Legislature(2015 - 2016)BELTZ 105 (TSBldg)

03/12/2015 01:30 PM LABOR & COMMERCE

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Audio Topic
01:30:35 PM Start
01:32:35 PM Confirmation Hearings:
01:55:35 PM SB53
02:03:39 PM SB39
02:19:05 PM SB60
02:50:45 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Board and Commission Appointees for: TELECONFERENCED
Board of Public Accountancy
Alcohol Beverage Control Board
Big Game Commercial Services Board
Fisherman's Advisory Council
Alaska Labor Relations Agency
Real Estate Commission
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 53 ADVANCED PRACTICE REGISTERED NURSES
Moved SB 53 Out of Committee
= SB 39 REPEAL FILM PRODUCTION TAX CREDIT
Moved CSSB 39(L&C) Out of Committee
= SB 60 ESTABLISH MARIJUANA CONTROL BOARD
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 12, 2015                                                                                         
                           1:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Johnny Ellis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS:                                                                                                          
                                                                                                                                
     Alcoholic Beverage Control Board                                                                                         
          Ellen Ganley                                                                                                          
                                                                                                                                
     - CONFIRMATION ADVANCED on 4/7/15                                                                                          
                                                                                                                                
     Big Game Commercial Services Board                                                                                       
          James David Jones                                                                                                     
          Kelly Vrem                                                                                                            
                                                                                                                                
     - CONFIRMATIONS ADVANCED on 4/7/15                                                                                         
                                                                                                                                
     Alaska Labor Relations Agency                                                                                            
          Tyler Andrews                                                                                                         
                                                                                                                                
     - CONFIRMATIONS ADVANCED on 4/7/15                                                                                         
                                                                                                                                
     Real Estate Commission                                                                                                   
          Traci Barickman                                                                                                       
          Marianne Burke                                                                                                        
          PeggyAnn McConnochie                                                                                                  
                                                                                                                                
     - CONFIRMATIONS ADVANCED on 4/7/15                                                                                         
                                                                                                                                
     Alaska State Board of Public Accountancy                                                                                 
          Andre Horton                                                                                                          
                                                                                                                                
     - CONFIRMATION ADVANCED on 4/7/15                                                                                          
                                                                                                                                
SENATE BILL NO. 53                                                                                                              
"An  Act  relating  to   advanced  practice  registered  nursing;                                                               
relating to certified direct- entry  midwifery; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED  SB 53 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 39                                                                                                              
"An Act repealing  the film production tax  credit; providing for                                                               
an effective date by repealing the  effective dates of secs. 31 -                                                               
33, ch. 51, SLA 2012; and providing for an effective date."                                                                     
                                                                                                                                
     - MOVED  CSSB 39(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 60                                                                                                              
"An  Act establishing  the Marijuana  Control Board;  relating to                                                               
the powers  and duties of  the Marijuana Control  Board; relating                                                               
to the  appointment, removal, and  duties of the director  of the                                                               
Marijuana  Control  Board;  relating to  the  Alcoholic  Beverage                                                               
Control Board; and providing for an effective date."                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  53                                                                                                                  
SHORT TITLE: ADVANCED PRACTICE REGISTERED NURSES                                                                                
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
                                                                                                                                
02/18/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/15       (S)       L&C, HSS                                                                                               
03/10/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/10/15       (S)       Heard & Held                                                                                           
03/10/15       (S)       MINUTE(L&C)                                                                                            
                                                                                                                                
BILL: SB  39                                                                                                                  
SHORT TITLE: REPEAL FILM PRODUCTION TAX CREDIT                                                                                  
SPONSOR(s): SENATOR(s) STOLTZE                                                                                                  
                                                                                                                                
02/04/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/15       (S)       L&C, FIN                                                                                               
02/19/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/19/15       (S)       Heard & Held                                                                                           
02/19/15       (S)       MINUTE(L&C)                                                                                            
02/24/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/24/15       (S)       Heard & Held                                                                                           
02/24/15       (S)       MINUTE(L&C)                                                                                            
02/26/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/26/15       (S)       Heard & Held                                                                                           
02/26/15       (S)       MINUTE(L&C)                                                                                            
03/03/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/03/15       (S)       Heard & Held                                                                                           
03/03/15       (S)       MINUTE(L&C)                                                                                            
03/05/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/05/15       (S)       -- MEETING CANCELED --                                                                                 
                                                                                                                                
BILL: SB  60                                                                                                                  
SHORT TITLE: ESTABLISH MARIJUANA CONTROL BOARD                                                                                  
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/23/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/15       (S)       L&C, STA, FIN                                                                                          
03/10/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/10/15       (S)       Heard & Held                                                                                           
03/10/15       (S)       MINUTE(L&C)                                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ELLEN GANLEY, Nominee                                                                                                           
Alcoholic Beverage Control (ABC) Board                                                                                          
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified as a nominee to the Alcoholic                                                                  
Beverage Control (ABC) Board.                                                                                                   
                                                                                                                                
JAMES DAVID JONES, Nominee                                                                                                      
Big Game Commercial Services Board                                                                                              
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as a nominee to the Big Game                                                                   
Commercial Services Board.                                                                                                      
                                                                                                                                
KELLY VREM, Nominee                                                                                                             
Big Game Commercial Services Board                                                                                              
Sutton, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as a nominee to the Big Game                                                                   
Commercial Services Board.                                                                                                      
                                                                                                                                
TYLER E. ANDREWS, Nominee                                                                                                       
Alaska Labor Relations Agency                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified as a nominee to  the Alaska Labor                                                             
Relations Agency.                                                                                                               
                                                                                                                                
LON NEEDLES, Nominee                                                                                                            
Alaska Labor Relations Agency                                                                                                   
Valdez, Alaska                                                                                                                  
POSITION STATEMENT:   Testified as a nominee to  the Alaska Labor                                                             
Relations Agency.                                                                                                               
                                                                                                                                
TRACI A. BARICKMAN, Nominee                                                                                                     
Real Estate Commission                                                                                                          
Sutton, Alaska                                                                                                                  
POSITION STATEMENT:   Testified as  a nominee to the  Real Estate                                                             
Commission.                                                                                                                     
                                                                                                                                
MARIANNE BURKE, Nominee                                                                                                         
Real Estate Commission                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified as  a nominee to the  Real Estate                                                             
Commission.                                                                                                                     
                                                                                                                                
PEGGYANN MCCONNOCHIE, Nominee                                                                                                   
Real Estate Commission                                                                                                          
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified as  a nominee to the  Real Estate                                                             
Commission.                                                                                                                     
                                                                                                                                
ANDRE HORTON, Nominee                                                                                                           
State Board of Public Accountancy                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Testified as  a nominee to the  State Board                                                             
of Public Accountancy.                                                                                                          
                                                                                                                                
SARAH CHAMBERS, Operations Manager                                                                                              
Division of Corporations, Business and Professional Licensing                                                                   
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED)                                                                                                                         
POSITION STATEMENT:   Provided information related  to the fiscal                                                             
note for SB 53                                                                                                                  
                                                                                                                                
WESTON EILER, Staff                                                                                                             
Senator Mia Costello                                                                                                            
POSITION STATEMENT:   Provided an explanation of  Amendment 1 for                                                             
SB 53.                                                                                                                          
                                                                                                                                
SENATOR BILL STOLTZE                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Sponsor of SB 39.                                                                                        
                                                                                                                                
KIM KOLE                                                                                                                        
Coalition for Responsible Cannabis Legislation                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 60.                                                                           
                                                                                                                                
BRUCE SCHULTE, Spokesperson                                                                                                     
Coalition for Responsible Cannabis Legislation                                                                                  
Anchorage, Alaska                                                                                                             
POSITION STATEMENT:  Testified in support of SB 60.                                                                           
                                                                                                                                
CYNTHIA FRANKLIN, Director                                                                                                      
Alcoholic Beverage Control (ABC) Board                                                                                          
Department  of  Commerce,   Community  and  Economic  Development                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided supporting information for SB 60.                                                               
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:35 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:30  p.m. Present at the  call to                                                               
order were Senators Ellis, Giessel,  and Chair Costello. Senators                                                               
Stevens and Meyer arrived soon thereafter.                                                                                      
                                                                                                                                
^Confirmation Hearings:                                                                                                         
                     CONFIRMATION HEARINGS:                                                                                 
                                                                                                                              
1:32:35 PM                                                                                                                  
CHAIR COSTELLO  announced the  first order  of business  would be                                                               
confirmation hearings  for Governor  appointments for  Boards and                                                               
Commissions.  She noted  that the  names  would be  held and  the                                                               
committee would advance all the names in a future meeting.                                                                      
                                                                                                                                
1:33:42 PM                                                                                                                    
At ease                                                                                                                         
                Alcoholic Beverage Control Board                                                                            
                                                                                                                                
1:35:18 PM                                                                                                                    
CHAIR  COSTELLO  reconvened  the meeting.  She  recognized  Ellen                                                               
Ganley as a  nominee for a public seat on  the Alcoholic Beverage                                                               
Control Board. She noted that this was one of five seats.                                                                       
                                                                                                                                
1:36:10 PM                                                                                                                    
ELLEN GANLEY,  Nominee, Alcoholic  Beverage Control  (ABC) Board,                                                               
said she has served  on the ABC Board for about  18 years and has                                                               
found  the  work  to  be  both  challenging  and  rewarding.  She                                                               
reported  that the  board spent  a  lot of  time on  the Title  4                                                               
rewrite over  the past  three years  and she's  proud of  the end                                                               
product.                                                                                                                        
                                                                                                                                
CHAIR  COSTELLO  discerned that  no  one  wanted to  testify  and                                                               
closed public testimony.                                                                                                        
                                                                                                                                
               Big Game Commercial Services Board                                                                           
                                                                                                                                
CHAIR COSTELLO  recognized James David  Jones as a nominee  for a                                                               
licensed  transporter seat  on the  Big Game  Commercial Services                                                               
Board. She noted there are nine seats on this board.                                                                            
                                                                                                                                
1:38:03 PM                                                                                                                    
JAMES DAVID  JONES, Nominee, Big Game  Commercial Services Board,                                                               
Kodiak, Alaska, stated  that this will be his second  term on the                                                               
board and  he looks forward to  continuing. He works as  a marine                                                               
transporter of big  game hunters and a sport fishing  guide so he                                                               
understands the guide industry from that perspective.                                                                           
                                                                                                                                
CHAIR  COSTELLO  discerned that  no  one  wanted to  testify  and                                                               
closed public testimony.                                                                                                        
                                                                                                                                
CHAIR COSTELLO recognized Kelly Vrem  as a nominee for a licensed                                                               
registered guide seat on the Big Game Commercial Services Board.                                                                
                                                                                                                                
1:40:04 PM                                                                                                                    
KELLY VREM, Nominee, Big Game  Commercial Services Board, Sutton,                                                               
Alaska, stated that this will be  his second term and he feels he                                                               
understands the process  a little better. He's  been a registered                                                               
guide since 1977 and wants to give back to the industry.                                                                        
                                                                                                                                
SENATOR GIESSEL asked what seat designation he would fill.                                                                      
                                                                                                                                
MR. VREM answered that he is the registered guide board member.                                                                 
                                                                                                                                
DAVE JONES  said it's  been a  pleasure to  serve with  Mr. Vrem;                                                               
he's very knowledgeable and dedicated.                                                                                          
                                                                                                                                
CHAIR  COSTELLO  found  no other  testifiers  and  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
                 Alaska Labor Relations Agency                                                                              
                                                                                                                                
CHAIR  COSTELLO recognized  Tyler Andrews  as a  nominee for  the                                                               
management  seat of  the Alaska  Labor Relations  Agency and  Lon                                                               
Needles  as a  nominee for  the labor  seat on  the Alaska  Labor                                                               
Relations Agency. She noted that this is a six-member board.                                                                    
                                                                                                                                
1:43:14 PM                                                                                                                    
TYLER  E.  ANDREWS,  Nominee,   Alaska  Labor  Relations  Agency,                                                               
Anchorage, Alaska,  stated that  he has been  on the  board since                                                               
2008 and  he welcomes the  idea of  serving for another  term. He                                                               
described the board as an objective and collaborative group.                                                                    
                                                                                                                                
CHAIR COSTELLO found no testifiers and closed public testimony.                                                                 
                                                                                                                                
1:44:21 PM                                                                                                                    
LON  NEEDLES, Nominee,  Alaska  Labor  Relations Agency,  Valdez,                                                               
Alaska, said this  will be his first term. He  believes he can be                                                               
fair and unbiased and looks forward to serving.                                                                                 
                                                                                                                                
CHAIR COSTELLO found no testifiers and closed public testimony.                                                                 
                                                                                                                                
                     Real Estate Commission                                                                                 
                                                                                                                                
CHAIR COSTELLO  recognized Traci Barickman  as a nominee  for the                                                               
3rd Judicial District broker seat  on the Real Estate Commission.                                                               
She  noted that  this  is  a seven-member  board.  She asked  Ms.                                                               
Barickman  to  tell  the  committee  why  she  is  interested  in                                                               
serving.                                                                                                                        
                                                                                                                                
1:45:30 PM                                                                                                                    
TRACI  A. BARICKMAN,  Nominee,  Real  Estate Commission,  Sutton,                                                               
Alaska,  said this  will  be her  first term,  but  she has  been                                                               
practicing real  estate for more than  20 years. She is  a broker                                                               
who supervises licensees as well as a trainer.                                                                                  
                                                                                                                                
CHAIR COSTELLO,  finding no questions  or public  comment, closed                                                               
public testimony.                                                                                                               
                                                                                                                                
1:47:03 PM                                                                                                                    
CHAIR  COSTELLO recognized  Marianne Burke  as a  nominee to  the                                                               
public seat on the Real Estate Commission.                                                                                      
                                                                                                                                
MARIANNE  BURKE,  Nominee,  Real  Estate  Commission,  Anchorage,                                                               
Alaska, said she  joined the commission in 2010. She  is proud of                                                               
the work that's been done since  then, but would like to continue                                                               
to serve to address a few  other matters related to protection of                                                               
the public and the industry.                                                                                                    
                                                                                                                                
CHAIR COSTELLO  found no questions  or public comment  and closed                                                               
public testimony.                                                                                                               
                                                                                                                                
1:48:57 PM                                                                                                                    
CHAIR COSTELLO  recognized PeggyAnn McConnochie as  a nominee for                                                               
the  broker  at  large  seat for  the  seven-member  Real  Estate                                                               
Commission.                                                                                                                     
                                                                                                                                
PEGGYANN  MCCONNOCHIE, Nominee,  Real Estate  Commission, Juneau,                                                               
Alaska, stated  that she is  a real  estate broker in  Juneau and                                                               
has been licensed  since 1982. She also teaches  real estate. She                                                               
has long  wanted to serve on  this commission because it's  a way                                                               
to give back to the public.                                                                                                     
                                                                                                                                
CHAIR COSTELLO  asked what she  sees as the  commission's largest                                                               
challenges moving forward.                                                                                                      
                                                                                                                                
MS. MCCONNOCHIE identified  the challenge of figuring  out how to                                                               
cover   the  costs   that  are   directly  attributable   to  the                                                               
commission, because no board or  commission should be a burden on                                                               
the state. She also identified  the challenge of getting ahead of                                                               
the issues  in the Lower  48 so  those problems don't  make their                                                               
way to Alaska.                                                                                                                  
                                                                                                                                
CHAIR  COSTELLO  found no  public  testifiers  and closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
            Alaska State Board of Public Accountancy                                                                        
                                                                                                                                
CHAIR COSTELLO recognized Andre Horton  as a nominee for a public                                                               
seat on the Alaska State Board of Public Accountancy.                                                                           
                                                                                                                                
1:53:20 PM                                                                                                                    
ANDRE  HORTON,  Nominee,  State   Board  of  Public  Accountancy,                                                               
Anchorage, Alaska, said this will be  his second term as a public                                                               
member. He has enjoyed his service.                                                                                             
                                                                                                                                
CHAIR  COSTELLO  found  no  public   comment  and  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
CHAIR COSTELLO  thanked the  nominees and  restated that  all the                                                               
names would be advanced from committee in a future meeting.                                                                     
                                                                                                                                
           SB  53-ADVANCED PRACTICE REGISTERED NURSES                                                                       
                                                                                                                                
1:55:35 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of SB  53. "An  Act                                                               
relating  to advanced  practice registered  nursing; relating  to                                                               
certified direct entry midwifery;  and providing for an effective                                                               
date."  She noted  that this  was the  second hearing  and public                                                               
testimony was closed.                                                                                                           
                                                                                                                                
SENATOR GIESSEL asked if Sarah  Chambers could discuss the fiscal                                                               
note.                                                                                                                           
                                                                                                                                
1:56:32 PM                                                                                                                    
SARAH  CHAMBERS, Operations  Manager,  Division of  Corporations,                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community and  Economic Development  (DCCED), told  the committee                                                               
that the division is reviewing the  fiscal note for SB 53 because                                                               
it appears  that some  of the programs  that will  have statutory                                                               
changes will  not need conforming regulation  changes. That would                                                               
reduce the size  of the fiscal note. She also  clarified that the                                                               
expenses that are  incurred by licensing boards are  borne by the                                                               
licensees as required under state law.                                                                                          
                                                                                                                                
CHAIR  COSTELLO asked  her to  review  the amount  of the  fiscal                                                               
note.                                                                                                                           
                                                                                                                                
MS. CHAMBERS  advised that  the current  fiscal note  is $15,000.                                                               
The estimated  cost of promulgating regulation  changes is $2,500                                                               
per program, and the division  and five licensing boards that are                                                               
affected.                                                                                                                       
                                                                                                                                
CHAIR  COSTELLO asked  if the  division will  absorb some  of the                                                               
costs.                                                                                                                          
                                                                                                                                
MS. CHAMBERS  replied each entity will  bear the cost of  its own                                                               
regulation changes  and the Board  of Nursing will bear  the cost                                                               
of the title changes.                                                                                                           
                                                                                                                                
2:00:11 PM                                                                                                                    
SENATOR GIESSEL  asked how  it would  affect the  cost if  one or                                                               
more of the boards could tag onto an ongoing regulatory project.                                                                
                                                                                                                                
MS. CHAMBERS  replied she would  encourage each of the  boards to                                                               
include  these changes  where they  have an  existing program  or                                                               
have one coming up in the  near future. That would bring the cost                                                               
to zero  and there  would be no  additional authority  needed for                                                               
those programs.  If the authority  is granted through  the fiscal                                                               
note and isn't used, then the  division would back it out through                                                               
the management plan.                                                                                                            
                                                                                                                                
CHAIR  COSTELLO  found  no  further  questions  and  solicited  a                                                               
motion.                                                                                                                         
                                                                                                                                
2:01:06 PM                                                                                                                    
SENATOR GIESSEL  motioned to report  SB 53,  labeled 29-LS0043\N,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  announced  that  without  objection,  SB  53  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
2:01:39 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
            SB  39-REPEAL FILM PRODUCTION TAX CREDIT                                                                        
                                                                                                                                
2:03:39 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   hearing  and   announced  the                                                               
consideration of  SB 39.  "An Act  repealing the  film production                                                               
tax  credit; providing  for an  effective date  by repealing  the                                                               
effective  dates  of  secs.  31  - 33,  ch.  51,  SLA  2012;  and                                                               
providing  for an  effective date."  She noted  that this  is the                                                               
fifth  hearing and  public testimony  is closed.  She stated  her                                                               
intention  to  address  a  technical  amendment,  take  committee                                                               
questions, and look to the will of the committee.                                                                               
                                                                                                                                
2:04:12 PM                                                                                                                    
SENATOR GIESSEL moved Amendment 1.                                                                                              
                                                                                                                                
                                                 29-LS0097\H.1                                                                  
                                                       Nauman                                                                   
                                                      3/12/15                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                  BY SENATOR COSTELLO                                                                 
     TO:  SB 39                                                                                                                 
                                                                                                                                
     Page 3, line 22:                                                                                                           
          Delete "three"                                                                                                        
          Insert "six"                                                                                                          
                                                                                                                                
CHAIR COSTELLO objected for discussion purposes.                                                                                
                                                                                                                                
SENATOR  ELLIS  expressed gratitude  for  the  technical fix  and                                                               
stated he had no objection.                                                                                                     
                                                                                                                                
2:05:10 PM                                                                                                                    
WESTON  EILER,   Staff,  Senator   Mia  Costello,   informed  the                                                               
committee  that Amendment  1 makes  a  technical correction  from                                                               
three [years] to  six [years] to conform to  existing statute and                                                               
avoid  a  regulatory  takings claim.  Case  law  stipulates  that                                                               
credits  a government  extends must  be honored  and any  sort of                                                               
preemptive taking or removal of  those credits could constitute a                                                               
violation.                                                                                                                      
                                                                                                                                
SENATOR COSTELLO asked the sponsor to comment on the amendment.                                                                 
                                                                                                                                
2:06:41 PM                                                                                                                    
SENATOR BILL STOLTZE,  sponsor of SB 39, described  the change as                                                               
substantive, adding that it was a legal and fiscal omission.                                                                    
                                                                                                                                
SENATOR MEYER asked if he supports the amendment.                                                                               
                                                                                                                                
SENATOR STOLTZE  answered yes and  thanked the committee  for its                                                               
due diligence.                                                                                                                  
                                                                                                                                
SENATOR  COSTELLO  found no  further  questions  and solicited  a                                                               
motion.                                                                                                                         
                                                                                                                                
2:08:30 PM                                                                                                                    
SENATOR GIESSEL  motioned to report  SB 39,  labeled 29-LS0097\H,                                                               
as amended,  from committee  with individual  recommendations and                                                               
attached fiscal note.                                                                                                           
                                                                                                                                
2:08:42 PM                                                                                                                    
SENATOR ELLIS  objected. He  stated that  he was  disappointed to                                                               
see the bill leave the committee,  but not surprised. He said the                                                               
goal  of  the  Alaska  film   and  production  incentives  is  to                                                               
diversify  the economy  and it's  worked. There  has been  steady                                                               
progress   in  that   direction  and   more  could   come.  Since                                                               
improvements to  the program have  taken effect, Alaska  hire has                                                               
increased.  He reminded  the members  that the  Alaskanization of                                                               
the  program  has  been successful  and  the  abbreviated  sunset                                                               
timeframe  and the  increased  audit  opportunities were  common-                                                               
sense improvements.  He reminded  the committee of  the testimony                                                               
it heard  about new  companies forming to  capture new  high tech                                                               
markets  in post-production  and editing.  Most importantly,  the                                                               
committee  heard from  young  people who  are  eager to  continue                                                               
their careers in Alaska.                                                                                                        
                                                                                                                                
SENATOR ELLIS  noted that  a young man  from Homer  contacted him                                                               
and begged him  not to approve the legislation  because he wanted                                                               
to stay  in Alaska to  develop his career telling  Alaska stories                                                               
in the state  he loves. Senator Ellis said he  told the young man                                                               
he'd do  his best and share  his thoughts with the  committee. He                                                               
said he's grateful  to each Alaskan who took the  time to testify                                                               
and  talk  about  the  jobs  and  opportunities  brought  by  the                                                               
production  incentives,  and  he   knows  that  scores  more  are                                                               
impacted.                                                                                                                       
                                                                                                                                
SENATOR ELLIS  stated that his  primary objection to  moving this                                                               
bill is that the governor  already made the difficult decision to                                                               
shut down the program. That was  not an unreasonable step to take                                                               
given the  state's fiscal circumstance,  but it didn't  mean that                                                               
Alaska  is permanently  closed to  the multi-billion  dollar film                                                               
production industry.  That is in  sharp contrast to SB  39, which                                                               
tells the  global multi-billion dollar film  industry that Alaska                                                               
is  permanently  closed  for   business.  That's  an  ill-advised                                                               
message  to  send  and  it  will  hurt  a  lot  of  small  Alaska                                                               
businesses.  It's  unfortunate and  doesn't  need  to happen.  He                                                               
suggested that  a better option  is to suspend the  program until                                                               
fiscal circumstances warrant revisiting the issue.                                                                              
                                                                                                                                
CHAIR COSTELLO  recognized that Senator  Ellis was the  author of                                                               
the  film tax  incentive program  and expressed  appreciation for                                                               
the work he's done. She noted  that Alaska has benefited from the                                                               
146  productions that  came to  the  state using  $38 million  in                                                               
credits of  the $200  million cap.  She opined  that it  would be                                                               
prudent for the  Senate Finance Committee to look  closely at the                                                               
differences  between  what  the  governor has  proposed  for  the                                                               
program versus what  this legislation seeks to  achieve, which is                                                               
to essentially take it off the books.                                                                                           
                                                                                                                                
2:14:27 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
2:15:19 PM                                                                                                                    
CHAIR COSTELLO  reconvened the hearing and  removed her objection                                                               
to Amendment 1. Finding no  further objection, she announced that                                                               
Amendment  1  is adopted  and  the  amended  bill is  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
SENATOR GIESSEL  restated the motion  to move SB 39,  as amended,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note.                                                                                                                    
                                                                                                                                
SENATOR ELLIS maintained his objection.                                                                                         
                                                                                                                                
A roll  call vote  was taken.  Senators Giessel,  Meyer, Stevens,                                                               
and Chair Costello  voted in favor of SB 39.  Senator Ellis voted                                                               
against  it. Therefore,  CSSB  39(L&C) was  reported  out of  the                                                               
Senate Labor and Commerce Standing Committee by a vote of 4:1.                                                                  
                                                                                                                                
2:16:45 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
            SB  60-ESTABLISH MARIJUANA CONTROL BOARD                                                                        
                                                                                                                                
2:19:05 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   hearing  and   announced  the                                                               
consideration  of  SB  60. "An  Act  establishing  the  Marijuana                                                               
Control  Board;  relating  to  the   powers  and  duties  of  the                                                               
Marijuana Control  Board; relating  to the  appointment, removal,                                                               
and  duties  of the  director  of  the Marijuana  Control  Board;                                                               
relating to  the Alcoholic Beverage Control  Board; and providing                                                               
for  an effective  date."  She  noted that  this  was the  second                                                               
hearing and opened public testimony.                                                                                            
                                                                                                                                
2:19:50 PM                                                                                                                    
KIM  KOLE,   Coalition  for  Responsible   Cannabis  Legislation,                                                               
Anchorage, Alaska, testified  in support of SB  60. She advocated                                                               
for having  two members from  the cannabis industry serve  on the                                                               
board because the  industry is so diversified that  no one person                                                               
can know all  aspects. She also stated support  for the staggered                                                               
appointment  schedule because  it  would  create consistency  and                                                               
momentum throughout the years.                                                                                                  
                                                                                                                                
2:21:34 PM                                                                                                                    
BRUCE SCHULTE,  Spokesperson, Coalition for  Responsible Cannabis                                                               
Legislation, Anchorage,  Alaska, testified  in support of  SB 60.                                                               
He  stated  agreement  with  the  previous  testimony  about  the                                                               
importance  of  having  two knowledgeable  people  on  the  board                                                               
representing the  cannabis industry. He also  suggested rewording                                                               
the language  on page 4,  lines 8-9,  to clarify that  the powers                                                               
and duties  of the  board relate  to the  commercial cultivation,                                                               
manufacture,  possession, and  sale  of marijuana  in the  state,                                                               
because  the  personal  component   is  not  within  the  board's                                                               
purview.                                                                                                                        
                                                                                                                                
2:23:53 PM                                                                                                                    
CYNTHIA  FRANKLIN,  Director,  Alcoholic Beverage  Control  (ABC)                                                               
Board,   Department   of   Commerce,   Community   and   Economic                                                               
Development (DCCED), introduced herself.                                                                                        
                                                                                                                                
CHAIR COSTELLO asked where people  with expertise in the cannabis                                                               
industry might be found.                                                                                                        
                                                                                                                                
MS. FRANKLIN  related her expectation that  initially individuals                                                               
who demonstrate  enough experience  to fill industry  seats would                                                               
be  considered. These  individuals  could come  from  one of  the                                                               
already formed  organizations like the Coalition  for Responsible                                                               
Cannabis Legislation or they could  have previous experience with                                                               
medical marijuana.  She noted that  the regulations  and statutes                                                               
relating  to marijuana  licenses may  include an  opportunity for                                                               
individuals who  have previously grown  the plant in more  than a                                                               
personal amount to enter the  legal commercial market. She didn't                                                               
know that  she or any members  of the ABC Board  would have input                                                               
as to who is selected  because governor appointment decisions are                                                               
often  made without  input from  an  agency. She  noted that  she                                                               
suggested that  the staggered terms  could perhaps  accommodate a                                                               
short-term fill  for the  industry seat.  She further  noted that                                                               
the language in the bill provides  that "not more than two people                                                               
may be actively engaged in  the marijuana industry" as opposed to                                                               
the other designations  which state "one person  shall" come from                                                               
each of the other sectors.                                                                                                      
                                                                                                                                
2:28:13 PM                                                                                                                    
SENATOR STEVENS  asked if she  had concerns with the  language on                                                               
page  4, lines  8-9, that  doesn't  clarify that  the powers  and                                                               
duties of the  board relate only to commercial  regulation of the                                                               
cannabis industry, not personal use.                                                                                            
                                                                                                                                
MS.  FRANKLIN  replied that  language  mirrors  Title 4  and  she                                                               
believes that's  important because limiting the  authority of the                                                               
board to those  individuals who have licenses  would eliminate it                                                               
as a resource for shutting down the black market.                                                                               
                                                                                                                                
CHAIR COSTELLO  asked if she envisions  a seat on the  board that                                                               
represents the safety of youth.                                                                                                 
                                                                                                                                
MS.  FRANKLIN  said  she  believes that  some  of  the  strongest                                                               
candidates for  the public  health and  public positions  will be                                                               
those  who have  experience  in  the public  health  arena as  it                                                               
relates to underage substance abuse.                                                                                            
                                                                                                                                
CHAIR  COSTELLO referenced  the  fiscal note  and questioned  the                                                               
need for two boards.                                                                                                            
                                                                                                                                
MS. FRANKLIN  replied her initial  reaction was that a  new board                                                               
wasn't  needed,  but  she  has since  changed  her  mind.  Adding                                                               
appropriate  representation  from  the marijuana  industry  would                                                               
result in  a seven-member  volunteer board  that is  dominated by                                                               
industry. Adding two  public members to get to an  odd number for                                                               
voting  purposes would  result in  a nine-member  volunteer board                                                               
that would  be unwieldy  to gather  for the  statutorily required                                                               
meetings.  After a  lot of  discussion  and scrutiny  of the  two                                                               
boards,  the most  sensible option  appeared  to be  to create  a                                                               
Marijuana Control  Board within  the ABC  Board agency  and share                                                               
the executive director and staff of the ABC Board.                                                                              
                                                                                                                                
2:34:30 PM                                                                                                                    
CHAIR COSTELLO  asked if the  bill diverges from  the traditional                                                               
structure of  boards and commissions  with regard to the  role of                                                               
the executive director.                                                                                                         
                                                                                                                                
MS.  FRANKLIN  agreed   that  it  is  unusual   to  consider  the                                                               
background  and  experience  of the  executive  director  in  the                                                               
composition of  the board. She  related that it was  a compromise                                                               
after two  and one-half  years of debate  between members  of the                                                               
Title  4 stakeholders  group about  the  size of  the board.  She                                                               
offered her belief that it is  an acknowledgement of the way that                                                               
the board  and agency  work together. Because  it is  a volunteer                                                               
board that meets  just five times a year, much  of the day-to-day                                                               
work  falls to  the  director and  the  director's background  in                                                               
bringing items to the board for its agenda has an influence.                                                                    
                                                                                                                                
MS. FRANKLIN  advised that  that valuable  work was  brought into                                                               
the  Marijuana  Control  Board  bill because  it  resulted  in  a                                                               
product that was supported not only  by the industry but also the                                                               
public health  and public safety stakeholders  who certainly have                                                               
a role and interest in how marijuana will be regulated.                                                                         
                                                                                                                                
2:37:21 PM                                                                                                                    
CHAIR  COSTELLO noted  that she  previously  stated concern  that                                                               
this  structure  might  give  one  applicant  an  advantage  over                                                               
another who  is equally  qualified if one  had a  background that                                                               
filled the missing designation.                                                                                                 
                                                                                                                                
SENATOR  GIESSEL  asked for  clarification  about  the number  of                                                               
times per year that the board  will meet because the bill doesn't                                                               
specify a number; it says the board  will meet at the call of the                                                               
chair.                                                                                                                          
                                                                                                                                
2:39:54 PM                                                                                                                    
MS. FRANKLIN opined  that the bill should mirror  the language in                                                               
Title 4 requiring  the board to meet at least  four times a year,                                                               
once  in each  jurisdiction  and  at a  call  of  the chair.  She                                                               
offered her expectation that the  language would be included in a                                                               
forthcoming  amendment that  would also  have the  missing sunset                                                               
language.                                                                                                                       
                                                                                                                                
SENATOR ELLIS  asked her to  comment on 1) the  vigorous lobbying                                                               
effort by  the alcohol industry  to move  the ABC Board  from the                                                               
Department of Public Safety (DPS)  to the Department of Commerce,                                                               
Community and  Economic Development  (DCCED); 2)  what's happened                                                               
since then; and 3) if there  is any practical import for marrying                                                               
the marijuana  board with the  ABC Board  and having it  in DCCED                                                               
rather than DPS.                                                                                                                
                                                                                                                                
MS. FRANKLIN stated  that the Marijuana Control  Board is located                                                               
in  DCCED  because that  is  what  the  initiative and  AS  17.38                                                               
directed. She  wasn't with the  agency in 2012 when  the industry                                                               
lobbied to  relocate to DCCED, but  she understands it had  to do                                                               
with  the  sense  that  having  the  agency  in  DPS  created  an                                                               
adversarial  relationship between  the  board  and the  industry.                                                               
During  her tenure  she's  observed  that the  board  has a  keen                                                               
awareness  of  its  role  and  is  sensitive  to  the  sentiments                                                               
regarding  public health  and public  safety, perhaps  because of                                                               
the controversy around that move.                                                                                               
                                                                                                                                
SENATOR ELLIS  thanked her for  the explanation  and acknowledged                                                               
that it was logical that  the new, legal marijuana industry would                                                               
want to  be in  commerce rather than  public safety.  That's what                                                               
the  initiative  said and  the  legislature  is sorting  out  the                                                               
details.                                                                                                                        
                                                                                                                                
2:45:35 PM                                                                                                                    
CHAIR  COSTELLO  thanked  Ms.  Franklin  for  her  expertise  and                                                               
ongoing efforts.                                                                                                                
                                                                                                                                
SENATOR MEYER  recalled his tenure  on the Anchorage  Assembly in                                                               
the 1990s  and asked  how often  the ABC  Board actually  pulls a                                                               
liquor license.                                                                                                                 
                                                                                                                                
MS. FRANKLIN said  that since September 2014 she's  seen a number                                                               
of suspensions  and fines against  licensees and a  revocation in                                                               
Kodiak. She  pointed out  that if a  local government  objects or                                                               
protests the issuance,  transfer, or retention of  a license, the                                                               
law under  AS 4.11.490 says that  the board shall uphold  a local                                                               
governing  body's  decision  unless  the  board  finds  that  the                                                               
decision was  arbitrary, capricious, and unreasonable.  She cited                                                               
a recent  example to illustrate  the board's commitment  to react                                                               
to  public  safety  concerns.  Last December  the  City  of  Nome                                                               
protested the  transfer of a beverage  dispensary license stating                                                               
that the reason  was that Nome has too many  liquor licenses. The                                                               
ABC Board upheld the protest and killed the license.                                                                            
                                                                                                                                
SENATOR MEYER said he appreciates  that and expects the same type                                                               
of enforcement for marijuana licensees.                                                                                         
                                                                                                                                
MS. FRANKLIN related that she's  been a vocal advocate for making                                                               
marijuana  licenses nontransferable  to  avoid some  of the  less                                                               
desirable effects  of regulation of  alcohol where people  have a                                                               
property interest in  the license that leads  to some undesirable                                                               
outcomes at the board level.                                                                                                    
                                                                                                                                
SENATOR  MEYER expressed  concern that  some marijuana  licensees                                                               
might try to sell things like  spice or sell to minors and opined                                                               
that if the law is enforced strictly the word will get out.                                                                     
                                                                                                                                
2:50:28 PM                                                                                                                    
CHAIR COSTELLO  announced she would  hold SB 60 in  committee and                                                               
keep public testimony open.                                                                                                     
                                                                                                                                
2:50:45 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:50 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 53 - Version N.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB 53 - Sponsor Statement.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB 53 - Sectional Analysis.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB 53 - Fiscal Note.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB 53 - Sen. L&C Hearing Request.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB 53 - APRN Title Change Chart.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - Myers.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - AaNA.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - AARP.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - AK Affiliate ACNM.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - AKANA.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - ANPA.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - APRN Alliance.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - ASHNHA.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - Bd of Nursing.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - Dooley.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - FASDx Services.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - Hartz.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB53 - Rader.pdf SL&C 3/12/2015 1:30:00 PM
SB 53
SB 60 - Version A.pdf SL&C 3/12/2015 1:30:00 PM
SB 60
SB 60 - Sen. L&C Hearing Request.pdf SL&C 3/12/2015 1:30:00 PM
SB 60
SB 60 - Gov. Transmittal Letter.pdf SL&C 3/12/2015 1:30:00 PM
SB 60
SB 60 - Sectional Analysis.pdf SL&C 3/12/2015 1:30:00 PM
SB 60
SB 60 - DCCED Comp. Marijuana Regulatory Institutions.pdf SL&C 3/12/2015 1:30:00 PM
SB 60
SB 60 - Fiscal Note.pdf SL&C 3/12/2015 1:30:00 PM
SB 60
Accountancy - Horton #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Accountancy - Johnson #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Alcoholic Bev - Ganley #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Alcoholic Beverage - Manning #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Big Game - Jones #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Big Game - Vrem #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Fisherman's Fund - Stiles #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Labor Relations - Andrews #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Labor Relations - Needles #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Piszczek, Renee - Real Estate Appraisers.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Real Estate - Barickman #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Real Estate - Burke #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Real Estate - Cartledge #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Real Estate - McConnochie #3.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments
Real Estate - Piszczek #1.pdf SL&C 3/12/2015 1:30:00 PM
Governor's Board Appointments