Legislature(2017 - 2018)SENATE FINANCE 532

04/24/2018 01:30 PM FINANCE

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Audio Topic
02:06:58 PM Start
02:08:10 PM SB128
02:28:15 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 2:00 p.m. --
+ HB 233 EXTEND EDUCATION TAX CREDITS TELECONFERENCED
<Bill Hearing Canceled>
+ HB 304 MICROLOAN REVOLVING FUND & LOANS; REPORT TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 128 MARIJUANA EDU/TREATMENT FUND/PROGRAM TELECONFERENCED
Moved CSSB 128(FIN) Out of Committee
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 24, 2018                                                                                           
                          2:06 p.m.                                                                                             
                                                                                                                                
2:06:58 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 2:06 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Juli Lucky, Staff, Senator Anna MacKinnon; Senator Cathy                                                                        
Giessel, Sponsor; Jill Lewis, Deputy Director, Division of                                                                      
Public Health, Department of Health and Social Services.                                                                        
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 128    MARIJUANA EDU/TREATMENT FUND/PROGRAM                                                                                  
                                                                                                                                
          CSSB 128(FIN)  was REPORTED out of  committee with                                                                    
          a  "do pass"  recommendation and  with two  fiscal                                                                    
          impact  notes from  the Department  of Health  and                                                                    
          Social Services.                                                                                                      
                                                                                                                                
SENATE BILL NO. 128                                                                                                           
                                                                                                                                
     "An  Act  establishing   the  marijuana  education  and                                                                    
     treatment  fund;  and relating  to  the  duties of  the                                                                    
     Department of Health and  Social Services to administer                                                                    
     a comprehensive  marijuana use education  and treatment                                                                    
     program."                                                                                                                  
Co-Chair  MacKinnon indicated  that  SB  128 was  previously                                                                    
heard in committee on March 1, 2018 and March 2, 2018.                                                                          
                                                                                                                                
2:08:10 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  MOVED to  ADOPT the  committee substitute                                                                    
for SB 128, Work Draft 30-LS1069\R (Martin, 4/23/18).                                                                           
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
JULI  LUCKY, STAFF,  SENATOR ANNA  MACKINNON, discussed  the                                                                    
one change in the committee  substitute (CS) on page 1, line                                                                    
13.  She recounted  that concerns  were expressed  regarding                                                                    
the  change to  the percentage  rate from  25 percent  to 35                                                                    
percent of  the taxes received  [on the sale  of marijuana].                                                                    
The CS returned  the percentage rate to 25  percent that was                                                                    
contained in the original version  of the bill. She reminded                                                                    
the committee  that 50 percent  of the taxes  were currently                                                                    
distributed into the Recidivism  Reduction Fund and the bill                                                                    
used 25 percent of the remainder of the tax collected.                                                                          
                                                                                                                                
2:09:23 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
further  OBJECTION, the  proposed  committee substitute  was                                                                    
adopted.                                                                                                                        
                                                                                                                                
Ms. Lucky  announced that there  was not a new  fiscal note,                                                                    
but there was a replacement fiscal note forthcoming.                                                                            
                                                                                                                                
2:10:15 PM                                                                                                                    
                                                                                                                                
SENATOR  CATHY GIESSEL,  SPONSOR, voiced  that she  supports                                                                    
the committee substitute.                                                                                                       
                                                                                                                                
Co-Chair MacKinnon requested a brief overview of the bill.                                                                      
                                                                                                                                
Senator Giessel  explained that  the state  received revenue                                                                    
from the tax on the  commercialization of marijuana of which                                                                    
50  percent was  designated for  recidivism with  50 percent                                                                    
remaining.  The Division  of  Public  Health, Department  of                                                                    
Health and Social Services  (DHSS) recognized that education                                                                    
and  treatment  were   necessary,  in  particular  educating                                                                    
children  on   the  "dangers  of  marijuana   and  its  side                                                                    
effects." She  indicated that the  bill originated  with the                                                                    
administration.  The department  suggested that  some amount                                                                    
of the 50  percent of the proceeds should  fund an education                                                                    
and  treatment  fund.  The  predominate  amount  of  the  25                                                                    
percent  would  be  directed to  afterschool  programs  that                                                                    
"most effectively  communicate with children."  In addition,                                                                    
the  program  would  provide   clinicians  in  school  based                                                                    
clinics information to share with the students.                                                                                 
                                                                                                                                
Senator Micciche  recounted that the bill's  intent was that                                                                    
the funds would not remain  with DHSS, but the program would                                                                    
be carried out  via a grant or contract  to other providers.                                                                    
Senator Giessel  replied in  the affirmative.  She clarified                                                                    
that  the  Division of  Public  Health  managed the  tobacco                                                                    
prevention  program,  and  the  proposed  program  would  be                                                                    
managed similarly.  The grant money would  be distributed to                                                                    
multiple  organizations. She  hoped  many rural  communities                                                                    
would benefit.                                                                                                                  
                                                                                                                                
2:12:57 PM                                                                                                                    
                                                                                                                                
Senator  Stevens supported  the  legislation. He  questioned                                                                    
whether the  Department of  Education and  Early Development                                                                    
(DEED) and school districts would  be involved and work with                                                                    
DHSS on  the program. He  wondered whether the  grants would                                                                    
be available  to school  districts. Senator  Giessel relayed                                                                    
that  the suggestion  was made  in the  other body.  She was                                                                    
informed that DEED  would prefer that DHSS  manage the funds                                                                    
in the  form of  grants. Schools  would support  the program                                                                    
through the  afterschool aspect of the  program occurring in                                                                    
schools. Senator Stevens  asked whether individual districts                                                                    
and schools  would be able  to apply for the  grants through                                                                    
the  program. Senator  Giessel believed  that  would be  the                                                                    
case but deferred the answer the division.                                                                                      
                                                                                                                                
2:14:39 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
2:15:08 PM                                                                                                                    
                                                                                                                                
JILL  LEWIS, DEPUTY  DIRECTOR,  DIVISION  OF PUBLIC  HEALTH,                                                                    
DEPARTMENT  OF HEALTH  AND  SOCIAL  SERVICES, addressed  the                                                                    
forthcoming  fiscal  note. She  reported  that  half of  the                                                                    
amount from the 25 percent  would be directed to afterschool                                                                    
programs. The  remainder would be distributed  for the other                                                                    
mandatory elements  in the bill.  She listed other  areas of                                                                    
funding  distribution:  community health  grants,  workforce                                                                    
development, survey monitoring, and treatment aspects.                                                                          
                                                                                                                                
Senator Stevens  had no objection  to the program.  He asked                                                                    
whether the  program could  incorporate working  with school                                                                    
districts. Ms.  Lewis replied in the  affirmative. She noted                                                                    
that  the   community  health   grant  funding   included  a                                                                    
component that leveraged existing  programs and would add on                                                                    
modules appropriate  for marijuana prevention  and education                                                                    
for  school  districts.  The department  would  develop  the                                                                    
educational  materials  and  share the  information  through                                                                    
grants to  existing applicable  programs. The  schools would                                                                    
be able to participate in that aspect in the program.                                                                           
                                                                                                                                
2:17:25 PM                                                                                                                    
                                                                                                                                
Senator Stevens asked for an  explanation of how the tobacco                                                                    
prevention  program  worked  in the  school  districts.  Ms.                                                                    
Lewis responded  that the tobacco program  worked with local                                                                    
grantees  spread  throughout  the  state  who  work  with  a                                                                    
variety  of different  entities  in  their communities.  The                                                                    
grantees   worked  with   school  districts   on  cessation,                                                                    
prevention, and providing  related services. Senator Stevens                                                                    
thought that the program was  also attempting to reach young                                                                    
adults  and   older  adults.  Ms.  Lewis   answered  in  the                                                                    
affirmative,  but qualified  that the  primary focus  of the                                                                    
fund  was  to  address  youth  prevention.  She  pointed  to                                                                    
educational materials and treatment options.                                                                                    
                                                                                                                                
Vice-Chair  Bishop asked  whether the  division carried  out                                                                    
the "hands-on  curriculum development." Ms.  Lewis responded                                                                    
that  the   division  developed   the  curriculum   and  the                                                                    
materials. The division would work  with DEED to ensure that                                                                    
the materials  were appropriate for school  districts. Vice-                                                                    
Chair Bishop  wanted to ensure that  the curriculum included                                                                    
information about the zero tolerance  policy mandated by the                                                                    
federal  government for  drug or  alcohol use  for most  job                                                                    
professions.                                                                                                                    
                                                                                                                                
2:20:43 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon requested  that  Ms.  Lewis explain  the                                                                    
forthcoming fiscal note.                                                                                                        
                                                                                                                                
Ms. Lewis  explained that only  the analysis  and allocation                                                                    
was changing for  the  current DHSS fiscal  impact note, but                                                                    
the "bottom-line" would remain the  same. The grant line for                                                                    
the afterschool  program would  increase. In  addition, $100                                                                    
thousand was allocated to the Personal Services line for                                                                        
one  new position  [public health  specialist]  to serve  as                                                                    
consultant  and  subject  matter   expert  in  planning  and                                                                    
implementing  programmatic evaluations,  health surveys  and                                                                    
assessments,  health education  materials,  and delivery  of                                                                    
the community program  services. She noted the  amount of $5                                                                    
thousand for  travel and $242.5  for contract  services that                                                                    
would provide  services such  as; production  of educational                                                                    
materials,  health  surveys  and  assessments,  and  program                                                                    
evaluation. She reported that the  Grant line allocation was                                                                    
$412.5  thousand  targeted  for  afterschool  programs  that                                                                    
increased  in  the out  years  to  $1.645 million  when  the                                                                    
program was  fully developed. She  turned to the  other DHSS                                                                    
fiscal  impact note  appropriated to  Behavioral Health  and                                                                    
allocated  to  Behavioral   Health  Treatment  and  Recovery                                                                    
Grants  that  reflected  the   treatment  component  of  the                                                                    
legislation  in  the  amount  of   $65  thousand  in  FY  19                                                                    
increasing to $190 thousand in the out years.                                                                                   
                                                                                                                                
Vice-Chair  Bishop  MOVED to  REPORT  CSSB  128(FIN) out  of                                                                    
committee with  individual recommendations  and accompanying                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
2:24:12 PM                                                                                                                    
                                                                                                                                
Senator Micciche  announced that he  served on the  board of                                                                    
an organization that might become a grantee of the program.                                                                     
                                                                                                                                
2:24:34 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  announced  that   no  new  revenue  was                                                                    
associated  with the  fiscal notes.  The funding  was solely                                                                    
derived  from  the portion  of  revenue  collected from  the                                                                    
taxation of marijuana sales.                                                                                                    
                                                                                                                                
CSSB  128(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation  and with two fiscal  impact notes from                                                                    
the Department of Health and Social Services.                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:28:15 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:28 p.m.                                                                                          

Document Name Date/Time Subjects
SB128 SCS FIN work draft version v. R.pdf SFIN 4/24/2018 1:30:00 PM
SB 128