Legislature(2015 - 2016)BELTZ 105 (TSBldg)

04/07/2015 03:30 PM COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 146 MUNICIPAL TAX EXEMPTION TELECONFERENCED
Heard & Held
= SB 79 REEMPLOYMENT OF RETIRED TEACHERS & ADMIN
<Pending Referral>
<Above Item Removed from Agenda>
+ HB 75 MARIJUANA REG;CLUBS;MUNIS;LOCAL OPT ELECT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                         April 7, 2015                                                                                          
                           3:32 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Chair                                                                                                     
Senator Bert Stedman, Vice Chair                                                                                                
Senator Lyman Hoffman                                                                                                           
Senator Dennis Egan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Anna MacKinnon                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 146(CRA)                                                                                
"An  Act  relating  to  a municipal  tax  exemption  for  certain                                                               
subdivided property."                                                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 75(JUD) AM                                                                              
"An Act relating to the  registration of marijuana establishments                                                               
by  municipalities; relating  to the  definition of  'marijuana';                                                               
clarifying standards for personal use  of marijuana by persons 21                                                               
years  of age  or older;  prohibiting the  public consumption  of                                                               
marijuana;  authorizing  the  registration  of  marijuana  clubs;                                                               
relating to  established villages  and to local  option elections                                                               
regarding   the  operation   of  marijuana   establishments;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 79                                                                                                              
"An Act relating to reemployment  of persons who retire under the                                                               
defined benefit plan of the teachers' retirement system."                                                                       
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 146                                                                                                                  
SHORT TITLE: MUNICIPAL TAX EXEMPTION                                                                                            
SPONSOR(s): REPRESENTATIVE(s) MUNOZ                                                                                             
                                                                                                                                
03/12/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/12/15       (H)       CRA                                                                                                    
03/24/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/24/15       (H)       Moved CSHB 146(CRA) Out of Committee                                                                   
03/24/15       (H)       MINUTE(CRA)                                                                                            
03/25/15       (H)       CRA RPT CS(CRA) 2DP 5NR                                                                                
03/25/15       (H)       DP: SEATON, TILTON                                                                                     
03/25/15       (H)       NR: REINBOLD, NAGEAK, DRUMMOND, ORTIZ,                                                                 
                         HUGHES                                                                                                 
03/27/15       (H)       TRANSMITTED TO (S)                                                                                     
03/27/15       (H)       VERSION: CSHB 146(CRA)                                                                                 
03/30/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/30/15       (S)       CRA, FIN                                                                                               
04/07/15       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 75                                                                                                                   
SHORT TITLE: MARIJUANA REG; CLUBS; MUNIS; LOCAL OPT ELECT                                                                       
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
01/23/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/23/15       (H)       CRA, JUD                                                                                               
02/21/15       (H)       CRA AT 10:00 AM BARNES 124                                                                             
02/21/15       (H)       -- MEETING CANCELED --                                                                                 
02/24/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
02/24/15       (H)       Heard & Held                                                                                           
02/24/15       (H)       MINUTE(CRA)                                                                                            
03/03/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/03/15       (H)       Moved CSHB 75(CRA) Out of Committee                                                                    
03/03/15       (H)       MINUTE(CRA)                                                                                            
03/05/15       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/05/15       (H)       Moved CSHB 75(CRA) Out of Committee                                                                    
03/05/15       (H)       MINUTE(CRA)                                                                                            
03/06/15       (H)       CRA RPT CS(CRA) NT 3DP 3NR                                                                             
03/06/15       (H)       DP: NAGEAK, SEATON, TILTON                                                                             
03/06/15       (H)       NR: DRUMMOND, REINBOLD, HUGHES                                                                         
03/11/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/11/15       (H)       Heard & Held                                                                                           
03/11/15       (H)       MINUTE(JUD)                                                                                            
03/18/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/18/15       (H)       <Bill Hearing Canceled>                                                                                
03/25/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/25/15       (H)       <Bill Hearing Canceled>                                                                                
03/27/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/27/15       (H)       Moved CSHB 75(JUD) Out of Committee                                                                    
03/27/15       (H)       MINUTE(JUD)                                                                                            
03/30/15       (H)       JUD RPT CS(JUD) NT 1DP 3NR 3AM                                                                         
03/30/15       (H)       DP: LEDOUX                                                                                             
03/30/15       (H)       NR: MILLETT, CLAMAN, FOSTER                                                                            
03/30/15       (H)       AM: LYNN, KELLER, GRUENBERG                                                                            
04/02/15       (H)       TRANSMITTED TO (S)                                                                                     
04/02/15       (H)       VERSION: CSHB 75(JUD) AM                                                                               
04/03/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/03/15       (S)       CRA, JUD                                                                                               
04/07/15       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TERRY HARVEY, Staff                                                                                                             
Representative Cathy Munoz                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 146 on behalf of the sponsor.                                                               
                                                                                                                                
EDRA MORLEDGE, Staff                                                                                                            
Senator Kevin Meyer                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced the Senate CS for HB 146.                                                                      
                                                                                                                                
MERRILL SANFORD, Mayor                                                                                                          
City and Borough of Juneau                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
NORTON GREGORY, Chair                                                                                                           
Juneau Affordable Housing Commission                                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
SHIRLEY MARQUARDT, Mayor                                                                                                        
City of Unalaska                                                                                                                
Unalaska, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
CHUCK HOMAN, President                                                                                                          
Alaska State Home Building Association                                                                                          
Eagle River, Alaska                                                                                                             
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
KATHIE WASSERMAN, Executive Director                                                                                            
Alaska Municipal League                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
DAVE HANNA, General Contractor                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
RUSS MCDOUGAL, Member                                                                                                           
Alaska State Homebuilders Association & Affordable Housing                                                                      
Commission                                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 146.                                                                           
                                                                                                                                
REPRESENTATIVE CATHY TILTON                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 75.                                                                                         
                                                                                                                                
HEATH HILYARD, Staff                                                                                                            
Representative Cathy Tilton                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of HB 75.                                                                            
                                                                                                                                
JOE HARDENBROOK, Special Assistant                                                                                              
Office of the Mayor                                                                                                             
Fairbanks North Star Borough                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 75.                                                                            
                                                                                                                                
AMY MEAD, Municipal Attorney                                                                                                    
City and Borough of Juneau                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 75.                                                                            
                                                                                                                                
DENNIS WHEELER, Municipal Attorney                                                                                              
Municipality of Anchorage                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 75.                                                                            
                                                                                                                                
BROOKS CHANDLER, Attorney                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 75.                                                                            
                                                                                                                                
CATHY WASSERMAN, Executive Director                                                                                             
Alaska Municipal League                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 75.                                                                            
                                                                                                                                
JAMES BARRETT, representing himself                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 75.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:32:25 PM                                                                                                                    
CHAIR  CLICK  BISHOP called  the  Senate  Community and  Regional                                                             
Affairs Standing Committee meeting to  order at 3:32 p.m. Present                                                               
at the  call to order  were Senators Egan, Stedman,  Hoffman, and                                                               
Chair Bishop.                                                                                                                   
                                                                                                                                
                 HB 146-MUNICIPAL TAX EXEMPTION                                                                             
                                                                                                                                
3:34:23 PM                                                                                                                    
CHAIR BISHOP announced the consideration of HB 146. [CSHB                                                                       
146(CRA) was before the committee.]                                                                                             
                                                                                                                                
3:34:33 PM                                                                                                                    
TERRY HARVEY, Staff, Representative Cathy Munoz, Alaska State                                                                   
Legislature, Juneau, Alaska, explained that HB 146 will provide                                                                 
a tax exemption incentive for housing as follows:                                                                               
                                                                                                                                
     HB 146  will give  municipalities around the  state the                                                                    
     option  to provide  an incentive  to  develop land  for                                                                    
     housing and it does so  by offering an exemption for up                                                                    
     to  five   years,  a   property  tax   increase  that's                                                                    
     associated with  subsidizing a  piece of  property, and                                                                    
     it  would  need  to  be  three  or  more  parcels.  The                                                                    
     emphasis   on  this   bill  is   it  is   optional  for                                                                    
     municipalities to  decide if  this could  be a  tool to                                                                    
     help spur housing development.                                                                                             
                                                                                                                                
MR. HARVEY specified the issues in Juneau as follows:                                                                           
                                                                                                                                
     In our own  community of Juneau, we've  had issues with                                                                    
     limited  housing   availability  and  this   issue  was                                                                    
     brought to  us first  by the Juneau  Affordable Housing                                                                    
     Commission.  We had  encouragement  from  the City  and                                                                    
     Borough of Juneau Assembly and  we know there are other                                                                    
     areas  in the  state that  are interested  in having  a                                                                    
     local choice option like this.                                                                                             
                                                                                                                                
     Typically when  a piece of property  is subdivided, you                                                                    
     get permitted and a property  tax will increase as soon                                                                    
     as all  of the paperwork  is filed. This  statute would                                                                    
     allow,  if adopted  by a  local  community, to  suspend                                                                    
     that additional increase in a  property tax value while                                                                    
     the  development was  underway  for up  to five  years.                                                                    
     There  is  flexibility  in  the   statute  to  allow  a                                                                    
     community to  exempt all or  a portion of  the increase                                                                    
     in property tax value.                                                                                                     
                                                                                                                                
3:36:53 PM                                                                                                                    
MR. HARVEY  summarized that the intent  of the bill is  to create                                                               
an incentive to develop properties to get housing on the market.                                                                
                                                                                                                                
3:38:11 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
3:38:46 PM                                                                                                                    
SENATOR STEDMAN moved  to adopt [Senate CS for  CSHB 146, labeled                                                               
29-LS0048\H, as the working document.]                                                                                          
                                                                                                                                
CHAIR BISHOP announced that without  objection version H has been                                                               
adopted.                                                                                                                        
                                                                                                                                
3:39:52 PM                                                                                                                    
EDRA  MORLEDGE,   Staff,  Senator   Kevin  Meyer,   Alaska  State                                                               
Legislature,  Juneau, Alaska,  explained that  the Senate  CS for                                                               
CSHB 146 includes  SB 87, a bill that was  heard in the committee                                                               
the previous week. She detailed that  the CS will do three things                                                               
as follows:                                                                                                                     
                                                                                                                                
        1. Fixes the omission of the word "not," which is a                                                                     
          technical change on page 2, line 27.                                                                                  
        2. Allows the eight unit minimum to be either at the                                                                    
          time of application or at the time of the                                                                             
          completion of the project.                                                                                            
        3. Allows multiple properties in one deteriorated                                                                       
          area of a municipality to be considered                                                                               
          collectively for that eight unit minimum.                                                                             
                                                                                                                                
3:41:06 PM                                                                                                                    
MERRILL  SANFORD,  Mayor, City  and  Borough  of Juneau,  Juneau,                                                               
Alaska,  explained that  the concept  was brought  up within  the                                                               
past two years  as a tax deferral and no  one had shown interest.                                                               
He said  local building and  construction committees  in addition                                                               
to  the Juneau  Affordable  Housing [Commission]  asked that  the                                                               
incentive be  a tax exemption.  He specified that the  bill gives                                                               
local  community governments  the option  to adopt  the exemption                                                               
and  provide  another  tool to  address  housing  shortages  that                                                               
almost all communities face.                                                                                                    
                                                                                                                                
3:42:47 PM                                                                                                                    
NORTON  GREGORY,  Chair,  Juneau  Affordable  Housing  Commission                                                               
(JAHC),  Juneau,  Alaska,  noted  that  he  also  serves  on  the                                                               
management   team   for   the  Tlingit-Haida   Regional   Housing                                                               
Authority,  the   largest  provider  of  affordable   housing  in                                                               
Southeast Alaska.  He stated  that JAHC  supports HB  146 because                                                               
there  is  a disincentive  for  property  owners that  own  large                                                               
parcels  to  subdivide.  He   explained  the  disincentive  under                                                               
current state statute to subdivide as follows:                                                                                  
                                                                                                                                
     With  the  current mill  rate  in  Juneau, if  somebody                                                                    
     subdivided their property,  let's say un-subdivided for                                                                    
     that chunk  of property, that  tax would be  $1,000 per                                                                    
     year; once they subdivide  that property, the mill rate                                                                    
     changes  and  all  of  a  sudden  that  same  chunk  of                                                                    
     property ends up being taxed at $12,000.                                                                                   
                                                                                                                                
He said current  state statute allows for  property tax deferral,                                                               
but JAHC  would like  to see property  tax abatement  until there                                                               
has  actually  been an  improvement  made  on the  property  that                                                               
ultimately generates  a higher  tax rate.  He summarized  that HB                                                               
146 is  important for providing affordable  housing and community                                                               
development.                                                                                                                    
                                                                                                                                
3:44:23 PM                                                                                                                    
SHIRLEY  MARQUARDT, Mayor,  City of  Unalaska, Unalaska,  Alaska,                                                               
said HB 146 is good  legislation. She remarked that landowners do                                                               
not have  a very good  incentive to subdivide their  large pieces                                                               
of  property due  to higher  value taxes.  She said  HB 146  will                                                               
provide Unalaska with  a valuable tool that  will bring immediate                                                               
help in bringing down the cost of building.                                                                                     
                                                                                                                                
3:46:24 PM                                                                                                                    
CHUCK HOMAN,  President, Alaska  State Home  Building Association                                                               
(ASHBA),  Eagle River,  Alaska, declared  that ASHBA  supports HB                                                               
146  as a  way for  municipal governments  to have  an option  to                                                               
provide tax incentives to help in meeting their housing needs.                                                                  
                                                                                                                                
3:47:14 PM                                                                                                                    
KATHIE  WASSERMAN, Executive  Director,  Alaska Municipal  League                                                               
(AML), Juneau,  Alaska, declared that  AML supports HB 146  as an                                                               
opt-in tool to help municipalities develop land.                                                                                
                                                                                                                                
3:48:16 PM                                                                                                                    
DAVE HANNA,  General Contractor, Juneau,  Alaska, said HB  146 is                                                               
enabling  legislation that  is not  mandatory.  He asserted  that                                                               
progressive  communities will  embrace HB  146. He  remarked that                                                               
the current  tax law is  a disincentive  and is horrible.  He set                                                               
forth  that   a  property  owner's   raw  land   for  subdivision                                                               
development  that is  taxed $6,000  to  $10,000 a  year would  be                                                               
taxed  at $150,000  per  year before  a shovel  full  of dirt  is                                                               
turned.  He  summarized  that municipalities  will  collect  more                                                               
taxes from bringing developed properties online.                                                                                
                                                                                                                                
3:50:30 PM                                                                                                                    
SENATOR  STEDMAN  asked  what Juneau's  high-low  range  was  for                                                               
building rate values and its millage rate.                                                                                      
                                                                                                                                
MR. HANNA  answered that Juneau's millage  rate was approximately                                                               
12. He  explained that a  non-waterfront building lot  will range                                                               
from $100,000 to $125,000.                                                                                                      
                                                                                                                                
3:51:18 PM                                                                                                                    
RUSS  MCDOUGAL, Member,  Alaska  State Homebuilders  Association,                                                               
Juneau, Alaska,  noted that  he serves  on the  Juneau Affordable                                                               
Housing Commission (JAHC) as well.  He remarked that Juneau needs                                                               
more housing.  He noted  that he  presented to  JAHC the  need to                                                               
reintroduce tax  incentive legislation  and let the  Alaska State                                                               
Home  Builders  sign-on  as the  sponsor  through  Representative                                                               
Munoz. He asserted that HB 146 is a win-win situation.                                                                          
                                                                                                                                
3:52:49 PM                                                                                                                    
CHAIR BISHOP  closed public testimony  and announced that  HB 146                                                               
will be set aside.                                                                                                              
                                                                                                                                
3:53:17 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
       HB 75-MARIJUANA REG; CLUBS; MUNIS; LOCAL OPT ELECT                                                                   
                                                                                                                                
3:54:52 PM                                                                                                                    
CHAIR BISHOP announced the consideration  of HB 75. [CSHB 75(JUD)                                                               
AM was before the committee.]                                                                                                   
                                                                                                                                
3:55:45 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
3:56:13 PM                                                                                                                    
CHAIR BISHOP called the committee back to order and welcomed                                                                    
sixth graders from the Academy Charter School from Palmer who                                                                   
were attending the meeting to learn about government.                                                                           
                                                                                                                                
3:57:06 PM                                                                                                                    
REPRESENTATIVE CATHY TILTON, Alaska State Legislature, Juneau,                                                                  
Alaska, provided a sponsor statement for HB 75 as follows:                                                                      
                                                                                                                                
     HB 75  is the work  product of the House  Community and                                                                    
     Regional  Affairs   Committee  along  with   the  House                                                                    
     Judiciary  Committee,  more   than  a  dozen  municipal                                                                    
     attorneys  throughout  Alaska,  and the  attorneys  who                                                                    
     drafted the  ballot measure to initiative  language. HB                                                                    
     75 is as  much about the process used to  develop it as                                                                    
     it is about the specific policy content of the bill.                                                                       
                                                                                                                                
     Rather than  telling our boroughs and  cities what they                                                                    
     were going  to do,  the Community and  Regional Affairs                                                                    
     Committee asked them  what they needed us to  do. HB 75                                                                    
     is  a vehicle  that  addresses the  most immediate  and                                                                    
     pressing issues Alaska  municipalities need to address,                                                                    
     it  is fix-it  legislation. Generally  speaking, HB  75                                                                    
     clarifies  that   any  power  municipalities   have  to                                                                    
     regulate  alcohol  establishments,  they also  have  to                                                                    
     regulate marijuana establishments.                                                                                         
                                                                                                                                
     Every key provision in this  bill has been meticulously                                                                    
     considered and  thoughtfully included.  HB 75 is  not a                                                                    
     bill  that   opens  Title  29  and   expands  municipal                                                                    
     authorities, it  is not  a bill  that attempts  or ever                                                                    
     intends  to address  every  issue  associated with  the                                                                    
     passage  of  Ballot Measure  2.  Regardless  of how  my                                                                    
     colleagues feel about  Ballot Measure 2, it  is and was                                                                    
     my  committee's intent  to  assist  our communities  as                                                                    
     they write  their ordinances and  prepare for  this new                                                                    
     industry.                                                                                                                  
                                                                                                                                
3:59:02 PM                                                                                                                    
HEATH HILYARD, Staff, Representative Tilton, Alaska State                                                                       
Legislature, Juneau, Alaska, stated that he would review the                                                                    
changes made to HB 75.                                                                                                          
                                                                                                                                
3:59:37 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
3:59:47 PM                                                                                                                    
CHAIR BISHOP called the committee back to order.                                                                                
                                                                                                                                
MR. HILYARD said the bill's  title has been substantially changed                                                               
from the  initial version  because there are  a number  of policy                                                               
provisions that have been included.  He explained that the bill's                                                               
original  version  was  a  placeholder  in  order  to  allow  for                                                               
legislative development.  He specified changes  made to HB  75 as                                                               
follows:                                                                                                                        
                                                                                                                                
     Section 1, page 1, line 8  through page 2, line 9; this                                                                    
     amends  the definition  of marijuana  in AS  11.71.900.                                                                    
     Because    HB   75    does    not   address    anything                                                                    
     comprehensively  in   Title  11   as  it   pertains  to                                                                    
     controlled substances,  we could not simply  delete the                                                                    
     definition in Title 11. We  had to amend the definition                                                                    
     in Title 11  accordingly to fit with  the definition in                                                                    
     AS 17.38.                                                                                                                  
                                                                                                                                
     Section  2, page  2, lines  10-29; this  is one  of the                                                                    
     most significant pieces. The  main thing that this does                                                                    
     do is establish a household  maximum plant limit of not                                                                    
     more than 24 plants with  not more than 12 being mature                                                                    
     in a  given time.  In developing this  legislation with                                                                    
     municipalities,  they  made  it abundantly  clear  that                                                                    
     they  needed  a bright-line  plant  limit  in which  it                                                                    
     stopped  being  a  personal   grow  and  started  being                                                                    
     commercial, or potentially  criminal depending upon the                                                                    
     provisions of other legislation being considered.                                                                          
                                                                                                                                
     Section  3, page  2, line  30 through  page 3,  line 7;                                                                    
     municipal  attorneys  in   advising  our  committee  in                                                                    
     developing   this  said   that  they   felt  like   the                                                                    
     definition   of   "assisting"   with   the   provisions                                                                    
     governing  "assisting" in  the original  ballot measure                                                                    
     were  sort of  vague  and inconclusive  so  we made  an                                                                    
     attempt  to specify  particularly  what "assisting"  is                                                                    
     not.  One of  the key  provisions  is that  we make  it                                                                    
     clear that claiming assistance does  allow you to be in                                                                    
     possession of  more plants or more  processed marijuana                                                                    
     than  what would  be otherwise  provided  for under  AS                                                                    
     17.38.                                                                                                                     
                                                                                                                                
     Section  6,  page  3, lines  16-24;  contains  language                                                                    
     conforming  to Title  4 provisions,  currently the  ABC                                                                    
     Board, but  it could  be a  marijuana control  board if                                                                    
     adopted,  notification  requirements to  municipalities                                                                    
     when  issuing  registrations for  commercial  marijuana                                                                    
     establishments,  this was  not included  in the  ballot                                                                    
     measure.                                                                                                                   
                                                                                                                                
     Section  8, page  4, line  2 through  page 5,  line 24;                                                                    
     this  contains substantially  similar language  to what                                                                    
     appears in Title 4,  providing notification and protest                                                                    
     review  process for  municipalities regarding  issuance                                                                    
     of marijuana establishment registrations.                                                                                  
                                                                                                                                
     Section  9, page  5  lines 25-31;  Section  9 does  two                                                                    
     important things,  first of all  it makes  reference to                                                                    
     "marijuana  clubs," marijuana  clubs are  later defined                                                                    
     in  the  bill,  and  then  also  begins  to  close  the                                                                    
     loophole  the initiative  sponsors  didn't intend  with                                                                    
     regard  to the  local election  option for  established                                                                    
     villages.                                                                                                                  
                                                                                                                                
     Section 10,  page 6, lines  1-9; this  change expressly                                                                    
     provides  that  municipalities  have the  authority  to                                                                    
     establish civil and  criminal penalties for time-place-                                                                    
     manner     violations    by     commercial    marijuana                                                                    
     establishments,  we clarify  that further  to stipulate                                                                    
     that  this  power  does  not  exceed  anything  already                                                                    
     provided for in Title 29, specifically AS 29.25.070.                                                                       
                                                                                                                                
4:03:28 PM                                                                                                                    
SENATOR HOFFMAN  asked how Section  9 compared with  the Senate's                                                               
version of  the legislation  where the  Legislature acted  as the                                                               
assembly for  the unorganized boroughs  and elected as a  body to                                                               
opt-out.  He  stated  that  Section   9  is  reversed  where  the                                                               
unorganized borough has to vote to opt back in.                                                                                 
                                                                                                                                
MR. HILYARD answered that he will address Senator Hoffman's                                                                     
statement a bit later in the bill. He continued his overview as                                                                 
follows:                                                                                                                        
                                                                                                                                
     Section 12, page 6, lines  20-25; on line 24 the phrase                                                                    
     "consistent with  the" replacing  "subject to  all" has                                                                    
     been  changed and  the functional  meaning  here is  to                                                                    
     simply   state   that    in   the   circumstance   when                                                                    
     municipalities  have  ordinances  that  are  consistent                                                                    
     with AS 44.62, the  Administrative Procedures Act, they                                                                    
     are allowed to  use their own body  of ordinance rather                                                                    
     than  relying   specifically  on  state   statute,  the                                                                    
     explanation  from  municipal  attorneys  is  that  that                                                                    
     could  create some  confusion for  them  when they  are                                                                    
     adopting their own ordinances, so  this gives them some                                                                    
     flexibility.                                                                                                               
                                                                                                                                
     Section  15, page  7, lines  11-16;  the provision  was                                                                    
     included as  a potential  circumstance regarding  a gap                                                                    
     in  enforcement.   One  of  the  situations   that  was                                                                    
     identified,  Mr.  Chair,  particularly  that  might  be                                                                    
     relevant  to  the  Fairbanks  North  Star  Borough,  is                                                                    
     because it  is a  second-class borough, it  has neither                                                                    
     general  police authority  or public  health authority;                                                                    
     so  in this  circumstance, the  municipality being  the                                                                    
     Fairbanks  North Star  Borough, could  have issued  the                                                                    
     registration  for a  marijuana establishment,  but they                                                                    
     don't  have the  authority  to do  any enforcement,  so                                                                    
     this stipulates  that in  that circumstance  the holder                                                                    
     of the  marijuana establishment registration  will also                                                                    
     be subject to state  enforcement so that there wouldn't                                                                    
     be a potential gap.                                                                                                        
                                                                                                                                
     Section  17,  page  7,  lines  20-23;  similar  to  the                                                                    
     language   in   Section   12,  this   stipulates   that                                                                    
     municipalities have  the flexibility  to use  their own                                                                    
     version of the  Administrative Procedures Act presuming                                                                    
     they have one in their body of ordinance.                                                                                  
                                                                                                                                
     Section 18,  page 7, lines  26 through page 8,  line 4;                                                                    
     the   most   significant   component  to   Section   18                                                                    
     stipulates that  any powers authorized by  boroughs may                                                                    
     only be exercised on  a non-area-wide basis stipulating                                                                    
     that they  can't override the  will of cities  in their                                                                    
     boundaries.                                                                                                                
                                                                                                                                
     Section  19, page  8, lines  5-24; this  is really  the                                                                    
     core section of  the bill that deals  with what Senator                                                                    
     Hoffman  was asking  about. Section  19 sets  forth the                                                                    
     process  by which  an established  village can  hold an                                                                    
     election,  the  current version  in  our  bill, as  is,                                                                    
     follows the Title 4 provisions virtually identically.                                                                      
                                                                                                                                
     Section 21, page 10, lines  25 through page 11, line 2;                                                                    
     revises the definition of  "marijuana" to be consistent                                                                    
     with Section  1 of  the bill,  the practical  effect is                                                                    
     that   there  is   only   one   common  definition   of                                                                    
     "marijuana" in statute.                                                                                                    
                                                                                                                                
     Section 22, page 11, lines  3-6; adds the definition of                                                                    
     "marijuana clubs" to "marijuana establishments."                                                                           
                                                                                                                                
     Section   23,  page   11,   lines  7-21;   definitions,                                                                    
     originally the  bill used  the word  "residence" rather                                                                    
     than  "dwelling" so  there is  a proper  definition for                                                                    
     "dwelling"  as  opposed  to  "residence,"  "established                                                                    
     village,"   "marijuana   club,"  "public   place,"   as                                                                    
     recommended.  Of note,  "public place"  closely follows                                                                    
     the  definition  in  AS   11.81.900,  but  does  exempt                                                                    
     "marijuana  clubs"  from   the  definition  of  "public                                                                    
     place,"   the   functional    practical   reality   is,                                                                    
     "marijuana  clubs" will  not  be  considered a  "public                                                                    
     place."                                                                                                                    
                                                                                                                                
     Section  24,   page  11,  line  22;   makes  conforming                                                                    
     amendments to  AS 17.38 necessitated by  other areas of                                                                    
     the bill.                                                                                                                  
                                                                                                                                
     Section  25,   page  11,  line  23;   provides  for  an                                                                    
     immediate effective date of the bill.                                                                                      
                                                                                                                                
4:07:36 PM                                                                                                                    
SENATOR EGAN  asked if communities  in unorganized  boroughs have                                                               
to opt-in to sell alcohol.                                                                                                      
                                                                                                                                
SENATOR  HOFFMAN remarked  that communities  can opt-in  and opt-                                                               
out.                                                                                                                            
                                                                                                                                
SENATOR   EGAN  asked   him  to   confirm  that   communities  in                                                               
unorganized boroughs would have to opt-out for marijuana.                                                                       
                                                                                                                                
MR. HILYARD answered correct.                                                                                                   
                                                                                                                                
CHAIR  BISHOP asked  what the  purpose of  establishing marijuana                                                               
clubs was.                                                                                                                      
                                                                                                                                
MR. HILYARD  answered that the  establishment of  marijuana clubs                                                               
came as an  expressed request by a number  of municipalities; for                                                               
instance, upcoming testimony from the  City and Borough of Juneau                                                               
will  indicate that  marijuana  clubs will  provide  a place  for                                                               
cruise  ship  passengers  during  the summer  months  to  legally                                                               
consume  marijuana.  He  said  conversely,  Wasilla  has  already                                                               
expressly   banned   marijuana   clubs   under   their   existing                                                               
ordinances.                                                                                                                     
                                                                                                                                
4:09:23 PM                                                                                                                    
CHAIR BISHOP asked him to  verify that a municipality can opt-out                                                               
of allowing marijuana clubs.                                                                                                    
                                                                                                                                
MR. HILYARD answered correct.                                                                                                   
                                                                                                                                
CHAIR BISHOP  remarked that  coffee houses  in Amsterdam  are the                                                               
same  as  a  marijuana  club  where  individuals  can  use  their                                                               
recreational marijuana.                                                                                                         
                                                                                                                                
MR. HILYARD  specified that the  marijuana club is  modeled after                                                               
the  definition  of  "bottle  clubs" under  Title  4  for  simple                                                               
consumption, not buying or selling.  He added that the definition                                                               
in the bill states  that a paying member must be  over the age of                                                               
21.                                                                                                                             
                                                                                                                                
SENATOR STEDMAN asked  why marijuana clubs should  be included in                                                               
the bill.                                                                                                                       
                                                                                                                                
MR. HILYARD answered  that the inclusion was in  response to what                                                               
municipalities brought to the committee.                                                                                        
                                                                                                                                
SENATOR HOFFMAN  remarked that  as the  bill relates  to alcohol,                                                               
bottle clubs are not allowed. He  stated that if the intent is to                                                               
treat marijuana like alcohol, the two provisions do not relate.                                                                 
                                                                                                                                
4:11:32 PM                                                                                                                    
JOE  HARDENBROOK,   Special  Assistant,  Office  of   the  Mayor,                                                               
Fairbanks North Star Borough, Fairbanks,  Alaska, stated that the                                                               
Fairbanks North  Star Borough supports the  language as currently                                                               
stated  in HB  75.  He  remarked that  the  Fairbanks North  Star                                                               
Borough  appreciates   the  opportunity  to   regulate  potential                                                               
marijuana businesses at the local level.                                                                                        
                                                                                                                                
MR.  HARDENBROOK  called  attention   to  Section  15  and  noted                                                               
concerns  regarding  changes  in  the language  with  respect  to                                                               
registration  issues by  the municipality  should the  state miss                                                               
its  deadlines  for  creation and  adoption  of  regulations.  He                                                               
pointed out that the initiative  said that should a local license                                                               
be issued in  lieu of a state license, the  license would be good                                                               
for a year and would not  be subject to state regulation, but the                                                               
proviso in the  bill says that such a registration  is subject to                                                               
state regulation. He  detailed that a scenario  could occur where                                                               
a local  business obtains  a license  from the  municipality, but                                                               
the state  enacts new  regulations a  month later.  He reiterated                                                               
that  Section 15  gives  the Fairbanks  North  Star Borough  some                                                               
concern.                                                                                                                        
                                                                                                                                
MR.  HARDENBROOK  noted  that  Section  18 in  HB  75  makes  the                                                               
initiative  powers non-area  wide. He  said Fairbanks  North Star                                                               
Borough sees powers  as area wide or at least  that a city within                                                               
a borough can be more restrictive  than the borough, but not less                                                               
restrictive with  respect to commercial facilities.  He explained                                                               
that the  argument for  the area wide  consideration is  that the                                                               
borough  would  be the  entity  exercising  the zoning  authority                                                               
which  really  goes hand-in-hand  with  the  regulation of  time,                                                               
place,  manner,   and  even  the  number   of  marijuana  related                                                               
businesses contemplated by the initiative.                                                                                      
                                                                                                                                
4:14:01 PM                                                                                                                    
AMY  MEAD,  Municipal  Attorney,  City  and  Borough  of  Juneau,                                                               
Juneau,  Alaska, explained  that she  was  part of  the group  of                                                               
municipal  attorneys  who  worked  with  Representative  Tilton's                                                               
office  on HB  75. She  declared  that she  supports the  current                                                               
version  of  HB 75.  She  asserted  that  HB  75 focuses  on  the                                                               
immediate needs of the municipalities  that are going to be faced                                                               
with  the   responsibility  of   regulating  the   new  marijuana                                                               
business.                                                                                                                       
                                                                                                                                
MS.  MEAD  set forth  that  the  bill  provides a  definition  of                                                               
"assisting," fixes  the issue  with the  Administrative Procedure                                                               
Act,  allows local  communities to  impose criminal  sanctions in                                                               
addition  to  civil  sanctions   for  time,  place,  manner  code                                                               
violations  which is  currently  done  with alcohol  regulations,                                                               
provides a  registration protest  process for  the municipalities                                                               
which is  very much  like the liquor  license protest  process in                                                               
Title 4, and provides a bright-line plant limit for dwellings.                                                                  
                                                                                                                                
She asserted  that recognizing and regulating  marijuana clubs as                                                               
a  category of  establishment is  very important  and noted  that                                                               
consistency is  needed with the  state regulating all  aspects of                                                               
the marijuana industry. She said  that she cannot say whether the                                                               
City  and Borough  of  Juneau Assembly  will  choose to  prohibit                                                               
marijuana  clubs or  any other  of the  marijuana establishments,                                                               
but pointed out  the possibility where the  city's million summer                                                               
visitors  have  no  place  to  legally  consume  their  marijuana                                                               
purchases. She  detailed that  without including  marijuana clubs                                                               
as a type of establishment  subject to state regulation, the city                                                               
would  be   forced  to   try  and  regulate   the  one   type  of                                                               
establishment   separately,  an   inconsistency  that   would  be                                                               
difficult to regulate.                                                                                                          
                                                                                                                                
MS. MEAD  summarized that HB  75 is  a tightly focused  bill that                                                               
gives the  City and Borough of  Juneau the needed tools  that are                                                               
consistent with the intent of the initiative.                                                                                   
                                                                                                                                
4:16:34 PM                                                                                                                    
DENNIS  WHEELER, Municipal  Attorney, Municipality  of Anchorage,                                                               
Anchorage, Alaska, said HB 75 allows  a city such as Anchorage to                                                               
retain  home-rule powers  and be  allowed  to figure  out how  to                                                               
manage  marijuana establishments.  He  noted that  HB 75  mirrors                                                               
alcohol  provisions  in  Title  4  and  allows  marijuana  to  be                                                               
regulated like alcohol.                                                                                                         
                                                                                                                                
4:18:34 PM                                                                                                                    
BROOKS CHANDLER,  Attorney, Anchorage,  Alaska, revealed  that he                                                               
represents a number of municipalities  and noted his appreciation                                                               
that input from  municipal attorneys was sought for  the bill. He                                                               
stated that  he liked HB  75, but asked that  additional language                                                               
be added to Section 2 regarding  the 24 plant limit. He specified                                                               
that  the five  words  that  would be  added  to  Section 2  are,                                                               
"unless otherwise  provided by ordinance," right  after the words                                                               
"except that."  He said the added  language allows municipalities                                                               
the flexibility  to adapt  plant limits outside  of the  24 plant                                                               
default limit. He specified that  issues related to dwelling unit                                                               
size,  lot size,  and  a number  of  other zoning  considerations                                                               
might not make 24 plants an appropriate outcome in every city.                                                                  
                                                                                                                                
4:21:47 PM                                                                                                                    
KATHIE  WASSERMAN, Executive  Director, Alaska  Municipal League,                                                               
Juneau, Alaska, appreciated that  municipalities were involved in                                                               
the bill. She declared that  the Alaska Municipal League supports                                                               
HB 75.                                                                                                                          
                                                                                                                                
4:23:17 PM                                                                                                                    
JAMES BARRETT, representing himself,  Juneau, Alaska, stated that                                                               
the marijuana club option is  a great option for Juneau's tourism                                                               
industry.  He said  marijuana  clubs do  not apply  to  a lot  of                                                               
Alaska, but  the bill  gives Juneau the  ability to  move forward                                                               
and create regulations with the guidelines issued by the state.                                                                 
                                                                                                                                
4:24:34 PM                                                                                                                    
CHAIR BISHOP announced that HB 75 would be held in committee.                                                                   
                                                                                                                                
4:24:43 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Bishop adjourned the Senate  Community and Regional Affairs                                                               
Standing Committee hearing at 4:24 p.m.                                                                                         

Document Name Date/Time Subjects
CSHB 75 Cole Legal Memo.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Fiscal Note.PDF SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Legal memo Administrative Procedures Act.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Legal Memo Cap on Plants.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Legal Memo Conceptual Amendment Marijuana Clubs.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Legal Memo Criminal Penalties.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Legal Memo Equal Protection.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Legal Memo Revocation of Marijuana Establishment's Registration.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Supporting, AML.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Supporting, MOA.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Supporting, MPP.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 VersionUA.PDF SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB75 Explanation of Changes, U.Aversion.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB75(JUD)am Sectional Analysis versionUA.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
HB 146 Explanation of Changes made in (H)CRA.doc SCRA 4/7/2015 3:30:00 PM
HB 146
HB 146 Fiscal Note.pdf SCRA 4/7/2015 3:30:00 PM
HB 146
HB 146 Leg Research.pdf SCRA 4/7/2015 3:30:00 PM
HB 146
HB 146 Sectional.pdf SCRA 4/7/2015 3:30:00 PM
HB 146
HB 146 Sponsor Statement.doc SCRA 4/7/2015 3:30:00 PM
HB 146
HB 146 Support Documents.pdf SCRA 4/7/2015 3:30:00 PM
HB 146
CSHB 75 Sponsor Statement versionU A.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 146 version H.pdf SCRA 4/7/2015 3:30:00 PM
HB 146
CSHB 146 version H Resolution.pdf SCRA 4/7/2015 3:30:00 PM
HB 146
CSHB 75 Testimony Brooks Chandler.pdf SCRA 4/7/2015 3:30:00 PM
HB 75
CSHB 75 Testimony Hardenbrook FNSB.pdf SCRA 4/7/2015 3:30:00 PM
HB 75