04/02/2010 09:00 AM Senate FINANCE

SENATE BILL NO. 234                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the                                                                              
     Alcoholic Beverage Control Board; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
Co-Chair Hoffman MOVED  to ADOPT the CS for  SB 234, labeled                                                                    
26-LS1350\E, Bullard, 3/31/10.                                                                                                  
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
DARWIN  PETERSON,  STAFF,  CO-CHAIR STEDMAN,  explained  the                                                                    
changes in the new CS. The  first change is in Section 1 and                                                                    
deals  with  the  quorum  for  the  board.  Previously,  the                                                                    
executive director was  allowed to vote in order  to break a                                                                    
tie. Now, the executive director can no longer vote.                                                                            
                                                                                                                                
Mr. Peterson  highlighted a second  change found  in Section                                                                    
2, dealing  with the statewide  database. The  board creates                                                                    
and maintains  a statewide database on  liquor purchased and                                                                    
shipped to rural parts of  the state. Currently, information                                                                    
in  the database  is available  to package  store licensees,                                                                    
law  enforcement, probation  officers,  and  the board.  The                                                                    
change is found on page 2,  line 19-21, where now the person                                                                    
who is  the subject  of the information  also has  access to                                                                    
that information.                                                                                                               
                                                                                                                                
Mr. Peterson  detailed the third  change, which is  found on                                                                    
page 2, line  25, in Section 4. Two sections  in the alcohol                                                                    
title  are being  repealed.  The board  would  no longer  be                                                                    
allowed to use  minors to access as apprentices  if they are                                                                    
with a law enforcement officer.                                                                                                 
                                                                                                                                
9:07:07 AM                                                                                                                    
                                                                                                                                
Senator   Olson  reported   that  initially   the  executive                                                                    
director  was  given the  opportunity  to  vote because  the                                                                    
board only  had five members.  He asked what was  planned to                                                                    
deal with a  2-2 split. Mr. Peterson replied  that the board                                                                    
would have  to wait until they  had a quorum. At  a previous                                                                    
hearing the executive director  testified that she supported                                                                    
the change. Senator Olson restated  his question to ask what                                                                    
the  mechanism  would  be  to  rectify  a  split  vote.  Mr.                                                                    
Peterson  explained that  the issue  before the  board would                                                                    
not pass and  the board would have to wait  for five members                                                                    
to be present.                                                                                                                  
                                                                                                                                
Senator  Ellis thought  one of  the  proposed changes  would                                                                    
remove  a primary  tool of  enforcement  related to  selling                                                                    
alcohol to  underage Alaskans. He questioned  the rationale.                                                                    
Mr. Peterson explained that in  a previous hearing the chair                                                                    
testified that  he felt it was  unfair for the board  to use                                                                    
minors when the owner of  the premises and the employees are                                                                    
at complete risk and the  minor, according to state statute,                                                                    
is not  allowed to access  those premises without  an adult.                                                                    
The chair decided  to remove those sections  from statute so                                                                    
that the  inconsistency was no  longer in place. Now,  it is                                                                    
up  to the  owner  of the  bar and  the  bartenders to  card                                                                    
everyone who looks underage.                                                                                                    
                                                                                                                                
9:09:27 AM                                                                                                                    
                                                                                                                                
Senator  Ellis asked  if law  enforcement  has expressed  an                                                                    
opinion about  the change.  Mr. Peterson  said that  the law                                                                    
enforcement  agency had  not been  asked  about the  change.                                                                    
Senator Ellis suggested that be done.                                                                                           
                                                                                                                                
Co-Chair Stedman  WITHDREW his OBJECTION to  the adoption of                                                                    
the new CS.                                                                                                                     
                                                                                                                                
Senator Ellis OBJECTED.                                                                                                         
                                                                                                                                
Senator  Olson spoke  from the  experience of  having run  a                                                                    
business  and  having  been wary  of  sting  operations.  He                                                                    
commented in favor of the change in the new CS.                                                                                 
                                                                                                                                
Senator  Ellis   stated  that  he  preferred   to  have  law                                                                    
enforcement contacted in order to  know if this is the right                                                                    
policy call.                                                                                                                    
                                                                                                                                
9:11:33 AM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Egan, Huggins, Olson, Thomas, Hoffman, Stedman                                                                        
OPPOSED: Ellis                                                                                                                  
                                                                                                                                
The motion to adopt CSSB 234 (FIN) passed (6-1).                                                                                
                                                                                                                                
SB  234  was  heard  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:12:21 AM