04/12/2010 08:00 AM House FINANCE

HOUSE BILL NO. 283                                                                                                            
                                                                                                                                
     "An Act relating to the purchasing of and restrictions                                                                     
     concerning alcoholic beverages."                                                                                           
                                                                                                                                
REPRESENTATIVE HARRY CRAWFORD spoke  to the reasoning behind                                                                    
the bill.  He believed that prevention  is crucial regarding                                                                    
alcohol related crimes. The bill  is directed at identifying                                                                    
those  individuals  that  cannot handle  alcohol.  The  bill                                                                    
restricts  a person  who commits  a  felony from  purchasing                                                                    
alcohol.  The  bill  also   restricts  a  third  misdemeanor                                                                    
directly or indirectly caused by  the consumption of alcohol                                                                    
and  prohibits the  purchase alcohol  from a  person who  is                                                                    
restricted   or   has   a    youth   driver's   license   or                                                                    
identification.                                                                                                                 
                                                                                                                                
9:23:20 AM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  expressed issues with recent  amendments to                                                                    
the bill,  particularly Sections  4 and 5.  He asked  if the                                                                    
sections  were added  to the  original bill.  Representative                                                                    
Crawford replied yes.                                                                                                           
                                                                                                                                
Co-Chair Hawker  stated that Section  5 bothers  him because                                                                    
an  Alaska citizen  turning 21  years  of age  with a  valid                                                                    
driver's license is  unable to purchase alcohol  until he or                                                                    
she obtains a  new license. He pointed out  Section 4, which                                                                    
is  in existing  statute. He  wished to  remove the  section                                                                    
from statute.                                                                                                                   
                                                                                                                                
9:25:53 AM                                                                                                                    
                                                                                                                                
Representative  Crawford commented  that the  operative word                                                                    
is "may" as people will  occasionally buy alcohol with their                                                                    
passport because they have the  red mark on the license. The                                                                    
red mark indicates alcohol restriction.  He explained that a                                                                    
person can drive with a  vertical (junior) license following                                                                    
their 21st birthday, but cannot buy alcohol with it.                                                                            
                                                                                                                                
Co-Chair  Hawker  recalled  certain times  in  the  nation's                                                                    
history   where  different   views  regarding   equity  were                                                                    
observed. He observed insult when  a young person returns to                                                                    
Alaska  after serving  their country  in Afghanistan  and is                                                                    
unable  to purchase  alcohol without  renewing his  driver's                                                                    
license.                                                                                                                        
                                                                                                                                
9:31:09 AM                                                                                                                    
                                                                                                                                
Representative  Joule  echoed  Co-Chair  Hawker's  point  of                                                                    
view. In small  communities, one lacks the  ability to renew                                                                    
their  driver's license  without a  local Division  of Motor                                                                    
Vehicle (DMV) office.                                                                                                           
                                                                                                                                
Representative  Austerman shared  the  concerns of  Co-Chair                                                                    
Hawker. He opined  that a law mandating  the presentation of                                                                    
state identification indicating  a potential alcohol problem                                                                    
may  be  more  effective.  He compared  his  solution  to  a                                                                    
"filtration  system"  for  those with  known  problems  with                                                                    
alcohol.  He  appreciated   the  efforts  of  Representative                                                                    
Crawford.                                                                                                                       
                                                                                                                                
9:34:23 AM                                                                                                                    
                                                                                                                                
Representative Crawford stated that  these two sections were                                                                    
a  high  priority for  the  industry.  Currently an  alcohol                                                                    
restricted  driver's license  has  red stripe.  He spoke  of                                                                    
recent contact  with a woman who  voluntarily deemed herself                                                                    
alcohol restricted  with a  red mark on  her license  as she                                                                    
could not control  her drinking and believed  that this tool                                                                    
would help her. He realized  that prohibition of alcohol did                                                                    
not work,  but another  tool is  necessary for  those people                                                                    
who have proven that they cannot handle alcohol.                                                                                
                                                                                                                                
9:37:51 AM                                                                                                                    
                                                                                                                                
Representative Gara  stated that  the bill makes  it illegal                                                                    
to use  another person's  identification to buy  alcohol. He                                                                    
opined that  Section 4  and 5 make  the bill  more effective                                                                    
and balanced.                                                                                                                   
                                                                                                                                
9:40:08 AM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas  applauded the bill's merits.  He shared a                                                                    
personal  story   regarding  lack  of   identification  upon                                                                    
discharge  from  the military.  He  echoed  the concerns  of                                                                    
Representative  Joule as  his district  was  also rural  and                                                                    
lacking  in  DMV  offices. He  expressed  sympathy  for  the                                                                    
military  and the  rural  portion affected  by  the bill  as                                                                    
written.                                                                                                                        
                                                                                                                                
9:43:09 AM                                                                                                                    
                                                                                                                                
Representative Crawford provided  a personal story regarding                                                                    
lack of  alcohol service  without proper  identification. He                                                                    
understood   that   the    law   can   occasionally   create                                                                    
inconveniences, but the overall  benefits of this bill would                                                                    
outweigh  them. He  suggested  that military  identification                                                                    
would suffice  for the purchase  of alcohol, but he  did not                                                                    
advocate  for use  of a  passport  as proper  identification                                                                    
when purchasing alcohol.                                                                                                        
                                                                                                                                
9:45:40 AM                                                                                                                    
                                                                                                                                
Representative  Foster  echoed  the  concerns  expressed  by                                                                    
Representative Joule.                                                                                                           
                                                                                                                                
Representative Crawford stated that  the industry of package                                                                    
stores in Anchorage requested that  a person with a vertical                                                                    
picture on their license be unable to purchase alcohol.                                                                         
                                                                                                                                
9:47:47 AM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  pointed out that  the amendment  as drafted                                                                    
will  remove   the  "illiterate  bartender   provision."  He                                                                    
continued  that  Section  4 is  existing  statute  and  will                                                                    
remain unaffected by the amendment.                                                                                             
                                                                                                                                
Co-Chair  Stoltze clarified  that  bartenders  often have  a                                                                    
wide  variety  of education  levels.  He  asked the  Alcohol                                                                    
Board  about  requirements   for  package  stores  regarding                                                                    
identification and alcohol.                                                                                                     
                                                                                                                                
SHIRLEY GIFFORD,  ALCOHOL BOARD (via  teleconference) stated                                                                    
that clarification in the bill  will prove helpful regarding                                                                    
requirements.  She stressed  that she  was not  available to                                                                    
oppose the bill, but instead to answer questions.                                                                               
                                                                                                                                
Co-Chair  Stoltze  asked  if  the  current  law  prevents  a                                                                    
package store  from requiring  an Alaskan  driver's license.                                                                    
Ms.  Gifford responded  yes, beverage  dispensaries, package                                                                    
stores,  and   restaurants  set  their  own   policies.  The                                                                    
establishments  can  refuse   service  to  anyone.  Licensed                                                                    
establishments  tend to  protect  themselves from  potential                                                                    
liability.                                                                                                                      
                                                                                                                                
Co-Chair  Stoltze asked  if  an  establishment could  create                                                                    
policy  for acceptance  or not  of military  identification.                                                                    
Ms.  Gifford  understood  that   the  licensees  can  refuse                                                                    
service to any person.                                                                                                          
                                                                                                                                
9:55:01 AM                                                                                                                    
                                                                                                                                
Representative Kelly  asked if Section 5  was removed, would                                                                    
the  ability to  force the  training program  under the  new                                                                    
license be  lost. Representative  Crawford responded  that a                                                                    
person  seeking   their  license  must  take   the  training                                                                    
program.                                                                                                                        
                                                                                                                                
Representative Austerman  asked if the time  frame comprised                                                                    
of a  90 day period. Representative  Crawford clarified that                                                                    
a person has 90 days  to renew their license following their                                                                    
21st birthday.                                                                                                                  
                                                                                                                                
9:57:22 AM                                                                                                                    
                                                                                                                                
Representative  Foster  revisited  the  passport  issue.  He                                                                    
communicated that village DMVs  sometimes close for weeks at                                                                    
a time  and the hours  are often restricted. He  opined that                                                                    
the use of a passport would be helpful in that situation.                                                                       
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
9:58:58 AM                                                                                                                    
                                                                                                                                
Co-Chair Hawker moved Amendment #1:                                                                                             
                                                                                                                                
     Page 2, line 12 through line 29                                                                                            
                                                                                                                                
     Delete all material                                                                                                        
                                                                                                                                
     Renumber following sections accordingly.                                                                                   
                                                                                                                                
Representative Gara OBJECTED for discussion.                                                                                    
                                                                                                                                
Co-Chair  Hawker explained  that the  amendment removes  the                                                                    
discriminatory  provision of  a person  who has  reached the                                                                    
age of 21 without the opportunity  to visit a DMV office for                                                                    
reissuance  of a  new driver's  license. The  amendment does                                                                    
not alter existing statute.                                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Joule,  Salmon,   Thomas,  Austerman,  Fairclough,                                                                    
Foster, Stoltze, Hawker                                                                                                         
OPPOSED: Gara, Doogan                                                                                                           
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
Co-Chair Stoltze  addressed the  fiscal notes from  DMV, and                                                                    
the Department of Health and Social Services (DHSS).                                                                            
                                                                                                                                
10:02:06 AM                                                                                                                   
                                                                                                                                
DIANE  CASTO,  PROJECT  MANAGER, DEPARTMENT  OF  HEALTH  AND                                                                    
SOCIAL SERVICES explained the fiscal  notes. She stated that                                                                    
very little enforcement of the  red striped licenses occurs.                                                                    
The Alcohol  Safety Action  program works  with misdemeanant                                                                    
alcohol  offenses.  With  the  bill,  increased  enforcement                                                                    
leads  to   increased  probation  violations.   A  probation                                                                    
violation leads  to additional monitoring  including regular                                                                    
urinalysis testing requiring an increase in staff.                                                                              
                                                                                                                                
Co-Chair Stoltze  asked if  the amendment  has an  impact on                                                                    
the fiscal note. Ms. Casto replied no.                                                                                          
                                                                                                                                
Co-Chair Hawker  expressed concern about the  zero nature of                                                                    
DMV's fiscal  note as it creates  a net of $2  million state                                                                    
revenue.                                                                                                                        
                                                                                                                                
KERRY  HENNINGS, DRIVERS  LICENSE MANAGER,  DRIVER SERVICES,                                                                    
DIVISION OF MOTOR VEHICLES  (via teleconference) agreed that                                                                    
the change was positive.                                                                                                        
                                                                                                                                
Co-Chair  Hawker  asked  about   the  fiscal  note  prepared                                                                    
January 26,  2010 which reflects  the additional  charge for                                                                    
alcohol  restricted  licenses  with  the  agency  estimating                                                                    
40,000   additional  licenses   each   year.  Ms.   Hennings                                                                    
apologized as she was not prepared to answer the question.                                                                      
                                                                                                                                
Representative  Crawford possessed  a different  fiscal note                                                                    
from  DMV  stating expenses  of  $17,500  with a  change  in                                                                    
revenue of $50 thousand.                                                                                                        
                                                                                                                                
10:07:01 AM                                                                                                                   
                                                                                                                                
Representative Austerman  requested committee review  of the                                                                    
new  fiscal note.  He  asked if  the  amendment affects  the                                                                    
fiscal note for  DMV. Ms. Casto repeated  that the amendment                                                                    
does not  change the  fiscal note.  Ms. Hennings  added that                                                                    
the  amendment  does not  change  the  fiscal note  for  DMV                                                                    
either.                                                                                                                         
                                                                                                                                
Representative  Crawford stated  that the  fiscal note  from                                                                    
DHSS  was  created  before  the  last  committee  where  the                                                                    
increase of the fine from $1000 to $2000 was amended out.                                                                       
The former proposal would have increased enforcement.