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