Legislature(2007 - 2008)HOUSE FINANCE 519

04/30/2007 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 164 OCEAN RANGERS & REPORTING VESSEL LOCATION TELECONFERENCED
Moved CSHB 164(FIN) Out of Committee
<Teleconference Listen Only>
+ HB 14 RESTRICT ACCESS TO ALCOHOL TELECONFERENCED
Moved CSHB 14(JUD) Out of Committee
Bills Previously Heard/Scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 30, 2007                                                                                           
                         9:07 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 9:07:47 AM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Kyle   Johansen;   Heather   Beaty,   Staff,                                                                   
Representative    Harry   Crawford;    Representative    Anna                                                                   
Fairclough; Representative Andrea Doll                                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Lynn  Kent,  Director,  Division   of  Water,  Department  of                                                                   
Environmental   Conservation;   O.C.   Madden,   Brown   Jug,                                                                   
Incorporated; Bernadette Bradley,  President, Alaska Cabaret,                                                                   
Hotel,   Restaurant   &   Retailers    Association   (CHARR),                                                                   
Anchorage;  Kerry  Hennings,   Division  of  Motor  Vehicles,                                                                   
Department of  Administration; Doug Wooliver,  Administrative                                                                   
Attorney, Alaska Court System                                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 164    "An  Act relating to  reporting of vessel  location                                                                   
          by certain  commercial passenger  vessels operating                                                                   
          in  the marine waters  of the  state, to  access to                                                                   
          vessels by  licensed marine engineers  for purposes                                                                   
          of  monitoring compliance  with  state and  federal                                                                   
          requirements,  and  to  the  obligations  of  those                                                                   
          engineers  while aboard the vessels;  and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
          CSHB 164  (FIN) was REPORTED out of  Committee with                                                                   
          a "no  recommendation" and  with a new  fiscal note                                                                   
          by the  Department of Law  and a new  revised House                                                                   
          Finance   fiscal  note   for   the  Department   of                                                                   
          Environmental Conservation.                                                                                           
                                                                                                                                
HB 14     "An Act relating to the purchase of alcoholic                                                                         
          beverages  and  to  access  to  licensed  premises;                                                                   
          relating  to civil  liability  for certain  persons                                                                   
          accessing  licensed  premises;  requiring  driver's                                                                   
          licenses and  identification cards to  be marked if                                                                   
          a  person is  restricted  from consuming  alcoholic                                                                   
          beverages as a result  of a conviction or condition                                                                   
          of  probation or  parole and  relating to  fees for                                                                   
          the  marked license;  and  requiring the  surrender                                                                   
          and   cancellation  of   driver's  licenses   under                                                                   
          certain circumstances."                                                                                               
                                                                                                                                
          CSHB 14 (JUD) was REPORTED  out of Committee with a                                                                   
          "do pass" recommendation  and with zero fiscal note                                                                   
          #1 by  the Department of Law,  indeterminate fiscal                                                                   
          note  #2 by the  Department of Administration,  new                                                                   
          zero fiscal note by  the Court System, and new zero                                                                   
          fiscal note by the Department of Corrections.                                                                         
                                                                                                                                
9:08:00 AM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 164                                                                                                            
                                                                                                                                
     "An  Act relating  to reporting  of  vessel location  by                                                                   
     certain  commercial passenger  vessels operating  in the                                                                   
     marine  waters of  the state,  to access  to vessels  by                                                                   
     licensed  marine engineers  for  purposes of  monitoring                                                                   
     compliance with  state and federal requirements,  and to                                                                   
     the  obligations  of those  engineers  while aboard  the                                                                   
     vessels; and providing for an effective date."                                                                             
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #1:                                                                                
                                                                                                                                
     Page 1, lines 2 - 5:                                                                                                       
     Delete  ",   to  access  to  vessels  by   a  wastewater                                                                 
     treatment   operator   for    purposes   of   monitoring                                                                   
     compliance with  state and federal requirements,  to the                                                                   
     obligations of  that operator while aboard  the vessels,                                                                   
     and to  the qualifications  of the wastewater  treatment                                                                   
     operator"                                                                                                                  
                                                                                                                                
     Page 2, lines 2 - 25:                                                                                                      
     Delete all material.                                                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, line 28:                                                                                                           
     Delete "Sections 1 and 2 of this Act are"                                                                                  
     Insert "Section 1 of this Act is"                                                                                          
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Gara explained  that the  amendment tries  to                                                                   
reinstate  the   Ocean  Ranger  program  the   way  that  the                                                                   
initiative intended.   It deletes Section 2,  which gives the                                                                   
Commissioner  of DEC the  discretion to  decide when  to have                                                                   
Ocean Rangers on board.  He stated  his desire to satisfy the                                                                   
intention of  the original initiative.   He opposed  the fact                                                                   
that  Section  2 takes  away  protective functions  of  Ocean                                                                   
Rangers.  He compared  the tasks of the Ocean  Rangers in the                                                                   
initiative to those of the marine engineers in the bill.                                                                        
                                                                                                                                
REPRESENTATIVE KYLE  JOHANSEN, sponsor, stated  opposition to                                                                   
the amendment.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Crawford                                                                                                        
OPPOSED:  Hawker,  Joule,  Kelly,  Nelson,  Stoltze,  Thomas,                                                                   
Foster, Chenault, Meyer                                                                                                         
                                                                                                                                
The motion failed (2-9).                                                                                                        
                                                                                                                                
9:12:51 AM                                                                                                                    
                                                                                                                                
Representative Gara WITHDREW Amendment #2.                                                                                      
                                                                                                                                
Vice  Chair   Stoltze  asked   if  there  was   any  previous                                                                   
discussion  by  the Department  of  Commerce,  Community  and                                                                   
Economic  Development  regarding  marine  pilots  and  safety                                                                   
issues during  transport.  Representative  Johansen responded                                                                   
that a letter  from the Southeast Alaska  Pilots' Association                                                                   
addresses  this   issue  (copy  on  file.)     Representative                                                                   
Johansen  thought the  discussion about  marine pilot  safety                                                                   
could take place on the House Floor.                                                                                            
                                                                                                                                
9:14:55 AM                                                                                                                    
                                                                                                                                
Representative  Gara spoke to  the substitution of  class III                                                                   
wastewater treatment operators  for Ocean Rangers.  He voiced                                                                   
concern  about  not  having adequate  numbers  to  cover  the                                                                   
ships, nor adequate training in  marine sewage treatment.  He                                                                   
said  he  is  not  satisfied   that  the  bill  fulfills  the                                                                   
initiative in this matter.                                                                                                      
                                                                                                                                
Representative Kelly  asked if DEC supports  using wastewater                                                                   
treatment  workers.   Representative Johansen  said he  could                                                                   
not answer that.  He thought they could do the job.                                                                             
                                                                                                                                
LYNN  KENT,  DIRECTOR,  DIVISION   OF  WATER,  DEPARTMENT  OF                                                                   
ENVIRONMENTAL    CONSERVATION,   explained   the    education                                                                   
requirements  of a level  III wastewater treatment  operator.                                                                   
She  thought  there  would  be  difficulty  finding  adequate                                                                   
numbers of operators for the first  year or two.  In response                                                                   
to a  question from Representative  Kelly, Ms. Kent  spoke in                                                                   
favor of the change to use wastewater treatment operators.                                                                      
                                                                                                                                
9:18:36 AM                                                                                                                    
                                                                                                                                
Representative  Thomas asked  about the  number of  qualified                                                                   
marine engineers available today.   Ms. Kent replied that the                                                                   
training  needs are  different,  but either  job class  would                                                                   
work.   It would be  difficult to find  the number  of marine                                                                   
engineers  needed  the  first year.    Representative  Thomas                                                                   
asked  what happens  if  enough  can't be  found.   Ms.  Kent                                                                   
replied that as many as possible will be hired.                                                                                 
                                                                                                                                
Representative Gara asked for  DEC's position on if the Ocean                                                                   
Rangers should be required to  be on board the ships whenever                                                                   
they are at sea.  Ms. Kent reported  that DEC has not taken a                                                                   
stand  on the  level of  coverage  and would  respond to  the                                                                   
legislature's will.                                                                                                             
                                                                                                                                
9:20:54 AM                                                                                                                    
                                                                                                                                
Representative Johansen reported  that DEC testified that the                                                                   
current DEC  program - pre-initiative  - is working,  and the                                                                   
Ocean  Ranger  program  is  an additional  layer  on  top  of                                                                   
something that already works.                                                                                                   
                                                                                                                                
Co-Chair  Meyer  addressed  the   new  fiscal  note  by  DEC.                                                                   
Previous testimony  stated that Ocean Rangers do  not have to                                                                   
be  state  employees.     He  wanted  to  change   the  three                                                                   
supervisory  positions to  one full-time  position, and  make                                                                   
the  Ocean  Ranger  positions  contractual.    Representative                                                                   
Johansen   concurred  with  contracting   the  Ocean   Ranger                                                                   
positions out  and reducing  the three supervisory  positions                                                                   
to one.   Co-Chair Meyer  maintained that this  would provide                                                                   
for more flexibility for DEC.                                                                                                   
                                                                                                                                
9:24:03 AM                                                                                                                    
                                                                                                                                
Representative  Kelly  asked  if the  word  "random"  permits                                                                   
"continuous",  as it applies  to DEC  control over  the Ocean                                                                   
Ranger.   Representative Johansen  thought the intent  was to                                                                   
allow the  Commissioner total  discretion as to  the duration                                                                   
of the supervision by Ocean Rangers.                                                                                            
                                                                                                                                
Representative Gara  referred to the two duties  of the Ocean                                                                   
Rangers that  are removed  in this version  of the bill.   He                                                                   
requested that  the sponsor of  the initiative  address these                                                                   
issues.                                                                                                                         
                                                                                                                                
Representative  Johansen addressed  the  health issue.     He                                                                   
reported  that the USDA  has regulations  in place  regarding                                                                   
health standards.   In previous committee  hearings questions                                                                   
were asked regarding  liability issues.   Representative Gara                                                                   
argued that  protection from water  discharge is  not covered                                                                   
under USDA.   Representative Johansen replied  that the Ocean                                                                   
Ranger's job is  to be sure that water quality  meets Alaskan                                                                   
standards.                                                                                                                      
                                                                                                                                
9:28:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer addressed zero fiscal note #2.                                                                                   
                                                                                                                                
Representative  Kelly  thought the  cost  of the  supervisory                                                                   
position was excessive, but stated support for the bill.                                                                        
                                                                                                                                
Representative  Gara voiced  concern about  the way  the bill                                                                   
has turned out.   He suggested taking a look  after two years                                                                   
to see how  it goes.  He  thought the initiative  would raise                                                                   
about $50 million for the state.                                                                                                
                                                                                                                                
Representative Kelly thought the  Committee had a common goal                                                                   
- to  implement the  initiative responsibly.   He thought  it                                                                   
was important to give the Commissioner  of DEC the discretion                                                                   
to decide  the amount of coverage  by the Ocean Rangers.   He                                                                   
noted the improved record of the cruise ship industry.                                                                          
                                                                                                                                
9:32:47 AM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT CSHB 164  (FIN) out of                                                                   
committee  with individual recommendations  and the  attached                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
CSHB  164 (FIN)  was REPORTED  out  of Committee  with a  "no                                                                   
recommendation" and with a new  fiscal note by the Department                                                                   
of Law and  a new House  Finance revised fiscal note  for the                                                                   
Department of Environmental Conservation.                                                                                       
                                                                                                                                
9:33:14 AM                                                                                                                    
                                                                                                                                
At-ease.                                                                                                                        
                                                                                                                                
9:34:50 AM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 14                                                                                                             
                                                                                                                                
     "An Act relating to the purchase  of alcoholic beverages                                                                   
     and to  access to licensed  premises; relating  to civil                                                                   
     liability   for  certain   persons  accessing   licensed                                                                   
     premises;     requiring     driver's    licenses     and                                                                   
     identification  cards  to  be  marked  if  a  person  is                                                                   
     restricted  from  consuming  alcoholic  beverages  as  a                                                                   
     result  of a  conviction  or condition  of probation  or                                                                   
     parole and relating to fees  for the marked license; and                                                                   
     requiring the surrender and cancellation of driver's                                                                       
     licenses under certain circumstances."                                                                                     
                                                                                                                                
REPRESENTATIVE  HARRY CRAWFORD,  sponsor,  reported that  the                                                                   
bill was the  same as HB 190  from previous years.   The bill                                                                   
deals  with  the  prevention of  drunk  driving  rather  than                                                                   
punishment.                                                                                                                     
                                                                                                                                
9:38:23 AM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze assumed the gavel.                                                                                           
                                                                                                                                
O.C. MADDEN,  BROWN JUG,  INCORPORATED, testified  in support                                                                   
of HB  14.  He assured  the Committee that  continued efforts                                                                   
would be made  to encourage responsible drinking  and prevent                                                                   
the sale of alcohol to people who are repeat offenders.                                                                         
                                                                                                                                
Representative  Foster asked how  an ID  would be checked  if                                                                   
liquor is ordered from a village.   Mr. Madden explained that                                                                   
those ID's  have to be mailed  in previous to  the processing                                                                   
of a liquor order.                                                                                                              
                                                                                                                                
9:41:09 AM                                                                                                                    
                                                                                                                                
BERNADETTE   BRADLEY,  PRESIDENT,   ALASKA  CABARET,   HOTEL,                                                                   
RESTARURANT  &  RETAILERS  ASSOCIATION   (CHARR),  ANCHORAGE,                                                                   
testified in support of HB 14.   The industry has been trying                                                                   
to find  a way  to identify  repeat offenders.   She  related                                                                   
liability problems from not having such a law.                                                                                  
                                                                                                                                
Representative  Foster asked  if licenses  are good  for five                                                                   
years.   He  suggested  that an  old  license  could be  used                                                                   
instead of the newly-issued marked driver's license.                                                                            
                                                                                                                                
KERRY  HENNINGS, DIVISION  OF MOTOR  VEHICLES, DEPARTMENT  OF                                                                   
ADMINISTRATION  reported  that  licenses  are good  for  five                                                                   
years; however,  someone needing a provisional  license would                                                                   
have their old license cancelled.                                                                                               
                                                                                                                                
Representative  Gara recalled  a provision  in the bill  that                                                                   
states once a person is convicted  and requires a provisional                                                                   
license,  the   court  takes   away  the  original   license.                                                                   
Representative Crawford said that is still in the bill.                                                                         
                                                                                                                                
9:46:36 AM                                                                                                                    
                                                                                                                                
HEATHER   BEATY,   STAFF,  REPRESENTATIVE   HARRY   CRAWFORD,                                                                   
addressed Ms.  Henning's point regarding that  the license is                                                                   
cancelled  until the offender  is done  with the court  order                                                                   
not to drink  and goes back to  DMV to reactivate his  or her                                                                   
license.   The burden  to "uncancel"  the license  is on  the                                                                   
offender.                                                                                                                       
                                                                                                                                
Representative  Crawford reported that  the cost of  a marked                                                                   
license is $50.                                                                                                                 
                                                                                                                                
Representative  Thomas asked  if  there is  a  penalty for  a                                                                   
person who serves  someone who is not supposed to  drink.  He                                                                   
termed  it "contributing  to  the  delinquency  of a  felon."                                                                   
Representative Crawford reported  that the bill is not set up                                                                   
to address  that situation.    In response  to a question  by                                                                   
Representative Thomas,  Representative Crawford  replied that                                                                   
it  is not  mandatory  for the  premise  to  comply with  the                                                                   
conditions of  the bill, but rather  voluntary.  The  bill is                                                                   
an attempt  to help the industry  police itself.  It  has the                                                                   
cooperation of the industry.                                                                                                    
                                                                                                                                
Vice Chair Stoltze reviewed the fiscal notes.                                                                                   
                                                                                                                                
9:51:26 AM                                                                                                                    
                                                                                                                                
DOUG WOOLIVER, ADMINISTRATIVE  ATTORNEY, ALASKA COURT SYSTEM,                                                                   
reported  that the  Court fiscal  note will  be a zero  note.                                                                   
The bill does not change what the court already does.                                                                           
                                                                                                                                
Representative  Gara asked  if the court  order prohibits  an                                                                   
offender from consuming or purchasing  alcohol.  Mr. Wooliver                                                                   
said it usually includes both.                                                                                                  
                                                                                                                                
9:52:42 AM                                                                                                                    
                                                                                                                                
Representative  Gara MOVED  to REPORT  CSHB 14  (JUD) out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB 14 (JUD) was REPORTED out  of Committee with a "do pass"                                                                   
recommendation   and  with  zero   fiscal  note  #1   by  the                                                                   
Department  of  Law,  indeterminate  fiscal note  #2  by  the                                                                   
Department  of Administration,  new zero  fiscal note  by the                                                                   
Court System, and  new zero fiscal note by  the Department of                                                                   
Corrections.                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 9:53 AM.                                                                                           

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