Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/11/2015 11:00 AM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB149 | |
| SB58 | |
| SB107 | |
| SB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 149 | TELECONFERENCED | |
| += | SB 58 | TELECONFERENCED | |
| *+ | SB 107 | TELECONFERENCED | |
| += | SB 99 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 99-ALCOHOLIC BEVERAGE CONTROL; ALCOHOL REG
1:51:32 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 99. "An Act relating to alcoholic beverages;
relating to the regulation of manufacturers, wholesalers, and
retailers of alcoholic beverages; relating to licenses,
endorsements, and permits involving alcoholic beverages;
relating to the Alcoholic Beverage Control Board; relating to
offenses involving alcoholic beverages; relating to the offense
of minor consuming; relating to revocation of a driver's license
for a minor consuming offense; relating to the effect of the
revocation of a driver's license for a minor consuming offense
on a motor vehicle liability insurance policy; and providing for
an effective date." She noted that this was the second hearing
and public testimony was open. She noted that the sponsor's
staff and Carmen Gutierrez would tag team to present the new
sectional for the bill.
1:52:32 PM
CHUCK KOPP, Staff, Senator Peter Micciche, informed the
committee that the Title 4 rewrite accomplishes its overall goal
by modifying the role and composition of the ABC Board,
clarifying and simplifying the three-tier system of alcohol
regulations, and changing the penalty provisions. He began
reviewing the sections of the bill.
Section 1 repeals and reenacts AS 04.06.020, relating to the
appointment and qualifications of members of the Alcoholic
Beverage Control Board. There will be one member from public
safety, one member from public health, one member who has lived
in a rural area within the last five years, and not more than
two members may be actively involved in the alcohol industry.
This section also allows the governor to take into consideration
the experience of the executive director and appoint a public
member to offset that experience/influence.
1:54:08 PM
CHAIR COSTELLO asked for an explanation of the composition of
the current ABC Board.
MR. KOPP read AS 04.06.020. The board consists of five members:
two members shall be actively engaged in the industry, three
members will represent the general public, one of which shall
reside in a rural area.
Section 2 changes "chairman" to "chair" in AS 04.06.030.
Section 3 changes "chairman" to "chair" in AS 04.06.050.
Section 4 amends AS 04.06.075 by adding a subsection requiring
the director to prepare a budget for the board. This includes
everything for the administration and enforcement of Title 4 as
well as education, training, and prevention activities.
Section 5 conforms a reference in AS 04.06.080 to reflect the
relocation of AS 04.11.070 to AS 04.06.090(b); adds the
endorsements, which expand the boundaries of a licensed premises
or the authorized activities.
Section 6 amends AS 04.06.090(b) to include the language of AS
04.11.070 relating to the exclusive power of the board to issue,
renew, transfer, relocate, suspend, or revoke a license, and
adds references to endorsements. AS 04.11.070 is repealed.
Section 7 adds new subsections to AS 04.06.090, relating to the
powers and duties of the board. Subsection (f) requires the
board to develop a comprehensive plan to educate the public on
the responsible use of alcoholic beverages and update the plan
annually. Subsection (g) requires the board to review the fees
established in AS 04 and regulations adopted under AS 04 at
least every 10 years. Subsection (h) provides that the board may
prepare an advisory opinion on legislation amending AS 04.
Section 8 amends AS 04.06.095, relating to the statewide
database on shipments to purchasers in local option areas to
require retention of the records in the database for 10 years.
It adds a reference to the new package store shipping
endorsement.
Section 9 adds a subsection to AS 04.06.095 requiring the board
to produce a report of aggregate regional and statewide data
from the database, including information on the volume of
alcohol shipped to communities and the region from which the
shipments originated.
1:58:29 PM
CARMEN GUTIERREZ, Contractor, Alaska Mental Health Trust
Authority, Anchorage, Alaska, continued the sectional analysis
of SB 99.
Section 10 revises various provisions in the existing licensing
provisions found in AS 04.11.080 - 04.11.255 and relocates them
to a new chapter, AS 04.09. It specifies fees for each license
type, and penalties for noncompliance and operating without the
appropriate license. It separates the provisions for
manufacturing of alcoholic beverages and retail sales and
sampling by manufacturers. It adds a definition of "packaging"
applicable to manufacturer licenses. Existing retail operations
of manufacturers are grandfathered for eight years. It adds a
beverage dispensary tourism license and a seasonal restaurant or
eating place tourism license. It codifies the theatre license
currently provided for in regulation.
This section codifies endorsement and permit provisions. Some of
the endorsement and permit provisions are drawn from current
licensing statutes; some are based on endorsements and permits
provided for in regulations. It replaces duplicate licenses
under existing statute with a new multiple fixed counter
endorsement, but grandfathers existing duplicate licenses for
eight years. It creates a new endorsement permitting sampling at
package stores.
MS. GUTIERREZ explained that the new chapter was created because
the revisions to the licensing chapter were significant and this
was the best way to implement the badly needed reorganized
structure. She reminded the committee that Alaska's alcohol
licensing system is based on a three-tier system of regulation.
The three types of licenses the board may issue are manufacture,
wholesale and retail.
She highlighted the major changes that the new chapter 09
provides. All the licensing types available to manufacturers
continue to exist; they are brewery, winery, and distillery.
There continues to be wholesale licenses; these are general
wholesale and limited malt beverage and wine wholesale. Then
there are the retail licenses. The new chapter simplifies the
manufacturing licenses by removing bottling works and brewpubs.
Bottling works is covered under the winery license and the
brewery manufacturing license incorporates most of the brewpub
provisions.
AS 04.09.270 adds brewery retail licenses specifically for
manufacturers to permit the opportunity for onsite consumption
and offsite sales. It also provides a separate endorsement for
free samples. This reflects the change in the market while
ensuring that the market between the retailers and the
manufacturers does not become lopsided. It provides equity among
manufactures and permits wineries and breweries to have a
restaurant or eating place license. This chapter also removes
the prohibited financial interest restrictions in AS 04.11.450.
The provision currently does not permit a manufacturer to hold a
restaurant or eating place license.
The new chapter 09 makes population limitations applicable only
to retail tier licenses. This excludes tourism and public
convenience license provisions. It also places a permanent
moratorium on issuing new public convenience licenses and
replaces the existing ones with a new license type that allows
for seasonal restaurant or eating place licenses in small
communities and unincorporated areas. This reflects the increase
in Alaska's population during the tourism season. The new
chapter clarifies the parameters that would allow and require
multiple fixed counters for an established dispensary license.
This eliminates the duplicate licensing system, but the existing
duplicates are grandfathered.
2:05:09 PM
The new chapter 09 adds a beverage dispensary tourism license
and seasonal restaurant or eating place tourism license in
recognition of summer travelers. The chapter ensures that the
definition of recreation license is applied to current and
potential recreational site holders. There is a provision to
review and revoke licenses that do not meet the plain language
of the definition of "recreation." The chapter updates every
licensee provision as well as the endorsements and permits, the
fees are updated to ensure they are proportionate to the
administrative cost of each kind of license. The intent is that
they will be sufficient to cover the ABC Board statutorily
required activities. The fees have been adjusted for both
wholesale license types.
2:07:27 PM
CHAIR COSTELLO asked for confirmation that she was still
discussing Section 10.
MS. GUTIERREZ said yes and that it probably requires more
explanation than any other section.
MR. KOPP pointed out that Section 10 is found on pages 5-44.
MS. GUTIERREZ continued to discuss Section 10. She explained
that AS 04.09.320 through AS 04.09.340, starting on page 25,
line 30, specify the penalties for noncompliance and operating
without a license.
The provisions related to the endorsements are found on pages
26-38 in AS 04.09.360 through AS 04.09.470. Endorsements are
intended to expand the boundaries of a licensed premise for
authorized additional activity.
AS 04.09.500 through AS 04.09.600 relate to permits, placing
them all in statute rather than regulation. The language in
chapter 9 is clear that the ABC Board may only issue licenses,
endorsements, and permits that are outlined in statute.
2:12:17 PM
Section 11 amends AS 04.11.010(a) to eliminate references to
manufacture and sale, and limit the prohibition in the
subsection to possession for barter, bartering, and trafficking
of alcoholic beverages. This reflects that the prohibition is in
chapter 09.
Section 12 amends AS 04.11.010(b) to change a reference from AS
04.11.150, the former location of the package store license
section, to AS 04.09.420, the new package store shipping
endorsement section.
Section 13 amends AS 04.11.010(c), relating to possession or
transport of a certain quantity of alcoholic beverages creating
a presumption that the alcoholic beverages were possessed or
transported for barter or sale. It amends the presumption to
include possession for barter, and possession for sale under AS
04.09.060, 04.09.070, 04.09.145, 04.09.320, or 04.09.3 30.
Section 14 amends AS 04.11.015(b) to specify a $100 fine for
violation of subsection (a). This is to ensure that the courts
are not able to suspend those fines and that a suspended
imposition of sentence could not be imposed by the court.
Section 15 adds a new subsection AS 04.11.015(c), changing the
penalty for purchasing alcoholic beverages from a non-licensee
from the standard penalty for a violation prescribed under AS
12.55 to a fine of $100 per liter purchased.
2:15:08 PM
Section 16 adds a specific criminal penalty provision for
transferring a license or permit or interest not in accordance
with AS 04.11.040. The penalty is a $100 fine.
Section 17 adds specific criminal penalty provisions making
failure of an LLC to report a change in member interest or
manager as required under AS 04.11.045 a violation.
Section 18 adds a specific criminal penalty provision making
failure of a corporation to report a stock transfer or change of
officers or board members as required under AS 04.11.050 a
violation.
Section 19 adds specific criminal penalty provisions making
failure by a partnership to report a transfer of partnership
interest or change of general partner as required under AS
04.11.055 a violation.
Section 20 changes a reference in AS 04.11.060 to reflect the
new section number of the general wholesale license statute.
Section 21 adds two new subsections to AS 04.11.060, defining
failure to comply with subsection (a) as a violation, with each
liter or fraction of a liter sold as a separate violation
punishable by a $100 fine.
SENATOR MEYER referenced Section 16 and questioned whether a
$100 fine is enough to deter the unwanted behavior.
MS. GUTIERREZ said the penalties in Sections 15-19 are criminal
penalties, but the ABC Board has administrative remedies that
can be very severe, including suspension or revocation of a
license and an administrative fine of up to $50,000. The
workgroup involved in the rewrite of Title 4 sanctions believe
that these kinds of violations can be better addressed by the
ABC Board than the criminal justice system.
2:19:49 PM
VICE CHAIR GIESSEL assumed the gavel.
2:20:52 PM
MR. KOPP continued the sectional analysis for SB 99.
Section 22 amends AS 04.11.260, relating to applications, to
apply to endorsements as well as licenses and permits. It
requires applications to include an annotated illustration of
the premises. It adds new requirements for various specific
types of endorsements and permits.
Section 23 amends AS 04.11.270 to cover renewal of the specified
endorsements and permit as well as licenses.
Section 24 amends AS 04.11.295(a) relating to fingerprints and
criminal justice information required for issuance and renewal
of a conditional contractor's permit.
Section 25 amends AS 04.l1.295(b)(l) relating to applications
for issuance and renewal of a conditional contractor's permit.
These are two-year licenses for construction sites in remote
areas and inside the boundaries of military reservations not
inside a municipality.
Section 26 adds a new section AS 04.11.315 relating to the crime
of making a false statement on an application under AS 04.11.260
- 04.11.310. The existing AS 04.16.210, relating to false
statements on applications, is repealed. The penalty for perjury
remains a class B felony.
Section 27 amends AS 04.11.320(a) relating to denial of licenses
by the board to encompass denial of endorsements.
Section 28 amends AS 04.11.330(a), relating to denial of an
application for renewal of a license, to include endorsements.
It changes a reference from AS 04.11.400(d) to the new AS
04.09.300 and 310, requiring the board to decline an application
for renewal of a beverage dispensary tourism license or a
seasonal restaurant or eating place tourism license if the board
finds the license has not encouraged tourist trade.
Section 29 amends AS 04.11.330(d) to conform a reference to a
section that is now in AS 04.09.
Section 30 amends AS 04.11.340 relating to grounds for refusal
of an application for relocation of a license to add a reference
to the new AS 04.09.240. It requires denial of applications to
relocate outdoor recreation lodge licenses.
Section 31 changes references in AS 04.11.360(9), the statute
relating to denial of a request to transfer a license to another
person. This statute requires denial of requests to transfer
outdoor recreation lodge licenses. It deletes paragraph (10)
relating to brewpubs because AS 04.11.135 is repealed.
2:24:33 PM
MS. GUTIERRES continued the sectional analysis.
Section 32 amends AS 04.11.365 relating to licensed premises in
residential housing developments owned or funded by the Alaska
Housing Finance Corporation to reflect the new restaurant
endorsement statute.
Section 33 amends AS 04.11.370, relating to suspension and
revocation of licenses and permits, to include endorsements.
Section 34 adds a reference to endorsements in AS 04.11.395,
relating to board imposed conditions on licenses, permits, and
endorsements.
Section 35 amends AS 04.11.400(a), relating to licenses and
population limits. It adds a limit of one brewery retail, winery
retail, or distillery retail license per [10,000] people. It
adds a radius to the population limit in paragraph (a)(l).
Section 36 repeals and reenacts AS 04.11.400(i). The subsection
currently excludes golf course licenses from the population
limits statute; the reenacted subsection includes a list of nine
license types and one permit type to which the requirements of
AS 04.11.400 do not apply. Those license types are listed on
page 57, lines 18-31,
Section 37 conforms a reference in AS 04.11.400(k).
Section 38 amends AS 04.11.450(b) to remove a reference to a
bottling works, since AS 04.11.120 is being repealed. It removes
a sentence relating to brewpubs, since AS 04.11.135, the brewpub
statute, is repealed. It adds a sentence prohibiting issuance of
a restaurant or eating place license to an owner of a wholesale
business or distillery.
Section 39 makes a conforming change to the name of a license in
AS 04.11.450(e).
Section 40 amends AS 04.11.470 to cover objections to the
issuance and renewal of endorsements.
Section 41 amends AS 04.11.480(a) to cover a local government
protest of the issuance, renewal, or operation of an
endorsement.
Section 42 amends AS 04.11.480(b) to add endorsements.
Section 43 amends AS 04.11.480(c) to cover local government
recommendations for conditions on the issuance or renewal of an
endorsement.
2:29:42 PM
MR. KOPP continued the sectional analysis.
Section 44 makes conforming changes to AS 04.11.491(a) that
speaks to the local option for a municipality and repeal of the
prohibition of importation and sale of alcoholic beverages. This
is one prohibition that the committee and the consortium decided
didn't make sense. AS 04.11.491(a)(4) is repealed in the
repealer section.
Section 45 makes conforming amendments to AS 04.11.491(b). The
repeal of paragraph (b)(3) is in the repealer section.
Section 46 makes conforming amendments to AS 04.11.491(d), the
wording requirements on ballots in local option elections.
Section 47 makes conforming amendments to AS 04.11.491(g), the
local options in both municipalities and established village
elections. Paragraph (g)(3) is repealed.
Section 48 amends AS 04.11.497 relating to the effect of
adoption of a prohibition on the sale of alcoholic beverages in
a local option area on existing licenses to conform references
to reflect renumbering. It expands the boundaries of the area
from five to 10 miles. It adds an exception permitting renewal
of existing outdoor recreation lodge licenses.
Section 49 amends AS 04.11.499(a) to delete references to
repealed paragraphs. It adds an exception to the prohibition on
importation for outdoor recreation lodges.
Section 50 creates an exception in AS 04.11.501(a) to the
prohibition on possession of alcohol in a dry community for
outdoor recreation lodge license holders, agents, employees, and
guests.
Section 51 adds a reference to AS 04.11.501(a) in AS
04.11.501(b). This addresses length of time before prohibition
of possession becomes effective after an election has occurred.
Section 52 amends AS 04.11.503, relating to the effect of a
local option election restricting sale on existing licenses, to
permit the board to renew existing outdoor recreation lodge
licenses, and provide that outdoor recreation lodge licenses are
not void 90 days after the results of a local option election
are certified. It also expands the boundary of the area from
five miles to 10 miles.
Section 53 amends AS 04.11.505(a) to change the local option
radius and permit renewal of existing outdoor recreation lodges
only in areas that opt to allow only licensed premises operated
by a municipality.
Section 54 amends AS 04.11.508(a) to expand the perimeter of a
local option area for an established village from five miles to
10 miles.
Section 55 conforms references in AS 04.11.509(b) to reflect the
repeal of AS 04.11.491(a)(4) and (b)(3). This section deals with
the notice of the results of a local option election. It
specifically reflects the repeal of both the municipal and
village sale and importation option
Section 56 amends AS 04.11.520 to limit the requirement of
notice to a local government to applications for issuance or
renewal of a license or endorsement, or transfer of a license to
another person or a new location.
Section 57 amends AS 04.11.535(a) to include endorsements and
permits, records of conviction, and judgments.
Section 58 amends AS 04.11.537, application of precedent, to
cover issuance and renewal of an endorsement.
Section 59 amends AS 04.11.540 to include endorsements.
Section 60 amends AS 04.11.560(b), relating to appeals to the
superior court, to include endorsements.
Section 61 amends AS 04.11.570, relating to refund and
forfeiture of fees, to include endorsements and permits.
Section 62 amends AS 04.11.580, relating to surrender and
destruction of a license, to add endorsements.
Section 63 amends AS 04.11.590(a), relating to disposition of
money, to include endorsements and permits.
2:37:25 PM
SENATOR STEVENS referred to page 63 and asked if he was reading
it correctly that even if the voters prohibit importation, an
outdoor recreational lodge could continue to import alcoholic
beverages.
MR. KOPP replied that is correct. The consortium agreed that
existing outdoor recreational lodges that hold a license are
grandfathered but the exception does not transfer to a
subsequent owner. He asked Ms. Gutierrez to confirm his answer.
MS. GUTIERREZ said the exception does not terminate after a
specified period of time.
SENATOR STEVENS questioned why there should be an exception for
a lodge if a community voted to be dry.
MR. KOPP asked Ms. Gutierrez if she recalled the discussion that
led to the exception.
MS. GUTIERREZ said the Local Option Subcommittee vetted the
question and decided that having lodges provide their customers
only with alcoholic beverages would not impinge on the intent of
a local option prohibition. Those lodges need the exception
because they are importing alcoholic beverages but they are not
selling to the general public. She said she wasn't involved in
that particular subcommittee but the exception was approved by
the entire steering committee.
2:43:18 PM
SENATOR STEVENS observed that the provision does not say that
only lodge guests would be served or that alcoholic beverages
would not be sold to the public. "Democracy is that if a
community decides they want no alcohol in their community,
you're leaving an opening for people that are not customers of
the lodge and also to the public." He questioned why the
language doesn't clearly say "customers only."
MS. GUTIERREZ directed attention to page 18, line 17-[20], which
is where the outdoor recreation lodge license exists. It permits
a holder of that license "to sell alcoholic beverages to a
registered overnight guest or off-duty staff of the lodge for
consumption on the licensed premises or in conjunction with
purchased outdoor recreation activities provided by the
licensee."
SENATOR STEVENS said he wouldn't pursue it but he did not agree
MR. KOPP suggested that Ms. Franklin or Mr. Jessee may have
supplementary information.
VICE CHAIR GIESSEL found neither were available and suggested
that Senator Stevens flag that for questions at a future
meeting.
2:46:45 PM
MS. GUTIERREZ continued the sectional analysis.
Section 64 changes terminology in AS 04.11.610 from "refund" to
"allocate," adds municipal reporting requirement. This relates
to the biannual fees that licensees pay and how that money is
allocated to municipalities. Subsection (b) is amended to
provide that if a municipality fails to provide a report of
Title 4 violations occurring in the municipality, the
municipality's allocation of licensing fees may be denied.
Section 65 amends AS 04.11.630(b) to require that endorsements
and permits be posted on the licensed or designated premises.
Section 66 amends AS 04.11.680(a), specifying a default term for
sampling endorsements and conditional contractor permits.
Section 67 amends AS 04.16.010(c), relating to entry on licensed
premises between five a.m. and eight a.m. to permit entry by a
person conducting business with the licensee, a person who is a
common carrier, and maintenance and construction workers.
Section 68 amends AS 04.16.010, relating to hours of sale and
presence on licensed premises, to add crime and penalty
subsections. It makes noncompliance a violation, punishable by a
fine of $100, with each hour or part of an hour constituting a
separate violation.
Section 69 amends AS 04.16.015(a) to include the concept of
"alcoholic drink" as defined in AS 04.21.080.
Section 70 amends AS 04.16.015, on pricing and marketing of
alcoholic beverages, to add crime and penalty subsections. It
makes noncompliance a violation, punishable by a fine of $50 per
alcoholic drink.
Section 71 adds a new AS 04.16.017, relating to unfair trade
practices. It is modeled on 27 U.S.C. 205.
2:52:06 PM
MR. KOPP continued the sectional analysis.
Section 72 adds subsections to AS 04.16.020 to make solicitation
of alcoholic beverages and purchase on behalf of another
violations, punishable by a fine of $100.
Section 73 adds references to AS 04.16.025(a), relating to
entering and remaining on premises where illegal sale, barter,
or trafficking of alcoholic beverages is taking place, to
include new sections on operating without a license.
Section 74 adds crime and penalty provisions to the existing AS
04.16.030 to make prohibited conduct relating to drunken persons
a violation, rather than a class A misdemeanor.
Section 75 amends AS 04.16.035 to apply the prohibition on
possession of ingredients for homebrew to all local option
areas, rather than just those that have adopted a prohibition on
sale, importation, and possession.
Section 76 adds new subsections to AS 04.16.035 specifying that
possession of homebrew ingredients is a class A misdemeanor.
Section 77 amends AS 04.16.040 to use the defined term "licensed
premises" rather than "premises licensed under this title."
Section 78 adds new subsections to AS 04.16.040 making access by
a drunken person to licensed premises a violation.
Section 79 adds new subsections to AS 04.16.045 to make
permitting unauthorized consumption on licensed premises a
violation; specifies that each drink consumed is a separate
violation punishable by a fine of $50.
Section 80 adds a subsection to AS 04.16.047 defining conduct
prohibited under (a) as a class A misdemeanor.
2:55:46 PM
MS. GUTIERREZ advised that virtually every act that violates a
provision of Title 4 is a class A misdemeanor. This change was
made because the committee determined that law enforcement was
not occurring when Title 4 was violated. She continued the
sectional analysis.
Section 81 amends AS 04.16.049(a), relating to access by minors
to licensed premises, to replace a reference to designation by
the board as a restaurant with a reference to the restaurant
endorsement issued under AS 04.09.410. It adds a reference to AS
04.09.180(g), permitting access to club premises by a person
under 21 years of age if no alcoholic beverages are present or
if the person has an active duty military card. Changes "age of
2l years" to "21 years of age" to conform to the current
drafting style.
Section 82 changes "age of 21 years" to "21 years of age" in AS
04.16.049(b) to conform to the current drafting style.
Section 83 amends AS 04.16.049(c) to replace a reference to
designation by the board as a restaurant with a reference to the
restaurant endorsement issued under AS 04.09.410 and to include
golf courses.
2:59:19 PM
Section 84 amends AS 04.16.049(d) to allow employment of persons
who are 18, 19, or 20 years old on golf courses.
Section 85 adds a new subsection (g) to AS 04.16.049 to permit
access by minors to golf courses for the purpose of playing
golf. It adds new subsections making unauthorized presence by a
minor on licensed premises a violation, punishable by a fine of
$500. The fine may be reduced by a court to $50 if the minor
shows proof of completion of an alcohol safety action program.
Section 86 repeals and reenacts AS 04.16.050 to make minor
consuming a violation.
There are conforming changes to AS 28.15.057(a), and the repeal
of AS 21.96.027, relating to motor vehicle insurance after
driver's license revocation under AS 04.16.050 (with a
conforming amendment to AS 21.36.210(a)), AS 28.15.181(h),
28.15.185(e), AS 47.12.030(b)(5), 47.12.060(b)(4) (with a
conforming amendment to AS 28.15.176, on administrative
revocation of driver's license), and AS 47.12.120(k).
3:03:46 PM
SENATOR STEVENS asked if alcohol safety action programs are
available in all communities.
MS. GUTIERREZ replied representatives with the Department of
Health and Social Services (DHSS) indicated that the department
will be able to provide the programs throughout the state,
although some may be through online or study at home programs.
SENATOR MEYER expressed concern that reducing the penalties for
minors to a violation and fine rather than a misdemeanor may
make youths think that alcohol offenses are not serious. He
asked if this is modeled in other states.
MS. GUTIERREZ said she didn't know what other states do, but
when the Underage Drinking Subcommittee reviewed court system
data and found these cases were being dismissed. The goal in
this amendment is to ensure that more minors will be held
accountable. If unpaid, their fine will be deducted from their
PFD and their parents notified of the available alcohol
education programs. The consensus of the subcommittee was that
this change would do more to get the attention of minors than
the current system. This change also does away with the status
offense, which jeopardizes federal funds. She suggested that Ms.
Franklin supplement the answer.
3:09:07 PM
CYNTHIA FRANKLIN, Director, Alcoholic Beverage Control (ABC)
Board, Department of Commerce, Community and Economic
Development (DCCED), related that she was approached several
years ago by Anchorage district judges who were dissatisfied
with some of the injustices that were occurring due to the minor
consuming statutes. Judges were unable to change the penalties
based on circumstances before them. As a prosecutor she too
witnessed these injustices and became very concerned about the
way that the minor consuming laws are not working in the state.
Young people are not supposed to be jailed for a status offense,
but that does happen.
The Underage Drinking Subcommittee studied the penalties in some
other states and found wide variation. She and several Alaska
judges attended a juvenile justice conference last year and
learned that any federal funds a state receives could be
jeopardized if it is determined that young people are
incarcerated for status offenses. They returned with an urgency
to amend the statute. She conceded that on first glance the
penalties may not seem serious, but her experience as the
Anchorage municipal prosecutor is that anything that is
consistently applied is effective. The Underage Drinking
Subcommittee concluded that this was a good approach to try,
because it will be applied consistently. It will make the ticket
easier to write and it will decrease the places in the system
where the young person ends up with no consequence.
SENATOR STEVENS asked if the penalties increase on a second
offense.
MS. FRANKLIN answered no; that's the current scheme and it
doesn't necessarily work. The consensus is that this new concept
is worth a try.
SENATOR STEVENS expressed optimism for its success.
3:17:20 PM
SENATOR MEYER asked what happens to a minor who attempts to buy
an alcoholic beverage, and if this new law will impact the civil
fines that licensed establishments rely on to discourage minors
from attempting to purchase an alcoholic beverage.
MS. FRANKLIN replied the civil penalty was not changed because
the industry views it as a useful tool. However, the hope is
that the new easier to write tickets will result in licensees
receiving more assistance from law enforcement so they will
become less reliant on pursuing their own civil penalty.
3:19:34 PM
VICE CHAIR GIESSEL polled the committee and the consensus was to
continue the sectional analysis at the next meeting.
MR. KOPP reviewed the current escalating penalties for minor
consuming.
VICE CHAIR GIESSEL announced she would hold SB 99 in committee
for further consideration.
3:21:36 PM
There being no further business to come before the committee,
Vice Chair Giessel adjourned the Senate Labor and Commerce
Standing Committee meeting at 3:21 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 58 - Version N.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 58 |
| CSSB 58 Version N sponsor statement.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 58 |
| CSSB 58 Version N sectional.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 58 |
| SB 107.PDF |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Sponsor Statement.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Sectional Analysis.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Presentation.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Accreditation Brief.PDF |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - NAIMC Support.PDF |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |
| SB 107 - Financial Regulation Standards & Accreditation Program.pdf |
SL&C 4/11/2015 11:00:00 AM |
SB 107 |