Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/09/2015 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB149 | |
| SB61 | |
| SB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 61 | TELECONFERENCED | |
| *+ | SB 99 | TELECONFERENCED | |
| + | HB 149 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 9, 2015
1:30 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Cathy Giessel, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
Senator Johnny Ellis
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 149 am
"An Act relating to an amendment of the articles of
incorporation of certain Native corporations to establish a
lower quorum requirement for shareholder meetings."
- HEARD AND HELD
SENATE BILL NO. 61
"An Act establishing a museum construction grant program in the
Department of Commerce, Community, and Economic Development."
- HEARD AND HELD
SENATE BILL NO. 99
"An Act relating to alcoholic beverages; relating to the
regulation of manufacturers, wholesalers, and retailers 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; relating to the offense of minor consuming; relating
to revocation of a driver's license for a minor consuming
offense; relating to the effect of the revocation of a driver's
license for a minor consuming offense on a motor vehicle
liability insurance policy; and providing for an effective
date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 149
SHORT TITLE: NATIVE CORP. ART. AMENDMENTS
SPONSOR(s): REPRESENTATIVE(s) PRUITT
03/18/15 (H) READ THE FIRST TIME - REFERRALS
03/18/15 (H) CRA
03/26/15 (H) CRA AT 8:00 AM BARNES 124
03/26/15 (H) Heard & Held
03/26/15 (H) MINUTE(CRA)
03/28/15 (H) CRA AT 10:00 AM BARNES 124
03/28/15 (H) Moved HB 149 Out of Committee
03/28/15 (H) MINUTE(CRA)
03/30/15 (H) CRA RPT 4DP 1NR
03/30/15 (H) DP: DRUMMOND, NAGEAK, SEATON, TILTON
03/30/15 (H) NR: HUGHES
04/02/15 (H) TRANSMITTED TO (S)
04/02/15 (H) VERSION: HB 149 AM
04/03/15 (S) READ THE FIRST TIME - REFERRALS
04/03/15 (S) L&C
04/09/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 61
SHORT TITLE: MUSEUM CONSTRUCTION GRANT PROGRAM
SPONSOR(s): SENATOR(s) STEVENS
02/25/15 (S) READ THE FIRST TIME - REFERRALS
02/25/15 (S) L&C, FIN
04/09/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 99
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
SPONSOR(s): SENATOR(s) MICCICHE
04/07/15 (S) READ THE FIRST TIME - REFERRALS
04/07/15 (S) L&C, JUD
04/09/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
REPRESENTATIVE LANCE PRUITT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 149.
ALLEN TODD, General Counsel
Doyon, Limited
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 149 am.
CINDY ALLRED, Deputy Director
ANCSA Regional Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 149 am.
NICHOLA RUEDY, Director
Alaska Native Village Corporation Association (ANVCA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 149 am.
AARON SHUTTS, President
Doyon, Limited
Fairbanks, Alaska
POSITION STATEMENT: Testified that Doyon, Limited supports HB
149 am.
DOUG LETCH, Staff
Senator Gary Stevens
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 61 on behalf of the sponsor.
JAMES BROOKS, Board Member
Alaska Historical Society
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 61.
KATHERINE ELDEMAR, Director
Division of Community and Regional Affairs (DCRA)
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified to the role DCRA plays in the
grant program.
FRED PARADY, Deputy Commissioner
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Provided supporting testimony for SB 61.
JANET DAVIS
Grants Manager
Division of Community and Regional Affairs (DCRA)
Department of Commerce, Community and Economic Development
Fairbanks, Alaska
POSITION STATEMENT: Provided supporting testimony for SB 61.
PATRICIA RELAY, Executive Director
Valdez Museum & Historical Archive
Valdez, Alaska
POSITION STATEMENT: Testified in support of SB 61.
ANJULI GRANTHAM, Curator of Collections and Exhibits
Baranov Museum
Kodiak, Alaska
POSITION STATEMENT: Testified in support of SB 61.
MICHELE MILLER, Member
Pratt Museum Board of Directors
Homer Alaska
POSITION STATEMENT: Testified in support of SB 61.
BETHANY BUCKINGHAM-FOLLETT, Curator
Dorothy G. Page Museum
Wasilla, Alaska.
POSITION STATEMENT: Testified in support of SB 61.
EVA MALVICH, Director/Curator
Yupiit Piciryarait Museum
Bethel, Alaska
POSITION STATEMENT: Testified in support of SB 61.
SENATOR PETER MICCICHE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 99.
BOB KLINE, Chair
Alcoholic Beverage Control (ABC) Board
Anchorage, Alaska
POSITION STATEMENT: Responded to questions and provided
information related to SB 99.
JEFF JESSE, Chief Executive Officer
Alaska Mental Health Authority
Anchorage, Alaska
POSITION STATEMENT: Delivered a PowerPoint outlining the Title
4 proposed revisions included in SB 99.
ACTION NARRATIVE
1:30:55 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:30 p.m. Present at the call to
order were Senators Giessel, Ellis, Meyer, and Chair Costello.
HB 149-NATIVE CORP. ART. AMENDMENTS
1:31:59 PM
CHAIR COSTELLO announced the consideration of HB 149. "An Act
relating to an amendment of the articles of incorporation of
certain Native corporations to establish a lower quorum
requirement for shareholder meetings."
1:32:04 PM
REPRESENTATIVE LANCE PRUITT, sponsor of HB 149, stated that the
legislation was at the request of the Native Corporation, Doyon,
Limited. He introduced the legislation speaking to the following
sponsor statement:
Passage of HB 149 am seeks to allow Alaska Native
Corporations (ANCs) to lower their quorum requirement
for future meetings by reducing the voter approval
needed to amend their articles of incorporation.
AS 10.06.415 allows a corporation to reduce its quorum
to one-third of the shares eligible to vote by
amending its articles of incorporation. Because nearly
all ANCs were formed before July 1, 1989, the standard
for amending their articles of incorporation is
approval by two-thirds of the shares eligible to vote.
For most other Alaska corporations formed after July
1, 1989 the standard is a majority of the shares
eligible to vote. Many Alaska Native Corporations do
not achieve a quorum of two-thirds, thus amendment of
the articles of incorporation is virtually impossible
as a practical matter.
There is a substantial cost to rescheduling or
postponing an annual meeting because of a failure to
obtain a quorum. Most ANCs have seen a downward trend
over time in the quorum achieved at their annual
meeting, as shares are passed on through inheritance
and new shareholders become more geographically
dispersed. Many ANCs need to be able to amend their
articles of incorporation to provide for a lower
quorum, such as the one-third quorum permitted by AS
10.06.415. However, lowering the quorum will require
the amendment of ANC articles by a reasonably
achievable standard.
HB 149 am amends 10.06.960 to allow ANCs incorporated
under former AS 10.05 before July 1, 1989 to amend
their articles of incorporation to reduce the quorum
requirements for a meeting of shareholders to one-
third of the outstanding shares entitled to vote at a
meeting, represented in person or by proxy.
REPRESENTATIVE PRUITT noted that Doyon, Limited spent $100,000
to achieve a quorum of 55.9 percent for their last meeting.
SENATOR STEVENS observed that this problem will be exacerbated
as time goes on because lots of corporation members reside
outside the state. He asked for clarification of the one-third
and two-thirds requirements to achieve a quorum and to change
the bylaws.
REPRESENTATIVE PRUITT explained that a Native corporation has
the option to change the quorum requirement to one-third. But to
make that change, 50 percent plus one of the members have to
attend the meeting and two-thirds of the attendees have to vote
in favor of the change. Quorum requirement is the only article
of incorporation that can be changed under HB 149.
1:42:14 PM
CHAIR COSTELLO asked if there has been public opposition to the
legislation.
REPRESENTATIVE PRUITT answered yes; some people have concerns
about the dynamic between shareholders and corporation
leadership. Some shareholders also expressed concern that this
allows management to cut the shareholder out. The House floor
amendment addressed that concern by raising the bar to two-
thirds affirmative votes to make the quorum change. Sealaska
Corporation has indicated it doesn't intend to use this option,
but it does apply to all Native corporations established under
the Alaska Native Claims Settlement Act (ANCSA).
1:44:36 PM
SENATOR GIESSEL asked how proxies are handled.
REPRESENTATIVE PRUITT deferred the question to a Doyon
representative.
SENATOR MEYER asked if shareholders can participate via Skype,
FaceTime or the telephone.
REPRESENTATIVE PRUITT deferred the question to a Doyon
representative.
CHAIR COSTELLO asked him to review the fiscal note.
1:47:01 PM
REPRESENTATIVE PRUITT said the bill has no cost attached. It
changes statute that applies only to Native corporations and is
optional.
CHAIR COSTELLO opened public testimony.
1:47:31 PM
ALLEN TODD, General Counsel, Doyon, Limited, Fairbanks, Alaska,
addressed the question about participating in an annual meeting
via Skype or some other remote method. He explained that Doyon
meetings are webcast so shareholders can watch and participate,
but they aren't able to vote. A proxy is how they vote for a
proposition that has been sent out or how they vote to elect
members of the board of directors.
SENATOR STEVENS asked what the requirement is to change the
bylaws.
MR. TODD explained that for any corporation organized prior to
1989 that doesn't already have a specific provision in its
articles, a two-thirds vote is required of all the shares
eligible to vote. The Doyon board of directors can vote on a
change to its bylaws, but the measure has to be ratified by the
shareholders at the next annual meeting. That requires a
majority of the shares eligible to vote.
SENATOR STEVENS asked if this legislation only changes the
number of votes required to call a meeting.
MR. TODD explained that the bill allows a Native corporation
incorporated before July 1, 1989 to amend its articles of
incorporation to reduce the quorum required to hold a meeting to
one-third of the outstanding shareholders. The amendment may be
adopted by an affirmative vote of two-thirds of the shares
represented at an annual meeting at which a valid quorum is
present.
SENATOR STEVENS asked if Doyon has had trouble getting a quorum
for an annual meeting.
MR. TODD said that in his 17-year tenure the lowest quorum for
an annual meeting was 53 percent, but the records indicate that
the corporation wasn't able to achieve 50 percent in the late
1970s and early 1980s.
SENATOR STEVENS asked if an out migration of shareholders might
become a larger problem in the future.
MR. TODD confirmed that Doyon shareholders are moving out of
villages and outside the state of Alaska.
1:57:08 PM
CINDY ALLRED, Deputy Director, Alaska Native Claims Settlement
Act (ANCSA) Regional Association, Anchorage, Alaska, testified
in support of HB 149 am to establish a lower quorum requirement
for annual shareholder meetings for certain Native corporations.
This would help to stem the five-year trend showing a marked
decline in voter turnout. She noted that while shares in these
corporations are limited, the shareholder base is expanding due
to inheritance and broadening eligibility requirements. Data
shows that younger shareholders and those living out of state
are less likely to turn out to vote than older shareholders
living in the region and those demographics are growing. Efforts
to increase participation through prizes and other incentives
only offer incremental improvements. HB 149 offers an
opportunity to address this impending problem by changing the
current law to allow Native corporations to amend their articles
of incorporation to lower the quorum requirements. The ANCSA
Regional Association members voted unanimously to support the
change.
2:02:09 PM
NICHOLA RUEDY, Director, Alaska Native Village Corporation
Association (ANVCA), Anchorage, Alaska, stated that the nine
ANVCA board members support HB 149. She explained that ANVCA is
a nonprofit organization whose mission is to provide services
that will improve the efficiency, profitability and stability of
its member village corporations and help shareholders succeed.
The ANVCA membership is made up of representatives from village
corporations that work collaboratively to contribute to the
future health of these groups by sharing knowledge and
resources. She related that HB 149 would help village
corporations and regional corporations address challenges in
terms of voter turnout by allowing them to change their articles
of incorporation related to quorum requirements.
2:03:37 PM
AARON SHUTT, President, Doyon, Limited, testified that Doyon
supports HB 149. He offered to answer questions.
2:04:08 PM
CHAIR COSTELLO closed public testimony and announced she would
hold HB 149 for further consideration.
SB 61-MUSEUM CONSTRUCTION GRANT PROGRAM
2:04:44 PM
CHAIR COSTELLO announced the consideration of SB 61. "An Act
establishing a museum construction grant program in the
Department of Commerce, Community, and Economic Development."
She noted the new fiscal note.
2:05:05 PM
DOUG LETCH, Staff, Senator Gary Stevens, introduced SB 61 on
behalf of the sponsor. He noted that this is companion
legislation to HB 52. He spoke to the following sponsor
statement:
Senate Bill 61 establishes a matching grant program in
the Department of Commerce, Community and Economic
Development for eligible museum construction,
expansion, and major renovation projects. Language in
the bill is similar to the existing program for
libraries.
Under provisions of SB 61
• A person in charge of construction, expansion, or
major renovation of an eligible museum may apply to
the department for matching funds under regulations
adopted by the department.
• Subject to appropriation, the department would award
not more than 50 percent of the total proposed grant
project costs to an eligible applicant.
• Museums are eligible for this program if they are
located in Alaska, entitled to receive state grant
funds, and provide matching funds from other sources
of at least 50 percent of the cost of the project.
Alaska is home to more than 60 museums and cultural
centers, located in more than 30 communities of
various sizes around the state. These facilities
connect our past to our future through stewardship of
local material, culture and history, while educating
Alaskans and visitors of all ages. Many also serve as
focal points for community life, providing a place for
neighbors to connect, collaborate, and strengthen
their sense of self and environment.
More than half of these museums anticipate undertaking
major capital improvement projects in the next five
years. Passage of Senate Bill 61 and any accompanying
appropriations will help them continue their important
work.
MR. LETCH said the sponsor is aware of the new fiscal note and
anticipates a committee substitute to coordinate SB 61 with the
companion legislation and reduce the fiscal note to zero.
CHAIR COSTELLO opened public testimony.
2:08:19 PM
JAMES BROOKS, board member, Alaska Historical Society, Juneau,
Alaska, testified in support of SB 61. He explained that he
enjoys traveling throughout the state and always tries to stop
in local museums. Many of these museums were built in 1967, the
centennial of Alaska's purchase, and haven't been updated since
then. SB 61 will make the updates happen. Everyone is a part of
history and the museums in this state do a good job of
preserving that history, he said.
2:09:37 PM
KATHERINE ELDEMAR, Director, Division of Community and Regional
Affairs (DCRA), Department of Commerce, Community and Economic
Development (DCCED), testified to the role DCRA plays in the
grant program paraphrasing from a prepared statement, which
reads as follows:
DCRA administers over $2 billion dollars in federal,
legislative, and state grants. DCRA grant
administrators are located in Juneau, Anchorage, and
Fairbanks and each grant administrator is responsible
for approximately 250 grants.
Should SB 61 become law, DCRA will be responsible for
the Museum Grant Program. It might appear that SB 61
would not have a fiscal impact on DCRA because
currently there is no grant funding attached to the
bill, but that presumption would be inaccurate.
Assuming SB 61 becomes law, DCRA foresees the impacts
to the Division will be similar to those experienced
when the Library Grant Program was created because the
two programs are statutorily similar. For instance,
DCRA will be required to create regulations for the
Museum Construction Grant Program. The creation of
regulations requires a number of procedural steps,
which includes public notice, and typically takes about
a year to complete.
Additionally, communities submitted grant applications
for their projects to DCRA for consideration despite
the lack of available funding. There is an effect in
that communities want to secure their place in the
queue for when funding does become available. DCRA
processed the applications and also rated the
applications. The applicants were then notified of
DCRA's rating of their application. However, since
there were no funds to award, DCRA was placed in the
unusual position of having completed its duties, but
despite all the efforts, no grant awards. It's
anticipated SB 61 for museums would likely result in
similar impacts to DCRA as was experienced with
libraries.
This red binder I am showing you is an actual library
grant request. As you can see the paperwork is
significant. This does not represent an award and
subsequent monitoring, which may take additional years
to complete. The work DCRA grant administrators must
complete is real. The grant application costs to
review, oversee, and store grant applications are real
- the impacts to DCRA are real.
DCRA has thus submitted its fiscal note to SB 61 to
help you, the decision makers, make the tough calls as
to where state money will be spent during these
challenging budget times. If SB 61 becomes law we ask
the legislature to fund DCRA sufficiently so we can
professionally assist our Alaskan communities with
their museum endeavors. The ability to absorb
additional programs has been curtailed by the
reductions in positions that are ongoing.
The expansion of the definition of museum under SB 61
is exciting. This expansion of the definition of museum
opens the door for many which were previously closed,
to showcase their wonderful and unique communities.
But, as with most things, it does take funding. DCRA
asks that if the legislature passes this bill that it
provide the staffing necessary for DCRA to be
successful in its administration.
MS. ELDEMAR explained that the language in the committee
substitute for the companion bill results in a zero fiscal note.
The amended language reads as follows:
The department may not accept an application for a
grant under this section unless the legislature makes
an appropriation for the grant program.
She explained that the intent of the foregoing language is
twofold. First, it allows the department to promulgate the rules
to put the regulations in place. More importantly, it will keep
the department from having to do the paperwork associated with a
grant application and administration until the funding becomes
available. She asked the sponsor to consider the same language
so the department could submit a zero fiscal note.
2:14:19 PM
FRED PARADY, Deputy Commissioner, Department of Commerce,
Community and Economic Development (DCCED), highlighted that the
department agreed to absorb the workload of promulgating
regulations in order to reach resolution of the fiscal note on
the companion bill to SB 61.
SENATOR STEVENS asked if the museums would be prioritized
according to need and if the department would do that work.
MS. ELDEMAR explained that the applications are rated as they
come in and follow a hierarchy thereafter. Of the applications
that qualify, some will have matching dollars while some will
not. She deferred further explanation to Ms. Davis.
2:15:54 PM
JANET DAVIS, Grants Manager, Division of Community and Regional
Affairs (DCRA), Department of Commerce, Community and Economic
Development (DCCED), Fairbanks, Alaska, added that a DCRA
application selection committee scores each application based on
the project description, impact to the community, the budget,
and the museum's administration and project management
abilities. The scores are averaged and the application is given
a rating and then forwarded to the commissioner's office. If
funding is available, the grants are awarded based on the
applicant's rating.
CHAIR COSTELLO asked Mr. Parady if the match funding model had
been successful in other infrastructure projects.
MR. PARADY answered yes; it is a good way to leverage resources
to get something done.
SENATOR MEYER asked if amending the bill to zero the fiscal note
would do away with the position that's referenced.
MR. PARADY answered yes. Applications would not be accepted and
handled until money was appropriated.
SENATOR MEYER asked if the position would be needed if money was
appropriated.
MR. PARADY said that question hasn't been resolved, but it would
be addressed once an appropriation was considered. Responding to
a further question, he relayed that the 1,929 grants that are
open in the department represent a five-year cycle.
2:21:06 PM
PATRICIA RELAY, Executive Director, Valdez Museum and Historical
Archive, Valdez, Alaska, testified in support of SB 61,
paraphrasing from the following prepared statement:
With nearly 20,000 visitors to the Valdez Museum each
year, the Museum is grounded in a strong sense of
responsibility to contributing to the regions
educational and economic development. We:
· Provide opportunities for education and learning.
· Contribute to the development of our community.
· Build human capital through building social
networks.
· Attract tourist to the area, stimulating the
economy and creating employment.
Determining the economic impact includes a number of
categories including the Museum's annual operating
budget. Visitors and tourist spending combined with tax
revenue and local jobs equals the total economic
impact. Applying this formula, the Valdez Museum's
economic impact on the local community is $1,180,900.
The educational impact is equally impressive. Last year
our education and public programs served 3,750 people,
which includes public and private schools, outreach to
remote areas, and adult learners. We have become known
as a classroom for private and homeschool groups.
The Valdez Museum has accomplished a lot within the
past few years: incorporating a successful expanded
range of programming, increasing its visitation, and
raising its standards of collection management. Despite
these achievements, the institution is now at a point
in which its progress is being hampered by limitations
of space.
The Valdez Museum has accomplished a lot within the
past few years: incorporating a successful expanded
range of programming, increasing its visitation, and
raising its standards of collection management. Despite
these achievements, the institution is now at a point
in which its progress is being hampered by limitations
of space.
As a matter of fact, our educational programs have
become so successful that we no longer have space to
conduct classes and workshops. Last summer we used a
tent on the front lawn.
The Valdez Museum functions as a place of ideas and
education. It is a natural gathering place that helps
build and strengthen inter-connections within the
family units and within the community at large.
I urge you to support SB 61, establishing a museum
construction grant program, so that museums throughout
the state of Alaska may continue to serve their
communities. Help us make this bill a reality!
2:24:38 PM
ANJULI GRANTHAM, Curator of Collections and Exhibits, Baranov
Museum, Kodiak, Alaska, testified in support of SB 61. She
reported that the Baranov Museum was founded in 1967 to
commemorate the centennial of the Alaska purchase. Following the
1964 earthquake and tsunami that washed out much of Kodiak, the
citizens rallied to save the Erskine House from demolition.
Using grant funds from the centennial celebration, they restored
the building and opened it as the Baranov Museum. This building
is the oldest building in Alaska; it was constructed in 1808 by
the Russian American Company.
MS. GRANTHAM said the community has worked hard to preserve and
maintain this historic landmark over the past 50 years. Storage
is inadequate and the stairs are so steep some people have to go
down backwards, but they wouldn't consider major alterations
because it would signify a major loss to the history of Alaska.
SB 61 matters because it allows museums and historic buildings
to leverage funds to do major preservation work in tune with
best practices and historic preservation. Each museum is unique
and SB 61 recognizes this and provides a framework to allow many
different institutions to enhance the care of their collections
and better educate visitors. For the Baranov Museum, the bill
will help to preserve the last physical remnants of Russian
colonization in Alaska. She concluded saying that SB 61 will
provide a wonderful opportunity to make Alaska's history and
culture shine in time for the 150th anniversary of the purchase
of Alaska.
2:27:08 PM
MICHELE MILLER, Member, Pratt Museum Board of Directors, Homer
Alaska, testified in support of SB 61, paraphrasing from the
following prepared statement:
The Pratt Museum is an anchor institution on the Kenai
Peninsula:
- educating children and adults
- contributing to our community's sense of place and
identity through history, art, and culture.
Like museums all over Alaska, the Pratt contributes to
the state's economy through employment and cultural
tourism.
Thank you, Senator Stevens for sponsorship of SB 61:
- provides structure for establishing a system for
prioritizing museum capital project funding requests in
Alaska
- following the state's model for library construction
projects
Even without immediate appropriations into the fund,
the mechanism created by SB 61 can provide:
- a solid ranking of capital projects
- aid in legislative decision-making during the capital
budget process
This is currently the case with the library program (AS
14.56.355-56):
- has helped build 14 new libraries through $50 million
of awards.
This legislation will allow museums to plan to protect
valuable collections well into the future.
With the passage of this legislation into law,
construction projects will be:
- funded by the merits of their projects and
- prioritized by their ability to match state funding,
and where they are in the construction process
Again, I thank Senator Stevens for his sponsorship of
Senate Bill 61 and thank you to this committee.
HOW THE LIBRARY PROCESS WORKED: AKLA developed the
matrix that vetted a construction project for shovel
readiness. The matrix was/is held by AKLA. The
libraries were in consensus on which project(s) would
be put forward for funding. The matrix required
appropriates pre-development planning, including going
through CAPSIS. AKLA had the candidates ready to
advance when the grant opportunity came forward. DCCED
could then review the grant and match it to AKLAs
matrix. Because the libraries worked together as they
prepared for their shovel-ready project, legislators,
funders, & the DCCED knew that the projects were ready
and would be successful and excellent credibility
was developed.
2:29:34 PM
BETHANY BUCKINGHAM-FOLLETT, Curator, Dorothy G. Page Museum,
Wasilla, Alaska, testified in support of SB 61, paraphrasing
from the following written statement:
The Mat-Su is the fastest growing area in the state.
Economic development and a healthy community are on the
minds of all in our area. The current museum building
was built in 1931 as Wasilla's Community Hall. We honor
that history and heritage by continuing to offer
community programs including Wednesday Nights at the
Museum, traveling exhibits, and providing a space for
visitors to learn about Alaska. Through our programs
and exhibits, we infuse history and culture into a
learning experience our visitors take with them
throughout their lives.
Children who come on school tours bring their families
and friends to enjoy the museum. Watching the
connection from classroom learning to real world
application at the museum, you see the students become
the teachers; sharing what they have learned and what
they know with their families and friends. Visitors
come and learn about Dog Mushing, Gold Mining and
Homesteading, not only of the Mat-Su but all of Alaska.
As we strive to meet the growing needs of our audience,
we find we have the opportunity to expand not only our
programs, but our space to host those programs. For a
Community Hall built for a town of about 100, we find
we are bursting at the seams hosting events for
visitors numbering 500 or more. We are in need of more
space and updated technology. SB 61 is critical to our
museum buildings and programming as we move towards
celebrating 150 years of Alaskan history and the future
of our communities. We currently host 700 third grade
students each year and are projected to be serving
close to 2100 students in three years.
Senate Bill 61 is important to our museum and all
museums around the state. This is an opportunity for
Alaskan museums to create a healthy environment for
patrons to learn about the community and the world
around them. This would be completed through renovation
and restoration of our current buildings. SB 61
provides the framework for Alaskans to support Museums
and preserve our heritage.
2:32:44 PM
EVA MALVICH, Director/Curator, Yupiit Piciryarait Museum,
Bethel, Alaska, testified in support of SB 61, stating the
following:
I am the Director/Curator for the Yupiit Piciryarait
Museum, a tribally run and managed museum based in
Bethel. We are the only museum based in the Yukon
Kuskokwim Delta Region and we support SB 6, the
enabling legislation to support construction or
renovation of museums and cultural centers around the
state.
Our area is home to Yup'ik and Cup'ik Eskimos and
Athabaskan Indians. We have lived here for a millennia
and our museum collection is full of objects showing
how we lived over time - valuable objects that are
priceless and full of information.
Please support SB 61. This enabling legislation will
allow our museum to better preserve our collection of
Alaska Native objects here in the Y-K Delta region.
The legislation will also provide our institution with
the means to protect the right environment for
priceless museum objects. Our HVAC was shut off over
13 years ago by our landlord, the Kuskokwim Campus.
And our collection of animal hides, walrus ivory, and
driftwood pieces are at risk of damage and loss. With
this enabling legislation we can finally have a means
to provide adequate services to the collection, and
with this designation we would also be eligible to
house objects that are taken out of federal lands in
our area. We would be able to take care of objects in
our own region and with more staff become a resource
for archeologists and their projects in Southwest
Alaska.
As you know, with our coastline zeroed and we know
there are historic sites in danger of becoming lost to
the Bering Sea every year, our museum is more than
just a building with walls around it. It is a valuable
resource as well for many people and institutions. For
instance, just this week I have worked with a group of
fish skin sewers who enrolled for a week-long course
in the evening at our local college. The group
represents several generations from different
backgrounds and cultural identities. The group had one
thing in common - to learn how to prepare fish skin
from scratch and to learn how to make garments,
artwork and jewelry from this art form that is part of
our cultural identity.
I was fortunate to work with two students from the
Kuskokwim Learning Academy this week - kids enrolled
in an alternative boarding school at risk of dropping
out of high school. These two young ladies are of
Cup'ik and Yup'ik. I wanted these two young ladies to
know that their culture and identity are worth
preserving, and as part owners of this museum they
need to know what we have in our collection. One of
the students found a picture of her grandfather taken
in 1962. He was a store manager at the time and she
had never seen his image before at that age. We pulled
out objects from her hometown and remarked about how
skillful the artists are and that she has every right
to be proud of her hometown and the family she is a
part of.
We talked about how I got to my role as
Curator/Director. It took me 18 years to get my master
of public administration degree - the only one in my
large family of nine to graduate from high school and
to go to college. As a mother of Yup'ik and Cup'ik
boys, I want kids to know that they can do anything
that they want to, and that nothing is out of their
reach.
The other young lady was able to relate to the objects
in our collection and remarked how her uncle is
teaching her how to make [indisc.] knives. She
marveled at the condition of the knives in our
collection, from artists that are no longer around.
And I hope she picks up the carving knife and
continues to hone her skills in carving and woodwork.
I mentioned that we are planning a walrus ivory
carving class and that I hope she joins us. I want her
to know she lives in an area rich in her Yup'ik
culture and that she has every right to be proud of
who she is.
Please support SB 61. This enabling legislation will
allow our museum to grow to meet our customers' needs.
Quyana for your time.
CHAIR COSTELLO closed public testimony and held SB 61 in
committee for further consideration.
2:37:30 PM
At ease
SB 99-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
2:40:09 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 99. "An Act relating to alcoholic beverages;
relating to the regulation of manufacturers, wholesalers, and
retailers 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; relating to the offense
of minor consuming; relating to revocation of a driver's license
for a minor consuming offense; relating to the effect of the
revocation of a driver's license for a minor consuming offense
on a motor vehicle liability insurance policy; and providing for
an effective date."
2:40:24 PM
SENATOR MICCICHE, Sponsor of SB 99, thanked the Rasmuson
Foundation for its support and helping to improve the public
safety of all Alaskans. He introduced SB 99 reading the
following sponsor statement into the record: [Original
punctuation is provided.]
SB 99 makes important updates to statutes governing
the Alcoholic Beverage Control Board to allow the
Board to function more efficiently and continue to
regulate the alcoholic beverage industry in a manner
that promotes public safety and health while allowing
the industry continued viability. This bill is the
product of a two-year, unprecedented collaboration of
stakeholders from a diverse group of industry
representatives and public health and safety entities.
The result is a reorganization of Alaska Statutes,
Title 4, to set out the rights and obligations of
licensees and the consuming public in a logical, and
well-organized manner.
SB 99 would amend and clarify provisions on the
appointment of the five-member ABC Board. Adequate
representation would occur through appointment of
persons from the public safety sector, public health
sector, from a rural area, and the general public. Not
more than two of the members may be actively engaged
in the alcoholic beverage industry. The director of
the ABC Board, depending on experience, could
represent one of the enumerated sectors. A new section
is added to the director's duties to require
preparation of an annual budget to cover enforcement,
education, training, and prevention activities. SB 99
would require the ABC Board to review fees not less
than every 10 years.
Provisions on fines and penalties for engaging in
prohibited acts are updated for clarity as to when
fines and penalties may be imposed. Other penalty
sections are amended to enable consistent and
predictable enforcement and just outcomes.
The new statutory provisions continue with the three-
tier licensing system for manufacturer, wholesaler,
and retail licenses; create a new endorsement system
to expand the boundaries of licensed businesses and
accommodate special events; and modify the permitting
system for clarity. Through this more comprehensive
licensing structure, persons wishing to participate in
the industry will know better what activities are
allowed for each license type. The bill adds some
provisions that reflect industry trends toward product
tastings to authorize a holder of a beverage
dispensary license to sell or dispense alcoholic
beverages at a permitted tasting event.
Passage of SB 99 will protect Alaskans, provide
clarity for alcoholic beverage licensees and the
public, and result in more consistent enforcement of
the alcoholic beverage industry.
SENATOR MICCICHE stated that the most important segment of the
bill provides reasonable youth consumption improvements. It
dramatically improves the process that now adversely affects a
young person for the rest of life his/her life because of one
poor decision.
2:44:47 PM
BOB KLINE, Chair, Alcoholic Beverage Control (ABC) Board,
informed the committee that Title 4 was written in the 1980s and
was state of the art at the time. Since then, both the state and
the industry has changed and revision is needed. He noted that
brew pubs hadn't been invented when the statute was written. In
May, 2012 70 some stakeholders assembled and made
recommendations to improve the structure and implementation of
Title 4. A rule that was established initially was that only
consensus could move change forward. SB 99 is the result of
thousands of hours of this collaborative effort and everyone is
proud of the outcome.
CHAIR COSTELLO thanked the participants for their commitment.
2:48:28 PM
JEFF JESSE, Chief Executive Officer, Alaska Mental Health
Authority, Anchorage, Alaska, stated that SB 99 is important
legislation because the Title 4 statutes regulate alcoholic
beverages in the state and the Alcoholic Beverage Control Board,
staff and law enforcement carry out these laws. Title 4 is being
reviewed because it has not been updated since 1980 and changes
have been made in a hodge podge fashion. The laws became
confusing and many were outdated.
The review and rewrite was a lengthy and time-consuming process.
Since May, 2012 more than 60 stakeholders and staff spent from
6,000 to 7,000 hours to craft the recommendations. The
stakeholders included youth, public health, public safety,
business, and rural communities. The Rasmuson Foundation and the
Mental Health Trust funded the infrastructure, hired people to
help draft the results and keep committee minutes.
The committees involved in the review process were the Licensing
Subcommittee, Role of the Board Subcommittee, Local Option
Subcommittee, Underage Drinking Subcommittee, Internet Sales
Subcommittee, and the Steering Committee. For each subcommittee
he displayed the name of each member and the organization and
sector that each represented. [This information may be found in
the committee file and online.]
Speaking as chair of the Licensing Subcommittee, he pointed out
that it had representation from all the different licensing
groups, ranging from the wholesalers to the manufacturers, to
retailers, to attorneys for licensees, and public health. He
pointed out that the Role of the ABC Board Subcommittee also had
broad representation including local government. The Local
Option Subcommittee had considerable representation from tribal
entities, public safety, and industry. The Underage Drinking
Subcommittee was led by the Division of Behavioral Health and
also included representation from public safety, ABC Board
staff, education, and industry. The Internet Sales Subcommittee
examined the issue of internet alcohol sales that bypass
Alaska's alcohol regulation and taxation system. Their
recommendations are pending depending on a proposed USPS policy
change regarding its ban on shipping alcohol through the mail.
2:53:00 PM
MR. JESSEE explained that Alaska's alcohol license system is
based on a three-tier system of regulation that separates the
manufacturing tier, the wholesale tier, and the retail tier. The
reason for the separate tiers is to keep the industry from
getting monopolized by vertical integration. He related that one
of the goals was to recognize the evolution of the business
model and offer new business opportunities to industry that does
not negatively affect the public health and public safety of
communities.
He displayed a schematic of the manufacturing and wholesale
tiers and explained that rather than having a number of esoteric
licenses, the proposal is to have a system of base license to
which endorsements could be added. For example, in the
manufacturing tier a brewery, winery, or distillery producer
could add a sampling endorsement. He noted that the wholesale
tier has a general wholesale component and a limited beer and
wine component.
The retail tier has a framework for community level licenses and
tourism licenses. At the community level there are twelve
different licenses and endorsements are available to different
license types. The four types of tourism licenses are intended
to maintain the population-based limit on access to alcohol in a
community while allowing additional access points during the
tourist season when Alaska's population increases dramatically.
2:55:28 PM
MR. JESSEE reviewed the following licensing revisions
recommended by the committee:
· Decrease the number of license types and simplify the
licensing system to achieve more consistent enforcement and
adherence to state alcohol regulations.
· Update licensing fees to support the ABC budget while
placing more emphasis on education and training rather than
enforcement. This includes adjusting wholesale license fees
and simplifying supplier reporting.
· Realign the system to better enforce population limits.
· Implement a system of endorsements and permits to provide
flexibility without creating more license types.
· Bring all licenses, endorsements and permits into one place
in statute and remove redundant or unused types.
The role of the ABC Board Subcommittee was to ensure that the
ABC Board fairly represents the interests of all Alaskans and
can lead in alcohol education, policy and control. The proposed
revisions included:
· Implement uniform police reporting requirements; develop
enforcement, education, and prevention plans directly
connected to the matching funds.
· Allow data about alcohol purchases to be released
(aggregated at the region or community level) for analysis
and community self-assessment.
· Base the ABC Board budget on the activities and staffing
needed to achieve the ABC Board's mission.
· Designate ABC Board seats to ensure representation by: 1
public health, 1 public safety, 2 industry and 1 rural
public member; consider the director's background in
filling the designations.
The Underage Drinking Subcommittee proposed revisions focused on
reforming underage drinking sanctions so that adults who supply
minors with alcohol are held to greater accountability. Other
proposed revisions included:
· Reducing the penalty for a licensee, agent or employee
selling alcohol to a minor (Sec. 04.16.052) from a class A
misdemeanor to a minor offense violation.
· Increasing the consistency and certainty of administrative
sanctions to licensees upon conviction of violating Sec.
04.16.052.
· Requiring statewide keg registration.
Another goal of the Underage Drinking Subcommittee was to reform
the underage drinking sanctions so that minors do not become
criminals for making one poor decision. The revisions included:
· Clarifying required language on signs warning minors of the
legal consequences of their entering licensed premises.
· Restoring the minor consuming alcohol (MCA) offense to a
true violation.
MR. JESSEE displayed the Local Option Subcommittee proposed
revisions to strengthen local options laws and the ability to
enforce them. These included:
· Repealing local option 4, which bans sale and importation
of alcohol, but not possession.
· Increasing the ABC budget for dedicated Title 4 enforcement
staff.
· Increasing the local option boundary from a 5-mile radius
to a 10-mile radius from the village center.
· Increasing the misdemeanor-level fines for bootlegging and
imposing additional unit fines per container of alcohol.
· Making possession of homebrew ingredients and/or equipment
with intent to produce alcohol illegal in all local option
communities.
2:58:01 PM
MR. JESSEE opined that everyone comes out a winner with the
Title 4 revisions. Business got more opportunity, youth are
better protected, the public health is better protected, public
safety is enhanced, and rural communities also get ahead. He
said the recommendations were placed in the bill and the various
stakeholders are in the process of examining it for completeness
and accuracy.
2:58:44 PM
CHAIR COSTELLO expressed appreciation for the introduction and
announced she would hold SB 99 in committee for further
consideration.
2:59:13 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2015.04.09 L&C Agenda.pdf |
SL&C 4/9/2015 1:30:00 PM |
Agenda |
| HB 149 - Version A.PDF |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| HB 149 am - Version A.A.PDF |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| HB 149 am - Senate L&C Hearing Request.pdf |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| HB 149 am - Sponsor Statement.pdf |
SL&C 4/9/2015 1:30:00 PM SL&C 4/14/2015 1:30:00 PM |
HB 149 |
| HB 149 am - Sectional Analysis.pdf |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| HB 149 am - Fiscal Note DCCED.pdf |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| HB 149 am - Summary of Changes.pdf |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| HB 149 am. - Legislation Diagram.PDF |
SL&C 4/9/2015 1:30:00 PM |
HB 149 |
| SB 61 - Version A.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Sponsor Statement.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Sectional Summary.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Support Resolution - FoJDCM.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Support Letter - Milli Martin.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Support Letter - City of Ketchikan.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Support E-mail Donner.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 61 - Resolution of Support - City of Ketchikan.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 61 |
| SB 99 - Version W.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |
| SB 99 - Sponsor Statement.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |
| SB 99 - Sectional Summary.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |
| SB 99 - Title 4 Policy Brief.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |
| SB 99 - Title 4 Executive Summary.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |
| SB 99 - Title 4 Recommendations.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |
| SB 99 - Legislative Presentation.pdf |
SL&C 4/9/2015 1:30:00 PM |
SB 99 |