Legislature(2001 - 2002)

03/16/2001 03:20 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 132-LIQUOR LICENSE APPLICANT CHECK/TRAINING                                                                                
                                                                                                                                
Number 0060                                                                                                                     
                                                                                                                                
CHAIR MURKOWSKI announced that the  committee would take up HOUSE                                                               
BILL NO. 132, "An Act  relating to the possession or distribution                                                               
of  alcohol in  a  local option  area;  requiring liquor  license                                                               
applicants to  submit fingerprints for the  purpose of conducting                                                               
a criminal history  background check, and relating to  the use of                                                               
criminal justice  information by  the Alcoholic  Beverage Control                                                               
Board;  providing  for  a  review  of  alcohol  server  education                                                               
courses by the Alcoholic Beverage  Control Board every two years;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
Number 0150                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG, Alaska  State Legislature,  speaking as                                                               
the  chair  of  the  House Judiciary  Standing  Committee,  which                                                               
sponsored  HB 132  by request,  said  the bill  was requested  by                                                               
three  different groups:    the Office  of  the Attorney  General                                                               
brought  the  bootlegging   provisions;  the  Alcoholic  Beverage                                                               
Control   Board  (ABC   Board)  brought   the  criminal   justice                                                               
information records  on fingerprinting;  and the Cabaret  Hotel &                                                               
Restaurant Retailers  Association (CHARR) brought  the techniques                                                               
in Alcohol  Management (TAM)  training [requirement]  change from                                                               
[every] three years to [every] two years.                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG said he  was distressed with the proposed                                                               
fiscal notes and looked forward to testimony on them.                                                                           
                                                                                                                                
Number 0263                                                                                                                     
                                                                                                                                
HEATHER NOBREGA, Staff to  Representative Norman Rokeberg, Alaska                                                               
State  Legislature,  speaking as  committee  aide  for the  House                                                               
Judiciary  Standing Committee,  said there  are four  bootlegging                                                               
provisions in  the bill.   The  first one  reduces the  amount of                                                               
alcohol  by  half that  a  person  may  possess in  a  restricted                                                               
community  with the  presumption  that the  person possesses  the                                                               
alcohol with the intent to sell it.                                                                                             
                                                                                                                                
MS. NOBREGA stated  that the second provision  reduced the amount                                                               
of alcohol by half  that a package store may send  to a person in                                                               
a calendar month  in a community that has restricted  the sale of                                                               
alcohol.    The  third  provision changes  the  penalty  for  the                                                               
illegal  sale or  transportation  of alcohol  to  a local  option                                                               
community by  reducing the amount  of alcohol by  half; [alcohol]                                                               
illegally sent to a community qualifies as a class C felony.                                                                    
                                                                                                                                
MS.  NOBREGA  explained  that the  fourth  provision  requires  a                                                               
package store within 50 air miles  of a local option community to                                                               
keep a  record of each  sale in excess  of the amount  of alcohol                                                               
that may be sent to an  individual in a local option community in                                                               
a  calendar month.    And  failure to  keep  these  records is  a                                                               
violation, she pointed out.                                                                                                     
                                                                                                                                
Number 0397                                                                                                                     
                                                                                                                                
MS. NOBREGA  referred to  a map  that her  office brought  to the                                                               
meeting to assist committee members.   She explained that the map                                                               
shows what  would be considered  a 50-mile radius,  showing which                                                               
communities  are affected  and the  package stores  that need  to                                                               
keep records.   She explained  that a local option  community has                                                               
quite a few options when restricting  alcohol:  a complete ban on                                                               
the sale of alcohol; a  "community-license-only option"; a ban on                                                               
the sale  and importation  of alcohol; a  ban on  possession; and                                                               
the "package-store-license-only community."                                                                                     
                                                                                                                                
Number 0490                                                                                                                     
                                                                                                                                
MS. NOBREGA went on to  explain the fingerprinting portion of the                                                               
bill.   The bill  requires a  liquor-license applicant  to submit                                                               
his or her fingerprints to the  ABC Board for a national criminal                                                               
history background check.   The board will be  required to submit                                                               
fingerprints  to the  Department  of Public  Safety  to obtain  a                                                               
report  of  criminal  justice information,  and  will  allow  the                                                               
department  to  submit  fingerprints  to the  Federal  Bureau  of                                                               
Investigation  (FBI) for  a  national criminal  check.   The  FBI                                                               
requires  that the  state  mandate this  in  the statutes  before                                                               
accepting fingerprints for a national background check.                                                                         
                                                                                                                                
MS. NOBREGA  stated that  the third section  [of the  bill] would                                                               
change  the TAM  educational course  from [being  required] every                                                               
three years to every two.                                                                                                       
                                                                                                                                
Number 0579                                                                                                                     
                                                                                                                                
DEAN GUANELI,  Chief Assistant  Attorney General,  Legal Services                                                               
Section-Juneau, Criminal  Division, Department of  Law, commented                                                               
that the provisions related to  bootlegging were ideas adopted by                                                               
the   Criminal  Justice   Assessment   Commission  ("C-JAC"),   a                                                               
commission  created in  1997 to  study prison  overcrowding.   He                                                               
explained that one  of the spin-offs from that has  been [to look                                                               
at]  alcohol abuse,  which is  the number-one  social problem  in                                                               
Alaska relating to prison crowding.                                                                                             
                                                                                                                                
MR. GUANELI said  C-JAC was composed of  representatives from all                                                               
criminal justice agencies in the  executive branch, the executive                                                               
director  of  the  [Alaska]  Judicial  Council,  members  of  the                                                               
judicial branch, and members from  the legislative branch.  Among                                                               
the issues  that [C-JAC] came  up with  were the ones  to address                                                               
issues involving  bootlegging.   Cutting the  presumptive amounts                                                               
makes it easier to enforce  laws involving liquor with the intent                                                               
to sell.                                                                                                                        
                                                                                                                                
Number 0719                                                                                                                     
                                                                                                                                
MR. GUANELI  stated that  keeping track of  people who  buy large                                                               
amounts of liquor in and around  local option areas is a tool for                                                               
law  enforcement to  effectively  enforce the  laws.   These  are                                                               
modest changes  to the  bootlegging laws,  he remarked,  and this                                                               
alone  would not  be  enough to  address  the problems  involving                                                               
bootlegging.  More enforcement resources are needed.                                                                            
                                                                                                                                
MR. GUANELI  referred to the fiscal  note and said it  might have                                                               
been  large  in  order  to  provide  for  enforcement  resources;                                                               
however,  the state  was  fortunate, within  the  last couple  of                                                               
weeks, to  be awarded a federal  grant.  The state  troopers were                                                               
awarded  $1.4 million  to deal  with bootlegging  cases; some  of                                                               
that  money has  been sub-granted  to the  Department of  Law for                                                               
prosecutors.   He  said those  additional resources  will provide                                                               
for  investigators  and prosecutors,  along  with  the new  tools                                                               
provided  in  this  bill  to  make  some  inroads  regarding  the                                                               
problems of bootlegging in rural Alaska.                                                                                        
                                                                                                                                
Number 0835                                                                                                                     
                                                                                                                                
MR. GUANELI  said that he  had a  list of the  [affected] package                                                               
stores,  which  was  provided  by  the  ABC  Board;  he  made  it                                                               
available to the  committee.  It appears that  the largest cities                                                               
affected with package-store licensees  are in Fairbanks, Cordova,                                                               
Valdez,  and Sitka,  he noted,  because  they are  within 50  air                                                               
miles [of local option communities].   It is a tool for directing                                                               
enforcement efforts.                                                                                                            
                                                                                                                                
MR.  GUANELI  relayed  that  cracking   down  on  bootlegging  is                                                               
extraordinarily   difficult.     Bootleggers  generally   have  a                                                               
clientele that  they know; it's  not like drug dealers  who often                                                               
sell  to  anyone  who  comes  up  with  enough  money.    Getting                                                               
undercover agents to  go in and make purchases  of bootleg liquor                                                               
is  a difficult  thing, but  getting  some sense  of where  large                                                               
purchases  of alcohol  are  being made  may  help focus  efforts.                                                               
These are small steps in the right direction, he remarked.                                                                      
                                                                                                                                
Number 0986                                                                                                                     
                                                                                                                                
MR. GUANELI,  responding to a  question about record  keeping for                                                               
package-store  licensees within  the 50-mile  radius [of  a local                                                               
option  community], said  [record keeping  is only  required] for                                                               
sales above 6  liters of distilled liquor, 12 liters  of wine, or                                                               
6  gallons  or more  of  malt  beverages.    These are  the  same                                                               
presumptive  levels that  apply in  the other  statutory changes,                                                               
where the  law will presume,  if one lives  in an area  where the                                                               
sale of  alcohol has been  banned and  a person has  that amount,                                                               
that there is intent to sell.                                                                                                   
                                                                                                                                
MR.  GUANELI,  responding to  a  question  about how  much  those                                                               
liquor levels equate to, said  about 10 six-packs [of beer] would                                                               
get a  person close to the  six-gallon limit, which is  about two                                                               
and a half cases of beer.                                                                                                       
                                                                                                                                
MR. GUANELI said anything over  that limit would be written down,                                                               
along  with  [the  purchaser's]   name  and  address.    Anything                                                               
purchased two weeks  before the Fourth of July  would probably be                                                               
discounted, he  added.  He  said patterns of purchases  over time                                                               
would  be  looked  at,  and  he surmised  that  "they"  would  be                                                               
focusing  efforts on  residents from  rural villages  who buy  at                                                               
package stores and take it into the village.                                                                                    
                                                                                                                                
Number 1192                                                                                                                     
                                                                                                                                
MR. GUANELI  explained that the real  problem is not so  much the                                                               
beer, but  the distilled hard  liquor.  He  said $75 a  bottle is                                                               
not  a high  price to  pay  in a  lot  of villages,  and in  many                                                               
villages it  is much higher than  that.  He said  it doesn't take                                                               
long to make  a good living when  a person is buying  a bottle of                                                               
booze for  $7 to  $10 [at  a package store],  and selling  it for                                                               
$75.                                                                                                                            
                                                                                                                                
MR. GUANELI referred  to the report from C-JAC and  said this was                                                               
one of  many [proposed suggestions]  made by the commission  on a                                                               
variety of topics; these are the ones relating to bootlegging.                                                                  
                                                                                                                                
REPRESENTATIVE  MEYER asked  for a  list of  the businesses  that                                                               
will be impacted.   He said perhaps CHARR would  comment on this,                                                               
since  he thought  it would  be putting  a burden  on businesses,                                                               
because  additional records  would have  to  be kept.   He  asked                                                               
about the origin of the 50-mile radius.                                                                                         
                                                                                                                                
MR. GUANELI explained that the  recommendation by C-JAC was for a                                                               
100-mile radius;  however, in reviewing  that and looking  at the                                                               
map,  it  was determined  that  it  would  reduce the  impact  on                                                               
package stores  by cutting it  down to  50 miles, for  those that                                                               
are fairly  close to  local option  [communities].   He explained                                                               
that the federal  money received for enforcement  is not directly                                                               
tied to  this, so if  this bill  doesn't pass, the  federal money                                                               
will still be available.                                                                                                        
                                                                                                                                
REPRESENTATIVE MEYER  said he thought the  fiscal notes [$112,800                                                               
from the  Department of Corrections,  and over $200,000  from the                                                               
Public Defender  Agency,] were "steep,"  but he wondered  if that                                                               
amount  was  [sufficient]  because catching  bootleggers  out  in                                                               
rural Alaska is difficult.                                                                                                      
                                                                                                                                
Number 1369                                                                                                                     
                                                                                                                                
MR. GUANELI  said from the  public defender's  standpoint, "they"                                                               
were probably reacting  to the amount of money  the Department of                                                               
Law has been sub-granted from  [the Department of] Public Safety,                                                               
which is $500,000 this  year.  He said "our" intent  is to put an                                                               
attorney, a paralegal,  and a secretary in Bethel,  where a large                                                               
amount of this  activity occurs, and also to put  an attorney and                                                               
perhaps a secretary in Anchorage  because "we" believe that a lot                                                               
of  the  really large  sales  occur  in  Anchorage and  then  the                                                               
alcohol  is shipped  to rural  Alaska on  planes and  through the                                                               
mail.   There  needs  to be  someone in  Anchorage  to work  with                                                               
federal inspectors  to get  search warrants  to search  the mail.                                                               
He said  there is  cooperation with  the federal  government, but                                                               
someone  is needed  in Anchorage  to do  some of  this work.   He                                                               
thought  the  public defender  was  reacting  to that  [with  the                                                               
fiscal note].   As  a result  of more  state troopers,  there are                                                               
going to be more cases and more deterrence, he remarked.                                                                        
                                                                                                                                
Number 1520                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT asked  if  it  is legal  in  Alaska to  ship                                                               
alcoholic beverages to someone who  has called the [order] in; he                                                               
said he was told that it couldn't be done.                                                                                      
                                                                                                                                
MR. GUANELI replied  that he thought it could be  done unless the                                                               
person lives  in a "dry"  area.   Responding to a  question about                                                               
someone  living in  a "damp"  community being  restricted on  how                                                               
much alcohol could be acquired  from a package store, Mr. Guaneli                                                               
answered  affirmatively.   However, he  deferred the  question to                                                               
the ABC Board for specific  enforcement [specifics] involving the                                                               
statutes and regulations.                                                                                                       
                                                                                                                                
Number 1610                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  said if  that is  indeed the  case, couldn't                                                               
that person who is acquiring  the shipment go to multiple package                                                               
stores and get  the same thing?   He said he would  think that it                                                               
would be somewhat of an  "administrative nightmare," and asked if                                                               
that  wouldn't offer  an opportunity  for  that person  to go  to                                                               
another person and ask him or  her to purchase [alcohol on his or                                                               
her behalf].  He asked if  there was a prohibition built into the                                                               
system today that wouldn't allow this.                                                                                          
                                                                                                                                
MR.  GUANELI commented  that people  would find  ways around  the                                                               
law.  If  someone wants to get  a big "store" of  liquor, and the                                                               
only way that it  can be done is by going  to multiple stores, it                                                               
could happen.   He said  [the purchaser]  may even buy  less than                                                               
the  threshold amount  so his  or  her name  doesn't get  written                                                               
down,  but  at   least  [the  legislation]  will   make  it  more                                                               
difficult.   It is  a matter  of drawing  a line  between someone                                                               
who, every once in a while,  purchases that amount that will last                                                               
a fairly long time, versus those doing it on a regular basis.                                                                   
                                                                                                                                
Number 1803                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT asked if [package-store  owners] would keep a                                                               
running tally  to track when  someone exceeds the  monthly limit,                                                               
which would then trigger a report.                                                                                              
                                                                                                                                
MR. GUANELI referred  to Section 2 of the bill,  which limits the                                                               
amount that may  be shipped.  He said some  sort of running tally                                                               
would  be  required,  but  deferred   the  question  to  the  ABC                                                               
representatives.  If  there is a monthly [limit],  then there has                                                               
to be  some kind of  record kept of how  much is shipped  to that                                                               
area  in a  month.   He said  under current  law, there  are some                                                               
records  being kept,  and  this  is simply  an  amendment to  the                                                               
current law.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT  asked  if  there  could  be  some  kind  of                                                               
exception  put  into  the  statute that  would  allow  for  large                                                               
purchases of alcohol for special occasions.                                                                                     
                                                                                                                                
Number 1969                                                                                                                     
                                                                                                                                
MR.  GUANELI  replied  that  the   crime  is  selling  liquor  or                                                               
possessing it  with the  intent to sell,  but mere  possession is                                                               
not a crime; in order to prove that  crime, one of the ways is by                                                               
the  amount of  liquor  in  one's possession,  giving  rise to  a                                                               
presumption that  there is intent  to sell.  [Reference  was made                                                               
to Section 1, AS 04.11.010(c).]                                                                                                 
                                                                                                                                
REPRESENTATIVE KOTT asked, "So, in  a damp community like Bethel,                                                               
I could fly back and forth from  Anchorage and bring as much as I                                                               
want and  warehouse it  in my  home for my  own personal  use, as                                                               
long as I didn't sell it."                                                                                                      
                                                                                                                                
MR. GUANELI said he  believed that to be correct.   He said it is                                                               
not a  crime in Bethel to  possess [alcohol].  When  asked if any                                                               
presumption can  be rebutted by  the evidence, he  responded that                                                               
presumptions  in  the  law  allow  a  jury  to  come  to  certain                                                               
conclusions,  which can  be rebutted.    He used  the example  of                                                               
drunk driving.   He said if a person has  a blood-alcohol [level]                                                               
of  .10  or above,  that  person  is  presumed  to be  under  the                                                               
influence; however, the jury might  disregard that based on other                                                               
evidence.                                                                                                                       
                                                                                                                                
Number 2135                                                                                                                     
                                                                                                                                
MR. GUANELI  explained a case  in which  a person had  around 100                                                               
gallons of hard  liquor in a compartment on a  boat coming up the                                                               
Yukon River.  This person  was prosecuted for possession with the                                                               
intent to sell;  the amount in question, the 100  gallons, was so                                                               
much, and  there was other  evidence to indicate that  sales were                                                               
involved.   The  defense was  that  the person  was bringing  the                                                               
alcohol  for a  wedding, however,  and  the person  was let  off.                                                               
That is the  type of defense that is impossible  for the state to                                                               
beat, he  said.   If there  is any question,  "we" don't  even go                                                               
after cases  like that.   That  is where  law enforcement  has to                                                               
focus investigative efforts  on the sellers, the  people making a                                                               
huge amount of money selling liquor  in areas where it results in                                                               
death and destruction.                                                                                                          
                                                                                                                                
REPRESENTATIVE  CRAWFORD said  there are  several things  in [the                                                               
bill] that concern him.   He asked if it wouldn't  be a "boon" to                                                               
someone who is 51 air miles out  of a dry community, or a boon to                                                               
Anchorage.   He said when he  worked at Merrill Field,  planes on                                                               
numerous occasions  were being  loaded with cases  of vodka.   If                                                               
this  is just  done with  a 50-mile  limit, the  crime will  move                                                               
around.                                                                                                                         
                                                                                                                                
Number 2215                                                                                                                     
                                                                                                                                
MR. GUANELI agreed  that this could happen.  The  idea of writing                                                               
down  sales within  the 50-mile  radius is  to deter  people from                                                               
buying large  amounts of  liquor in  areas where  it is  a really                                                               
quick,  easy trip  to  a dry  community.   People  who buy  large                                                               
amounts are  forced into Anchorage,  which from  an investigative                                                               
standpoint   may   be   preferable   because   there   are   more                                                               
investigative resources in Anchorage.                                                                                           
                                                                                                                                
REPRESENTATIVE  CRAWFORD referred  to keeping  the records  for a                                                               
year.   He said  it doesn't  address what  happens if  the person                                                               
were to lose these records,  and Section 3 looks "fairly onerous"                                                               
for legitimate businesses.                                                                                                      
                                                                                                                                
MR.  GUANELI said  he  would  be open  to  hearing comments  from                                                               
people in the industry as  to what this additional record keeping                                                               
would do to  them; his sense is that keeping  adequate records is                                                               
part of what  one is used to  doing.  With these  kinds of cases,                                                               
it  has to  be  recognized  that it  is  a  serious problem  with                                                               
serious  consequences, and  that  some additional  record-keeping                                                               
burden is not too much to ask  for an industry that makes a large                                                               
amount of profit  on a product that causes such  havoc in certain                                                               
parts of the state.                                                                                                             
                                                                                                                                
Number 2343                                                                                                                     
                                                                                                                                
REPRESENTATIVE   CRAWFORD  referred   to  the   criminal  justice                                                               
information records.   He  said it is  a substantial  process for                                                               
the  people applying  for a  [liquor] license,  and he  asked why                                                               
"we" want to know all of that [information].                                                                                    
                                                                                                                                
MR. GUANELI deferred the question  to the ABC representative.  In                                                               
general, he  explained, fingerprints are required  to get records                                                               
from  across  the  nation,  and  without  fingerprints  "we"  are                                                               
limited  to  records just  in  Alaska's  criminal history  record                                                               
system.   If  one is  dealing with  a licensee  who may  have had                                                               
problems out of  state, one wouldn't know  [without going through                                                               
this process].  As  with a lot of programs in  Alaska, there is a                                                               
trend to  require fingerprints to  check records  from throughout                                                               
the country.   He said  he wasn't  sure exactly what  the concern                                                               
was.                                                                                                                            
                                                                                                                                
CHAIR MURKOWSKI,  switching gears, asked if  the postal inspector                                                               
has  the needed  [resources] to  check and  see if  shipments are                                                               
going out to the dry or damp communities.                                                                                       
                                                                                                                                
Number 2446                                                                                                                     
                                                                                                                                
MR. GUANELI said  he didn't know the answer.   The specific topic                                                               
of the inspector general's role  in stopping alcohol has been the                                                               
subject of  a number of  discussions within Alaska,  and possibly                                                               
as  far  as  Washington,  D.C.,  through  U.S.  Senator  Stevens'                                                               
office.    There has  been  some  concern  that the  process  for                                                               
getting  search   warrants  and  federal  cooperation   was  more                                                               
burdensome than  it needed  to be,  he said,  and there  has been                                                               
some improvement  in the cooperative  efforts.  He said  he could                                                               
find out how well "they" are staffed.                                                                                           
                                                                                                                                
TAPE 01-34, SIDE B                                                                                                              
                                                                                                                                
[A portion of the tape was inaudible.]                                                                                          
                                                                                                                                
REPRESENTATIVE  HALCRO  said  if  he gets  caught  selling,  he's                                                               
already violated the  law regardless of what he has.   Instead of                                                               
setting  arbitrary  limits,  what   about  having  some  sort  of                                                               
registration for  a person  receiving liquor  through the  mail -                                                               
providing a  point of registration?   He said to him  it seems to                                                               
be a  questionable effort that  arbitrary limits are going  to be                                                               
set  and that  there  is  this presumption  when  there are  ways                                                               
around  the limits.   And,  in some  instances, there  is a  good                                                               
justification  of why  a person  would have  more than  the limit                                                               
requires.  He said he is  looking for another way that this could                                                               
be  enforced  without  getting  people caught  in  some  kind  of                                                               
unnecessary trap.                                                                                                               
                                                                                                                                
Number 2370                                                                                                                     
                                                                                                                                
MR.  GUANELI  responded  that  the idea  mentioned  of  having  a                                                               
central distribution site where  liquor coming into the community                                                               
has to  go first, and requiring  a person to register  to get it,                                                               
is [an idea] that  has a lot of merit.  It  was considered by the                                                               
ABC Board as a possible regulation that might be adopted.                                                                       
                                                                                                                                
Number 2344                                                                                                                     
                                                                                                                                
LINDA  KESTERSON, Assistant  Attorney General,  Natural Resources                                                               
Section, Civil  Division (Anchorage), Department of  Law, said it                                                               
was adopted; however,  no community has ever used it.   She added                                                               
that it might have been used  in Fort Yukon, but she deferred the                                                               
question to the director of the ABC Board.                                                                                      
                                                                                                                                
REPRESENTATIVE HALCRO asked  if it was just an  optional tool for                                                               
communities.                                                                                                                    
                                                                                                                                
MS. KESTERSON  replied that it  is a regulation, not  in statute.                                                               
Responding  to  a  question  about  the  existing  statutes  that                                                               
address provider liability for someone  who provides [alcohol] to                                                               
someone living in a dry community, she  said if there is a ban on                                                               
importation [in a  community], a package store  wouldn't be allow                                                               
to ship alcohol  into that dry community.   She further explained                                                               
that  the package-store  owner who  sold  in a  wet community  to                                                               
someone taking the  [alcohol] into a dry  community wouldn't have                                                               
liability.    The  liability  would  come  in  when  there  is  a                                                               
shipment; however, coming  into an area that  has no restrictions                                                               
on sale,  there is no liability  on the owner of  a package store                                                               
for what the purchaser does with that alcohol.                                                                                  
                                                                                                                                
Number 2215                                                                                                                     
                                                                                                                                
MS. KESTERSON said the limitations  are for written orders or the                                                               
new  provision that  would be  added by  this bill  if a  package                                                               
store is  within 50 air miles  of a local option  community; then                                                               
there would be  the requirement of keeping track  of those sales.                                                               
However, the liability of the  package store [owner] would be the                                                               
failure to keep the record;  the bootlegging [liability] would be                                                               
on the person actually selling [the alcohol].                                                                                   
                                                                                                                                
REPRESENTATIVE HALCRO asked if there  is any additional liability                                                               
or responsibility  that [the legislature]  could [enact]  to make                                                               
sure that not only [is  the package-store owner] keeping track of                                                               
the records,  but that the  owner is also  just as liable  as the                                                               
person  selling  it.   He  said  the  enabler statute  makes  the                                                               
[enabler]  liable  to some  degree,  and  he  asked if  there  is                                                               
connection that could be made with the sellers of alcohol.                                                                      
                                                                                                                                
MS. KESTERSON responded that this  bill doesn't provide for that,                                                               
and she deferred the question back to Mr. Guaneli.                                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked for  clarification that  there are                                                               
prohibitions  against   mailing  or  selling  [alcohol]   to  dry                                                               
communities.                                                                                                                    
                                                                                                                                
Number 2146                                                                                                                     
                                                                                                                                
MS. KESTERSON replied affirmatively,  but said that is different.                                                               
She said  there is  an existing  provision that  requires keeping                                                               
track of  written orders when  one is shipping into  a restricted                                                               
community,  and  there are  penalties  against  the licensee  for                                                               
violating that provision.                                                                                                       
                                                                                                                                
REPRESENTATIVE HALCRO said he agrees  with the concept and intent                                                               
[of the legislation].   He asked: In addition  to requiring those                                                               
package stores  within a  50-mile radius of  a dry  or restricted                                                               
community to  [keep records  of alcohol  purchases above  the set                                                               
amount], could  it be  said that  if a person  comes into  one of                                                               
those package  stores and presents  his or her state  license, as                                                               
is required, and if this person  has an address from one of these                                                               
[restricted]   communities,  [there   could   be]  an   automatic                                                               
notification system that would let  [the community know that this                                                               
person purchased alcohol]?                                                                                                      
                                                                                                                                
Number 2013                                                                                                                     
                                                                                                                                
MR.  GUANELI replied  that  it is  a  record-keeping problem  and                                                               
[package-store  owners] are  not really  set  up to  do that;  it                                                               
would require  a person to  look at everybody's  driver's license                                                               
and  ascertain  where  someone  resides  to  make  that  type  of                                                               
distinction.                                                                                                                    
                                                                                                                                
REPRESENTATIVE HALCRO  noted that  the bill,  page 2,  Section 3,                                                               
already   requires  that   [a   package-store   owner]  check   a                                                               
government-issued identification  card ("ID") with  a photograph;                                                               
then  a  person needs  to  keep  a  written  record for  a  year.                                                               
Therefore, the  bill already requires  that a person note  who is                                                               
buying it and where he or she is from.                                                                                          
                                                                                                                                
MR. GUANELI responded that if a  person buys less than the amount                                                               
set  forth  in the  bill,  then  Section  3 dealing  with  record                                                               
keeping doesn't kick in.                                                                                                        
                                                                                                                                
REPRESENTATIVE HALCRO  clarified that he was  talking about those                                                               
people who buy over that amount.                                                                                                
                                                                                                                                
Number 1947                                                                                                                     
                                                                                                                                
MR. GUANELI  stated that  it puts more  pressure on  the package-                                                               
store owner to know what  communities are restricted.  He pointed                                                               
out  that for  written orders  "we" have  a list  of people  that                                                               
can't be sold to, those  that have been convicted of bootlegging.                                                               
He said  there are  other means  of having a  "red flag"  list of                                                               
notification  too; however,  he  recognized that  there could  be                                                               
something along those lines.                                                                                                    
                                                                                                                                
REPRESENTATIVE HAYES asked  how many troopers would  be needed to                                                               
do this properly.                                                                                                               
                                                                                                                                
Number 1865                                                                                                                     
                                                                                                                                
MR.  GUANELI responded  that  the federal  grant  that the  state                                                               
troopers  got  is sufficient  to  provide  five additional  state                                                               
troopers  and two  lawyers, which  will  go along  with the  ones                                                               
already dedicated  to alcohol interdictions.   He said  there are                                                               
three or  four already doing it;  there will be a  fairly sizable                                                               
unit for the  state troopers; however, it does have  to deal with                                                               
cases all  over the  state, mostly  Western and  Northern Alaska.                                                               
The federal  funding is only for  a year, and "we"  will continue                                                               
to go  for this funding  and try to  get it every  year; however,                                                               
there is no guarantee that this will  be the case.  All "we" know                                                               
for sure is that the money is available for this year.                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG  said he  is concerned because  he didn't                                                               
realize that  Fairbanks would be inside  the "net."  He  asked if                                                               
Minto,  which  is  a  dry  community, is  connected  by  road  to                                                               
Fairbanks.                                                                                                                      
                                                                                                                                
Number 1770                                                                                                                     
                                                                                                                                
ALIVA  "STEVE"  DUNNAGAN,   Lieutenant,  Alaska  State  Troopers,                                                               
Department of Public Safety  (DPS), via teleconference, clarified                                                               
that Minto  is connected to Fairbanks  by road, and is  within 50                                                               
air miles of the Fairbanks  International Airport.  He said there                                                               
is also a  liquor store in Manley Hot Springs,  which is close to                                                               
Minto,  and  that  the  community  is  an  "all-option-ban-sales-                                                               
possession" village.                                                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG said he  is concerned about the statement                                                               
that  it would  be better  if all  of the  major purchasing  were                                                               
concentrated  in  the  Anchorage   wholesale  or  retail  market,                                                               
because of  the burden  added to  businesses.   "We've" discussed                                                               
some of the  problems that revolve around that,  he remarked, and                                                               
said he  has a  little bit  of a  problem including  Fairbanks in                                                               
this.   He  mentioned that  there is  a growing  drug problem  in                                                               
rural Alaska, and asked if this was discussed in C-JAC.                                                                         
                                                                                                                                
MR. GUANELI  said it was  not specifically considered.   "We" are                                                               
finding that  there is a  bit of an  increase of harder  drugs in                                                               
rural  Alaska, and  efforts have  been focused  on the  Anchorage                                                               
International Airport  to stop it at  the place where it  is most                                                               
likely to come into Alaska,  thereby preventing it from getting a                                                               
foothold elsewhere.   He  recognized it  as a  potential problem,                                                               
but said that  getting a handle on alcohol is  really the primary                                                               
consideration.                                                                                                                  
                                                                                                                                
Number 1560                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES said it sounds as  if this is really a pilot                                                               
project because the  grant is just for one year,  and funding for                                                               
continuation [is  not assured].  With  a different administration                                                               
coming on in  two years, this may  not even be a  focus, he said,                                                               
and asked  what would happen if  the funding was not  there after                                                               
the first year.                                                                                                                 
                                                                                                                                
MR. GUANELI  responded that the  approach of  this administration                                                               
has been to  focus efforts on rural Alaska, to  solve some of the                                                               
problems, with  alcohol being  a primary one.   "We've"  done our                                                               
best to apply for whatever  non-state general funds possible, and                                                               
were successful  in getting those.   If this program  works, "we"                                                               
would  hope that  further federal  funding would  be forthcoming.                                                               
He  said he  wasn't certain  that it  was completely  accurate to                                                               
characterize it as a "pilot project."                                                                                           
                                                                                                                                
Number 1453                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI   explained  that  the   committee  has                                                               
focused  exclusively on  the bootlegging  component of  the bill.                                                               
The other  two components will  be considered on  Thursday [March                                                               
22, 2001].                                                                                                                      
                                                                                                                                
BLAIR  McCUNE, Deputy  Director,  Public  Defender Agency  (PDA),                                                               
Department   of  Administration,   via  teleconference,   offered                                                               
comments about  the fiscal note  that [the PDA] presented  in the                                                               
bill.   He  said  "we" thought  about  the increased  bootlegging                                                               
effort  early on,  and just  recently the  Department of  Law and                                                               
Public  Safety  got  funding to  work  on  this  anti-bootlegging                                                               
effort.   Most of these cases  will be brought in  state court in                                                               
rural locations, and funding and  resources to respond to the law                                                               
enforcement efforts would  be needed.  A lot of  these cases have                                                               
defense  attorneys  appointed by  the  court,  and [the  PDA]  is                                                               
responsible for them.                                                                                                           
                                                                                                                                
Number 1329                                                                                                                     
                                                                                                                                
MR. McCUNE  said as far as  the policy is concerned,  there was a                                                               
complete  and   interesting  discussion  about  the   effects  of                                                               
reducing the  [alcohol] levels.   One thing that "we"  brought up                                                               
at  the C-JAC  meetings was  that  there may  be some  unintended                                                               
consequences.   The decision to go  wet, damp, or dry  is a local                                                               
option  decision  made  by  the local  community.    [The  public                                                               
defender] caseloads  drop when communities  decide to go  damp or                                                               
dry.    He  said  there  would be  concern  about  an  unintended                                                               
consequence if  the presumptive levels  got too low.   If someone                                                               
in Bethel is  concerned about staying under those  levels and may                                                               
make a trip to Anchorage once  or twice a year, that person might                                                               
be  tempted to  reverse the  damp local  option and  go to  a wet                                                               
local  option,  which would  end  up  causing  quite a  few  more                                                               
problems.                                                                                                                       
                                                                                                                                
Number 1231                                                                                                                     
                                                                                                                                
MR. McCUNE  referred back to  the question about the  legality of                                                               
shipping alcohol  to a person  in a  local option community.   He                                                               
said he thought  it was illegal to mail, but  not illegal to ship                                                               
though  an  airfreight service.    He  added that  the  point-of-                                                               
registration idea is in AS 04.11.491(f).                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  asked Mr. McCune  if he has  a full-time                                                               
attorney,  paralegal, and  support [staff  person], and  what the                                                               
caseload is  anticipated to be.   He said  he had a  feeling that                                                               
the  bill  is  being  "loaded" for  another  person  because  the                                                               
caseload is already terrible.                                                                                                   
                                                                                                                                
MR. McCUNE said  it is a valid criticism of  the fiscal note, but                                                               
said "we"  are most  concerned with the  impact of  the increased                                                               
enforcement and  funding that other  agencies are going  to have.                                                               
He said  he hasn't tried to  get an exact caseload,  but remarked                                                               
that it  is just the amount  of work that (indisc.)  $1.4 million                                                               
in increased enforcement  efforts could end up costing  "us."  He                                                               
said  the $209,000  [outlined in  the  fiscal note]  is a  little                                                               
conservative.   He pointed  out that  it isn't  to "load  up" the                                                               
bill  because   [the  PDA]   is  really   strapped  now;   it  is                                                               
anticipating  the  enforcement  efforts  that  are  going  to  be                                                               
affecting [the PDA].                                                                                                            
                                                                                                                                
Number 1092                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG asked  what an  average caseload  is now                                                               
for one of his attorneys.                                                                                                       
                                                                                                                                
MR.   McCUNE  said   national  standards   are   about  400   new                                                               
misdemeanors  a year  for  a misdemeanor  lawyer,  and about  150                                                               
felonies  per year.   He  said [the  PDA] is  way over  that with                                                               
19,000 new cases per year, with about 68 lawyers.                                                                               
                                                                                                                                
LIEUTENANT  DUNNAGAN commented  that he  agrees with  Mr. Guaneli                                                               
that the steps  that this bill takes are fairly  modest to reduce                                                               
illegal alcohol possession  and consumption in rural  Alaska.  It                                                               
is a  complicated issue.   Speaking from his Bush  experience, he                                                               
said it  is very easy  to tell when  a large shipment  of alcohol                                                               
comes into  one of  these villages  because for  the next  day or                                                               
two,  the Village  Public Safely  Officer (VPSO)  and the  Alaska                                                               
State  Troopers  are  inundated   with  calls,    [ranging]  from                                                               
domestic  violence and  suicide to  missing persons,  because the                                                               
alcohol came in and turned the village upside down.                                                                             
                                                                                                                                
Number 0973                                                                                                                     
                                                                                                                                
LIEUTENANT   DUNNAGAN   explained   that   having   a   reporting                                                               
requirement in communities close to  villages that have this kind                                                               
of  option would  be  very  helpful for  law  enforcement.   [Law                                                               
enforcement would] be  able to query those liquor  stores after a                                                               
two- or  three-day session  when a village  has received  a large                                                               
shipment to find out who was buying it, and could focus efforts.                                                                
                                                                                                                                
LIEUTENANT DUNNAGAN recounted  a situation a couple  of years ago                                                               
in Minto, where a large shipment  of alcohol came in.  Somehow, a                                                               
15-year-old  child got  a hold  of alcohol  and drank  to excess,                                                               
crawled up  underneath a house, and  froze to death.   He said it                                                               
is hard to determine who  brought [the alcohol into the village],                                                               
but with the  new requirement, [the DPS] will be  able to do that                                                               
much more efficiently.  He  explained that bootleggers don't care                                                               
about the  age or identity of  the people they sell  to; the only                                                               
thing  that they  care  about  is the  money  generated from  the                                                               
sales.                                                                                                                          
                                                                                                                                
Number 0863                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  asked  Lieutenant  Dunnagan  about  the                                                               
federal grant  and the added troopers.   He asked for  the number                                                               
of  bootlegging cases  prosecuted now,  the conviction  rate, and                                                               
that which is anticipated under the new grant and manpower.                                                                     
                                                                                                                                
LIEUTENANT  DUNNAGAN responded  that the  number [prosecuted]  in                                                               
Fairbanks in a given year  is probably only ten bootlegging cases                                                               
that [the  DPS] submits.   He said  he didn't have  the statewide                                                               
number,  but by  adding five  state troopers  to that  particular                                                               
enforcement area,  there would  be an increase  in the  number of                                                               
cases that  [the DPS] would  be able to put  together, especially                                                               
if  cooperative  efforts  were  developing  with  federal  postal                                                               
regulators and so forth.   He said he would be  happy to find and                                                               
provide  that information  to  the committee  prior  to the  next                                                               
meeting.                                                                                                                        
                                                                                                                                
REPRESENTATIVE   ROKEBERG  asked   that  all   of  the   agencies                                                               
coordinate fiscal notes,  since it appeared that  they hadn't had                                                               
a chance to do that yet.  He asked Mr. Guaneli to assist with                                                                   
that.                                                                                                                           
                                                                                                                                
MR. GUANELI said he would see what he could do.                                                                                 
[HB 132 was held over.]                                                                                                         

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