03/20/2017 01:30 PM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB6 | |
| SB55 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 6 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE JUDICIARY STANDING COMMITTEE
March 20, 2017
1:38 p.m.
MEMBERS PRESENT
Senator John Coghill, Chair
Senator Mia Costello
Senator Kevin Meyer
Senator Pete Kelly
Senator Bill Wielechowski
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 6
"An Act relating to industrial hemp; and relating to controlled
substances."
- MOVED CSSB 6(JUD) OUT OF COMMITTEE
SENATE BILL NO. 55
"An Act relating to criminal law and procedure; relating to
controlled substances; relating to sentencing; relating to the
period of probation; relating to revocation, termination,
suspension, cancellation, or restoration of a driver's license;
relating to parole; relating to the duties of the Department of
Corrections and the Department of Health and Social Services;
and providing for an effective date."
- MOVED CSSB 55(JUD) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
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)
02/20/17 (S) Heard & Held
02/20/17 (S) MINUTE(JUD)
02/22/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
02/22/17 (S) Heard & Held
02/22/17 (S) MINUTE(JUD)
03/13/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/13/17 (S) Heard & Held
03/13/17 (S) MINUTE(JUD)
03/20/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 55
SHORT TITLE: OMNIBUS CRIME/CORRECTIONS
SPONSOR(s): JUDICIARY
02/10/17 (S) READ THE FIRST TIME - REFERRALS
02/10/17 (S) JUD, FIN
02/15/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
02/15/17 (S) Heard & Held
02/15/17 (S) MINUTE(JUD)
03/15/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/15/17 (S) -- MEETING CANCELED --
03/17/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/17/17 (S) Scheduled but Not Heard
03/20/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JORDAN SHILLING, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the differences between version I
and version M of SB 6.
SARA CHAMBERS, Acting Director
Alcohol and Marijuana Control Board
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 6.
KACI SCHROEDER, Assistant Attorney General
Criminal Division
Department of Law (DOL)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 6.
BUDDY WHITT, Staff
Senator Shelly Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information related to SB 6 on
behalf of the sponsor.
FRANK TURNEY, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 6.
NANCY HILLSTRAND
Coal Point Seafoods
Kachemak, Alaska
POSITION STATEMENT: Testified in support of SB 6.
EMBER HAYNES, representing herself
Talkeetna, Alaska
POSITION STATEMENT: Testified in support of SB 6.
STEVE ALBERS, representing himself
Kenai, Alaska
POSITION STATEMENT: Provided information related to SB 6.
JACK BENNETT
Industrial Hemp Manufacturing, LLC
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 6.
JORDAN SHILLING, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the changes in version N of SB 55.
ACTION NARRATIVE
1:38:22 PM
CHAIR JOHN COGHILL called the Senate Judiciary Standing
Committee meeting to order at 1:38 p.m. Present at the call to
order were Senators Costello, Wielechowski, Kelly, Meyer, and
Chair Coghill.
SB 6-INDUSTRIAL HEMP PRODUCTION
1:38:59 PM
CHAIR COGHILL announced the consideration of SB 6 and solicited
a motion to adopt the proposed committee substitute (CS).
1:39:12 PM
SENATOR COSTELLO moved to adopt the work draft CS for SB 6,
version 30-LS0173\M, as the working document.
1:39:26 PM
CHAIR COGHILL objected for an explanation of the changes.
1:39:29 PM
JORDAN SHILLING, Staff, Senator John Coghill, reviewed the
following changes between version I and version M of SB 6:
Page 1, Lines 8 & 9:
Intent language added in section one of the bill. The
intention is for the legislature to reevaluate the
regulation of industrial hemp in seven years.
The sunset dates on the previous version have been
removed with the addition of this section.
Page 5, lines 24 & 25:
CBD [Cannabidiol] oils are not included in the
definitions of hashish or hashish oil in this
subsection.
Page 6, lines 9-14:
Language added to allowing the display of registration
on a mobile electronic device as a valid form of
registration for transportation of industrial hemp
under this section. Also, displaying proof of
registration on a mobile electronic device does not
constitute consent for a peace officer's access to
other contents on the device.
Page 7, lines 17-30:
Requires the Department of Natural Resources to submit
a report by December 1, [each year until 2024] on the
regulation of industrial hemp in the state.
MR. SHILLING advised that the annual report must include the
following information: the total number of registered hemp
producers; the number of violations that have occurred; the
number of stop orders issued; the total amount of hemp grown
each year; and a summary of the economic effects of the pilot
program.
CHAIR COGHILL commented that the hope is to increase the
economic benefit.
1:43:16 PM
SENATOR WIELECHOWSKI noted the prohibition against using hemp
for hashish and read the definition of hashish in AS 11.71.900,
which says it is "the dried, compressed, resinous product of the
plant." He asked if that means that you can't dry or compress
hemp.
1:44:03 PM
At ease
1:44:36 PM
CHAIR COGHILL reconvened the meeting.
MR. SHILLING said he doesn't believe it would preclude someone
from drying hemp. For a product to be defined as hashish, it
would have to be dried, compressed, and most importantly the
resinous part of the plant. He suggested that Sara Chambers with
the Alcohol and Marijuana Control Board probably has a better
understanding of the implications of using that definition.
1:45:42 PM
SARA CHAMBERS, Acting Director, Alcohol and Marijuana Control
Board, Department of Commerce, Community and Economic
Development (DCCED), deferred the question to the Department of
Law.
1:46:53 PM
KACI SCHROEDER, Assistant Attorney General, Criminal Division,
Department of Law (DOL), concurred with Mr. Shilling's reading
of the definition. To be considered hashish, the product would
have to have to be the dried, compressed, and the resinous part
of the plant. "I don't think that in itself prohibits somebody
from drying hemp."
SENATOR WIELECHOWSKI asked for confirmation that adopting that
definition wouldn't inhibit the uses mentioned in the testimony.
CHAIR COGHILL offered his understanding that the plant under
this definition is a marijuana plant.
MS. SCHROEDER said that's correct.
CHAIR COGHILL added that this excludes one section so there
isn't any confusion between marijuana and hemp.
MS. SCHROEDER confirmed that under the provisions of SB 6,
marijuana is not hemp.
SENATOR WIELECHOWSKI asked if it's Cannabis.
MS. SCHROEDER said she didn't know if there is a statutory
definition of Cannabis.
SENATOR WIELECHOWSKI read the definition in AS 11.71.900(10).
(10) "hashish" means the dried, compressed, resinous
product of the plant (genus) Cannabis;
He said he wants the record to be clear so that nobody will be
arrested and sent to jail for drying or compressing hemp. He
added that his assumption is that it would need to be dried and
compressed for just about any purpose.
MS. SCHROEDER replied hashish has a specific meaning in the
criminal code and the way it's made is intended to concentrate
THC (Tetrahydrocannabinol) for a psychoactive effect. "I don't
think that we can get there with just making paper as you have
described."
SENATOR WIELECHOWSKI restated that the bill adopts the
definition of hashish from the criminal code, which is defined
as "the dried, compressed, resinous product of the plant (genus)
Cannabis." He said his reading is that drying or compressing
hemp potentially violates the law. He asked, "You're saying
otherwise as the representative of the Department of Law."
MS. SCHROEDER said she understands that reading but doesn't
believe that is the intent. "If you think that there needs to be
some clarifying language then we could think about doing that,
but I don't think anyone's going to be prosecuted for making
paper out of industrial hemp."
1:50:39 PM
SENATOR KELLY offered his perspective that hemp isn't a resinous
product.
SENATOR WIELECHOWSKI reread the definition and said he assumes
it means a dried and compressed and resinous product.
SENATOR KELLY said it's a fair point; the definition doesn't
really apply because hemp doesn't have a resinous product.
CHAIR COGHILL asked the sponsor if hemp is known as the same
thing as (genus) Cannabis.
1:52:18 PM
BUDDY WHITT, Staff, Senator Shelly Hughes, Alaska State
Legislature, sponsor of SB 6, said his reading of the statute is
that Cannabis would include hemp. The bill defines industrial
hemp as Cannabis with 0.3 percent THC or less.
SENATOR WIELECHOWSKI argued that the statute the bill adopts
says industrial hemp produced under a registration under this
section may not be used to produce hashish under the meaning
given in AS 11.71.900. The definition in AS 11.71.900(10) says:
(10) "hashish" means the dried, compressed, resinous
product of the plant (genus) Cannabis;
He asked if it's possible to have a dried, compressed, resinous
product of hemp.
MR. WHITT answered yes. The sponsor didn't want to exclude the
known non-psychoactive components that are used in commercial
CBD oil products. Once CBD oil was removed from the definition
of hashish, the sponsor was satisfied.
1:55:58 PM
CHAIR COGHILL opened public testimony on SB 6.
1:56:41 PM
FRANK TURNEY, representing himself, Fairbanks, Alaska, voiced
support for excluding CBD from the definition of hashish. He
also expressed hope that hemp would not be regulated to the
point that it's a barrier for farmers and people interested in
getting involved in the industry. He said he looks forward to
the time when the 25,000 products that can be made from hemp are
on the shelves and not as imports. He commented on the fact that
the federal government lists industrial hemp as a controlled
substance and voiced support for Alaska listing it as an
agricultural product. He raised questions about who would
participate in the pilot project and talked about the difficulty
of transporting hemp seed across state lines.
2:00:43 PM
NANCY HILLSTRAND, Coal Point Seafoods, Kachemak, Alaska, stated
support for SB 6. She uses a lot of corrugated paper at her
seafood plant and looks forward to the day it can be
manufactured in Alaska from industrial hemp. She listed the
benefits of industrial hemp: it is fast growing, improves soil,
is naturally resistant to pests, is carbon negative, is 10 times
stronger than cotton, the seeds are high in omega-3s, and it's a
complete protein. Alaska will benefit from passage of this bill,
she said.
2:02:23 PM
EMBER HAYNES, representing herself, Talkeetna, Alaska, expressed
appreciation that the current version of SB 6 removes the sunset
clause. She clarified that hemp is of the genus Cannabis Sativa
L. and that there are Cannabis plants that are grown for high
resin CBD and used to counter the effects of seizures and pain.
It is different than the CBD that is found in health food
stores. The latter is made from the entire hemp plant whereas
the high resin CBD is made from the flowers of the Cannabis
plant. She asked for assurance that the language in the bill
wouldn't cause questions regarding hemp seeds that are non-
viable, and expressed hope that the pilot program would allow
people with small acreage to grow industrial hemp for their
livestock and personal use.
2:05:53 PM
STEVE ALBERS, representing himself, said he serves on the board
of the Kenai Soil & Water Conservation District but isn't
speaking for the board. He opined that allowing hemp production
as an agricultural product will benefit the state in countless
ways. He mentioned remediation for the oil industry and forage
for livestock. It has the potential to be a self-sustaining
industry that will benefit other industries throughout the
state. He opined that the Division of Agriculture is best suited
to provide regulation and he doesn't anticipate that violations
will be a problem. He is pleased there is such open transparency
about the product. It is an industry that has the potential to
be beneficial as soon as the plants are in the ground.
2:09:15 PM
JACK BENNETT, Industrial Hemp Manufacturing, LLC, Anchorage,
Alaska, testified in support of SB 6. He said this LLC has
enough equipment to process 40 million pounds of industrial hemp
annually. He mentioned doing business with oil companies
worldwide, a 7-year contract to sell hemp for oil reclamation
technology, and selling fiber to the automotive industry to
illustrate the versatility of industrial hemp. He opined that
industrial hemp will revitalize the farming industry in Alaska
and voiced support for the Division of Agriculture being the
regulating agency. He advised that there are grants available to
fund manufacturing of industrial hemp products.
2:12:59 PM
CHAIR COGHILL closed public testimony on SB 6.
SENATOR COSTELLO directed attention to the language on page 7,
line 18; it mandates a written report to the legislature on an
annual basis. She suggested either striking the word "written"
or specifying the report be in electronic format.
CHAIR COGHILL stated his preference not to amend the bill
because it would slow its progress.
SENATOR COSTELLO said the sponsor heard her comment and
suggestion.
2:16:08 PM
SENATOR COSTELLO moved to report the CS for SB 6 from committee
with individual recommendations and attached fiscal note(s).
2:16:52 PM
CHAIR COGHILL found no objection and announced that CSSB 6(JUD)
is reported from the Senate Judiciary Standing Committee.
2:17:01 PM
At ease
SB 55-OMNIBUS CRIME/CORRECTIONS
2:19:18 PM
CHAIR COGHILL reconvened the meeting and announced the
consideration of SB 55. He noted that this is the second hearing
and there is a proposed committee substitute (CS).
2:19:50 PM
SENATOR COSTELLO moved to adopt the work draft CS for SB 55,
version 30-LS0119\N, as the working document.
2:20:01 PM
CHAIR COGHILL objected for an explanation of the changes.
2:20:18 PM
JORDAN SHILLING, Staff, Senator John Coghill, Alaska State
Legislature, explained that since the last hearing several
agencies offered technical changes to SB 55. He clarified that
the amendments are intended to smooth out some of the
implementation issues and drafting errors; they are not
recommendations from the Alaska Criminal Justice Commission
("Commission").
MR. SHILLING directed attention to Section 4, which amends the
misdemeanor drug possession statute. He explained that Senate
Bill 91 reduced simple possession of a controlled substance to a
class A misdemeanor, but it failed to make all forms of
possession a misdemeanor. For example, it did not repeal the
statute that makes it a felony to recklessly possess drugs
around schools or on a school bus or near a youth center. This
corrects the oversight and references the two additional forms
of felony possession.
SENATOR WIELECHOWSKI asked what the penalty is for possession of
hashish.
MR. SHILLING replied hashish is a schedule IIIA controlled
substance and possession would be a class A misdemeanor. The
distribution and manufacture are both felonies. He deferred to
the Department of Law any discussion about whether the agency is
pursuing prosecutions since that conflicts with the voter
initiative and the language in Title 17.
MR. SHILLING directed attention to Section 7, which aligns the
restitution requirements for suspended entry of judgment (SEJ)
and suspended imposition of sentence (SIS). He explained that
current statute says that the order to pay restitution in a SIS
is not discharged once the requirements of the SIS are
completed. It was an oversight that the suspended entry of
judgment statute that was created in Senate Bill 91 did not make
a similar stipulation. Section 7 corrects the oversight and
clarifies that the order for restitution is not discharged once
the SEJ proceeding is dismissed.
[Section 8 Clarifies that imprisonment may not be imposed in a
Suspended Entry of Judgement.]
Section 9 clarifies that a person who has successfully completed
probation and the requirements of a Suspended Entry of Judgment
is not convicted of a crime. Again, the SEJ is supposed to
largely mirror the SIS, with a few differences. One of the major
differences between the two is that SEJ was not intended to
appear in CourtView. The notion was to allow an individual to
legally, factually say on an employee application that they have
not been convicted. He said there's been some question about
that and this CS clarifies that an individual whose proceeding
has been discharged under an SEJ has not been convicted of a
crime.
MR. SHILLING said Sections 12 and 13 are statutes that require
certain information to be given to the respondent of a
protective order. This includes the potential penalties for
violating the protective order. That is a class A misdemeanor
and the penalty is up to a year in prison and the maximum fine
is $25,000. It is an oversight that the form the respondent is
given still says the maximum fine is $10,000. Senate Bill 91 was
amended on the House floor increasing the maximum penalty for a
class A misdemeanor from $10,000 to $25,000.
He opined that the implications of that floor amendment on other
parts of the statute weren't analyzed at the time. This
important cleanup item allows the respondent to know that they
could be fined up to $25,000 if they violate the protective
order.
MR. SHILLING advised that Section 16 adds to the list in statute
the persons under age 21 who may be referred to and accepted in
the Department of Health and Social Services Alcohol Safety
Action Program (ASAP). These two Title 4 references should have
been listed in the statute after Senate Bill 65 passed last
year. They were overlooked - probably because the two bills
passed at the same time, and this corrects the omission.
MR. SHILLING explained that Section 17 deletes a statute that
was inadvertently repealed in the last CS. This corrects that
error.
2:28:51 PM
CHAIR COGHILL listed the individuals available to answer
questions and asked if the committee was comfortable moving the
bill.
SENATOR MEYER asked about the fiscal impact of these changes and
noted that he didn't have a copy of the fiscal note.
MR. SHILLING said the fiscal note isn't in members' packets, but
the general understanding is that the changes will not increase
the fiscal impact on the Department of Corrections (DOC).
CHAIR COGHILL asked Senator Meyer if he wanted to wait on a
fiscal note before moving the bill.
SENATOR MEYER answered no.
MR. SHILLING advised that the next committee of referral is the
Finance Committee.
2:30:20 PM
SENATOR COSTELLO moved to report the CS for SB 55, version 30-
LS0119\N, from committee with individual recommendations and
attached fiscal note(s).
2:30:35 PM
CHAIR COGHILL removed his objection to adopting the CS and
announced that CSSB 55(JUD) is reported from the Senate
Judiciary Standing Committee.
2:30:50 PM
There being no further business to come before the committee,
Chair Coghill adjourned the Senate Judiciary Standing Committee
meeting at 2:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS for SB 6 - Version M.pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| CS for SB 55 - Version N.pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 55 |
| SB 6 - Explanation of Changes (I to M).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| SB 6 - Fiscal Note (DNR).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| SB 6 - Sectional Analysis (ver. M).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 6 |
| SB 55 - Summary of Changes (ver. D to ver. N).pdf |
SJUD 3/20/2017 1:30:00 PM |
SB 55 |