Legislature(2005 - 2006)CAPITOL 17

01/25/2006 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 242 UNEMPLOYMENT INSURANCE FUND & TAXES TELECONFERENCED
Heard & Held
*+ HB 274 PUBLIC ACCOUNTANTS TELECONFERENCED
Heard & Held
*+ HB 373 ALCOHOL:TRANSPORT MANUFACTURE; FORFEITURE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HB 373-ALCOHOL:TRANSPORT MANUFACTURE; FORFEITURE                                                                              
                                                                                                                                
5:20:30 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be HOUSE  BILL NO. 373, "An  Act relating to the  manufacture and                                                               
transportation  of alcoholic  beverages; relating  to forfeitures                                                               
of  property  for  violations of  alcoholic  beverage  laws;  and                                                               
relating to violations of alcoholic beverage laws."                                                                             
                                                                                                                                
5:20:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KEVIN MEYER,  Alaska State  Legislature, speaking                                                               
as  the sponsor  of  HB  373, noted  that  many communities  have                                                               
adopted local options to control  the importation of alcohol.  In                                                               
fact,  in 2001  the U.S.  Congress established  the Alaska  Rural                                                               
Justice And  Law Enforcement  Commission ("commission")  to study                                                               
the challenges facing  rural Alaska.  This  summer the commission                                                               
released  a   draft  interim   report,  which   contains  several                                                               
recommended  changes to  Alaska's statutes.   Upon  reviewing the                                                               
recommendations, Representative  Meyer said  he focused  on those                                                               
that he  viewed as good.   Therefore,  HB 373 proposes,  upon the                                                               
recommendation of  the report, to change  the forfeiture statutes                                                               
to  allow  the  state  to seize  alcohol  that's  transported  in                                                               
violation of the  local option, to seize  property purchased with                                                               
the proceeds  of alcohol sold  in violation of the  local option,                                                               
and firearms  carried or  visible during  the furtherance  of the                                                               
violation could  also be  seized.   The legislation  also changes                                                               
the allowable  quantities of  alcohol such  that a  package store                                                               
may not  ship more  than 10.5  liters of  distilled spirits  in a                                                               
calendar  month to  an individual  in  a community  with a  local                                                               
option.    Representative  Meyer opined,  "This  bill  represents                                                               
reasonable changes to  the statute that will  strengthen the hand                                                               
of  law enforcement  and  communities in  their  effort to  fight                                                               
against alcohol in their communities."                                                                                          
                                                                                                                                
5:24:08 PM                                                                                                                    
                                                                                                                                
MIKE  PAWLOWSKI,  Staff  to Representative  Kevin  Meyer,  Alaska                                                               
State Legislature,  explained that  Section 1 reduces  the amount                                                               
of distilled  spirits from 12 liters  to 10.5 liters in  terms of                                                               
presumption of guilt  in a violation of Title 4.   Section 2 adds                                                               
alcoholic  beverages  transported  in  violation  of  the  common                                                               
carrier provisions to what can  be seized by the state, including                                                               
items  of  value purchased  from  the  proceeds  of the  sale  of                                                               
alcoholic  beverages  and  firearms  that  are  visible  or  were                                                               
carried during the  furtherance of a violation  to the forfeiture                                                               
provisions.     Section  3  establishes  a   procedure  that  the                                                               
Department of Public Safety must  go through to determine whether                                                               
the  [seized] property  can  be  kept.   Section  4  is merely  a                                                               
conforming amendment.  Section 5,  he noted, adds a definition of                                                               
"manufacture"  because  there  was   no  definition  in  statute,                                                               
although  the manufacture  of  alcohol in  a  community that  had                                                               
adopted a local option is illegal.                                                                                              
                                                                                                                                
5:25:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG inquired as  to the result of inserting                                                               
the term "or" on page 2, lines 7 and 15.                                                                                    
                                                                                                                                
MR. PAWLOWSKI deferred to the Department of Law (DOL).                                                                          
                                                                                                                                
5:26:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG inquired  as  to why  seven jugs  rather                                                               
than eight jugs.                                                                                                                
                                                                                                                                
MR. PAWLOWSKI pointed  out that the statute being  adjusted is AS                                                               
04.11.150,  which  refers  to  package  store  licenses.    Those                                                               
statutes refer to  10.5 liters as the standard  amount of alcohol                                                               
that can  be delivered.  For  the presumption of a  violation, it                                                               
was  made  consistent  with  what was  allowed  under  the  other                                                               
statutes.   In further response  to Representative  Rokeberg, Mr.                                                               
Pawlowski  related  his  understanding  that  when  a  person  is                                                               
involved  in  a criminal  prosecution  for  a violation  and  the                                                               
person is in  possession of 14-15 jugs of  alcohol, it's presumed                                                               
that those were  being offered for sale rather  than for personal                                                               
use.                                                                                                                            
                                                                                                                                
5:27:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG turned  attention  to  Section 3,  which                                                               
only allows  30 days for  response from someone with  an interest                                                               
in an  object being forfeited.   He highlighted that most  of the                                                               
violations occur  in rural Alaska  where [30 days] would  seem to                                                               
be a  tight time frame  since folks may  be out fishing  or doing                                                               
other activities/work that take them out of town.                                                                               
                                                                                                                                
MR. PAWLOWSKI deferred to DOL.                                                                                                  
                                                                                                                                
5:28:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN noted his support of HB 373.                                                                                
                                                                                                                                
5:28:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRAWFORD referred to the  language on page 3, line                                                               
3:   "or  items  of  value purchased  from  the  proceeds".   The                                                           
language "items of  value" could refer to  many different things.                                                           
he noted.   Therefore, he inquired  as to whether one  could lose                                                               
his/her house  if a mortgage  payment was  made with some  of the                                                               
proceeds  [of an  activity  prohibited under  AS  04.11.010 or  a                                                               
violation of a local option under AS 04.11.491].                                                                                
                                                                                                                                
MR. PAWLOWSKI  related his  understanding that  the intent  is to                                                               
mirror the drug statutes as  closely as possible, but he deferred                                                               
to DOL for specifics.                                                                                                           
                                                                                                                                
5:29:35 PM                                                                                                                    
                                                                                                                                
ANNE  CARPENETI,  Assistant   Attorney  General,  Legal  Services                                                               
Section -  Juneau, Criminal Division, Department  of Law, related                                                               
her belief that the  insertion of "or" on page 2,  lines 7 and 15                                                           
is a  cleanup by Legislative Legal.   With regard to  the concern                                                               
that someone with  an interest in an object  being forfeited only                                                               
has 30  days [to  make a claim],  Ms. Carpeneti  highlighted that                                                               
the  forfeiture occurs  30  days after  the  department has  made                                                               
reasonable efforts to [ascertain  the identity and whereabouts of                                                               
a person with an interest in the forfeited object].                                                                             
                                                                                                                                
5:31:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG surmised  then  that there  is a  60-day                                                               
window for someone with a title or claim on an item.                                                                            
                                                                                                                                
MS. CARPENETI  replied yes, clarifying  that it would be  30 days                                                               
after the service of publication.                                                                                               
                                                                                                                                
5:32:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  referred to existing statute  as specified                                                               
on  page 3,  line  13 of  HB  373.   She asked  if  there is  any                                                               
language  specifying  that  the  notification  has  to  be  in  a                                                               
specific form such as certified mail.                                                                                           
                                                                                                                                
MS. CARPENETI answered that she  believes there is in the regular                                                               
civil  procedure rules,  and she  offered  to get  back with  the                                                               
committee in regard to the specifics.                                                                                           
                                                                                                                                
5:33:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD  returned   attention  to  his  question                                                               
regarding the  language, "or  items of  value purchased  from the                                                           
proceeds" located on page 3, line 3.                                                                                        
                                                                                                                                
MS. CARPENETI  related her understanding  that in order  to seize                                                               
an item purchased by money  received from bootlegging activities,                                                               
a significant  interest has  to be  shown.   She opined  that the                                                               
[state] wouldn't  seize a  house unless  the house  was purchased                                                               
only with money received from bootlegging activities.                                                                           
                                                                                                                                
5:34:41 PM                                                                                                                    
                                                                                                                                
ED  HARRINGTON, Captain/Commander,  Alaska  Bureau  of Alcohol  &                                                               
Drug  Enforcement,   N  Detachment,  Division  of   Alaska  State                                                               
Troopers,  Department  of  Public   Safety  (DPS),  informed  the                                                               
committee that  he was also a  member of the subcommittee  on the                                                               
Alaska  Rural  Justice  and  Law  Enforcement  Commission.    Mr.                                                               
Harrington  explained  that  DPS   supports  HB  373  because  it                                                               
enhances  enforcement  efforts related  to  the  local option  in                                                               
rural  Alaska.    With  regard to  forfeiture  of  property,  Mr.                                                               
Harrington opined  that it's probably  the single  best deterrent                                                               
of importers of alcohol in rural  Alaska.  For the most part, the                                                               
property that  is seized are  conveyances such as  snow machines,                                                               
four  wheelers,  and  boats.   Generally,  those  properties  are                                                               
forfeited through the court and  most commonly during sentencing.                                                               
Mr.  Harrington  related  that   generally  real  property  isn't                                                               
forfeited, although  that's not to say  that it wouldn't/couldn't                                                               
happen.                                                                                                                         
                                                                                                                                
5:36:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD  acknowledged Mr.  Harrington's  intent,                                                               
but indicated concern  that he doesn't know the  intent of future                                                               
DPS staff.                                                                                                                      
                                                                                                                                
5:37:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG  inquired  as   to  why  the  [allowable                                                               
quantities of alcohol] has been  lowered and made consistent with                                                               
the importation allowance.                                                                                                      
                                                                                                                                
MR.  HARRINGTON explained  that the  current statute  is somewhat                                                               
confusing in  that one can possess  up to 12 liters  if one sells                                                               
alcohol, but only  10.5 if one is shipping.   He pointed out that                                                               
this is merely a reduction by  1.5 liters.  Therefore, the change                                                               
proposed in HB  373 simplifies the law by making  10.5 liters the                                                               
"common denominator."                                                                                                           
                                                                                                                                
5:39:02 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON, upon  determining no one else  wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
5:39:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN moved to report  HB 373 out of committee with                                                               
individual  recommendations  and  the  accompanying  zero  fiscal                                                               
note.  There being no objection, it was so ordered.                                                                             

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