1:34:28 PM CS FOR HOUSE BILL NO. 155(FIN) "An Act extending the termination date of the Alcoholic Beverage Control Board; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Stedman announced intent to report this bill from Committee unless issues were raised that could not be immediately resolved. 1:35:03 PM ELEANOR WOLFE, Staff to Representative Kurt Olson, testified that this legislation was introduced at the request of the Alcoholic Beverage Control (ABC) Board. The recent report conducted by the Division of Legislative Audit identified some problems in the operation of the Board; however she was assured that they would be addressed in separate legislation. This had not yet occurred but the Committee would be notified as to the status of the effort. Ms. Wolfe noted that the original version of this bill would extend the Board for six years. The House Finance Committee considered the bill and recommended the extension be three years. The intent is to provide an opportunity to address any issues similar to those identified in the audit report. 1:36:17 PM Senator Huggins recommended reducing the extension from 36 months, as contained in the current version of the bill, to 24 months with the expectation that the issues would be addressed during the interim and reviews by the legislature near the conclusion of the two-year period. 1:36:49 PM Co-Chair Stedman repeated Senator Huggins's comments. 1:36:57 PM Ms. Wolfe suggested conferring with the Division of Legislative Audit, as the audit process requires one year and would therefore begin in one year. 1:37:24 PM Senator Dyson cautioned that because the legislation originated in the House of Representatives any changes made by the Senate would require concurrence and could jeopardize the passage of the bill and subsequent extension of the Board. 1:37:39 PM Co-Chair Stedman assured that "ample time" remained in the process to receive concurrence from the House of Representatives. Senator Dyson did not understand the dynamics between the two legislative bodies and expressed concern that the bill would not pass. 1:38:37 PM Co-Chair Stedman reassured this would not occur. 1:39:01 PM PAT DAVIDSON, Director, Division of Legislative Audit, testified that the Division is statutorily required to make an audit available to the Legislature when it convenes in the year that a board or commission is scheduled to expire. If the termination date of the ABC Board was scheduled for 24 months, the Division would be required to begin the audit process in June 2008. Interim reporting was another option. Many of the issues highlighted in the recent audit only involve Board action to rectify. 1:40:26 PM Co-Chair Stedman identified two options, one to shorten the timeframe to re-extend the Board, and the other to request the Board report its progress in implementing the changes. The intent was to ensure that the Board would take action. 1:41:04 PM Ms. Wolfe did not oppose a provision requiring the Board to prepare an interim report to the Legislature. 1:41:15 PM Senator Huggins changed his recommendation, instead supporting the existing proposed termination date of the Board and requesting a report from the Board. AT EASE 1:41:43 PM / 1:41:52 PM 1:41:54 PM Co-Chair Stedman asked if the record of this discussion would be sufficient in requesting the report. He preferred the least cumbersome method of ensuring that the Board implements the recommendations identified by the Division of Legislative Audit. 1:42:47 PM Senator Elton suggested the Department of Commerce, Community and Economic Development, Division of Corporations, Business and Occupational Licensing could prepare the report. He pointed out that the recent audit was completed during the Murkowski Administration and that a new commissioner had since been appointed who may encourage different practices. 1:44:07 PM Co-Chair Stedman asked if intent language would be necessary to request this report or whether the spoken intent would suffice. 1:44:39 PM Co-Chair Hoffman offered a motion to report the bill from Committee with individual recommendations and accompanying fiscal note. There was no objection and CS HB 155(FIN) was REPORTED FROM COMMITTEE with zero fiscal note #2 from the Department of Public Safety.