Legislature(2005 - 2006)HOUSE FINANCE 519

04/05/2005 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 122 LIFE INSURANCE FOR NATIONAL GUARD TELECONFERENCED
Heard & Held
+= HB 149 SALE OF METHAMPHETAMINE AND PRECURSORS TELECONFERENCED
Moved CSHB 149(FIN) Out of Committee
+= HB 156 COMMISSION ON AGING TELECONFERENCED
Moved Out of Committee
+ HB 201 PERM. FUND DIVIDEND APPS OF MILITARY TELECONFERENCED
<Pending Referral><Bill Hearing Postponed
Bills Previously Heard/Scheduled
= HB 16 SCHOOL FUNDS RELATED TO BOARDING SCHOOLS
Moved Out of Committee
= HB 119 AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
Moved CSHB 119(FIN) Out of Committee
HOUSE BILL NO. 149                                                                                                            
                                                                                                                                
     "An  Act relating  to further  regulation  of the  sale,                                                                   
     possession,  and  delivery   of  certain  chemicals  and                                                                   
     precursors used in the manufacture  of methamphetamine."                                                                   
                                                                                                                                
3:45:42 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault MOVED  to ADOPT  the  new CS  for HB  149,                                                                   
labeled  24-LS0596\U,  Luckhaupt, 3/31/05.    There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
REPRESENTATIVE JAY  RAMRAS, sponsor, mentioned  that there is                                                                   
an indeterminate  fiscal note related to costs  by the Public                                                                   
Defender Agency.   He noted  that the governor  is supportive                                                                   
of  this bill.   He  pointed  out that  the  bill deals  with                                                                   
deterrents, but  also attempts to  cut down on the  supply of                                                                   
methamphetamines.  He spoke of  areas in Alaska with profound                                                                   
problems  such  as  Barrow, the  MatSu  Valley,  North  Pole,                                                                   
outside of  Fairbanks, and other  rural areas.   He explained                                                                   
some of  the problems associated  with methamphetamines.   He                                                                   
noted that the bill also addresses the abuse of steroids.                                                                       
                                                                                                                                
Vice-Chair  Stoltze  talked  about  enhanced  protection  and                                                                   
first responders.                                                                                                               
                                                                                                                                
JANE W.  PIERSON, STAFF,  REPRESENTATIVE JAY RAMRAS,  related                                                                   
that  the bill  went  before  legislative legal,  which  said                                                                   
enhancement  is not  a new element  of the  crime.   Reckless                                                                   
endangerment is already a crime.                                                                                                
                                                                                                                                
3:54:31 PM                                                                                                                    
                                                                                                                                
Representative  Ramras clarified that  pseudo ephedrine  is a                                                                   
necessary ingredient  of methamphetamine.   He noted  that it                                                                   
is the best substance to cook the agent with.                                                                                   
                                                                                                                                
TIM BIRT, SERGEANT, JUNEAU, STATE  TROOPERS, spoke in support                                                                   
of  the  legislation.   He  explained  that   without  pseudo                                                                   
ephedrine  there is  no methamphetamine.    He observed  that                                                                   
there is a legitimate use for  pseudo ephedrine.  He spoke to                                                                   
the benchmark  of products.   Six grams  would allow  the use                                                                   
suggested by the  manufacturer.  For every $100  put into the                                                                   
cost   of   manufacturing,   there  is   a   $1,000   return.                                                                   
Methamphetamine is extremely addictive.   He spoke in support                                                                   
of  provisions  requiring  registration  by  consumers.    He                                                                   
stated that there  is a spectrum on retail  sales, where some                                                                   
manufacturers  provide  little  or no  records  sales.  Other                                                                   
manufacturers attempt  to control products from  theft or ask                                                                   
for names and addresses for suspicious sales.                                                                                   
                                                                                                                                
4:01:13 PM                                                                                                                    
                                                                                                                                
In response  to a  question by  Vice-Chair Stoltze,  Sergeant                                                                   
Birt noted that  there are a variety of ways  of transmitting                                                                   
information  regarding  sales  of pseudo  ephedrine  at  this                                                                   
point.                                                                                                                          
                                                                                                                                
Co-Chair Chenault  observed that buyers could  be required to                                                                   
sign as they  currently do for prescription drugs.   He asked                                                                   
how the state would access the information.                                                                                     
                                                                                                                                
Sergeant Birt responded that troopers  would create a working                                                                   
relationship  with  retailers. The  intent  would  be to  not                                                                   
adversely impact the retailers or create burdens.                                                                               
                                                                                                                                
4:04:50 PM                                                                                                                    
                                                                                                                                
Co-Chair   Chenault  noted   the  delicate   nature  of   the                                                                   
information.   He  questioned if  there needs  to be  statute                                                                   
changes  to   allow  access  to  confidential   material.  He                                                                   
expressed  concern with  the indeterminate  fiscal notes.  He                                                                   
pointed out  that he didn't know  if there would be  200 or 2                                                                   
more arrests with the legislation.   He acknowledged the need                                                                   
for the  legislation,  but stressed that  the Committee  must                                                                   
look at the ability to finance the law.                                                                                         
                                                                                                                                
4:07:32 PM                                                                                                                    
                                                                                                                                
Representative Ramras emphasized  that the intent is to choke                                                                   
the  supply  and  make  it  more   difficult  to  obtain.  He                                                                   
estimated  that  there could  be  a  positive affect  on  law                                                                   
enforcement if methamphetamine laboratories were shut down.                                                                     
                                                                                                                                
4:08:49 PM                                                                                                                    
                                                                                                                                
Representative  Hawker referred  to nine  and six tab  limits                                                                   
and  questioned   how  many  tablets  make   up  nine  grams.                                                                   
Sergeant Birt stated that three  hundred tablets make up nine                                                                   
grams.   Every unit of pseudo  ephedrine equals  5.75 product                                                                   
produced.                                                                                                                       
                                                                                                                                
Representative  Hawker  discussed dosages  in  an attempt  to                                                                   
ascertain if the parameters were  appropriate.  He noted that                                                                   
a 30-milligram  tablet would be  reduced to 75 percent  or 24                                                                   
milligrams of  methamphetamine.  He concluded  that one-tenth                                                                   
of a gram would be a street dose of methamphetamine.                                                                            
                                                                                                                                
Representative Hawker  asked if it would be  an impediment to                                                                   
require similar procedures for other prescription drugs.                                                                        
                                                                                                                                
Sgt. Birt responded that it would not.                                                                                          
                                                                                                                                
4:14:18 PM                                                                                                                    
                                                                                                                                
Representative Hawker  suggested that there would  be privacy                                                                   
issues.   He expressed  a concern that  the right  to privacy                                                                   
not be over-stepped.                                                                                                            
                                                                                                                                
Representative  Holm expressed  concern  about  the right  to                                                                   
warrant.    He  noted  that  other  information  couldn't  be                                                                   
obtained with  out court interaction.  The  legislation would                                                                   
allow the  state to  obtain the information  at will,  and he                                                                   
questioned if it would violate the right to privacy.                                                                            
                                                                                                                                
Representative  Holm questioned if  nine grams was  too great                                                                   
an  amount.   He asked  why anyone  would need  more than  30                                                                   
tablets.                                                                                                                        
                                                                                                                                
4:17:13 PM                                                                                                                    
                                                                                                                                
Representative Foster  noted that he lives in  rural areas in                                                                   
the summer and that he stocks up on all his supplies.                                                                           
                                                                                                                                
Representative Weyhrauch  stressed that it is  a national and                                                                   
rural problem in all areas of  the nation.  He emphasized the                                                                   
severity of the problem of pseudo ephedrine use.                                                                                
                                                                                                                                
MARLENA  ADAMS, WASILLA,  (via  teleconference) testified  in                                                                   
support of the legislation.  She  noted that she was addicted                                                                   
to  methamphetamine, which  almost cost  her life.   She  was                                                                   
burned on 47 percent of her body  as a result of an explosion                                                                   
resulting  from methamphetamine  use.    She emphasized  that                                                                   
users become vicious  and paranoid.  She spoke  in support of                                                                   
stronger limitations and penalties.                                                                                             
                                                                                                                                
KURT   KORNCHUCK,    ANCHORAGE   POLICE   DEPARTMENT,    (via                                                                   
teleconference) testified in support  of the legislation.  He                                                                   
noted that  similar legislation  in California has  been very                                                                   
successful.   He did  not think  the measure  was drastic  in                                                                   
comparison to  the problem.  He recounted  instances relating                                                                   
to methamphetamine  use in Anchorage.  He agreed  with a six-                                                                   
gram limit.                                                                                                                     
                                                                                                                                
                                                                                                                                
4:29:10 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  stressed the  intent  to protect  the                                                                   
confidentiality of  records so that they do not  fall prey to                                                                   
marketing.                                                                                                                      
                                                                                                                                
Representative Hawker MOVED to  ADOPT Conceptual Amendment 1:                                                                   
                                                                                                                                
     Page 9, lines 19 and 20:                                                                                                   
     After "dispensed." Delete all material and insert the                                                                      
     following:                                                                                                                 
     "Upon the  request, the Department of Public  Safety and                                                                   
     other law enforcement officers  shall have access to the                                                                   
     log.  The log may be used  for law enforcement purposes,                                                                   
     but is otherwise confidential  and not subject to public                                                                   
     disclosure under AS 40.25.100 - 40.25.220."                                                                                
                                                                                                                                
Representative  Hawker explained  that  confidentiality of  a                                                                   
records log, kept by the retailer,  should be maintained with                                                                   
a  confidentiality  standard in  keeping  with  that used  by                                                                   
paramedical  companies,  but  should not  require  a  warrant                                                                   
situation for law enforcement.                                                                                                  
                                                                                                                                
Representative  Ramras   expressed  concern   that  retailers                                                                   
should  not be  subject to  a crime  if they do  not keep  up                                                                   
their logs adequately.  He pointed  out that there could be a                                                                   
variety  of areas  where pseudo  ephedrine is  sold, such  as                                                                   
hotel gift shops.                                                                                                               
                                                                                                                                
Representative  Hawker  responded   that  less  sophisticated                                                                   
sellers  would need  to  ask the  vast  majority of  innocent                                                                   
Alaskans  to  register  their  driver's  licenses  and  other                                                                   
information.  He  brought up the issue of identity  theft and                                                                   
asked for a legal opinion.                                                                                                      
                                                                                                                                
4:34:54 PM                                                                                                                    
                                                                                                                                
Representative  Ramras suggested  that Representative  Hawker                                                                   
look on  page 9, line 8,  where a conceptual  amendment could                                                                   
be inserted to address confidentiality concerns.                                                                                
                                                                                                                                
Representative  Hawker pointed  out that  he referred  to the                                                                   
wholesaler's portion.                                                                                                           
                                                                                                                                
Ms.  Carpenetti offered  to help  Representative Hawker  with                                                                   
the language for Conceptual Amendment 1.                                                                                        
                                                                                                                                
There  being   NO  OBJECTION,  Conceptual  Amendment   1  was                                                                   
ADOPTED.                                                                                                                        
                                                                                                                                
Co-Chair  Meyer asked  if there  should be  a penalty if  the                                                                   
provision is not met.                                                                                                           
                                                                                                                                
Representative Hawker affirmed,  but emphasized that he would                                                                   
leave it up to the Department of Law.                                                                                           
                                                                                                                                
Co-Chair Meyer agreed with the intent of the amendment.                                                                         
                                                                                                                                
Representative Foster  MOVED to report CSHB 149  (FIN) out of                                                                   
Committee with  the accompanying  fiscal notes.   There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
CSHB  149 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation  and  with  four  previously  published                                                                   
fiscal  notes:   zero  note  #1   COR,  zero  note   #2  LAW,                                                                   
indeterminate  note #3  DOA, indeterminate  note #4  DOC, and                                                                   
with a new fiscal impact note by CED.                                                                                           
                                                                                                                                
[HB 201 was postponed.]                                                                                                         
                                                                                                                                

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