02/20/2017 01:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB20 | |
| SB6 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 20 | TELECONFERENCED | |
| + | SB 6 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE JUDICIARY STANDING COMMITTEE
February 20, 2017
1:36 p.m.
MEMBERS PRESENT
Senator John Coghill, Chair
Senator Kevin Meyer
Senator Pete Kelly
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Mia Costello
COMMITTEE CALENDAR
SENATE BILL NO. 20
"An Act classifying U-47700 as a schedule IA controlled
substance; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 6
"An Act relating to industrial hemp; and relating to controlled
substances."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 20
SHORT TITLE: LIST U-47700 AS A CONTROLLED SUBSTANCE
SPONSOR(s): SENATOR(s) MEYER
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) HSS, JUD
02/08/17 (S) HSS AT 1:30 PM BUTROVICH 205
02/08/17 (S) Heard & Held
02/08/17 (S) MINUTE(HSS)
02/10/17 (S) HSS AT 1:30 PM BUTROVICH 205
02/10/17 (S) Moved CSSB 20(HSS) Out of Committee
02/10/17 (S) MINUTE(HSS)
02/13/17 (S) HSS RPT CS 5DP NEW TITLE
02/13/17 (S) DP: WILSON, BEGICH, VON IMHOF,
MICCICHE, GIESSEL
02/20/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 6
SHORT TITLE: INDUSTRIAL HEMP PRODUCTION
SPONSOR(s): SENATOR(s) HUGHES
01/09/17 (S) PREFILE RELEASED 1/9/17
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) RES, JUD
02/08/17 (S) RES AT 3:30 PM BUTROVICH 205
02/08/17 (S) Heard & Held
02/08/17 (S) MINUTE(RES)
02/13/17 (S) RES AT 3:30 PM BUTROVICH 205
02/13/17 (S) Heard & Held
02/13/17 (S) MINUTE(RES)
02/15/17 (S) RES AT 3:30 PM BUTROVICH 205
02/15/17 (S) Moved CSSB 6(RES) Out of Committee
02/15/17 (S) MINUTE(RES)
02/17/17 (S) RES RPT CS 5DP 1NR NEW TITLE
02/17/17 (S) DP: GIESSEL, HUGHES, COGHILL, VON
IMHOF, MEYER
02/17/17 (S) NR: STEDMAN
02/17/17 (S) FIN REFERRAL ADDED AFTER JUD
02/20/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CHRISTINE MARASIGAN, Staff
Senator Kevin Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 20 on behalf of the sponsor.
CAPTAIN MICHAEL DUXBURY
Support Services
Alaska State Troopers
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Provided information related to SB 20.
CAPTAIN DAN LOWDEN, Deputy Commander
Central Office
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Provided information related to SB 20.
KACI SCHROEDER, Assistant Attorney General
Criminal Division
Department of Law
POSITION STATEMENT: Answered questions related to SB 20.
JAY BUTLER, Chief Medical Officer
Division of Public Health
Department of Health and Social Services (DHSS)
Juneau, Alaska
POSITION STATEMENT: Described the outreach related to SB 20.
ORIN DYM, Manager
Scientific Crime Detection Laboratory
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 20.
SENATOR SHELLY HUGHES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 6.
BUDDY WHITT, Staff
Senator Shelly Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided a sectional
analysis for SB 6.
ROB CARTER, Manager
Plant Materials Center
Division of Agriculture
Department of Natural Resources (DNR)
Palmer, Alaska
POSITION STATEMENT: Answered questions about industrial hemp in
the context of SB 6.
ACTION NARRATIVE
1:36:17 PM
CHAIR JOHN COGHILL called the Senate Judiciary Standing
Committee meeting to order at 1:36 p.m. Present at the call to
order were Senators Wielechowski, Meyer, and Chair Coghill.
Senator Kelly arrived soon thereafter.
SB 20-LIST U-47700 AS A CONTROLLED SUBSTANCE
1:36:57 PM
CHAIR COGHILL announced the consideration of SB 20. [This is the
first hearing and CSSB 20(HSS) is before the committee.]
1:37:27 PM
SENATOR KEVIN MEYER, sponsor of SB 20, introduced the bill
speaking to the following sponsor statement:
SB 20 would update the State of Alaska controlled
substance list by adding two drugs. First, SB 20 would
classify U-47700, a synthetic opioid commonly known as
pink or U4, as a schedule IA controlled substance.
Secondly, SB 20 would add Tramadol, an opioid pain
medication available through prescription as a
schedule IVA controlled substance.
U-47700 was a research chemical created and patented
in the United States in the 1970s. It was never tested
on humans and was not manufactured for public
consumption. Drug labs in China now produce this drug
and sell it online to people who purchase it as an
inexpensive alternative to other drugs. This synthetic
opioid is eight times more potent than morphine and
according to the Drug Enforcement Administration (DEA)
it is the cause of 46 overdose deaths from 2015 to
2016. The State of Alaska Epidemiology Bulletin has
attributed U-47700 to three drug overdose deaths in
Alaska.
Tramadol was created by a German drug company in 1962.
Tested for over 15 years, it was approved for the
foreign market in 1977. Tramadol is widely prescribed
for pain relief and became available in the United
States in 1995. Because of its low dosage-
approximately one tenth the strength of morphine-
Tramadol was thought to be a benign pain reliever.
However, as prescriptions have risen in the United
States there are more and more reports of Tramadol
dependency, abuse, withdrawal, and stealing of this
prescription medication.
The DEA [Drug Enforcement Agency] temporarily
scheduled U-47700 as a schedule I controlled substance
in 2016. Tramadol was classified as a schedule IV
controlled substance in August of 2014. Should SB 20
pass, Alaska State Statutes will be up-to-date with
the federal scheduling of these two substances. This
bill will allow drug enforcement agencies to limit the
unlawful sale, use, purchase, possession, manufacture,
transport or delivery either drug in the State of
Alaska.
SENATOR MEYER related that Senator Giessel amended the bill in
the Senate Health and Social Services Committee, adding Tramadol
to the controlled substance list. He highlighted that the bill
is in keeping with the Governor's recent disaster declaration on
the opioid epidemic in Alaska.
CHAIR COGHILL listed the individuals available to answer
questions and then recognized Ms. Marasigan.
1:43:21 PM
CHRISTINE MARASIGAN, Staff, Senator Kevin Meyer, said the
Senator outlined that SB 20 adds the opioid U-47700, also known
as pink, and Tramadol to the controlled substances list. She
noted additional people available to answer questions.
1:38:59 PM
SENATOR KELLY joined the committee.
SENATOR WIELECHOWSKI asked if Tramadol would still be available
by prescription if the bill were to pass.
MS. MARISIGAN answered yes.
SENATOR WIELECHOWSKI asked if it would be a class C felony to
unlawfully possess Tramadol, if the bill were to pass.
MS. MARISIGAN answered yes.
SENATOR WIELECHOWSKI asked how that compares to other opioids
the legislature acted on in Senate Bill 91.
MS. MARISIGAN replied the classification for U-47700 would be
like other opioids, whereas Tramadol would have a lower
classification.
SENATOR WIELECHOWSKI expressed interest in receiving more
specific information on how these drugs would be ranked compared
to those addressed in Senate Bill 91.
CHAIR COGHILL asked if the penalty for unlawful possession of
controlled substances listed in AS 11.71.140(c) would be based
on dosage.
MS. MARISIGAN said that's her understanding but she would defer
to Kaci Schroder from the Department of Law.
CHAIR COGHILL asked if other states have added both U-47700 and
Tramadol to their controlled substance lists.
MS. MARISIGAN explained that, because it is so lethal, several
states placed U-47700 on emergency schedule before the Drug
Enforcement Agency placed it on a temporary schedule for 18
months. Once that time is up, the DEA will need to decide to
either extend the temporary schedule or pass the law to make it
a controlled substance. The Drug Enforcement Agency listed
Tramadol in 2014 on the recommendation of the Opioid Task Force.
When Tramadol was first introduced in the U.S. it didn't appear
to present a problem because the opioid dosage was so small.
However, as recently as 2010 some pharmacy reports indicate that
up to 16,000 people are adversely affected by this drug, and
other experts have said that the drug is being diverted.
CHAIR COGHILL asked to hear from the Alaska State Troopers on
that point.
1:48:10 PM
CAPTAIN MICHAEL DUXBURY, Support Services, Alaska State
Troopers, Department of Public Safety (DPS), Anchorage, Alaska,
stated that he is the supervisor for the Alaska Statewide Drug
Enforcement Agency. He reported that a significant amount of
Tramadol and other drugs are being sent to Western Alaska for
illegal use. A significant concern is that while the DEA has
scheduled the drug, it is at a dosage that makes it difficult to
impossible for local law enforcement to a federal case. Adding
the drug to the state schedule will give some ability to stem
the tide of abuse and diversion to Western Alaska and other
locations throughout the state.
SENATOR WIELECHOWSKI asked what the current penalty is for
illegally possessing Tramadol and if it would become a class A
misdemeanor if SB 20 were to pass.
CAPTAIN DUXBURY said he believes that is correct. Under current
law, possession without a prescription falls into a diverted
situation and there is little enforcement. Placing it on the
schedule will provide opportunity for some enforcement.
CHAIR COGHILL asked what the usual dose is for prescription use
as opposed to the dose for diversionary use.
CAPTAIN DUXBURY explained that when the drug is used for
diversionary purposes it is sold in bulk, not in a labeled
prescription bottle. He deferred the question about the dose of
an individual prescription to a medical professional.
CHAIR COGHILL asked Captain Lowden if he could answer.
1:52:05 PM
CAPTAIN DAN LOWDEN, Deputy Commander, Central Office, Department
of Public Safety (DPS), Anchorage, Alaska, said Captain Duxbury
is the expert and he has been deferring to him.
CHAIR COGHILL asked if increasing the penalty for illegal sale
of these two drugs based on volume would make it easier for law
enforcement.
CAPTAIN DUXBURY confirmed it would be easier.
CHAIR COGHILL said he'd ask the Department of Law to opine on
that, and noted that his staff had directed attention to the
appropriate statute.
SENATOR WIELECHOWSKI questioned why the fiscal notes from the
Department of Public Safety (DPS) and the Department of
Corrections (DOC) were zero instead of indeterminate. "Is the
assumption that we will not arrest anyone because of this?"
MS. MARASIGAN said the individual departments could address the
fiscal notes. Addressing the question about penalties based on
volume or quantity, she explained that distribution of more than
a gram or more than 25 tablets of a schedule IA drug is a class
C felony. Possession of any amount of a schedule IA controlled
substance is a class A misdemeanor.
SENATOR WIELECHOWSKI asked if it was her understanding that the
federal government would pick up the cost if somebody was
imprisoned under federal law.
MS. MARASIGAN deferred the question to the Department of Law.
CHAIR COGHILL suggested the Department of Law respond to the
last two questions.
1:55:15 PM
KACI SCHROEDER, Assistant Attorney General, Criminal Division,
Department of Law, introduced herself.
SENATOR WIELECHOWSKI asked why the fiscal notes from DPS and DOC
are zero rather than indeterminate; and if the federal
government would pay the costs of imprisonment if this were left
as a federal violation.
MS. SCHROEDER confirmed that if the federal government were to
decide to prosecute either substance, they would be responsible
for the costs of the prosecution and imprisonment. The issue
with putting these drugs on an Alaska schedule is that the state
must dedicate resources to control the substances. The advantage
is that the state would have control over enforcement.
CHAIR COGHILL asked if the state penalty is commensurate to the
federal penalty.
MS. SCHROEDER offered her understanding that federal penalties
have a broader range and are harsher than state penalties. "But
the state is closer to the ground and it has better enforcement
capabilities."
CHAIR COGHILL asked what insight she has about the fiscal note.
MS. SCHROEDER said the Department of Law submitted a zero fiscal
note because it doesn't anticipate asking for any additional
positions to prosecute these offenses.
CHAIR COGHILL asked Senator Wielechowski if he wanted more
specifics.
SENATOR WIELECHOWSKI asked for someone to explain what would
happen under existing law if someone was caught with Tramadol.
He assumed that the local police or a Trooper could arrest the
person and it would be up to the federal government to prosecute
using federal judicial resources and federal correction
facilities.
MS. SCHROEDER deferred to DPS to talk about the extent to which
they can enforce federal law but under current law the state
absolutely could not prosecute those offenses.
CHAIR COGHILL asked either Captain Duxbury or Captain Lowden to
talk about working with and taking on the responsibility of both
state and federal law.
CAPTAIN DUXBURY said the Department of Public Safety has a solid
relationship with the Drug Enforcement Agency, but these drugs
need to be placed on the state schedule of controlled
substances. The amount of the drug needed to make a federal case
is large compared to the small amount that can devastate the
lives of people in these small Alaskan villages. He noted that
they regularly use state statute to enforce drug laws and deter
folks from making money out of other people's misery and
weakness. He also discussed the problem that Alaska is a poly-
drug-use area.
CHAIR COGHILL said he hadn't really thought about how many drugs
will be added to each other, but if it's possible to identify
one drug more clearly than another it makes enforcement easier.
CAPTAIN DUXBURY said he agrees with the statement.
CHAIR COGHILL asked if law enforcement is alert to U-47700 and
if it can be readily identified.
CAPTAIN DUXBURY said it is readily available for purchase on the
internet and from several smoke shops. To date three deaths have
been attributed to U-4770. The Troopers and those they
collaborate with are working to keep children from experimenting
with pink and other drugs because they take away the ability for
youth to become productive members of society.
2:04:39 PM
CHAIR COGHILL said he understands that enforcement is more
difficult if the drug isn't specifically named.
CAPTAIN DUXBURY said pink is being marketed toward youth and
people with little money and he believes that the only way to
get a handle on the drug epidemic is through collaboration,
education, and legislation. He noted that pink doesn't have as
much potential for chemical change as Spice, but still "there
are several people that don't mind making their profit off of
other people's misery."
CHAIR COGHILL asked DR. Butler if he had anything to add
regarding communication.
JAY BUTLER, Chief Medical Officer, Division of Public Health,
Department of Health and Social Services (DHSS), stated that
part of the outreach has been to the clinical community to
ensure that people are aware that what may look like a
prescription opioid or heroin overdose may be something
different altogether. Also, some of the traditional drug tests
may not identify some of the newer agents. He mentioned the
deaths attributed to U-47700 statewide and nationally and opined
that the comparatively high number in Alaska is due to the fact
that Alaska has been more aggressive than other states in its
toxicologic testing through the state medical examiner's office.
Another factor is that users sometimes aren't aware that what
looks like a prescription opioid may be counterfeit. He provided
an example and said his office will continue to work with
colleagues in public safety and the Department of Law.
2:09:34 PM
CHAIR COGHILL asked Mr. Dym if there is a way for the police to
identify U-47700 without going through a long testing process.
ORIN DYM, Manager, Scientific Crime Detection Laboratory,
Department of Public Safety (DPS) said there is no field
instrument to test for U-47700, but the lab can turn controlled
substance analyses around in about 7 days. He added that the lab
can test for both U-47700 and Tramadol.
CHAIR COGHILL asked Captain Duxbury if law enforcement can
readily identify the drug.
MR. DYM replied a full analysis is necessary. In the only
instance that the lab analyzed U-4770 it was a counterfeit
tablet. The markings indicated it was oxycodone and the analysis
showed it was U-4770.
CHAIR COGHILL said he brought it up as a warning to the public.
"If they are willing to destroy your life, they're also willing
to take your money by foolery."
CAPTION DUXBURY said the other concern is that the mixture of
more powerful opioids with counterfeit drugs can be more potent
and potentially deadly.
2:14:02 PM
CHAIR COGHILL commented on the need for appropriate tools in
state law.
SENATOR MEYER opined that progress is being made on illegal drug
use but as long as there is demand there will be people willing
to make the product. He concluded that public education is
imperative in helping stop the demand and having laws in place
will keep some people from going into the business of supplying
opioids illegally.
2:17:05 PM
CHAIR COGHILL held SB 20 in committee for further consideration.
SB 6-INDUSTRIAL HEMP PRODUCTION
2:17:34 PM
CHAIR COGHILL announced the consideration of SB 6. [This is the
first hearing and CSSB 6(RES) is before the committee.] He
stated his intention is to hear the introduction, take questions
and hold the bill for further consideration to ensure that some
of the penalty provisions have been clarified.
2:18:37 PM
SENATOR SHELLY HUGHES, Alaska State Legislature, sponsor of SB
6, related that last spring several farmers in the Mat-Su area
contacted her office to express interest in legislation that
former Senator Johnny Ellis championed to define industrial hemp
as an agricultural product. This bill is a little different due
to new federal statutes. She noted that one of the parties who
expressed interest was former Matanuska-Susitna Borough Mayor
Larry DeVilbiss. The matter continued to be brought to her
attention at town hall meetings and when she had meetings with
constituents.
She explained that the legislation is a little different than
the bill former Senator Ellis introduced because some new
federal statutes and regulations now apply. She deferred
questions about that to her staff. She discussed the use of hemp
throughout the history of the U.S. and noted that some farmers
in Alaska are particularly interested in using hemp as feed for
livestock.
SENATOR HUGHES related that she typically works on innovative
technology such as unmanned aircraft and issues that look
forward, but in the case of industrial hemp it's a matter of
playing catch up because the U.S. halted growth in 1937. She
said the product that has been around for centuries and is
currently used in over 25,000 products. Some farmers in Alaska
are particularly interested in using industrial hemp for
livestock feed.
She described industrial hemp as one more economic opportunity
the state should allow for the agricultural community to try.
Many people believe it would grow well in Alaska.
SENATOR HUGHES said she found it reassuring to hear from the
Division of Agriculture that hemp is not planted the same way as
marijuana. The spacing between plants and rows is very different
for the two products so it would be quite easy for law
enforcement to tell if someone were growing the product for
purposes other than industrial hemp.
She summarized that SB 6 would remove hemp from the criminal
statutes and place it under the jurisdiction of the Division of
Agriculture. The bill is longer than the bill introduced last
year because it includes the new federal requirements for
registration. She deferred further introduction to her staff.
CHAIR COGHILL listed the individuals available to answer
questions.
2:24:18 PM
SENATOR MEYER asked if someone could grow a crop of industrial
hemp but sell it as marijuana.
SENATOR HUGHES opined there wouldn't be much recreational value
for industrial hemp because the THC content is below 0.3 percent
and the cutoff for hallucinogenic effects is 1 percent. She
deferred further explanation to Mr. Whitt.
CHAIR COGHILL asked Mr. Whitt to supplement the answer and then
take the committee through the bill in order of sections.
2:25:36 PM
BUDDY WHITT, Staff, Senator Shelly Hughes, sponsor of SB 6,
stated that the research he has shows that the USDA recognizes
industrial hemp as cannabis with no more than 1 percent THC. At
some point between 1 percent and 3 percent THC there is
potential for the unwanted side effects found in marijuana.
Federal law specifically defines hemp as having no more than 0.3
percent THC to clearly differentiate between the two products.
SENATOR MEYER summarized that hemp could be sold for
recreational purposes, but it would not give the desired buzz or
high.
MR. WHITT pointed out that, should the bill pass, registration
is required to grow hemp. Growing without registration would be
a violation and would bring penalties under Title 3. Also, if a
hemp crop tests higher than 0.3 percent THC, it is classified as
marijuana and the grower would be guilty of having an illegal
marijuana crop.
SENATOR MEYER asked the basis for the statement that hemp would
grow well in Alaska. "Is it based on the fact that it's a lot
like barley or ... have we actually done some testing?"
MR. WHITT related that a constituent sent the sponsor a clipping
from 1918 that reported that in the span of a few month hemp
planted in Palmer, Alaska grew more than four tall. He deferred
further explanation to Rob Carter.
2:29:21 PM
ROB CARTER, Manager of the Plant Materials Center, Division of
Agriculture, Department of Natural Resources (DNR), Palmer,
Alaska, informed the committee that industrial hemp was
successfully grown in an area north of the Mat-Su Valley in
1916. The long hours of sunlight and 100 plus growing days make
it likely that hemp would be successful in Alaska as a biomass.
From an agronomics standpoint it has a lot of potential,
especially for use as a forage crop to feed livestock.
2:31:28 PM
SENATOR MEYER asked if industrial hemp would be harvested like
barley or wheat.
MR. CARTER replied there are many ways to harvest hemp and the
harvest method would depend on the scale of the operation. Large
scale production in Canada is highly mechanized, but if an
individual is growing for the fiber industry they might cut the
plant with a sickle mower.
2:32:55 PM
SENATOR WIELECHOWSKI read the language on page 1, line 12, and
asked if there is some contemplation that an application can be
denied.
MR. WHITT answered yes; the Division of Agriculture would be
able to choose up to 15 growers to start in the pilot program.
He deferred to the division to explain how that number was
derived, but his belief is that would be a manageable number.
The program could be expanded in subsequent years.
CHAIR COGHILL asked Mr. Whitt to go through the sectional
analysis.
MR. WHITT read the following sectional analysis for SB 6:
Sec. 1 AS 03.05.078
(a) Industrial Hemp will be classified as an
agricultural crop in the state of Alaska.
(b) An individual who is registered with the state of
Alaska may produce industrial hemp.
(c) Those wishing to produce industrial hemp must
register with the Division of Agriculture with
information that must include but is not limited to:
name, address, and global positioning coordinates of
the area to be used for production.
MR. Whitt noted that provision is specifically included to
address the 2014 federal Farm Act.
(d) Registration is valid for one year and
registrants may renew on an annual basis.
(e) The Division of Agriculture shall assign
application, registration, or renewal fees necessary
to regulate the industrial hemp industry and shall
review those fee structures annually to ensure those
fees collected cover regulatory costs.
(f) The Division of Agriculture may issue a stop sale
order or issue a violation notice if someone is
producing industrial hemp without a current
registration.
(g)A person registered with the Division of
Agriculture may use any propagation method needed to
produce industrial hemp.
(h)The Division of Agriculture, a registered producer,
or any institution of higher education may import
and/or sell industrial hemp seeds.
(i)A person with a registration may retain hemp seeds
for the purpose of growing hemp in the future.
(j)A person registered with the Division of
Agriculture to produce industrial hemp may retain and
recondition hemp that tests between .3 percent and 1
percent THC on a dry weight basis, but industrial hemp
intended for consumption in any form cannot exceed a
.3 percent THC level.
(k) Division of Agriculture may create regulations
for approved shipping documentation for transporting
industrial hemp.
(l) Registered producers of industrial hemp must
retain record of sale for three years, including the
name and address of the person who received the
industrial hemp and the amount sold.
(m) Records in section (l) are to be made available
to the department during normal business hours and the
department must give three days' notice of inspection.
Sec. 2 AS 03.05.079
In keeping with federal law, this section adds
language regarding a pilot program for industrial
hemp, that the Division of Agriculture, institute of
higher education or a registered grower may
participate in the pilot program and the Division of
Agriculture may adopt regulations for this section.
Sec. 3 AS 03.05.100
The definition of industrial hemp, which meets the
definition is federal statute, is the plant Cannabis
Sativa L containing less that 0.3 percent delta-9
tetrahydrocannabinol (THC).
Sec. 4 AS 11.71.900
Amendment in statute to remove industrial hemp as
defined in AS 03.05.100 from the list of controlled
substances.
Sec. 5 AS 17.20.020
Food containing industrial hemp as defined in AS
03.05.100 is not considered adulterated.
Sec. 6 AS 17.38.900
Amendment is statute to further remove industrial hemp
as defined in AS 03.05.100 from marijuana definitions.
CHAIR COGHILL said the committee will be asking what activity
should have a criminal sanction and what activity is
appropriately sanctioned with a fine.
MR. WHITT read the existing AS 03.05.090(a) and (b) that talk
about penalties for violations under the Division of
Agriculture. He described potential changes to the bill: 1)
adding that the Division of Agriculture has regulatory authority
for the pilot program; 2) refine the language in subsection (j)
on page 2, lines 18-21, to protect a farmer from having to
destroy an entire crop.
2:45:55 PM
CHAIR COGHILL asked if the THC level is based on the genetic
strain or soil and water quality.
MR. CARTER explained that strains have been developed and
selected to maintain THC below 0.3 percent, but there hasn't
been much research in the past 70 years so it's unclear whether
environmental conditions may push a crop above that level. If a
crop did test higher than 0.3 percent, it could be blended with
a crop that was significantly below the threshold to ensure the
entire lot was in compliance.
CHAIR COGHILL asked if marijuana and hemp look and dry the same
and if this could open a new industry.
MR. CARTER replied hemp leaves are phenotypically like what is
grown in the recreational cannabis industry. He discounted the
idea that this could open a new industry because there are
plenty of legal products that could in turn be adulterated with
some other product. The hope and intent of the division is to
support the agricultural industry and he believes the farmers
are of a similar mindset.
SENATOR WIELECHOWSKI asked if there would be a tax on hemp other
than a corporate income tax.
SENATOR HUGHES said the bill removes hemp from the marijuana
statutes, so the tax does not apply. She said she isn't sure
about corporate taxes.
CHAIR COGHILL said it would depend on how the farmer organized
the business.
SENATOR WIELECHOWSKI suggested removing subsection (e) on page
2, lines 5-9, relating to fees since the fiscal notes are zero.
MR. WHITT said the language would allow the Division of
Agriculture to limit the number of growers, should there be
limited funds to keep the program going. The idea is to keep
from relying on unrestricted general funds.
SENATOR WIELECHOWSKI reviewed the fiscal note and pointed out it
anticipates 25 farms with 10 percent growth each year. He
emphasized that, despite the zero fiscal note, this program is
clearly going to cost money and the committee should know about
that. He also pointed out that if there are only 15 farms and
the state hires one person at a range 22 or 24 the fees will
jump astronomically and potentially put the industry out of
business.
SENATOR HUGHES said she appreciates the concern and would
entertain the idea of striking that provision if that is the
committee's will. The division is committed to this industry and
she believes it will do what it can to keep the costs down.
CHAIR COGHILL suggested the committee hear from the division
before making a decision and emphasized the need for truth in
implementation.
2:55:59 PM
CHAIR COGHILL held SB 6 in committee for further consideration.
2:56:10 PM
There being no further business to come before the committee,
Chair Coghill adjourned the Senate Judiciary Standing Committee
meeting at 2:56 p.m.