Legislature(2011 - 2012)HOUSE FINANCE 519
04/06/2011 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB206 | |
| HB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 125 | TELECONFERENCED | |
| *+ | HB 206 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 206
"An Act relating to the Alcoholic Beverage Control
Board; and providing for an effective date."
8:49:47 AM
JENNIFER SENETTE, STAFF, REPRESENTATIVE KURT OLSON,
explained that the legislation would extend the termination
date if the Alcohol Beverage Control Board (ABC) to June
30, 2015; this was a four-year extension and reflected the
recommendation of the 2009 audit report. The audit
recommended that the legislature extend the ABC Board's
termination date until June 30, 2014, but legislation had
been passed during the 2010 session that extended the date
an additional year. The extension had been honored during
the crafting of HB 206, resulting in a termination date of
June 30, 2015.
Co-Chair Stoltze requested further clarification from the
Division of Legislative Budget and Audit (LB&A) concerning
the audit.
PAT DAVIDSON, LEGISLATIVE AUDITOR, DIVISION OF LEGISLATIVE
AUDIT, reiterated that in 2009 LB&A had conducted full
sunset review of the board and had recommended a four-year
extension. In 2010 the legislature passed a bill to extend
the ABC Board by one year. As a result, a current status
check of the recommendations that had been made in the
prior audit was conducted. The division had focused on two
recommendations; the first was to determine that the ABC
Board had established quantifiable and objective
enforcement goals, and to develop a clear plan in which
enforcement resources could be directed in order to
maximize efficiency and effectiveness. The division found
that the recommendation had been partially resolved. While
enforcement staff had been successful in meeting some of
the regional inspection goals, reducing the number of
duplicate inspections had been less successful, as had been
the results concerning compliance check activity. The
second recommendation dealt with administrative activities.
Several outstanding issues had been substantially resolved.
One related to reconciliation between the ABC data base
with regard to licensing activity and the states accounting
records. Accurate distribution of licensing fees back to
municipalities was dependent on the ABC being reconciled to
the state accounting system.
8:53:37 AM
Representative Gara wondered whether the duplication of
serviced had resulted in wasted funds. Ms. Davidson replied
that there had been no duplication of services.
Vice-chair Fairclough asked how long ago the outstanding
recommendations had been recommended to the board. Ms.
Davidson responded that the enforcement goals
recommendation had first appeared in the 2006 sunset audit.
A series of administrative recommendations had been issued
for the past few years, some in 2006 and more in 2010.
Vice-chair Fairclough wondered whether the division had
reviewed the attendance and longevity of board members. Ms.
Davidson stated that the longevity of members had not been
examined. Quorum maintenance and meeting attendance had not
been issues for the division.
Vice-chair Fairclough asked if there had been enough
longevity on the board to recognize that since 2006 the
same recommendations were coming back before the group. Ms.
Davidson answered that she did not know. She stated that
any noted progress had occurred under the new executive
director of the board. She stated that the changeover of
the new executive director was noteworthy in the 2010 audit
as an observance of corrective actions by the board having
taken place.
Representative Wilson expressed concern that the board had
not taken proper minutes or given proper prior public
notice of meetings. Ms. Davidson relayed that when the
board examined the activities over the last year, the only
two issues remaining with regard to board meetings was that
the agendas had not listed the timing of public comment,
and that the board had failed to document when it was going
into executive session. Continuing problems with public
notice had not been discovered.
Representative Wilson asked if the public comment and
executive session issues had been alleviated. Ms. Davidson
replied that the issues had been resolved.
8:58:24 AM
Co-Chair Stoltze OPENED public testimony.
8:58:55 AM
BELEN COOK, BOARD MEMBER, ALASKA BEVERAGE CONTROL BOARD,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, CORDOVA (via
teleconference), testified in support of HB 206.
Vice-chair Fairclough understood that there were members of
the board that were coming up for reappointment or were
facing an expiration of term. She asked if there were
people on the board that had been members for multiple
years, and if so, why had the audit recommendations taken
so long to be resolved.
Ms. Cook replied that the last two appointees were Bob
Kline, ABC Board Chairman who represented industry and had
been on the board off and on for the last 12 years. She
added that he was a good and fair chairman. Joe Delphino
had been on the board prior to Ms. Cook's appointment and
was expected to seek reappointment, however, personal
reasons had prevented him from remaining on the board. A
Wasilla resident now filled the chair. Ellen Ganley was the
vice-chair representing a public seat, and had been on the
board off and on for 10 years. She did not know why some
members had not stayed on the board longer. She shared that
the problems highlighted by the audit had been sufficiently
handled by the director.
9:04:01 AM
DALE FOX, PRESIDENT AND CEO, CHARR, ANCHORAGE (via
teleconference) spoke in support of HB 206. He testified
that the ABC was an important organization that provided a
level playing field for licensees. The industry had seen
major improvements under the direction of the new executive
director, Shirley Gifford.
BOB WINN, BLUES CENTRAL/CHEF'S INN, ANCHORAGE (via
teleconference) voiced support of HB 206.
HB 206 was HEARD and HELD in committee for further
consideration.
9:06:39 AM
AT EASE
9:07:06 AM
RECONVENED