Legislature(2017 - 2018)BELTZ 105 (TSBldg)
03/20/2017 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| SB6 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 6 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 6-INDUSTRIAL HEMP PRODUCTION
1:38:59 PM
CHAIR COGHILL announced the consideration of SB 6 and solicited
a motion to adopt the proposed committee substitute (CS).
1:39:12 PM
SENATOR COSTELLO moved to adopt the work draft CS for SB 6,
version 30-LS0173\M, as the working document.
1:39:26 PM
CHAIR COGHILL objected for an explanation of the changes.
1:39:29 PM
JORDAN SHILLING, Staff, Senator John Coghill, reviewed the
following changes between version I and version M of SB 6:
Page 1, Lines 8 & 9:
Intent language added in section one of the bill. The
intention is for the legislature to reevaluate the
regulation of industrial hemp in seven years.
The sunset dates on the previous version have been
removed with the addition of this section.
Page 5, lines 24 & 25:
CBD [Cannabidiol] oils are not included in the
definitions of hashish or hashish oil in this
subsection.
Page 6, lines 9-14:
Language added to allowing the display of registration
on a mobile electronic device as a valid form of
registration for transportation of industrial hemp
under this section. Also, displaying proof of
registration on a mobile electronic device does not
constitute consent for a peace officer's access to
other contents on the device.
Page 7, lines 17-30:
Requires the Department of Natural Resources to submit
a report by December 1, [each year until 2024] on the
regulation of industrial hemp in the state.
MR. SHILLING advised that the annual report must include the
following information: the total number of registered hemp
producers; the number of violations that have occurred; the
number of stop orders issued; the total amount of hemp grown
each year; and a summary of the economic effects of the pilot
program.
CHAIR COGHILL commented that the hope is to increase the
economic benefit.
1:43:16 PM
SENATOR WIELECHOWSKI noted the prohibition against using hemp
for hashish and read the definition of hashish in AS 11.71.900,
which says it is "the dried, compressed, resinous product of the
plant." He asked if that means that you can't dry or compress
hemp.
1:44:03 PM
At ease
1:44:36 PM
CHAIR COGHILL reconvened the meeting.
MR. SHILLING said he doesn't believe it would preclude someone
from drying hemp. For a product to be defined as hashish, it
would have to be dried, compressed, and most importantly the
resinous part of the plant. He suggested that Sara Chambers with
the Alcohol and Marijuana Control Board probably has a better
understanding of the implications of using that definition.
1:45:42 PM
SARA CHAMBERS, Acting Director, Alcohol and Marijuana Control
Board, Department of Commerce, Community and Economic
Development (DCCED), deferred the question to the Department of
Law.
1:46:53 PM
KACI SCHROEDER, Assistant Attorney General, Criminal Division,
Department of Law (DOL), concurred with Mr. Shilling's reading
of the definition. To be considered hashish, the product would
have to have to be the dried, compressed, and the resinous part
of the plant. "I don't think that in itself prohibits somebody
from drying hemp."
SENATOR WIELECHOWSKI asked for confirmation that adopting that
definition wouldn't inhibit the uses mentioned in the testimony.
CHAIR COGHILL offered his understanding that the plant under
this definition is a marijuana plant.
MS. SCHROEDER said that's correct.
CHAIR COGHILL added that this excludes one section so there
isn't any confusion between marijuana and hemp.
MS. SCHROEDER confirmed that under the provisions of SB 6,
marijuana is not hemp.
SENATOR WIELECHOWSKI asked if it's Cannabis.
MS. SCHROEDER said she didn't know if there is a statutory
definition of Cannabis.
SENATOR WIELECHOWSKI read the definition in AS 11.71.900(10).
(10) "hashish" means the dried, compressed, resinous
product of the plant (genus) Cannabis;
He said he wants the record to be clear so that nobody will be
arrested and sent to jail for drying or compressing hemp. He
added that his assumption is that it would need to be dried and
compressed for just about any purpose.
MS. SCHROEDER replied hashish has a specific meaning in the
criminal code and the way it's made is intended to concentrate
THC (Tetrahydrocannabinol) for a psychoactive effect. "I don't
think that we can get there with just making paper as you have
described."
SENATOR WIELECHOWSKI restated that the bill adopts the
definition of hashish from the criminal code, which is defined
as "the dried, compressed, resinous product of the plant (genus)
Cannabis." He said his reading is that drying or compressing
hemp potentially violates the law. He asked, "You're saying
otherwise as the representative of the Department of Law."
MS. SCHROEDER said she understands that reading but doesn't
believe that is the intent. "If you think that there needs to be
some clarifying language then we could think about doing that,
but I don't think anyone's going to be prosecuted for making
paper out of industrial hemp."
1:50:39 PM
SENATOR KELLY offered his perspective that hemp isn't a resinous
product.
SENATOR WIELECHOWSKI reread the definition and said he assumes
it means a dried and compressed and resinous product.
SENATOR KELLY said it's a fair point; the definition doesn't
really apply because hemp doesn't have a resinous product.
CHAIR COGHILL asked the sponsor if hemp is known as the same
thing as (genus) Cannabis.
1:52:18 PM
BUDDY WHITT, Staff, Senator Shelly Hughes, Alaska State
Legislature, sponsor of SB 6, said his reading of the statute is
that Cannabis would include hemp. The bill defines industrial
hemp as Cannabis with 0.3 percent THC or less.
SENATOR WIELECHOWSKI argued that the statute the bill adopts
says industrial hemp produced under a registration under this
section may not be used to produce hashish under the meaning
given in AS 11.71.900. The definition in AS 11.71.900(10) says:
(10) "hashish" means the dried, compressed, resinous
product of the plant (genus) Cannabis;
He asked if it's possible to have a dried, compressed, resinous
product of hemp.
MR. WHITT answered yes. The sponsor didn't want to exclude the
known non-psychoactive components that are used in commercial
CBD oil products. Once CBD oil was removed from the definition
of hashish, the sponsor was satisfied.
1:55:58 PM
CHAIR COGHILL opened public testimony on SB 6.
1:56:41 PM
FRANK TURNEY, representing himself, Fairbanks, Alaska, voiced
support for excluding CBD from the definition of hashish. He
also expressed hope that hemp would not be regulated to the
point that it's a barrier for farmers and people interested in
getting involved in the industry. He said he looks forward to
the time when the 25,000 products that can be made from hemp are
on the shelves and not as imports. He commented on the fact that
the federal government lists industrial hemp as a controlled
substance and voiced support for Alaska listing it as an
agricultural product. He raised questions about who would
participate in the pilot project and talked about the difficulty
of transporting hemp seed across state lines.
2:00:43 PM
NANCY HILLSTRAND, Coal Point Seafoods, Kachemak, Alaska, stated
support for SB 6. She uses a lot of corrugated paper at her
seafood plant and looks forward to the day it can be
manufactured in Alaska from industrial hemp. She listed the
benefits of industrial hemp: it is fast growing, improves soil,
is naturally resistant to pests, is carbon negative, is 10 times
stronger than cotton, the seeds are high in omega-3s, and it's a
complete protein. Alaska will benefit from passage of this bill,
she said.
2:02:23 PM
EMBER HAYNES, representing herself, Talkeetna, Alaska, expressed
appreciation that the current version of SB 6 removes the sunset
clause. She clarified that hemp is of the genus Cannabis Sativa
L. and that there are Cannabis plants that are grown for high
resin CBD and used to counter the effects of seizures and pain.
It is different than the CBD that is found in health food
stores. The latter is made from the entire hemp plant whereas
the high resin CBD is made from the flowers of the Cannabis
plant. She asked for assurance that the language in the bill
wouldn't cause questions regarding hemp seeds that are non-
viable, and expressed hope that the pilot program would allow
people with small acreage to grow industrial hemp for their
livestock and personal use.
2:05:53 PM
STEVE ALBERS, representing himself, said he serves on the board
of the Kenai Soil & Water Conservation District but isn't
speaking for the board. He opined that allowing hemp production
as an agricultural product will benefit the state in countless
ways. He mentioned remediation for the oil industry and forage
for livestock. It has the potential to be a self-sustaining
industry that will benefit other industries throughout the
state. He opined that the Division of Agriculture is best suited
to provide regulation and he doesn't anticipate that violations
will be a problem. He is pleased there is such open transparency
about the product. It is an industry that has the potential to
be beneficial as soon as the plants are in the ground.
2:09:15 PM
JACK BENNETT, Industrial Hemp Manufacturing, LLC, Anchorage,
Alaska, testified in support of SB 6. He said this LLC has
enough equipment to process 40 million pounds of industrial hemp
annually. He mentioned doing business with oil companies
worldwide, a 7-year contract to sell hemp for oil reclamation
technology, and selling fiber to the automotive industry to
illustrate the versatility of industrial hemp. He opined that
industrial hemp will revitalize the farming industry in Alaska
and voiced support for the Division of Agriculture being the
regulating agency. He advised that there are grants available to
fund manufacturing of industrial hemp products.
2:12:59 PM
CHAIR COGHILL closed public testimony on SB 6.
SENATOR COSTELLO directed attention to the language on page 7,
line 18; it mandates a written report to the legislature on an
annual basis. She suggested either striking the word "written"
or specifying the report be in electronic format.
CHAIR COGHILL stated his preference not to amend the bill
because it would slow its progress.
SENATOR COSTELLO said the sponsor heard her comment and
suggestion.
2:16:08 PM
SENATOR COSTELLO moved to report the CS for SB 6 from committee
with individual recommendations and attached fiscal note(s).
2:16:52 PM
CHAIR COGHILL found no objection and announced that CSSB 6(JUD)
is reported from the Senate Judiciary Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS for SB 6 - Version M.pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| CS for SB 55 - Version N.pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 55 |
| SB 6 - Explanation of Changes (I to M).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| SB 6 - Fiscal Note (DNR).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| SB 6 - Sectional Analysis (ver. M).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| SB 55 - Summary of Changes (ver. D to ver. N).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 55 |