Legislature(2011 - 2012)BARNES 124

02/09/2011 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 126 OMNIBUS BOARD EXTENSIONS TELECONFERENCED
Moved Out of Committee
*+ HB 125 ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Heard & Held
            HB 125-ALCOHOLIC BEVERAGE CONTROL BOARD                                                                         
                                                                                                                              
3:31:15 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE  BILL  NO.  125,  "An Act  moving  the  Alcoholic  Beverage                                                               
Control  Board  to the  Department  of  Commerce, Community,  and                                                               
Economic Development  and relating to duties  of that department;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
3:33:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE  HAWKER, Alaska State Legislature,  stated he                                                               
is the current  Chair of the Legislative Budget  and Audit (LB&A)                                                               
Committee.   The  LB&A Committee  sponsored  HB 125  as a  policy                                                               
bill, which  resulted from the  LB&A Committee's work  during the                                                               
last legislature.  He predicted  the previous bill, HB 126, which                                                               
would extend the ABC Board,  will pass the legislature.  However,                                                               
some issues  arose during  the legislative  audit process  of the                                                               
ABC  Board, he  said.   During its  one-year extension,  the LB&A                                                               
created a subcommittee  to review and decide where  the ABC Board                                                               
should  be  domiciled  in  state government,  which  he  said  he                                                               
thought  of  as one  of  the  more  contentious issues  the  LB&A                                                               
Committee would consider  this legislature.  He  provided a brief                                                               
history  of the  ABC Board.   He  stated that  the ABC  Board was                                                               
previously located in  the Department of Revenue  (DOR) since its                                                               
primary  function was  viewed as  a revenue  collection function.                                                               
He  pointed  out   that  alcohol  taxes  are  one   of  the  more                                                               
significant  revenue sources  to  the  state.   In  2003, at  the                                                               
request  of the  executive branch,  the  ABC Board  was moved  to                                                               
Department of  Public Safety  (DPS), where over  time it  is been                                                               
viewed as  an extension of  the criminal law  enforcement actions                                                               
in  the  state.    Over  the   course  of  a  summer's  worth  of                                                               
subcommittee   hearings,  the   LB&A's  subcommittee   considered                                                               
whether the DPS is the correct  domicile based on the ABC Board's                                                               
mission,  he said.    The committee  considered  whether the  ABC                                                               
Board's basic function  should be as a law  enforcement agency or                                                               
if its function is more a  function of the regulation of business                                                               
and  commerce, and  if so,  whether it  should be  housed in  the                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED).   He  remarked that  agencies take  on the  character of                                                               
their domicile.  Thus, when the  ABC Board was housed in the DOR,                                                               
its  focus was  to collect  revenue and  to ensure  alcohol taxes                                                               
were paid.   He offered his  belief that perhaps the  ABC Board's                                                               
law  enforcement  activities  were less  emphasized  during  that                                                               
time.                                                                                                                           
                                                                                                                                
3:37:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER said that once  the ABC Board was relocated                                                               
to the Department of Public  Safety (DPS), some people believe it                                                               
has  effectively   become  an  investigation   and  prosecutorial                                                               
activity of the state.  Some  also believe the ABC Board has lost                                                               
sight  of its  primary mission  as  a regulator  of a  legitimate                                                               
industry in the state.   He reported the LB&A's subcommittee took                                                               
testimony  this  past summer,  reached  a  concurrence, and  made                                                               
recommendations to  the LB&A.   He referred to a  one-page report                                                               
from  LB&A Committee  in  members packets.    He emphasized  that                                                               
while  the  LB&A agrees  the  ABC  Board  needs to  maintain  its                                                               
liaison  with the  law enforcement  community  to administer  the                                                               
criminal  aspects  of the  alcohol  business  in the  state,  the                                                               
hospitality industry  is a legitimate and  sanctioned industry in                                                               
Alaska.   He said  it should  first and foremost  be part  of the                                                               
DCCED  along  with all  other  commerce  regulating boards.    He                                                               
further  stated  the  LB&A's subcommittee  recommended  that  the                                                               
industry would  be best served in  DCCED.  He related  that there                                                               
were no  objections by the  LB&A Committee to bring  forward this                                                               
proposal for further legislative consideration.                                                                                 
                                                                                                                                
REPRESENTATIVE  HAWKER suggested  this  may be  one  of the  most                                                               
controversial  bills that  this  committee will  hear this  year.                                                               
Some  people,  including those  who  must  contend with  the  ill                                                               
effects of  alcohol in our  communities, possess a  strong belief                                                               
that   the  ABC   Board's  first   and   primary  obligation   is                                                               
enforcement.   They maintain that  the ABC Board should  focus on                                                               
criminally related  aspects.   Additionally, he  anticipated that                                                               
the hospitality industry  may view that all  purveyors of alcohol                                                               
are being  "cast as bad guys."   Some purveyors may  testify that                                                               
the  the ABC  Board  is being  managed and  operated  by using  a                                                               
presumption  of  guilt.   They  may  also  view the  industry  as                                                               
inherently  evil,  viewing  every   purveyor  of  alcohol  as  an                                                               
inherent  criminal.   However,  he  maintained  this industry  is                                                               
legally sanctioned  by statute  and is  heavily regulated  by the                                                               
state.  The "good guys,"  those parties who operate legitimately,                                                               
want  to be  fairly  treated  and not  be  treated as  inherently                                                               
criminal parties,  he stated.   He said  the committee  will hear                                                               
from  both sides  and will  ultimately decide  whether or  not to                                                               
move this  proposal forward.   He likened the process  as similar                                                               
to a  court trial process.   He said he hoped  the committee will                                                               
be  able to  point to  sufficient  arguments for  both sides  and                                                               
urged members  to bring HB  125 to the floor  of the House  for a                                                               
vote.                                                                                                                           
                                                                                                                                
CHAIR OLSON  remarked that  it will  take time  to hear  from the                                                               
parties and  to take  public input.   He said  this matter  is an                                                               
important one to consider.                                                                                                      
                                                                                                                                
3:42:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER,  in closing,  offered his belief  that the                                                               
health and  social services and  the law  enforcement communities                                                               
believe in an  approach that is essentially a  "cops, courts, and                                                               
cages"  approach.    However,  the  hospitality  industry  is  an                                                               
industry that does not believe  it is currently being well served                                                               
by the ABC Board as it exists in  the DPS.  He commented that the                                                               
industry  further believes  that the  ABC Board  has been  overly                                                               
zealous in its persecution of  a legal industry.  He acknowledged                                                               
that  he has  frequently been  viewed as  "a go  to guy"  for law                                                               
enforcement issues.   Yet, he  concluded that he is  satisfied an                                                               
overzealous  approach has  emerged with  the ABC  Board domiciled                                                               
under the DPS.  This industry  should be able to ask questions of                                                               
the board  but cannot since  asking for clarification on  the law                                                               
would be similar  to a person walking into  Alaska State Troopers                                                               
(AST)  office  and admitting  he/she  just  robbed  a bank.    He                                                               
described  growing  tension within  the  industry  since the  ABC                                                               
Board  chooses  to prosecute  parties  instead  of offering  them                                                               
guidance on compliance with the state's alcohol laws.                                                                           
                                                                                                                                
3:44:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER  said he  assumed  that  none of  the  ABC                                                               
Board's  laws  governing  administration  or  policies  would  be                                                               
changed  but   HB  125  would   merely  shift  the   ABC  Board's                                                               
responsibility and jurisdiction to the DCCED.                                                                                   
                                                                                                                                
REPRESENTATIVE HAWKER agreed.  He  clarified that under the bill,                                                               
the  ABC Board's  domicile or  home would  be moved  from DPS  to                                                               
DCCED.   He suggested the  main question  is to identify  the ABC                                                               
Board's primary purpose  and then decide whether  the industry is                                                               
best  managed as  an arm  of DPS  or as  part of  the DCCED.   He                                                               
reiterated   that  HB   125  does   not  make   any  changes   in                                                               
responsibilities for the sale or consumption of alcohol.                                                                        
                                                                                                                                
REPRESENTATIVE  MILLER related  he  has  received numerous  calls                                                               
advocating for  each side.   He described HB  125 as a  short and                                                               
simple bill.                                                                                                                    
                                                                                                                                
3:46:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether  a new  division would  be                                                               
created  in  the  DCCED  under   the  bill  and  also  asked  for                                                               
clarification on the overall structure.                                                                                         
                                                                                                                                
REPRESENTATIVE  HAWKER stated  that  HB 125  would  move the  ABC                                                               
Board  to the  DCCED, but  any  changes to  the DCCED's  specific                                                               
organization chart  could better be described  by the department.                                                               
In further  response to  Representative Saddler,  he said  he was                                                               
uncertain  whether  the  ABC   Board's  physical  location  would                                                               
change.  He also acknowledged  his concern over the fiscal notes.                                                               
He remarked that the department's  fiscal notes needed additional                                                               
scrutiny and improvement.                                                                                                       
                                                                                                                                
3:48:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  said he had  expected to see  a decrement                                                               
reflected in the DPS the fiscal note.                                                                                           
                                                                                                                                
REPRESENTATIVE HAWKER  agreed.   He said  he was  disappointed in                                                               
the lack  of fiscal notes since  HB 125 was introduced  some time                                                               
ago.   He  stated  that  some state  agencies  have not  produced                                                               
fiscal notes.   He  reiterated his concern  about the  DPS fiscal                                                               
note.                                                                                                                           
                                                                                                                                
3:49:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON asked  whether anything  in HB  125 would                                                               
prevent an  enforcement officer from enforcing  minor consumption                                                               
laws, conducting "stings", or any other enforcement activities.                                                                 
                                                                                                                                
REPRESENTATIVE HAWKER  answered absolutely  not, noting  that the                                                               
LB&A's  subcommittee report  did not  recommend any  reduction in                                                               
enforcement  responsibilities  of  the  ABC Board  or  the  DPS's                                                               
support for such enforcement activities.                                                                                        
                                                                                                                                
CHAIR OLSON reported that he  has known the next witness, Shirley                                                               
Gifford, for many  years, noting she previously  served as police                                                               
chief in his community.                                                                                                         
                                                                                                                                
3:50:39 PM                                                                                                                    
                                                                                                                                
SHIRLEY GIFFORD, Director, Alcoholic  Beverage Control Board (ABC                                                               
Board),  highlighted her  relevant work  experience.   She stated                                                               
that she served  on the ABC Board prior to  being selected as its                                                               
director.     She  previously  owned   a  private   training  and                                                               
consulting business, which has given  her an understanding of the                                                               
importance  of  succeeding  in  one's  own  business,  she  said.                                                               
Additionally, she  previously served as  the chief of  police for                                                               
the Soldotna Police  Department, as well as having  served for 20                                                               
years  with the  Anchorage Police  Department (APD),  retiring as                                                               
captain, she  said.  In  2003, the  ABC Board was  relocated from                                                               
the DOR to  DPS in order to  place the ABC Board  under an agency                                                               
that could better oversee its  alcohol and enforcement functions.                                                               
She offered her belief  that this was a good move.   She spoke in                                                               
opposition to HB 126.  She  detailed her service on other boards,                                                               
including serving as  a board member on  the Strategic Prevention                                                               
Framework State  Incentive Grant  (SPF SIG),  the plan  to reduce                                                               
underage  drinking, and  the Alaska  Strategic Highway  Planning,                                                               
with its  primary emphasis  on underage  drinking.   She reported                                                               
that underage  drinking has  been a costly  problem in  the state                                                               
for some time.   She stressed the  cost to the state  is huge. In                                                               
2005,  the  cost associated  with  underage  drinking was  $315.5                                                               
million.  She offered her  support for the ABC Board's compliance                                                               
check program.  She disagreed that  the ABC Board is as broken as                                                               
was portrayed by the LB&A  committee's report.  She surmised that                                                               
the LB&A's  committee likely  heard from a  small segment  of the                                                               
industry that is  convinced the ABC Board is "too  hard on them."                                                               
The ABC Board has made  tremendous improvements in its compliance                                                               
check program  and has met  the audit  recommendations, including                                                               
developing  written   policy  and   procedures  as  well   as  an                                                               
enforcement strategic plan.                                                                                                     
                                                                                                                                
3:54:09 PM                                                                                                                    
                                                                                                                                
MS.  GIFFORD  said  that  the  ABC  Board  has  since  identified                                                               
measureable goals  and is currently on  track to meet them.   She                                                               
offered her  belief that  transferring responsibility  to another                                                               
agency  would  be costly,  would  result  in inefficiencies,  and                                                               
would likely  require substantial  effort to physically  move the                                                               
office.    Last  legislature,  the  ABC  Board  prepared  written                                                               
compliance check  policy and  procedures (P&P)  in response  to a                                                               
request  by  a  legislator.     The  P&P  was  submitted  to  the                                                               
legislature and since  she did not receive any  feedback she took                                                               
that  to be  positive.   She noted  the P&P  incorporated changes                                                               
suggested   by  the   Cabaret   Hotel   Restaurant  &   Retailers                                                               
Association (CHARR), including  requiring random selection checks                                                               
instead  of  performing compliance  checks  "bar  by bar."    She                                                               
explained the selection  process the investigators use.   The ABC                                                               
Board's  computer program  randomly  selects up  35 licensees  in                                                               
Alaska's larger  communities for the  investigator to check.   In                                                               
smaller communities  such as Nome, the  investigator would simply                                                               
conduct  as  many  compliance  checks  as  possible.    Once  the                                                               
establishment has  been checked,  another compliance  check would                                                               
not  be performed  on the  licensee during  the remainder  of the                                                               
year, unless  the bar/liquor store failed  the initial compliance                                                               
check.  In those instances,  the establishment would be revisited                                                               
to ensure that  underage drinking was not  happening, she stated.                                                               
Some  licensees   hold  several   licenses,  such   as  "Chilkoot                                                               
Charlie's"  in Anchorage.   Some  licensees complained  that more                                                               
than one  compliance check was  being conducted so the  ABC Board                                                               
pulled duplicate  licenses from  its system  to help  ensure that                                                               
only  one compliance  check is  performed per  establishment each                                                               
year.   Not all licensees are  checked each year, she  noted.  In                                                               
2010,  the  ABC Board  only  performed  compliance checks  on  46                                                               
percent of licensees, she reported.                                                                                             
                                                                                                                                
3:57:35 PM                                                                                                                    
                                                                                                                                
MS. GIFFORD asserted that the ABC  Board's goal is to implement a                                                               
fair  and  objective  method  for its  compliance  checks.    She                                                               
provided the  ABC Board's goals for  compliance checks, including                                                               
its goal  to check 75 percent  of the licensees in  Anchorage, 50                                                               
percent  in Fairbanks  and Juneau,  and approximately  25 percent                                                               
for  any on-road  and  off-road establishments.    The number  of                                                               
compliance checks for rural areas  are less since fewer licensees                                                               
are  located in  rural areas.   Additionally,  the investigator's                                                               
travel is more costly to travel to rural areas, she said.                                                                       
                                                                                                                                
MS. GIFFORD  related that investigators  in Juneau  and Fairbanks                                                               
work  with the  Alaska  State Troopers.    Currently, the  Juneau                                                               
investigator has been working with  the AST on the Aleutian Chain                                                               
communities.   By  using  the AST  airplane  when visiting  rural                                                               
Alaska  communities,  an  investigator  can cover  over  a  dozen                                                               
communities  in  a  13-hour  shift.     She  remarked  that  some                                                               
licensees  commented  they had  not  previously  been subject  to                                                               
compliance  checks.    Recently   the  ABC  Board's  investigator                                                               
assisted  the   licensees  in  Tanana  and   McGrath  with  their                                                               
paperwork and  helped them comply  with other  requirements, such                                                               
as signage.   The  investigator did not  write any  citations but                                                               
provided  training  instead.    When the  ABC  Board  receives  a                                                               
complaint,  an  investigator is  duty  bound  to investigate  the                                                               
complaint.    She stressed  that  the  ABC Board's  investigators                                                               
assist owners in complying with the alcohol laws every day.                                                                     
                                                                                                                                
4:00:37 PM                                                                                                                    
                                                                                                                                
MS.  GIFFORD  asserted the  ABC  Board's  philosophy and  primary                                                               
mission,  is to  assist owners  and help  applicants comply  with                                                               
liquor laws.   She disagreed that its mission has  been to create                                                               
barriers  and   prevent  issuance   of  liquor  licenses.     She                                                               
highlighted beneficial changes the  ABC board has made, including                                                               
an assessment method to evaluate  potential underage buyers.  She                                                               
used  a panel  of people  to  "assess" the  underage buyers  ages                                                               
since it's  important that underage  buyers clearly appear  to be                                                               
underage.    The  ABC  Board's  Board  of  Director's  group  was                                                               
comprised of  five citizens, including  three public  members and                                                               
two industry representatives.  The  panel tried to guess the ages                                                               
of the  eleven potential underage  buyers and if  anyone appeared                                                               
to be of  legal age, he/she was not used  for "sting" operations.                                                               
Sometimes underage  buyers were  used for other  operations, such                                                               
as  for  "shoulder  taps,"  which  are  situations  in  which  an                                                               
underage person  randomly asks  someone to  buy liquor  for them,                                                               
after telling  the potential buyer  that he/she is underage.   If                                                               
the person  being solicited during  a "shoulder tap"  buys liquor                                                               
for the underage person, the buyer would be cited.                                                                              
                                                                                                                                
4:02:12 PM                                                                                                                    
                                                                                                                                
MS. GIFFORD added  that people who purchase  alcohol for underage                                                               
teenagers often  have lengthy criminal histories.   She described                                                               
other efforts the ABC Board  has taken to improve its enforcement                                                               
activities, such  as separating  out inspections  from compliance                                                               
checks in an effort to reduce  the appearance of "trying to catch                                                               
someone" who  has passed their  compliance check but  has signage                                                               
or other  administrative issues.   When an  investigator observes                                                               
signage  or   other  issues  during   a  compliance   check,  the                                                               
investigator and area investigator  would conduct a separate site                                                               
check  to help  the  owner correct  any issues,  she  said.   She                                                               
reported  that  the ABC  Board  has  four investigators  and  one                                                               
enforcement unit  supervisor to  cover the  entire state.   Thus,                                                               
the  ABC  Board relies  on  local  police  and the  Alaska  State                                                               
Troopers  (AST) to  assist them  in enforcing  liquor laws  under                                                               
Title  4, she  advised. Since  license fees  are returned  to the                                                               
local  police department,  the  ABC Board  can  request that  the                                                               
department  not  refund  any license  fees  collected  until  the                                                               
liquor laws  are enforced.  She  related an incident in  which it                                                               
was  necessary to  remind a  police chief  to enforce  the liquor                                                               
laws or lose the grant monies.                                                                                                  
                                                                                                                                
MS. GIFFORD offered her belief  the ABC Board's staff experiences                                                               
excellent communications  with police departments.   The DPS also                                                               
shares  its proprietary  information and  allows the  ABC Board's                                                               
investigators to accompany  AST on the DPS  aircraft, which saves                                                               
the ABC  Board about $10,000  per year in travel  costs incurred.                                                               
She offered  his belief that  the DPS charges  other departments'                                                               
personnel for travel costs.                                                                                                     
                                                                                                                                
MS.   GIFFORD    acknowledged   some   people    have   expressed                                                               
dissatisfaction  with  compliance  checks   since  no  one  likes                                                               
getting cited, but  the ABC Board has the  responsibility to hold                                                               
licensees  accountable.     She   pointed  out   that  frequently                                                               
investigators issue  a notice of  violation without  imposing any                                                               
fine.                                                                                                                           
                                                                                                                                
4:06:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  recalled  that  in 2005,  the  cost  for                                                               
underage  drinking  in  Alaska  was $315.5  million.    He  asked                                                               
whether  she thought  the ABC  Board's efforts  to curb  underage                                                               
drinking were successful.                                                                                                       
                                                                                                                                
MS.  GIFFORD answered  that the  figures were  obtained from  the                                                               
Plan  to  Prevent Underage  Drinking.    In further  response  to                                                               
Representative Johnson, she  agreed that the cost is  a huge cost                                                               
to  the state  and  she did  not consider  the  cost of  underage                                                               
drinking as a success.                                                                                                          
                                                                                                                                
CHAIR OLSON  clarified that the  2005 figures relate  strictly to                                                               
the costs associated with underage drinking.                                                                                    
                                                                                                                                
4:07:44 PM                                                                                                                    
                                                                                                                                
MS.  GIFFORD  outlined  categories of  problems  associated  with                                                               
underage  drinking,  including   youth  violence,  youth  traffic                                                               
crashes, high-risk  sex ages 14-20,  youth property  crime, youth                                                               
injury, poisonings  and psychoses,  fetal alcohol  syndrome (FAS)                                                               
among mothers ages 15 to 20, and youth alcohol treatment.                                                                       
                                                                                                                                
REPRESENTATIVE  JOHNSON  offered  his  belief  that  the  state's                                                               
enforcement efforts are not working.                                                                                            
                                                                                                                                
MS. GIFFORD speculated that if the  ABC Board were to "let up" on                                                               
its  enforcement  efforts  that  the  potential  exists  for  the                                                               
problem to escalate even more.                                                                                                  
                                                                                                                                
REPRESENTATIVE JOHNSON  asked what  would change  besides reduced                                                               
transportation costs,  which the state currently  absorbs through                                                               
another department,  for the  ABC Board if  it were  relocated to                                                               
DPS.  The job responsibilities  would be consistent, he remarked.                                                               
He also asked what would cause the ABC Board to "let up."                                                                       
                                                                                                                                
MS.  GIFFORD said  she hoped  the enforcement  efforts would  not                                                               
"let  up."   She expressed  concern  that by  relocating the  ABC                                                               
Board to the  DCCED, the working relationship with  the DPS would                                                               
change.   She stressed that the  ABC Board has developed  a close                                                               
working relationship  the AST and  local police.  She  offered an                                                               
example of cooperative work, noting  she maintains a registration                                                               
list of  people not allowed  to import or possess  alcohol, while                                                               
the AST  investigates any suspected  bootlegging.   She expressed                                                               
concern that changing the department's  oversight could result in                                                               
a loss  of communication.  She  offered her belief that  she also                                                               
gains  credibility  by  being  housed with  DPS.    She  recalled                                                               
auditors questioned  how she  knew the  AS alcohol  statutes were                                                               
being  enforced and  she answered  that  she knew  the laws  were                                                               
being enforced because police departments  have a duty to enforce                                                               
laws.   She  was  not  certain whether  the  auditors would  have                                                               
accepted her  answer if the ABC  Board had been housed  at DCCED.                                                               
She recalled being invited to  serve on an Alaska Crime Reporting                                                               
Committee, which  she felt  was due to  her affiliation  with the                                                               
DPS and the law enforcement community.   "As much as people would                                                               
like  to  say that  nothing  will  change, I  absolutely  believe                                                               
things will change," she said.                                                                                                  
                                                                                                                                
4:11:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  her to  confirm  whether  license                                                               
checks  are randomly  selected  by a  computer  program and  once                                                               
checked that the licensee is  aware that no additional compliance                                                               
checks will occur for the remainder of the year.                                                                                
                                                                                                                                
MS. GIFFORD  agreed, but  noted one exception,  such that  in the                                                               
event a complaint is filed that  the ABC Board would take further                                                               
action  to investigate  the complaint.   In  further response  to                                                               
Representative  Saddler, she  agreed the  licensees are  aware of                                                               
the one compliance check per year.                                                                                              
                                                                                                                                
4:12:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON asked  for clarification on communication                                                               
changes, since the liquor laws  and ABC Board's regulations would                                                               
not  be changed.   He  offered his  belief that  communication is                                                               
pretty simple in our electronic world.                                                                                          
                                                                                                                                
MS. GIFFORD recalled  grappling with the fiscal  impact since the                                                               
ABC Board would  need to get past the DPS's  firewall in order to                                                               
access  information.    She  pointed out  the  DPS  must  protect                                                               
people's   names  and   backgrounds,  which   cannot  be   shared                                                               
publically,  but   all  of  the   ABC  Board's  work   is  public                                                               
information.    The  ABC  Board   also  uses  the  Alaska  Public                                                               
Information Network  and she  was unsure of  how the  transfer to                                                               
DPS would affect access to confidential information.                                                                            
                                                                                                                                
4:13:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON stated that having  served as a mayor, he                                                               
has personally  observed compliance checks in  Fairbanks, but has                                                               
never observed the  AST or local police  involved with compliance                                                               
officers.                                                                                                                       
                                                                                                                                
MS. GIFFORD  recalled during  her tenure  as the  Soldotna Police                                                               
Chief, prior  to being  hired by  the ABC  Board that  the police                                                               
department performed the compliance  checks.  She reiterated that                                                               
the  Juneau investigator  works with  the compliance  officers on                                                               
compliance checks.  She indicated  that two investigators are now                                                               
armed,  but prior  to  achieving that  status  the officers  were                                                               
accompanied by the  city police or AST troopers.   She noted that                                                               
when officers  were not available, the  compliance officers often                                                               
work  alone.   She  remarked  that  the ABC  Board  investigators                                                               
attend  police  department  briefings  and train  at  the  police                                                               
academies.   She  reiterated that  four  investigators cover  the                                                               
statewide work.                                                                                                                 
                                                                                                                                
4:15:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  for   clarification  on  the  ABC                                                               
Board's investigator training  and certification, specifically as                                                               
it relates specifically to investigators who carry weapons.                                                                     
                                                                                                                                
MS.  GIFFORD answered  that the  investigators are  bound by  the                                                               
AST's  operating   procedures  manual.    She   stated  that  the                                                               
investigators must  qualify at the firing  range annually, noting                                                               
that those who  carry weapons are those who have  not been out of                                                               
police work for longer than three  years.  She explained that one                                                               
investigator  previously served  as  a  Juneau Police  Department                                                               
(JPD)  officer, and  one  transferred  from the  AST  to the  ABC                                                               
Board.    The  ABC  Board's  investigators  adhere  to  the  same                                                               
qualifications as an AST trooper,  she said.  In further response                                                               
to  Representative  Saddler,  she  explained that  it  is  not  a                                                               
requirement,  but the  ABC Board  has adopted  the Alaska  Police                                                               
Standards     Council's    requirements     for    qualification.                                                               
Investigators who have not served  within three years must attend                                                               
a two-week police academy and  those who have not actively served                                                               
for ten years, must attend a full police academy, she said.                                                                     
                                                                                                                                
4:17:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked whether  the division  provides the                                                               
investigators with weapons.                                                                                                     
                                                                                                                                
MS. GIFFORD answered yes.   In further response to Representative                                                               
Saddler, she  responded that the ABC  Board's investigators train                                                               
at the range four times a year, and qualify once annually.                                                                      
                                                                                                                                
4:17:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER asked  whether  statistics were  available                                                               
prior  to 2003  that  demonstrate the  ABC  Board functions  more                                                               
efficiently in one department over the other.                                                                                   
                                                                                                                                
MS. GIFFORD answered  no.  She explained  she revamped statistics                                                               
since  the  compliance checks  were  previously  compared to  the                                                               
number of licenses instead of  to the number of checks conducted.                                                               
She said  she has reliable  statistics for the past  three years,                                                               
but does  not have prior  statistics for the  compliance program.                                                               
She  elaborated  fees  collected  are directed  to  local  police                                                               
agencies to  cover overtime costs,  but currently grant  funds to                                                               
enforce  underage drinking  laws  fund  a fulltime  investigator.                                                               
She offered to further research the ABC Board statistics.                                                                       
                                                                                                                                
4:19:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER  asked her  to  review  the basic  primary                                                               
enforcement  activity for  compliance checks  when the  ABC Board                                                               
receives a complaint.                                                                                                           
                                                                                                                                
MS. GIFFORD  responded that when  a complaint is  received, often                                                               
from  another  licensee,  she arranges  for  underage  buyers  to                                                               
attempt  to buy  alcohol  using their  own  identification.   The                                                               
underage buyers do  not use fake identification nor  does she ask                                                               
the underage  buyer to dress  up to look  older.  The  reason for                                                               
the  compliance check  is  to  ensure that  the  licensee is  not                                                               
selling  to underage  buyers.   If an  establishment sells  to an                                                               
underage  buyer  the  investigator  writes a  summons.    If  the                                                               
establishment refuses to  sell to the ABC  Board's underage buyer                                                               
then  the  clerk  or bartender  will  receive  a  "congratulation                                                               
card".  In further response  to Representative Miller, she agreed                                                               
that if  the bartender or  clerk sold  to an underage  person the                                                               
ABC Board's  investigator would cite  the person  selling liquor.                                                               
She acknowledged  that sometimes the barkeeper  will call his/her                                                               
manager but  the investigator would  not require he/she to  do so                                                               
since   the  board   is  not   involved   in  the   owner/manager                                                               
disciplinary actions.                                                                                                           
                                                                                                                                
4:23:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER asked  for clarification  of instances  in                                                               
which people  are "carded" at  the door.   He assumed  the person                                                               
buying a  drink would need  to have identification  checked again                                                               
at bar.                                                                                                                         
                                                                                                                                
MS. GIFFORD  answered that  if an establishment  has a  system to                                                               
check  identification  at  the   door,  the  bartender  does  not                                                               
normally  recheck  the   client's  identification  unless  he/she                                                               
suspects the person buying alcohol is underage.                                                                                 
                                                                                                                                
4:23:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  for clarification,  on whether  the                                                               
ABC Board  would have access  to public  safety system if  it was                                                               
moved to the DCCED.                                                                                                             
                                                                                                                                
MS. GIFFORD said she is not  aware that the DPS would allow other                                                               
departments  to  use  their  system.    In  further  response  to                                                               
Representative Seaton, she agreed to verify the policy.                                                                         
                                                                                                                                
4:25:09 PM                                                                                                                    
                                                                                                                                
ELLEN  GANLEY, Public  Member, Alcoholic  Beverage Control  Board                                                               
(ABC Board), stated that she serves  as the Vice Chair of the ABC                                                               
Board and previously served on the  ABC board for over ten years.                                                               
She  explained  that she  was  originally  appointed due  to  her                                                               
public health  background.  She  asked to speak in  opposition to                                                               
HB 125,  stating it  would not  be a  good idea  to move  the ABC                                                               
Board to DCCED.   She asserted that  DPS has been a  good fit for                                                               
the board.   When she first started serving on  the ABC board, it                                                               
was housed  in DOR and  had a number of  problems.  When  the ABC                                                               
Board moved to  DPS it seemed like a better  fit above and beyond                                                               
its basic  licensing responsibilities  she said.   The  ABC Board                                                               
relies heavily on local police  and AST for enforcement of liquor                                                               
laws.  She  further said that it has led  to positive interaction                                                               
between the  board and DPS.   She recalled at the  last ABC Board                                                               
meeting the  new DPS  Commissioner and  AST Director  attended in                                                               
order to discuss common issues.                                                                                                 
                                                                                                                                
4:27:46 PM                                                                                                                    
                                                                                                                                
MS. GANLEY said the cost to  relocate, in terms of staff time and                                                               
money, would result  in a loss of focus in  the ABC Board's role.                                                               
She addressed  compliance checks, stating  that 98 to  99 percent                                                               
of its licensees are good  licensees and operate good businesses.                                                               
She  acknowledged  that  the  industry  has  been  unhappy  about                                                               
compliance  checks, but  stressed the  importance of  enforcement                                                               
since alcohol abuse  is Alaska's most pressing  public health and                                                               
public  safety  issue.   She  also  recalled  that early  on  the                                                               
failure rate in Fairbanks for  compliance checks was fairly high,                                                               
ranging  about 50  percent, which  mean lots  of underage  people                                                               
were  being  served in  licensed  premises.   She  surmised  that                                                               
serving  minors was  not  due to  maliciousness  or for  business                                                               
reasons, but  was simply because  bartenders or servers  were not                                                               
checking licenses  for proof  of age.   In  recent years  the ABC                                                               
Board  has seen  rate of  licensees passing  compliance increase.                                                               
She said  people under 21  are finding  it more difficult  to buy                                                               
alcohol in  licensed premises, which  she viewed as a  good thing                                                               
since it  goes beyond DPS policy  and the ABC Board's  policy and                                                               
translates  to   good  public   health  policy.     One   of  the                                                               
cornerstones  of public  health  is surveillance  and control  of                                                               
disease,  air,  and  water  quality.    She  observed  that  once                                                               
enforcement   activities  are   effective  and   surveillance  is                                                               
reduced,  that  eventually  the   problems  would  resurface  and                                                               
escalate.   In closing, she said  that "she really would  hate to                                                               
see that happen."                                                                                                               
                                                                                                                                
4:30:28 PM                                                                                                                    
                                                                                                                                
JOHN LUCKING,  Chief of Police; President;  Alaska Peace Officers                                                               
Association  (APOA),  stated  that  the APOA  represents  over  a                                                               
thousand  law enforcement  officers,  correctional officers,  and                                                               
probation  officers in  Alaska.   The APOA  furthers fraternizing                                                               
among coworkers  and provide training.   He related that  an APOA                                                               
committee tracks  legislation.  The APOA's  subcommittee recently                                                               
met and is adamantly opposed to  HB 125, which would move the ABC                                                               
Board to  the DCCED.  He  offered his belief that  the move would                                                               
harm  the  continuity  of enforcement  and  would  challenge  the                                                               
relationship  between the  ABC Board  and  other law  enforcement                                                               
agencies.  He  has served in Alaska as Police  Chief for 12 years                                                               
and as  an officer for  over 26 years.   During this time  he has                                                               
observed the ABC Board's operation under the DOR and the DPS.                                                                   
                                                                                                                                
CHIEF LUCKING offered his belief  that the board has gained great                                                               
credibility in the "eyes of law  enforcement."  The ABC Board has                                                               
developed   mutual  trust,   its   staff   participates  in   law                                                               
enforcement  training,   and  many   of  its  employees   have  a                                                               
background in  law enforcement.   The Soldotna  Police Department                                                               
partners with  ABC Board investigators  and work  hand-in-hand on                                                               
"shoulder  taps."   He  related  that he  authorizes  one of  his                                                               
officers  to   don  plain  clothes   to  assist  the   ABC  Board                                                               
investigator,  which  he  said illustrates  the  level  of  trust                                                               
between his agency  and the ABC Board under  Director Gifford and                                                               
the  DPS's  Commissioner  Masters.   His  agency's  time,  tools,                                                               
resources,  and assistance  are also  shared with  the ABC  Board                                                               
while it operates  under DPS.  He  characterized the relationship                                                               
as  a  "two-way  street."   The  ABC  Board's  investigators  are                                                               
invited to  participate in the  Soldotna police  training because                                                               
of the shared  function and common goals,  which is reciprocated.                                                               
The  ABC  Board's  investigators   have  also  been  "tapped"  to                                                               
instruct and  advise law enforcement  in Alaska, with  respect to                                                               
the statutes in AS 04.                                                                                                          
                                                                                                                                
CHIEF  LUCKING   remarked  that  voluntary  compliance   is  much                                                               
preferred to  catching someone  doing something  wrong.   He said                                                               
that  that  the  ABC  Board  could  continue  with  the  positive                                                               
reputation  under   the  DPS,   which  enhances   recruitment  of                                                               
qualified people with  good attitudes.  He  characterized the ABC                                                               
Board's staff  as confident  and professional.   He  said, "We're                                                               
happy with  them."  He  related that the ABC  Board's enforcement                                                               
actions should  have little effect  on legitimate  operators, but                                                               
perhaps the  [committee] is hearing  from the vocal  minority who                                                               
have  had  past  issues.    He  asserted  that  the  ABC  Board's                                                               
enforcement brings  accountability to  violators, is  a deterrent                                                               
to potential violators, and represents  an opportunity to address                                                               
issues before  problems result.   He  said, "I  can tell  you and                                                               
show you  laws and give you  all kinds of numbers  about how much                                                               
police time in my community is invested because of alcohol."                                                                    
                                                                                                                                
4:35:54 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON acknowledged  that  the  Soldotna Police  Department                                                               
conducts the compliance checks in Soldotna.                                                                                     
                                                                                                                                
CHIEF  LUCKING responded  that his  department partners  with ABC                                                               
Board to conduct compliance checks.   He recalled a time in which                                                               
the department  conducted compliance  checks through grants.   He                                                               
said he much prefers the current situation.                                                                                     
                                                                                                                                
4:36:37 PM                                                                                                                    
                                                                                                                                
KEITH MALLARD,  Division Director,  Alaska State  Troopers (AST),                                                               
Department  of  Public  Safety (DPS),  speaking  from  his  prior                                                               
position  as  the Commander;  Alaska  Bureau  of Alcohol  &  Drug                                                               
Enforcement (ABADE), said that he  has enjoyed and counted on the                                                               
relationship  to  enforce   bootlegging  regulations  in  Western                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR  OLSON  expressed his  interest  in  hearing from  the  law                                                               
enforcement  community  and  advised  that  the  bill  will  have                                                               
another public hearing.                                                                                                         
                                                                                                                                
4:38:36 PM                                                                                                                    
                                                                                                                                
BRAD JOHNSON, Deputy Chief,  Fairbanks Police Department; Member,                                                               
Alaska Association  of Chiefs of  Police (AACOP),  explained that                                                               
the AACOP represents  nearly every local, state,  and federal law                                                               
enforcement and corrections  agency in Alaska.  He  referred to a                                                               
letter  in  members'  packets,  and  read a  portion  of  it,  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Our Board of Directors  has reviewed HB 125's potential                                                                    
     impact  on  public  safety.     Our  membership  is  in                                                                    
     opposition  to moving  the  Alcoholic Beverage  Control                                                                    
     Board from  under the Department  of Public  Safety and                                                                    
     placing   them  under   the  Department   of  Commerce,                                                                    
     Community and  Economic Development.   We  request that                                                                    
     you oppose  this legislation and  stop it  from further                                                                    
     consideration within the House of Representatives.                                                                         
                                                                                                                                
CHIEF JOHNSON  advised that AACOP  feels this proposal  is driven                                                               
by  the alcohol  industry which  seeks  to lessen  the impact  of                                                               
effective   law  enforcement   on   their   activities.  In   our                                                               
communities we work  closely with members of  the alcohol service                                                               
industry  and appreciate  that the  majority of  them make  every                                                               
effort to comply  with regulation and law.   Unfortunately, a few                                                               
have been less  conscientious in these efforts and,  as a result,                                                               
have been  subject to legal action  in the past. We  suspect that                                                               
this latter  group is  largely behind this  effort to  weaken the                                                               
enforcement  activities of  the  ABC  Board by  moving  it to  an                                                               
administrative division of the state government.                                                                                
                                                                                                                                
CHIEF JOHNSON related that public  safety officers and executives                                                               
recognize  the significant  contribution the  ABC Board  makes to                                                               
the  effort of  reducing  and preventing  underage drinking  when                                                               
alcohol  continues   to  be  purchased  directly   from  licensed                                                               
premises by underage persons.   Of all alcoholic beverage control                                                               
agencies across the  nation the majority are  either under public                                                               
safety or are independent departments or commissions.                                                                           
                                                                                                                                
4:41:37 PM                                                                                                                    
                                                                                                                                
CHIEF JOHNSON continued by reading:                                                                                             
                                                                                                                                
     Municipalities must  enforce Title  4 laws in  order to                                                                    
     obtain   the  refunds   of   license   fees  in   their                                                                    
     municipalities.  The  ABC Board,  as  part  of DPS,  is                                                                    
     actively  participating in  a joint  effort to  improve                                                                    
     local  law   enforcement's  ability  to   report  their                                                                    
     enforcement activity  and document  their efforts.   He                                                                    
     said the  ABC Board  relies on  local police  and state                                                                    
     troopers  in the  enforcement  of Title  4  and 13  AAC                                                                    
     regulations.  With only  four  investigators to  handle                                                                    
     all inspections, compliance  checks, shoulder taps, and                                                                    
     investigations that  arise out  of violations,  the ABC                                                                    
     Board  depends on  other law  enforcement agencies  for                                                                    
     enforcement.  Although one  could say  this should  not                                                                    
     change, it  would. The structure has  provided for good                                                                    
     communications and  recognition that  the ABC  Board is                                                                    
     an important part of public  safety. The credibility of                                                                    
     the ABC Board investigators  comes with being employees                                                                    
     of DPS.                                                                                                                    
                                                                                                                                
CHIEF JOHNSON concluded by reading:                                                                                             
                                                                                                                                
     For the  safety of  our communities and  the continued,                                                                    
     uninterrupted,   collaboration   between   the   Alaska                                                                    
     Alcoholic  Beverage Control  Board  and our  respective                                                                    
     law  enforcement  agencies,  we would  appreciate  your                                                                    
     support in  assuring this  bill does  not pass.   Thank                                                                    
     you for your consideration.                                                                                                
                                                                                                                                
4:42:32 PM                                                                                                                    
                                                                                                                                
DALE  FOX, President  and CEO,  Alaska Cabaret,  Hotel Restaurant                                                               
and  Retailers  Association   (CHARR),  thanked  the  Legislative                                                               
Budget and  Audit Committee (LB&A)  for spending  countless hours                                                               
this summer  on this issue.   The LB&A concluded that  moving the                                                               
ABC Board to the  DCCED was a "smart move."   He asked to address                                                               
two issues  some of  his opponents  have raised.   One is  how to                                                               
address  licensees  as  it  relates  to  underage  drinking,  and                                                               
whether this proposed move would  impact enforcement.  He pointed                                                               
out underage drinking  poses challenges for the  industry and the                                                               
ABC Board,  including how  to educate  and communicate  with over                                                               
20,000 industry employees.  He  said that education combined with                                                               
enforcement  is  the  answer.     A  few  educational  activities                                                               
developed  by the  industry include  alcohol server  training for                                                               
everyone involved in the service and  sale of alcohol.  Alaska is                                                               
only  one of  six  states  that has  100  percent alcohol  server                                                               
training.   He recommended  "born on"  calendars and  stickers to                                                               
assist servers in  doing the math to determine a  buyer's age and                                                               
to use identification  flip cards and point of  sale materials in                                                               
multiple  languages,  which  he  asserted all  work.    A  survey                                                               
conducted  by  the substance  abuse  and  mental health  services                                                               
administration  showed  that Alaska  retailers  are  the best  in                                                               
nation in  refusing underage minors.   He agreed that  Alaska has                                                               
an  underage  drinking   problem  but  that  it   does  not  from                                                               
retailers.  Even though Alaska's  retailers are among the best in                                                               
the  nation,  the  industry  wants  to work  with  the  state  on                                                               
improvements and to  take advantage of new  opportunities to help                                                               
licensees to become even better by using educational tools.                                                                     
                                                                                                                                
4:45:11 PM                                                                                                                    
                                                                                                                                
MR. FOX  asserted that the  ABC Board and AST's  primary interest                                                               
has been  in issuing citations but  he has not seen  any evidence                                                               
of any  interest in efforts to  educate or communicate.   He said                                                               
that CHARR  has approached the ABC  Board with its ideas  but has                                                               
not received  any response to  any suggestions.  He  further said                                                               
the  industry  believes that  the  DCCED  would provide  business                                                               
friendly educational  tools to help  the 20,000  industry members                                                               
do  an  even  better  job.   He  suggested  the  agency  consider                                                               
conducting seminars  to assist  licensees understand  the complex                                                               
AS 04,  and to develop  multi-lingual tools to help  thousands of                                                               
industry  employees and  licensees who  use English  as a  second                                                               
language.  Additionally, the department  could work with CHARR in                                                               
distributing existing and  effective tools such as  the "Born On"                                                               
calendars,  and  could identify  new  tools  and areas  in  which                                                               
licensees and their employees need  assistance.  Alaska retailers                                                               
are the  best in  nation in  refusing service  to minors  but "we                                                               
want  to  do better,"  he  said.    He  concluded that  the  most                                                               
effective way to  accomplish this goal is through  education.  He                                                               
offered his  belief that by  working with the DCCED  the industry                                                               
could perform even better.                                                                                                      
                                                                                                                                
4:46:38 PM                                                                                                                    
                                                                                                                                
MR.  FOX  then  switched  gears to  "enforcement"  efforts.    He                                                               
reported  that for  over 40  years the  DOR administered  the ABC                                                               
Board.    He attested  that  throughout  those years  substantial                                                               
cooperation existed  between the  ABC Board,  the AST,  and local                                                               
police.  This  proposed move would not impact  enforcement in any                                                               
way.    He said  the  LB&A  considered  that issue  in-depth  and                                                               
concluded,   quoting   from   Representative   Hawker's   sponsor                                                               
statement, "HB  125 does not  restrict or change  the enforcement                                                               
responsibilities  of  the  board  or  the  Department  of  Public                                                               
Safety."   Additionally, he  commented that  the ABC  Board's top                                                               
three positions  are occupied by  two former police chiefs  and a                                                               
former  AST trooper.   Thus,  it  is "not  even conceivable  that                                                               
enforcement  will be  diminished under  this administration,"  he                                                               
said.   Further, the  grants for compliance  checks do  not allow                                                               
the ABC Board  to spend funds for other projects  so he predicted                                                               
that stings will continue at a  robust rate.  He recapped the ABC                                                               
Board's  history under  DOR, reiterating  that enforcement  would                                                               
continue under the proposed move.   He further offered his belief                                                               
that the  ABC Board and DPS  have not been open  to education and                                                               
training,  which he  deemed  as a  critical  component to  reduce                                                               
underage  drinking.   He furthersaid  the industry  believes that                                                               
the DCCED,  who specialize  in helping  businesses, will  be more                                                               
open to education and training.                                                                                                 
                                                                                                                                
4:48:21 PM                                                                                                                    
                                                                                                                                
GARY  SUPERMAN, Owner,  Hunger Hut  Bar, Motel,  & Liquor  Store,                                                               
said that as an owner that he  resents the idea the industry is a                                                               
criminal element.  He related a  scenario in which an AST trooper                                                               
entered his  premises just  before closing.   The bar  held three                                                               
patrons, including  a taxi  cab driver  and two  other customers.                                                               
The  AST trooper  alerted the  bartender that  the bar  was being                                                               
watched, that she would be held  liable and would be arrested for                                                               
anything that happened.  He pointed  out that this was "right out                                                               
of the blue."  He surmised the  AST trooper had no reason to come                                                               
in  since no  one  reported any  problem.   He  said,  "To me  it                                                               
underscores a, I  think, a kind of harassment element  that a lot                                                               
of us folks are having to deal with  today and I resent it."  I'm                                                               
not against  enforcement.  I  think a  lot of the  arguments that                                                               
have  been  put forward  here  by  some  of the  law  enforcement                                                               
community are specious at best if  the committee looks at the net                                                               
effect  of this  legislation."    He reiterated  that  he is  not                                                               
against  enforcement.   He  related  that  most of  the  industry                                                               
members he  knows are  active in their  communities.   He offered                                                               
that he served 12 years  on the Kenai-Peninsula Borough Assembly.                                                               
He  remarked  that he  even  "floated  a ballot  proposition"  to                                                               
initiate  a  sheriff's department  about  five  years ago,  which                                                               
helps  confirm  that he  is  not  against  law enforcement.    He                                                               
concluded that  an unhealthy  symbiotic relationship  has emerged                                                               
between licensees and  the ABC Board.  He disagreed  that the ABC                                                               
Board is working well.   He briefly discussed changes in societal                                                               
attitudes towards alcohol,  and then expressed his  interest in a                                                               
fair hearing on the enforcement issues.                                                                                         
                                                                                                                                
4:53:49 PM                                                                                                                    
                                                                                                                                
CARMEN  LUNDE, Director,  Kodiak  Cabaret,  Hotel Restaurant  and                                                               
Retailers   Association   (Kodiak   CHARR),   stated   that   she                                                               
represented Kodiak  CHARR's 26  licensees.   She related  she has                                                               
served in the  hospitality industry for more than 40  years, as a                                                               
waitress, bartender,  management, and as  a bar owner.   She said                                                               
she  has  successfully worked  with  the  ABC Board,  the  police                                                               
department, and AST.  However, she  said that since the ABC Board                                                               
has  moved to  DPS,  "we  don't feel  we've  had that  successful                                                               
working  relationship."   She  recalled the  history  of the  ABC                                                               
Board  when  it was  under  the  DOR  and  said she  believes  it                                                               
operates  better  under  an  agency whose  primary  goal  is  not                                                               
enforcement, but whose  goal is to help reduce  problems, such as                                                               
the drunk driving, underage drinking,  and other issues that need                                                               
to be solved.  She said she  thought that moving the ABC Board to                                                               
DCCED  would  create  a  better atmosphere  "all  around."    The                                                               
majority  of the  ABC  Board's work  is  administrative, such  as                                                               
processing  license  renewals  and fielding  questions  on  state                                                               
regulations and  laws.  The  police could  still be called  on to                                                               
enforce compliance checks  in licensed premises.   She also said,                                                               
"We  are   hard-working  taxpaying  businessmen  and   women  not                                                               
criminals and feel the ABC  Board belongs under the Department of                                                               
Commerce, Community,  and Economic  Development."  She  related a                                                               
scenario  highlighting  a  "sting" operation  in  Kodiak,  during                                                               
which  an   employee  was  cited,   after  checking   a  patron's                                                               
identification  twice,  although  the  employee  "still  read  it                                                               
wrong."   She clarified did  not wish to  make an excuse  for the                                                               
bartender.   However, the  officer who  cited the  bartender came                                                               
into  the bar  and said,  "We are  going to  slam this  place and                                                               
we're going to  hang you out to dry."   She expressed her outrage                                                               
at this  incident and  further stated  that it  is not  the first                                                               
time this type of activity has happened in Kodiak.                                                                              
                                                                                                                                
4:56:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHNSON   recalled   previous   testimony   that                                                               
suggested this proposal  was being brought up by  small number of                                                               
owners who  are trying to "skirt"  the system.  He  asked whether                                                               
she  thought this  proposal was  being brought  forth by  a small                                                               
number of  owners or if it  is being forwarded by  a "small group                                                               
of miscreants."                                                                                                                 
                                                                                                                                
MS. LUNDE answered  that she believed the  impetus was universal.                                                               
She  said that  almost everyone  she has  discussed this  with is                                                               
unhappy about the situation.  She  said, "In Kodiak, for these 26                                                               
licenses - I do know that they are all in agreement."                                                                           
                                                                                                                                
[HB 125 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB126 Sponsor Statement.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-ABC Audit Summary 2009.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-ABC Sunset Review.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Barbers and Hairdressers Audit Summary.pdf HL&C 2/9/2011 3:15:00 PM
HB 126
HB126 Supporting Documents-Barbers and Hairdressers Sunset Review.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 verA.PDF HL&C 2/9/2011 3:15:00 PM
HB 126
HB126 Supporting Documents-Dental Examiners Audit Summary.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Dental Examiners Sunset Review.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Nursing Audit Summary.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Nursing Sunset Review.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Fiscal Note-CCED-CBPL-02-03-11(A).pdf HL&C 2/9/2011 3:15:00 PM
HB 126
HB126 Fiscal Note-CCED-CBPL-02-03-11(B).pdf HL&C 2/9/2011 3:15:00 PM
HB 126
HB126 Fiscal Note-CCED-CBPL-02-03-11(C).pdf HL&C 2/9/2011 3:15:00 PM
HB 126
HB126 Fiscal Note-CCED-RCA-02-04-11.pdf HL&C 2/9/2011 3:15:00 PM
HB 126
HB126 Supporting Documents-LB&A Subcommittee Recommendation ABC Board.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-RCA Audit Summary.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-RCA Sunset Review.pdf HL&C 2/9/2011 3:15:00 PM
SFIN 4/15/2011 9:00:00 AM
HB 126
HB125 ver A.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Sponsor Statement.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Draft Proposed Amendment ver M.2.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Supporting Documents-ABC Sunset Review.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Supporting Documents-Email Neil Darish 2-4-2011.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Opposing Documents-Letter ABC Director Gifford 2-4-11.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Supporting Documents-LB&A Subcom Rcmndtn ABC Board.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Supporting Documents-Related Statutes.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Fiscal Note-CCED-CBPL-2-8-11.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Fiscal Note-DPS-ABC-2-8-11.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB125 Opposing Documents-Email AACOP 2-8-2011.pdf HL&C 2/9/2011 3:15:00 PM
HB 125
HB126 Fiscal Note-DPS-ABCB-02-07-11.pdf HL&C 2/9/2011 3:15:00 PM
HB 126