02/13/2018 03:15 PM House STATE AFFAIRS

        HB 319-RENEW MARIJUANA LICENSE:BACKGROUND CHECKS                                                                    
                                                                                                                              
                [Contains discussion of HB 110.]                                                                                
                                                                                                                                
4:22:24 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would  be  HOUSE BILL  NO.  319,  "An  Act relating  to  criminal                                                               
background checks  for marijuana establishment  registrations and                                                               
renewals; and providing for an effective date."                                                                                 
                                                                                                                                
4:22:45 PM                                                                                                                    
                                                                                                                                
MEGAN  HOLLAND,  Staff,  Representative  Andy  Josephson,  Alaska                                                               
State Legislature,  on behalf of Representative  Josephson, prime                                                               
sponsor  of  HB 319,  relayed  that  under current  statute,  for                                                               
marijuana establishments  to renew their registration,  they must                                                               
resubmit a new set of fingerprints  annually.  It is not standard                                                               
protocol for  other industries; the  Board of  Message Therapists                                                               
is the only other board that  requires this.  She maintained that                                                               
there is proposed  legislation [HB 110] currently  being heard in                                                               
the House  Labor and Commerce  Standing Committee to  address the                                                               
issue for that industry.                                                                                                        
                                                                                                                                
MS.   HOLLAND  offered   that  the   reason   for  changing   the                                                               
fingerprinting requirement is  that submitting fresh fingerprints                                                               
every year  or every  two years does  not improve  public safety.                                                               
She  maintained that  it is  an inconvenience  for licensees  and                                                               
registration  holders.    She  relayed  that  the  Department  of                                                               
Commerce, Community  & Economic Development (DCCED)  has a system                                                               
in  place under  which  it receives  an alert,  if  there is  any                                                               
change in  the criminal record  of its licensees  or registration                                                               
holders.                                                                                                                        
                                                                                                                                
MS. HOLLAND relayed  that HB 319 would  change the fingerprinting                                                               
requirements  for  the  renewal of  the  marijuana  establishment                                                               
registration  from an  annual basis  to once  every three  years.                                                               
She maintained that this would  not affect the annual requirement                                                               
to  renew registrations,  which is  addressed in  regulation, not                                                               
statute.    She explained  that  the  three-year requirement  was                                                               
suggested  by  members  of  the  Alcohol  and  Marijuana  Control                                                               
Office, who  unanimously voted  to pass  a resolution  urging the                                                               
legislature to make the change.                                                                                                 
                                                                                                                                
4:25:36 PM                                                                                                                    
                                                                                                                                
MS.  HOLLAND stated  that the  proposed  legislation addresses  a                                                               
lack  of  clarity  in the  interpretation  of  statues  regarding                                                               
fingerprint background  checks.  The Department  of Public Safety                                                               
(DPS) was  expecting an increase in  fingerprint background check                                                               
processing since  they interpreted  existing statutes  to require                                                               
registration  holders to  submit fingerprints  only once  and not                                                               
again upon  renewal.   The DCCED  interpreted the  requirement as                                                               
being  on  an  annual  basis.   The  proposed  legislation  would                                                               
clarify this point.                                                                                                             
                                                                                                                                
MS. HOLLAND  mentioned that she researched  other adult-use legal                                                               
states to find out how they  handled this issue.  She stated that                                                               
there  are a  few  states  that require  new  fingerprints to  be                                                               
submitted;  however, most  have statutory  language stating  that                                                               
the  relevant state  department may  require new  fingerprints if                                                               
there is a demonstrated investigative need.                                                                                     
                                                                                                                                
MS.  HOLLAND summarized  by saying  that HB  319 would  remove an                                                               
unnecessary  burden  to  both  industry  and  the  state  without                                                               
compromising public safety.                                                                                                     
                                                                                                                                
4:27:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KNOPP   suggested   that  the   period   between                                                               
fingerprinting  background  checks  for  massage  therapists  was                                                               
changed  for the  same reason  [as Ms.  Holland just  related for                                                               
marijuana establishment  registrations and renewals].   He stated                                                               
that  he supports  the proposed  legislation; it  would make  the                                                               
requirement  consistent with  the requirements  for other  boards                                                               
and commissions in the renewal process.                                                                                         
                                                                                                                                
MS.  HOLLAND   responded  that   the  requirement   [for  massage                                                               
therapists] has  not been changed  yet; HB 110, if  passed, would                                                               
change  that   requirement.    Under  current   statute,  massage                                                               
therapists are required to submit fingerprints every two years.                                                                 
                                                                                                                                
4:29:05 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS opened public testimony on HB 319.                                                                         
                                                                                                                                
4:29:24 PM                                                                                                                    
                                                                                                                                
CARROLL CARRIGAN,  Executive Director, Alaska  Marijuana Industry                                                               
Association  (AMIA), testified  that he  represents many  retail,                                                               
cultivation, and manufacturing businesses,  as well as individual                                                               
members.  He  referred to AMIA's statement, which  is included in                                                               
the   committee  packet,   and   expressed   that  the   proposed                                                               
legislation would  relieve some  of the  financial burden  on DPS                                                               
for  processing  fingerprint  background checks  every  year  and                                                               
keeping the  fingerprints on file,  as well  as the cost  to AMIA                                                               
membership.                                                                                                                     
                                                                                                                                
4:30:35 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  closed public  testimony on  HB 319  and HB
 and announced that HB 319 would be held over.