SB 85-ALCOHOL: LOCAL OPTION/LICENSING/MINORS  1:57:07 PM CHAIR FRENCH announced the consideration of SB 85 and asked for a motion to adopt work draft committee substitute (CS), version \S. SENATOR WIELECHOWSKI moved to adopt work draft CS for SB 85, labeled 26-GS1009\S, as the working document. There being no objection, version S was before the committee. ANNE CARPENETI, Attorney, Criminal Division, Department of Law, explained that this CS does not contain the provisions dealing with local options that were in the original bill. Those were removed primarily due to the reaction by the community of Bethel and their representatives. CHAIR FRENCH noted the resolution in the packet from the City of Bethel opposing much of the original bill and stated his belief that the CS addresses most of the concerns expressed in the resolution. MS. CARPENETI explained that the bill consists of three parts. The first two make minor technical changes to legislation that was adopted last year dealing with alcohol enforcement. She offered to again explain those changes and members indicated that wasn't necessary. The remaining issue is to adopt civil penalties for licensees or owners of bars and package stores if one of their agents or employees is convicted of furnishing alcohol to a minor while working on the licensed premises. Current law provides that a bartender can be prosecuted for a class A misdemeanor if he or she is convicted of furnishing alcohol to a minor. She noted that mistakes shouldn't happen very often now that Alaska driver licenses for minors have a vertical, as opposed to horizontal, format. 1:59:29 PM MS. CARPENETI said under current law there are no real consequences to the owners of a bar or liquor store whose employee is convicted of furnishing alcohol to a minor. While most licensees are responsible and take steps to ensure that they don't serve minors, investigations of bars and package stores have shown that about 20 percent fail to maintain that high standard. The administration would like to reduce that failure rate and has decided to take direction from the successful tobacco enforcement program. When civil penalties were adopted for the owners of stores whose employees or agents sold tobacco to under age people, the effect was dramatic. SB 85 adopts less severe penalties than the ones that the Governor tried to adopt in previous years. This bill provides that for the first offense the owner receives a letter that explains the penalties for subsequent offenses. The second and subsequent offenses bring a $1,000 fine. The hope is that all bar owners will be more responsible. 2:02:25 PM DIANE CASTO, Project Manager, Prevention and Early Intervention Services, Division of Behavioral Health, Department of Health and Social Services, said her section of behavioral health manages the tobacco enforcement and education program. This involves going out into communities to check business establishments for a number of things including sales to minors. These so called "SYNAR checks tie the percentage of tobacco sales to minors to a state ability to receive its federal substance abuse prevention and treatment block grant. Every year each state receives a block grant from SAMHSA (Substance Abuse Mental Health Services Administration) for treatment and prevention of substance abuse, but penalties are imposed if a state has a sell rate of tobacco to minors that is over 20 percent. We take our tobacco enforcement very seriously because we don't want to lose funding and because we don't want our youth smoking cigarettes and having access to tobacco, Ms. Casto said. According to the youth risk behavior survey, tobacco use by youths has dropped significantly every year since the more punitive penalties were imposed. Likewise, access to tobacco has reduced. CHAIR FRENCH reviewed a chart on display and observed that 2002 was the break-over year. MS. CASTO said that was the first year that penalties were imposed on businesses with tobacco endorsements. Those penalties are more punitive than the ones proposed in SB 85, but they have been proven to work, she added. 2:06:51 PM CHAIR FRENCH clarified for the listening audience that Ms. Casto is arguing by analogy. MS. CASTO said that's correct, but there are similarities. She explained that youths work with the tobacco investigators to try to purchase tobacco. That's how the compliance rates are determined. Under a partnership agreement these same youths have for the last several years also worked with the alcohol investigators to try to purchase alcohol. Interestingly, a youth that is able to purchase alcohol from a business is turned away when he or she tries to buy tobacco. One reason for that is that the penalties for selling tobacco to a minor are much more severe. "People are much more aware of not selling tobacco to minors than they are of alcohol," she said. MS. CASTO referenced several research reports on regulatory strategies for preventing youth access to alcohol that look at commercial availability, social and public availability, and youth possession. This research found that administrative sanctions are a best practice for reducing youth access to alcohol. These sanctions target the licensee because they are in the best position to prevent future violations by setting good policies and providing good training for the clerks who sell alcohol. Under current law just the clerks receive a penalty for selling alcohol to a minor. Having clear and consistent penalties is an excellent part of a multi-strategy approach. But we aren't saying that retail stores and bars are the only way that youths get alcohol, Ms. Casto emphasized. In fact, a youth risk behavior survey indicates that youth get their alcohol through a licensed vendor just seven percent of the time. Other ways include raiding parents' liquor cabinets, standing outside an establishment and asking an adult to buy for them, and getting it from older friends. "We see this as part of a multi- strategy approach to impact all of these different areas, she said. Research also shows that to be effective there must be a credible threat of consequences that are swift, certain and continue over time. Administrative penalties are the most effective mechanism for deterring sales of alcohol to minors. 2:09:51 PM SENATOR MCGUIRE joined the committee. MS. CASTO related that as with most things in health and social services, they are looking to best practices that have research and evaluation behind them and that have data that show that the strategies that are used are effective. "Everything that has been studied has shown that administrative penalties for the licensee is a very effective method of reducing alcohol accessibility to youth and I think the tobacco example is a perfect comparison," Ms. Casto stated. CHAIR FRENCH said public testimony has been closed, but he would point out that the current CS removes the local option aspects of the bill so most of the concerns articulated in earlier public testimony have been addressed. SENATOR THERRIAULT referred to page 1, line 12, and asked if the bill is clear on how the warning for a first conviction will be issued. CHAIR FRENCH asked Ms. Carpeneti if she foresees the warning to be written or verbal. MS. CARPENETI said she assumes it would be written but it would be helpful if it were spelled out. CHAIR FRENCH asked Senator Therriault if he'd like to move a friendly amendment. 2:12:49 PM SENATOR THERRIAULT moved Amendment 1. AMENDMENT 1 Page 1, line 12: Insert "written" before "warning" CHAIR FRENCH found no objection and announced that Amendment 1 is adopted. He noted that Mr. Mittman with the ACLU and Doug Moody with the Public Defender Agency are online to answer questions on the bill. SENATOR THERRIAULT asked for clarification that just one warning will be issued per licensed premises and not one warning per employee. 2:14:36 PM MS. CARPENETI said that's correct. SENATOR THERRIAULT asked if there would be a way for a licensee to get around this by reformulating their business. MS. CARPENETI replied DOL envisions this going to the license. CHAIR FRENCH stated for the record that Sections 2-5 of this CS have not been changed. MS. CARPENETI corrected her previous statement and said she reads the bill to say that if a bar owner transfers their license the new licensee would start over and get one free strike. CHAIR FRENCH restated that the transgression does not travel with the paper license; it transfers with the person holding the license. MS. CARPENETI stated agreement; that's the point of holding responsible the person who is running the business, setting the tone, and adopting the policies. 2:16:42 PM SENATOR WIELECHOWSKI moved to report CS for SB 85, version S as amended, from committee with individual recommendations and attached fiscal note(s). There being no objection, CSSB 85(JUD) moved from the Senate Judiciary Standing Committee.