Legislature(2009 - 2010)SENATE FINANCE 532
03/26/2010 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB92 | |
| SB264 | |
| SB234 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 300 | TELECONFERENCED | |
| += | HB 302 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 92 | TELECONFERENCED | |
| += | SB 234 | TELECONFERENCED | |
| += | SB 264 | TELECONFERENCED | |
SENATE BILL NO. 234
"An Act extending the termination date of the
Alcoholic Beverage Control Board; and providing for an
effective date."
2:33:07 PM
SENATOR KEVIN MEYER explained the legislation.
AS 04.06.010 established the Alcoholic Beverage
Control Board (ABC Board) and provided for the
appointment of members by the governor. The ABC Board
consists of five members appointed by the governor and
confirmed by a majority of the members of the
legislature in joint session. Two members of the board
shall be persons actively engaged in the alcoholic
beverage industry; at least three members of the board
shall represent the general public.
SB 234, if enacted, would extend the ABC Board for one
year to June 30, 2011.
In the opinion of Legislative Audit, the Alcoholic
Beverage Control Board (ABC Board) should continue to
regulate the manufacture, sale, barter, and possession
of alcoholic beverages in Alaska in order to protect
the public's health, safety, and welfare. The Board
has demonstrated a need for its continued existence by
providing protection to the general public through the
issuance, renewal, revocation, and suspension of
liquor licenses. Protection has also been provided
through active investigation of suspected licensing
violations and enforcement of the state's alcoholic
beverage control laws and regulations.
During the review process of the sunset audit, there
were questions raised about the decision of the
Legislature to move the ABC Board from the Department
of Revenue to the Department of Public Safety. These
questions should be asked and the issue investigated
in depth. This one year extension will give the
Legislature time over the interim of 2010 to review
the decision and move forward with extending the Board
to 2014 as recommended by the Division of Legislative
Audit.
Senator Olson asked to know more about the difference in
the board's department. Senator Meyer responded that the
board has demonstrated a need for its continued existence
by providing protection to the general public. The
responsibilities of the board include the issuance,
renewal, suspension of liquor license, and active
investigation of suspected license violations and
enforcement of the estate's alcohol beverage control laws
and regulations. The review process of the sunset audit
raised questions about the decision of the legislature to
move the Alcohol Beverage Compliance (ABC) board from the
Department of Revenue (DOR) to the Department of Public
Safety (DPS). He requested additional time to investigate
the questions regarding the best home for the ABC board.
The original audit recommended board extension to 2014, but
he requested an extension of one year.
Senator Olson asked why Senator Meyer chose not to extend
the board for a longer time period as recommended by
Legislative Budget and Audit (LB&A). Senator Meyer informed
that the board may shift departments. The extension would
not allow the opportunity to move the board among the
departments.
Co-Chair Stedman mentioned one fiscal note from the
Department of Public Safety.
2:37:53 PM
SHIRLEY GIFFORD, DIRECTOR, ALCOHOL BEVERAGE COMPLIANCE (via
teleconference), expressed awareness of licensee's
dissatisfaction with the ABC board. She opined that an
extension of the ABC board offers stability. She explained
that she made recommended changes. She exemplified the
issues. She applauded the efforts of the agents and servers
who make the correct decisions. She anticipated that the
changes would be well received. She wished to provide an
agency that is supportive of licensees. She understood that
licensing and enforcement comprised the two aspects of ABC.
Without enforcement, laws will be broken. When people are
held accountable and responsible then they act accordingly.
Co-Chair Stedman noted the four recommendations listed in
the audit report. Ms. Gifford explained that one major
recommendation was an enforcement plan. The other item
concerned a procedural manual. She stated that she had
organized a ten year strategic plan. All three items have
been approved by the board of directors. She stated that
she was grateful to have the audit occur at the beginning
of her appointment. She explained that the audit allowed a
road map to efficiency for the operation of the agency.
2:43:41 PM
Co-Chair Stedman expressed concern about "sting operations"
with underage persons sent into a liquor establishment to
purchase alcohol. His concern included the risk associated
with the licensed premises operator and the effect on his
insurance premiums along with potential felony charges for
the bartender.
Ms. Gifford responded that she was also concerned about the
issue. She stated that Representative Ramras had a bill
that addressed minors using illegal identification. She
stated that law enforcement must retain the focus and
priority. She mentioned that she is a member of a committee
addressing statistical crime reporting. She was pleased to
be included because departments across the state should
report Title 4 violations.
2:47:19 PM
Co-Chair Stedman clarified several concerns about minors
testing the liquor establishment by attempting to purchase
liquor as part of a "sting operation." He understood that
it was illegal to have an underage minor in a liquor
establishment although the ramifications exist only for the
business proprietor and the bartender if they sell to the
minor.
Ms. Gifford responded that Title 4 for AS 41.60.490 covers
access of persons under the age of 21 to licensed premises.
She continued that Section F of the statute reads that a
person under 21 years of age does not violate the section
if the person enters or remains on premises licensed under
this title at the request of a police officer. She stated
that the ABC board is afforded the ability to do these
compliance checks. She explained that an increase in
compliance checks led to a decrease in violations. Co-Chair
Stedman responded that the shifting of the ABC board to the
Department of Public Safety has led to increased discomfort
among proprietors.
Ms. Gifford stated that the compliance check program was
not initiated because the ABC board was placed under the
Department of Public Safety. The compliance check program
occurs across the nation in an effort to combat underage
drinking.
2:51:55 PM
Co-Chair Hoffman pointed out number 4 and number 3 of the
audit recommendation. He referred to the policy stated in
number 4 addressing a board vote during a tie breaking
situation. Ms. Gifford responded that Alaska statute covers
this issue. Ms. Gifford believed that this statute should
be changed. She noted that she agrees with the auditors
because she is in a position where she has more information
than the board.
Co-Chair Hoffman mentioned number three and the compliance.
He asked if the board records were complete and accurate.
Ms. Gifford replied that the record keeping has improved
tremendously.
2:55:24 PM
Senator Olson asked how a tie might occur with a five
member board. Ms. Gifford answered that a tie might occur
if a member of the board was absent, as a quorum exists
with four people.
Senator Thomas asked how long Ms. Gifford had been the
director. Ms. Gifford answered that she has been the
director since January 5, 2009.
Senator Thomas asked about other issues in the audit. He
asked if the four agents employed by the ABC board were
sufficient. Ms. Gifford answered that she requested
additional investigators because of duties including
inspections of licensed premises and investigations for
violations of the law. She explained that she depends on
the state troopers for help.
2:58:01 PM
Senator Thomas commented on the audit and the compliance
check program. Ms. Gifford responded that the enforcement
of the strategic plan adds a mechanism limiting visits to
establishments.
Senator Thomas asked about mailings to the licensees. He
asked about the mailings and the cost to the state. Ms.
Gifford was not aware of state mailings, but agreed to
respond to Senator Thomas at a later date.
3:00:37 PM
Co-Chair Stedman wondered how much time is given to the
entity to achieve compliance prior to elimination.
PAT DAVIDSON, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT
DIVISION, LEGISLATIVE AFFAIRS AGENCY offered that the
improvements observed in the prior audit occurred under the
current executive director. She stated that the major issue
for LB&A was establishing quantifiable and objective
enforcement goals. Enforcement is a large segment of the
ABC board. Compliance checks should not be based on the
location of the inspectors. Issues about record retention
and data input are smaller issues and do not require
reorganization of the board.
Co-Chair Stedman asked about the potential extension of the
board. He asked if one year was ample time to come into
compliance with the audits.
Ms. Davidson stated that an extension of one year means
that LB&A will revisit the board and provide the committee
with a status of the current audit recommendations.
3:03:04 PM
SB 234 was HEARD and HELD in Committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB92 Press[1].pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 92 |
| SB92 Sponsor Statement[1].pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 92 |
| SB 92 Sectional[1].pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 92 |
| SB 264 2010 HB 159 2003 backup.pdf |
SFIN 3/26/2010 1:30:00 PM |
HB 159 SB 264 |
| SB 264 2010 Payments for Examinations.pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 264 |
| SB 264 2010 Sectional.pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 264 |
| SB 264 2010 Sponsor Statement.pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 264 |
| SB92 Letters of Support.pdf |
SFIN 3/26/2010 1:30:00 PM SJUD 2/19/2010 1:30:00 PM |
SB 92 |
| SB 264 CFAB Mar 2003 Ltr HB 159.pdf |
SFIN 3/26/2010 1:30:00 PM |
HB 159 SB 264 |
| SB 264 Support Letter Huppert 2010.pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 264 |
| SB 92 RNC letter of support.pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 92 |
| SB92 Letters of Support[1].pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 92 |
| SB 92 National Popular Vote 2010.pdf |
SFIN 3/26/2010 1:30:00 PM |
SB 92 |