Legislature(2015 - 2016)BARNES 124
03/23/2016 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB194 | |
| HB289 | |
| HB337 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 194 | TELECONFERENCED | |
| += | HB 289 | TELECONFERENCED | |
| += | HB 337 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 23, 2016
3:23 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Jim Colver
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Sam Kito
MEMBERS ABSENT
Representative Mike Chenault (alternate)
COMMITTEE CALENDAR
HOUSE BILL NO. 194
"An Act repealing and reenacting the Alaska Securities Act,
including provisions relating to exempt securities and
transactions; relating to registration of securities, firms, and
agents that offer or sell securities and investment advice;
relating to administrative, civil, and criminal enforcement
provisions, including restitution and civil penalties for
violations; allowing certain civil penalties to be used for an
investor training fund; establishing increased civil penalties
for harming older Alaskans; retaining provisions concerning
corporations organized under the Alaska Native Claims Settlement
Act; amending Rules 4, 5, 54, 65, and 90, Alaska Rules of Civil
Procedure; and providing for an effective date."
- MOVED CSHB 194(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 289
"An Act relating to the membership of the Board of Barbers and
Hairdressers."
- MOVED HB 289 OUT OF COMMITTEE
HOUSE BILL NO. 337
"An Act relating to taxes on marijuana."
- MOVED CSHB 337(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 194
SHORT TITLE: AK SECURITIES ACT; PENALTIES; CRT. RULES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
04/13/15 (H) READ THE FIRST TIME - REFERRALS
04/13/15 (H) L&C, JUD, FIN
02/01/16 (H) L&C AT 3:15 PM BARNES 124
02/01/16 (H) Heard & Held
02/01/16 (H) MINUTE(L&C)
02/08/16 (H) L&C AT 3:15 PM BARNES 124
02/08/16 (H) -- MEETING CANCELED --
02/10/16 (H) L&C AT 3:15 PM BARNES 124
02/10/16 (H) <Bill Hearing Canceled>
02/12/16 (H) L&C AT 3:15 PM BARNES 124
02/12/16 (H) <Bill Hearing Canceled>
02/13/16 (H) L&C AT 10:00 AM BARNES 124
02/13/16 (H) <Bill Hearing Canceled>
03/14/16 (H) L&C AT 3:15 PM BARNES 124
03/14/16 (H) Heard & Held
03/14/16 (H) MINUTE(L&C)
03/23/16 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 289
SHORT TITLE: BOARD OF BARBERS AND HAIRDRESSERS
SPONSOR(s): LEDOUX
02/01/16 (H) READ THE FIRST TIME - REFERRALS
02/01/16 (H) L&C
03/21/16 (H) L&C AT 3:15 PM BARNES 124
03/21/16 (H) Heard & Held
03/21/16 (H) MINUTE(L&C)
03/23/16 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 337
SHORT TITLE: MARIJUANA TAXES;EXCESS POSSESSION;BONDS
SPONSOR(s): LEDOUX
02/24/16 (H) READ THE FIRST TIME - REFERRALS
02/24/16 (H) L&C, FIN
03/09/16 (H) L&C AT 3:15 PM BARNES 124
03/09/16 (H) Heard & Held
03/09/16 (H) MINUTE(L&C)
03/11/16 (H) L&C AT 3:15 PM BARNES 124
03/11/16 (H) -- MEETING CANCELED --
03/16/16 (H) L&C AT 3:15 PM BARNES 124
03/16/16 (H) Heard & Held
03/16/16 (H) MINUTE(L&C)
03/21/16 (H) L&C AT 3:15 PM BARNES 124
03/21/16 (H) Scheduled but Not Heard
03/23/16 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
KEVIN ANSELM, Director
Division of Banking and Securities
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Reviewed the committee substitute (CS) for
HB 194, and answered questions.
KAYLSSA MAILE, Staff
Representative Gabrielle LeDoux
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative LeDoux, sponsor
of HB 337, reviewed the committee substitute for HB 337 and
answered questions.
KEN ALPER, Director
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered a question during the hearing on
HB 337.
CYNTHIA FRANKLIN, Director
Alcohol & Marijuana Control Office
Anchorage Office
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
337.
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered a question during the hearing on
HB 337.
ACTION NARRATIVE
3:23:08 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:23 p.m. Representatives Olson,
Josephson, Hughes, LeDoux, Colver, Tilton, and Kito were present
at the call to order.
HB 194-AK SECURITIES ACT; PENALTIES; CRT. RULES
3:23:29 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 194, "An Act repealing and reenacting the Alaska
Securities Act, including provisions relating to exempt
securities and transactions; relating to registration of
securities, firms, and agents that offer or sell securities and
investment advice; relating to administrative, civil, and
criminal enforcement provisions, including restitution and civil
penalties for violations; allowing certain civil penalties to be
used for an investor training fund; establishing increased civil
penalties for harming older Alaskans; retaining provisions
concerning corporations organized under the Alaska Native Claims
Settlement Act; amending Rules 4, 5, 54, 65, and 90, Alaska
Rules of Civil Procedure; and providing for an effective date."
[The committee substitute for HB 194, Version E, was before the
committee.]
3:23:57 PM
KEVIN ANSELM, Director, Division of Banking and Securities,
Department of Commerce, Community & Economic Development,
briefly reviewed HB 194, noting that the bill would recognize
and incorporate current securities industry terms and standards,
update the law, and delete outdated references. Furthermore, HB
194 would synthesize the Alaska Securities Act with other
states' laws, open equity crowdfunding opportunities to
Alaskans, deter investment scams, enhance penalties, and
separate the securities statutes from the Alaska Native Claims
Settlement Act statutes.
3:26:03 PM
REPRESENTATIVE LEDOUX moved to adopt Amendment 1, which read:
Page 34, lines 8 - 9:
Delete "by governmental authorities"
CHAIR OLSON objected for discussion purposes.
REPRESENTATIVE LEDOUX explained that Amendment 1 requires that
any action known to be contemplated has to be disclosed, not
only those contemplated by governmental authorities.
MS. ANSELM opined Amendment 1 would change the model language a
little; however, the original language was not very clear that
all potential or pending litigation that hasn't been filed
should be noticed. She acknowledged that the model language
includes an official comment that said, "Pending litigation can
include litigation that has not yet been filed." Ms. Anselm
said she understood the intent of the amendment, and accepted
the amendment.
REPRESENTATIVE KITO surmised that deleting "by [governmental
authorities]," raises concern about who or what is contemplating
the action.
MS. ANSELM answered that the language in the bill addresses what
needs to be disclosed to potential investors, particularly in
the prospectus of the offering document. An issuer must
disclose any pending litigation, action, or proceeding to which
the issuer is a party, and that materially affects the issuer's
business or assets, and is known to be contemplated by anyone.
Thus, the intent is to have any awareness of a lawsuit
disclosed, whether by the government or anyone else.
3:30:40 PM
REPRESENTATIVE KITO questioned how an individual would know;
actions by a governmental authority require public notice, but
for a private party, it may not be known.
MS. ANSELM agreed; however, sometimes parties do know, but the
paperwork hasn't been filed, and in those cases there should be
disclosure. In further response to Representative Kito, she
said the language can be made clear in regulation.
3:32:12 PM
CHAIR OLSON removed his objection to Amendment 1. There being
no further objection, Amendment 1 was adopted.
3:32:20 PM
CHAIR OLSON opened public testimony on HB 194. After
ascertaining no one wished to testify, public testimony was
closed.
3:32:43 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 194, Version 29-GH1060\E, Bannister, 3/11/16, as amended,
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSHB
194(L&C) was reported from the House Labor and Commerce Standing
Committee.
3:33:16 PM
The committee took an at ease from 3:33 p.m. to 3:36 p.m.
HB 289-BOARD OF BARBERS AND HAIRDRESSERS
3:36:28 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 289, "An Act relating to the membership of the
Board of Barbers and Hairdressers."
CHAIR OLSON opened public testimony on HB 289. After
ascertaining no one wished to testify, closed public testimony.
3:37:22 PM
REPRESENTATIVE HUGHES moved to report HB 289 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 289 was reported from the
House Labor and Commerce Standing Committee.
3:37:46 PM
The committee took an at ease from 3:37 p.m. to 3:38 p.m.
HB 337-MARIJUANA TAXES;EXCESS POSSESSION;BONDS
3:38:04 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 337, "An Act relating to taxes on marijuana."
[The committee substitute for HB 337, Version H, was before the
committee.]
3:41:26 PM
KAYLSSA MAILE, Staff to Representative Gabrielle LeDoux, sponsor
of HB 337, reviewed the bill. She noted that HB 337 establishes
the bonding requirement for marijuana cultivators seeking
licensure, and the committee substitute changed the requirement
from a $5,000 cash bond to the option of either a $5,000 cash
bond, or a surety bond. In addition, the bill makes product
manufacturers and retailers secondarily liable for taxes, and
allows the Department of Revenue (DOR) to assess a tax on plants
above the legal limit for those who are not licensed as
cultivators. The other change made in the committee substitute
was to add an immediate effective date, so that the bill would
to be in effect before licenses are awarded.
REPRESENTATIVE JOSEPHSON asked for the cost to begin a
commercial operation - including lamps and all of the necessary
equipment - and a license.
MS. MAILE was unsure.
3:43:56 PM
KEN ALPER, Director, Tax Division, DOR, advised that the cost of
start-up is part of the licensing process with the Marijuana
Control Board (MCB), Alcohol and Marijuana Control Office,
Department of Commerce, Community & Economic Development, and
DOR does not have a financial relationship with any of the
potential marijuana taxpayers.
REPRESENTATIVE JOSEPHSON inquired as to whether the only fee
imposed by the state thus far is the $5,000 bond in HB 337. He
remarked:
... I just want to know what our 60 hands have imposed
on people, and if it's only $5,000, I'm, I'm going to
vote for this bill I think anyway, but I just want to
get a sense of whether we are really creating
impediments that, that were not part of the spirit of
the [Alaska Marijuana Legalization Ballot Measure 2
(2014)].
MR. ALPER stated that fees and costs are established by MCB
through the regulatory process; in fact, the legislature has not
put any direct costs on the industry.
3:46:02 PM
CYNTHIA FRANKLIN, Director, Alcohol and Marijuana Control
Office, Department of Commerce, Community and Economic
Development, offered to answer questions.
REPRESENTATIVE JOSEPHSON repeated his question.
MS. FRANKLIN advised that the cost of starting a marijuana
business depends on the type of license and on the business
model. Monies paid to the state are an annual licensing fee of
either $1,000 to $5,000, and a nonrefundable $1,000 application
fee, which is split between the state and local government.
REPRESENTATIVE JOSEPHSON estimated that the maximum range of
government fees begins at approximately $11,000, plus the
capital costs of the business.
MS. FRANKLIN pointed out that the $5,000 bond is only imposed on
the cultivator. Other types of marijuana licensing, such as for
a testing facility, would not requiring bonding.
REPRESENTATIVE TILTON asked for an explanation of the difference
between a tax and a penalty against an illegal operation.
3:49:41 PM
KONRAD JACKSON, Staff to Representative Kurt Olson, Alaska State
Legislature, relayed that Legislative Legal Services,
Legislative Affairs Agency, advised that a tax is accessible
immediately without conviction, and a fine or penalty would
require charges and conviction.
CHAIR OLSON redirected the question to Ms. Franklin.
MS. FRANKLIN confirmed that criminal penalties would still apply
because legally growing, selling, or producing marijuana
specified by the Alaska Marijuana Legalization Ballot Measure 2
(2014) only applies to individuals, corporations, and entities
that have a license. Therefore, someone growing without a
license would have criminal charges assessed regardless of
whether DOR has collected taxes.
3:52:16 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 337, Version 29-LS1490\H, Nauman, 3/10/16, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 337(L&C) was
reported from the House Labor and Commerce Standing Committee.
3:53:06 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:53 p.m.
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