Legislature(2003 - 2004)

03/18/2004 02:15 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 428 - CIVIL PENALTY: UNDERAGE ALCOHOL PURCHASES                                                                            
                                                                                                                                
Number 0579                                                                                                                     
                                                                                                                                
CHAIR McGUIRE  announced that  the final  order of business  would                                                              
be HOUSE  BILL NO. 428,  "An Act relating  to civil  liability for                                                              
acts related  to obtaining alcohol  for persons under 21  years of                                                              
age  or for  persons  under  21 years  of  age being  on  licensed                                                              
premises."                                                                                                                      
                                                                                                                                
Number 0629                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KEVIN MEYER,  Alaska  State Legislature,  sponsor,                                                              
indicated that  the concept  behind HB 428  offers a  good example                                                              
of  the community  working  together  to  aid law  enforcement  in                                                              
enforcing "our  alcohol laws."   House Bill 428  allows businesses                                                              
to file a civil  action against minors who try to  buy alcohol and                                                              
against adults who  buy alcohol for minors.   The penalty provided                                                              
for in  HB 428 is $1,000.   He noted  that what is  being proposed                                                              
in  HB  428  is already  occurring  in  Anchorage  under  a  local                                                              
ordinance; Brown  Jug, Inc. ("Brown Jug"), and  Chilkoot Charlie's                                                              
have been  making use  of this Anchorage  ordinance, and  this has                                                              
sparked interest  in other  parts of the  state.  He  relayed that                                                              
Brown Jug is  willing to waive $700  of the $1,000 penalty  if the                                                              
person agrees to attend alcohol education programs.                                                                             
                                                                                                                                
REPRESENTATIVE  MEYER offered  his understanding  that almost  all                                                              
of the  people that have  been given the  option of  paying $1,000                                                              
or paying  $300 and attending the  programs opt for  attending the                                                              
programs and paying  the lesser amount.  He characterized  this as                                                              
a win-win  situation; "it's  a win for  the community, it's  a win                                                              
for the person who  was caught buying for the minor  and the minor                                                              
who  tried  to buy."    Alcohol  is  the drug  of  choice  amongst                                                              
Alaska's youth,  he remarked, adding  that he highly  endorses the                                                              
program  encompassed  in  HB  428   and  is  proud  to  bring  the                                                              
legislation  forward because it  will help  deter both  minors and                                                              
adults.                                                                                                                         
                                                                                                                                
CHAIR McGUIRE  said she liked  the alcohol education  option being                                                              
offered by Brown  Jug, surmising that those who've  just turned 21                                                              
may not realize the seriousness of buying alcohol for minors.                                                                   
                                                                                                                                
REPRESENTATIVE  MEYER said  that according  to his  understanding,                                                              
there are situations  involving teenage girls who  unknowingly ask                                                              
sexual  predators  to  buy  them  alcohol, and  this  is  why  the                                                              
organization  Standing Together  Against  Rape  (STAR) has  gotten                                                              
involved  in  the  training  aspect   currently  taking  place  in                                                              
Anchorage.                                                                                                                      
                                                                                                                                
Number 0950                                                                                                                     
                                                                                                                                
BRENDA  SADLER,  President,  Fairbanks  Chapter,  Mothers  Against                                                              
Drunk  Driving (MADD),  said that  alcohol  consumption by  minors                                                              
continues to be  a challenge to the health, safety,  and wellbeing                                                              
of the  Fairbanks community.  On  behalf of the  Fairbanks chapter                                                              
of  MADD,  she  asked  [the  committee]  to  support  the  changes                                                              
encompassed in HB  428 as a proactive way to halt  the purchase of                                                              
alcoholic  beverages  for minors.    "Please remember  ...  [that]                                                              
minors,  too, may  be behind  the wheel  when a loved  one or  [a]                                                              
friend of  yours or mine  becomes the victim  of a  drunk driver,"                                                              
she said in conclusion.                                                                                                         
                                                                                                                                
Number 1012                                                                                                                     
                                                                                                                                
CINDY  CASHEN,   Executive  Director,   Juneau  Chapter,   Mothers                                                              
Against Drunk  Driving (MADD),  noted that  she would  be speaking                                                              
on  behalf of  the Juneau  and Anchorage  chapters of  MADD.   She                                                              
said:                                                                                                                           
                                                                                                                                
     We support  House Bill  428, as we  feel it will  assist                                                                   
     in    the     prevention    of    underage     drinking.                                                                   
     Representative  Meyer's  bill  will  provide a  tool  to                                                                   
     Alaska   liquor  licensees,   and  empower   responsible                                                                   
     businesses to  participate in community policing.   Last                                                                   
     year there  was a  youth risk behavior  survey -  YRBS -                                                                   
     that  came  out,  and  42   schools  from  19  districts                                                                   
     [participated]   in  it,  and   there  2,175   completed                                                                   
     questionnaires, grades  9 through 12.  And  according to                                                                   
     the YRBS,  ... 38.7 percent  of teenagers who  completed                                                                   
     the  survey  claimed that  they  had  had at  least  one                                                                   
     drink in  the 30  days prior.   Over 26 percent  claimed                                                                   
     that  they had  consumed five  or more  drinks within  a                                                                   
     couple of hours in the 30 days prior to the survey.                                                                        
                                                                                                                                
     In comparison,  when you compare  it to Alaska  Adults -                                                                   
     of 29.9 percent  - that percentage is not  that far away                                                                   
     from the  adults, so  the youth are  catching up  to the                                                                   
     adults  as far as  binge drinking.   This [YRBS]  showed                                                                   
     that Alaska  high school students had their  first drink                                                                   
     of  alcohol before  the age  of 13 -  ... 23.2  percent.                                                                   
     That  is  a  decrease  from 36.7  percent  in  1995,  so                                                                   
     education  is having  some  effect,  however, the  binge                                                                   
     drinking has  not changed.  This bill would  change that                                                                   
     because it  would [deter] kids  who would otherwise  try                                                                   
     to  get someone  to buy alcohol  for them  and it  would                                                                   
     [deter]  those  who might  consider  purchasing  alcohol                                                                   
     for our teens.                                                                                                             
                                                                                                                                
Number 1133                                                                                                                     
                                                                                                                                
LOGAN  SPENCER,  Youth  in Action  (YIA),  Mothers  Against  Drunk                                                              
Driving (MADD), said  that YIA is opposed to  teen lifestyles that                                                              
feature alcohol outside  of its legal uses, and  believes that any                                                              
legislation  that   can  help   prevent  underage  purchasing   or                                                              
drinking is good  legislation.  He urged the committee  to pass HB
428 to  keep minors safer and  empower businesses to  police minor                                                              
alcohol-consumption.    In  response  to questions  he  said  that                                                              
although underage  drinking is becoming  less "cool," it  is still                                                              
looked upon  as "normal"  behavior, particularly for  high-school-                                                              
age  kids.   He remarked  that education  programs are  effective,                                                              
but  lots  of kids  like  to  drink  simply  because doing  so  is                                                              
"against  the rules."   He opined  that HB  428 will be  effective                                                              
because  one thing  that teenagers  don't  want to  lose is  their                                                              
financial  freedom, whereas  they sometimes  simply look  at their                                                              
minor consuming convictions as "badges of honor."                                                                               
                                                                                                                                
Number 1308                                                                                                                     
                                                                                                                                
O.C.  MADDEN  III, Brown  Jug,  Inc.,  said that  he'd  approached                                                              
Anchorage Assembly  member, Anna Fairclough, to get  the Anchorage                                                              
ordinance  passed.    After  its   enactment,  he  said  that  his                                                              
organization  was   able  to  get   together  with   Akeela,  Inc.                                                              
("Akeela"),  and STAR  to  create "this  diversion  program."   He                                                              
went on to say:                                                                                                                 
                                                                                                                                
     By using  the civil penalty,  we're able to  take action                                                                   
     against  the minors  and adults involved,  and then  use                                                                   
     that  as   leverage  to  get   them  involved   in  some                                                                   
     treatment  programs.   One of the  things that's  really                                                                   
     exciting  about  this  is  that  we've  got  almost  100                                                                   
     percent   response  rate  from   the  kids  that   we've                                                                   
     approached  with this  diversion program.   And ...  the                                                                   
     way  it works  is, they  pay $300  - which  goes to  ...                                                                   
     offset administrative  costs and to  pay a bonus  to the                                                                   
     employee  -  then we  will  waive  $700 [of]  the  civil                                                                   
     penalty,  and the  minors and  the  adults involved  are                                                                   
     required  to go  through some  classes with  Akeela -  a                                                                   
     16-hour  class with  them, a  (indisc.) -  go through  a                                                                   
     victim  impact panel with  MADD, and  then a class  with                                                                   
     [STAR].  And we've found this very effective.                                                                              
                                                                                                                                
Number 1428                                                                                                                     
                                                                                                                                
     Over the  last couple of years  we've made close  to 120                                                                   
     arrests  of adults  purchasing  alcohol  for minors  and                                                                   
     minors  soliciting adults to  buy.   I'd say we've  been                                                                   
     able  to identify three  primary groups  of people  that                                                                   
     buy alcohol for  minors.  The first group  is the friend                                                                   
     or older  relative ...  of the  minor, the second  group                                                                   
     is  public  inebriates,  and  the  third  group  is  sex                                                                   
     offenders.    We  have  caught  a  number  of  kids  who                                                                   
     approach  public inebriates  to  buy  alcohol for  them;                                                                   
     they'll  go find  the guy  standing on  the corner  with                                                                   
     the  "will work  for food"  sign.   And  in many  cases,                                                                   
     these  kids have  no  idea  who it  is or  the  criminal                                                                   
     history of the  person that they're dealing  with.  It's                                                                   
     a very dangerous  situation for the kid.   And for those                                                                   
     reasons (indisc.  - paper rustling) education  component                                                                   
     was  very, very  important,  and  we're seeing  a  great                                                                   
     deal  of success (indisc.)  virtually  all the kids  are                                                                   
     signing up and  about 40 percent of the  adults, so far,                                                                   
     that we've approached have signed up.                                                                                      
                                                                                                                                
MR.  MADDEN,   in  response   to  a   question,  noted   that  his                                                              
organization  does have  difficulty  contacting public  inebriates                                                              
and  so is  not having  any success  collecting  the penalty  from                                                              
them, but is having  success with the adults it is  able to get in                                                              
contact with.   In response to further questions,  he relayed that                                                              
one suggestion  he's made is to  mandate that licensees  seize IDs                                                              
when  they know  they are fake  ID's or  when they  know that  the                                                              
person  attempting to  buy alcohol  is underage.   He pointed  out                                                              
that  as long  as  an  ID is  not  seized  for personal  use,  the                                                              
seizure of an ID  does not expose a licensee, or  an employee of a                                                              
licensee,  to liability.   He elaborated,  "It's  legal for  us to                                                              
hold evidence  that a crime  has been committed  in order  to turn                                                              
it  over to  a  law enforcement  agency."    He relayed  that  his                                                              
organization  has  seized  close to  1,000  IDs  in the  last  six                                                              
years,  and these  IDs  have been  turned  over  to the  Alcoholic                                                              
Beverage  Control  Board ("ABC  Board");  there have  no  problems                                                              
with anyone trying to sue Brown Jug for seizing the IDs.                                                                        
                                                                                                                                
Number 1596                                                                                                                     
                                                                                                                                
DALE  FOX,   Executive  Director,   Cabaret  Hotel   Restaurant  &                                                              
Retailers  Association (CHARR),  relayed  that  "the CHARR  group"                                                              
unanimously  supports  HB 428,  which  CHARR believes  will  deter                                                              
illegal drinking  by underage  individuals,  and which is  exactly                                                              
what responsible  liquor license holders  want.  In response  to a                                                              
question, he said  that CHARR is in favor of  people following the                                                              
law, which currently states that the drinking age is 21.                                                                        
                                                                                                                                
CHAIR  McGUIRE posited  that this  age limitation  is intended  to                                                              
not only  prevent people from  purchasing alcohol before  they are                                                              
21 but also  to prevent them  from being exposed to  alcohol while                                                              
they're under 21.                                                                                                               
                                                                                                                                
REPRESENTATIVE  GARA  said  he  has no  problem  with  the  $1,000                                                              
penalty, but  noted that  only one  company is actually  assisting                                                              
people  with  getting  past  their alcohol  problems.    He  asked                                                              
whether  all members  of  CHARR  have been  surveyed  to find  out                                                              
whether  any of  them will  be willing  put  monies received  from                                                              
these civil actions towards alcohol education programs.                                                                         
                                                                                                                                
MR. FOX  indicated that there  has been no  such survey.   He went                                                              
on to say:                                                                                                                      
                                                                                                                                
     But  what   we  have  talked   about  is  some   guiding                                                                   
     principles; the  guiding principle of  being responsible                                                                   
     for  your actions  is  one of  the  principles that  the                                                                   
     CHARR  board has discussed.   And  the trend in  society                                                                   
     for everybody  else to  be responsible  for what  you do                                                                   
     is one  that we  don't accept.   And this assessment  of                                                                   
     penalties  against  the perpetrators  -  either the  ...                                                                   
     people  that  are  buying  for  young  people  or  young                                                                   
     people that  are trying to take  fake IDs and go  into a                                                                   
     place - puts  the responsibility, that is  shared by the                                                                   
     license holder  because there  are serious penalties  if                                                                   
     we  sell alcohol  to people,  puts  the penalties  where                                                                   
     they  belong   and  personal  responsibility   where  it                                                                   
      belongs.  So this is a vehicle to make that happen.                                                                       
      But in terms of what will the 1,800 license holders                                                                       
     across the state do with this, I don't know.                                                                               
                                                                                                                                
REPRESENTATIVE GARA  asked Mr. Fox whether it is  important to him                                                              
that liquor establishments  receive the money, or  could the money                                                              
just be remitted to local municipalities or to the state.                                                                       
                                                                                                                                
Number 1712                                                                                                                     
                                                                                                                                
MR. FOX  said that because  the asset that  is at risk if  a minor                                                              
buys alcohol  is the  business license,  it seems reasonable  that                                                              
business  owners  should  be  rewarded   for  strengthening  their                                                              
procedures pertaining  to catching minors and the  adults that buy                                                              
for them.   He mentioned  that the CHARR  board has  not discussed                                                              
in any  detail whether  it would  matter if HB  428 is  amended to                                                              
have the  money go to local  municipalities; the CHARR  board does                                                              
not yet have a position on such a change.                                                                                       
                                                                                                                                
MR. MADDEN  relayed that  one of  the arrests  that was  made last                                                              
year  involved  a  young  man buying  alcohol  for  a  carload  of                                                              
minors,  and  although  written  confessions  were  obtained  from                                                              
everyone  at  the  time,  they ultimately  decided  to  fight  the                                                              
charge.   As a  result, Brown  Jug ended  up going  to trial,  the                                                              
trial lasted  two days, tying  up the resources  of the  state for                                                              
two  days, and  the young  man  ended up  paying  only $100  fine.                                                              
That case prompted  Brown Jug to approach Ms.  Fairclough with the                                                              
concept that later  became the Anchorage ordinance.   And although                                                              
the state  has the ability  to fine someone  up to $5,000  for the                                                              
crime  of buying alcohol  for minors,  he remarked,  he has  never                                                              
seen  it done,  and  opined that  outside  of  the civil  penalty,                                                              
nothing  was  happening  with  regard  to  penalizing  people  who                                                              
bought alcohol for minors.                                                                                                      
                                                                                                                                
MR. MADDEN, in response  to a question, offered his  belief that a                                                              
parent  cannot  be  held  liable for  giving  alcohol  to  his/her                                                              
child, nor would  the parent be liable if his/her  child then gave                                                              
that  alcohol to  other minors.   He  said that  HB 428  primarily                                                              
addresses three  situations:   a minor that  solicits an  adult to                                                              
buy  alcohol for  the  minor, an  adult  that  orders or  receives                                                              
alcohol from a licensee  for the purpose of giving  it to a minor,                                                              
or  "someone who  misrepresents  the age  of someone  in order  to                                                              
provide alcohol to them."                                                                                                       
                                                                                                                                
REPRESENTATIVE  GARA noted  that  currently under  Alaska law,  50                                                              
percent of punitive  damages recovered is supposed  to be remitted                                                              
to the  state.   He offered  his belief  that HB  428 ought  to be                                                              
altered to  say that  if a licensee  recovers the $1,000  penalty,                                                              
then  the licensee  should be  obligated  to remit  50 percent  of                                                              
that money to the  state.  "I'm sitting here ...  wondering why we                                                              
would   impose  this   fine  and   give   it  all   to  a   liquor                                                              
establishment,  and I can  see in  the bill that  ... it  would be                                                              
your  effort to  ... prosecute  the  civil action,  but would  you                                                              
have any  problem remitting  half of the  money to the  state?" he                                                              
asked.                                                                                                                          
                                                                                                                                
MR. MADDEN  said that  such a provision  would defeat  the purpose                                                              
of  the  legislation.    He offered  his  belief  that  the  state                                                              
currently  has   the  ability  collect   any  fine  it   feels  is                                                              
necessary.   "Our basic goal  here is to  create an  incentive for                                                              
licensees  to actually  take these  steps, and  the more that  you                                                              
restrict that  incentive, the less  likely some people will  be to                                                              
participate;  I  don't  know  that that's  a  positive  step,"  he                                                              
remarked.                                                                                                                       
                                                                                                                                
Number 2001                                                                                                                     
                                                                                                                                
REPRESENTATIVE GARA  pointed out that  the state can  only collect                                                              
a  fine  if  it   goes  through  all  the  hoops   of  a  criminal                                                              
prosecution.   The process  proposed by the  bill involves  a very                                                              
easy  civil   case,  and  the   state  doesn't  have   the  right,                                                              
currently,  to get  a  simple $1,000  civil  fine.   He said  that                                                              
because  CHARR has  not yet spoken  to its  membership about  what                                                              
licensees will  do with the money,  he feels that  the legislature                                                              
would  be issuing  a blank  check in  a very  odd way.   "I  can't                                                              
think of another  law ... where we would transfer  fine money to a                                                              
liquor establishment," he concluded.                                                                                            
                                                                                                                                
MR. MADDEN  relayed that  AS 04.16.049  does so,  in that  a minor                                                              
who illegally  enters a  licensed premises is  liable for  a civil                                                              
penalty  of $1,000  to  the licensee.    He said  he'd  originally                                                              
drafted that  language for  an Anchorage  ordinance back  in 1998,                                                              
and Representative  Meyer used that  language in  legislation that                                                              
became  law in  2001.   It's  an  extremely effective  tactic  for                                                              
dealing with  underage drinking,  he remarked,  mainly because  it                                                              
is  a form  of  zero-cost  law enforcement  in  that  it allows  a                                                              
licensee to pay  substantial bonuses to employees who  are in turn                                                              
motivated  to  learn all  they  can  about  how to  stop  underage                                                              
drinking  in  the  establishments  where  they  work.    Under  AS                                                              
04.16.049,  the  only one  who  is  penalized  is the  person  who                                                              
deliberately  breaks the  law.   "You  couldn't ask  for a  better                                                              
mechanism to be set in place," he opined.                                                                                       
                                                                                                                                
REPRESENTATIVE  GARA asked  Mr. Fox what  CHARR's membership  does                                                              
with the fines its licensees pursue via AS 04.16.049.                                                                           
                                                                                                                                
MR. FOX said he  did not know, and pointed out  that CHARR members                                                              
represent only about 360 of Alaska's 1,800 licensees.                                                                           
                                                                                                                                
Number 2096                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS indicated  that he  agrees that  requiring                                                              
50 percent  of the  penalty to go  to the  state would  defeat the                                                              
purpose of  the legislation.  He  asked whether the  civil actions                                                              
under  the  Anchorage  ordinance  are  being  pursued  separately,                                                              
without the knowledge  of law enforcement or the  criminal justice                                                              
system.                                                                                                                         
                                                                                                                                
MR. MADDEN  said that with  regard to fake  ID cases,  Brown Jug's                                                              
employees  are not  authorized to  detain the  kids with the  fake                                                              
ID's;  instead,   the  employees   are  trained  how   to  collect                                                              
information  that will  allow  the  company to  take  action at  a                                                              
later  date.   In  cases  where  a  person  is attempting  to  buy                                                              
alcohol for minors,  security staff that have been  highly trained                                                              
are   detaining  those   individuals  until   their  identity   is                                                              
established and in some cases law enforcement is called in.                                                                     
                                                                                                                                
REPRESENTATIVE   SAMUELS  surmised,   then,  that  civil   actions                                                              
pertaining  to   fake  IDs  are   pursued  without   any  criminal                                                              
proceedings taking place.                                                                                                       
                                                                                                                                
MR. MADDEN confirmed this.                                                                                                      
                                                                                                                                
REPRESENTATIVE SAMUELS  said that this  seems unusual in  that the                                                              
damaged party  is the state  of Alaska,  not the licensee,  but it                                                              
is the licensee  that gets to collect the money  via civil action.                                                              
He remarked that he agrees with the bill, however.                                                                              
                                                                                                                                
REPRESENTATIVE GRUENBERG  opined that HB 428 is  strangely drafted                                                              
because "there are  misplaced modifiers and stuff."   He suggested                                                              
that HB  428 ought to  be redrafted to  fit the proper  legal form                                                              
of  statutes.   For  example, statutes  do  not  normally use  the                                                              
term, "condition  precedent", which is currently  located on [page                                                              
1, line  13, and page  2, lines  3-4].  Also,  the term  "by first                                                              
class  mail"  ought to  be  placed  in  a different  location,  he                                                              
remarked, and  pointed out  that attorney  fees are not  generally                                                              
spoken of  as a liability,  but the language  on page 2,  lines 8-                                                              
10,  does so.    He also  indicated  that the  term,  "emancipated                                                              
minor"  should  be  defined  using   standard  statutory  language                                                              
rather than how it is currently defined in the bill.                                                                            
                                                                                                                                
CHAIR  McGUIRE, after  ascertaining  that no  one  else wished  to                                                              
testify, closed public testimony on HB 428.                                                                                     
                                                                                                                                
CHAIR McGUIRE surmised  that the bill simply contains  the wording                                                              
of  the Anchorage  ordinance.    She  indicated a  preference  for                                                              
having the bill redrafted using statutory drafting guidelines.                                                                  
                                                                                                                                
Number 2300                                                                                                                     
                                                                                                                                
SUZANNE CUNNINGHAM,  Staff to  Representative Kevin  Meyer, Alaska                                                              
State  Legislature,   sponsor,  relayed   that  the   language  in                                                              
subsection  (f) regarding  the definition  of "emancipated  minor"                                                              
was not a  part of the Anchorage  ordinance and instead  came from                                                              
the drafter.  She agreed to have the drafter review the bill.                                                                   
                                                                                                                                
REPRESENTATIVE  GARA remarked  that "this"  is not that  different                                                              
from  something   that  occurs  under   federal  law:     where  a                                                              
government  interest  has  been violated,  in  some  circumstances                                                              
private  people are  allowed  to bring  a suit  on  behalf of  the                                                              
government and  are allowed  to keep some  of the fine  money, but                                                              
they  have to  remit a  certain  portion back  to the  government.                                                              
That seems  to be  what's going  on here,  he opined,  noting that                                                              
somebody is  being rewarded for  bringing the action;  however, he                                                              
remarked,  he would  be  a lot  more comfortable  if  the fine  is                                                              
split  between  the  licensee  and  the  state.   He  said  he  is                                                              
considering offering  a conceptual amendment  to that effect.   He                                                              
asked the sponsor to comment.                                                                                                   
                                                                                                                                
REPRESENTATIVE MEYER  indicated that he has concerns  about such a                                                              
change, and  opined that  the companies  that are most  vigorously                                                              
pursuing  these  civil  actions  are  only  keeping  $300  of  the                                                              
penalty and  waiving the  remaining $700.   He  said he  is afraid                                                              
that  such  a  change  would  defeat  the  goal  of  providing  an                                                              
incentive to licensees.                                                                                                         
                                                                                                                                
TAPE 04-40, SIDE B                                                                                                            
Number 2380                                                                                                                     
                                                                                                                                
MR. MADDEN,  in response  to a question,  offered his  belief that                                                              
only  a  few  establishments  are  making  use  of  the  Anchorage                                                              
ordinance.                                                                                                                      
                                                                                                                                
MS.  CUNNINGHAM relayed  that Mr.  Madden  travels throughout  the                                                              
state  providing   training  to  licensees  and   their  employees                                                              
regarding how  to detect fake IDs  and how to detect  when someone                                                              
is  purchasing alcohol  for  minors.   She  explained that  [other                                                              
areas of the state]  want to utilize a program similar  to the one                                                              
in Anchorage.   She opined that these businesses  are being rather                                                              
generous  by  keeping  only  $300  of the  $1,000  fine  to  cover                                                              
administrative costs.                                                                                                           
                                                                                                                                
REPRESENTATIVE  MEYER remarked  that the  bill currently  provides                                                              
the  flexibility  to reward  the  doorman  or  clerk to  take  the                                                              
license.   Therefore,  he  expressed  the need  to  leave all  the                                                              
tools in place.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  GARA announced that  he is going  to vote  to pass                                                              
this legislation out  of committee.  However, he  pointed out that                                                              
there are  a lot of  people who perform  community work  like this                                                              
for free.   He indicated some  discomfort with the notion  that an                                                              
industry that makes  money in an area that involves  some of these                                                              
ills should  be paid.   When  one enters  the business  of selling                                                              
alcohol, which can  be quite profitable, one knows  there are good                                                              
and  bad impacts  on society.    He said  he was  glad that  these                                                              
educational   efforts  are   being   undertaken,   but  again   he                                                              
highlighted that many volunteer such efforts.                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG  turned attention to subsection  (d), and                                                              
asked if there is  a reason why claims shouldn't  be assigned.  He                                                              
explained that  he could  see that a  larger organization  such as                                                              
Brown Jug  could do  this [program]  while a smaller  organization                                                              
wouldn't have the  expertise or wherewithal to do  it.  Therefore,                                                              
Representative   Gruenberg  suggested  that   it  might   be  more                                                              
efficient to assign the claims, perhaps to a law firm.                                                                          
                                                                                                                                
MR.  MADDEN  relayed that  the  language  in  HB 428  mirrors  the                                                              
shoplifting  statute,  which  allows  a  retailer  to  take  civil                                                              
action in  a criminal  matter against a  shoplifter.   However, he                                                              
said he didn't know  of a reason why [assigning a  claim] would be                                                              
a problem.                                                                                                                      
                                                                                                                                
Number 2182                                                                                                                     
                                                                                                                                
REPRESENTATIVE   GRUENBERG   moved   that  the   committee   adopt                                                              
Amendment  1, to  delete  subsection  (d), from  page  2, line  7.                                                              
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
REPRESENTATIVE  GRUENBERG  commented  that  there is  a  technical                                                              
problem  on page  2,  line 10,  which  only allows  attorney  fees                                                              
under Rule  82 of  the Alaska  Rules of  Civil Procedure,  but not                                                              
costs  under Rule  79  of the  Alaska  Rules  of Civil  Procedure.                                                              
Furthermore, he suggested  that there not be a  subsection (e) and                                                              
[that  language   pertaining   to  the  Alaska   Rules  of   Civil                                                              
Procedure] be placed on line 8 and line 11.                                                                                     
                                                                                                                                
Number 2140                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG  moved  Conceptual  Amendment  2,  which                                                              
would insert the  following language:  "plus costs  and [attorney]                                                              
fees as  permitted  by the Alaska  Civil Rules"  and would  delete                                                              
subsection (e)  [on page 2, line  10].  There being  no objection,                                                              
Conceptual Amendment 2 was adopted.                                                                                             
                                                                                                                                
REPRESENTATIVE  MEYER,  noting  that  he relies  on  Mr.  Madden's                                                              
expertise, inquired  as to Mr.  Madden's thoughts on  the previous                                                              
amendments, specifically Amendment 1.                                                                                           
                                                                                                                                
MR. MADDEN indicated that the amendments are fine.                                                                              
                                                                                                                                
CHAIR McGUIRE  noted that  Brown Jug  offers an alcohol  awareness                                                              
program  and if an  individual attends  it, the  fine is  reduced.                                                              
She asked if the language in HB 428 requires that.                                                                              
                                                                                                                                
REPRESENTATIVE MEYER  commented that it's  only a policy  of Brown                                                              
Jug.   This  legislation  is written  such  that an  establishment                                                              
could  keep the  entire  amount  of the  fine  if  it so  desired.                                                              
Furthermore,  the fine  could  be  given to  the  employees as  an                                                              
incentive  to catch  the  minors,  or could  be  kept  to pay  for                                                              
administrative  costs.    Representative  Meyer opined  that  most                                                              
businesses will  follow the  lead of Brown  Jug.  Furthermore,  he                                                              
said he  believes that  MADD, STAR,  and Akeela,  who provide  the                                                              
education  programs, will  try to  encourage waiving  some of  the                                                              
fine  in order  to  place  these  individuals in  the  educational                                                              
programs.     He  offered   his  belief   that  CHARR   wants  the                                                              
aforementioned as well.                                                                                                         
                                                                                                                                
CHAIR McGUIRE turned attention to subsection(a).                                                                                
                                                                                                                                
Number 2002                                                                                                                     
                                                                                                                                
MR. MADDEN explained  that when someone is caught,  the individual                                                              
receives  a demand  letter  specifying that  the  fine is  $1,000.                                                              
Included  in that letter  is information  regarding the  diversion                                                              
program [option  that would reduce  the fine], and  specifies that                                                              
the  individual has  to take  advantage of  the diversion  program                                                              
option  before Brown  Jug  files suit.    The legislation  doesn't                                                              
prohibit offering  the diversion program, which he  referred to as                                                              
a  free small  claims  offer.   He added  that  the offenders  are                                                              
signing up  for the diversion program  because they don't  want to                                                              
go to court.                                                                                                                    
                                                                                                                                
CHAIR  McGUIRE  asked if  Mr.  Madden  would be  comfortable  with                                                              
adding a provision  to the legislation specifying  that an alcohol                                                              
awareness  program  must  be  offered   to  offset  this  criminal                                                              
penalty.                                                                                                                        
                                                                                                                                
MR.  MADDEN  answered  that  he  would have  an  issue  with  that                                                              
because  if the  offenders know  that they  have to  enroll in  an                                                              
alcohol awareness  program, there is no incentive.   He reiterated                                                              
that  for many  offenders,  the  only reason  they  enroll in  the                                                              
class  is  because  it's  a  lot  less  onerous  than  the  entire                                                              
process.   The $1,000 provides  significant leverage to  get these                                                              
offenders to enroll  in the diversion program,  which is currently                                                              
a  simple matter  of  the offender  enrolling  in  the program  at                                                              
which point it's turned over to Akeela.                                                                                         
                                                                                                                                
CHAIR   McGUIRE  clarified   that   she  meant   adding   language                                                              
specifying  that  the licensee  must  offer an  alcohol  awareness                                                              
program to offset  the fine.  The offenders could  still accept or                                                              
deny attending the  program, and therefore she didn't  see how Mr.                                                              
Madden's  program  would  change,  since  the  $1,000  fine  would                                                              
remain the "hammer."   Chair McGuire expressed  concern that there                                                              
will  be more  licensees that  simply  choose to  keep the  $1,000                                                              
rather  than  offer  the  alcohol  awareness  classes,  which  she                                                              
characterized as the best part of the legislation.                                                                              
                                                                                                                                
The committee took an at-ease from 5:20 p.m. to 5:21 p.m.                                                                       
                                                                                                                                
Number 1829                                                                                                                     
                                                                                                                                
MR.  MADDEN  offered  his understanding  that  the  demand  letter                                                              
would have to  include an offer for an alcohol  treatment program,                                                              
the cost of which would be borne entirely by the offender.                                                                      
                                                                                                                                
CHAIR McGUIRE  agreed that  that is  what she  is suggesting.   In                                                              
response to  Mr. Madden,  Chair McGuire  clarified that  she would                                                              
refer to the program as an alcohol awareness program.                                                                           
                                                                                                                                
REPRESENTATIVE GARA  interjected to  say that the  language should                                                              
refer to education or treatment.                                                                                                
                                                                                                                                
MR. MADDEN  asked if  a flyer  from an  alcohol awareness  program                                                              
would meet the requirements.                                                                                                    
                                                                                                                                
CHAIR McGUIRE answered that such wouldn't be the intent.                                                                        
                                                                                                                                
MR. MADDEN  commented that  he wouldn't want  to do  anything that                                                              
would  dissuade a  licensee from  performing  enforcement on  this                                                              
level.   Mr. Madden  opined that  [promoting] being aggressive  in                                                              
preventing alcohol  from landing in underage hands is  in the best                                                              
interest  of  the  state  and  everyone   involved,  even  if  the                                                              
licensee keeps  the fine.  Mr.  Madden highlighted that  under the                                                              
law, it isn't illegal  in Alaska to sell alcohol  to an adult with                                                              
a minor in his  or her vehicle.  Therefore, he  reiterated that he                                                              
wouldn't want  to do anything that  would take away  the incentive                                                              
to be extra aggressive and vigilant in these situations.                                                                        
                                                                                                                                
Number 1749                                                                                                                     
                                                                                                                                
CHAIR  McGUIRE  said  that  she  didn't disagree.    She  posed  a                                                              
situation, however,  in which  a 21 year  old doesn't  realize the                                                              
seriousness  of  [purchasing alcohol  for  a  minor].   Under  the                                                              
current legislation,  if the 21  year old purchased alcohol  for a                                                              
minor  at  the Brown  Jug,  the  21  year old  would  receive  the                                                              
benefit of a treatment  course that could change his  or her life.                                                              
However, if  the situation happened  at a store that  didn't offer                                                              
a treatment  course, the  individual would  merely pay  $1,000 and                                                              
it  may not  change his  or her  life.   Chair  McGuire said  that                                                              
although  she didn't  want to  do anything  that would  discourage                                                              
[enforcement],  she   felt  that  perhaps  education   would  help                                                              
alleviate the ultimate problem.                                                                                                 
                                                                                                                                
MS.  CASHEN  stated   that  MADD  supports  getting   people  into                                                              
treatment.   However, it's extremely  difficult to get  the Juneau                                                              
licensees to  take advantage of  the $1,000 civil fine  for minors                                                              
attempting  to  enter,  which  she  predicted  will  be  the  same                                                              
situation  with this.   The  $1,000  civil fine  is an  incentive.                                                              
She opined that  for many liquor licensees, "this is  what will do                                                              
it."   This  legislation isn't  treatment  legislation, rather  it                                                              
encourages the employees  to [be aggressive with  enforcement] and                                                              
deter  those  who want  to  purchase  alcohol.   Furthermore,  Ms.                                                              
Cashen  pointed  out  that many  communities  don't  have  alcohol                                                              
schools.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG pointed  out that  subsection (a)  deals                                                              
with  the   adult  who  purchases   alcohol  [for  a   minor]  and                                                              
subsection (b)  deals with  the parent of  the minor  who solicits                                                              
another  person to  purchase alcohol.    However, the  legislation                                                              
doesn't seem to address the minor.                                                                                              
                                                                                                                                
MS. CUNNINGHAM informed  the committee that minors  don't have the                                                              
capacity to  be sued or have  judgments brought against  them in a                                                              
court.    Furthermore,  Legislative Legal  and  Research  Services                                                              
staff  specified that  the Anchorage  ordinance was  based on  the                                                              
shoplifting statutes,  which the drafter looked to  [when drafting                                                              
HB 428].                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG highlighted  that there  are two  groups                                                              
of people involved.   There are people who are 18-21  years of age                                                              
who are  adults.   There is  no reason  that those  who are  18-21                                                              
years old  could not face the  penalty.  However, for  those under                                                              
18 years  of age,  Representative Gruenberg  said he wasn't  aware                                                              
of anything  in law that specifies  individuals of that  age can't                                                              
have  a  civil  penalty assessed  against  them.    Therefore,  he                                                              
expressed the need for legal counsel to check into that.                                                                        
                                                                                                                                
CHAIR McGUIRE  indicated that  the statute includes  solicitation.                                                              
She  explained  that  [subsection   (a)]  specifies  that  if  one                                                              
attains  the age  of  18, that  18-year-old  can be  liable for  a                                                              
civil  action  of  $1,000  if  he/she  violates  any  part  of  AS                                                              
04.16.060, which  includes a  variety of things.   The  group that                                                              
doesn't end  up paying  are those [offenders]  who are  [under the                                                              
age of 18].                                                                                                                     
                                                                                                                                
Number 1419                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG proposed  Conceptual Amendment  3, which                                                              
he  specified  would  on  page  1, line  6,  to  delete  "who  has                                                              
attained 18  years of  age, or an  emancipated minor,".   However,                                                              
he said he wasn't sure how that would be drafted.                                                                               
                                                                                                                                
REPRESENTATIVE  MEYER  reiterated  earlier  testimony  that  civil                                                              
action can't be taken against a minor under the age of 18.                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG posed  a  situation in  which a  [minor]                                                              
driving a  car hits  another car.   He offered  his belief  that a                                                              
judgment against  that [minor]  could be  obtained.  Although  one                                                              
may  or  may  not  be  able to  collect,  if  a  judgment  can  be                                                              
obtained, then a penalty can be assessed against the minor.                                                                     
                                                                                                                                
MS. CUNNINGHAM  noted that  the drafter had  directed her  to Rule                                                              
17(c) of the Alaska Rules of Civil Procedure.                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG  interjected  to  say  that  Civil  Rule                                                              
17(c)  has to  do with  the appointment  of a  guardian ad  litem,                                                              
which he  said has nothing  to do with this.   In response  to Ms.                                                              
Cunningham,  Representative Gruenberg  specified  that a  guardian                                                              
ad litem doesn't  have to be appointed  when a minor is  sued.  He                                                              
highlighted  that  Civil  Rule  17(c)  uses  "may"  language,  and                                                              
explained that  normally if [a minor]  is sued, it's  done through                                                              
a next friend.   He reiterated that he wasn't aware  of any reason                                                              
in law why a civil penalty can't be assessed against a minor.                                                                   
                                                                                                                                
REPRESENTATIVE  GARA commended  Brown Jug  and Chilkoot  Charlie's                                                              
for what they are  doing in this area.  However,  he said he would                                                              
be  more interested  in  the legislation  if  he  could hear  from                                                              
CHARR regarding  what its other  members would do with  [the fines                                                              
collected].   He explained  that  it would be  comforting  to know                                                              
that other  members  of CHARR would  follow the  lead of  Chilkoot                                                              
Charlie's and the Brown Jug.                                                                                                    
                                                                                                                                
MR.  MADDEN  offered   that  he  believes  that   as  written  the                                                              
legislation  would  encourage  people  to take  action  when  they                                                              
otherwise might not.                                                                                                            
                                                                                                                                
REPRESENTATIVE  MEYER agreed  with  Ms. Cashen  that  even if  the                                                              
licensees are  doing this merely out  of greed, it's a  good thing                                                              
if it stops the  alcohol from getting to minors   He then reminded                                                              
the  committee of  prior legislation  dealing  with liability  for                                                              
[minors]  who  vandalized   schools.    He  recalled   asking  the                                                              
attorneys  in Legislative  Legal  and  Research Services  why  the                                                              
[offending  minors]   couldn't  be  held  responsible   for  civil                                                              
penalties.   The response  was that minors  under age  18 couldn't                                                              
be held responsible  unless one goes through criminal  court where                                                              
a  judgment  could  be  obtained  and  the  minor  held  financial                                                              
liable.   Representative Meyer said  he isn't sure  whether that's                                                              
what Representative Gruenberg is discussing.                                                                                    
                                                                                                                                
Number 1155                                                                                                                     
                                                                                                                                
CHAIR  McGUIRE announced  that HB  428  would be  held over  [with                                                              
Conceptual Amendment 3 pending].                                                                                                

Document Name Date/Time Subjects