03/28/2016 01:30 PM Senate JUDICIARY

         SB 165-ALCO. BEV. CONT. BOARD; MINORS; ALCOHOL                                                                     
                                                                                                                                
2:52:12 PM                                                                                                                    
VICE  CHAIR COGHILL  announced the  consideration of  SB 165.  He                                                               
noted this  is the  first hearing and  public testimony  would be                                                               
taken  at  the  next  meeting.  [CSSB  165(L&C)  was  before  the                                                               
committee.]                                                                                                                     
                                                                                                                                
2:52:45 PM                                                                                                                    
SENATOR PETER  MICCICHE, sponsor  of SB  165, explained  that the                                                               
bill  would  provide a  good  balance  of representation  to  the                                                               
Alcoholic Beverage  Control (ABC) Board and  decriminalizes youth                                                               
for simple  alcohol possession and  consumption. It also  puts in                                                               
place  proper  accountability  measures.  The bill  opens  a  new                                                               
horizon  of  opportunity  for  youth  who  have  made  a  mistake                                                               
consuming alcohol in the past.                                                                                                  
                                                                                                                                
He  pointed out  that this  legislation is  part of  an on-going,                                                               
comprehensive,  multi-year  modernization  process for  Title  4.                                                               
There  is a  lot left  to  work on.  SB 165  contains two  simple                                                               
pieces  that  were agreed  upon  by  the  coalition. Title  4  is                                                               
largely unchanged since  1980 and is outdated  and ineffectual in                                                               
carrying out  the intent  of the  statute which  directly impacts                                                               
Alaska residents'  public safety, public health,  and the alcohol                                                               
beverage industry.                                                                                                              
                                                                                                                                
He  noted  that the  Senate  Labor  and Commerce  Committee  made                                                               
several  changes  to  the  bill  in  response  to  feedback  from                                                               
community and  industry members, as  well as from  justice system                                                               
practitioners.  He  said  he  is   particularly  pleased  by  the                                                               
addition of the Community Diversion  Panel, which is a recognized                                                               
treatment alternative for minor consuming alcohol offenses.                                                                     
                                                                                                                                
He concluded that  the ABC Board composition  changes proposed in                                                               
the bill mirror  the makeup of the Marijuana Board.  He felt very                                                               
strongly about the minor consuming law revisions.                                                                               
                                                                                                                                
CHUCK  KOPP,   Staff,  Senator   Peter  Micciche,   Alaska  State                                                               
Legislature, provided an overview of SB 165.                                                                                    
                                                                                                                                
2:55:54 PM                                                                                                                    
SENATOR  COSTELLO  moved  to adopt  CSSB  165(L&C),  labeled  29-                                                               
LS1384\W,  as the  working document.  There  being no  objection,                                                               
version W was before the committee.                                                                                             
                                                                                                                                
2:56:44 PM                                                                                                                    
CYNTHIA  FRANKLIN,  Executive   Director,  Alcohol  Beverage  and                                                               
Control (ABC)  Board and Marijuana  Control Board,  Department of                                                               
Commerce,  Community and  Economic Development  (DCCED), provided                                                               
information on  SB 165. She  stated that the ABC  Board's mission                                                               
is to  control the manufacture,  barter, possession, and  sale of                                                               
alcoholic beverages in  the state. She said that most  of Title 4                                                               
has not  been updated since 1980  and the industry has  grown and                                                               
changed since then.  Much has been learned about  youth access to                                                               
alcohol and  what is, and  is not, effective in  convincing youth                                                               
to wait to use alcohol until they are of legal age.                                                                             
                                                                                                                                
She said the Title 4 review  process, which began in May of 2012,                                                               
attempted to bring together stakeholders  from all aspects of the                                                               
alcohol issue. The goals are  to promote a fair business climate,                                                               
protect  public health  and safety,  create rational  regulations                                                               
around all  tiers of  the alcohol  industry while  limiting youth                                                               
access to  alcohol and ensuring  youth are not  criminalized, and                                                               
to  promote  responsible alcohol  use  and  reduce the  harms  of                                                               
overconsumption. The process is still  on-going and the bill is a                                                               
part of this larger effort.                                                                                                     
                                                                                                                                
2:59:26 PM                                                                                                                    
MR. KOPP  provided the  genesis of the  bill. Following  a 3-year                                                               
review and update by stakeholders,  SB 99 was introduced in April                                                               
of 2015.  In December 2015  the steering committee  recommended a                                                               
new two-track process for the Title  4 rewrite. Elements of SB 99                                                               
that could  be implemented  now were inserted  into SB  165. This                                                               
will  benefit young  Alaskans and  align  the ABC  Board and  the                                                               
Marijuana Control Board.                                                                                                        
                                                                                                                                
He  described planned  future  work  that would  lead  to a  full                                                               
package of  recommendations next year.  He concluded that  SB 165                                                               
focuses on minors  on licensed premises, minors  in possession or                                                               
consuming, and ABC Board member composition.                                                                                    
                                                                                                                                
3:01:33 PM                                                                                                                    
MS.   FRANKLIN   reported   that  SB   165   creates   additional                                                               
designations of  a public safety  seat and a public  health seat,                                                               
replacing two  public seats  on the ABC  Board. She  related that                                                               
this composition  mirrors that of  the Marijuana  Control Board's                                                               
two industry  seats. She opined  that there is  little difference                                                               
between the two boards.                                                                                                         
                                                                                                                                
She  turned to  the work  on minor  consuming penalties,  most of                                                               
which are for first offenses  and one-charge situations. The bill                                                               
decriminalizes minor  consuming and makes it  a violation. Having                                                               
heavy  penalties   creates  life-long  complications.   The  bill                                                               
attempts to get clear, concise  enforcement because current court                                                               
hearing  scheme looks  very disparate,  both  racially and  socio                                                               
economically.                                                                                                                   
                                                                                                                                
3:05:12 PM                                                                                                                    
MR.  KOPP said,  in addition,  the bill  would spare  minors from                                                               
appearing on CourtView, which can  limit jobs and federal student                                                               
loans.  The bill  also gets  rid  of places  in the  law where  a                                                               
minor's  motor  vehicle insurance  and  driver's  license can  be                                                               
cancelled for non-driving offenses.                                                                                             
                                                                                                                                
3:05:59 PM                                                                                                                    
MR. KOPP presented  the sectional changes made in  Senate Labor &                                                               
Commerce.  In  Section  1,  the   section  that  related  to  the                                                               
executive director's position was removed  so as to not influence                                                               
or politicize any board appointment.  It now consists of only the                                                               
board makeup.                                                                                                                   
                                                                                                                                
In Section 8 a reference  to community diversion panels was added                                                               
to  ensure that  youth courts  and tribal  circles are  among the                                                               
options available to youth for alcohol education and treatment                                                                  
                                                                                                                                
Section 9  has a stylistic change  from "under the age  of 21" to                                                               
"under 21  years of age." It  also adds a reference  to community                                                               
diversion panels.                                                                                                               
                                                                                                                                
Section  10, deleted  from the  previous version,  was renumbered                                                               
because  it  inadvertently  limited  court  discretion  in  youth                                                               
enrolling in the Juvenile Alcohol Safety Action Program.                                                                        
                                                                                                                                
Section 11  amended court  records of persons  under 21  years of                                                               
age, adding the terms "or  a similar ordinance of a municipality"                                                               
making  clear  that  if  state  law  is  changed  to  keep  minor                                                               
consuming  and alcohol  possessions off  of CourtView,  municipal                                                               
charges would also remain off of CourtView.                                                                                     
                                                                                                                                
He concluded  that a definitions  of "community  diversion panel"                                                               
was  also added,  and the  applicability section  was amended  to                                                               
reflect  changes.  He  noted  a  minor  amendment  is  needed  to                                                               
complete the community diversion panel definition.                                                                              
                                                                                                                                
3:08:21 PM                                                                                                                    
VICE CHAIR COGHILL  noted the importance of  public testimony and                                                               
assured everyone it would be  made available at the next meeting.                                                               
He said there is a proposed amendment to SB 165.                                                                                
                                                                                                                                
He held SB 165 in committee.