Legislature(2011 - 2012)HOUSE FINANCE 519
04/06/2011 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB206 | |
| HB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 125 | TELECONFERENCED | |
| *+ | HB 206 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 6, 2011
8:48 a.m.
8:48:16 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 8:48 a.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Mike Hawker (alternate)
Representative Reggie Joule
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Jennifer Senette, Staff, Representative Kurt Olson; Pat
Davidson, Legislative Auditor, Division of Legislative
Audit; Representative Mike Hawker, Chairman, Legislative
Budget and Audit Committee; Jeff Jessee, Alaska Mental
Health Trust Authority, Department of Health and Social
Services, Juneau; Shirley Gifford, Director, Alaska
Beverage Control Board, Department of Public Safety,
Juneau; Kate Burkhart, Advisory Board on Alcoholism and
Drug Abuse, Department of Health and Social Services,
Juneau
PRESENT VIA TELECONFERENCE
Belen Cook, Board Member, Alaska Beverage Control Board,
Department of Health and Social Services, Cordova; Dale
Fox, President and CEO, CHARR, Anchorage; Bob Winn, Blues
Central/Chef's Inn, Anchorage; Chief Thomas Clemens,
President, Alaska Association of Chief of Police; Jan
Wrentmore, Owner, Red Onion Saloon, Skagway; Bob Winn,
Blues Central/Chef's Inn, Anchorage; Dale Fox, CHARR,
Anchorage
SUMMARY
HB 206 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD
HB 206 was HEARD and HELD in committee for
further consideration.
HB 125 ALCOHOLIC BEVERAGE CONTROL BOARD
HB 125 was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 206
"An Act relating to the Alcoholic Beverage Control
Board; and providing for an effective date."
8:49:47 AM
JENNIFER SENETTE, STAFF, REPRESENTATIVE KURT OLSON,
explained that the legislation would extend the termination
date if the Alcohol Beverage Control Board (ABC) to June
30, 2015; this was a four-year extension and reflected the
recommendation of the 2009 audit report. The audit
recommended that the legislature extend the ABC Board's
termination date until June 30, 2014, but legislation had
been passed during the 2010 session that extended the date
an additional year. The extension had been honored during
the crafting of HB 206, resulting in a termination date of
June 30, 2015.
Co-Chair Stoltze requested further clarification from the
Division of Legislative Budget and Audit (LB&A) concerning
the audit.
PAT DAVIDSON, LEGISLATIVE AUDITOR, DIVISION OF LEGISLATIVE
AUDIT, reiterated that in 2009 LB&A had conducted full
sunset review of the board and had recommended a four-year
extension. In 2010 the legislature passed a bill to extend
the ABC Board by one year. As a result, a current status
check of the recommendations that had been made in the
prior audit was conducted. The division had focused on two
recommendations; the first was to determine that the ABC
Board had established quantifiable and objective
enforcement goals, and to develop a clear plan in which
enforcement resources could be directed in order to
maximize efficiency and effectiveness. The division found
that the recommendation had been partially resolved. While
enforcement staff had been successful in meeting some of
the regional inspection goals, reducing the number of
duplicate inspections had been less successful, as had been
the results concerning compliance check activity. The
second recommendation dealt with administrative activities.
Several outstanding issues had been substantially resolved.
One related to reconciliation between the ABC data base
with regard to licensing activity and the states accounting
records. Accurate distribution of licensing fees back to
municipalities was dependent on the ABC being reconciled to
the state accounting system.
8:53:37 AM
Representative Gara wondered whether the duplication of
serviced had resulted in wasted funds. Ms. Davidson replied
that there had been no duplication of services.
Vice-chair Fairclough asked how long ago the outstanding
recommendations had been recommended to the board. Ms.
Davidson responded that the enforcement goals
recommendation had first appeared in the 2006 sunset audit.
A series of administrative recommendations had been issued
for the past few years, some in 2006 and more in 2010.
Vice-chair Fairclough wondered whether the division had
reviewed the attendance and longevity of board members. Ms.
Davidson stated that the longevity of members had not been
examined. Quorum maintenance and meeting attendance had not
been issues for the division.
Vice-chair Fairclough asked if there had been enough
longevity on the board to recognize that since 2006 the
same recommendations were coming back before the group. Ms.
Davidson answered that she did not know. She stated that
any noted progress had occurred under the new executive
director of the board. She stated that the changeover of
the new executive director was noteworthy in the 2010 audit
as an observance of corrective actions by the board having
taken place.
Representative Wilson expressed concern that the board had
not taken proper minutes or given proper prior public
notice of meetings. Ms. Davidson relayed that when the
board examined the activities over the last year, the only
two issues remaining with regard to board meetings was that
the agendas had not listed the timing of public comment,
and that the board had failed to document when it was going
into executive session. Continuing problems with public
notice had not been discovered.
Representative Wilson asked if the public comment and
executive session issues had been alleviated. Ms. Davidson
replied that the issues had been resolved.
8:58:24 AM
Co-Chair Stoltze OPENED public testimony.
8:58:55 AM
BELEN COOK, BOARD MEMBER, ALASKA BEVERAGE CONTROL BOARD,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, CORDOVA (via
teleconference), testified in support of HB 206.
Vice-chair Fairclough understood that there were members of
the board that were coming up for reappointment or were
facing an expiration of term. She asked if there were
people on the board that had been members for multiple
years, and if so, why had the audit recommendations taken
so long to be resolved.
Ms. Cook replied that the last two appointees were Bob
Kline, ABC Board Chairman who represented industry and had
been on the board off and on for the last 12 years. She
added that he was a good and fair chairman. Joe Delphino
had been on the board prior to Ms. Cook's appointment and
was expected to seek reappointment, however, personal
reasons had prevented him from remaining on the board. A
Wasilla resident now filled the chair. Ellen Ganley was the
vice-chair representing a public seat, and had been on the
board off and on for 10 years. She did not know why some
members had not stayed on the board longer. She shared that
the problems highlighted by the audit had been sufficiently
handled by the director.
9:04:01 AM
DALE FOX, PRESIDENT AND CEO, CHARR, ANCHORAGE (via
teleconference) spoke in support of HB 206. He testified
that the ABC was an important organization that provided a
level playing field for licensees. The industry had seen
major improvements under the direction of the new executive
director, Shirley Gifford.
BOB WINN, BLUES CENTRAL/CHEF'S INN, ANCHORAGE (via
teleconference) voiced support of HB 206.
HB 206 was HEARD and HELD in committee for further
consideration.
9:06:39 AM
AT EASE
9:07:06 AM
RECONVENED
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."
9:07:24 AM
Representative Wilson MOVED to ADPOPT CSHB 125(L&C) 27-
LS)378\B. There being no OBJECTION it was so ordered.
REPRESENTATIVE MIKE HAWKER, CHAIRMAN, LEGISLATIVE BUDGET
AND AUDIT COMMITTEE, relayed that HB 125 had been
introduced as a result of issues identified in the audit
performed one year earlier. At that time, the legislative
Budget and Audit Committee had held hearings on the issue
related to the appropriate domicile for the board. The bill
moved the administrative domicile of the board from the
Department of Public Safety (DPS) to the Department of
Commerce, Community, and Economic Development (DCCED). In
past years the board had been under the Department of
Revenue (DOR). He believed that any operating agency had
the tendency to assume the culture and the characteristics
of its umbrella agency. Under DOR the agency had focused on
revenue collection and the administration of taxes, and not
on its role of policing alcohol. Under DPS the agency had
presumed the dominant characteristics of a police agency
and had lost sight of its broader mission. He stated that
the industry would testify that the domicile of the ABC
Board in DPS had inadvertently created an adversarial
relationship between the board and the industry. He pointed
out that Department of Health and Social Services (DHSS)
supported the agency falling under DPS out of the concern
for alcohol abuse, bootlegging, and the illegal importation
of alcohol across the state. He queried whether the board
should be a commercial regulatory agency in DCCED along
with all other businesses and professions in the state, or
a police agency under DPS.
9:13:55 AM
Representative Hawker referred to a one-page summary of the
work performed over the summer of 2010 by the Legislative
Budget and Audit Subcommittee (copy on file.) He believed
that the decision offered in the summary was the best
choice possible. The subcommittee believed that the agency,
along with all other commercial regulatory boards in the
state, should be relocated under the purview of DCCED. The
subcommittee had concluded that the move would strengthen
the enforcement abilities of the board, which would
continue to work closely with DPS to pursue criminal
violations. He thought that the development and
implementation of an overall plan of enforcement activities
to ensure the effective allocation of resources would be
better accomplished if the agency viewed itself with a
broader responsibility than being an ongoing police agency.
He concluded under DCCED the board would engender a
character and culture that was more respectful of
administrative responsibilities, as opposed to being
singularly focused on criminal investigation.
9:18:43 AM
Representative Doogan requested clarification on page 2,
line 18:
Unless authorized by a search warrant described in AS
12.35.010 - 12.35.120, nothing in this section
authorizes the use of metal keys, magnetic card keys,
or identification cards to access private clubs.
Representative Hawker explained the amendment to AS
04.06.110 had been added in the House Labor and Commerce
Committee and addressed the issue of investigation of
private clubs or "key clubs." The agency had required that
undercover investigators have key cards to enter the clubs.
The private clubs had felt that they were adequately
policed and should not be required to provide unrestricted
access, on demand, to DPS. He noted that this was a prime
example of the board behaving like a police agency. He
summarized "when you are a hammer, everything looks like a
nail." The provision was meant provide statutory protection
to the private clubs.
Representative Guttenberg pointed out that the core
services of the department were to: regulate alcohol,
license qualified persons, and enforce state law. He
wondered whether any of the core services of the agency
would change under DCCED.
9:24:03 AM
Representative Hawker responded that the agency had taken
on a character that was focusing exclusively on the role of
enforcement and not been adequately exercising its services
as a commercial regulatory authority. Fear of being fined
for a violation when seeking guidance in complying with
state statute had made members of industry fearful to ask
questions of the agency. He stated that the agency had been
specifically established to regulate and implement all of
the statutes that related to the regulation of business and
professions in the state, which made it a natural fit under
the umbrella of DCCED.
Vice-chair Fairclough OPENED public testimony.
CHIEF THOMAS CLEMENS, PRESIDENT, ALASKA ASSOCIATION OF
CHIEFS OF POLICE (via teleconference) testified that he had
been in law enforcement since 1972. He recalled that when
the board had been under DOR that law enforcement officials
could not determine what the agency did in respect to law
enforcement in alcoholic beverage control. He relayed that
alcohol management was an important issue to law
enforcement agencies in the state. He stressed that the
departments that dealt with alcohol abuse the most were DPS
and DHSS. He reported that 85 to 90 percent of law
enforcement agency work was alcohol driven. He thought that
it was in the best interest of the state to keep the agency
under DPS. He expressed concern that there would not be
adequate enforcement were the agency to move.
Representative Gara understood that DPS had been asked by
the governor to not testify on the bill.
Vice-chair Fairclough challenged the accuracy of
Representative Gara's information.
Representative Gara hoped that the information was
incorrect. He wondered whether the law enforcement function
of the agency would be compromised by moving the agency
from DPS to DCCED. Mr. Clemens replied that the
relationship between the agency and law enforcement would
be lost. The current relationship between law enforcement
and the agency was strong. He said that under DOR that
relationship had been less productive. He reiterated his
anxiety that the relationship would suffer under DCCED.
Representative Gara queried the communication difficulties
experienced by law enforcement when the agency had been
under a different department. Mr. Clemens replied that the
difficulty in communication was in the area of enforcement.
When the agency had been under DOR he had made numerous
attempts to discipline a particular bar that had been in
constant violation. He asserted that the agency ignored his
requests until finally people were injured and he took his
requests to another department. He said that the problem
had been minimized since the agency had been under DPS. He
expounded that the licensing and revenue generation aspect
of the agency could conceivably fall under DCCED, but more
important was the issue of alcohol management in Alaska's
communities.
9:33:25 AM
Representative Wilson wondered whether the communication
issues had lessened as a result of new board members.
Mr. Clemens replied that he did not know. He reminded the
committee that he worked with the ABC staff and not the
board. He stated that the current agency staff was working
closely with law enforcement in the interest of public
safety. He believed that public policy should move toward
preventing alcohol related incidences.
Representative Wilson spoke of constituency concerns
surrounding law enforcement and the agency overstepping
reasonable boundaries of in the name of public safety. Mr.
Clemens replied that he had not witnessed overstepping on
the part of the agency or law enforcement. He asserted that
the agency was doing a good job.
Representative Wilson expressed concern that businesses
that were in compliance were being unfairly scrutinized.
Mr. Clemens replied that 85 percent of bar owners in the
state were in compliance; the other 15 percent were the
focus of law enforcement and agency scrutiny.
Representative Doogan wondered which department Mr. Clemens
worked for. Mr. Clemens responded that he was the Chief of
Police for the Seward Police Department and the President
of the Alaska Association of Chiefs of Police.
Representative Doogan referred to language in the bill that
related to the requirement for search warrants to enter
private clubs. Mr. Clemens thought that the search warrants
were appropriate for private clubs. He likened the private
clubs to a private home.
9:37:31 AM
JAN WRENTMORE, OWNER, RED ONION SALOON, SKAGWAY (via
teleconference) testified that she had served briefly on
the ABC Board during the Knowles Administration. She
thought that while under DPS, the agency had failed to
regulate the licensing system in the state. She believed
that law enforcement was a large component in liquor
management in Alaska, but felt that the current board and
staff had neglected the licensing aspect of the agency. She
reported that licenses had been granted very liberally in
Skagway. She concluded that the ABC Board should be housed
within a department with a staff that was able to examine
the issues in order to develop good policy. She expressed
support for the legislation.
9:40:29 AM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST AUTHORITY, DEPARTMENT OF HEALTH AND SOCIAL SERVICES
encouraged the committee to base decisions moving forward
on data and not on anecdotal stories. He pointed to the
handout "Alaska Alcohol vs. Tobacco Sales to Minors,
SFY2006 - 2011" (copy on file). He explained that the chart
and graph reflected the percentage of illegal alcohol sales
to minors against the percentage of illegal tobacco sales.
Except for 2009, the percentage of illegal alcohol sales to
minors had been significantly higher than that of illegal
tobacco sales. In 2010 the rate of illegal alcohol sales
was twice that of tobacco.
Mr. Jesse argued that alcohol was a devastating drug,
particularly in the hands of minors. He thought that the
industry and ABC Board should maintain respectful
partnership in order to combat the issue of minor
consumption. He was impressed with the agency's new
executive director and her implementation of policy changes
that would lead to concrete data.
9:45:23 AM
Mr. Jesse stated that the concrete data would lay out a
matrix of the many ways a licensee could register concerns
about how they were treated by the board. He believed the
work currently being done by the agency's director would
improve the chances for: informal conversations with
supervisors, investigators and directors, the ability get
on the agenda and to present concerns publicly at board
meetings, and the power to meet with an ombudsman to file a
formal complaint. He believed that the agency would be
able to return to the legislature in 2012 with actual
numbers detailing how many licensees had taken advantage of
the opportunities to have their concerns addressed and the
end results. He addressed industry concern that retaliation
could occur if complaints were lodged. He said that it
could be expected that when a complaint was filed the board
would go back and examine the licensee's compliance
history.
Mr. Jesse furthered that it was not sufficient for a
licensee to simply allege that their concerns were not
being addressed. He said that the issue would exist
regardless of the department the agency fell under. He
referred to a recent poll that had been conducted in
Anchorage in which 67 percent of the public had purported
that license checks were necessary in the purchase of
alcohol. He asserted that the numbers indicate that the
public remained concerned with minors procuring alcohol.
Representative Joule wondered who was responsible for the
illegal sale at the point of purchase. Mr. Jesse replied
that in the case of tobacco sales the individual
salesperson would be given a ticket and the licensee would
have their license suspended for up to 20 days. In the case
of alcohol, the server of the alcohol was charged with a
misdemeanor. In addition, the ABC Board could take action
to suspend the liquor license. He contended that the higher
penalties for alcohol violations may not serve the state's
interest. He argued that the entire system as a whole
needed to be examined.
9:52:55 AM
SHIRLEY GIFFORD, DIRECTOR, ALASKA BEVERAGE CONTROL BOARD,
DEPARTMENT OF PUBLIC SAFETY, JUNEAU, added that if the
licensee was the person who served a minor there would be
additional ramifications through the board.
Representative Costello understood that on any board or
commission, the executive director carried out the will of
the membership of the board. She wondered whether the board
could focus on data and research regardless of where the
agency resided.
Mr. Jesse responded in the affirmative. He stated that the
board was the entity that set the direction and the policy
for staff.
Representative Gara referred to the handout related to
illegal sales. He requested clarification concerning the 15
percent violation rate in 2010. Mr. Jesse replied that the
15 percent was the violation rate based on compliance
checks. They did not know what the actual rate of illegal
sales to minors outside of the compliance check.
Vice-chair Fairclough asked if the number reflected the
compliance check numbers or the overall violations. She
pointed out that many times the licensee will self-report
different violations; for example, if there was an
altercation in the parking lot they could call the police
for safety and it would be counted as a violation. She
asserted that sometimes facility managers call upon the
police in for assistance with violations in progress. Mr.
Jesse believed the alcohol data on the handout was based on
compliance checks.
Representative Gara asked for clarification on the
definition of a compliance check. He felt that if the 2010
number meant that 15 percent of the sales made were made to
minors that the problem was much bigger than thought
before.
9:59:22 AM
Mr. Jessee replied that if no minors outside of the ABC
compliance checks tried to buy alcohol, the actual rate
would be zero. There could still be a 15 percent violation
rate on a compliance check. He believed that the actual
rate would be less than the compliance check rate.
Representative Guttenberg queried the reason for the
anomaly in the numbers for 2009. Mr. Jesse responded that
he did not know. He directed the question to DHSS.
Vice-chair Fairclough believed that the anomaly could have
been the result of different amounts of money for
compliance checks for alcohol and tobacco licensees being
invested at different periods of time.
BOB WINN, BLUES CENTRAL/CHEF'S INN, ANCHORAGE (via
teleconference) testified in support of HB 125. He
expressed that the board did an outstanding job with
enforcement. He declared that the executive director was an
ex-chief of police, the head of enforcement was an ex-chief
of police as well. The four enforcement officers of the
agency were past members of police departments or agencies.
He thought that the licensing function of the agency could
be further developed, as well as the commerce and business
aspect.
Mr. Winn furthered that it was important to teach minors
about healthy attitudes towards alcohol. He believed that
the numbers were skewed to make the issue one of
enforcement when only 7 percent of the instances of minor
consumption involved licensees. He supported Shirley
Gifford and her enforcement efforts but believed that there
were administrative portions could be improved under DCCED.
Vice-chair Fairclough touched on the allegation that police
may have overstepped their authority with owners and
operators of legal businesses.
He believed that in the past the agency had attempted to
make it as difficult as possible for bartenders to pass
tests, to the point of being underhanded. He said that
standards for sting operations had been set on a federal
level that had not been employed at the state level. Mr.
Winn stressed that Shirley Gifford had made significant
changes for the better. He reiterated that in the past
licensees had experienced difficulty with the enforcement
arm of the agency.
10:08:11 AM
Mr. Winn shared that during a past sting operation the
underage person had used military identification, which
listed four different dates on the back. The server misread
the birthdate and ended up being in violation. He felt that
the enforcement officers at the time treated the employee
as if her violation had been imminent.
Representative Gara suggested that rouge state employees
would exist perpetually in every department. He wondered
how moving the ABC board from one agency to another would
improve the sting operations.
Mr. Winn did not believe that there would be any impact. He
thought that the ABC Board was tasked with more than sting
operations; responsibilities he believed that had been
neglected. He expressed concern that the taxes on alcohol
in the state were significant and that the commerce arm of
the agency had been neglected.
KATE BURKHART, EXECUTIVE DIRECTOR, ADVISORY BOARD ON
ALCOHOLISM AND DRUG ABUSE, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, JUNEAU, read from a prepared statement (copy on
file):
First, the Board expressly states its appreciation for
the work of all the folks involved in this
conversation: the ABC Board members and staff, the
members of CHARR, the law enforcement community,
social services and community organizations, and the
legislative committees. It's not easy work. We want to
reiterate that this is not an issue of good guys and
bad guys. And it's not an issue of the merits or
demerits of alcohol.
Ms. Burkhart agreed with Representative Hawker that the
issue was about balancing the needs and concerns of all the
parties and stakeholders to the issue. However, the board
did not support moving the ABC Board from DPS. She read
from the prepared testimony:
The stated intent of HB 125, based on the
recommendation of the Legislative Budget and Audit
Subcommittee, is to create "greater sensitivity on
[the ABC Board's) part for the commercial benefits the
industry generates for the State."
The Advisory Board on Alcoholism and Drug Abuse has
had the chance to work together with the Cabaret,
Hotel, Restaurant and Retailer's Association over the
last two years. Not only have we furthered our shared
priority of preventing fetal alcohol spectrum disorder
through better public awareness efforts, the board has
had the opportunity to learn more about how the
industry and individual retailers promote responsible
-and lawful use of alcohol.
The retailers of alcoholic beverages in Alaska invest
time, energy, and money to ensure that only lawful
sales are made -whether to youth or to adults. Many
retailers have strong histories of responsible sales
practices and community efforts to promote responsible
consumption, and those efforts should not be
minimized.
Ms. Burkhart stressed that the purpose of her comments was
to promote responsible consumption and lawful alcohol
sales. She continued with her testimony:
The fact that we have a 15% non-compliance rate is
attributable not just to ABC Board efforts, but to the
conscientiousness of retailers and their employees -
and the training and supports provided by CHARR.
However, even with this improvement, the rate of
illegal sales of alcohol to minors remains nearly
twice the rate of illegal sales of tobacco to minors.
Even with the heightened compliance rate, Alaska youth
are reporting unacceptable levels of underage alcohol
use. In 2009, 57% of alternative high school students
and 33.2% of traditional high school students surveyed
in the Youth Risk Behavior Survey reported having used
alcohol in the past 30 days. That same year, 42.7% of
alternative high school students and 21.7% of
traditional high school students reported binge
drinking in the past 30 days. Folks should not assume
that youth get all their alcohol from retailers.
While that is a certainly a source of alcohol either
directly or through improper purchases for minors by
adults with less than great judgment (something
shoulder tap checks are meant to catch) -other means
of securing alcohol account for at least 1/3 of the
ways young people report getting their hands on
alcohol.
Because the major issue for ABADA is the consequences
of the proposed move and how it could affect the
overall issues of underage drinking and alcohol abuse
in Alaska -we looked at the reported youth alcohol use
in states where the ABC Board is in a law enforcement
agency like Public Safety and compared it to states
where the alcoholic beverage control entity was within
a non-law enforcement agency (such as Revenue or
Commerce). Here's what we learned:
Colorado, Georgia, Kansas, Mississippi, and Missouri
all have the ABC Board within a non-law enforcement
executive agency. In those states, the Youth Risk
Behavior Survey data for 2009 showed slightly higher
average rates for youth reporting ever having had an
alcoholic drink and reporting a drink before age 13.
More importantly, all those states had higher reported
rates of youth alcohol use than Alaska:
• 1.3-5.8% higher reports of ever having had
alcohol;
• 3.5-9.5% higher reports of having had alcohol
before age 13; and
• 1.1-7.6% higher reports of having had alcohol at
least once in the last month.
Three of these five states had rates of binge drinking
3-4% higher than Alaska's. (See Table 1)
Comparing the rate of alcohol related underage driving
fatalities in states with alcohol control within law
enforcement agencies to the rate in states where
alcohol control is not within law enforcement shows a
similar difference. From data reported by The Century
Council, a national nonprofit organization of
distillers formed "to fight against drunk driving and
underage drinking" and to promote "responsible
decision making regarding beverage control," we see a
significant difference between states.
10:16:55 AM
Ms. Burkhart continued to read from her testimony:
The national rate for underage driving fatalities in
2009 was 21100,000. Alaska's was 1.4/100,000, the
approximate mean of seven states reviewed where
alcohol control was within a law enforcement or public
safety agency. Looking at Colorado, Georgia, Kansas,
Mississippi, Missouri, Montana, South Carolina, South
Dakota, West Virginia, and Wyoming (all states where
the alcohol control agency is in an agency other than
law enforcement), the average rate was 3.61100,000 -
two and a half times the rate of states that treat
alcohol control as a public safety responsibility.
The Legislature can provide guidance and express
language about expectations to the ABC Board, in order
to balance the concerns and needs of all the parties
involved. You also have an existing mechanism for
investigating and resolving citizen complaints about
executive agencies: the Ombudsman.
10:19:46 AM
Ms. Burkhart concluded:
I used to be an assistant ombudsman with the Alaska
State Ombudsman, and I couldn't remember seeing a
complaint about the ABC Board come in while I was
there. So I reviewed the matrix of investigations
posted on the Ombudsman's website, and I didn't see
any there either. Just to be sure, I call Linda Lord-
Jenkins, the Ombudsman, and asked her about complaints
about the ABC Board. She reviewed their database of
complaints, which goes back to 2000. She found one
complaint about the ABC Board, made in 2010 and still
being investigated. One complaint in a decade.
The testimony provided to the Legislative Budget and
Audit subcommittee, and to committees during the
session, has been passionate. Clearly there are
different positions that need to be resolved. Moving
the ABC Board is a dramatic solution, and one not
without cost. Such a solution should be the last
resort, and not the first.
The Advisory Board on Alcoholism and Drug Abuse
supports efforts to promote a collaborative
relationship between the ABC Board and members of the
industry. We can speak: first hand of the benefits of
partnership with CHARR and its members, and see
opportunities for working together to reach common
goals -one of them being ensuring that only lawful
sales of alcohol are made. However, the data -the
compliance rate, the availability and use of alcohol
by underage youth, the disparity in outcomes between
states with the ABC Board in public safety versus
other agencies, and the lack of a record of complaints
about the board's actions -indicate that the
unintended consequences of HB 125 are too costly to
Alaskan communities.
Representative Wilson thought that each state had its own
set of variables that were used to craft the statistics
provided by Ms. Burkhart. She requested more information
regarding the make-up of the ABC boards of other states.
She highlighted that members of the public safety community
held seats on the ABC Board for Alaska, which may not be
the case in the rest of the country. She also thought that
the survey pertaining to alcohol and teenagers could not
have produced an accurate reflection of alcohol use because
teenagers were inherently unable to answer truthfully.
Representative Joule expressed interest in the number of
grant dollars used for the purpose of prevention.
Ms. Burkhart said that she would provide the information to
the committee.
Representative Costello wondered whether there had been any
public awareness campaigns or grants that targeted
controlling minor consumption during times of celebration
such as high school graduation.
Ms. Burkhart stated that she would provide the information
to the committee.
Vice-chair Fairclough wondered whether Ms. Burkhart would
be available then the legislation came back before the
committee.
Ms. Burkhart offered that she would be in the building
throughout the week. She would be out of state the
following week.
Representative Gara wondered why moving the agency would
have a detrimental impact on the ABC Board. He also
wondered whether the board was responsible for sting
operations.
Ms. Burkhart referred to Mr. Winn's comments related to the
three legged stool. She believed substantial progress had
been made following the legislative audit and would be
disrupted if the board were to move to a different agency.
10:27:28 AM
Ms. Burkhart stated that currently the ABC staff and law
enforcement were working jointly. She did not believe that
the quality of work would be maintained if the board were
moved to another agency.
DALE FOX, PRESIDENT, CHARR, ANCHORAGE (via teleconference),
was in support of HB 125. He opined that the industry and
the board were responsible for educating and maintaining
communication with 25,000 employees statewide. He expressed
that education combined with enforcement was the answer. He
pointed out the "Born On" stickers and calendars were
developed to assist workers to quickly do the math to
determine whether a customer was 21 years old.
Identification Flip cards were developed to help with the
multiple dates on military I.D. cards. The industry
employed many tools to assist licensees in compliance. He
believed that industry was doing a great job. He shared
that Alaska was number one in the nation at refusing
service to underage youths. He offered that the industry
was interested in working with the state to encourage
improvement. He relayed that ABC and troopers were
primarily an enforcement agency and did not assist with
education. He believed that DCCED would do an excellent job
at administering the ABC Board, particularly in the area of
education.
Vice-chair Fairclough noted that the committee had run out
of time before completing public testimony. She said she
would make a recommendation to the Co-Chairs to continue
public comment at the 1:30 meeting.
Vice-chair Fairclough discussed housekeeping.
HB 125 was HEARD and HELD in committee for further
consideration.
10:33:42 AM
ADJOURNMENT
The meeting was adjourned at 10:33 AM.