03/03/2005 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Alaska State Board of Public Accountancy: Max Mertz - Juneau | |
| Alaska State Board of Public Accountancy: Catherine Wilson - Tok | |
| Regulatory Commission of Alaska: Anthony Price - Anchorage | |
| HB15 | |
| HB90 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 15 | TELECONFERENCED | |
| + | HB 90 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 3, 2005
1:34 p.m.
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Ben Stevens
Senator Johnny Ellis
MEMBERS ABSENT
Senator Bettye Davis
COMMITTEE CALENDAR
Confirmation Hearings:
Board of Public Accountancy:
Max Mertz - Juneau
Catherine Wilson - Tok
Regulatory Commission of Alaska:
Anthony Price -Anchorage
CS FOR HOUSE BILL NO. 15(L&C) am
"An Act relating to outdoor recreation lodge alcoholic beverage
licenses; relating to transfer of certain beverage dispensary
licenses issued before June 6, 1985; and providing for an
effective date."
HEARD AND HELD
HOUSE BILL NO. 90
"An Act requiring warrants drawn by the Department of
Administration against the state treasury to be negotiable
instruments."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 15
SHORT TITLE: LIQUOR LICENSES: OUTDOOR REC. LODGE/BARS
SPONSOR(s): REPRESENTATIVE(s) MEYER
01/10/05 (H) PREFILE RELEASED 12/30/04
01/10/05 (H) READ THE FIRST TIME - REFERRALS
01/10/05 (H) L&C, FIN
01/24/05 (H) L&C AT 3:15 PM CAPITOL 17
01/24/05 (H) Heard & Held
01/24/05 (H) MINUTE(L&C)
01/31/05 (H) L&C AT 3:15 PM CAPITOL 17
01/31/05 (H) Moved CSHB 15(L&C) Out of Committee
01/31/05 (H) MINUTE(L&C)
02/02/05 (H) L&C RPT CS(L&C) NT 5DP 1NR
02/02/05 (H) DP: LYNN, KOTT, LEDOUX, ROKEBERG,
ANDERSON;
02/02/05 (H) NR: GUTTENBERG
02/04/05 (H) CORRECTED CS(L&C) NT RECEIVED
02/07/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/07/05 (H) Moved CSHB 15(L&C) Out of Committee
02/07/05 (H) MINUTE(FIN)
02/09/05 (H) FIN RPT CS(L&C) NT 4DP 4NR
02/09/05 (H) DP: FOSTER, HAWKER, MEYER, CHENAULT;
02/09/05 (H) NR: MOSES, HOLM, KELLY, STOLTZE
02/22/05 (H) TRANSMITTED TO (S)
02/22/05 (H) VERSION: CSHB 15(L&C) AM
02/23/05 (S) READ THE FIRST TIME - REFERRALS
02/23/05 (S) L&C, FIN
03/03/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 90
SHORT TITLE: STATE TREASURY WARRANTS
SPONSOR(s): STATE AFFAIRS
01/21/05 (H) READ THE FIRST TIME - REFERRALS
01/21/05 (H) L&C, STA
02/02/05 (H) L&C AT 3:15 PM CAPITOL 17
02/02/05 (H) Moved Out of Committee
02/02/05 (H) MINUTE(L&C)
02/04/05 (H) L&C RPT 5DP
02/04/05 (H) DP: LYNN, KOTT, LEDOUX, GUTTENBERG,
ANDERSON
02/08/05 (H) RULES TO CALENDAR PENDING REPORT
02/08/05 (H) STA AT 8:00 AM CAPITOL 106
02/08/05 (H) Moved Out of Committee
02/08/05 (H) MINUTE(STA)
02/09/05 (H) STA RPT 7DP
02/09/05 (H) DP: GARDNER, LYNN, GATTO, GRUENBERG,
RAMRAS, ELKINS, SEATON
02/09/05 (H) TRANSMITTED TO (S)
02/09/05 (H) VERSION: HB 90
02/10/05 (S) READ THE FIRST TIME - REFERRALS
02/10/05 (S) L&C, STA
02/10/05 (S) L&C RPT RECD W/CS AWAIT TRANSMITTAL NXT
03/03/05 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
Max Mertz
Juneau, AK
POSITION STATEMENT: Alaska State Board of Public Accountancy
Confirmation Nominee
Catherine Wilson
Tok, AK
POSITION STATEMENT: Alaska State Board of Public Accountancy
Confirmation Nominee
Anthony Price
Anchorage, AK
POSITION STATEMENT: Regulatory Commission of Alaska
Confirmation Nominee
Representative Kevin Meyer
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 15.
Doug Griffen, Director
Alcoholic Beverage Control Board (ABC)
Anchorage AK
POSITION STATEMENT: Supported HB 15.
Bob Kline, Operations Manager
Brown Jug Liquor Stores
Anchorage AK
POSITION STATEMENT: Supported HB 15.
Representative Max Gruenberg
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Presented HB 90 for the House State Affairs
Committee.
Kim Garnero, Director
Division of Finance
Department of Administration
PO Box 110200
Juneau, AK 99811-0200
POSITION STATEMENT: Supported HB 90.
ACTION NARRATIVE
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:34:16 PM. Present were Senators
Ben Stevens, Seekins, Ellis and Chair Bunde.
^CONFIRMATION HEARING(S)
CHAIR CON BUNDE announced the first order of business to come
before the committee was confirmation hearings.
^Alaska State Board of Public Accountancy: Max Mertz - Juneau
MAX MERTZ said he is a partner with the accounting firm of Elgee
Rehfeld Mertz. He said he wants to be on the State Board of
Public Accountancy because it is a good way to serve the
profession and he is interested in the relationship between the
board and the state.
SENATOR ELLIS noted that Mr. Mertz has a good record according
to the Website, Google.
CHAIR BUNDE applauded the board for its internal regulation.
1:38:18 PM
^Alaska State Board of Public Accountancy: Catherine Wilson -
Tok
CATHERINE WILSON, former business manager of the Alaska Gateway
School District, noted her work experience and expressed
enthusiasm for her role on the Board of Public Accountancy.
1:40:06 PM
CHAIR BUNDE asked what major issues the board is dealing with
and if there are any conflicting issues between the board and
accounting professionals.
MS. WILSON answered that there are no issues that she is aware
of.
^Regulatory Commission of Alaska: Anthony Price - Anchorage
ANTHONY PRICE, nominee for the Regulatory Commission of Alaska
(RCA), noted his background in public accounting and management.
1:42:07 PM
CHAIR BUNDE asked him to relate his perspective of his role on
the board and if there were outstanding major issues before it.
MR. PRICE said here are outstanding issues in the form of the
dockets, but he cannot address them in a public forum. He said
he brings financial and business experience and his concern for
the betterment of the state to the position. He has a unique
perspective on balance between utilities infrastructure and low
rates.
1:44:11 PM
CHAIR BUNDE asked if he supports continuing competition in the
telecommunication industry in Alaska.
MR. PRICE answered that he supports competition and the move to
deregulation. He said it is still a challenging area.
CHAIR BUNDE noted that the committee would pass his name on to
the full legislative body.
1:45:45 PM
HB 15-LIQUOR LICENSES: OUTDOOR REC. LODGE/BARS
CHAIR BUNDE announced HB 15 to be up for consideration.
REPRESENTATIVE KEVIN MEYER, sponsor of HB 15, said the purpose
of this bill is to create an alcoholic beverage license for
outdoor recreation lodges. Currently, lodge owners who want to
serve alcohol try to get a dispensary license costing about
$2,500. A guided group on a boat would need a package license,
which is another $1,500. All totaled, it would cost $4,000 to
serve a drink with a meal and allow alcohol on the boat. These
types of licenses are based on population and a lodge might not
be able to afford to get one even if it is available. It is a
very burdensome situation for many small lodges. Some lodges
currently circumvent this by telling clients to bring their own
alcohol, sell it to them illegally, or provide it and charge for
it as part of the room rate, which is illegal.
1:48:17 PM
REPRESENTATIVE MEYER said this creates problems for wholesale
people who provide alcohol to rural areas. In fact, a wholesaler
brought this issue to his attention. Without licenses for
selling alcohol to remote lodges there is a lack of input from
the local community. Also, if licensing is required, TAMS
training is provided.
He said the definition of an outdoor recreation lodge means, "A
business that provide over-night accommodations, meals and is
primarily involved in offering opportunities for persons to
engage in outdoor recreation activities." He noted that the key
to this license is approval from the Alcohol Beverage Control
Board (ABC), which provides greater oversight and training.
He explained that currently lodges can only serve alcohol to
guests of off-duty staff and over-nighting guests; licenses are
non-transferable. The licenses would cost $1,250 every two
years, which would indicate a positive fiscal note - as the
state doesn't get anything currently. The ABC board is part of
the Division of Public Safety, which would make state troopers
and fish and game officers available for enforcement.
1:51:26 PM
REPRESENTATIVE MEYER noted that part 2 is an amendment offered
by Representative Rokeberg that would allow the transfer of
licenses in place prior to 1985 to family members who are
inheriting a business as long as it stays at the premises. This
was in reference to The Double Muskie Inn in Girdwood, Alaska.
Cabaret, Hotel, Restaurant and Retailers Association (CHARR),
ABC and lodges that they spoke to support this bill.
CHAIR BUNDE asked if everybody who works at the lodge would have
a TAMS card.
REPRESENTATIVE MEYER deferred the answer to that question to
Doug Griffin.
CHAIR BUNDE said he would hold the question for him and asked
what would prevent mom and pop gas stations that serve snow
mobilers up at Cantwell from putting up a cabin out back and
saying they are providing overnight recreation saying they serve
alcohol.
REPRESENTATIVE MEYER answered that it must have at least two
beds and the people being served must stay over night. Those
businesses would be eligible to apply for this license, but it
must go through a community hearing process and be reviewed
every two years.
CHAIR BUNDE asked how lodges in remote locations would have a
hearing in a community.
REPRESENTATIVE MEYER replied that AS 4.11.460 says:
Within 50 miles of the borders of the municipality,
the licensee must get signatures from a majority of
the residents within one mile of the proposed
location....
Another section says 50 miles or more from the
boundaries of a municipality, the licensee must get
signatures from two-thirds of the permanent residents
within a five-mile radius of the nearest post office.
1:54:45 PM
DOUG GRIFFEN, Director, Alcoholic Beverage Control Board (ABC),
supported HB 15 saying it is a balanced and well-constructed
bill. He knows that this could put licenses out in rural Alaska
where there are lots of concerns about alcohol abuse. He thinks
it is critical to limit serving alcohol to registered overnight
guests only. This bill will provide regulation and enforcement
to currently unregulated and unenforced activity. He noted that
alcohol server training is important and should be given to all
potential servers.
1:57:08 PM
MR. GRIFFIN noted the narrowing affect of amendment and his
concern about making the license a general dispensary one. He
pointed out that lodge owners can apply for a broader license.
CHAIR BUNDE said the license cost of $1,250 is fairly
substantial and asked how this fee relates to the cost of
processing it.
MR. GRIFFIN replied that the fee is one-half the cost of a
beverage dispensary license and provides more revenues than
needed for processing. However, he said that oversight and
enforcement is expensive, but is more difficult to quantify
because of those people being paid out of the general fund. "I
think the amount it could be argued might be too much for a very
small lodge and maybe too little for a large one, but I think
it's a reasonable figure."
1:59:44 PM
REPRESENTATIVE MEYER pointed out the similarity to club license
fees, which are $1,200 and package store license fees, which are
$1,500.
2:01:24 PM
CHAIR BUNDE said that the Finance Committee would be interested
in knowing the cost of administering the license program.
BOB KLINE, Operations Manager, Brown Jug Liquor Stores in
Anchorage, said he spent 12 years as a member of ABC board and
is current chairman of the Government Affairs Committee for
Alaska CHARR. His conversations with Representative Meyer led to
this legislation, which he supports.
2:03:09 PM
CHAIR BUNDE thanked him for his testimony, closed the public
hearing and held the bill for another hearing in the near
future.
HB 90-STATE TREASURY WARRANTS
CHAIR BUNDE announced HB 90 to be up for consideration.
2:03:44 PM
REPRESENTATIVE MAX GRUENBERG, said he is here on behalf of the
House State Affairs Committee, which introduced HB 90. This bill
codifies the National Bank of Alaska v. Univentures 1231, 824
nd
P.2 1377 (Alaska 1992) case, a Supreme Court decision that
makes treasury warrants negotiable instruments under the Uniform
Commercial Code (UCC). Up until that time, the state had taken
the position treasury warrants were not negotiable instruments,
so banks were free to dishonor them.
2:05:09 PM
Banks were left without recourse when they would cash someone's
treasury warrant and then the state would later say for some
reason it wasn't honoring it. In the Univentures case, the
Alaska Supreme Court said, following a number of other state
litigating similar issues, that treasury warrants are negotiable
instruments. He was not aware of any opposition.
CHAIR BUNDE asked in what situation would the state not honor a
treasury warrant.
2:06:36 PM
REPRESENTATIVE GRUENBERG related the Univentures case was a case
in point. The state leased a property that was owned by a joint
venture or a partnership. The people involved in the ownership
had a falling out and because they litigated amongst themselves,
they asked the state to put a stop payment on the warrants. In
the meantime, the state had given a treasury warrant to one of
the litigants. That person negotiated the warrant; the bank paid
it and then the bank sent it through the channels. By that time,
the state had received the word to not honor it.
Another situation where it could have arisen would have been if
a vendor had delivered some goods to the state; the state wrote
a warrant and then for some reason found the goods or services
to be defective. They could have technically dishonored it and
because they are treasury warrants, the state could take the
position of stopping payment.
2:08:05 PM
CHAIR BUNDE said that basically the bill is telling the state
that it cannot stop payment.
REPRESENTATIVE GRUENBERG responded that it can do that, but only
under the rules of the UCC - that say you can stop payment, but
you must notify the bank in a reasonable time, so that the bank
will have notice before it cashes the check. Once you have given
proper notice you must dishonor the draft, but if you haven't
given proper notice, you have to honor it.
KIM GARNERO, Director, Division of Finance, Department of
Administration, supported previous testimony saying that this
bill simply codifies in law a 1992 ruling by the Alaska Supreme
Court.
CHAIR BUNDE said it is the practice of the committee to not pass
a bill after the first hearing and that he would hold it for
another hearing at a future date. He adjourned the meeting at
2:11:42 PM.
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