Legislature(2013 - 2014)

04/07/2014 03:24 PM House L&C


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            HB 336-ALCOHOL SALES NEAR SCHOOL/CHURCH                                                                         
                                                                                                                                
4:18:17 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE  BILL NO.  336,  "An  Act relating  to  sales of  alcoholic                                                               
beverages near a school or church."                                                                                             
                                                                                                                                
4:18:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GERAN TARR, Alaska  State Legislature, stated that                                                               
HB 336 will  increase the buffer between  premises selling liquor                                                               
and schools or churches  from 200 to 400 feet.   In response to a                                                               
question, she acknowledged the bill is not retroactive.                                                                         
                                                                                                                                
4:19:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT  asked how many facilities  currently lie                                                               
within 200-400 feet of school or church facilities.                                                                             
                                                                                                                                
REPRESENTATIVE TARR  said the department only  tracks the current                                                               
restrictions,  which prohibit  alcohol sales  within 200  feet of                                                               
schools or churches.  In response  to a question, she agreed that                                                               
any existing facility  would not be affected, but  it would limit                                                               
new establishments to 400 feet.                                                                                                 
                                                                                                                                
4:20:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT related  a  scenario in  which a  church                                                               
moves into a mall with a liquor  store or bar.  He asked how this                                                               
bill would affect the existing liquor store or bar.                                                                             
                                                                                                                                
REPRESENTATIVE TARR  answered it  would be prohibited  within 400                                                               
feet of the entrance.   She explained the calculations, which may                                                               
include walking to the sidewalk,  crossing a street, and resuming                                                               
walking  on a  sidewalk so  the measurements  mirror the  typical                                                               
pathway to travel to and from the establishment.                                                                                
                                                                                                                                
4:21:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  related  a  scenario  in  which  a  new                                                               
charter school  moves into a  neighborhood strip mall.   He asked                                                               
whether the onus would be on  the school to find another place or                                                               
if the existing alcohol establishment would be displaced.                                                                       
                                                                                                                                
REPRESENTATIVE TARR  answered that the charter  school would need                                                               
to pick a different location.                                                                                                   
                                                                                                                                
4:22:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  related that  some charter  schools meet                                                               
temporarily  in churches.   She  asked for  clarification on  the                                                               
measurement and if it is door to door or from the property line.                                                                
                                                                                                                                
REPRESENTATIVE  TARR answered  by  reading  language [Section  1,                                                               
page 2, lines 13-15], for the  restriction, which read:  "(B) the                                                               
premises would be located in  a building having a public entrance                                                               
within  400 [200]  feet of  the boundary  line of  a school  or a                                                           
church building  in which religious services  are being regularly                                                               
conducted;...."  She  clarified that current law is  200 feet and                                                               
this bill would increase the limit to 400 feet.                                                                                 
                                                                                                                                
4:23:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD   said  that   there  could  be   a  big                                                               
difference between door  to door and driveway.  She  asked if the                                                               
entrance means the physical entrance or the driveway entrance.                                                                  
                                                                                                                                
REPRESENTATIVE  TARR  recalled  discussing this  point  with  the                                                               
department and  related that it viewed  it as "door to  door" and                                                               
not  "as the  crow flies"  or the  shortest distance.   It  would                                                               
include  the distance  and route  a person  would take  to travel                                                               
from one establishment to the other.                                                                                            
                                                                                                                                
4:24:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  asked for further clarification  that it                                                               
would be a door to door measurement.                                                                                            
                                                                                                                                
REPRESENTATIVE TARR agreed.   She read [page 2, lines  6-8] of HB
336, which  read, "... is  measured from the outer  boundary line                                                               
of the  school or the public  entrance of the church  building by                                                               
the shortest pedestrian  route to the nearest  public entrance of                                                               
the  restaurant or  eating  place;".   She  highlighted that  the                                                               
aforementioned is  existing language in statute  and reflects the                                                               
current measurement.                                                                                                            
                                                                                                                                
4:24:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked if a school could waive this.                                                                    
                                                                                                                                
REPRESENTATIVE TARR  answered no.  The  intent of the bill  is to                                                               
extend a buffer for all future  schools and churches and it would                                                               
apply to both schools and churches.                                                                                             
                                                                                                                                
4:25:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SADDLER  expressed   concern   that  this   bill                                                               
represents  a statewide  solution to  a local  problem.   He said                                                               
that  this bill  might put  distance between  schools and  liquor                                                               
establishments,   but  this   bill  does   not  address   or  fix                                                               
alcoholism.  It  just puts the problem farther out  of sight.  He                                                               
suggested it  could be argued  that allowing children to  see the                                                               
effects  of alcohol  abuse would  be  a disincentive  to take  up                                                               
drinking.   He stated he was  glad that bill would  only apply to                                                               
future construction  and is  not retroactive.   He  indicated his                                                               
intent  and desire  is  not  to have  someone  come  back to  the                                                               
legislature and expand the buffer and  require bars be moved.  He                                                               
acknowledged that the bill would protect some kids.                                                                             
                                                                                                                                
REPRESENTATIVE  TARR  said she  appreciated  his  comments.   She                                                               
acknowledged  the importance  of not  getting ahead  of what  the                                                               
bill might do.   She offered her  hope that this bill  might be a                                                               
part  of a  bigger effort  on the  issues of  alcoholism although                                                               
this bill does not address it.                                                                                                  
                                                                                                                                
4:27:00 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  answered that  some  of  the larger  churches  have                                                               
parking lots  which extend to  400 feet.   He suggested  that 400                                                               
feet is probably a good compromise.                                                                                             
                                                                                                                                
REPRESENTATIVE TARR reported that  most other states have buffers                                                               
greater than  200 feet, with 200  feet being at the  low end, and                                                               
1,000 feet at  upper range.  The other states  also had a variety                                                               
of ways  to measure the distance.   She stated that  Alaska is on                                                               
lower end for buffers, which is one reason for the bill.                                                                        
                                                                                                                                
4:27:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked   whether  the  Cabaret,  Hotel,                                                               
Restaurant & Retailer's Association  (CHARR) has taken a position                                                               
on this bill.                                                                                                                   
                                                                                                                                
REPRESENTATIVE TARR answered  no.  She said that she  has been in                                                               
close contact with CHARR and does  not want this bill to be anti-                                                               
business.    She  related her  understanding  that  the  business                                                               
owners  are responsible  and everyone  is trying  to work  on the                                                               
same  problems without  placing fault  on anyone.   She  has kept                                                               
CHARR informed and to date no one has responded in that way.                                                                    
                                                                                                                                
CHAIR OLSON surmised  that if the restriction  had been increased                                                               
to  500 feet  or  1,000 feet  that someone  from  CHARR would  be                                                               
testifying.                                                                                                                     
                                                                                                                                
4:28:58 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 336.                                                                                     
                                                                                                                                
4:29:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD asked  whether  any  church groups  have                                                               
"weighed in" on the bill.                                                                                                       
                                                                                                                                
REPRESENTATIVE TARR responded that  this bill would affect future                                                               
establishments, but she checked with  churches but since the bill                                                               
doesn't directly impact these churches, it wasn't a concern.                                                                    
                                                                                                                                
4:29:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD wondered how  it affects youth meeting in                                                               
churches.  She was unsure if the organization would be impacted.                                                                
                                                                                                                                
REPRESENTATIVE TARR referred to page  1, lines 14-15, to language                                                               
which  states, in  part,  " ...  or a  church  building in  which                                                               
religious  services are  being regularly  conducted;  ...."   She                                                               
offered her  belief that it is  enforced based on a  building but                                                               
not on church youth ministry meeting in a building.                                                                             
                                                                                                                                
4:30:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  whether  restaurants that  serve                                                               
beer and  wine would  be subject  to the  additional restrictions                                                               
under the bill.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  TARR answered  yes, for  future locations  near a                                                               
school or church.                                                                                                               
                                                                                                                                
4:31:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    HERRON   related    his   understanding    that                                                               
establishments with  liquor licenses shouldn't be  located within                                                               
400 feet  of a  school or church.   He asked  how the  bill would                                                               
affect a church or  a school that wants to move into  a mall.  He                                                               
wondered if the liquor license could be renewed.                                                                                
                                                                                                                                
REPRESENTATIVE TARR asked for clarification on the question.                                                                    
                                                                                                                                
CHAIR  OLSON  suggested clarification  on  the  effect of  liquor                                                               
license renewals if  a school or church moves within  400 feet of                                                               
an establishment.                                                                                                               
                                                                                                                                
REPRESENTATIVE  TARR related  her understanding  that the  liquor                                                               
license  owner would  not be  affected.   She clarified  that the                                                               
owner would be  "grandfathered in" as an existing  licensee.  She                                                               
believed  it  would be  the  church's  responsibility to  find  a                                                               
location that is outside the 400 feet.                                                                                          
                                                                                                                                
CHAIR  OLSON  related his  understanding  that  the church  can't                                                               
argue against the liquor license renewal if it moved in.                                                                        
                                                                                                                                
REPRESENTATIVE TARR  agreed.   She stated  that the  church would                                                               
need to follow the 400-foot buffer.                                                                                             
                                                                                                                                
4:33:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON  pointed out that the  bill doesn't clearly                                                               
state  this but  only  discusses the  liquor  premises not  being                                                               
closer  than  400  feet to  a  school  or  church.   He  said  he                                                               
appreciated the intent of the bill.                                                                                             
                                                                                                                                
REPRESENTATIVE  TARR  explained  that [the  200-foot]  buffer  is                                                               
existing statute so  it is the way it's being  enforced now.  She                                                               
surmised that when  the existing statute was passed  it must have                                                               
been the most appropriate way to insert the boundaries.                                                                         
                                                                                                                                
4:34:35 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON related  his understanding  that the  bill addresses                                                               
relocation of the liquor establishment to the church.                                                                           
                                                                                                                                
REPRESENTATIVE HERRON agreed, but referred  to Section 2 line 12,                                                               
which  relates  to  restriction of  location  near  churches  and                                                               
schools.   He  asked why  this  language doesn't  also provide  a                                                               
restriction of location near liquor stores.                                                                                     
                                                                                                                                
REPRESENTATIVE TARR  responded that these changes  fall under the                                                               
alcohol section of  the statutes.  Thus, the context  is from the                                                               
perspective of the liquor licensees  and the owner's relationship                                                               
with the  church and  school.   She suggested  different statutes                                                               
might focus on the perspective of schools or churches.                                                                          
                                                                                                                                
The committee took an at-ease from 4:35 p.m. to 4:42 p.m.                                                                       
                                                                                                                                
4:42:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HERRON,  as   a   follow-up  to   Representative                                                               
Chenault's  question,  asked  whether  a church  or  school  must                                                               
consider being outside  a 400-foot buffer from  a licensed liquor                                                               
establishment under the bill.                                                                                                   
                                                                                                                                
SHIRLEY  COTE, Director,  Alcoholic Beverage  Control Board  (ABC                                                               
Board),   Department   of    Commerce,   Community   &   Economic                                                               
Development,  explained  that under  current  law  if a  licensed                                                               
premise is  at a location  and a church  or school wants  to move                                                               
within 200 feet  of the premise that the decision  would be up to                                                               
the church  or school  to decide.   She said  that the  ABC Board                                                               
doesn't have anything  in place that would require  a licensee to                                                               
move out  of the location  since the business was  established in                                                               
its location prior  to the school or church moving  in.  She said                                                               
that the board  would make those types of decisions  and it could                                                               
be  a consideration  at the  time  of liquor  license renewal  if                                                               
objections or  protests arise.  She  acknowledged that mechanisms                                                               
are in place if issues or  problems arise.  However, currently if                                                               
a church or  school has moved within the  prohibited buffer zone,                                                               
the board has not made the licensee shut down its business.                                                                     
                                                                                                                                
4:44:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT  related his  understanding that  even if                                                               
the law changed  to 400 feet, if a church  chose to locate within                                                               
that distance it would not  affect the liquor licensee unless the                                                               
church  subsequently decided  it  didn't like  the alcohol  sales                                                               
nearby  and  petitioned the  ABC  Board  to  try to  make  liquor                                                               
license owners  move its  establishment.   He asked  whether this                                                               
has happened or could happen.                                                                                                   
                                                                                                                                
MS. COTE answered that this  has not happened although it doesn't                                                               
mean  it can't  happen.    She indicated  that  every other  year                                                               
during license renewal any person,  including a locally governing                                                               
body,  can object  to the  renewal and  the board  would take  it                                                               
under consideration.                                                                                                            
                                                                                                                                
4:46:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT  asked whether a large  church could move                                                               
within 200 feet or 400 feet  of a liquor establishment and create                                                               
enough local  pressure to cause  problems for the  liquor license                                                               
holder and the establishment could be forced to relocate.                                                                       
                                                                                                                                
MS. COTE  said it is a  possibility, in particular, if  issues or                                                               
problems later  arose, that  the church could  come to  the board                                                               
and it would consider the  issue during renewal, although she did                                                               
not recall any situation where that has happened.                                                                               
                                                                                                                                
4:47:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT  recalled reading  in an  Anchorage paper                                                               
that a liquor store was having  problems, but he was unsure if it                                                               
was a church,  school, or local community that had  objected.  He                                                               
did not recall the details  but he imagined that public testimony                                                               
would be considered by the board.                                                                                               
                                                                                                                                
MS. COTE  recalled situations in  which a licensed  premise would                                                               
be well outside  the 200 feet but noted if  the public outcry has                                                               
been  substantial  the  liquor   license  renewal  has  not  been                                                               
approved.   She  noted  that  this type  of  action could  happen                                                               
regardless of the distance to a school or church.                                                                               
                                                                                                                                
4:48:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  related his  understanding that  a church                                                               
could  raise issues  which could  affect liquor  license renewal.                                                               
However,  this  bill  addresses  a  geographical  distance.    He                                                               
wondered if a  church moved within 200 or 400  feet of a business                                                               
if the  business and church  could coexist just fine,  but during                                                               
the license  renewal may  raise an objection.   He  asked whether                                                               
the aforementioned objection could be based solely on proximity.                                                                
                                                                                                                                
MS. COTE  answered yes.   She  said that even  with a  new liquor                                                               
license application objections could certainly be raised.                                                                       
                                                                                                                                
REPRESENTATIVE SADDLER  asked whether  anything in  state statute                                                               
other  than renewal  provisions would  ban a  church from  moving                                                               
into within 200 or 400 feet of [a bar].                                                                                         
                                                                                                                                
MS. COTE answered that is correct.                                                                                              
                                                                                                                                
4:49:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  recalled   that  local  government  has                                                               
bought  out space  in malls.   She  related a  scenario in  which                                                               
government  entities, such  as  a school  district  or perhaps  a                                                               
preschool  moves into  a  mall.   She  asked  whether this  would                                                               
impact preschools and if preschools are considered schools.                                                                     
                                                                                                                                
MS.  COTE said  preschools are  considered schools.   In  further                                                               
response  to  a question,  Ms.  Cote  indicated if  the  licensed                                                               
premises were already on location  and the school or church moved                                                               
in, it would  be the school or  church's decision to do  so.  She                                                               
indicated that  in her experience  licensees do not want  to lose                                                               
their liquor licenses  so the owners tend to work  to address any                                                               
issues.  She said if a  school subsequently raised an issue about                                                               
any premise that  ABC Board would consider the issue  at the time                                                               
of the liquor license renewal.                                                                                                  
                                                                                                                                
4:52:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  commented  that   it  is  important  to                                                               
address this issue and identify any parties impacted.                                                                           
                                                                                                                                
4:52:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON said  it seems  as though  a school  or                                                               
church  could  decide to  locate  within  400  feet of  a  liquor                                                               
establishment, but it couldn't then  question the premise selling                                                               
liquor  located within  400 feet  of  the school.   However,  the                                                               
school could  raise some other  issue at  the time of  the liquor                                                               
license  renewal.    He  reiterated that  the  school  or  church                                                               
couldn't raise  the proximity  argument since  it was  created by                                                               
the school or church.                                                                                                           
                                                                                                                                
MS. COTE answered yes; however,  the school could raise the issue                                                               
if a  problem arises.   She said that  the board would  work with                                                               
the licensee to  correct any problem, for  example, if complaints                                                               
arose that underage persons were being  served.  She said that it                                                               
would take a  great deal to revoke an active  liquor license on a                                                               
mere objection.  She said, "I mean it just doesn't happen."                                                                     
                                                                                                                                
4:54:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD moved  to report HB 336  out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
note.   There being no  objection, HB  336 was reported  from the                                                               
House Labor and Commerce Standing Committee.                                                                                    

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