Legislature(2019 - 2020)BARNES 124
04/18/2019 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
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| Start | |
| Presentation(s): Status of Industrial Hemp in Alaska | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 18, 2019
8:03 a.m.
MEMBERS PRESENT
Representative Harriet Drummond, Co-Chair
Representative Sara Hannan, Co-Chair
Representative Jonathan Kreiss-Tomkins
Representative Steve Thompson
MEMBERS ABSENT
Representative Matt Claman
Representative Sharon Jackson
Representative Josh Revak
COMMITTEE CALENDAR
PRESENTATION(S): STATUS OF INDUSTRIAL HEMP IN ALASKA
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ROB CARTER, Manager
Plant Materials Center
Division of Agriculture
Department of Natural Resources (DNR)
Palmer, Alaska
POSITION STATEMENT: Offered the first part of the presentation
on the Status of Industrial Hemp in Alaska.
DAVID SCHADE, Acting Director
Division of Agriculture
Department of Natural Resources (DNR)
Palmer, Alaska
POSITION STATEMENT: Gave the second half of the presentation on
the Status of Industrial Hemp in Alaska.
DAN SADDLER, Legislative Liaison/Communications Director
Office of the Commissioner
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Answered a question during the presentation
on the Status of Industrial Hemp in Alaska.
JOAN WILSON, Assistant Attorney General
Commercial, Fair Business Section and Child Support Section
Civil Division (Anchorage)
Department of Law (DOL)
Anchorage, Alaska
POSITION STATEMENT: Provided information during the
presentation on the Status of Industrial Hemp in Alaska.
AARON RALPH, Owner/Manufacturer
Alaska Cannabis Exchange (ACE) CBD Products
(No address provided)
POSITION STATEMENT: Testified during the presentation on the
Status of Industrial Hemp in Alaska.
SHAWN MCDONOUGH
(No address provided)
POSITION STATEMENT: Testified during the presentation on the
Status of Industrial Hemp in Alaska.
KERBY COMAN, Co-owner
Hempire Co.; Owner
Green Degree
Wasilla, Alaska
POSITION STATEMENT: Testified during the presentation on the
Status of Industrial Hemp in Alaska.
ACTION NARRATIVE
8:03:43 AM
CO-CHAIR HARRIET DRUMMOND called the House Community and
Regional Affairs Standing Committee meeting to order at 8:03
a.m. Representatives Kreiss-Tomkins, Thompson, Hannan, and
Drummond were present at the call to order.
^PRESENTATION(S): STATUS OF INDUSTRIAL HEMP IN ALASKA
PRESENTATION(S): STATUS OF INDUSTRIAL HEMP IN ALASKA
8:04:33 AM
CO-CHAIR DRUMMOND announced that the only order of business
would be a presentation on the Status of Industrial Hemp in
Alaska.
8:06:39 AM
ROB CARTER, Manager, Plant Materials Center, Division of
Agriculture, Department of Natural Resources (DNR), began the
PowerPoint presentation on the Status of Industrial Hemp in
Alaska. He directed attention to slide 2, "What is Hemp?" As
shown on the slide, he noted that AS 03.05.100(5) defines
industrial hemp as "all parts and varieties of the plant
Cannabis sativa L. containing not more than 0.3 percent of
delta-9-tetrahydrocannabinol (THC)." To slide 3 - "What is
CBD?" - he explained that CBD is short for cannabidiol, which is
one of the compounds found in Cannabis plants. It is used
widely in "wellness applications." Recently the Federal Drug
Administration (FDA) approved Epidiolex, the first medically
approved CBD compound used to treat seizures. He said CBD can
be added to food, water, tinctures, and salves for use in "what
is believed as a wellness product." Turning to slide 4,
"Division of Agriculture Authority," Mr. Carter said Senate Bill
6 was passed in 2018 [during the Thirtieth Alaska State
Legislature] to create an industrial hemp pilot program to
research the growth, cultivation, and marketing of industrial
hemp and to promulgate regulations necessary to implement the
program.
8:09:47 AM
MR. CARTER directed attention to slide 5, "Agriculture
Improvement Act of 2018 (Federal Farm Bill)," [also referred to
as "the 2018 farm bill"], which he said "somewhat changed the
process for the legality of industrial hemp cultivation in the
United States, and will continue to change that as the [United
States Department of Agriculture] (USDA) Agricultural Marketing
Service begins to regulate or provide guidance to the states
that are regulating industrial hemp." He said one of the most
important parts of the 2018 farm bill is that it will remove
industrial hemp and hemp parts from the federal schedule I drug
listing, which would allow the USDA to set model law and
regulation in collaboration with states that have the intent to
produce industrial hemp. Prior to that, he explained,
individual states created their own pilot programs under the
limited guidance of [the Agricultural Improvement Act of 2014,
also referred to as "the 2014 farm bill."] He indicated that
the USDA may come out with guidance by the end of the year. Mr.
Carter related that another important aspect of the 2018 farm
bill is that although CBD will remain illegal "across the
federal board," it will be up to each individual state to create
exceptions. As long as the products are derived from hemp grown
in a "farm bill-compliant state" by a licensed
cultivator/processor/marketer and meet production and state
regulations, those products will be legal in the market.
8:12:15 AM
MR. CARTER turned to slide 6, "Pilot Program." He said as
approved by the 2014 and 2018 farm bills, DNR's Division of
Agriculture is the state agricultural agency that will conduct
hemp-related research, including growth trials and THC testing.
The plants shown in a photo on the slide are being grown by the
division. He said without the regulations in place, producing,
processing, and marketing industrial hemp and hemp parts is
illegal.
8:13:28 AM
CO-CHAIR HANNAN asked how big the test production will be and
how the hemp is grown.
MR. CARTER answered that seedlings were started in a controlled
environment [a greenhouse], but there are plans to do in-field
trials, as well. He noted that industrial hemp seeds are "much
harder to come by than one would expect" and at significant
cost. The plan is to propagate the plants to hold on to them
after the THC testing is complete.
8:15:15 AM
DAVID SCHADE, Acting Director, Division of Agriculture,
Department of Natural Resources (DNR), gave the second half of
the presentation on the state of industrial hemp in Alaska. He
directed attention to slide 7, "Regulations - Current Adoption
Timeframe," and announced that the division has committed to
have a regulations package ready for public notice by May 15,
2019. He said there is a high level of interest in the project.
He estimated that by September or October, the final regulations
will be in place. Turning to slide 8, titled "Program
Challenges: Private Sector Lab Testing Is Limited," he explained
that one challenge is in writing regulations that meet the
current status of the 2014 farm bill while to the extent
possible meeting the requirements of the 2018 farm bill. As
shown on the slide, he said one challenge is in meeting the 0.3
percent delta-9 THC requirement. He mentioned other tests for
which there would be additional requirements, such as ensuring
pesticides are not being consumed by animals and humans.
8:18:25 AM
MR. SCHADE turned to slide 9, "Program Challenges - USDA
Regulations," and said the USDA does not expect to have its hemp
regulations in place for at least one year and is not accepting
any state program proposals for approval. He explained that the
Division of Agriculture will operate under its state pilot
program but will have to wait until the USDA regulations are in
place before the program is approved. He said the division will
remain in its "experimental mode" while it waits.
8:19:22 AM
REPRESENTATIVE KREISS-TOMKINS referred to slide 8 and asked what
percentage of THC exists in Cannabis.
MR. CARTER answered that most of the recreational Cannabis on
the market is greater than 15 percent and up to about mid-20
percent "as a raw flower product."
8:20:33 AM
MR. SCHADE directed attention to slide 10, "Program Challenges -
CBD Products." He said the division tried to figure out "where
we are in relationship to the industry." Surveys by the
division showed over 300 manufacturers using CBD and 1,000
retail establishments. He said CBD is still illegal for
interstate commerce, yet these products are out there for animal
and human consumption. The division takes seriously its role in
getting these products into legal status to ensure that
"anything hemp-related is being done by the law, properly, and
protective of the public."
MR. SCHADE turned to slide 11, "Program Challenges - Resources."
He said the division currently lacks adequate staff to meet all
hemp program needs and would need additional direct services
staff for PMC and regulatory work. The division estimates it
will require approximately $500,000 in receipt authority
annually. He said Senate Bill 6 mandated that the industry pays
for program-related services, which requires the division to
have receipt authority. He said the program could start midway
through the fiscal year and "ramp up." He said he is not aware
of the receipt authority being in the budget for the division
beyond the regulatory phase.
8:24:13 AM
REPRESENTATIVE THOMPSON asked what "GFPR" - shown on slide 11 -
means.
MR. SCHADE answered it means general fund program receipts.
MR. SCHADE continued to slide 12, "Program Challenges." He said
the program needs to be coordinated with the Marijuana Control
Board and law enforcement. He said his untrained eye cannot
differentiate between a hemp plant and a marijuana plant. He
talked about reporting requirements regarding registrants and
ensuring all phases of the program are compliant with the law.
He noted that law enforcement in some rural areas of the state
is challenging and the division's jurisdiction is statewide. He
said the division has determined there will be statutory changes
to be made under the 2018 farm bill. He explained the division
is currently working under the 2014 farm bill. In the future,
there will be "tweaks" needed in statute so that the division
can be compliant with federal regulations promulgated by the
USDA.
8:26:27 AM
CO-CHAIR HANNAN said that Alaska's state law regarding marijuana
conflicts with federal law. She stated her assumption that the
interest in complying with federal law over hemp is for export
to other states so that Alaska does not get into an interstate
commerce problem. She asked if Alaska needs to be as concerned
about federal regulations when creating regulations for
production of CBD oil.
MR. SCHADE answered that Representative Hannan is right, and
that is why the division is moving forward with its regulations
under the 2014 farm bill. He said, "That allows us to do the
instate use of the industry." However, the concern is whether
the federal government will change its enforcement in the
future. He said the good news is that the federal government
will be removing hemp [and hemp parts] from the list of drugs.
He said both industries can be managed within Alaska. The
difference between marijuana and hemp is that hemp will be legal
in both state and federal law.
CO-CHAIR HANNAN asked if the Division of Agriculture asked for
program receipt authority in order to get through the current
fiscal year with its commercial operation.
8:28:49 AM
DAN SADDLER, Legislative Liaison/Communications Director, Office
of the Commissioner, Department of Natural Resources (DNR),
offered his understanding that receipt authority comes in the
following budget year; therefore, the answer to Representative
Hannan's question would be no. He allowed that he is not an
expert in this area.
8:29:33 AM
REPRESENTATIVE THOMPSON deduced from the photos that hemp grows
10 feet or higher and he asked how that affects trying to grow
it indoors. He also asked how long it takes to grow that big.
MR. CARTER answered that growth rate and height is related to
the cultivar. Hemp varieties vary from 24 inches tall to over
12 feet. He explained that the taller variety would be grown
for fiber production, whereas a smaller variety is grown for oil
production.
8:31:21 AM
CO-CHAIR HANNAN surmised that the division could have three to
four crop cycles grown within a year, each tested for CBD
thresholds.
MR. CARTER confirmed that is correct. At this point the intent
is not about yield but about identifying genetics that grow well
in Alaska. He said the division has the ability to produce
clones that maintain certain genetic material.
CO-CHAIR HANNAN asked if the intent is for the Plant Materials
Center to be the source for the legal seed and clone stock that
could produce CBD for commercial growth in Alaska.
MR. CLARK answered, "I believe that would actually be a decent
function of the Plant Materials Center." He said the division
currently maintains a significant amount of plant materials made
available for the state: 61 grass varieties and 25 different
grain species "known to do well as a vessel from grain
production to reclamation statewide." He offered his
understanding that it is not the intent of the division or the
department to "forever maintain that," but rather it is the
intent that the division identify which of the cultivars or
species can be produced legally to meet the 3 parts per million
threshold and then to maintain some of that genetic material to
keep it in Alaska.
CO-CHAIR HANNAN asked if the division has already initiated
conversations with state regulated labs to do the testing and
whether multiple labs would be utilized in order to ensure
consistent results.
MR. CLARK answered that the division has spoken to many of the
private labs currently working with the recreational Cannabis
industry. He mentioned getting good baseline data in order to
protect the producers, processors, and consumers in Alaska. He
indicated that multiple tests would be done "through any avenue
that we can."
8:35:05 AM
REPRESENTATIVE THOMPSON asked about the distance necessary
between plants to prevent crosspollination.
MR. CLARK answered that isolation distances can change. Pollen
from Cannabis can travel long distances. In a controlled
environment, the intent is to grow "floral material" and remove
the male genetics that produce pollen. In grain production or
"large-scale fiber biomass production," using feed that may be
"both male and female genetic" requires consideration of
isolation distances.
8:36:40 AM
MR. SADDLER, adding to his previous answer to Co-Chair Hannan,
stated he just discovered that receipt authority has not been
requested in the governor's fiscal year 2020 (FY 20) budget.
8:37:00 AM
CO-CHAIR DRUMMOND remarked that that is "easy enough to fix."
She then asked for confirmation that isolation distances don't
apply to recreational Cannabis and hemp because of the way they
are grown.
MR. CLARK answered that is correct.
CO-CHAIR DRUMMOND asked how many outdoor Cannabis growing
operations there are in Alaska.
MR. CLARK responded that he does not know the total but does
know of at least four.
CO-CHAIR DRUMMOND surmised that her question would be better
asked of the Marijuana Control Board.
8:38:26 AM
CO-CHAIR HANNAN asked for more details regarding lab production
and test growing.
MR. CLARK answered that currently the division is the only
entity doing the production; however, once the [federal
regulation] is in place, anyone will be able to pay an
application fee and take part in whatever portion of the
industrial hemp program is of interest. In response to a
follow-up question from Co-Chair Hannan, he confirmed that this
opportunity should be available by this fall, but he hopes it
could be sooner.
8:41:14 AM
CO-CHAIR DRUMMOND noted that apparently the division needs
receipt authority before it can issue any "test licenses."
MR. SCHADE confirmed that is correct.
CO-CHAIR DRUMMOND asked why the division has not asked the
legislature for the receipt authority.
MR. SCHADE replied that the issue has been managed by the Office
of Management & Budget; the division is not working the budget
process. He requested Co-Chair Drummond work with Mr. Saddler
to get an answer to that question.
CO-CHAIR DRUMMOND asked how many inquiries have been made since
passage of Senate Bill 6 by people interested in growing
industrial hemp.
MR. SCHADE answered that the division receives calls daily.
8:43:01 AM
MR. CARTER added that prior to passage of Senate Bill 6, people
were unaware of "the social ramifications of Cannabis and the
relationship of industrial hemp to that." Since passage of
Senate Bill 6, approximately 1,400 people have expressed
interest by giving him their contact information, and he
receives 6-11 phone calls daily.
CO-CHAIR DRUMMOND responded that it sounds like it would be hard
for the division to move forward without receipt authority, and
she said she would like to help. She said it sounds like the
[2018] farm bill "confused the issue," because the division was
all "set to proceed" based on the interpretation under Senate
Bill 6 of the 2014 farm bill.
MR. CLARK answered that's correct; there was a slow-down process
that resulted from the 2018 farm bill. He said there are
specific changes in the 2018 farm bill that are not in Senate
Bill 6 that differ greatly from the 2014 farm bill. There is a
transition "away from pilot programs to make this a valid
commercial agricultural industry."
CO-CHAIR DRUMMOND said it sounds like the test phase is being
skipped to go straight into production.
MR. CARTER told Co-Chair Drummond she is correct. He said there
were four years of production done in other states; Kentucky was
the leader. He indicated that [Kentucky] has about 25,000 acres
registered for production. He stated, "So, they believe that
through their program, through other state programs, they have
identified the viability of growing Cannabis cultivars that meet
that federal definition of hemp, and that it is a revenue
generator to agricultural producers around the country."
CO-CHAIR DRUMMOND asked if the division is allowed to buy
samples of those cultivars for the Alaska project directly from
Kentucky.
MR. CARTER answered yes, but emphasized that this is a gray
area, even on the federal level, regarding whether interstate
commerce is "a viable feed." He said the division has procured
some of its feed through other recognized industrial hemp
programs in Oregon, Colorado, and Kentucky, as well as having
feed shipped, donated, to the division "for trials with folks
interested in Alaska."
CO-CHAIR DRUMMOND asked how the legislature could help the
division by providing receipt authority.
8:47:05 AM
MR. SCHADE deferred to Joan Wilson.
8:47:15 AM
JOAN WILSON, Assistant Attorney General, Commercial, Fair
Business Section and Child Support Section, Civil Division
(Anchorage), Department of Law (DOL), stated that she would
leave the issue of receipt authority to "the agency" but would
discuss changes to Senate Bill 6 that could be made under HB 81.
One change would be to the definition of industrial hemp to
conform with the federal definition. She explained that the
federal definition specifies the inclusion of extracts,
particularly CBD oil, within the definition of industrial hemp,
and while DOL interprets Alaska's definition, which includes
"all parts and varieties of Cannabis sativa", to include
extracts, that language could be made clearer "to reflect the
federal definition."
MS. WILSON said Section 297(b) of the Agricultural Improvement
Act [of 2018] states there will be eight requirements of state
plans, and one is that a state plan must maintain relevant
information regarding the land upon which hemp is produced for
at least three years. There also must be state procedures for
testing, disposal of plant, compliance with enforcement
provisions, annual inspection of random samples of producers,
submittal of information to USDA, and - more important -
certification that the state has the resources to carry out all
of the above.
MS. WILSON noted that the federal law provides that "any person
convicted of a felony related to controlled substances on or
before the effective date of the subtitle shall be ineligible to
participate in a state or federal plan for 10 years." She said
Alaska does not currently have such a provision from Senate Bill
6. The legislature would need to add "a federal bar for
participation" under Title XII. She noted that under Senate
Bill 6, the definition of production includes "growing,
harvesting, possessing, transporting, processing, selling, or
buying industrial hemp." She said she does not think the intent
was to make any person who purchases CBD oil a producer of
industrial hemp. Ms. Wilson next pointed out an inconsistency
regarding "what penalties are a violation." She said under AS
03.05.076(h), the only punishable fine is $500; however, under
AS 03.05.090, people can be charged with class A misdemeanors.
8:50:52 AM
MS. WILSON stated that beyond receipt authority, the legislature
could take steps to "move our state toward compliance with the
federal requirements." She highlighted that the 2018 Act states
that the 2014 Act will be repealed one year after the secretary
of agriculture establishes a federal plan; therefore, "the pilot
programs will remain in place to one year after we have federal
regulations." She offered her understanding that the intent of
that is "to allow for a seamless transition from pilot program
to state and federal plan."
8:51:38 AM
MR. SCHADE stated that if receipt authority is not addressed
under HB 81, the plan is to make a request of the Legislative
Budget and Audit Committee during Interim.
8:52:14 AM
CO-CHAIR DRUMMOND pointed out that the statutory definitions
mentioned by Ms. Wilson would need to be made through
legislation during session.
MR. SCHADE confirmed that is correct; however, he said he is not
concerned with them being done this session, because the
division has one year beyond the final regulations from the FDA.
He emphasized the intent to make all the right changes. He
concluded, "We're in good position right now to move forward
with the law we have on the books."
8:53:30 AM
CO-CHAIR HANNAN indicated to Ms. Wilson that the goal in
compliance with the 2018 farm bill would be to ensure that any
industrial hemp industry developed in Alaska would be able to
use federally regulated banking and export to other states.
MS. WILSON replied that that is part of [the intent]. She said
the other part is ensuring state plans for regulation are
compliant with the federal standard. That will, in turn, permit
the large, interstate market to which Co-Chair Hannan referred.
CO-CHAIR HANNAN observed that even if Alaska law does not comply
with federal law, the state would still be able "to operate
industrial hemp within Alaska for Alaskan consumption."
Complying with the changes would allow Alaska to export its
product.
MS. WILSON acknowledged Co-Chair Hannan's comments. She
explained that a federal Act - the 2014 farm bill - gave Alaska
permission to operate a state industrial hemp pilot program.
That authority under the 2014 Act goes away under the 2018 farm
bill. She said she does not believe Alaska can have a state
plan absent a federal plan. She reiterated that the major
change that would be made under the 2018 farm bill, would be to
remove industrial hemp from schedule I controlled substances.
She indicated there is benefit in aligning state and federal
regulation, because under federal regulation, hemp is not in the
same class as Cannabis sativa.
CO-CHAIR HANNAN said she is perplexed that the legislature
passed a state law that does not give the authority "to operate"
unless the state complies with the federal law.
MS. WILSON responded that every state's industrial hemp pilot
program can exist only because of the 2014 farm bill, so federal
law is giving the states authority to regulate the industry,
even in the pilot status.
8:58:39 AM
CO-CHAIR DRUMMOND observed that slide 5 states there is
currently no effective date in removing industrial hemp and hemp
parts from the federal schedule I [controlled substances]. She
asked for confirmation that Ms. Wilson had said "that is
effective now."
MS. WILSON suggested that that would have been a good question
to have asked the Division of Agriculture when the 2018 farm
bill came out, except that the government was in shutdown at
that point. She offered her understanding that industrial hemp
is no longer regulated as a schedule I controlled substance, so
long as it is industrial hemp from a regulated pilot program.
CO-CHAIR DRUMMOND concluded, "So, the ... test project at the
plant materials center is not in trouble with the schedule I
drug listing, because it ... has been withdrawn from the
listing."
MS. WILSON replied, "That is my belief." She suggested that Mr.
Carter may have another take on that.
MR. CARTER added he has heard "a multitude of other things" from
other states related to the lack of an effective date. He said,
"We do believe that each individual state programming, including
ours, are free from any federal prosecution; we're not breaking
the law for what we are doing." That would not apply to an
individual producing without being registered in the pilot
program. He indicated that the attorneys from many states,
including Alaska, are "trying to rectify with the federal
government to better understand the legal avenues for ... our
state and our producers and our ... retail outlets."
9:01:25 AM
REPRESENTATIVE THOMPSON remarked that it sounds like he could
grow marijuana in his backyard, but not hemp.
MS. WILSON responded, "Yes."
9:01:56 AM
CO-CHAIR DRUMMOND said she thinks the limit for growing
recreational marijuana is up to 12 plants per household, but no
hemp. She said this is a conundrum, but Mr. Carter is working
through these issues and testing the hemp cultivars that will
work in Alaska.
9:02:12 AM
CO-CHAIR DRUMMOND announced that the committee would hear
invited testimony.
9:02:41 AM
AARON RALPH, Owner/Manufacturer, Alaska Cannabis Exchange (ACE)
CBD Products, stated that the intent of Congress is to label
naturally occurring CBD from the hemp plant as a dietary
supplement and food product; however, the FDA does not have a
regulatory process "to have a feasibly new drug go into the
mainstream market and ... constituents of it be herbal products
and food items." He said the FDA will have to "make a special
category for this to occur." He noted that Scott Gottlieb,
before leaving the FDA, set up CBD as a priority, and the FDA is
taking public testimony on May 30, 2019, to start the process of
regulating hemp like any other herbal food or product. He noted
that Mr. Gottlieb has stated that "it would be quicker to have
legislative directive via a bill." Mr. Ralph said the industry
is working on creating a "coal-type memo" with the FDA. There
is an understanding that these products will be regulated like
any other dietary herbal product. He said the American Herbal
Product Association, Vote Hemp, and several other groups are
working towards a bill or memo with the FDA. He noted concerns,
including that the product is not adulterate and that it be
labeled in accordance with food and dietary supplement
requirements. In response to Co-Chair Drummond, he said
Congress is telling [the FDA] to figure out a framework that
"allows for this wording to be added." He said never before has
a pharmaceutical product gone into trials at the same time that
products are being marketed mainstream.
9:06:35 AM
SHAWN MCDONOUGH said he owns a couple small businesses that
distribute CBD products in Alaska. He offered his belief that
those products are "a great benefit to the community." He
opined that hemp provides an opportunity for farmers in Alaska
to have another crop to grow. He said he has purchased
properties in the Homer and Anchor Point areas of the state,
with the intent to grow hemp under the pilot program. He
observed the industry seemed to be moving forward but then
slowed down. He said his background is in the aerospace
manufacturing industry, where he has seen products made by hemp
that can replace petroleum-based plastics. He said he would
love farmers in Alaska to be given the same opportunity others
in the rest of the world have been given.
9:08:45 AM
CO-CHAIR HANNAN asked Mr. McDonough for examples of the products
that can be made with industrial hemp.
MR. MCDONOUGH listed dashboards of vehicles and mentioned
airplane parts, and he reiterated that many products currently
made with plastic could be made with hemp.
CO-CHAIR HANNAN noted most available research focuses on hemp
used for fibers and CBD oils, but Mr. McDonough has mentioned a
new area of hemp use she had not previously thought much about.
She asked if his interest in growing hemp was in producing
products to replace plastics.
MR. MCDONOUGH responded that that is just one avenue he has
considered. He said the first avenue is CBD extraction. He
related that he also has a company, called "Alaska Grown Hemp,"
which is a clothing line based on hemp products he currently
must source from outside Alaska.
CO-CHAIR HANNAN asked about the source of hemp-based plastic
alternatives.
MR. MCDONOUGH indicated that the biofuel from the hemp plant is
used. He deferred to Mr. Carter.
MR. CARTER replied that a multitude of products can be made from
hemp. At this point, he noted, plastics used in manufacturing
are being reinforced with hemp fibers. He said 100 percent hemp
plastic is deemed a bioplastic, which is a combination of oil
expelled from the seed as well as the internal fibers of the
plant. In response to Co-Chair Drummond, he confirmed that all
those products must have less than 0.3 percent of THC to be
approved for production. He noted that the hemp seed contains
almost zero THC. He said that is why a person can shop at a
grocery store for hemp seed oil for culinary use.
9:13:45 AM
CO-CHAIR HANNAN asked Mr. Carter if it would be possible that
Alaska could find itself with a hemp industry that is primarily
seed production, because enough oil could be produced from the
seeds to produce bioplastics.
MR. CARTER answered that he does not think it would be a "one-
item industry." He listed parts used: roots, seed,
cannabinoids, and terpenes. He said CBD is just one of the
extractions that people are using for wellness benefits. He
noted that terpenes are used in flavor additives. He said many
products are made from the hurd, which is the interior part of
the hemp stalk. He related there is consideration of producing
hemp in large scale for biomass, for biofuel, as well as for
reclamation services to spray on unstable slopes. He noted that
hemp plants are being used to remove heavy metals from
contaminated sites. For these reasons he said he does not think
it could be said that industrial hemp in Alaska will focus on
primarily one part of the plant over another but instead will be
"a very well-rounded industry." He added, "We have such
geographical spread, I believe that we're going to get ...
vastly different production, methodologies, and final products
from industrial hemp being grown around the state."
CO-CHAIR HANNAN explained that she had just been reasoning that
seeds could, in and of themselves, be turned into products.
MR. CARTER answered that is correct: a product and byproduct.
He gave further examples.
9:17:24 AM
KERBY COMAN, Co-owner, Hempire Co.; Owner, Green Degree, said
Hempire Co. is a statewide manufacturer and producer of
industrial hemp products and [Green Degree] is a retailer of
recreational marijuana. He expressed appreciation for the
efforts of the legislature to make industrial hemp a viable
industry in Alaska. He shared his experience in the industrial
hemp industry. He mentioned AMCO [Manufacturing, Inc.] and law
enforcement, and emphasized the importance of cooperation. He
said industrial hemp produced in Alaska would be a boost for the
economic growth of the state; it has proven itself to be a
viable crop in states that are being proactive in their pilot
programs. Mr. Coman opined that now is the time for Alaska to
"follow suit." He said it has been over two years since Senate
Bill 6 was introduced and over a year since it was passed. He
advised that legislation had "some great language" and "most of
the foundational work needed" for the promotion and development
of the industrial hemp industry.
MR. COMAN referred to Section 10.114 of the 2018 farm bill,
regarding interstate commerce. He offered his understanding
that interstate commerce is legal irrespective of whether the
FDA or USDA have come up with regulations. He said he has heard
that manufacturing or transportation or anything to do with
industrial hemp products within Alaska is illegal; however, he
said "it says here" that "no state or Indian tribe shall
prohibit the transportation or shipment of hemp or hemp products
produced in accordance with ... the Martin Act of 1946." He
said "we" see hemp as "a limitless product." He predicted that
hemp would replace "over 80 percent of the pharmaceuticals that
are on the market today killing people." He emphasized the need
to work together to figure out the steps that need to be taken
moving forward. He opined that if "we" have the ability to
operate under "the 2014 pilot program," then the state should be
proactive in laying the foundation to grow the hemp industry and
align the state's standards with federal regulation once those
regulations are made. He advised against "playing a waiting
game" when other states "are being proactive and having huge
success with this product." He opined that it does not make
sense to wait when Alaska could be operating under the 2014 farm
bill and Senate Bill 6.
9:22:31 AM
MR. COMAN stated, "It's kind of misconceived that there's no
effective date on the 2018 farm bill." He said the website of
Congress states that it was put into law. Regarding prior
testimony related to the difference between a hemp plant and
marijuana plant, he proffered that they are both from the
Cannabis family; the only difference is how much THC there is.
He stated that ignorance and misunderstanding have attributed to
"where we are at." He offered to do anything to help "bring
this to fruition" and "make this a viable source here in
Alaska." He recapped his key points.
9:24:40 AM
CO-CHAIR DRUMMOND thanked the presenters. She said the
committee would see what could be done to get the receipt
authority underway.
9:25:17 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 9:25 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Supporting Document - Hemp Industry Daily Farm Bill Report 2019.pdf |
HCRA 4/18/2019 8:00:00 AM |
Industrial Hemp |
| Supporting Document - Enrolled SB 6.PDF |
HCRA 4/18/2019 8:00:00 AM |
|
| Supporting Document - SB 6 Fiscal Note DNR.PDF |
HCRA 4/18/2019 8:00:00 AM |
|
| Supporting Document - SB 6 Fiscal Note DCCED.PDF |
HCRA 4/18/2019 8:00:00 AM |
|
| Supporting Document - SB 6 Fiscal Note DPS Crime Lab.PDF |
HCRA 4/18/2019 8:00:00 AM |
|
| Supporting Document - SB 6 Fiscal Note DPS.PDF |
HCRA 4/18/2019 8:00:00 AM |
|
| Supporting Document - AlaskaIndustrialHempFAQs-DNR.pdf |
HCRA 4/18/2019 8:00:00 AM |
Industrial Hemp |
| Industrial Hemp Presentation - DNR .pdf |
HCRA 4/18/2019 8:00:00 AM |
Industrial Hemp |