Legislature(1995 - 1996)
04/11/1995 10:05 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 87
"An Act relating to community local options for control
of alcoholic beverages; relating to the control of
alcoholic beverages; relating to the definition of
'alcoholic beverage'; relating to purchase and sale of
alcoholic beverages; relating to alcohol server
education courses; and providing for an effective
date."
Senator Donley spoke to Amendment K.7. He stated that it
deals with making it a violation to frequent an illegal
gambling establishment. He said that it is difficult for
the owners of the legal establishments because they are
frequently accused of the improper activity that goes on at
the illegal establishments where they are serving alcohol.
After bar hours, people will continue to find a place to
drink. When they find an establishment that is not legal,
they are not subject to the same kinds of controls as the
legal establishments exhibit. This is a tool to help the
law enforcement keep people out of these places, by way of
issuing a citation, which is a violation to frequent the
illegal establishments. The bill did pass the House in the
1988 session, but did not make it through the Senate.
Senator Donley MOVED Amendment #2 and it was ADOPTED.
Senator Donley stated that he has been in conversation with
the Department of Law, the Department of Revenue, and Mr.
Sharrock, who is available in Anchorage for teleconference,
regarding Amendment #1. In response to the questions brought
up at the last committee meeting, Senator Donley pointed out
the packet sent by Teresa Williams, Assistant Attorney
General in Anchorage, who is handling the illegal gambling
cases that involve licensed premises. The information
provides a list of 5 cases which have occurred since July of
1990 regarding liquor licensees who were convicted of
criminal violations of the gambling laws. The Division of
Gaming does not enforce illegal gambling activities, because
their charge is to regulate legal gambling activities.
Illegal gambling activities are regulated by the troopers or
Department of Law. The activity in the 5 cases consisted of
slot machines, which is clearly prohibited by statute.
These were the particular sanctions they were given by the
ABC Board. The ABC Board is free to sanction them from zero
to full revocation of their licenses. There are provisions
of violations of Title 4, which are more restrictive than
that, but these are criminal law violations and they have a
general provision in the code that allows them to pursue
sanctions which are in the public interest that do not have
specific guidelines. He modified Amendment #1, to change 3
months to 6 months for suspension of license. On a
subsequent offense, there would be a revocation of the
license." He stressed that this is not for violation of our
legalized gaming statutes, but only for criminal gambling.
He indicated that he wanted to add a new subparagraph C that
would read, "if the Board receives notice from the
Department of Revenue, that a licensee or permittee has
violated a provision of AS 05.15,(the charitable gaming
provisions relating to gaming), the Board may suspend a
license or permit, and shall suspend for at least 30 days,
if the offense is the person's second violation.
Senator Donley introduced Amendment #3. This would
restructure the ABC Board. Currently there is a mandated
requirement of two members of the Board to be involved in
industry. The amendment would make it clear that three
members of the Board should represent the general public.
Currently, two members have to be from industry, but there
is no limit. The amendment adds an ethics provision stating
that of those two persons who represent the general public,
immediate family members could not be directly involved in
the industry. The provision would also state that to make a
quorum, at least two of the members would have to be from
the general public. Currently, the quorum can be made up of
two members from the industry and one member from the
general public. Senator Donley MOVED Amendment #3. Senator
Frank inquired as to the language regarding "immediate
family".
Senator Sharp indicated his concerns regarding Section 1, in
that it does not restrict the number of people involved in
counseling on the Board. It could be all three. He stated
he did not mind that exclusion, as long as there is a limit
as to those represented from industry, he would want a limit
on other interests groups.
Senator Sharp MOVED a Conceptual Amendment to Amendment #3.
Beginning on page 1, line 19, after the words "alcohol
beverage industry.", eliminate the period and state, "not
more than two members shall represent counseling or related
services". No objection having been raised, it was ADOPTED.
Senator Rieger inquired as to the clause on line 16 which
reads, "engaged in any aspect of". Senator Donley stated
that it would be anyone having a financial interest in the
industry, either ownership or employed by the industry. Co-
chair Frank asked if there are alcohol counselors on the
Board? Senator Donley stated that in the past there was a
counselor. Senator Phillips MOVED a Friendly Amendment. On
page 1, line 16, delete the word "aspect", and after the
word "any" add "financial interest in". No objection having
been raised, it was ADOPTED.
Co-chair Halford asked for a show of hands in moving
Amendment #3. By a show of hands Amendment #3 was ADOPTED.
Senator Donley introduced Amendment #4. He stated that it
is an empowerment of community councils to better protect
their own neighborhoods. This shifts the balance of power
toward the community councils, but with a check that if the
assembly thinks it is in the best interest of the community,
they can still do it. Senator Donley MOVED Amendment #4.
Senator Sharp OBJECTED based on the unanimous vote of the
assembly.
Co-chair Frank asked what is the circumstance regarding the
city boroughs, do they have absolute veto power, or is it a
recommendation to the ABC Board? Ms. Williams responded
that the Board may not overturn a protest by a local
governing body unless it finds it arbitrary, capricious, and
unreasonable. Co-chair Halford pointed out that this
amendment also provides for extra territorial jurisdiction
in areas of overlapping councils. There may be two or three
councils with authority over one location.
Senator Sharp asked if community councils are elected
through the regular election procedure of the unified city?
Senator Donley responded that they are elected to the
council. Senator Donley MOVED an Amendment to Amendment #4,
stating a requirement of two-thirds the vote rather than
unanimous. Without objection, the Amendment to the Amendment
the show of hands, the amended Amendment #4 FAILED.
Senator Sharp MOVED Amendment #5. No objections being
heard, Amendment #5 was ADOPTED. Senator Donley MOVED
Amendment #1. He explained that this amendment would set
guidelines for appropriate penalties for convictions of
illegal gambling activity, and separate standards for
violations for charitable gaming laws by liquor licensees.
This would also establish for a criminal violation by a
licensee, that the Board would suspend for a period of at
least 6 months. A second criminal offense would call for
permanent revocation. A violation of the charitable gaming
laws would mean a discretionary penalty. A second violation
for the gaming statutes, it would mean at least a 30-day
suspension. There is also a provision that the Division of
Gaming would notify the Alcohol Control Beverage Board when
there has been a violation. Co-chair Halford stated that
this amendment requires a conviction in criminal court
subject to the protection of the due process. Without
objection Amendment #1 was ADOPTED.
Senator Sharp MOVED CSSB 87 (FIN) with individual
recommendations and a zero fiscal note from the Department
of Revenue. Without objection CSSB 87 (FIN) was REPORTED
OUT of committee with a "do pass" recommendation from Co-
chairs Halford and Frank and Senators Phillips and Sharp.
Senators Rieger and Donley signed "no recommendations".
Further discussion on SB 87 is at the end of the text.
Co-chair Halford returned to SB 87. Senator Phillips MOVED
to delete Section 30. By a show of hands, Section 30 was
DELETED from the CS 37 (JUD). Senator Donley brought to the
attention of the committee Section 49. He said that
Subsection C (2) the question of whether local communities
can put a sales tax on alcohol unless there is another sales
tax in that area. Conversation on clarity with regard to
taxation transpired. Senator Donley MOVED to delete after
the word "sales" on line 29, "if sales taxes are imposed on
other sales within the municipality". By a show of hands
the Amendment FAILED. Senator Phillips MOVED CSSB 87(JUD)
with individual recommendations. No objection being heard,
CSSB 87 (JUD) was REPORTED OUT of committee.
At approximately 11:00 a.m. the meeting RECESSED.
| Document Name | Date/Time | Subjects |
|---|