Allow qualifying municipalities, first class cities, or                                                                     
     unified municipalities to petition the ABC Board to                                                                        
   increase the number of REPLs available in their community.                                                                   
                                                                                                                                
     SB 76: Section 9, 04.09.210, .350; Sections 46-48,                                                                         
     04.11.405; Transition                                                                                                      
                                                                                                                                
MS. BRAWLEY  said slide 29, Public  Convenience Petition Process:                                                               
Current  Title  4,  illustrates the  current  Public  Convenience                                                               
process in Title 4. The  process involves gathering signatures on                                                               
a petition  and submitting  the petition  and application  to the                                                               
ABC  Board.  There is  no  definition  of public  convenience  in                                                               
statute,  so there  isn't  clear guidance  on  whether a  license                                                               
would  serve public  convenience.  If the  ABC  Board grants  the                                                               
license, a  new restaurant license  can be issued  without regard                                                               
to population limits.                                                                                                           
                                                                                                                                
MS. BRAWLEY  said slide 30,  Proposed in SB 76:  Local Government                                                               
Petition for Additional  Restaurant Licenses, illustrates another                                                               
Public Convenience  License replacement. Instead of  allowing for                                                               
individual applications  to be  considered outside  of population                                                               
limits, first-class  cities and unified municipalities  will have                                                               
the ability  to petition the  ABC Board for an  additional number                                                               
of restaurant  licenses. They need  to demonstrate they  have the                                                               
enforcement  capability  to  manage any  potential  impacts  from                                                               
those  licenses  and  that   they  have  sufficient  non-resident                                                               
population to support  a market for that type of  license. If the                                                               
ABC  Board approves  the petition  and grants  new licenses,  the                                                               
city cannot petition  again for 10 years. If the  petition is not                                                               
granted, the city can return with a revised petition.                                                                           
                                                                                                                                
SENATOR SHOWER asked how the  five-year limit applies, and if the                                                               
appeal process goes from the board to the commissioner.                                                                         
                                                                                                                                
MS. BRAWLEY  said the language in  the bill says 10  years if the                                                               
restaurant licenses are  granted. If the permit  is denied, there                                                               
is no  limit on  the ability to  repetition. This  system doesn't                                                               
exist in statute  now, so there is no  associated appeal process.                                                               
There is an appeal process for a denied or revoked license.                                                                     
                                                                                                                                
MS. BRAWLEY  said slide  31, N-7. Allow  Relocation of  a Package                                                               
Store from Borough  to City, is about a change  to a mechanism in                                                               
current law  allowing relocation  of an  existing bar  license or                                                               
package store:                                                                                                                  
                                                                                                                                
   • Amend AS 04.11.400(k) to allow transfers of both BDL and                                                                   
     Package Store licenses from a borough to a city within the                                                                 
     borough.                                                                                                                   
   • Currently, BDL relocations are allowed in boroughs with at                                                                 
     least 60,000 population.                                                                                                   
   • SB 76 would make relocation available in boroughs with at                                                                  
     least 50,000 population and currently operating licenses                                                                   
     that exceed population limits.                                                                                             
                                                                                                                                
MS. BRAWLEY said slide 32, Proposed  in SB 76: Option to Relocate                                                               
Some  Licenses  from  a  Borough  to  a  City,  illustrates  this                                                               
concept.  Licenses  in a  borough  could  be relocated  from  one                                                               
community to another.                                                                                                           
                                                                                                                                
Slide 33,  Proposed in  SB 76: Option  to Relocate  Some Licenses                                                               
from  a Borough  to  a City,  shows how  many  licenses would  be                                                               
available currently  for each  of the  three boroughs  that would                                                               
qualify under this system. Only  the borough's licenses in excess                                                               
of the population limits would  be eligible for relocation into a                                                               
city. The  purpose of that  is to  ensure that the  population of                                                               
the borough continues to be served by sufficient licenses.                                                                      
                                                                                                                                
She said this concludes the recommendations regarding licensing.                                                                
                                                                                                                                
MS.  BRAWLEY said  the  next few  recommendations  relate to  the                                                               
powers and duties of the ABC Board.                                                                                             
                                                                                                                                
Slide 34,  RB -4 ABC Board  as Key Partner for  Alcohol Education                                                               
Efforts, makes  explicit that part  of the board's  mission would                                                               
be to provide education about Title 4.                                                                                          
                                                                                                                                
• Designate the ABC Board and AMCO as the agency to develop a                                                                   
     multi-department, public-private sector education plan                                                                     
     about responsible alcohol use and applicable laws.                                                                         
 • Coordinate the ABC Board and AMCO as the agency to develop                                                                   
     a multi-department, public-private sector education plan                                                                   
     about responsible alcohol use and applicable laws.                                                                         
                                                                                                                                
     SB 76: section 1, 04.06.075; section 5, 04.06.090                                                                          
                                                                                                                                
MS. BRAWLEY said  slide 35, RB -2. Community  Analysis of Written                                                               
Order Database, lists the duties  and obligations associated with                                                               
the database that is overseen by the ABC Board:                                                                                 
                                                                                                                                
• Allow data about direct shipment orders of alcohol in local                                                                   
     option communities to be made publicly available,                                                                          
     aggregated at the region or community level for analysis                                                                   
     and community planning.                                                                                                    
    • Written order database can only be accessed by AMCO                                                                       
     enforcement staff, other law enforcement, and package store                                                                
     licensees who fill written orders.                                                                                         
   • Personal information would be kept confidential.                                                                           
                                                                                                                                
     SB 76: sections 6-7, 04.06.095                                                                                             
                                                                                                                                
Slide  36, Proposed  in SB  76: Publish  Community-Level Data  in                                                               
Local  Option Order  Database, illustrates  how the  Local Option                                                               
Order Database is treated currently and as proposed in the bill:                                                                
                                                                                                                                
   • In Current Title 4, all data in the Local Option Order                                                                     
     Database is private and is deleted after one year.                                                                         
   • SB 76 would keep individual order information private, but                                                                 
     retain aggregate data for 10 years and allow the ABC Board                                                                 
     to publish annual total sales volumes by region or                                                                         
     community.                                                                                                                 
   • This valuable information would be available to communities                                                                
     and law enforcement to understand the flow of alcohol into                                                                 
     local option communities via legal sales.                                                                                  
                                                                                                                                
     SB 76: sections 6-7, 04.06.095                                                                                             
                                                                                                                                
SENATOR SHOWER asked what is the intended use of that data.                                                                     
                                                                                                                                
MS. BRAWLEY said  it's knowing how much alcohol is  coming into a                                                               
community. The data  is already being collected  and the proposal                                                               
was to make better use of that information.                                                                                     
                                                                                                                                
SENATOR SHOWER said he'd need to think about that.                                                                              
                                                                                                                                
CHAIR  COGHILL  said  there's  been  an  ongoing  debate  in  the                                                               
legislature about local  option and how to have  a dry community.                                                               
It's easier in the rural areas  than in urban areas. He commented                                                               
that   even  the   aggregated   data   could  contain   sensitive                                                               
information.                                                                                                                    
                                                                                                                                
MS. BRAWLEY said  that the next recommendation is to  look at the                                                               
penalties defined in Title 4.  Currently, almost all of the Title                                                               
4 penalties  are class A  misdemeanors. This ranges  from serious                                                               
offenses  such  as  selling  without  a  license  to  not  filing                                                               
paperwork correctly.                                                                                                            
                                                                                                                                
     RB-6. Revise Title 4 Penalties                                                                                           
                                                                                                                                
        • Review penalties for all Title 4 sections, and revise                                                                 
          as needed to make penalties proportionate to the                                                                      
          offense, and more consistently enforced.                                                                              
        • Reduce most current Class A Misdemeanors to Minor                                                                     
          Offenses.                                                                                                             
        • Retain existing Misdemeanor and Felony charges for                                                                    
          serious offenses, particularly those causing harm to                                                                  
          children.                                                                                                             
        • Ensure that the ABC Board, and licensee if applicable,                                                                
          is informed about Title 4 convictions by requiring the                                                                
          court to send records to AMCO, and AMCO to send to the                                                                
          licensee.                                                                                                             
        • ABC Board retains its authority to impose conditions                                                                  
          or additional penalties, including suspending or                                                                      
          revoking license.                                                                                                     
        • See Appendix, Table 3, pp. 67-72 in Report for table                                                                  
         of all current penalties and proposed changes.                                                                         
                                                                                                                                
     SB 76: defined throughout; most prohibited acts are defined                                                                
     in chapter 16                                                                                                              
                                                                                                                                
2:24:15 PM                                                                                                                    
CHAIR COGHILL said  the members will be interested  in looking at                                                               
the penalties individually and discerning  the effectiveness of a                                                               
misdemeanor versus a fine that could have an economic impact.                                                                   
                                                                                                                                
MS. BRAWLEY  noted the last bullet  points to the table  with the                                                               
current penalties and proposed changes.                                                                                         
                                                                                                                                
MS. BRAWLEY  said slide 38  addresses the rationale  for reducing                                                               
penalties  in  Title  4.  The stakeholder  group  looked  at  the                                                               
charges from  2009 to  2013 and  found that a  lot of  cases were                                                               
dismissed.  They  also  found  that   the  Title  was  not  being                                                               
consistently enforced.  The rationale was to  improve enforcement                                                               
of  Title 4  by making  lower level  offenses more  automatically                                                               
enforced and keeping more serious  offenses at the current level.                                                               
She  noted that  Minor Consuming  offenses  was dealt  with in  a                                                               
different bill.                                                                                                                 
                                                                                                                                
CHAIR COGHILL said  offenses of minor consuming will  be a future                                                               
topic  of discussion.  His intention  is  to make  sure that  bad                                                               
actors can't easily co-opt children.                                                                                            
                                                                                                                                
MS. BRAWLEY  said slide 39  highlights the general  penalties for                                                               
each offense class. She pointed to the report for the specifics.                                                                
                                                                                                                                
She  said  that  concludes  the recommendations  related  to  the                                                               
powers of  the board. The penalty  recommendations cross multiple                                                               
sections of the bill.                                                                                                           
                                                                                                                                
CHAIR COGHILL  said his  primary focus for  the committee  is the                                                               
penalties.                                                                                                                      
                                                                                                                                
2:27:16 PM                                                                                                                    
MS.  BRAWLEY said  the next  recommendations related  to underage                                                               
drinking and  internet sales  of alcohol. Slide  40 looks  at the                                                               
effectiveness of current penalties and alternatives.                                                                            
                                                                                                                                
     UAD-1. Employee Penalty for Selling Alcohol to a Minor                                                                   
                                                                                                                              
        • Reduce the penalty for a licensee, agent or employee                                                                  
          selling alcohol to a minor (AS 04.16.052) from a Class                                                                
          A Misdemeanor to a Minor Offense with $500 fine.                                                                      
                                                                                                                                
     UAD-2. Licensee Liability for Employee Sales to Minors N-9.                                                              
     Licensee Liability for Overservice by Employees                                                                          
                                                                                                                              
        • Increase the consistency and certainty of sanctions to                                                                
          licensees for violations of AS 04.16.030 and -052.                                                                    
        • A licensee whose employee incurs either violation                                                                     
          receives an administrative penalty of $250.                                                                           
                                                                                                                                
     SB 76: section 81, 04.16.030; section 94, 04.16.052                                                                        
                                                                                                                                
CHAIR COGHILL  said the level  of the  penalty is one  thing, but                                                               
the mental state  is another. He asked if the  person serving the                                                               
alcohol would  automatically lose their  TAM Card as part  of the                                                               
penalty.                                                                                                                        
                                                                                                                                
MS. BRAWLEY said she didn't know.                                                                                               
                                                                                                                                
She said slide 41 illustrates the licensee penalties for                                                                        
overserving an adult or serving a minor.                                                                                        
                                                                                                                                
MS. BRAWLEY said the next recommendation is something that was                                                                  
enacted in 2016 for Minor Consuming Alcohol and Minor on                                                                        
Premises. SB 76 proposes a similar system:                                                                                      
                                                                                                                                
     UAD-5. Minor Consuming Alcohol (MCA) and Related Violations                                                              
                                                                                                                                
        • Enacted in 2016: Restore Minor Consuming Alcohol (AS                                                                  
          04.16.050) to a true violation; same changes to Minor                                                                 
          on Premises (AS 04.16.049), previously Misdemeanor A.                                                                 
        • Proposed in SB 76: similar changes to penalties for                                                                   
          Minor    Purchasing   or    Attempting   to    Purchase                                                               
          (04.16.060).                                                                                                          
        • Similar to already enacted changes above, youth                                                                       
          charged with 04.16.060 would not appear in CourtView.                                                                 
                                                                                                                                
     SB 76: section 98, 04.16.060                                                                                               
                                                                                                                                
2:30:25 PM                                                                                                                    
MS. BRAWLEY said slide 43 deals with server education:                                                                          
                                                                                                                                
     Require Server Education Card for All Retail Sales &                                                                     
     Service of Alcohol                                                                                                       
                                                                                                                                
        • Server education includes training  in verifying  age                                                                 
          and identification, responsible alcohol service,                                                                      
          overserving, and applicable penalties for violations.                                                                 
        • Some, but not all,  license types  are required  that                                                                 
          servers (employees) have alcohol server education                                                                     
          cards. Also not required for servers at permitted                                                                     
          events.                                                                                                               
        • Proposed in SB76: Require all license types who serve                                                                 
          the public, including sampling activities, to maintain                                                                
          server education cards.                                                                                               
        • Require servers for permitted events to  be certified                                                                 
          prior to the actual event.                                                                                            
                                                                                                                                
     SB 76: sections 125, 126, 127; 04.21.025                                                                                   
                                                                                                                                
MS.  BRAWLEY   said  the  next  recommendation   applies  to  keg                                                               
registration.                                                                                                                   
                                                                                                                                
     UAD-3. Statewide Keg Registration                                                                                        
                                                                                                                                
        • Require all beer kegs purchased  in the  state to  be                                                                 
         registered (and tagged with customer's name).                                                                          
        • Law enforcement who confiscate a  keg at  an underage                                                                 
          party can determine who legally purchased the keg and                                                                 
          hold adults responsible for furnishing alcohol to                                                                     
          minors.                                                                                                               
     • Modeled on existing laws in Anchorage and Juneau.                                                                        
        • Applies to kegs (containers) 4 gal. or larger.                                                                        
        • Licensee keeps customer information about keg purchase                                                                
          on file for a period of time.                                                                                         
        • Purchaser can be fined for removing tag on a full keg.                                                                
                                                                                                                                
     SB 76: section 122, 04.21.012                                                                                              
                                                                                                                                
MS. BRAWLEY  said Alaska  is one  of the few  states that  has no                                                               
rules about internet  sales of alcohol. Anyone  can order alcohol                                                               
online from  an out-of-state  business and  have it  delivered to                                                               
their house. It  is up to the business to  check ID. The proposal                                                               
in SB  76 would regulate  these sales. Slide 45  illustrates that                                                               
there  are more  rules on  in-state businesses  than out-of-state                                                               
businesses in this regard.                                                                                                      
                                                                                                                                
     Internet Sales in Alaska: Few Rules                                                                                      
                                                                                                                                
        • Alaska Package Stores cannot sell alcohol online, only                                                                
          via written order to "known" customers with ID on                                                                     
          file.                                                                                                                 
        • Alaska Wineries and Package Stores  can ship  wine to                                                                 
          customers in some circumstances.                                                                                      
        • Without state laws restricting online sales, there are                                                                
          currently no limits on purchases of alcohol online                                                                    
          from out-of-state sellers.                                                                                            
                                                                                                                                
MS. BRAWLEY said slide 46 introduces the Winery Direct Shipment                                                                 
License.                                                                                                                        
                                                                                                                                
        • Create a license available to  U.S. wineries  to ship                                                                 
          orders of wine to Alaska customers.                                                                                   
        • Prohibit online sales through this  license in  Local                                                                 
          Option areas.                                                                                                         
        • Prohibit other online sales of alcohol not under this                                                                 
          license or the Package Store Shipping endorsement.                                                                    
        • Modeled on similar licenses or  permits for  wineries                                                                 
          that exist in 44 other states.                                                                                        
        • Requires age  verification  and  delivering   to  the                                                                 
          customer in person, including a signature to                                                                          
          acknowledge receipt.                                                                                                  
        • Exempt from Alaska population limits.                                                                                 
                                                                                                                                
     SB 76: (Chapter 9) section 9, 04.09.360; section 79,                                                                       
     04.16.022                                                                                                                  
                                                                                                                                
Slide 47 illustrates how the regulation of internet sales would                                                                 
work.                                                                                                                           
                                                                                                                                
Slide 48 highlights that the bill would allow collection of                                                                     
excise tax on internet sales.                                                                                                   
                                                                                                                                
     INT-2. Collect Alaska Excise Tax for Internet Sales                                                                      
                                                                                                                                
   • In addition to maintaining current collection of excise tax                                                                
     on sales from in-state wineries, require all out-of-state                                                                  
     holders of a Winery Direct Shipment license to pay the same                                                                
     excise tax on Alaska orders.                                                                                               
   • Currently, no tax is collected from online sales of alcohol                                                                
     to Alaska customers.                                                                                                       
   • Legal precedent for collecting state alcohol tax from out-                                                                 
    of-state alcohol manufacturers: Granholm v. Heald (2005)                                                                    
                                                                                                                                
     SB 76: section 146; 43.60.060                                                                                              
                                                                                                                                
Slide 49 relates to package store shipping options                                                                              
                                                                                                                                
     N-3. Expand Package Store Shipping Order Options                                                                         
                                                                                                                                
 • Allow orders under a Package Store Shipping endorsement to                                                                   
     be received in formats other than a written order from a                                                                   
     known customer.                                                                                                            
 • This allows online ordering from in-state package stores,                                                                    
     including customers in Local Option areas.                                                                                 
 • Existing requirements in AS 04.11.150(a) for ID, shipping                                                                    
     and delivery still apply. Package stores would still be                                                                    
     required to report all orders to Local Option areas in                                                                     
     Written Order Database.                                                                                                    
                                                                                                                                
     SB 76: Section 9, 04.09.460; Section 105, 04.16.125                                                                        
     for common carrier rules                                                                                                   
                                                                                                                                
Slide 50,  Proposed in  SB 76:  Regulate Internet  Alcohol Sales,                                                               
illustrates  the ABC  Board's duties  related  to common  carrier                                                               
transport and delivery of alcohol.                                                                                              
                                                                                                                                
   • Common carriers would need to be approved by the ABC Board                                                                 
      to transport and deliver alcohol to consumers throughout                                                                  
      the state.                                                                                                                
   • Carriers must demonstrate that they have policies and train                                                                
      employees to properly handle shipments of alcohol.                                                                        
   • It would be the licensees' responsibility to work with                                                                     
      approved carriers for shipments to Alaska.                                                                                
                                                                                                                                
MS. BRAWLEY said this concludes the presentation.                                                                               
                                                                                                                                
2:35:20 PM                                                                                                                    
CHAIR  COGHILL  said he  appreciates  that  the alcohol  must  be                                                               
delivered to a person He  asked what procedure carriers follow if                                                               
they can't find the person receiving the package.                                                                               
                                                                                                                                
MS. BRAWLEY  suggested FedEx  and UPS  answer the  question; they                                                               
have their own existing policies.                                                                                               
                                                                                                                                
SENATOR  WIELECHOWSKI  commented  that   this  is  a  heavy  lift                                                               
considering this is  day 86 [of the  90-day legislative session].                                                               
He asked how this regulatory  scheme compares to the alcohol laws                                                               
and regulations in other states.                                                                                                
                                                                                                                                
MS. BRAWLEY  said that's  difficult to  answer because  states do                                                               
things differently.                                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI  asked if she had  a sense for how  the bill                                                               
would impact alcohol abuse in the state.                                                                                        
                                                                                                                                
MS. BRAWLEY replied  a goal of the project is  to address alcohol                                                               
abuse  in  Alaska. Changing  business  laws  alone won't  achieve                                                               
that, but  the more logical  the laws the  easier it will  be for                                                               
businesses and customers to operate  responsibly. The rules about                                                               
service of alcohol are intended to have a beneficial impact.                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI said he wonders  if less regulation might be                                                               
more beneficial; it  doesn't sound like there  is any statistical                                                               
information on  whether the  bill proposes  a heavier  or lighter                                                               
touch than the laws in other states.                                                                                            
                                                                                                                                
MS.  BRAWLEY  said  the  group   looked  at  evidence-based  best                                                               
practices  and several  are incorporated  in the  proposal. These                                                               
include keg registration, holding  licensees responsible for what                                                               
happens on their premises, and population limits.                                                                               
                                                                                                                                
CHAIR  COGHILL   said  the   booklet,  Recommended   Changes  for                                                               
Statutory  Change  is  a  good description  of  the  process  the                                                               
stakeholder  group  went through.  He  recommended  it be  posted                                                               
online.  He  asked  if  the  group discussed  the  benefit  of  a                                                               
monetary penalty  versus a misdemeanor penalty  for an individual                                                               
who furnishes alcohol to a minor.                                                                                               
                                                                                                                                
MS. BRAWLEY  said the  discussion the  stakeholder group  had was                                                               
that  there  would  be  a   significant  monetary  impact  on  an                                                               
individual. The bill  proposes a minor offense with  a $500 fine.                                                               
It would not impact other related charges.                                                                                      
                                                                                                                                
CHAIR COGHILL said he'll look at  that penalty closely and have a                                                               
conversation with law enforcement on how that is applied.                                                                       
                                                                                                                                
SENATOR SHOWER  asked if  a first-class or  home rule  city could                                                               
opt out of license requirements and do it locally.                                                                              
                                                                                                                                
MS. BRAWLEY  said it  would be  a change  to the  current system.                                                               
Current law says  only the ABC Board can  issue, transfer, renew,                                                               
suspend, and revoke licenses.                                                                                                   
                                                                                                                                
SENATOR  SHOWER asked  her thoughts  on an  amendment to  allow a                                                               
community to ask for more licenses after 3 years versus 5 years.                                                                
                                                                                                                                
MS. BRAWLEY said  the city would primarily be  impacted by making                                                               
more frequent requests.                                                                                                         
                                                                                                                                
SENATOR SHOWER said the MatSu is  growing and there has been some                                                               
concern  about limiting  economic growth  when the  population is                                                               
increasing so rapidly.                                                                                                          
                                                                                                                                
CHAIR COGHILL asked her to review the implementation provisions.                                                                
                                                                                                                                
MS.  BRAWLEY  said  most  of  the bill,  including  most  of  the                                                               
licensing  and  penalty changes,  would  take  effect January  1,                                                               
2020.  The ABC  Board has  the  ability to  draft regulations  to                                                               
implement the  bill provided they  do not take effect  before the                                                               
bill  takes effect.  A  few  provisions, such  as  the repeal  of                                                               
public  convenience   and  the  replacement  aspects   that  were                                                               
discussed, take effect  immediately. There are also  a few sunset                                                               
provisions  for   licenses  that  don't  fit   current  statutory                                                               
definitions.                                                                                                                    
                                                                                                                                
2:52:55 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:53:59 PM                                                                                                                    
CHAIR COGHILL  reconvened the  meeting and  asked Ms.  Brawley to                                                               
discuss the penalty provisions.                                                                                                 
                                                                                                                                
MS. BRAWLEY  asked members to  turn to  page 13 of  the sectional                                                               
analysis.  She  explained that  most  penalties  in Title  4  are                                                               
currently  class  A  misdemeanors.  The  sections  that  are  not                                                               
clearly defined as  a misdemeanor or felony are  reduced to minor                                                               
offenses with a $250 fine.                                                                                                      
                                                                                                                                
        Chapter 16. Regulation of Sales and Distribution.                                                                     
                                                                                                                                
                           Pages 79-97                                                                                          
                                                                                                                                
     Section 73  Hours of sale and presence on licensed                                                                     
     premises (standard closing hours)                                                                                        
                                                                                                                                
     AS 04.16.010(c) is  amended to allow a person  to be on                                                                
     the licensed premises  outside of the hours  of sale to                                                                    
     conduct  business with  the  licensee, maintenance,  or                                                                    
     improvements,  common   carrier  licensees,   and  adds                                                                    
     restaurant endorsement reference.                                                                                          
                                                                                                                                
     Section 74                                                                                                             
                                                                                                                                
     AS 04.16.010 adds a penalty for violating the section.                                                                   
                                                                                                                                
     Section  75     Pricing   and  marketing  of  alcoholic                                                                  
     beverages                                                                                                                
                                                                                                                                
     AS  04.16.015(a)  exempts   sampling  endorsements  and                                                                  
     defines week as seven days.                                                                                                
                                                                                                                                
     Section 76                                                                                                             
                                                                                                                              
     AS 04.16.015 adds a penalty for violating the section.                                                                   
                                                                                                                                
     Section 77  Trade practices                                                                                            
                                                                                                                              
     AS 04.16.017  new section that specifies  which illegal                                                                  
     trade  practices cannot  be practiced  by manufacturers                                                                    
     or  wholesalers   and  directs   the  board   to  adopt                                                                    
     regulations defining exceptions to  those rules as well                                                                    
     as administrative penalties for violations.                                                                                
                                                                                                                                
CHAIR COGHILL said those regulations would be forthcoming.                                                                      
                                                                                                                                
MS. BRAWLEY said yes.                                                                                                           
                                                                                                                                
She continued to review the penalty provisions.                                                                                 
                                                                                                                                
     Section  78     Solicitation  of  alcoholic  beverages;                                                                
     purchase on behalf of another                                                                                            
                                                                                                                              
     AS    04.16.020   sets    penalty   for    unauthorized                                                                  
     solicitation or purchase of alcoholic beverages.                                                                         
                                                                                                                                
     Section  79    Online  sale and  purchase of  alcoholic                                                                
     beverages                                                                                                                
                                                                                                                              
     AS04.16.022  new  section prohibiting  online  purchase                                                                  
     and sale  in Alaska  unless the  licensee has  a winery                                                                    
     direct  shipment  license  or  package  store  shipping                                                                    
     endorsement. It also defines  the penalties. [She noted                                                                    
     the  penalties are  different  for  a business  selling                                                                    
     versus a person purchasing.]                                                                                             
                                                                                                                                
     Section  80    Illegal presence  on premises  involving                                                                
     alcoholic beverages                                                                                                      
                                                                                                                                
     AS  04.16.025(a)  adds   statutory  references  to  all                                                                  
     penalties  involving  sale  without a  license.  [  She                                                                    
     noted that  current statute has  one penalty  that says                                                                    
     it  is  illegal  to  sell   or  manufacture  without  a                                                                    
     license.  The  bill  breaks   this  out  into  multiple                                                                    
     penalties   that    are   specific    to   unauthorized                                                                    
     manufacture or sale or unauthorized retail or sale.]                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI referenced subsection  (b) in Section 79 and                                                               
questioned how many people would check  to see if the person they                                                               
were  purchasing  from  held  either  a  winery  direct  shipment                                                               
license issued  under AS  04.09.360 or  a package  store shipping                                                               
endorsement  under AS  04.09.460. He  asked if  it was  common to                                                               
punish the purchaser in that situation.                                                                                         
                                                                                                                                
MS.  BRAWLEY said  she  didn't know  about  enforcement in  other                                                               
states,  but she  understands that  out-of-state businesses  that                                                               
operate this  way are  diligent about  checking whether  they can                                                               
serve somebody in another state.                                                                                                
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if the  standard for  guilt in  this                                                               
situation would be a knowing standard.                                                                                          
                                                                                                                                
MS. BRAWLEY deferred the question to the Department of Law.                                                                     
                                                                                                                                
CHAIR COGHILL  said he  wanted to  highlight the  penalties today                                                               
and the Department  of Law could discuss them  more thoroughly at                                                               
a later date.                                                                                                                   
                                                                                                                                
3:00:23 PM                                                                                                                    
MS. BRAWLEY continued to review the penalties in the sectional.                                                                 
                                                                                                                                
     Section  81    Prohibited conduct  relating to  drunken                                                                
     persons                                                                                                                  
                                                                                                                                
     AS   04.16.030  changes   the   existing  penalty   for                                                                  
     prohibited conduct  relating to a drunken  person, adds                                                                    
     an  administrative  penalty  to  the  licensee  if  the                                                                    
     employee is  convicted of a violation  of this section,                                                                    
     and  adds  misdemeanor  penalty for  the  licensee  who                                                                    
     knowingly allows employees to violate this section.                                                                        
                                                                                                                                
CHAIR COGHILL  commented that this  section adds a penalty  for a                                                               
licensee who knowingly violates this section.                                                                                   
                                                                                                                                
MS.  BRAWLEY said  yes. The  concept  in AS  04.16.150 that  says                                                               
licensees  are responsible  if they  knowingly allow  any illegal                                                               
activity on their premises, is added to this section.                                                                           
                                                                                                                                
SENATOR  WIELECHOWSKI read  the  first sentence  in the  proposed                                                               
subsection (e) in Section 81. He  asked if it means the holder of                                                               
the license  is strictly and  vicariously liable for  any damages                                                               
that  may  be  caused  in addition  to  the  $250  administrative                                                               
penalty or if the penalty is limited to just $250.                                                                              
                                                                                                                                
MS. BRAWLEY deferred the question to the Department of Law.                                                                     
                                                                                                                                
CHAIR  COGHILL  said   he  would  flag  that   question  for  the                                                               
Department of Law.                                                                                                              
                                                                                                                                
MS. BRAWLEY continued to review the penalties in the sectional.                                                                 
                                                                                                                                
     Section 82 - Possession of ingredients for homebrew in                                                                 
     certain areas                                                                                                            
                                                                                                                              
     AS 04.16.035  changes the statutory reference  from one                                                                  
     specific local  option area to all  local option areas,                                                                    
     consistent  with   AS  04.21.025   restricting  private                                                                    
     manufacture of alcohol in all local option areas.                                                                        
                                                                                                                                
     Section 83                                                                                                             
                                                                                                                                
         AS 04.16.035 maintains the current penalty for                                                                       
     possession of ingredients for homebrew.                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI asked what areas this relates to.                                                                          
                                                                                                                                
MS. BRAWLEY  said it's any  local option community that  has held                                                               
an election to either limit  sales or limit sales and importation                                                               
or limit sales, importation, and possession of alcohol.                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI commented  that the  existing law  seems to                                                               
broadly prohibit the possession of ordinary household items.                                                                    
                                                                                                                                
MS. BRAWLEY said  it is her understanding that,  depending on the                                                               
circumstances  of the  case, somebody  who keeps  yeast in  their                                                               
house  would not  necessarily be  considered possessing  with the                                                               
intent to homebrew.                                                                                                             
                                                                                                                                
       Section 84 - Access of drunken persons to licensed                                                                   
     premises                                                                                                               
                                                                                                                              
     AS  04.16.040  rewords  language relating  to  licensed                                                                  
     premises.                                                                                                                
                                                                                                                                
     Section 85                                                                                                             
                                                                                                                                
     AS   04.16.040  relocates   and  changes   penalty  for                                                                  
     prohibited  access  by  a drunken  person  to  licensed                                                                    
     premises.  [She  clarified  that this  relates  to  the                                                                    
     drunken person, not the licensee.]                                                                                         
                                                                                                                                
     Section  86    Obligation  to enforce  restrictions  in                                                              
     licensed premises                                                                                                        
                                                                                                                                
     AS   04.16.045  relocates   and  changes   penalty  for                                                                  
     permitting consumption not authorized under a license.                                                                     
                                                                                                                                
     Section  87   Access  of  persons  with restriction  on                                                              
     purchasing alcohol                                                                                                       
                                                                                                                                
     AS  04.16.047  adds  a  reference   to  a  penalty  for                                                                  
     entering and remaining on  licensed premises defined in                                                                    
     AS 04.16.160.                                                                                                              
                                                                                                                                
CHAIR COGHILL clarified that he only wanted Ms. Brawley to                                                                      
review the penalty sections.                                                                                                    
                                                                                                                                
     Section 93                                                                                                             
                                                                                                                                
     AS  04.16.051  changes   penalties  for  furnishing  or                                                                  
     delivering  to a  minor by  a person,  maintains one  C                                                                    
     felony  charge for  situations where  a minor  is given                                                                    
     alcohol and  causes serious injury or  harm but removes                                                                    
     C felony for the offense of  serving a minor in a Local                                                                    
     Option area, consistent with change in Section 61.                                                                         
                                                                                                                                
CHAIR COGHILL said he would look at that section closely because                                                                
some people groom minors with alcohol.                                                                                          
                                                                                                                                
MS. BRAWLEY continued to review the penalty sections.                                                                           
                                                                                                                                
     Section  94     Furnishing of  alcoholic  beverages  to                                                                
     person under the age of 21 by licensees                                                                                  
                                                                                                                              
     AS  04.16.052  changes   penalties  for  furnishing  or                                                                  
     delivering to a  minor by a licensee  or employee, adds                                                                    
     administrative  penalty  to  licensee  if  employee  is                                                                    
     convicted  of a  violation of  this section  and shifts                                                                    
     misdemeanor  penalty in  AS 04.16.150  to licensee  who                                                                    
     knowingly allows employees to violate this section.                                                                        
                                                                                                                                
     Section  95  -Room  rental for  purposes  of  consuming                                                                
     alcoholic beverages                                                                                                      
                                                                                                                                
     AS  04.16.055 changes  the penalty  for renting  a room                                                                  
     for the  purpose of providing alcoholic  beverages to a                                                                    
     person under 21 years of age.                                                                                              
                                                                                                                                
     Section  96    Permitting  minor  to illegally  possess                                                                
     liquor in a dwelling                                                                                                     
                                                                                                                              
     AS   04.16.057(b)  maintains   current  violation   for                                                                  
     allowing a minor  to possess alcohol in  a dwelling and                                                                    
     adds a $500 fine.                                                                                                          
                                                                                                                                
     Section 98                                                                                                             
                                                                                                                              
     AS  04.16.060  defines  penalties  for  purchase  by  a                                                                  
     person under 21  years of age and delivery  to a person                                                                    
     under  21 years  of  age. For  persons  under 21,  adds                                                                    
     similar penalty structure as those  in AS 04.16.049 and                                                                    
     AS 04.16.050,  $500 fine for  violation with  option to                                                                    
     reduce  fine to  $50  if youth  completes treatment  or                                                                    
     community  diversion  panel.  [She noted  that  if  the                                                                    
     person  is 21  years  or  older, it  would  be a  minor                                                                    
     offense with a $500 fine.]                                                                                                 
                                                                                                                                
     Section 100                                                                                                            
                                                                                                                              
     AS  04.16.080  sets  the penalty  for  consuming  at  a                                                                  
     school event.                                                                                                              
                                                                                                                                
     Section 102                                                                                                            
                                                                                                                              
     AS 04.16.090 defines the crime  of maintaining a bottle                                                                  
     club, relocates and maintains current penalty.                                                                             
                                                                                                                                
3:07:57 PM                                                                                                                    
SENATOR WIELECHOWSKI asked if the definition of school event in                                                                 
Section 100 would include a school fundraiser at a private                                                                      
restaurant.                                                                                                                     
                                                                                                                                
MS. BRAWLEY said her understanding is it would be an event that                                                                 
is held on school grounds.                                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI requested further clarification on that                                                                    
point.                                                                                                                          
                                                                                                                                
CHAIR COGHILL flagged the question.                                                                                             
                                                                                                                                
MS. BRAWLEY continued to review the penalty sections.                                                                           
                                                                                                                                
     Section  103     Sale of  certain  alcoholic  beverages                                                                
     prohibited                                                                                                               
                                                                                                                              
     AS  04.16.110 defines  sale of  a prohibited  alcoholic                                                                  
     beverage,  relocates  and maintains  [the  misdemeanor]                                                                    
     penalty.                                                                                                                   
                                                                                                                                
     Section  104    Removal  or  introduction of  alcoholic                                                                
     beverages                                                                                                                
                                                                                                                              
     AS  04.16.120   defines  removal  or   introduction  of                                                                  
     alcoholic  beverages,  sets   penalty  and  exemptions.                                                                    
     [This is reduced to a minor offense.]                                                                                      
                                                                                                                                
     Section  105      Alcoholic  beverages  transported  by                                                              
     common carrier                                                                                                           
                                                                                                                                
     AS 04.16.125  repeals and reenacts the  section. Allows                                                                  
     for  delivery to  a  person  over the  age  of 21  with                                                                    
     signature from  an order filled  by a package  store or                                                                    
     winery  direct shipment  licensee only  by an  approved                                                                    
     carrier, requires board to  review carrier policies and                                                                    
     publish  list of  approved carriers,  and removes  some                                                                    
     detailed language for delivery  to a local option area.                                                                    
     Maintains  penalty for  unauthorized transportation  of                                                                    
     alcoholic  beverages by  common  carrier  into a  local                                                                    
     option area  and makes  noncompliance a  violation. [An                                                                    
     unapproved  carrier  who delivers  alcoholic  beverages                                                                    
     would be subject to $500 fine.  It would be a $250 fine                                                                    
     if a carrier is approved but does not comply.]                                                                             
                                                                                                                                
     Section 106  Stock confined to licensed premises                                                                     
                                                                                                                                
     AS 04.16.130  sets penalty for unauthorized  storage of                                                                  
     alcoholic beverages. 17                                                                                                    
                                                                                                                                
     Section  107   -  Sale  or  consumption   of  alcoholic                                                                
     beverages in a warehouse                                                                                                 
                                                                                                                              
     AS 04.16.140  sets penalty for  consumption or  sale of                                                                  
     alcoholic beverages in a warehouse                                                                                         
                                                                                                                                
3:10:06 PM                                                                                                                    
SENATOR WIELECHOWSKI asked  what constitutes unauthorized storage                                                               
in Section 106.                                                                                                                 
                                                                                                                                
MS. BRAWLEY advised  that it is any place that  is not designated                                                               
as  a licensed  premises because  storage of  alcoholic beverages                                                               
must be on a designated licensed premises.                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI  referenced  Section  105 and  asked  if  a                                                               
person who is  driving from the Lower 48 to  Alaska would violate                                                               
the  provision of  transporting alcohol  into the  state if  they                                                               
were not registered and had a bottle of beer in their car.                                                                      
                                                                                                                                
MS. BRAWLEY said she didn't believe this covers that situation.                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI asked for  clarification from the Department                                                               
of Law.                                                                                                                         
                                                                                                                                
CHAIR COGHILL flagged the question for the Department of Law.                                                                   
                                                                                                                                
MS. BRAWLEY continued to review the penalty sections.                                                                           
                                                                                                                                
     Section 108  Licensee responsible for violations                                                                       
                                                                                                                              
     AS 04.16.150 changes the penalty  for failure to ensure                                                                  
     compliance [to  a minor offense  with a $250  fine. The                                                                    
     exceptions  would be  the sections  relocated to  those                                                                    
     relating to serving a minor.]                                                                                              
                                                                                                                                
     Section  109     Restriction  on  purchasing  alcoholic                                                                
     beverages                                                                                                                
                                                                                                                              
     AS  04.16.160 maintains  current [misdemeanor]  penalty                                                                  
     for failure to comply  with a restriction on purchasing                                                                    
     alcoholic beverages.                                                                                                       
                                                                                                                                
     Section 110 - 111  Source of alcoholic beverages                                                                       
                                                                                                                              
     AS  04.16.170 exempts  winery  direct shipment  license                                                                  
     and  maintains current  penalty for  sale of  alcoholic                                                                    
     beverages from or to an unlicensed person.                                                                                 
                                                                                                                                
     Section 112 -  113   Restrictions on  purchase and sale                                                                
     of alcoholic beverages                                                                                                   
                                                                                                                              
     AS  04.16.172  renumbers  cross-references  to  license                                                                  
     types  and  maintains   current  penalty  for  licensee                                                                    
     obtaining  alcoholic   beverages  from   an  unlicensed                                                                    
     seller.                                                                                                                    
                                                                                                                                
     Section 114   Furnishing  alcoholic beverages in aid of                                                                
     gambling enterprise                                                                                                      
                                                                                                                              
     AS  04.16.175 maintains  current [misdemeanor]  penalty                                                                  
     for the  crime of  furnishing an alcoholic  beverage in                                                                    
     aid  of   a  gambling   enterprise.  [She   noted  that                                                                    
     situation is not  on a licensed premises so  it's not a                                                                    
     licensee.]                                                                                                                 
                                                                                                                                
     Section 115  Penalties for violation                                                                                   
                                                                                                                              
     AS   04.16.180(b)   adds    statutory   references   to                                                                  
     prohibited  conduct  related  to  drunken  persons  and                                                                    
     furnishing  alcoholic beverages  to  persons under  the                                                                    
     age of  21 by licensees.  [She noted that  this section                                                                    
     is   the  penalties   the  ABC   Board  can   apply  to                                                                    
     licensees.]                                                                                                                
                                                                                                                                
3:14:17 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:18:03 PM                                                                                                                    
CHAIR COGHILL reconvened the meeting and asked Senator                                                                          
Micciche's staff, Rachael Hankey, to continue the sectional                                                                     
summary of SB 76, starting with Chapter 21 keg registration.                                                                    
                                                                                                                                
3:18:17 PM                                                                                                                    
RACHAEL HANKE, Staff, Senator Peter Micciche, Alaska State                                                                      
Legislature, Juneau, Alaska, reviewed the following sections of                                                                 
SB 75 on behalf of the sponsor.                                                                                                 
                                                                                                                              
                Chapter 21. General Provisions.                                                                               
                           Pages 97-104                                                                                         
                                                                                                                                
     Section 122  Keg registration                                                                                          
                                                                                                                              
     AS  04.21.012  adds  new  section  establishing  a  keg                                                                  
     registration   process   including    proof   of   age,                                                                    
     registration  form  requirements, identification  tags,                                                                    
     and establishes the penalty for  possession and sale of                                                                    
     alcoholic beverages in an  unregistered keg. [She noted                                                                    
     the penalty for  the licensee is a $250  fine. The fine                                                                    
     for a person possessing  an unregistered keg containing                                                                    
     alcohol is $100.]                                                                                                          
                                                                                                                                
     Section  123  -  124      Civil  liability  of  persons                                                                
     providing alcoholic beverages                                                                                            
                                                                                                                              
     AS 04.21.020(a) renumbers cross-references.                                                                              
                                                                                                                                
     Section 125  Alcohol server education course                                                                           
                                                                                                                              
     AS  04.21.025(a) repeal  and  reenact  section to  list                                                                  
     license  types that  do  not  require server  education                                                                    
     training:  only licenses  not  serving  the public  are                                                                    
     exempt  from requirement.  [She  noted  the penalty  is                                                                    
     reduced  from   a  class  A  misdemeanor   to  a  minor                                                                    
     offense.]                                                                                                                  
                                                                                                                                
     Section 126                                                                                                            
                                                                                                                              
     AS 04.21.025(b)  adds reference  to permit  holders and                                                                  
     individuals listed  on an application as  servers for a                                                                    
     permitted event.                                                                                                           
                                                                                                                                
     Section 127                                                                                                            
                                                                                                                              
     AS 04.21.025(c)  adds reference  to permit  holders and                                                                  
     requires servers  listed on  the permit  application to                                                                    
     have a current alcohol servers  card by the first event                                                                    
     day.                                                                                                                       
                                                                                                                                
CHAIR COGHILL said he understands that those penalties will be                                                                  
followed by regulation.                                                                                                         
                                                                                                                                
MS. HANKE replied it falls under the alcohol server education                                                                   
course in AS 04.21.025.                                                                                                         
                                                                                                                                
     Section 128                                                                                                            
                                                                                                                              
     AS 04.21.025  defines the offense of  failure to comply                                                                  
     with  alcohol server  education  requirements and  sets                                                                    
     penalty.                                                                                                                   
                                                                                                                                
     Section 129   Proof of  age and of not being restricted                                                                
     from purchasing alcoholic beverages                                                                                      
                                                                                                                              
     AS 04.21.050(a) renumbers cross-reference.                                                                               
                                                                                                                                
     Section 130  Warehousing of alcoholic beverages                                                                        
                                                                                                                              
     AS  04.21.060  defines   the  offense  of  unauthorized                                                                  
     warehousing  and establishes  penalty.  [She noted  the                                                                    
     penalty  is reduced  from a  class A  misdemeanor to  a                                                                    
     minor offense.]                                                                                                            
                                                                                                                                
SENATOR COSTELLO asked if warehousing is defined.                                                                               
                                                                                                                                
MS. HANKE deferred the question to Erika McConnell to say                                                                       
whether or not a definition was in regulation.                                                                                  
                                                                                                                                
     Section 131  Posting of warning signs                                                                                  
                                                                                                                              
     AS  04.21.065(a) updates  list  of  license types  that                                                                  
     require warning signs. [She noted  this remains a minor                                                                    
     offense with  a fine of  $20 to $300 per  day depending                                                                    
     on the situation.]                                                                                                         
                                                                                                                                
     Section 132                                                                                                            
                                                                                                                                
     AS 04.21.072.  Fines and other criminal  penalties. New                                                                  
     section  which  sets  penalties for  other  violations,                                                                    
     misdemeanors, or felonies unless otherwise specified.                                                                      
                                                                                                                                
     AS  04.21.074. Bail  forfeiture  schedule. Directs  the                                                                  
     supreme  court  to set  a  bail  schedule for  Title  4                                                                    
     violations.                                                                                                                
                                                                                                                                
     AS 04.21.076. Suspension of  fine or sentence. Prevents                                                                  
     the court from suspending  fines or sentences for minor                                                                    
     offenses.                                                                                                                  
                                                                                                                                
     Section 133    Court records of persons  under 21 years                                                                
     of age                                                                                                                   
                                                                                                                              
     AS  04.21.078 adds  additional  statutory reference  to                                                                  
     violations of AS 04.16.060.                                                                                                
                                                                                                                                
     Section 134  Definitions                                                                                               
                                                                                                                              
     AS  04.21.080(b)(6) adds  reference  to permit  holders                                                                  
     and license holders.                                                                                                       
                                                                                                                                
     Section 135                                                                                                            
                                                                                                                              
     AS 04.21.080(b)(15) adds endorsements.                                                                                   
                                                                                                                                
     Section 136                                                                                                            
                                                                                                                              
     AS 04.21.080(b) adds definitions.                                                                                        
                                                                                                                                
MS.  HANKE  said  the  following are  changes  to  other  various                                                               
titles.                                                                                                                         
                                                                                                                                
              Amendments to Various Other Titles.                                                                             
                                                                                                                              
                         Pages 104-109                                                                                          
                                                                                                                              
Section 137  Definitions                                                                                                    
                                                                                                                              
AS 05.15.690(48)  renumber beverage dispensary  license reference                                                             
and update "bar" definition.                                                                                                    
                                                                                                                                
She noted she was moving out of the penalties.                                                                                  
                                                                                                                                
Section 146  Winery direct shipment tax; statement; audit                                                                   
                                                                                                                              
AS 43.60.060 establishes tax collection  on direct wine shipments                                                             
from out  of state businesses  holding this license  and outlines                                                               
requirements for the Department of Revenue.                                                                                     
                                                                                                                                
CHAIR COGHILL observed that the penalty would be in regulation.                                                                 
                                                                                                                                
MS.  HANKE clarified  that this  is a  new concept.  Most of  the                                                               
licensees would be out-of-state and  the penalties would be minor                                                               
offenses.                                                                                                                       
                                                                                                                                
SENATOR COSTELLO asked if the bill had a fiscal impact.                                                                         
                                                                                                                                
MS. HANKE  replied new revenue is  generated by the bill  and the                                                               
fiscal notes are posted online.                                                                                                 
                                                                                                                                
SENATOR COSTELLO said  she didn't believe the bill  had a finance                                                               
referral.                                                                                                                       
                                                                                                                                
MS. HANKE agreed.                                                                                                               
                                                                                                                                
CHAIR COGHILL said  he'd think about that. He asked  Ms. Hanke to                                                               
ensure  that the  Department of  Law and  the Alcoholic  Beverage                                                               
Control Board were available for the hearing on Friday.                                                                         
                                                                                                                                
3:25:22 PM                                                                                                                    
CHAIR COGHILL held SB 76 in committee for further consideration.                                                                
                                                                                                                                
          HB 307-MILITARY JUSTICE & MILITIA CIVIL RELIEF                                                                    
                                                                                                                                
3:26:19 PM                                                                                                                    
CHAIR COGHILL announced the consideration of HB 307. [CSHB                                                                      
307(JUD) was before the committee.] He noted who was available                                                                  
to answer questions.                                                                                                            
                                                                                                                                
3:27:15 PM                                                                                                                    
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, Juneau,                                                                    
Alaska, sponsor of HB 307, introduced the bill speaking to the                                                                  
following sponsor statement:                                                                                                    
                                                                                                                                
     In an  effort to continue  to modernize and  update the                                                                    
     Alaska   Military  Code,   House   Bill  307   provides                                                                    
     statutory  changes to  incorporate recent  updates from                                                                    
     the  federal Uniform  Code of  Military Justice  (UCMJ)                                                                    
     and Servicemembers Civil Relief Act (SCRA).                                                                                
                                                                                                                                
     In  2016, Alaska's  military  command  worked with  the                                                                    
     legislature  to  pass  the   Alaska  Code  of  Military                                                                    
     Justice  (ACMJ) to  provide greater  ability to  pursue                                                                    
     and   prosecute   those  servicemembers   who   violate                                                                    
     military  rules  and protocols.  House  Bill  307 is  a                                                                    
     continuation of those efforts.                                                                                             
                                                                                                                                
     House Bill  307 would  update crimes recognized  by the                                                                    
     UCMJ,  establish   a  procedure  within  the   code  of                                                                    
     military  justice for  a service  member who  commits a                                                                    
     sexual offense to  register as a sex  offender or child                                                                    
     kidnapper, update  offenses that are subject  to court-                                                                    
     martial  proceedings  and update  consumer  protections                                                                    
     for service members.                                                                                                       
                                                                                                                                
     In   close  and   continuing   consultation  with   the                                                                    
     Department  of Military  and Veterans  Affairs, we  are                                                                    
     continuing our  efforts to  guaranteeing the  safety of                                                                    
     Alaskans  and  the   security  of  our  law-enforcement                                                                    
     procedures.                                                                                                                
                                                                                                                                
     Updating the  ACMJ regularly is a  critical response to                                                                    
     the always-evolving military  justice system, and vital                                                                    
     to maintaining good order and  discipline in the Alaska                                                                    
     Organized Militia,  so it is timely  and necessary that                                                                    
     we  pass   HB  307.  I   urge  your  support   of  this                                                                    
     legislation.                                                                                                               
                                                                                                                                
REPRESENTATIVE  TUCK advised  that the  Uniform Code  of Military                                                               
Justice  (UCMJ) has  been around  in some  form since  1775. Most                                                               
states try  to adhere to that  code so that service  members know                                                               
what to  expect when they  transfer from  one state to  the next.                                                               
Including  the  Service  Contract  Act in  the  code  also  helps                                                               
service members who are protecting the nation.                                                                                  
                                                                                                                                
3:29:26 PM                                                                                                                    
CHAIR COGHILL  asked if the  National Guard Bureau  supports this                                                               
for active duty members.                                                                                                        
                                                                                                                                
REPRESENTATIVE  TUCK  said yes  and  they  also worked  with  the                                                               
Alaska  Command  to  make  sure  that it  fits  with  the  Alaska                                                               
Constitution.                                                                                                                   
                                                                                                                                
CHAIR  COGHILL   asked  Kendra  Kloster   to  walk   through  the                                                               
sectional.                                                                                                                      
                                                                                                                                
3:30:13 PM                                                                                                                    
KENDRA KLOSTER,  Staff, Representative  Chris Tuck,  Alaska State                                                               
Legislature,  Juneau, Alaska,  said  HB 307  reflects the  recent                                                               
updates  to the  federal Uniform  Code of  Military Justice.  She                                                               
delivered  the  sectional  analysis   speaking  to  the  prepared                                                               
document.                                                                                                                       
                                                                                                                                
MS.  KLOSTER noted  that Sections  1-5 ensure  that sex  offenses                                                               
committed under the  military code are reflected  under Title 12.                                                               
The  idea  is  that  sex  offense under  the  military  code  are                                                               
reported  to  the  Department  of  Public  Safety  (DPS)  so  the                                                               
individual is added to the state's sex offender registry.                                                                       
                                                                                                                                
     Section  1. Amends  AS 12.63.100(1)  to include  within                                                                  
     the definition of aggravated  sexual offense an offense                                                                    
     under  AS  26.05.890  if  the   person  engaged  in  or                                                                    
     attempted  to  engage  in  sexual  penetration  and  an                                                                    
     offense  under AS  26.05.893 if  the prohibited  sexual                                                                    
     activity  in  which  the   militia  member  engaged  or                                                                    
     attempted to engage in sexual penetration.                                                                                 
                                                                                                                                
     Section  2. Amends  AS 12.63.100(2)  to include  within                                                                  
     the   definition  of   child  kidnapping   an  offense,                                                                    
     attempt,  solicitation,  or  conspiracy  to  commit  an                                                                    
     offense  under AS  26.05.935(b)  if the  member of  the                                                                    
     militia  commits an  enumerated  offense of  kidnapping                                                                    
     punishable  under Article  134 of  the Uniform  Code of                                                                    
     Military  Justice (UCMJ)  and the  victim was  under 18                                                                    
     years of age at the time of the offense.                                                                                   
                                                                                                                                
     Section  3. Amends  AS 12.63.100(6)  to include  within                                                                  
     the definition  of sex offense indecent  exposure under                                                                    
     AS 26.05.900(c)  and other qualifying  conviction under                                                                    
     AS 26.05.890 and 26.05.893 as specified.                                                                                   
                                                                                                                                
     Section   4.  Amends   AS  12.63.100   by  adding   new                                                                  
     paragraphs  that define  "sexual  contact" and  "sexual                                                                    
     penetration" to  have the same  meaning as  given these                                                                    
     terms in AS 11.81.900.                                                                                                     
                                                                                                                                
     Section 5.  Amends AS 18.65.087(a)  to include  a court                                                                  
     judgment that the Department  of Public Safety receives                                                                    
     from the  Department of  Military and  Veterans Affairs                                                                    
     for  convictions under  AS 26.05.890(h),  26.05.893(d),                                                                    
     26.05.900(e),  or 26.05.935(d)  as information  for the                                                                    
     sexual offender registry.                                                                                                  
                                                                                                                                
     Section 6.  Amends AS 26.05.135 to  extend the benefits                                                                  
     of  the Service  members Civil  Relief Act,  especially                                                                    
     those  pertaining  to  consumer  transactions,  to  all                                                                    
     members of  the Alaska  Organized Militia  (AOM), i.e.,                                                                    
     the  Alaska   Army  National  Guard,  the   Alaska  Air                                                                    
     National  Guard,  the  Alaska Naval  Militia,  and  the                                                                    
     Alaska State Defense Force.                                                                                                
                                                                                                                                
     Section   7.  Amends   AS  26.05.135   by  adding   new                                                                  
     subsections: (b) allowing  Service members to terminate                                                                    
     of certain  contracts for consumer services  if ordered                                                                    
     to  relocate; (c)  directing  that Servicemembers  must                                                                    
     furnish  service  providers   with  written  notice  of                                                                    
     contract  termination and  written proof  of relocation                                                                    
     orders;  (d)   allowing  Servicemembers   to  reinstate                                                                    
     terminated contracts upon separation  from the AOM; (e)                                                                    
     prohibiting service  providers from charging  a Service                                                                    
     member  for   terminating  a  contract   and  releasing                                                                    
     Servicemembers  from any  payment obligation  after the                                                                    
     termination;  and  (f)   defining  militia  members  as                                                                    
     members  of  the  AOM, and  the  organized  militia  as                                                                    
     including  the Alaska  (Army and  Air) National  Guard,                                                                    
     Alaska Naval  Militia, and  Alaska State  Defense Force                                                                    
     and defining  servicemember of the armed  forces of the                                                                    
     United States or  a member of the  organized militia of                                                                    
     the state.                                                                                                                 
                                                                                                                                
CHAIR COGHILL asked how Section 7 works in practice.                                                                            
                                                                                                                                
MS. KLOSTER said that when  service members are deployed they can                                                               
notify businesses so they won't be  placed in default on bills or                                                               
contracts while they  are away. If they do go  into default, they                                                               
have  civil recourse.  She deferred  further  explanation to  Bob                                                               
Doehl.                                                                                                                          
                                                                                                                                
3:33:06 PM                                                                                                                    
BOB  DOEHL,   Deputy  Commissioner,  Department  of   Military  &                                                               
Veterans Affairs  (DMVA), Anchorage,  Alaska, explained  that the                                                               
person who  is deploying notifies relevant  venders or businesses                                                               
that  they are  invoking  their rights  under  the Civil  Service                                                               
Relief Act. If  a military member finds they are  in default when                                                               
they  return,  DMVA encourages  them  to  contact the  vender  or                                                               
business  to  resolve  the differences.  If  necessary  something                                                               
similar to the Employer Support  of the Guard and Reserve process                                                               
assists  the   businesses  in  understanding  their   rights  and                                                               
obligations.                                                                                                                    
                                                                                                                                
MS. KLOSTER continued the sectional analysis for HB 307.                                                                        
                                                                                                                                
     Section  8.   Amends  AS  26.05.380  (b)   by  striking                                                                  
     language  reserving Servicemembers'  ability to  reject                                                                    
     non-judicial  punishment  and  opt instead  for  court-                                                                    
     martial,  essentially  restoring   the  "no  turn-down"                                                                    
     clause proposed  in the original  ACMJ update  of 2015-                                                                    
     16.                                                                                                                        
                                                                                                                                
     Section 9.  Amends AS  26.05.555 to  reflect additional                                                                  
     language in  the amended  Rules for  Courts-Martial 201                                                                    
     (c) that provides judges may  hold a person in contempt                                                                    
     of  court  for  willfully  disobeying  a  court-martial                                                                    
     order or creating a disturbance during proceedings.                                                                        
                                                                                                                                
     Section 10.  Amends AS  26.05 to add  a new  section AS                                                                  
     26.05.697 making  failing to reveal or  concealing from                                                                    
     authorities serious  offenses committed by  others, and                                                                    
     militia  members committing  these offenses  subject to                                                                    
     punishment as courts-martial may direct.                                                                                   
                                                                                                                                
     Section 11. Amends AS 26.05.700  to allow an accused to                                                                  
     be   found  guilty   of  lesser   offenses  necessarily                                                                    
     included in  offenses charged or of  attempts to commit                                                                    
     either, regarding offenses  designated by the President                                                                    
     in an appendix to the 2017 Manual for Courts-Martial.                                                                      
                                                                                                                                
     Section  12.   Amends  AS  26.05.715   to  add   a  new                                                                  
     subsection  (c) prohibiting  a  member  of the  militia                                                                    
     from soliciting  or advising  another person  to commit                                                                    
     an  offense  under  this chapter,  and  making  militia                                                                    
     members committing such  offenses subject to punishment                                                                    
     as courts-martial may direct.                                                                                              
                                                                                                                                
     Section 13.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.737 prohibiting  militia members  from wrongfully                                                                    
     manipulating,  creating, using,  selling, or  otherwise                                                                    
     falsifying  official identifications,  passes, permits,                                                                    
     or certificates  and making militia  members committing                                                                    
     these offenses subject  to punishment as courts-martial                                                                    
     may direct.                                                                                                                
                                                                                                                                
     Section   14.   Amends    AS   26.05.740   to   specify                                                                  
     intentionally  or  wrongfully  jumping into  the  water                                                                    
     from a vessel in use by  the armed forces so as to miss                                                                    
     a  transportation  movement  required  by  duty  is  an                                                                    
     offense  and  a  militia   member  committing  such  an                                                                    
     offense  is subject  to punishment  as a  court-martial                                                                    
     may direct.                                                                                                                
                                                                                                                                
     Section 15.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.767  describing impersonation  of officers,  non-                                                                    
     commissioned  officers,  petty   officers,  agents,  or                                                                    
     officials,   and  AS   26.05.768  designating   wearing                                                                    
     unauthorized  insignias, decorations,  badges, ribbons,                                                                    
     devices,  or lapel  buttons  as  offenses, and  militia                                                                    
     members  committing  these   offenses  are  subject  to                                                                    
     punishment as courts-martial may direct.                                                                                   
                                                                                                                                
     Section 16.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.785 designating  a militia member who  engages in                                                                    
     inappropriate  release  of  a  prisoner  or  unlawfully                                                                    
     drinking  an  alcoholic  beverage with  a  prisoner  is                                                                    
     subject to punishment as a court-martial may direct.                                                                       
                                                                                                                                
     Section 17.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.793 making wrongful  interference with an adverse                                                                    
     administrative  proceeding an  offense,  and a  militia                                                                    
     member   committing   such   an  offense   subject   to                                                                    
     punishment as a court-martial may direct.                                                                                  
                                                                                                                                
     Section 18.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.796  designating  a  militia member  engaging  in                                                                    
     wrongful  refusal to  testify to  an official  military                                                                    
     proceeding as subject to  punishment as a court-martial                                                                    
     may   direct.  Adds   a   new   section  AS   26.05.798                                                                    
     prohibiting retaliation against  a person for reporting                                                                    
     or planning  to report  a criminal offense,  and making                                                                    
     militia  members who  commit such  offenses subject  to                                                                    
     punishment as courts-martial may direct.                                                                                   
                                                                                                                                
     Section 19.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.833   prohibiting    certain   offenses   against                                                                    
     correctional custody and  restriction, including escape                                                                    
     and exceeding  the limits of physical  restriction, and                                                                    
     making   militia  members   committing  such   offenses                                                                    
     subject to punishment as courts-martial may direct.                                                                        
                                                                                                                                
     Section  20.   Amends  AS  26.05.835   to  add   a  new                                                                  
     subsection (b) providing a  militia member violating or                                                                    
     falsely  making   an  official   oath  is   subject  to                                                                    
     punishment as a court-martial may direct.                                                                                  
                                                                                                                                
     Section   21.  Amends   AS  26.05.855(b)   to  make   a                                                                  
     conforming  change   to  remove  the  reference   of  a                                                                    
     controlled   substance  in   AS   26.05.870  (c),   the                                                                    
     definition of  a controlled substance was  moved to the                                                                    
     definition section in AS 26.05.990.                                                                                        
                                                                                                                                
     Section   22.  Amends   AS  26.05.855(c)   to  make   a                                                                  
     conforming  change   to  remove  the  reference   of  a                                                                    
     controlled   substance  in   AS   26.05.870  (c),   the                                                                    
     definition of  a controlled substance was  moved to the                                                                    
     definition section in AS 26.05.990.                                                                                        
                                                                                                                                
     Section 23.  Amends AS  26.05.860 changing  the offense                                                                  
     of   "Drunk  on   Duty"  to   "Drunkenness  and   Other                                                                    
     Incapacitating    Offenses"    offenses   to    include                                                                    
     incapacitation  due  to  indulgence  in  any  alcoholic                                                                    
     beverage or  any drug, and  making militia  members who                                                                    
     commit such  offenses subject to punishment  as courts-                                                                    
     martial may direct.                                                                                                        
                                                                                                                                
     Section  24.   Amends  AS   26.05.860  by   adding  new                                                                  
     subsection  (b)  directing  a member  of  the  militia,                                                                    
     while in  status as  a prisoner is  drunk or  under the                                                                    
     influence  of a  controlled substance  without a  valid                                                                    
     prescription, shall be punished  as a court-martial may                                                                    
     direct.                                                                                                                    
                                                                                                                                
     Section 25.  Amends AS  26.05.865 to  include sentinels                                                                  
     loitering  or wrongfully  sitting  down on  duty or  is                                                                    
     unable  to perform  their  duty as  a  result from  any                                                                    
     alcoholic beverage or drug is  subject to punishment as                                                                    
     courts-martial may direct.                                                                                                 
                                                                                                                                
     Section 26.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.867   directing   militia  members   engaged   in                                                                    
     improper  behavior toward  a  sentinel  or lookout  are                                                                    
     subject to punishment as courts-martial may direct.                                                                        
                                                                                                                                
     Section  27. Amends  AS 26.05.890(a)  to enumerate  the                                                                  
     offenses for  which militia members would  be guilty of                                                                    
     sexual  assault and  subject to  punishment as  courts-                                                                    
     martial may direct.                                                                                                        
                                                                                                                                
     Section  28.   Amends  AS  26.05.890  by   adding  news                                                                  
     subsections (g)  defining when  court-martial convening                                                                    
     authorities may  reduce, commute, or  suspend sentences                                                                    
     imposed  by   court-martial  for  offenses   of  sexual                                                                    
     assault,  and (h)  requiring courts-martial  to provide                                                                    
     offenders convicted of  sexual assault with information                                                                    
     regarding   sex   offender    registration   under   AS                                                                    
     12.63.010.                                                                                                                 
                                                                                                                                
     Section 29.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.893  describing   prohibited  activities  between                                                                    
     militia  members  in  positions of  special  trust  and                                                                    
     military  recruits,  trainees,  and  subordinates,  and                                                                    
     prescribing such offenses are  subject to punishment as                                                                    
     courts-martial  may  direct.   AS  26.05.893  specifies                                                                    
     consent is not a defense for  any conduct at issue in a                                                                    
     prosecution under this statute.                                                                                            
                                                                                                                                
     Section 30.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.897   defining  the   offenses  of   assault  and                                                                    
     aggravated  assault,  and  specifying  militia  members                                                                    
     committing these offenses are  subject to punishment as                                                                    
     courts-martial may direct.                                                                                                 
                                                                                                                                
     Section   31.  Amends   AS   26.05.900(a)  to   include                                                                  
     broadcasting  and distribution  of indecent  recordings                                                                    
     as  described in  this section  as  offenses for  which                                                                    
     militia  members  would  be subject  to  punishment  as                                                                    
     courts-martial may direct.                                                                                                 
                                                                                                                                
     Section  32. Amends  AS 26.05.900(d)  by  adding a  new                                                                  
     paragraph  defining "recording"  as  that contained  in                                                                    
     the  2016 Amendment  to article  120c of  the UCMJ,  "a                                                                    
     still or  moving visual image  captured or  recorded by                                                                    
     any means,"  and "without  the other  person's consent"                                                                    
     as  having  the  same  meaning  as  given  to  "without                                                                    
     consent" in AS 11.41.470.                                                                                                  
                                                                                                                                
     Section 33.  Amends AS 26.05.900 by  adding new section                                                                  
     (e)  requiring  courts-martial   to  provide  offenders                                                                    
     convicted of sexual  assault with information regarding                                                                    
     sex offender registration under AS 12.63.010.                                                                              
                                                                                                                                
     Section 34.  Amends AS 26.05  by adding new  section AS                                                                  
     26.05.913 making  militia members engaged  in willfully                                                                    
     and  unlawfully manipulating  public  records with  ill                                                                    
     intent  subject  to  punishment as  courts-martial  may                                                                    
     direct.                                                                                                                    
                                                                                                                                
     Section  35.   Amends  AS   26.05.935  by   adding  new                                                                  
     subsection   (d)  requiring   offenders  convicted   of                                                                    
     enumerated  offenses  under  (b)  of  this  section  to                                                                    
     register  as   sex  offenders   under  AS   12.63,  and                                                                    
     requiring  courts-martial  to  provide  offenders  with                                                                    
     information regarding sex offender registration.                                                                           
                                                                                                                                
     Section 36. Amends  AS 26.05 by adding  new sections AS                                                                  
     26.05.940  prohibiting willful  and intentional  misuse                                                                    
     of  government computers,  programs,  codes, and  data,                                                                    
     and  AS  26.05.945   prohibiting  knowing  and  willful                                                                    
     violation of  the limits of  a medical  quarantine, and                                                                    
     making  militia   members  engaged  in   such  offenses                                                                    
     subject to punishment as a court-martial may direct.                                                                       
                                                                                                                                
     Section  37.   Amends  AS  26.05.990  to   include  the                                                                  
     definition  of a  controlled substance.  The definition                                                                    
     was originally located in  AS 26.05.870(c). Section 38.                                                                    
     Repeals AS 26.05.870 (c).                                                                                                  
                                                                                                                                
     Section 39. Amends  the uncodified law of  the State of                                                                  
     Alaska to  reconcile the generally  equivalent military                                                                    
     and civilian  offenses, and specify  the dates  the new                                                                    
     measures  above will  apply  to  cases involving  these                                                                    
     offenses.                                                                                                                  
                                                                                                                                
     Section 40. Amends  the uncodified law of  the State of                                                                  
     Alaska to allow this Act  to take effect only after The                                                                    
     Adjutant   General  (TAG)   notifies  the   revisor  of                                                                    
     statutes on  or before  1 January2019 the  President of                                                                    
     the  United  States  has   signed  an  Executive  Order                                                                    
     designating  the  effective  date, under  the  National                                                                    
     Defense  Authorization Act,  of the  amendments to  the                                                                    
     UCMJ made by the Military Justice Act of 2016.                                                                             
                                                                                                                                
     Section 41. Amends  the uncodified law of  the State of                                                                  
     Alaska to allow  Sections 1-5, 8-38, and  39 (b)-(d) of                                                                    
     this  Act  to take  effect  only  if TAG  notifies  the                                                                    
     revisor of statutes as prescribed in Section 40 above.                                                                     
                                                                                                                                
     Section  42. Specifies  if Sections  1-5, 8-38,  and 39                                                                  
     (b)-(d)  of  this  Act take  effect  under  Section  41                                                                    
     above, they take effect 1 January 2019.                                                                                    
                                                                                                                                
     Section  43.  Establishes 1  July  2018  as this  Act's                                                                  
     effective  date,  except  as  provided  in  Section  38                                                                    
     above.                                                                                                                     
                                                                                                                                
CHAIR COGHILL  observed that the  various effective  dates appear                                                               
to  dovetail  with  either  the  Uniform  Military  Code  or  the                                                               
National Guard Bureau efforts.                                                                                                  
                                                                                                                                
MS.  KLOSTER  said  that's  correct.   The  bill  also  has  some                                                               
conditional effect  language because the current  Uniform Code of                                                               
Military Justice is still in process.                                                                                           
                                                                                                                                
CHAIR  COGHILL asked  how  many  bills on  this  topic are  going                                                               
through the process.                                                                                                            
                                                                                                                                
3:43:29 PM                                                                                                                    
REPRESENTATIVE TUCK  said this  is the  fourth bill  that updates                                                               
portions of Title 26 and they're all in the Senate.                                                                             
                                                                                                                                
SENATOR  SHOWER  asked if  Alaska's  defense  forces have  had  a                                                               
chance  to review  the bill  and ensure  that it  matches federal                                                               
law.                                                                                                                            
                                                                                                                                
MS. KLOSTER  said the sponsor has  gotten a lot of  help drafting                                                               
the bill from  Captain Blake Circle and  Lieutenant Colonel Chris                                                               
Weaver. They have been an integral part of making the bill work.                                                                
                                                                                                                                
SENATOR  COSTELLO referenced  the  controlled  substance list  in                                                               
subsection  (d) on  page  18, line  26, and  asked  if Ambien  is                                                               
included in the  list. It's a federal Schedule I  drug to improve                                                               
sleep  that  has been  found  to  cause sleepwalking  and  sleep-                                                               
driving.                                                                                                                        
                                                                                                                                
3:46:05 PM                                                                                                                    
CAPTAIN BLAKE  CIRCLE, Alaska Army National  Guard, JBER, Alaska,                                                               
stated that  Ambien would be covered  under the bill if  it falls                                                               
within the federal schedule.                                                                                                    
                                                                                                                                
SENATOR SHOWER asked  if they found that the  changes proposed by                                                               
HB 307  match the  federal Uniform Code  of Military  Justice and                                                               
mesh with the Alaska Constitution.                                                                                              
                                                                                                                                
CAPTAIN  CIRCLE  said there  were  concerns  when the  ACMJ  went                                                               
through  originally,  but this  time  he  didn't find  any  major                                                               
differences. It largely matches the federal code.                                                                               
                                                                                                                                
3:48:02 PM                                                                                                                    
CHAIR COGHILL  asked the sponsor  if he'd heard any  criticism of                                                               
the bill.                                                                                                                       
                                                                                                                                
REPRESENTATIVE TUCK  said no. There  was some  discussion related                                                               
to Senator Costello's question and everyone was comfortable.                                                                    
                                                                                                                                
MS. KLOSTER said a committee  substitute is forthcoming to ensure                                                               
the  bill aligns  with current  statute. She  noted that  she had                                                               
been working through the chair's office.                                                                                        
                                                                                                                                
3:49:18 PM                                                                                                                    
CHAIR COGHILL held HB 307 in committee.                                                                                         
                                                                                                                                
          HB  20-SOLEMNIZE MARRIAGE: ELECTED OFFICIALS                                                                      
                                                                                                                                
3:49:42 PM                                                                                                                    
CHAIR  COGHILL  announced  the  consideration  of  HB  20.  [CSHB                                                               
20(JUD) was before the committee.]                                                                                              
                                                                                                                                
3:50:30 PM                                                                                                                    
SARA  PERMAN, Staff,  Representative  Matt  Claman, Alaska  State                                                               
Legislature, Juneau,  Alaska introduced  HB 20  on behalf  of the                                                               
sponsor reading the following statement:                                                                                        
                                                                                                                                
     In financially  challenging times  like we  face today,                                                                    
     I'm  reminded   that  part  of  our   role  as  elected                                                                    
     officials  is to  reduce red  tape and  make government                                                                    
     accessible  to the  public. In  introducing this  bill,                                                                    
     I'd like to make  marriage more easily accessible. This                                                                    
     bill  will   allow  couples  to  have   their  marriage                                                                    
     solemnized directly by elected  officials. It allows it                                                                    
     to be a  friendly face of government  while providing a                                                                    
     service to the public.  Being able to perform marriages                                                                    
     would be a privilege and  we'd be fortunate to have the                                                                    
     opportunity. Finally,  the bill  puts into  statute the                                                                    
     constitutional  principle  that religious  figures  and                                                                    
     others cannot be compelled to perform marriages.                                                                           
                                                                                                                                
     House  Bill  20  amends  Alaska marriage  code  to  add                                                                    
     language  that allows  marriages  to  be solemnized  by                                                                    
     elected officials in the state of Alaska.                                                                                  
                                                                                                                                
     Section 1  amends Alaska Statute  20.05.261(a) relating                                                                    
     to  who  may  solemnize   a  marriage.  Currently,  the                                                                    
     statute  only allows  for marriage  solemnization by  a                                                                    
     religious official  which includes  ministers, priests,                                                                    
     rabbis or commissioned officers  of the Salvation Army,                                                                    
     marriage   commissioner  or   judicial  officer   or  a                                                                    
     religious organization  or congregation. House  Bill 20                                                                    
     adds language to add to  the list an individual holding                                                                    
     an elective office in the state.                                                                                           
                                                                                                                                
     Section 2  adds a  new subsection  to the  same statute                                                                    
     that says that no  religious official, organization, or                                                                    
     elected   official  that   is  authorized   to  perform                                                                    
     marriages is obligated to do so.                                                                                           
                                                                                                                                
     Section 3 broadens the  circumstances covered by Alaska                                                                    
     Statute 25.05.281, marriage  by an unauthorized person.                                                                    
     If  a   person  falsely  claiming  to   be  an  elected                                                                    
     official, solemnizes  a marriage  and that  marriage is                                                                    
     consummated  on the  belief that  the individuals  have                                                                    
     been   lawfully   married,   the  marriage   is   still                                                                    
     considered valid.                                                                                                          
                                                                                                                                
     The  purpose   of  this  bill   is  to   make  marriage                                                                    
     accessible to all Alaskans.  We recognize that marriage                                                                    
     opens doors for people. There  are over 1,100 places in                                                                    
     federal laws  and programs where being  married expands                                                                    
     an   individual's   opportunities.  Examples   include:                                                                    
     access  to  health  care for  one's  spouse  or  having                                                                    
     eligibility  for  family  medical  leave.  Frankly,  we                                                                    
     believe  that this  bill is  a  family-first bill  that                                                                    
     allows  people to  receive  greater  benefits that  are                                                                    
     good for all Alaskans.                                                                                                     
                                                                                                                                
     Additionally,  House   Bill  20  also   allows  elected                                                                    
     officials to be good  stewards of government. It allows                                                                    
     elected  officials to  interact on  a one-on-one  basis                                                                    
     with constituents,  providing a service that  will have                                                                    
     a  lasting  impact   on  constituents'  lives.  Whereas                                                                    
     couples can currently have  anyone solemnize a marriage                                                                    
     through a  marriage commissioner appointment,  there is                                                                    
     a  $25  fee and  the  process  can be  time  consuming.                                                                    
     Having  an   elected  official  available   provides  a                                                                    
     simple,  cost-free  outlet.  This  may  also  apply  to                                                                    
     couples  who may  not be  affiliated with  a particular                                                                    
     religious organization.  They would be able  to have an                                                                    
     elected official  perform their wedding  without having                                                                    
     to go through  the process of arranging  for a marriage                                                                    
     commissioner  appointment.  In  smaller town  or  rural                                                                    
     areas with limited resources,  this change provides one                                                                    
     more  outlet for  marriage solemnization.  For example,                                                                    
     if a couple  in a remote Alaskan village are  set to be                                                                    
     married and  the minister becomes ill,  the mayor could                                                                    
     step in on short notice.                                                                                                   
                                                                                                                                
     With that,  I'll stress nothing  in this  bill mandates                                                                    
     the  elected  officials  must solemnize  marriage.  And                                                                    
     I'll  also  note  that the  Department  of  Health  and                                                                    
     Social  Services has  assigned  a zero  fiscal note  to                                                                    
     this bill.  This bill actually  may remove  the expense                                                                    
     of citizens who otherwise pay  a $25 fee for a marriage                                                                    
     commissioner appointment.                                                                                                  
                                                                                                                                
3:54:00 PM                                                                                                                    
SENATOR SHOWER asked  her to clarify the  provision regarding the                                                               
validity of a marriage solemnized by an unauthorized person.                                                                    
                                                                                                                                
MS. PERMAN  said her understanding is  that if a person  does not                                                               
have the authority  to conduct a marriage but  the people getting                                                               
married were  unaware of  that fact, the  state would  accept the                                                               
marriage  as  valid once  it  was  consummated. That  is  current                                                               
statute  and   the  bill  adds  elected   officials.  If  someone                                                               
erroneously believed  an individual  was an elected  official and                                                               
had  the  authority  to  perform  a  marriage,  the  state  would                                                               
recognize that marriage once it was consummated.                                                                                
                                                                                                                                
CHAIR  COGHILL  noted the  ongoing  debate  about who  should  be                                                               
allowed to marry,  and expressed appreciation that  the bill does                                                               
not create a duty or obligation to perform a marriage.                                                                          
                                                                                                                                
3:56:01 PM                                                                                                                    
MS.  PERMAN advised  that the  bill is  in response  to the  2015                                                               
Supreme  Court  ruling  that the  First  Amendment  ensures  that                                                               
religious organizations  and persons are given  proper protection                                                               
to decline to perform a marriage.                                                                                               
                                                                                                                                
CHAIR   COGHILL   asked   the  court   representative   if   that                                                               
interpretation was correct.                                                                                                     
                                                                                                                                
UNIDENTIFIED PERSON  in the audience  confirmed that  judges must                                                               
marry people.                                                                                                                   
                                                                                                                                
CHAIR COGHILL  summarized that court officials  must marry people                                                               
but everyone else may marry people.                                                                                             
                                                                                                                                
3:57:00 PM                                                                                                                    
CHAIR COGHILL held HB 20 for future consideration.                                                                              
                                                                                                                                
3:57:18 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         SB 195-PF DIVIDEND FUND TRANSFERS;CRIMES;VICTIMS                                                                   
                                                                                                                                
3:59:00 PM                                                                                                                    
CHAIR   COGHILL  reconvened   the  meeting   and  announced   the                                                               
consideration of SB 195.                                                                                                        
                                                                                                                                
3:59:50 PM                                                                                                                    
BUDDY  WHITT,   Staff,  Senator  Shelley  Hughes,   Alaska  State                                                               
Legislature, Juneau,  Alaska, stated that  SB 195 is  designed to                                                               
assist  crime  victims.  It  is  a  companion  bill  to  HB  216,                                                               
sponsored  by  Representative  Chuck   Kopp.  He  introduced  the                                                               
legislation speaking to the following sponsor statement:                                                                        
                                                                                                                                
     The Alaska State Constitution  recognizes the rights of                                                                    
     crime   victims   through   Article  I,   Section   24.                                                                    
     Restitution is one of  those rights. Unfortunately, the                                                                    
     outstanding   balance   of  court-ordered   restitution                                                                    
     payments to victims has remained  very high and victims                                                                    
     find themselves  waiting for  several years  to receive                                                                    
     payments.  The current  balance  of outstanding  court-                                                                    
     ordered restitution is over $80 million.                                                                                   
                                                                                                                                
     There  is a  mechanism in  place to  assist victims  of                                                                    
     crime  through the  criminal  fund  established by  the                                                                    
     Legislature  in 1988  (HB245), but  over time,  most of                                                                    
     the funds have  been used to pay  for inmate healthcare                                                                    
     costs and the  amount to assist victims  has fallen off                                                                    
     sharply.  SB  195 seeks  to  restore  a balance,  clear                                                                    
     ambiguities,  and  prioritize  restoring victims  to  a                                                                    
     pre-offense condition.                                                                                                     
                                                                                                                                
     In  1988,  HB  245   made  certain  criminal  offenders                                                                    
     ineligible  to receive  a Permanent  Fund Dividend  and                                                                    
     stated intent  language that the money  that would have                                                                    
     gone to  the offenders would  go to support  victims of                                                                    
     crimes  by  funding  the  Violent  Crimes  Compensation                                                                    
     Board. Since establishment of  the criminal fund, there                                                                    
     have been statutory changes  to eligible recipients and                                                                    
     victims of crimes are no longer a priority.                                                                                
                                                                                                                                
     Senate Bill  195 [and companion HB  216] establishes an                                                                    
     account  titled  the  Restorative Justice  Account.  It                                                                    
     prioritizes  the  use  of the  funds  for  compensation                                                                    
     through  the  Violent  Crimes  Compensation  Board  and                                                                    
     enables the  Office of Victims'  Rights to  qualify for                                                                    
     appropriations from  this fund  and authorizes  them to                                                                    
     pay  court-ordered  restitution  to victims  of  crimes                                                                    
     when  a   victim  has   exhausted  all   other  avenues                                                                    
     available. This  bill does not eliminate  an offender's                                                                    
     liability  to pay  restitution, fines,  and other  fees                                                                    
     imposed to  them through  the criminal  justice system.                                                                    
     Senate Bill 195 also adds  a mechanism for Alaskan's to                                                                    
     donate to the crime  victims  compensation fund through                                                                    
     the Pick.Click.Give. Program.                                                                                              
                                                                                                                                
     Additionally,  Senate  Bill  195  extends  the  opt-out                                                                    
     period of  victims from  30 to  90 days  from receiving                                                                    
     help from  the State  of Alaska to  collect restitution                                                                    
     and  adds language  authorizing  use of  the funds  for                                                                    
     substance   abuse  and   mental  health   services  for                                                                    
     offenders.                                                                                                                 
                                                                                                                                
     Senate Bill 195 will  reestablish victim restitution as                                                                    
     our highest priority.                                                                                                      
                                                                                                                                
MR.  WHITT said  a current  report from  the Council  on Domestic                                                               
Violence and Sexual Assault (CDVSA)  indicates that 59 percent of                                                               
adult  women  in Alaska  have  experienced  domestic violence  or                                                               
sexual violence  in their  lifetime. Alaska  ranks number  one in                                                               
the  country  in this  regard  and  compensation claims  increase                                                               
every  year. The  2017 Violent  Crimes Compensation  Board (VCCB)                                                               
report shows that a majority  of victims compensated through VCCB                                                               
funds  are women  and children.  Most  of the  children that  are                                                               
compensated through  the fund are  victims of sexual  assault and                                                               
sexual abuse.                                                                                                                   
                                                                                                                                
He explained that compensation is  intended to meet the immediate                                                               
needs  associated  with   the  individual's  victimhood,  whereas                                                               
restitution occurs after  a conviction and is  established by the                                                               
court.  A   recent  report  shows   there  is  $129   million  in                                                               
outstanding  restitution  payments. Before  2010,  appropriations                                                               
from  the criminal  fund  were split  evenly  between victims  of                                                               
crime and  other eligible entities.  Since then, the  majority of                                                               
funds  appropriated  from the  criminal  fund  have gone  to  the                                                               
Department  of  Corrections  to   pay  for  medical  services  of                                                               
inmates.  Less  than  15  percent goes  to  the  compensation  of                                                               
victims.  Both the  sponsor  of SB  195 and  the  sponsor of  the                                                               
companion bill, HB 216, want  to ensure that victims and victims'                                                               
compensation are protected moving forward.                                                                                      
                                                                                                                                
4:06:48 PM                                                                                                                    
CHAIR COGHILL asked Mr. Giorgana if he had anything to add.                                                                     
                                                                                                                                
4:07:15 PM                                                                                                                    
ERIC CORDERO  GIORGANA, Staff, Representative Chuck  Kopp, Alaska                                                               
State  Legislature,  Juneau,  Alaska,  stated that  HB  216,  the                                                               
companion to SB 195, recently  passed the House Finance Committee                                                               
and will hopefully reach the  floor very soon. These bills return                                                               
to  the legislative  intent  that created  the  criminal fund  in                                                               
1988.  It  was meant  to  compensate  crime victims  through  the                                                               
Violent Crimes  Compensation Board.  Currently, about  99 percent                                                               
of the fund is used to pay  for inmate health care. He noted that                                                               
a few  years ago former  Senator Fred Dyson introduced  a similar                                                               
bill that passed the Senate unanimously.                                                                                        
                                                                                                                                
CHAIR COGHILL  said he  wanted the full  committee to  be present                                                               
when the fiscal note is discussed.                                                                                              
                                                                                                                                
4:08:50 PM                                                                                                                    
CHAIR COGHILL held SB 195 in committee for future consideration.                                                                
                                                                                                                                
4:09:31 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Coghill  adjourned the Senate Judiciary  Standing Committee                                                               
meeting at 4:09 p.m.                                                                                                            

Document Name Date/Time Subjects
HB 20 - Sectional Summary (ver. O).pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Sponsor Statement.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Summary of Changes.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Letter of Opposition - Alaska Family Action.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Letter of Support - Alaskans Together for Equality.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Letter of Support - Alaska Family Council.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Letter of Support - Martin Eldridge.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
HB 20 - Letters of Support - Various Emails.pdf SJUD 4/11/2018 1:30:00 PM
HB 20
SB 76 - Summary of Changes (ver. T to ver. M).pdf SJUD 4/11/2018 1:30:00 PM
SB 76
SB 76 - Sectional Summary (ver. M).PDF SJUD 4/11/2018 1:30:00 PM
SB 76
SB 76 - Sponsor Statement.pdf SJUD 4/11/2018 1:30:00 PM
SB 76
SB 76 - Supporting Documents - Letters of Support.pdf SJUD 4/11/2018 1:30:00 PM
SB 76
SB 76 - Supporting Document - Population Limits March 2018.pdf SJUD 4/11/2018 1:30:00 PM
SB 76
SB 76 - Support Document - Public Convenience Fact Sheet.pdf SJUD 4/11/2018 1:30:00 PM
SB 76
SB 76 - Presentation - Senate JUD.pdf SJUD 4/11/2018 1:30:00 PM
SB 76
SB 195 - Sectional Summary (ver. A).pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Sponsor Statement.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - Criminal Fund Use Over the Years With Percentages.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - Difference Between Restitution and Compensation.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - FY14 Felons Memo.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - FY15 Felons Memo.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - FY16 Felons Memo.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - FY17 Felons Memo.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - FY18 Felons Memo.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - HB 245 from 1988.pdf SJUD 4/11/2018 1:30:00 PM
HB 245
SB 195
SB 195 - Supporting Document - PowerPoint Presentation.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - Restitution Statistics from ACS.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - Victim Restitution Funds Update Research.pdf SJUD 4/11/2018 1:30:00 PM
SB 195
SB 195 - Supporting Document - Victim Restitution Reform in Other States Research.pdf SJUD 4/11/2018 1:30:00 PM
SB 195