Legislature(2005 - 2006)HOUSE FINANCE 519
02/07/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB32 | |
| HB15 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| HB 15 | |||
| HB 32 | |||
HOUSE FINANCE COMMITTEE
February 7, 2005
1:35 P.M.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:35:56 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Carl Moses
MEMBERS ABSENT
Representative Eric Croft
Representative Bruce Weyhrauch
ALSO PRESENT
Mike Pawlowski, Staff, Representative Kevin Meyer; Barbara
Huff-Tuckness, Director, Legislative and Governmental
Affairs, Teamsters Local 959, Anchorage
PRESENT VIA TELECONFERENCE
Representative Vic Kohring, Anchorage; Doug Griffin,
Director, Alcohol Beverage Control Board (ABC), Anchorage;
Kevin Hand, Arctic Power, Anchorage; Gail Phillips, Arctic
Power, Anchorage; Mike Navarre, Arctic Power, Kenai; Bob
Klein, Brown Jug Warehouse, Anchorage
SUMMARY
HB 15 An Act relating to seasonal alcoholic beverage
licenses; and providing for an effective date.
CS HB 15 (L&C) was reported out of Committee with
"individual recommendations" and with zero note #1
by the Department of Fish & Game and fiscal note
#2 by the Department of Public Safety.
HB 32 An Act making a special appropriation for a grant
to Arctic Power to promote the opening of the
Arctic National Wildlife Refuge for oil and gas
exploration and development; and providing for an
effective date.
HB 32 was HEARD and HELD in Committee for further
consideration.
1:36:09 PM
HOUSE BILL NO. 32
An Act making a special appropriation for a grant to
Arctic Power to promote the opening of the Arctic
National Wildlife Refuge for oil and gas exploration
and development; and providing for an effective date.
Co-Chair Meyer stated that it was not his intent to move the
bill from Committee at this time.
REPRESENTATIVE VIC KOHRING (TESTIFIED VIA TELECONFERENCE),
SPONSOR, explained that HB 32 would provide a grant to
Arctic Power. He pointed out the current make-up of the
Arctic Power with Kevin Hand and previous House Speaker Gail
Phillips.
Representative Kohring stated that the Alaska National
Wildlife Refuge (ANWR) carries great importance for the
state of Alaska with the potential to carry ten billion
barrels of recoverable oil. There could be additional oil
and gas along the way.
HB 32 appropriates $1.2 million dollars from the General
Fund to Arctic Power for use in promoting the opening of the
Arctic National Wildlife Refuge (ANWR) by Congress for oil
and gas development. The legislation includes a General
Fund appropriation of $100 thousand dollars to the Native
village of Kaktovik for their community outreach effort to
gain support for the opening of the refuge.
Representative Kohring advised that with declining oil
revenues, it is imperative that Alaska develops new fields.
ANWR is the best prospect for future oil and gas development
in the State and Nation.
The appropriation assists in reaching the goal of opening
that region. In addition, oil and gas exploration and
development of the coastal plain and adjacent land could
result in major unforeseen discoveries that would help
reduce the Nation's future need for imported oil, help
balance the trade deficit and improve national security. He
added that Arctic Power will use the funding to advocate the
importance of oil and gas production from Alaska's North
Slope. Arctic Power is a non-profit private group, which
has been in existence for 12 years and has received previous
State funding for lobbying efforts.
Representative Kohring urged passage of the bill.
1:40:55 PM
GAIL PHILIPS, (TESTIFIED VIA TELECONFERENCE), ARCTIC POWER,
ANCHORAGE, advised that for at least the last ten years, the
Legislature, the Administration, the Alaska Congressional
delegation and the people of Alaska have worked long and
hard to get the need of opening ANWR to the forefront of
public debate. All major development projects in Alaska
take an extra long period of time. She reported that now
the time seems to be right to make ANWR happen. The U.S.
Congressional delegation has requested that Arctic Power
focus their lobbying efforts during the next several months
on the U.S. House of Representatives. Arctic Power has
strong support from the leadership of the House. Opening
ANWR also has strong support from the Secretary of Energy
and the Secretary of the Interior. President Bush's FY07
budget contains anticipated income figures of $2.5 billion
dollars from ANWR. She reiterated strong federal support
for the project.
Ms. Phillips stressed that Arctic Power is requesting that
the House Finance Committee follow in the footsteps of
previous legislators in approving the proposal and providing
it in a timely manner. She stressed that the timeline for
the work is right now and the money is needed to accomplish
this necessary work in Congress. She pointed out that
Representative Weyhrauch is in Washington D.C. at this time,
lobbying for ANWR.
Ms. Phillips voiced her appreciation for being able to
testify on the appropriation request and reiterating the
request for early funding.
1:45:27 PM
Representative Joule pointed out that there is not full
statewide support for the legislation. He asked if the
State was involved in a "stuffing" effort at this time. Ms.
Phillips acknowledged that there is tremendous effort in not
having the legislation pass. She emphasized the need for
funding to stop those efforts. She stressed that the
proposal before the Committee indicates that the "stuffing"
could make the difference in whether it happens; however,
the funds are not in hand to get things moving. She
cautioned that it would take two to three months of advocacy
work to position the State for a favorable vote.
Co-Chair Meyer asked when Arctic Power anticipates the U.S.
Congress to discuss ANWR concerns. Ms. Philips thought that
would be in May 2005.
Co-Chair Chenault inquired about discussions occurring with
the U.S. Congressional delegation and the coordination of
those efforts. Ms. Phillips advised that she had met with
the Alaska delegation before session started. The U.S.
Congressional delegation recommended that Arctic Power focus
their efforts in the U.S. House of Representatives and the
states with new congressmen.
Representative Kelly noted that he had not heard about the
$100 thousand dollar contribution to Kaktovik, asking if it
was justified. Ms. Philips replied that it was definitely
justified; the funding would help them prepare for the
influx of business coming into that small community.
1:50:49 PM
KEVIN HAND, (TESTIFIED VIA TELECONFERENCE), ARCTIC POWER,
ANCHORAGE, provided details on the Kaktovik budget. He
noted that historically, the $100 thousand dollars was split
and $50 thousand dollars would go to the Native village of
Kaktovik and the remaining amount would go to the City of
Kaktovik. In the past, the money was used for advocacy and
education efforts and to help defer other expenses they
incur. Kaktovik is the "back yard" of the area to be
developed.
Representative Kelly understood that the money was to be
used as a support for the lobbying. Mr. Hand agreed that
was correct.
Representative Joule commented that he recently participated
in the economic summit with the Governor and that community.
He noted that the community of Kaktovik is "pumped". The
funding will help offset expenses, as more business is
funneling into that small community. He emphasized that all
entities are working cooperatively. Representative Joule
added that he would provide an amendment to address some
concerns.
Ms. Philips interjected that U.S. Secretary Norton has
scheduled a major tour of the area for March 2005.
Vice-Chair Stoltze indicated that the village of Kaktovik is
not asking too much for the value and credibility that they
are bringing to the table. Such actions reflect how
important they are to the lobbying effort; the village is
currently spending beyond their resources and that the $100
thousand dollar request is minimum.
1:55:56 PM
MIKE NAVARRE, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
BOARD, ARCTIC POWER, KENAI, stressed that the gas line will
provide opportunity for the State of Alaska. He stated that
the State has done an excellent job in educating people
nationally, pointing out that the effort is now at a
critical point. He acknowledged the forces opposing
development for ANWR commenting on the misrepresentation
occurring in that circle.
Arctic Power has always worked closely with the U.S.
Congressional delegation. He encouraged State legislators
to "stay the course" this year, believing that it will pass
nationally. He stressed that the appropriation is an
investment for the future of Alaska. He urged that the
legislation pass as soon as possible as it carries such a
high potential. Mr. Navarre offered to answer questions of
the Committee.
Representative Hawker pointed out that this year Arctic
Power is focusing their efforts in the U.S. House of
Representatives. He asked about Congressman Nussle, Chair
of the U.S. Budget Committee. Ms. Phillips responded that
he is getting a lot of pressure from environmentalist and
constituents from his State but she believed that he
ultimately would not be the one to control the issue. She
did not know his thoughts on the issue at this time.
Mr. Navarre interjected that the reason that there is so
much focus on the House Finance Committee, it to keep it out
of the U.S. budget reconciliation process as the opposition
knows that there currently is not likely 60-votes in the
U.S. House to pass ANWR as a separate bill. On the U.S.
Senate side, Alaska has Senator Ted Stevens, who is quite
capable of handling it there.
KEVIN HAND, (TESTIFIED VIA TELECONFERENCE), ARCTIC POWER,
ANCHORAGE, echoed statements made by Ms. Phillips and Mr.
Navarre. He reiterated that there are many environmental
groups lobbying against passage of ANWR legislation.
However, he pointed out that there is one primary group
advocating for ANWR in Washington D.C., Arctic Power. He
urged funding for the legislation.
BARBARA HUFF-TUCKNESS, DIRECTOR, LEGISLATIVE AND
GOVERNMENTAL AFFAIRS, TEAMSTERS UNION LOCAL 959, ANCHORAGE,
acknowledged for the record that the Teamsters Union does
support the legislation and Arctic Power. She added that
she was a member of the Arctic Power Board.
Ms. Huff-Tuckness pointed out that Arctic Power is not a
State funded entity and without the passage of the
legislation, it would be difficult to "push" for the opening
of ANWR. Teamsters Union Local 959 advocate for the
legislation, as dollars resulting from opening ANWR will
come to the State and are important for working people.
Ms. Huff-Tuckness acknowledged that some of the political
pressures over the years have slowed down the process. She
believed that the concern is now timely and that there has
been much discussion, debate and education over the issue.
Moving through the budget process helps that concern, which
is a positive process. She hoped that it would succeed this
year, as it will benefit every working person statewide.
2:07:05 PM
Vice-Chair Stoltze noted criticism that some of the industry
players have pulled out. He did not see that as a problem
as some of their interests are not the same as that of the
State. Ms. Huff-Tuckness commented on behalf of the
Teamsters, noting that their support is on the table for any
resource development done in the State provided it is done
in a safe manner. The success story is in Prudhoe Bay. For
the Teamsters Union, it is about jobs, local hire and
bringing economic development to the State of Alaska. She
reiterated support for any important economic development
opening up in Alaska. Ms. Huff-Tuckness reiterated that
there is an opportunity to move forward to develop the
resources; the Teamsters see it as a training opportunity
for construction and maintenance workers. The Teamsters
Union will continue to fight for those efforts.
Vice-Chair Stoltze stated that he wanted organized labor's
commitment for the project on the record.
Representative Kelly commented that in the past, there had
been funding assistance and match monies and asked how that
would affect the current $1.3 million dollar request. Mr.
Hand advised that the private dollars that Arctic Power
brings in would work in concert with public money. He noted
that the total budget was a little more than $3 million
dollars. Arctic Power has been successful raising private
money, which demonstrates the newfound optimism resulting
since the presidential election. The focus now is on
Washington D.C. and that 45% of Arctic Power's total budget
will be utilized for that effort. Mr. Hand advised that
currently, Congressman Young is in Seattle, attempting to
educate that State regarding the advantages of the project.
HB 32 was HELD in Committee for further consideration.
2:13:27 PM
HOUSE BILL NO. 15
An Act relating to seasonal alcoholic beverage
licenses; and providing for an effective date.
MIKE PAWLOWSKI, STAFF, REPRESENTATIVE KEVIN MEYER, provided
an overview of HB 15. He noted that there are two distinct
sections to the bill.
The primary purpose of the bill is to create an alcoholic
beverage license for outdoor recreation lodges. He noted
that at present time, lodge owners provide alcoholic
beverages to their guests by either:
· Encouraging guests to bring their own, or
· Providing alcoholic beverages free of charge during
meals, or
· Selling alcoholic beverages illegally.
That creates a difficult situation for lodge owners and the
wholesale or package store seller to that lodge.
Mr. Pawlowski continued, under the current system, a lodge
wishing to sell and provide alcoholic beverages to their
guests must obtain both an alcohol dispensary license and a
package store license, since licenses are limited based on
population, many lodge owners cannot obtain a license even
if they wanted to. HB 15 would create a new alcoholic
beverage license for outdoor recreation lodges.
He continued, HB 15 would limit the license by:
· Allowing a licensee to serve only their overnight
guests and off-duty-staff, or
· Expressly stating that the license may not be
transferred.
Licenses would cost $1,250 for two years, as opposed to the
current $4,000 cost. Under AS 04.11.680, a licensee may
obtain a "seasonal" half-price license. He pointed out that
the fiscal note is positive, assuming very few lodges will
actually get the license.
Mr. Pawlowski added that the second part of the bill is
found in Section 3, an amendment offered by Representative
Rokeberg in the House Labor and Commerce Committee, which
exempt licenses issued under the old public convenience
statute from the current prohibition on transfers. The
action would allow the last existing license issued under
the former statute to be transferred with the same
limitations on a transfer found in the current statute.
The Alcohol Beverage Control (ABC) Board testified in the
House Labor and Commerce Committee that they supported the
amendment and it passed without objection.
Mr. Pawlowski summarized that HB 15 provides an opportunity
for lodge owners to develop another revenue stream for their
business, while providing a legal service to the guests.
2:19:50 PM
Representative Joule referenced Section 4. He asked how
that language would impact a community that has the local
option. Mr. Pawlowski advised that the local option under
Chapter 4 always supercedes the licensing in the statutes.
DOUG GRIFFIN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ALCOHOL BEVERAGE CONTROL (ABC) BOARD, ANCHORAGE, explained
that the ABC Board has known that some lodges operating in
the State have been doing it illegally, noting that it has
been difficult to police. Licensing the entity will be an
improvement and the Board looks forward to working with that
new type of license. There are more and more lodges
springing up every year and there needs to be proper
training for staff. He offered to answer questions of the
Committee.
Mr. Griffin acknowledged that the fiscal impact was
difficult to determine, as the Board had to make assumptions
regarding how many lodges there are and how many would want
to participate in the program. The ABC Board continues to
believe that the legislation would generate income for the
State.
Vice-Chair Stoltze commented that liquor licenses go through
a local review process and assumed that would happen in the
unorganized areas also. Mr. Griffin explained that would be
difficult to determine. There are some lodges in Vice Chair
Stoltze's area that are remote that could qualify. The ABC
Board continues to see licenses going through the local
review process as part of their renewal package. He
suspected that most would be in the unorganized boroughs.
Vice-Chair Stoltze asked if a second-class borough had the
authority to regulate alcohol licenses. Mr. Griffin
responded that there is a role for local governments to
place. In the Mat-Su Borough, the Assembly has chosen a
unique force of action for delegating that responsibility to
their planning department. In most cases, every two years,
every license comes before the local Assembly.
Vice-Chair Stoltze commented that he was not suggesting that
the local process is not flawed and/or political. He did
not believe that most of the lodges wanted to get involved
in outside sales. He asked if there was some level of
public interest. Mr. Griffin explained that there are a
number of different processes that must be passed through.
In an unorganized area, Title 4, there is a petition
requirement to show support for the local license in the
surrounding areas. There are requirements that a petition
process be followed before the license can be issued.
Vice-Chair Stoltze inquired if the structures would have to
be permanent to qualify. Mr. Griffin replied that had not
been defined but there would be discretion regarding each of
the circumstances. He did not think it was essential and
that each would have to meet certain criteria.
Vice-Chair Stoltze speculated that this would not be a
moneymaker for the State except perhaps through the fees
paid.
2:29:46 PM
Co-Chair Meyer explained that he had brought the bill
forward from recommendations received by the Brown Jug
Warehouse. They had concerns that some of lodges were
selling alcohol without a license. Co-Chair Meyer believed
that if a levy were charged for the alcohol, it would
provide new revenue for the State. He understood that the
administration was handled through the Department of Public
Safety, State Troopers. Co-Chair Meyer envisioned that they
would handle the enforcement also.
Co-Chair Meyer pointed out that there has been concern that
"bars" would be set up in some remote areas. In order to be
served, a guest would be required to spend at least one
night. He inquired if the ABC Board was comfortable with
the language as currently written. Mr. Griffin replied that
they were comfortable with that language.
Co-Chair Meyer asked about the amendment adopted by the
House Labor and Commerce Committee. Mr. Griffin stated that
it was reviewed and that it would not present any problems
for licensing.
In response to a request by Co-Chair Meyer, Mr. Griffin
discussed the effect of the Rokeberg amendment. He advised
that there currently exists a public convenience license;
these licenses are not transferable because they are beyond
the quota. He addressed the anomaly of the law and the
history of transferring.
Co-Chair Meyer questioned if a lodge could serve alcohol to
guests and then add the price to their room rate. Mr.
Griffin replied they could not; it would be contrary to
Title 4.
Vice-Chair Stoltze asked if it would be a non-transferable
license. Mr. Griffin replied that there is a limitation
making it non-transferable. There was concern expressed if
a lodge were sold, the new owner then has to apply for a new
license.
Representative Hawker inquired how the drafters determined
the $1,250 dollar amount. Mr. Pawlowski replied that the
detail in determining that figure was arrived at by looking
at the cost of a full beverage-dispensing license and then
dividing it. It's assumed that would be a reasonable level
a small business could afford.
Representative Hawker inquired about the drop in fee for
seasonal places. Mr. Pawlowski discussed that seasonal
licensing was addressed in AS 04.11.680.
2:40:21 PM
BOB KLEIN, (TESTIFIED VIA TELECONFERENCE), BROWN JUG
WAREHOUSE, ANCHORAGE, explained that he is currently wearing
three hats as the Operations Manager for Brown Jug, Chairman
of the Alaska Cabaret Hotel and Restaurant Retail
Association (CHARR) Government Affairs Committee and alumni
of the ABC Board. He provided background history of the
bill. He explained how his business deals with customers in
Bush Alaska who have been involved in illegal alcohol
activities. Mr. Klein discussed the benefits and privileges
related to the legislation and mentioned that there have
been no objections regarding non-transferability. He stated
that it is a good bill as it closes the gap and answers
statewide need for alcohol licensing.
Representative Foster MOVED to report CS HB 15 (L&C) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 15 (L&C) was reported out of Committee with
"individual recommendations and with zero note #1 by the
Department of Fish & Game and fiscal note #2 by the
Department of Public Safety.
ADJOURNMENT
The meeting was adjourned at 2:45 P.M.
| Document Name | Date/Time | Subjects |
|---|