Legislature(2011 - 2012)HOUSE FINANCE 519

04/10/2012 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:00 p.m. Today --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 140 CATHINONE BATH SALTS TELECONFERENCED
Heard & Held
<Bill Held Over from 9:00 am Meeting>
+= HB 286 G.O. BONDS FOR PORTS TELECONFERENCED
Moved CSHB 286(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 10, 2012                                                                                            
                         2:13 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
2:13:22 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the House Finance Committee meeting                                                                     
to order at 2:13 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Reggie Joule                                                                                                     
Representative Mark Neuman                                                                                                      
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James Armstrong, Staff, Representative Bill Stoltze;                                                                            
Christine Marasigan, Staff, Senator Kevin Meyer.                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Orin  Dym, State  Crime Lab,  Department  of Public  Safety;                                                                    
Rodney Dial, Lieutenant,  State Troopers, Ketchikan; Michael                                                                    
Cooper,  Deputy State  Epidemiologist, Department  of Health                                                                    
and Social Services.                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 286    G.O. BONDS FOR PORTS                                                                                                  
                                                                                                                                
          CSHB 286 (FIN) was REPORTED out of committee with                                                                     
          a "do pass" recommendation and with a new fiscal                                                                      
          note from the Department of Revenue.                                                                                  
                                                                                                                                
CSSB 140(JUD)                                                                                                                   
          CATHINONE BATH SALTS                                                                                                  
                                                                                                                                
          CSSB 140(JUD) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
HOUSE BILL NO. 286                                                                                                            
                                                                                                                                
     "An Act providing  for and relating to  the issuance of                                                                    
     general obligation bonds for  the purpose of paying the                                                                    
     cost of  municipal port projects; and  providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute   for  HB   286(FIN),  Work   Draft  27-GH2769\I,                                                                    
(Krisch, 4/10/12) as a working document.                                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
JAMES  ARMSTRONG,  STAFF,  CO-CHAIR  STOLTZE  explained  the                                                                    
changes  in  the committee  substitute.  In  Section 4,  the                                                                    
Haines Maintenance  Station replacement  for $3  million was                                                                    
removed.  The $3  million was  added to  Section 3,  page 2,                                                                    
line 18,  for the  Haines Borough  Harbor Upgrade  making it                                                                    
now $15 million.  There were technical changes  made on page                                                                    
3,  lines 15-16,  that now  lists projects  as construction,                                                                    
not reconstruction.                                                                                                             
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  objection.  There being  NO                                                                    
OBJECTION it was so ordered.                                                                                                    
                                                                                                                                
Vice-chair  Fairclough explained  the new  fiscal note  from                                                                    
the  Department  of  Revenue,   OMB  Component  Number  121,                                                                    
4/6/12. She  listed the  FY 13  through FY  18 appropriation                                                                    
request and out-year cost estimates.                                                                                            
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSHB  286(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  286 (FIN)  was REPORTED  out of  committee with  a "do                                                                    
pass" recommendation  and with  a new  fiscal note  from the                                                                    
Department of Revenue.                                                                                                          
                                                                                                                                
2:17:09 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:19:18 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 140(JUD)                                                                                                 
                                                                                                                                
     "An Act classifying certain  substances as schedule IIA                                                                    
     controlled substances and  providing penalties relating                                                                    
     to  those substances;  and providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute for  CSSB 140(JUD), Work Draft  27-LS1032\I, as a                                                                    
working  document.  There  being  NO  OBJECTION  it  was  so                                                                    
ordered.                                                                                                                        
                                                                                                                                
CHRISTINE  MARASIGAN, STAFF,  SENATOR KEVIN  MEYER presented                                                                    
the bill  that classifies certain synthetic  cathinones as a                                                                    
controlled substance.  The drug  has been  on the  market as                                                                    
"bath salts" and "plant food,"  but the drug is neither. The                                                                    
drug  is a  synthetic cocaine  that  people are  using as  a                                                                    
substitute  for methamphetamines  or ecstasy.  Ms. Marasigan                                                                    
noted  that  the sponsor's  concern  was  that the  drug  is                                                                    
marketed  toward young  people with  names such  as "Vanilla                                                                    
Sky," Ivory Snow," "Bliss," and  "Meow-Meow." People who use                                                                    
the  drug can  experience palpitations,  seizures, vomiting,                                                                    
paranoia,  blurred-vision,  agitation and  sometimes  death.                                                                    
The U. S. Drug Enforcement  Administration added the drug as                                                                    
a  Schedule  One.  The   Anchorage  municipality  passed  an                                                                    
ordinance in November, 2011, prohibiting  the drug. The Mat-                                                                    
Su Borough  adopted a resolution supporting  Senate Bill 140                                                                    
and the U.S. military has also banned use of the drug.                                                                          
                                                                                                                                
Co-Chair Stoltze  questioned why the Mat-Su  Borough adopted                                                                    
the  resolution. Ms.  Marasigan  explained  that the  Mat-Su                                                                    
Borough believed the drug to be a problem in that area.                                                                         
                                                                                                                                
Ms. Marasigan  continued that the intent  of the legislation                                                                    
was to keep dangerous unregulated  drugs out of the hands of                                                                    
children and  give public safety officials  the tools needed                                                                    
to punish those selling to the young people.                                                                                    
                                                                                                                                
Co-Chair Stoltze OPENED public testimony.                                                                                       
                                                                                                                                
ORIN DYM, STATE CRIME LAB,  DEPARTMENT OF PUBLIC SAFETY (via                                                                    
teleconference) supported the bill.                                                                                             
                                                                                                                                
Representative Gara asked  if there was any way  to rank the                                                                    
drug in order  of its danger to determine how  to charge the                                                                    
crimes under  the bill. Mr.  Dym related that the  drug most                                                                    
resembles methamphetamines and ecstasy.                                                                                         
                                                                                                                                
2:25:15 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg asked  who  Mr. Dym  represented.                                                                    
Co-Chair Stoltze  informed that Mr.  Dym was with  the State                                                                    
Crime Lab in the Department of Public Safety.                                                                                   
                                                                                                                                
Representative Guttenberg  noted that  there had  been other                                                                    
legislation on  cocaine and other  drugs and felt  they were                                                                    
constantly chasing  a chemical  name. A chemical  is changed                                                                    
and  it becomes  a different  drug and  new ever  increasing                                                                    
legislation  is brought  forth  to cover  the  new drug.  He                                                                    
wondered if there  was some way to deal with  it as a larger                                                                    
class of drugs instead of each individual drug.                                                                                 
                                                                                                                                
Mr. Dym understood  the goal, but the bill does  what it can                                                                    
to best of the ability to  just concentrate on the new drug.                                                                    
It is difficult to write a bill for all the unknown drugs.                                                                      
                                                                                                                                
RODNEY  DIAL,  LIEUTENANT,  STATE TROOPERS,  KETCHIKAN  (via                                                                    
teleconference)  noted  that  the  department  supports  the                                                                    
bill. He  notified that  more "bath  salts" cases  are being                                                                    
experienced  around the  state, specifically  in the  Mat-Su                                                                    
area.  People  on  the  drugs  are  very  unpredictable  and                                                                    
situations can get  tense with law enforcement.  A number of                                                                    
people  brought  have  been   brought  into  hospitals  with                                                                    
effects from  the drug. The  drug is a public  health hazard                                                                    
and law enforcement concern.                                                                                                    
                                                                                                                                
Co-Chair Stoltze  pointed out that  bills will be  going out                                                                    
frequently as new  drugs appear and people find  new ways to                                                                    
market dangerous  drugs to young  people. He asked  Lt. Dial                                                                    
if  it  had  been  his  experience  that  there  were  every                                                                    
increasing new  ways to sell  and profit from  drug selling.                                                                    
Lt. Dial agreed.  He noted that on websites the  drug can be                                                                    
found  under other  names,  such as  "fish  food" or  "plant                                                                    
food." The website may say  it is not for human consumption,                                                                    
but then  there will  be testimony on  the site  from people                                                                    
who have used the drug. There  has not been a lot of medical                                                                    
research on  the drug,  but there may  be long  range danger                                                                    
for people  who use  the drug.  He warned  that the  drug is                                                                    
extremely  unpredictable  and  dangerous  to  public  safety                                                                    
officers in the field.                                                                                                          
                                                                                                                                
Co-Chair Stoltze expressed that  some supporters of the bill                                                                    
have  been ridiculed  for wasting  time on  something called                                                                    
"bath salts."  He intended  to stand firm  to keep  the drug                                                                    
out of the hands of children no matter what it is called.                                                                       
                                                                                                                                
2:31:22 PM                                                                                                                    
                                                                                                                                
Representative  Gara  asked why  the  drug  was named  "bath                                                                    
salts." He wanted  to make sure nothing  was being regulated                                                                    
other than  the hard  drug known as  "bath salts."  Mr. Dial                                                                    
replied that  was correct.  He added that  if the  drug were                                                                    
truly  to  be used  for  baths,  it  would be  an  extremely                                                                    
expensive bath.                                                                                                                 
                                                                                                                                
Representative  Guttenberg asked  if  the  primary place  of                                                                    
purchase  was  the  internet.   Mr.  Dial  acknowledged  the                                                                    
internet was the prime purchasing  location if someone lived                                                                    
in a community  without a local distributor.  There are some                                                                    
local  distributors in  Juneau, Mat-Su,  and Soldotna.  Most                                                                    
packages are 200 to 500 milligrams  that sell for $25 to $45                                                                    
dollars.                                                                                                                        
                                                                                                                                
2:33:29 PM                                                                                                                    
                                                                                                                                
MICHAEL COOPER,  DEPUTY STATE EPIDEMIOLOGIST,  DEPARTMENT OF                                                                    
HEALTH  AND SOCIAL  SERVICES (via  teleconference) indicated                                                                    
he was available  to answer questions. He  was familiar with                                                                    
the  drug through  research. As  a doctor  he had  not dealt                                                                    
with  anyone first  hand on  the drug,  but colleagues  have                                                                    
mentioned their experiences with  emergency room patients on                                                                    
the drug. "Bath  salts" are definitely in  Alaska. The worst                                                                    
problem is  the drug is not  regulated so the user  does not                                                                    
know what  they are really getting.  Individuals in internet                                                                    
forums talk about their experiences,  but the person getting                                                                    
the drugs may  have a different experience  with a different                                                                    
form of the drug. The effects can be very severe.                                                                               
                                                                                                                                
Co-Chair Stoltze asked  if it was a good  policy to regulate                                                                    
and criminalize the  drug. Dr. Cooper indicated  that he did                                                                    
not know  the official  department opinion toward  the bill,                                                                    
but he  did testify to  the serious  nature of the  drug. He                                                                    
believed the drug  to be very dangerous. A  major problem is                                                                    
that the  drug has flashy  packaging with cute names  and it                                                                    
is very easy to acquire. It  is worse than some of the other                                                                    
drugs   like  spice   or  marijuana.   One   of  the   worst                                                                    
consequences of the drug is  the unpredictability. The doses                                                                    
are not well established so  someone might use 50 milligrams                                                                    
and then progress to continually higher amounts.                                                                                
                                                                                                                                
Vice-chair Fairclough remarked that  the bill sets the limit                                                                    
at  500 milligrams.  Previous  testimony  reported that  the                                                                    
drug can  be sold in  250 milligram amounts.  She questioned                                                                    
if  250 milligrams  was  a  better number  to  set than  500                                                                    
milligrams.                                                                                                                     
                                                                                                                                
Representative Doogan agreed  with Vice-chair Fairclough. He                                                                    
noted  that it  was hard  to determine  how much  would harm                                                                    
each user. He  had no problem moving the bill,  but would be                                                                    
in  favor of  changing  the  bill to  just  outlaw the  drug                                                                    
completely.                                                                                                                     
                                                                                                                                
Ms.  Marasigan  answered  that  there  had  been  a  lot  of                                                                    
discussion in  Judiciary Committee.  The intent of  the bill                                                                    
was to go after the  people marketing and selling the drugs,                                                                    
not those  who might  possess a small  amount. They  did not                                                                    
want to  create a  whole new  group of  felons. It  had been                                                                    
stated  that 200  to 500  milligrams  was a  dose, which  is                                                                    
about the  size of two  packets of sugar. The  500 milligram                                                                    
threshold  was set  for the  seller rather  than prosecuting                                                                    
the casual user.                                                                                                                
                                                                                                                                
Co-Chair   Stoltze   asked   after   consulting   with   law                                                                    
enforcement what  was the level chosen  when introducing the                                                                    
bill. Ms.  Marasigan replied that  the level was set  at 500                                                                    
milligrams.                                                                                                                     
                                                                                                                                
2:39:04 PM                                                                                                                    
                                                                                                                                
Representative  Gara  agreed  that  the  penalty  should  be                                                                    
higher for seller. He asked if  a young person has two doses                                                                    
of  the drug  would that  be considered  a misdemeanor.  Ms.                                                                    
Marasigan replied  that anything up to  500 milligrams would                                                                    
be a  misdemeanor. Representative Gara asked  how many doses                                                                    
is 500  milligrams. Ms. Marasigan  replied that  between 200                                                                    
milligrams to 500 milligrams was a dose.                                                                                        
                                                                                                                                
Vice-chair Fairclough  asked if  there was  a lot  of online                                                                    
purchasing.  Ms.  Marasigan  nodded.  Vice-chair  Fairclough                                                                    
questioned if  there was  some reason that  it had  not been                                                                    
made  illegal to  ship by  mail into  Alaska. Ms.  Marasigan                                                                    
deferred the question the Department of Public Safety.                                                                          
                                                                                                                                
Lt. Dial  emphasized that online  retailers were  very aware                                                                    
of which states had made it  illegal to sell the product and                                                                    
in  which  states it  was  still  legal. He  indicated  that                                                                    
dosages on the  site were selling from to  200 milligrams to                                                                    
500 milligrams.                                                                                                                 
                                                                                                                                
Vice-chair  Fairclough wondered  if it  was illegal  to mail                                                                    
the drug  anywhere. She questioned  if substances  are being                                                                    
purchased  online, could  it be  possible to  make a  law to                                                                    
stop them  at the post  office. She believed that  should be                                                                    
considered.  She added  that if  there was  an illegal  dose                                                                    
maximum,  then  dealers would  just  package  the drug  into                                                                    
smaller doses to get around the law.                                                                                            
                                                                                                                                
Lt. Dial  indicated that  he did not  believe there  was any                                                                    
purpose to bring  it into the Federal Analog  Act that bands                                                                    
some  substances  from  going  to  certain  places.  Illegal                                                                    
substances under federal  law make it a crime  to mail those                                                                    
substances within the country.  He believed the retailers of                                                                    
"bath salts" were trying to stay  one step ahead of the law.                                                                    
He noted that on some  websites selling "bath salts" the law                                                                    
in  different states  was listed.  If  you live  in a  state                                                                    
where the drug  has been made illegal, the  online site will                                                                    
not send it to you.                                                                                                             
                                                                                                                                
Vice-chair  Fairclough  offered that  different  communities                                                                    
across   Alaska   have   banned  certain   substances.   She                                                                    
acknowledged the state cannot  do anything about the federal                                                                    
post  office as  far as  writing laws,  but the  state could                                                                    
make  it illegal  to  bring  the drug  into  the state.  She                                                                    
indicated she would not stop the bill.                                                                                          
                                                                                                                                
2:44:51 PM                                                                                                                    
                                                                                                                                
Representative Doogan agreed  with Vice-chair Fairclough. He                                                                    
believed if the drug was harmful,  then he would be in favor                                                                    
of changing bill to ban the drug completely.                                                                                    
                                                                                                                                
Representative Gara  reiterated that it  was not clear  if a                                                                    
person buys more  than one dose would that  become a felony.                                                                    
He asked about the size of the packets being sold now.                                                                          
                                                                                                                                
Ms. Marasigan signified that doses  come in brightly colored                                                                    
packets with  the contents at  100, 200, or  500 milligrams.                                                                    
She signified that 500 milligrams  was believed to be a lot.                                                                    
The  intent of  the sponsor  was if  a young  person had  in                                                                    
their possession only 200 milligrams,  the bill did not want                                                                    
to create felons out of them.  The penalty was set for those                                                                    
selling the  drugs. The sponsor's contention  was if someone                                                                    
had  over  500 milligrams  then  they  probably intended  to                                                                    
distribute and sell.                                                                                                            
                                                                                                                                
Co-Chair  Stoltze stressed  that the  bill has  already been                                                                    
through  compromises in  other committees  and he  would not                                                                    
liberalize it any further.                                                                                                      
                                                                                                                                
2:48:32 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough commented  that  when  setting a  bar                                                                    
above zero  on a  substance that can  kill people.  There is                                                                    
often an  expectation in the  young that they are  not going                                                                    
to get hurt by a product  when the state sets the acceptable                                                                    
level.  She did  not  want to  kill the  bill,  but she  was                                                                    
uncomfortable about giving the  public an acceptable amount.                                                                    
She added that children were at risk with the drug.                                                                             
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
CSSB 140(JUD)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:50 PM.                                                                                           

Document Name Date/Time Subjects
HB286 CS WORKDRAFT 27-GH2769-I 4.10.12.pdf HFIN 4/10/2012 1:30:00 PM
HB 286