02/25/2010 02:02 PM Senate L&C
| Audio | Topic |
|---|---|
| Start | |
| SB234 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 25, 2010
2:02 p.m.
MEMBERS PRESENT
Senator Joe Paskvan, Chair
Senator Joe Thomas, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Con Bunde
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 279
"An Act relating to regulation of residential mortgage lending,
including the licensing of mortgage lenders, mortgage brokers,
and mortgage loan originators, and compliance with certain
federal laws relating to residential mortgage lending; and
providing for an effective date."
- SCHEDULED BUT NOT HEARD
SENATE BILL NO. 234
"An Act extending the termination date of the Alcoholic Beverage
Control Board; and providing for an effective date."
- MOVED SB 234 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 234
SHORT TITLE: EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD
SPONSOR(s): SENATOR(s) MEYER
01/22/10 (S) READ THE FIRST TIME - REFERRALS
01/22/10 (S) L&C, FIN
02/25/10 (S) L&C AT 2:00 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
PAT DAVIDSON, Legislative Auditor
Division of Legislative Audit
Legislative Affairs Agency
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Answered questions on SB 234.
SHIRLEY GIFFORD, Executive Director
Alcohol Beverage Control Board (ABC Board)
POSITION STATEMENT: Answered questions on SB 234.
ACTION NARRATIVE
2:02:36 PM
CHAIR JOE PASKVAN called the Senate Labor and Commerce Standing
Committee meeting to order at 2:02 p.m. Present at the call to
order were Senators Meyer, Thomas, and Paskvan.
SB 234-EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD
2:02:49 PM
CHAIR JOE PASKVAN announced SB 234 to be up for consideration.
2:03:42 PM
SENATOR CON BUNDE joined the committee.
SENATOR KEVIN MEYER, sponsor of SB 234, said it extends the
Alcoholic Beverage Control Board (ABC Board) for one year. He
said in August 2009, the Legislative Budget and Audit Committee
(LB&A) findings presented by Auditor Pat Davidson recommended
the ABC Board should continue to regulate the manufacture, sale,
barter and possession of alcohol beverages in Alaska in order to
protect the public health, safety and welfare. He said the board
has demonstrated a need for its continuance by providing
protection to the general public through the issuance and
renewal and suspension of liquor licenses. Protection had also
been provided through active investigation of suspected
licensing violations and enforcement of state's alcoholic
beverage control laws and regulations.
SENATOR MEYER said during the review process in LB&A, concerns
were raised about the decision to move the ABC Board from the
Department of Revenue (DOR) to the Department of Public Safety
(DPS), because it might not be working as it was expected there.
Some even thought it should be in the Department of Commerce,
Community and Economic Development (DCCED).
2:05:27 PM
SENATOR DAVIS joined the committee.
2:05:36 PM
SENATOR MEYER said the issue is if the board should remain in
the DPS, and a one-year extension would give people time to work
with the members of industry and the ABC Board to review that
decision.
2:06:50 PM
SENATOR BUNDE asked if the sunset is extended to the audit-
suggested date, couldn't they still decide to move the board or
was the one-year sunset being used as an impetus to speed up
that decision.
SENATOR MEYER said it might be awkward to extend it for four
more years, but yet in two years move it from the DPS. The one-
year extension would force the legislature to deal with the
issue by next year. If nothing was done by then, they could just
go with the audit's four-year recommendation.
SENATOR BUNDE asked if a decision wasn't made in the next year,
would the board be phased out. "Is this kind of an empty
threat?"
SENATOR MEYER answered no; they didn't want to phase it out by
any means.
CHAIR PASKVAN said it is not his intent to phase it out.
2:09:02 PM
PAT DAVIDSON, Legislative Auditor, Division of Legislative
Audit, Legislative Affairs Agency, recalled the question of
moving the board coming up at the Budget and Audit meeting.
Members asked if the audit considered that additional analysis
needed to be done on the location issue. She had to tell them
no. She wasn't necessarily directed to do any additional audit
work, but the discussion about the extension went more to
whether additional analysis was needed.
SENATOR BUNDE said he knows her shop works hard in coming up
with these recommendations, and he didn't want to make them go
over it again next year. Whether the board should move is a
legitimate question, but it is a policy call and that shouldn't
fall in the scope of an audit. He wondered if limiting the
extension to just one year is illusionary.
SENATOR THOMAS said he hadn't thought much about what their
location means one way or the other, but he asked if there is
concern that their location influences their role or how they
perceive their functions.
MS. DAVIDSON replied that wasn't an audit issue, so she didn't
have a very good answer; but the question had come up.
2:12:13 PM
SENATOR THOMAS said he had other questions about the audit and
wanted to know if this was the appropriate time to bring them
up.
CHAIR PASKVAN said they intend to explore all the issues over
the Interim and then address them on a more global scale one
year from now.
SENATOR THOMAS said the audit indicated recurring issues had not
been addressed and asked when those would be resolved.
MS. DAVIDSON responded that the audit observed that all the
progress that has been made was made basically when the new
executive director came on board. The agency's response to the
audit identified the actions it is taking, but it didn't provide
timeframes.
SENATOR DAVIS said she agreed with Senator Bunde about the
policy call, but she wanted to go with the audit's
recommendation of a four-year extension.
SENATOR MEYER said the audit's recommendations would remain in
place whether the board was extended for one year or four. They
didn't want another audit done, but wanted time to look at
changing policy.
2:17:37 PM
SENATOR BUNDE asked Ms. Gifford if she saw any merit in
extending the sunset for only one year. Was it to push the board
or the legislature to make the location decision?
SHIRLEY GIFFORD, Executive Director, Alcohol Beverage Control
Board (ABC Board), said she didn't feel pushed by the
legislature, but by the three different audits that found things
that needed to be fixed. One was getting a law enforcement plan
and a 10-year strategic plan in place; another was having a
written policies and procedures manual which they have done.
She thought the rest of the recommendations, like a desk manual
for the administrative assistant, could be fulfilled in short
order. Her opinion about where the ABC Board resides was that it
works really well in the DPS. They have five investigators for
the entire state of Alaska and 1800 licensees, and can't do it
alone. She explained that the board partners with the State
Troopers and has good relationships with the local police
departments. However, she pointed out that she had not worked
under the Department of Revenue.
SENATOR BUNDE asked if a one-year sunset date adds to their
workload or not.
MS. GIFFORD replied that she didn't know. It might speed things
up a little bit, but on things that need to get done anyhow.
SENATOR DAVIS remarked even extending it to 2011, there is
always one year after a sunset for a board to phase out.
CHAIR PASKVAN, finding no further comments, closed public
testimony.
SENATOR DAVIS said she didn't have a problem with moving the
board, but asked who wanted it moved.
SENATOR MEYER said it was brought up by the LB&A committee.
2:25:15 PM
CHAIR PASKVAN congratulated Ms. Gifford on the positive
improvements the board had made with resolving its issues under
her guidance.
2:25:33 PM
SENATOR THOMAS moved to advance SB 234 from committee with
individual recommendations and attached fiscal note(s).
SENATOR BUNDE objected because he said he has a low tolerance
for busy work, and it appears to him extending the board for
just one year won't make the ABC Board to do anything, but
rather puts pressure on the legislature to do something; and
remarked words to the affect that if we're going to do
something, let's do it and not make life difficult for a hard-
working agency that they are not going to eliminate.
A roll call vote was taken: Senators Meyer, Davis, Thomas, and
Paskvan voted yea; Senator Bunde voted nay. Therefore, SB 234
moved from committee.
2:27:37 PM
Finding no further business to come before the committee, Chair
Paskvan adjourned the meeting at 2:27 p.m.
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