Legislature(2007 - 2008)CAPITOL 120

04/25/2007 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 225 POSSESSION OF WEAPON WHILE ON BAIL TELECONFERENCED
Scheduled But Not Heard
+ HB 217 TOURISM DISCLOSURES AND NOTICES TELECONFERENCED
Moved CSHB 217(JUD) Out of Committee
+ HB 207 STUDENT QUESTIONNAIRES AND SURVEYS TELECONFERENCED
Heard & Held
+= HB 213 CRIMES AT DOMESTIC VIOLENCE SHELTERS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 187 TOBACCO SALES VIOLATIONS TELECONFERENCED
Moved CSHB 187(JUD) Out of Committee
HB 187 - TOBACCO SALES VIOLATIONS                                                                                             
                                                                                                                                
1:11:16 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  first order of business would be                                                               
HOUSE  BILL NO.  187, "An  Act  relating to  holders of  business                                                               
license  endorsements  for  sales  of  tobacco  products."    [In                                                               
members' packets  were two proposed committee  substitutes for HB
187:   Version 25-LS0719\M, Luckhaupt, 4/23/07;  and Version 773-                                                               
07-0086 bil.doc, Drinkwater, 4/2/2007, (3:34 PM).]                                                                              
                                                                                                                                
REPRESENTATIVE DAHLSTROM  moved to  adopt the  proposed committee                                                               
substitute  (CS)  for  HB 187,  Version  25-LS0719\M,  Luckhaupt,                                                               
4/23/07, as work draft.  There  being no objection, Version M was                                                               
before the committee.                                                                                                           
                                                                                                                                
CHAIR RAMRAS offered a recap of  the progress made on HB 187 thus                                                               
far and the issues it has raised.                                                                                               
                                                                                                                                
1:14:17 PM                                                                                                                    
                                                                                                                                
DAVID SCOTT, Staff to Representative  Kyle Johansen, Alaska State                                                               
Legislature,  sponsor,   relayed  on  behalf   of  Representative                                                               
Johansen that  Section 1 of  Version M [still] stipulates  that a                                                               
hearing must  be held before  a business license  endorsement can                                                               
be suspended, and that Section  2 makes a hearing "meaningful" by                                                               
expanding the  evidence that the  administrative law  judge shall                                                               
consider.   He noted that in  using the term "meaningful,"  he is                                                               
referring  to the  Alaska Superior  Court  case, Holiday  Alaska,                                                             
Inc.  v. State  of Alaska,  wherein the  court indicated  that in                                                             
order  for  an  administrative  hearing  to  be  meaningful,  the                                                               
accused must be  granted the opportunity to  fully contest issues                                                               
of central importance.                                                                                                          
                                                                                                                                
MR. SCOTT indicated  that Section 3 of Version  M establishes new                                                               
subsections  (t),  (u),  and  (v)  to  AS  43.70.075.    Proposed                                                               
subsection (t)(1)-(5), he offered,  "basically creates policy for                                                               
license   holders  ...   to  comply   with  if   they  want   [an                                                               
administrative  law  judge]  to  even  consider  a  reduction  in                                                               
sentence."  Specifically, proposed  paragraph (1) stipulates that                                                               
a license holder must adopt  and enforce a written policy against                                                               
selling  tobacco  products  to  persons  under  the  age  of  19;                                                               
proposed  paragraph (2)  stipulates  that a  license holder  must                                                               
have  informed his/her  employees  of  applicable laws;  proposed                                                               
paragraph  (3) stipulates  that the  license holder  must require                                                               
his/her employees  to sign  a form  acknowledging that  they have                                                               
been  informed  of  and  understand  the  aforementioned  written                                                               
policy;  proposed  paragraph  (4)  stipulates  that  the  license                                                               
holder  requires his/her  employees to  verify, via  photographic                                                               
identification,  the age  of those  purchasing tobacco  products;                                                               
and proposed paragraph (5) stipulates  that a license holder must                                                               
establish and enforce  disciplinary sanctions [against employees]                                                               
for noncompliance.                                                                                                              
                                                                                                                                
MR. SCOTT,  in response to  a comment,  observed that there  is a                                                               
proposed  amendment  which  would  stipulate  that  a  period  of                                                               
suspension may not  be reduced to a period of  less than 10 days.                                                               
He  added  that  the  administrative  law  judge  will  have  the                                                               
discretion,  but  is  not  required,  to  reduce  the  suspension                                                               
period.  He then relayed  that proposed subsection (v) of Section                                                               
3 allows  the license holder  and the  department to agree  to an                                                               
informal disposition of suspension,  and allows the department to                                                               
reduce  the  period of  suspension  but  only  for a  first  time                                                               
offense.                                                                                                                        
                                                                                                                                
REPRESENTATIVE   HOLMES  pointed   out,  though,   that  proposed                                                               
subsection  (u) stipulates  that  a reduction  in  the period  of                                                               
suspension  may not  be granted  more  than twice  in a  12-month                                                               
period for any one location.                                                                                                    
                                                                                                                                
CHAIR RAMRAS offered  his understanding that there  is a proposed                                                               
amendment addressing that point.                                                                                                
                                                                                                                                
1:19:23 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS made  a motion  to adopt  Amendment 1,  labeled 25-                                                               
LS0719\M.1, Luckhaupt, 4/24/07, which read:                                                                                     
                                                                                                                                
     Page 4, following line 14:                                                                                                 
     Insert a new subsection to read:                                                                                           
          "(w) A period of suspension may not be reduced                                                                        
      under (t) or (v) of this section to a period of less                                                                      
     than 10 days."                                                                                                             
                                                                                                                                
REPRESENTATIVE HOLMES objected for the purpose of discussion.                                                                   
                                                                                                                                
CHAIR RAMRAS offered his understanding  that Version M allows for                                                               
the possibility  of having  the period  of suspension  reduced if                                                               
the license  holder is  able to  bring forth  information proving                                                               
that he/she  complied with  proposed AS  43.70.075(t)(1)-(5), and                                                               
Amendment 1  merely stipulates  that a  period of  suspension may                                                               
not be  reduced to  a period of  less than 10  days.   He posited                                                               
that Version  M addresses  the issue of  due process  for license                                                               
holders,  while  Amendment  1  addresses  his  concern  that  any                                                               
suspension  period not  be  reduced to  less than  10  days.   He                                                               
added, "When  this bill goes  to the [House Finance  Committee] I                                                               
hope  that those  members do  not  go below  the 10-day  minimum,                                                               
because I think that stiff  penalties have contributed to curbing                                                               
minors consuming and purchasing tobacco."                                                                                       
                                                                                                                                
CHAIR RAMRAS,  in response  to a question,  pointed out  that the                                                               
language on page  1, line 11, of Version M  provides for a 20-day                                                               
suspension period [for a first offense].                                                                                        
                                                                                                                                
REPRESENTATIVE SAMUELS  opined that endorsement holders  who have                                                               
done  nothing  wrong and  do  everything  stipulated in  proposed                                                               
subsection (t)(1)-(5) but  still have an employee  who chooses to                                                               
sell  tobacco to  a minor  are being  treated the  same as  those                                                               
endorsement holders that choose not to train their employees.                                                                   
                                                                                                                                
CHAIR RAMRAS pointed out that  all employers are culpable for the                                                               
actions of  the employees they  hire, and offered  some examples.                                                               
"At some point we have to draw the  line, and in this case, ... I                                                               
would  like to  draw it  around  ... being  firm on  making it  a                                                               
significant  penalty  [to]  conducting  commerce  if  you're  not                                                               
careful in  the people that  you hire and  the way that  they are                                                               
going to engage in tobacco sales," he added.                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS again expressed  disfavor with the concept                                                               
of treating all endorsement holders the same.                                                                                   
                                                                                                                                
REPRESENTATIVE HOLMES removed her objection.                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that Amendment 1 was adopted.                                                                            
                                                                                                                                
1:26:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG made  a  motion to  adopt Amendment  2,                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
     1.   P. 2 - L. 25 delete:                                                                                                  
          "a hearing office"                                                                                                    
     and add:                                                                                                                   
          "an administrative law judge"                                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG  explained  that  the  language  to  be                                                               
deleted  should  instead  read, "a  hearing  officer",  and  that                                                               
Amendment  2 is  a technical  amendment acknowledging  that those                                                               
working  in  the office  of  administrative  hearings are  called                                                               
administrative law judges, not hearing officers.                                                                                
                                                                                                                                
CHAIR  RAMRAS, noting  that there  were no  objections, announced                                                               
that Amendment 2 was adopted.                                                                                                   
                                                                                                                                
1:27:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG referred  to  Amendment  3, which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     1.   P. 4 - L. 5 delete:                                                                                                   
          granted more than "twice"                                                                                             
     and add:                                                                                                                   
          granted more than "once"                                                                                              
                                                                                                                                
REPRESENTATIVE DAHLSTROM made a motion to adopt Amendment 3.                                                                    
                                                                                                                                
CHAIR RAMRAS objected for the  purpose of discussion, and offered                                                               
his  understanding  that  Amendment  3  would  stipulate  that  a                                                               
reduction in  suspension may  be granted only  once within  a 12-                                                               
month period.  He then removed his objection.                                                                                   
                                                                                                                                
REPRESENTATIVE  COGHILL objected  and asked  whether a  reduction                                                               
may only be granted once.                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG said no,  and concurred that a reduction                                                               
may only be granted once in a  12-month period.  He opined that a                                                               
license holder shouldn't  be able to break the law  and then seek                                                               
mitigation  of  the penalty  more  than  once during  a  12-month                                                               
period for any one location.                                                                                                    
                                                                                                                                
CHAIR RAMRAS concurred.                                                                                                         
                                                                                                                                
REPRESENTATIVE COGHILL removed his objection.                                                                                   
                                                                                                                                
REPRESENTATIVE  HOLMES  pointed  out  that  current  law  doesn't                                                               
provide  endorsement  holders  with  any opportunity  to  seek  a                                                               
reduction in the suspension period,  and added, "We are loosening                                                               
the tobacco laws.                                                                                                               
                                                                                                                                
CHAIR  RAMRAS,  noting that  there  were  no further  objections,                                                               
announced that Amendment 3 was adopted.                                                                                         
                                                                                                                                
1:29:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  made  a  motion  to  adopt  Conceptual                                                               
Amendment  4,  which,  along  with  a  handwritten  change,  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Page 4, line 14                                                                                                            
                                                                                                                                
     Add a new subsection to read:                                                                                              
                                                                                                                                
     (w)  conviction  for  a   violation  of  AS  11.76.100,                                                                    
     11.76.106,  or 11.76.107  by the  agent or  employee of                                                                    
     the person  who holds the business  license endorsement                                                                    
     is rebuttably presumed to constitute  proof of the fact                                                                    
     that  the   agent  or   employee  negligently   sold  a                                                                    
     cigarette,   a  cigar,   or  tobacco,   or  a   product                                                                    
     containing tobacco to  a person under 19  years of age.                                                                    
     The person  who holds the business  license endorsement                                                                    
     may overcome  the presumption by establishing  by clear                                                                    
     and convincing evidence that the  agent or employee did                                                                    
     not negligently sell a cigarette,  a cigar, or tobacco,                                                                    
     or a  product containing tobacco  to a person  under 19                                                                    
     years of  age in violation of  AS 11.76.100, 11.76.106,                                                                    
     or 11.76.107 as  alleged in the citation  issued to the                                                                    
     agent  or  employee.    The  presentation  of  evidence                                                                    
     authorized  by this  subsection does  not constitute  a                                                                    
     collateral attack  on the conviction described  in this                                                                    
     subsection.                                                                                                                
                                                                                                                                
REPRESENTATIVE SAMUELS objected.                                                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG explained  that Conceptual  Amendment 4                                                               
would  add a  new subsection  (w) to  proposed AS  43.70.075, and                                                               
offered that in the Holiday case, the court said:                                                                             
                                                                                                                                
     In  order  to  satisfy due  process  requirements,  the                                                                    
     litigant must be given more  than just a hearing.  That                                                                    
     hearing must be "meaningful."   In determining "whether                                                                    
     a hearing  is a meaningful  one, [the court  is] guided                                                                    
     by 'considerations of fundamental  fairness.'"  Thus at                                                                    
     an administrative hearing  concerning the suspension of                                                                    
     a  driver's license  "the accused  must be  granted the                                                                    
     opportunity  to   fully  contest  issues   of  'central                                                                    
     importance' to the revocation decision."                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG  opined that the same  principle applies                                                               
with   regard   to   [suspensions   of   tobacco   endorsements].                                                               
Conceptual Amendment  4 will clarify  that the employer  can also                                                               
rebut the  presumption of the  conviction that the  employee sold                                                               
the tobacco product to someone under the age of 19.                                                                             
                                                                                                                                
MR. SCOTT  relayed that the  sponsor is primarily  concerned with                                                               
correcting the lack  of due process in existing  law, and offered                                                               
his  understanding   that  the   sponsor  would  not   object  to                                                               
Conceptual Amendment 4.                                                                                                         
                                                                                                                                
CHAIR RAMRAS remarked that Conceptual  Amendment 4 seems to favor                                                               
the employer.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG concurred,  adding that  it favors  the                                                               
employer's due process rights.                                                                                                  
                                                                                                                                
REPRESENTATIVE SAMUELS removed his objection.                                                                                   
                                                                                                                                
CHAIR RAMRAS announced that Conceptual Amendment 4 was adopted.                                                                 
                                                                                                                                
1:33:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG made  a  motion to  adopt Amendment  5,                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
     1.   P. 3 - L. 26 add:                                                                                                     
          ", 11.76-106, and 11.76-107"                                                                                          
     2.   P. 3 - L. 31 add:                                                                                                     
          ", 11.76-106, and 11.76-107"                                                                                          
                                                                                                                                
REPRESENTATIVE DAHLSTROM objected.                                                                                              
                                                                                                                                
REPRESENTATIVE  GRUENBERG,   after  reviewing  the   language  in                                                               
Section  3  of  the  original   version  of  the  bill,  withdrew                                                               
Amendment 5.                                                                                                                    
                                                                                                                                
CHAIR RAMRAS recapped the changes that were made to the bill.                                                                   
                                                                                                                                
1:34:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  moved to  report the  proposed CS  for HB
187, Version 25-LS0719\M, Luckhaupt,  4/23/07, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  note.    There  being no  objection,  CSHB  187(JUD)  was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                

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