Legislature(2015 - 2016)BELTZ 105 (TSBldg)
03/30/2016 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB8 | |
| Overview: U.s. Supreme Court Decision Sturgeon Vs. Frost | |
| SB165 | |
| SB103 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 103 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 165 | TELECONFERENCED | |
| += | SB 8 | TELECONFERENCED | |
SB 165-ALCO. BEV. CONT. BOARD; MINORS; ALCOHOL
1:56:42 PM
CHAIR MCGUIRE announced the consideration of SB 165. She noted
this is the second hearing and the committee substitute, version
W, is before the committee.
1:57:03 PM
SENATOR MICCICHE moved Amendment 1, labeled 29-LS1384\W.1.
AMENDMENT 1
OFFERED IN THE SENATE
TO: CSSB 165(L&C)
Page 5, line 1, following "completion of":
Insert "(1)"
Page 5, line 2:
Following the first occurrence of "program":
Delete ","
Insert "or"
Following the second occurrence of "program":
Delete ", or a community diversion panel"
Page 5, line 4, following "AS 47.37":
Insert "; or
(2) a community diversion panel"
Page 5, line 18:
Following "completion of":
Insert "(1)"
Following "program":
Delete ","
Insert "or"
Page 5, line 19, following "program":
Delete ", or a community diversion panel"
Page 5, line 20, following "AS 47.37":
Insert "; or
(2) a community diversion panel"
Page 6, line 14:
Delete "selected by the court to serve"
Insert "serving"
CHAIR MCGUIRE objected for an explanation.
1:57:21 PM
CHUCK KOPP Staff, Senator Peter Micciche, Alaska State
Legislature, explained that Amendment 1 for SB 165 distinguishes
between the Alcohol Safety Action Program (ASAP) and the
Juvenile Safety Action Program (JSAP) that are approved by the
Department of Health and Social Services (DHSS) and community
diversion panels that are used by tribal circles and youth
courts. These are the treatment options a person has for getting
a fine reduced from $500 to $50.
2:01:49 PM
CHAIR MCGUIRE removed her objection and Amendment 1 was adopted.
CHAIR MCGUIRE opened public testimony.
2:02:34 PM
KIRSTEN MYLES, Director, Cook Inlet CHARR, testified in
opposition to SB 165. She expressed concern that SB 165 will do
away with the balanced decision-making of the current Alcoholic
Beverage Control (ABC) Board and turn it into a group with an
anti-alcohol agenda. As currently written, the potential is
great that three of the five board members will have backgrounds
from rural, public safety, and health and social services, all
of which are traditionally anti-alcohol. A board with this
perspective could differ greatly from the interpretation of
business that recognizes the economic and social benefits of the
hospitality industry. She urged the committee to hold SB 165.
2:04:00 PM
DALE FOX, President and CEO, Alaska CHARR, testified in
opposition to SB 165. He stated that the board and government
affairs committee voted unanimously to oppose SB 165. He said he
attended the meetings in good faith for three years and
consensus was not reached in the committee process. Claims to
the contrary are simply not true. Research on other boards in
Alaska shows they are made up of a majority of industry members
with a few public members. As currently drafted, the composition
of the ABC Board will be anti-alcohol, which will not lend
itself to a reasonably regulated industry. He reiterated that
Alaska CHARR does not support SB 165 and doesn't believe the
industry supports it.
2:06:39 PM
SENATOR WIELECHOWSKI joined the committee.
ELIZABETH RIPLEY, Executive Director, Mat-Su Health Foundation,
testified in support of SB 165. She reported that that Mat-Su
Health Foundation conducted a community health needs assessment
in 2013 and alcohol and substance abuse was ranked as the number
one health issue. When asked, the local police captains
reinforced that alcohol was the number one problem. She related
that the foundation is a funding partner of Recover Alaska,
which aims to reduce the harm done by alcohol throughout the
state by employing environmental strategies. This includes
uniform enforcement which SB 165 provides for minor consuming.
They also support the change in composition of the ABC Board.
She pointed out that alcohol isn't an ordinary commodity; it
brings in revenue but it has enormous costs associated with its
use. She highlighted that Alaska is the only state that has
given the alcohol industry such a prominent voice on its
regulatory board, and insisted that the board instead needs to
more fairly represent the interests of all Alaskans. This can be
accomplished by designating seats for public safety and public
health and ensuring that they clearly outnumber industry seats.
She urged the committee to pass SB 165.
CHAIR MCGUIRE asked for an example of the laws that she hopes to
change as a result of the change in composition of the board.
MS. RIPLEY clarified that the foundation is not advocating for
policies that eliminate the sale of alcohol but would advocate
for higher alcohol taxes and policies that restrict the density
of alcohol outlets, create an environment where youth are
prevented from having access to alcohol and where they see
social norms that do not promote heavy use and abuse of alcohol.
2:10:33 PM
KATIE KRAMARSYCK, Juneau Youth Services (JYS), testified in
support of SB 165. She informed the committee that JYS provides
outpatient substance abuse treatment to youth. She said JYS
supports the new composition of the ABC Board. The hope is that
it will provide a more balanced representation from community
members and be more consistent with the new Marijuana Control
Board. JYS also supports the change in the minor consuming law
from a class A misdemeanor to a violation with a $500 fine. The
existing minor consuming laws are enforced inconsistently and
have led to few referrals for treatment. The hope is that
changing to a $500 citation will lead to better enforcement and
more referrals for treatment. JYS also supports reducing the
fine to $50 upon proof of participation in ASAP, JSAP or
community treatment programs because it provides excellent
incentive for youth to go to treatment.
2:13:22 PM
JACK MANNING, President, Juneau CHARR and owner of the Duck
Creek Market, testified in opposition to SB 165. He stated that
CHARR doesn't object to the youth portion of SB 165, but he
doesn't understand the urgency of pulling the composition of the
ABC Board out of the original SB 99. He questioned whether the
board would function properly and result in litigation because
the people wouldn't have business backgrounds. The 1,800 liquor
license holders in the state ought to be made aware of these
changes and be factored into the formula of the makeup of the
board, he said.
CHAIR MCGUIRE said she, too, was concerned about the board
composition and didn't necessarily support it, but it's part of
a package that has good provisions for young people. She asked
if he anticipates similar problems as those that occurred when
the Murkowski Administration put the board under the Department
of Public Safety. It became an agenda-driven mission to perform
stings and she and Senator Meyer felt compelled to sponsor
legislation to move the agency back to DCCED.
MR. MANNING said DPS at the time focused its enforcement efforts
entirely on alcohol licenses and doing stings. Nothing was spent
on any other prevention methods despite the fact that the most
common way for youth to access alcohol is at home. He related
that during that time he could go to court and get $1,000 from a
minor who came into his store and tried to buy alcohol. He
always thought it would be better to give the youth a choice of
going to court or going to a school assembly to talk about minor
consuming from their personal perspective.
CHAIR MCGUIRE said her concern about changing the makeup of the
board is that rural, health, or public safety representatives
may come in with an agenda.
2:23:28 PM
PAUL THOMAS, Treasurer, Juneau Lynn Canal CHARR and owner of the
Alaska Cache Liquor, testified in opposition to SB 165. He said
he was a member of two of the ABC committees that have been
working on Title 4 since 2012, and he believes the bill is a
step backwards and will have the effect of damaging the
cooperative environment that the industry and board have been
building. The diverse group working under the ABC steering
committee did talk about the composition of the board, but this
concept was not considered and would not have been supported.
The current composition works well and should not be changed. He
urged the committee to hold the bill and instead pass the
complete package that reflects the cooperative work from
stakeholders and the board.
2:26:12 PM
LEEANN THOMAS, CHARR member and owner of the Triangle Club Bar,
testified in opposition to SB 165. She said that for two years
she actively participated in the Title 4 rewrite and is totally
against pulling elements from that comprehensive legislation and
placing it in a separate bill. She emphasized the advantage of
bringing Title 4 forward in one piece to ensure that it works
together. She pointed out that it doesn't work now because of
the piecemeal approach. In particular, she objected to the
composition of the board. She said two industry seats is
insufficient, and that number could potentially drop to one. She
maintained that the non-industry members would not be
knowledgeable enough to make decisions about licenses.
2:30:40 PM
JEFF JESSEE, Chief Executive Officer, Alaska Mental Health Trust
Authority, expressed dismay at some of the testimony he'd heard
today on SB 165. He directed attention to the letter in the
packets from the co-chair of the Title 4 revision committee that
clearly sets out that the composition of the board was discussed
and consensus was gained on adding public health and public
safety seats to the board. To claim otherwise is simply not
true, he said. He also stated that the argument that
professional licensing boards are primarily made up of members
of that profession is irrelevant because the ABC Board is
regulatory and not a professional licensing board. Just as it
wouldn't be appropriate to weight the Oil and Gas Commission
with members from the oil and gas industry, it isn't appropriate
for a majority of the ABC Board to be actively engaged in the
industry that is being regulated. He agreed with previous
testimony that the current composition of the board that
includes two members from the alcohol industry is unprecedented
nationwide. He said he'd be happy to discuss, in public meetings
or with members separately, the kinds of problems that have
occurred because of the industry domination of this board.
CHAIR MCGUIRE requested he give examples for the record.
MR. JESSEE said one example is that the ABC Board devised a
scheme that allowed a Fairbanks bar to continue to operate after
it failed to renew its liquor license. The ABC Board issued a
second bar week-long catering permits that allowed it to cater
the operations of the first bar whose license had lapsed. This
went on week after week. Manipulation of a recreational site
license provides a second example. That statute clearly states
that those licenses are for seasonal events that allow the sale
of beer and wine an hour before and an hour after the event. It
is used for events like baseball and hockey games. A billiards
parlor applied for and received a recreational site license, and
the justification was that people play pool. Other billiards
parlors then applied for licenses so they wouldn't be at a
competitive disadvantage. At some point, the Alaska Club
received a recreational site license that allowed the sale of
beer and wine during operating hours seven days a week. There
was no event, no season, and had nothing to do with a
recreational site as envisioned by the legislature. The board
expanded this license type so far that even CHARR eventually
objected saying it had the potential to diminish their licenses.
MR. JESSEE said the forgoing examples are exactly why public
health and public safety should be represented on the ABC Board.
That voice needs to be heard consistently so other agencies
don't need to constantly birddog the board's activity and
interpretation of the statutes. The legislature recognized the
importance of public health and safety when it formed the
marijuana board and it's just as appropriate for this board, he
said.
2:37:29 PM
ELLEN GANLEY, Vice Chair, ABC Board, related that she serves as
a public member of the board and has a public health background.
She fully supports the changes to the composition of the board,
and believes that it gives an opportunity to bring in voices
that represent other constituencies. She also stated support for
the changes to the minor consuming statutes, because issuing
tickets as opposed to misdemeanors will help identify the scope
of the problem in the state.
2:39:22 PM
CHYSTAL SCHOENROCK, Business owner, Forelands Bar, and CHARR
member, testified in opposition to SB 165. She questioned
whether the bill wasn't a backdoor approach to return oversight
of the ABC Board to the Department of Public Safety. She
stressed that there is no reason to change a fair system that
has worked for many years.
2:40:29 PM
LARRY HACKENMILLER, representing himself, testified in
opposition to SB 165. He said the concerns Mr. Jessee expressed
have been addressed in three years of regulation writing. He
continued to say that contrary it the sponsor's remarks and Mr.
Klein's representation, the Alaska CHARR government affairs
committee did not arrive at a consensus to change the makeup of
the ABC Board. He said the existing composition of the board
works and does allow for someone from the fields of public
health and public safety to be appointed. This mandated change
isn't warranted and the accompanying education component isn't
called for in the statute. He also questioned the purpose of
putting law enforcement on the board, because public safety
concerns are not impaired by having two public members on the
board. The changes to the minor consuming laws does cut some red
tape but would be more appropriate in the comprehensive SB 91.
Finally, he described the ABC Board as a licensing board that is
appropriately housed under DCCED.
2:43:30 PM
CHAIR MCGUIRE closed public testimony on SB 165.
2:43:48 PM
At ease
2:48:02 PM
CHAIR MCGUIRE reconvened the meeting and offered Conceptual
Amendment 2 to SB 165.
CONCEPTUAL AMENDMENT 2
OFFERED IN THE SENATE JUDICIARY COMMITTEE
TO SB 165
AS 12.62.400(a) is amended by inserting a new
paragraph (18) that reads:
(18) a registration or license to operate a
marijuana establishment 31 under AS 17.38.
AS 17.38.200(a) is amended to read:
(a) Each application or renewal application for a
registration to operate a marijuana establishment
shall be submitted to the board. A renewal application
may be submitted up to 90 days before [PRIOR TO} THE
EXPIRATION OF THE MARIJUANA ESTABLISHMENT'S
REGISTRATION. When filing an application under this
subsection, the applicant shall submit the applicant's
fingerprints and the fees required by the Department
of Public Safety under AS 12.62.160 for criminal
justice information and a national criminal history
record check. The board shall forward the fingerprints
and fees to the Department of Public Safety to obtain
a report of criminal justice information under AS
12.62 and a national criminal history record check
under AS 12.62.400.
SENATOR COGHILL objected for an explanation.
CHAIR MCGUIRE explained that the bill that gave the Marijuana
Control Board the authority to issue licenses, included a
requirement that all applicants submit to a criminal background
check. This was to ensure that licenses are not issued to
felons. In an oversight, the bill didn't give the Department of
Commerce, Community and Economic Development (DCCED) the
specific statutory authority to request a national criminal
history record check. She said she is offering the amendment
conceptually so the drafter can comport it to SB 165.
2:49:31 PM
SENATOR COGHILL removed his objection.
SENATOR WIELECHOWSKI highlighted a clerical error in the new
paragraph (18).
2:49:55 PM
At ease
2:50:48 PM
CHAIR MCGUIRE reconvened the meeting and asked Senator
Wielechowski to offer an amendment to Conceptual Amendment 2.
SENATOR WIELECHOWSKI moved to strike the number "31" in the new
paragraph 18. [It appears between the words "establishment" and
"under".]
CHAIR MCGUIRE found no objection and announced that Conceptual
Amendment 2, as amended, is adopted.
2:51:50 PM
SENATOR MICCICHE spoke of the testimony he heard today and
clarified that he does not support moving the ABC Board back to
the Department of Public Safety and he does have documents that
clearly show what CHARR agreed to. He said his perspective is
that after a great number of steering committee meetings that
included the industry, they had a bill that was ready and at the
last moment CHARR indicated it wasn't ready. Because of that he
introduced SB 165 that includes two things that everybody had
agreed on. He read excerpts from steering committee minutes on
10/5/15 regarding composition of the board and a letter from the
CHARR government affairs committee dated 1/22/16. In that
letter, CHARR said:
Alternatively, the industry committee suggests that
the composition of the ABC Board and the minor
consuming sections could remain intact if we added a
section to reduce the class A misdemeanors for
licensees in Title 4 to violations with language
approved by both the steering committee and the CHARR
government affairs committee.
SENATOR MICCICHE emphasized that the Title 4 rewrite effort will
continue and the remainder of the original bill will deliver the
results that CHARR wants. But the provisions in SB 165 were
agreed upon and it's appropriate to make those changes now, this
legislative session. He reiterated support for the alcohol
industry as an important part of Alaska's economy and again
emphasized that the bill does not have a hidden agenda and the
industry should not be blamed for the social ills associated
with over-consumption of alcohol. The bill is an effort to help
the industry partner with communities to attain a healthier
Alaska.
CHAIR MCGUIRE offered her understanding that work would continue
on the larger rewrite of Title 4.
2:57:45 PM
SENATOR WIELECHOWSKI said he supports a lot of things in the
bill, but it's moving a little fast. The bill was heard
previously in Senate Labor and Commerce but there is only one
day of published minutes available. On Monday the bill received
a quick introduction and 23 people were signed up to testify.
Today the hearing has lasted just 45 minutes to an hour. He
noted there is no other committee of referral and he'd feel more
comfortable if there was more time to study it before reporting
it out.
SENATOR COSTELLO, speaking as Chair of the Senate Labor and
Commerce Committee, clarified that every bill that is referred
to that committee receives at least two hearings and all the
public comment.
CHAIR MCGUIRE said her inclination is to move the bill today,
but she would take additional amendments.
2:59:18 PM
At ease
3:00:10 PM
CHAIR MCGUIRE reconvened the meeting and solicited a motion.
3:00:18 PM
SENATOR COGHILL moved to report the CS for SB 165, as amended,
from committee with individual recommendations and attached zero
fiscal note.
SENATOR WIELECHOWSKI objected.
CHAIR MCGUIRE asked for a roll call.
A roll call vote was taken. Senators Coghill, Costello,
Micciche, and McGuire voted in favor of the motion to move SB
165 from committee and Senator Wielechowski voted against it.
Therefore, by a vote of 4:1 CSSB 165(JUD) was reported from the
Senate Judiciary Standing Committee.
3:01:05 PM
SENATOR MICCICHE stated his intention to remain engaged and
ensure that members who are appointed to the board do not have a
record of opposing the industry.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 165 Support Klien Jessee.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 165 |
| SB 165 Opposition Shapiro.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 165 |
| SB 165 Fiscal Note Courts.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 165 |
| SB 103 MSBSD Testimony.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 103 |
| SB 103 Opposition ASD 3.9.16.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 103 |
| SB 8- CS Version W.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 8 |
| SB 103 Letter of Support Northstar.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 103 |
| SB 165 Opposition Stewart.msg |
SJUD 3/30/2016 1:30:00 PM |
SB 165 |
| SB 165 Opposition Matthews.msg |
SJUD 3/30/2016 1:30:00 PM |
SB 165 |
| SB 103 Opposition Gov. Council on Disabilities.pdf |
SJUD 3/30/2016 1:30:00 PM |
SB 103 |