Legislature(2015 - 2016)BUTROVICH 205

01/22/2015 09:00 AM Senate STATE AFFAIRS


Download Mp3. <- Right click and save file as

Audio Topic
09:00:18 AM Start
09:00:38 AM Overview: Ballot Measure No. 2 (13psum) - an Act to Tax and Regulate the Production, Sale, and Use of Marijuana.
10:48:11 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Overview: Ballot Measure No. 2 (13PSUM) - An Act
to Tax and Regulate the Production, Sale, and Use
of Marijuana
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        January 22, 2015                                                                                        
                           9:00 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Bill Stoltze, Chair                                                                                                     
Senator John Coghill, Vice Chair                                                                                                
Senator Lesil McGuire                                                                                                           
Senator Bill Wielechowski                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Charlie Huggins                                                                                                         
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Max Gruenberg                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: BALLOT MEASURE NO. 2 (13PSUM) - AN ACT TO TAX AND                                                                     
REGULATE THE PRODUCTION~ SALE~ AND USE OF MARIJUANA.                                                                            
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DR. TIM HINTERBERGER, Chairman                                                                                                  
Campaign to Regulate Marijuana like Alcohol in Alaska                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided an overview of Ballot Measure 2.                                                                 
                                                                                                                                
BRUCE SCHULTE, board member                                                                                                     
The Coalition for Responsible Cannabis Legislation                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Provided an overview of Ballot Measure 2.                                                                 
                                                                                                                                
RACHELLE YEUNG, Legislative Analyst                                                                                             
State Policies Department                                                                                                       
Marijuana Policy Project                                                                                                        
Washington, D.C.                                                                                                                
POSITION  STATEMENT:  Provided  supportive testimony  for  Ballot                                                             
Measure 2.                                                                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:00:18 AM                                                                                                                    
CHAIR  BILL  STOLTZE called  the  Senate  State Affairs  Standing                                                             
Committee meeting  to order at 9:00  a.m. Present at the  call to                                                               
order  were Senators  McGuire, Wielechowski,  Vice-Chair Coghill,                                                               
and Chair Stoltze.                                                                                                              
                                                                                                                                
^Overview: Ballot  Measure No.  2 (13PSUM)  - An  Act to  Tax and                                                               
Regulate the Production, Sale, and Use of Marijuana.                                                                            
  Overview: Ballot Measure No. 2 (13PSUM) - An Act to Tax and                                                               
      Regulate the Production, Sale, and Use of Marijuana.                                                                  
                                                                                                                                
9:00:38 AM                                                                                                                    
CHAIR  STOLTZE announced  that the  committee  is commencing  the                                                               
review of the  Ballot Measure No. 2,  which is soon to  be an act                                                               
or in  other words a law.  He said the committee  is deliberating                                                               
as is always done with a bill.  He noted that the sponsors of the                                                               
bill are the initiative sponsors:  Dr. Tim Hinterberger and Bruce                                                               
Schulte. He added  that Rachelle Yeung has been  asked to testify                                                               
and augment the sponsors' testimony.                                                                                            
                                                                                                                                
9:03:11 AM                                                                                                                    
DR. TIM  HINTERBERGER, Chairman,  Campaign to  Regulate Marijuana                                                               
like  Alcohol in  Alaska  (CRMLA),  Anchorage, Alaska,  explained                                                               
that he is  one of the primary sponsors of  Ballot Measure No. 2.                                                               
He added  that he is  a faculty member  of the medical  school at                                                               
the University  of Alaska-Anchorage.  He noted  that he  has been                                                               
working  on promoting  marijuana  legalization for  the 2000  and                                                               
2004  campaigns.  He  explained  that  the  voters  approved  the                                                               
initiative as follows:                                                                                                          
                                                                                                                                
     Ballot Measure  No. 2 clarifies  Alaska's contradictory                                                                    
     marijuana laws, making it legal  for adults 21 and over                                                                    
     to possess and cultivate  limited amounts of marijuana;                                                                    
     it also replaces  the existing underground, unregulated                                                                    
     marijuana market  with taxed and  regulated businesses.                                                                    
     The  state  is  required  to establish  a  system  that                                                                    
     allows adults  21 and over  to purchase marijuana  in a                                                                    
     legal regulated setting.                                                                                                   
                                                                                                                                
     In  general,  our  message  to you  today  is  that  we                                                                    
     understand the  importance of the  task that  the state                                                                    
     has  before  it. There  will  be  challenges, but  also                                                                    
     opportunities,    opportunities   for    a   regulatory                                                                    
     framework  that Alaska  can be  proud of  and that  can                                                                    
     serve as a  model for the rest of the  country as other                                                                    
     states  join Alaska,  Oregon, Colorado,  and Washington                                                                    
     in  repealing the  failed policies  of prohibition.  We                                                                    
     can  protect   the  public  health  and   safety  while                                                                    
     recognizing that  creating a new approach  to marijuana                                                                    
     will bring benefits to the state as well.                                                                                  
                                                                                                                                
     I  want  to  say  that  we  see  this  primarily  as  a                                                                    
     regulatory issue given the nine  month timeline and the                                                                    
     tremendous amount of work needed  to be done well after                                                                    
     adjournment  of this  legislative  session. We  drafted                                                                    
     the  initiative with  the intent  that the  majority of                                                                    
     the  work  would be  done  by  a rulemaking  authority,                                                                    
     whether  it be  the  Alcoholic  Beverage Control  (ABC)                                                                    
     Board, a  separate marijuana-control board or  a hybrid                                                                    
     solution.                                                                                                                  
                                                                                                                                
9:05:26 AM                                                                                                                    
     Quite frankly,  we feel  that Legislature's  role would                                                                    
     be quite limited; with that  said, we do recognize that                                                                    
     the Legislature can have a  role to play in the process                                                                    
     and  there  is  an  interest  in  doing  that.  We  the                                                                    
     sponsors of  the law will  be staying  attentive during                                                                    
     implementation and hope to serve  as a resource to this                                                                    
     committee and others in representing  the intent of the                                                                    
     initiative  and   helping  you  to   avoid  considering                                                                    
     legislation  that  might  violate  the  intent  of  the                                                                    
     initiative and the will of the voters.                                                                                     
                                                                                                                                
     Along with me  today I have Bruce  Schulte and Rachelle                                                                    
     Yeung. Bruce is an  Anchorage businessman and pilot who                                                                    
     served  alongside me  as co-chair  of  the Campaign  to                                                                    
     Regulate Marijuana  like Alcohol, he is  a board member                                                                    
     and  spokesperson  for  the Coalition  for  Responsible                                                                    
     Cannabis  Legislation  (CRCL),  one of  the  campaign's                                                                    
     partners,  and  will  be speaking  on  behalf  of  CRCL                                                                    
     today.  Rachelle  is  a legislative  analyst  with  the                                                                    
     Marijuana  Policy  Project  (MPP)  where  she  supports                                                                    
     activists  and  legislators   interested  in  reforming                                                                    
     their own marijuana laws in  nearly 20 different states                                                                    
     and territories as varied as  Alaska, Maryland, and the                                                                    
     U.S. Virgin  Islands; she received her  degree from the                                                                    
     University of  Colorado Law School where  she worked in                                                                    
     marijuana  policy  at  Vicente Sederberg,  one  of  the                                                                    
     leading  marijuana law  firms  in the  country. MPP  is                                                                    
     another   partner-organization  of   ours;  they   were                                                                    
     founded  in   1995  and   are  currently   the  largest                                                                    
     nonprofit in  the U.S. that's focused  solely on ending                                                                    
     marijuana  prohibition.  Rachelle  is here  to  provide                                                                    
     additional   legal   and   policy  expertise   to   the                                                                    
     committee.                                                                                                                 
                                                                                                                                
9:07:10 AM                                                                                                                    
SENATOR  COGHILL  stated  that  there  are  many  things  in  the                                                               
initiative  that  the  Legislature  will  have  to  do  that  Dr.                                                               
Hinterberger may  have contemplated and one  pertains to Alaska's                                                               
out-of-synch  marijuana   statutes  for  the  sale   and  use  of                                                               
marijuana. He pointed  out that the Legislature will  have to get                                                               
some of  the criminal descriptions  in-line with  the initiative.                                                               
He  said the  expectation is  under 21  years of  age would  be a                                                               
legal  prohibition.  He  asserted  that one  of  the  things  the                                                               
Legislature  will struggle  with is  how to  establish the  legal                                                               
levels of impairment and noted  that arbitrary driving impairment                                                               
levels have  been set  for alcohol. He  asked what  the sponsors'                                                               
anticipation   was  for   setting  marijuana   driving-impairment                                                               
levels.                                                                                                                         
                                                                                                                                
DR. HINTERBERGER  pointed out  that marijuana use  is not  new to                                                               
Alaska because there  already is a substantial amount  of use. He                                                               
noted  that law  enforcement  already has  experience in  dealing                                                               
with marijuana  driving impairment. He asserted  that whatever is                                                               
working now  for law enforcement  would continue to  work equally                                                               
well under  a regulated legal  situation. He offered that  in the                                                               
future  there will  be the  likelihood that  additional technical                                                               
solutions  will be  available  to detect  marijuana  levels in  a                                                               
person suspected of impairment.                                                                                                 
                                                                                                                                
9:09:13 AM                                                                                                                    
SENATOR COGHILL  stated that he  did not know if  law enforcement                                                               
in Alaska had the ability to  test for marijuana levels. He asked                                                               
if  Colorado or  Washington  have been  able to  come  up with  a                                                               
testing scheme that would allow Alaska to model after.                                                                          
                                                                                                                                
DR. HINTERBERGER  replied that Alaska  was pretty well  served by                                                               
the police's current detection testing  procedures. He said he is                                                               
not aware that driving under  the influence of marijuana has been                                                               
a major  public safety issue  in the  state. He pointed  out that                                                               
CRMLA and CRCL  are opposed to the notion of  what is called "per                                                               
se" testing for a particular  level of Tetrahydrocannabinol (THC)                                                               
presence as being a crime.  He explained that levels of marijuana                                                               
metabolites and  active ingredients  in the person's  system have                                                               
been shown  to not  in any way  generally reflect  impairment. He                                                               
stated that the issue needs to be considered carefully.                                                                         
                                                                                                                                
SENATOR COGHILL  said the Legislature  will consider that  and he                                                               
will be  looking very closely  how other jurisdictions do  it. He                                                               
added  that  many  of  Alaska's  workplaces  have  zero-tolerance                                                               
policies and  the initiative will  change how testing  deals with                                                               
trace  element detection  rather than  just impairment.  He noted                                                               
that Commercial Driver  License (CDL) drivers have to  abide by a                                                               
national drug testing requirement.  He asked Dr. Hinterberger for                                                               
his input  on how  the state  should deal  with the  workplace as                                                               
well as testing options that are similar to detecting alcohol.                                                                  
                                                                                                                                
DR. HINTERBERGER  replied that  he will defer  to Mr.  Schulte to                                                               
address questions that pertain to the workplace.                                                                                
                                                                                                                                
9:12:03 AM                                                                                                                    
SENATOR WIELECHOWSKI  noted that  the initiative bans  the public                                                               
use of marijuana.  He asked how Dr.  Hinterberger defines public-                                                               
use.                                                                                                                            
                                                                                                                                
DR.  HINTERBERGER answered  that the  initiative's sponsors  felt                                                               
that  the  rulemaking-body  should  address  the  definition  for                                                               
public-use. He  noted that the public-use  definition has cropped                                                               
up  in other  states.  He stated  that the  ABC  Board and  other                                                               
authorities  have  recently  investigated  the  approaches  other                                                               
states  have taken.  He remarked  that the  public-use definition                                                               
will depend very much on local preferences.                                                                                     
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if Dr.  Hinterberger advocates  that                                                               
the state leave  the communities to define public-use  or does he                                                               
have a definition that he prefers the state enacts.                                                                             
                                                                                                                                
DR.  HINTERBERGER  replied that  there  is  a great  interest  in                                                               
localities  to   define  public-use  as  appropriate   for  their                                                               
individual  circumstances. He  noted that  the Mat-Su  Valley has                                                               
expressed an interest in regulating locally.                                                                                    
                                                                                                                                
CHAIR STOLTZE asked  if the definition of public-use  is an issue                                                               
where the  initiative's sponsors  allow for  greater governmental                                                               
involvement. He noted that Dr.  Hinterberger mentioned that there                                                               
is a very limited role for government.                                                                                          
                                                                                                                                
DR. HINTERBERGER  replied that there  is a  role by the  state or                                                               
preferably by  local entities to  define what  public consumption                                                               
is.                                                                                                                             
                                                                                                                                
9:14:20 AM                                                                                                                    
SENATOR MCGUIRE pointed  out that Dr. Hinterberger  stated at the                                                               
outset of  his testimony  that the  majority of  the initiative's                                                               
rulemaking would  be left up  to the regulatory body,  either the                                                               
ABC  Board or  some  other entity  that  the Legislature  creates                                                               
given  the  timeline  and  the complexity.  She  noted  that  Dr.                                                               
Hinterberger  declared   that  he   did  see   a  role   for  the                                                               
Legislature. She asked what  the initiative's sponsors envisioned                                                               
as the role for the Legislature in the coming months.                                                                           
                                                                                                                                
DR.  HINTERBERGER  answered   that  there  is  a   role  for  the                                                               
Legislature. He pointed out that  it would be desirable to revise                                                               
existing  statutes   by  removing   any  reference   to  criminal                                                               
penalties for  marijuana use  and possession.  He added  that the                                                               
Legislature  may be  further involved  if  the draft  regulations                                                               
that  the   regulatory-authority  proposes   requires  additional                                                               
legislation for effective implementation.                                                                                       
                                                                                                                                
9:16:00 AM                                                                                                                    
CHAIR STOLTZE  clarified that  as a  voter in  Alaska he  did not                                                               
support  the initiative.  He stated  that the  initiative is  now                                                               
pending law and  the Legislature will certainly try  to guide the                                                               
will of  the people  coinciding with  the legislators'  and local                                                               
governments' responsibilities  in trying to make  the pending law                                                               
work as safely as possible.  He remarked that the questions posed                                                               
by   the  committee   may  be   viewed   as  confrontational   or                                                               
antagonistic  by the  public. He  asserted that  with any  law or                                                               
statute, the  committee is just  trying to probe and  explore the                                                               
initiative.  He  pointed out  that  53  percent of  Alaskans  are                                                               
anxious to see how the initiative moves forward.                                                                                
                                                                                                                                
SENATOR COGHILL  added that he  concurred with Chair  Stoltze and                                                               
noted that legislators are just trying  to figure out how to make                                                               
the  initiative work  to the  best of  their abilities.  He noted                                                               
that the initiative's sponsors gave  some local control over some                                                               
of the  marketing, distribution, and  the ability to  make rules.                                                               
He pointed  out that  Alaska has given  some communities  a local                                                               
option regarding  alcohol and asked if  the initiative's sponsors                                                               
contemplated  allowing  local  communities  to  opt-out  as  with                                                               
alcohol.                                                                                                                        
                                                                                                                                
9:18:36 AM                                                                                                                    
DR.  HINTERBERGER   replied  that  a  local   opt-out  option  is                                                               
definitely an important part of  the initiative. He affirmed that                                                               
the local  opt-out option  was clearly  stated in  the initiative                                                               
that  local governments  of any  sort would  have the  ability to                                                               
opt-out either  by citizen initiative  or by assembly  action. He                                                               
asserted  that the  initiative's  sponsors  intended to  parallel                                                               
quite  closely  with the  opt-out  option  for alcohol  with  one                                                               
difference pertaining to personal  use and possession. He pointed                                                               
out  that since  the mid-1970s,  personal use  and possession  of                                                               
marijuana  has been  expressly allowed  in Alaska  by the  Alaska                                                               
Supreme  Court under  the  Raven Decision.  He  said because  the                                                               
court  found  that   marijuana  is  much  less   harmful  to  the                                                               
individual and  to the society  than alcohol,  individual private                                                               
use of marijuana has been protected  and so there is nothing that                                                               
could have been done to alter that.                                                                                             
                                                                                                                                
SENATOR  COGHILL  remarked  that  the  initiative's  idea  is  to                                                               
regulate  marijuana like  alcohol,  but using  marijuana is  very                                                               
similar  to smoking  cigarettes.  He noted  that  there are  many                                                               
places  that ban  smoking due  to secondhand  smoke. He  said the                                                               
initiative may  be going around the  smoking ban. He asked  for a                                                               
comment on  workplace smoking, secondhand smoke,  and the current                                                               
regulation on cigarettes.                                                                                                       
                                                                                                                                
DR. HINTERBERGER replied that there  is nothing in the initiative                                                               
that  prevents a  workplace or  any other  privately owned  place                                                               
from  prohibiting marijuana  use. He  stated that  public use  is                                                               
contrary to  the intent  of the initiative.  He pointed  out that                                                               
marijuana  differs  from  tobacco  in  that  marijuana  is  often                                                               
consumed in ways that do not  involve smoking. He added that more                                                               
people are consuming marijuana through  edibles. He noted that an                                                               
example  where  an  apartment   complex  might  prohibit  tobacco                                                               
smoking, but  there is  no reason  to prohibit  overall marijuana                                                               
consumption.                                                                                                                    
                                                                                                                                
9:21:40 AM                                                                                                                    
SENATOR COGHILL noted that marijuana  has health benefits as well                                                               
as health risks. He asked  what marijuana's health risks are from                                                               
smoking as well as ingesting edibles.                                                                                           
                                                                                                                                
DR. HINTERBERGER  answered that  the health risks  from marijuana                                                               
consumption  were the  topic of  a lot  of discussion  during the                                                               
campaign. He  explained that  smoking marijuana  is not  near the                                                               
same  category  of  harm  as  tobacco smoke  where  there  is  no                                                               
association  with  cancer  and  other  problems  associated  with                                                               
tobacco smoke.  He said he is  not aware of any  evidence of harm                                                               
from moderately consuming marijuana in other ways.                                                                              
                                                                                                                                
SENATOR  COGHILL asked  how marijuana  potency  levels should  be                                                               
labeled on  edibles packaging  and how  potency levels  should be                                                               
tested to ensure safe levels.                                                                                                   
                                                                                                                                
9:24:06 AM                                                                                                                    
DR. HINTERBERGER  replied that marijuana testing,  packaging, and                                                               
labeling are an  important part of what develops  in Alaska; they                                                               
are  among  the primary  benefits  of  having a  legal  regulated                                                               
market  as  opposed to  the  current  black market  system  where                                                               
buyers  have  no idea  what  they  are  really getting.  He  said                                                               
Colorado  and Washington  have  successful  examples of  testing,                                                               
packaging,  and  labeling   implementation.  He  reiterated  that                                                               
potency level  labeling is  up to  the rulemaking  authorities to                                                               
propose  whether  the process  should  be  a state  function.  He                                                               
surmised  that  producers  would contract  with  private  testing                                                               
laboratories, a  function that is  clearly what  the initiative's                                                               
sponsors want to see happen.                                                                                                    
                                                                                                                                
SENATOR COGHILL  pointing out that  the testing  laboratories and                                                               
marketing descriptions  noted by Dr. Hinterberger  are regulatory                                                               
issues  that  will  be  hard to  attain  under  the  initiative's                                                               
timeline  constraints.  He  said   setting  up  a  whole  testing                                                               
laboratory industry  with credible  packaging will  be difficult.                                                               
He  asked  what Dr.  Hinterberger's  thoughts  are regarding  the                                                               
timelines demanded by the initiative.                                                                                           
                                                                                                                                
DR.  HINTERBERGER replied  that  the timeline  issue for  putting                                                               
together the testing and packaging  infrastructure by the private                                                               
sector  is being  underestimated. He  pointed out  that in  other                                                               
states  there  is a  pretty  well  established industry  that  is                                                               
responding very  nimbly to changes  in regulation  and responding                                                               
to marijuana's  business opportunity.  He asserted that  he would                                                               
be very surprised if the private  sector is not able to deal with                                                               
the issues that Senator Coghill raised in a timely fashion.                                                                     
                                                                                                                                
SENATOR   COGHILL   remarked  that   he   does   not  share   Dr.                                                               
Hinterberger's  optimism. He  stated  that  the Legislature  will                                                               
plug-away  forward in  a credible  manner with  the hope  that if                                                               
there  is  a  need  for  flexibility  that  the  issue  does  not                                                               
necessitate litigation.                                                                                                         
                                                                                                                                
9:26:44 AM                                                                                                                    
CHAIR  STOLTZE   remarked  that  there  was   a  fairly  emphatic                                                               
statement that the Legislature had  limits on its involvement. He                                                               
asserted  that  there  is  a legislative  role  for  limiting  or                                                               
regulating dosages and content for  the purpose of public safety.                                                               
He asked if  the initiative's sponsors felt  that the Legislature                                                               
having a significant  policy role was another area  that might be                                                               
taboo.                                                                                                                          
                                                                                                                                
DR.  HINTERBERGER asserted  that the  initiative's sponsors  felt                                                               
strongly that the rulemaking-body  should deal with packaging and                                                               
dosing.                                                                                                                         
                                                                                                                                
CHAIR  STOLTZE  asked  for clarification  on  Dr.  Hinterberger's                                                               
definition  for rulemaking-body.  He inquired  if rulemaking-body                                                               
did not  mean a  group other  than an elected  group such  as the                                                               
Legislature or a city council.                                                                                                  
                                                                                                                                
DR. HINTERBERGER  answered that  the rulemaking-body  would refer                                                               
to the  ABC Board as it  stands now, unless the  Legislature were                                                               
to create a separate marijuana control board.                                                                                   
                                                                                                                                
CHAIR  STOLTZE  pointed  out  that   the  ABC  Board  gets  their                                                               
direction  from the  legislative-body.  He  remarked that  public                                                               
safety  and  the  health  aspect  is an  important  part  of  the                                                               
initiative. He noted that Dr.  Hinterberger mentioned the Supreme                                                               
Court's role and  voiced his desire not to  litigate every aspect                                                               
if there is a concomitance of  an agreement on issues relating to                                                               
the initiative. He  asserted that he would hate in  good faith to                                                               
assert  the Legislature's  responsibility regulating  dosages and                                                               
find out the initiative's sponsors  are going to litigate against                                                               
the  Legislature.  He remarked  that  the  reframe he  has  heard                                                               
indicates that  any changes  made will  result in  litigation. He                                                               
said  he wants  to operate  in good  faith as  a legislative-body                                                               
trying  to implement  the initiative  and  that precipitates  his                                                               
desire for the committee to get clarified answers.                                                                              
                                                                                                                                
9:28:59 AM                                                                                                                    
DR.  HINTERBERGER  reiterated  that  that  initiative's  sponsors                                                               
believe  that  the  regulation  of  dosage  and  packaging  as  a                                                               
function for a  regulatory board like the ABC Board.  He said the                                                               
Legislature's role  is not  a contentious issue  and seems  to be                                                               
very  straight   forward.  He  explained  that   the  Legislature                                                               
certainly can have  a role within the  initiative's framework. He                                                               
remarked  that the  initiative's  sponsors  are simply  concerned                                                               
that the Legislature not try  to involve itself with changing the                                                               
initiative's   intent  or   doing   anything   contrary  to   the                                                               
initiative's intent  and standing in the  way of the will  of the                                                               
voters.                                                                                                                         
                                                                                                                                
CHAIR STOLTZE replied that the  Legislature understands that part                                                               
of the rhetoric  and acknowledged that the  Legislature is trying                                                               
to make the initiative work.                                                                                                    
                                                                                                                                
SENATOR  MCGUIRE noted  that the  initiative's sponsors  may have                                                               
intended  that  a  rulemaking-body  would take  on  the  bulk  of                                                               
regulatory  issues  and  the Legislature  would  simply  look  at                                                               
decriminalization. She  stated that the  reality is not  going to                                                               
be what the  initiative's sponsors had intended.  She pointed out                                                               
that the initiative itself is  to regulate marijuana like alcohol                                                               
and noted  that over her 15  years in the Legislature,  there has                                                               
been  a  bill every  year  in  alcohol's  Title 4  statutes.  She                                                               
affirmed Chair  Stoltze's comment that the  committee's dialog is                                                               
not  adversarial, but  rather  more of  a  practicality that  the                                                               
Legislature  does engage  in  more policymaking  on  some of  the                                                               
rulemaking areas than what the  initiative's sponsors might think                                                               
when it  comes to  alcohol and  other controlled  substances. She                                                               
surmised that  the Legislature is  not going to  feel comfortable                                                               
in  leaving  the  ABC  Board   to  decide  THC  levels,  dosages,                                                               
advertising, and  zoning because the  Legislature has not  in the                                                               
past.  She noted  that  the Legislature  has  lowered the  blood-                                                               
alcohol level, enhanced restrictions  on alcohol sales to minors,                                                               
addressed  happy hours,  and legislated  brewpub guidelines.  She                                                               
said  she understands  the sponsors'  goal and  noted that  it is                                                               
human to say, "Regulate everyone  else, govern everyone else, but                                                               
we  respectfully don't  want  the Legislature  to  come in."  She                                                               
reiterated that the voters have  spoken and the initiative passed                                                               
to  decriminalize marijuana  and the  Legislature will  implement                                                               
the initiative. She detailed that  the Senate Judiciary Committee                                                               
will  decriminalize marijuana,  but to  say that  the Legislature                                                               
won't  have any  role looking  at the  high intoxicant  levels or                                                               
dosaging is fairly naïve.                                                                                                       
                                                                                                                                
9:32:47 AM                                                                                                                    
DR.  HINTERBERGER stated  that the  initiative's sponsors  do not                                                               
have an objection to the  Legislature specifying limits on dosage                                                               
or  specifying  certain  aspects  of packaging  as  long  as  the                                                               
legislation  is within  the  guidelines of  the  language of  the                                                               
initiative.                                                                                                                     
                                                                                                                                
CHAIR STOLTZE  remarked that  Dr. Hinterberger's  comments brings                                                               
clarity to the Legislature's role  as defined by the initiative's                                                               
sponsors.                                                                                                                       
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  Dr. Hinterberger  would recommend                                                               
the Legislature to enact THC  based impairment levels for drivers                                                               
and  if so,  what THC  level  would be  recommended. He  inquired                                                               
about the  issue of  marijuana use at  employment and  noted that                                                               
some employers have zero  tolerance policies, including municipal                                                               
workers.  He  detailed that  marijuana  can  stay in  a  person's                                                               
system for months.                                                                                                              
                                                                                                                                
DR. HINTERBERGER replied that  the initiative's sponsors strongly                                                               
oppose setting  limits on THC  impairment levels. He  pointed out                                                               
that  "per se"  limits on  THC content  is something  that varies                                                               
from  one individual  to  another. He  said  people are  actively                                                               
researching  the  relationship  between THC  and  impairment.  He                                                               
asserted that setting  specific THC levels would  be premature by                                                               
the state.                                                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  asked if  there needs  to be  a state-level                                                               
policy  that addresses  employment  and  some employers  enacting                                                               
zero tolerance policies on marijuana use.                                                                                       
                                                                                                                                
DR. HINTERBERGER stated  that there is nothing  in the initiative                                                               
that  prevents  employers  from doing  anything  to  alter  their                                                               
current  zero  tolerance  policies  if the  employers  feel  zero                                                               
tolerance is necessary for their particular work force.                                                                         
                                                                                                                                
SENATOR WIELECHOWSKI  asked if Dr.  Hinterberger was okay  with a                                                               
person being  dismissed from  a zero  tolerance employer  where a                                                               
test result  shows a couple nanograms  of THC from a  hair sample                                                               
due to marijuana use that occurred several months in the past.                                                                  
                                                                                                                                
9:35:48 AM                                                                                                                    
DR.  HINTERBERGER  replied that  personally  he  thinks that  the                                                               
scenario  described would  be inappropriate  and all  cases would                                                               
depend  on   the  circumstances.  He  explained   that  the  zero                                                               
tolerance  scenario noted  by  Senator  Wielechowski gets  beyond                                                               
anything to do with the initiative.                                                                                             
                                                                                                                                
CHAIR STOLTZE  added that his  intention is to provide  a greater                                                               
public  awareness by  bringing in  folks  from industry,  federal                                                               
government,  and  others  that have  established  guidelines.  He                                                               
noted that  he has talked  with organized labor whose  mission it                                                               
is to put  people to work and related that  employees have argued                                                               
that they can  smoke marijuana starting November 5  and cannot be                                                               
tested  anymore.  He  asserted  that  the  Legislature  needs  to                                                               
achieve some  clarity for policy  decisions as well  as providing                                                               
education  for  the public  because  there  is  always a  lot  of                                                               
excitement  and apprehension  for  a new  law.  He remarked  that                                                               
Alaska  is not  a  nanny-state  and the  committee  wants to  let                                                               
people have the information to  make the appropriate decision. He                                                               
said  legislators  are  all concerned  about  Alaskans  not  only                                                               
getting  jobs, but  keeping them.  He noted  that union  and non-                                                               
union  trades have  expressed  their  apprehensions. He  asserted                                                               
that  the committee  will spend  time on  employers dealing  with                                                               
marijuana.  He summarized  that the  public will  make their  own                                                               
decisions,  but the  committee will  provide information  through                                                               
its testifiers  to address the  issue of  public misunderstanding                                                               
as to what is allowable.                                                                                                        
                                                                                                                                
9:37:57 AM                                                                                                                    
SENATOR  COGHILL explained  that one  of the  things he  looks at                                                               
when  looking  at a  bill  is,  "What  is  repealed and  what  is                                                               
defined." He noted  that in the definition of  marijuana there is                                                               
a reference to "salt." He  asked that Dr. Hinterberger review the                                                               
sectional  definitions and  help  the  committee understand,  for                                                               
example, what a "salt" is.                                                                                                      
                                                                                                                                
DR.  HINTERBERGER  answered that  "salt"  is  an odd  usage  that                                                               
pertains to  a chemical or  pharmacological reference  to certain                                                               
kind of derivative that might be  used. He noted that the CRCL is                                                               
currently working  on refining definitions  that would be  of use                                                               
to both the Legislature and potential people in the industry.                                                                   
                                                                                                                                
SENATOR  COGHILL  replied  that  he   is  looks  forward  to  the                                                               
definitions  coming forward  to the  committee. He  remarked that                                                               
people have  a tendency to  think of marijuana as  something that                                                               
is  smoked and  not take  into account  related forms  defined as                                                               
"derivative," "resin," "concentrate," or "salt."                                                                                
                                                                                                                                
CHAIR   STOLTZE    stated   that    one   of    the   committee's                                                               
responsibilities  is understanding  and if  necessary, clarifying                                                               
some of the definitions for  providing guidance. He remarked that                                                               
the  definition for  marijuana "derivatives"  seems vague  and he                                                               
will seek  input from  the Administration as  well. He  asked Dr.                                                               
Hinterberger if  clarifying definitions and  removing ambiguities                                                               
was  an  area  for  the Legislature,  Administration,  and  other                                                               
governing  bodies that  still  complies with  the  intent of  the                                                               
voters.                                                                                                                         
                                                                                                                                
9:40:49 AM                                                                                                                    
DR. HINTERBERGER answered yes.                                                                                                  
                                                                                                                                
SENATOR  MCGUIRE  called attention  to  forming  a new  marijuana                                                               
control board. She noted that  the initiative group initially had                                                               
taken  no position  on whether  the rulemaking  body was  the ABC                                                               
Board.  She  revealed  that  the  ABC  Board  had  updated  their                                                               
proposal to have  a marijuana control board within  the ABC Board                                                               
and  there would  be some  shared  resources to  keep the  fiscal                                                               
costs down.  She revealed that  the ABC Board's proposal  for the                                                               
new board  members will consist  of two public members,  a couple                                                               
of  industry members,  and maybe  one  commissioner or  something                                                               
like that.  She asked if Dr.  Hinterberger had an opinion  on the                                                               
ABC Board's proposal.                                                                                                           
                                                                                                                                
DR. HINTERBERGER  replied that the  proposal is sort of  a hybrid                                                               
approach that  the sponsors think makes  quite a bit of  sense in                                                               
the current political environment. He  said the sponsors are open                                                               
to the  proposal's approach,  provided that it  in no  way delays                                                               
the timeline mandated by Ballot Measure 2.                                                                                      
                                                                                                                                
CHAIR STOLTZE  specified that after  reading the  initiative, the                                                               
default position  absent the Legislature  acting will be  the ABC                                                               
Board. He  asked if  his summation  was correct  and was  in line                                                               
with the sponsors' position.                                                                                                    
                                                                                                                                
DR. HINTERBERGER  answered yes. He  specified that the  intent of                                                               
the initiative is that the ABC  Board be named the default board.                                                               
He  added that  the initiative  states that  the Legislature  can                                                               
create a  separate marijuana control  board. He  said authorizing                                                               
the ABC  Board to  have a sub-board  to regulate  marijuana makes                                                               
sense.                                                                                                                          
                                                                                                                                
9:43:26 AM                                                                                                                    
CHAIR STOLTZE remarked that his intent  is to clarify some of the                                                               
things in  the initiative for  people who  may not have  read the                                                               
entire initiative prior to voting.                                                                                              
                                                                                                                                
SENATOR  COGHILL   asked  that   Dr.  Hinterberger   address  the                                                               
initiative's definitions regarding "personal  use." He noted that                                                               
transferring one ounce or less  of marijuana could be interpreted                                                               
to include leaves, derivatives, or concentrates.                                                                                
                                                                                                                                
DR. HINTERBERGER  answered that the  sponsors see it  makes sense                                                               
to regulate the amount of  possession for concentrate differently                                                               
than for unprocessed marijuana.                                                                                                 
                                                                                                                                
SENATOR COGHILL  remarked that he  would take  Dr. Hinterberger's                                                               
comment  as another  place where  the Legislature  needs to  look                                                               
into the details and maybe make some recommendations.                                                                           
                                                                                                                                
CHAIR  STOLTZE added  that the  Administration will  hopefully be                                                               
involved as well.                                                                                                               
                                                                                                                                
9:45:13 AM                                                                                                                    
BRUCE  SCHULTE,  board  member,  The  Coalition  for  Responsible                                                               
Cannabis  Legislation  (CRCL),  Fairbanks, Alaska.  He  explained                                                               
CRCL's role and intentions as follows:                                                                                          
                                                                                                                                
      The CRCL was established as serving as a resource to                                                                      
        the Legislature and local governments during the                                                                        
     rulemaking  process, so  we hope  to work  with all  of                                                                    
     those entities as the rulemaking plays out.                                                                                
                                                                                                                                
     I would  like to address  a couple of things  that came                                                                    
     up  during  the conversation  so  far.  With regard  to                                                                    
     workplace  testing,  I'm  a commercial  pilot,  so  I'm                                                                    
     subject to  testing and I  take that very  seriously. I                                                                    
     would certainly  support and  I recognize  that certain                                                                    
     safety related fields should continue  to drug test and                                                                    
     that  is  totally  appropriate.  I  think  that  as  we                                                                    
     navigate this social change,  some employers may choose                                                                    
     to modify  their workplace drug  testing and  then they                                                                    
     should have that right.                                                                                                    
                                                                                                                                
     With regard  to the  local option, the  opt-out option,                                                                    
     that  is certainly  articulated in  the Ballot  Measure                                                                    
     and we  support that. We  would hope though  that local                                                                    
     governments  would  instead  of simply  opting  out  of                                                                    
     various parts of this industry,  as a default, we would                                                                    
     hope  that they  would instead  try and  regulate their                                                                    
     way to allowing the industry  to exist in some fashion;                                                                    
     that said,  I think  there is a  tremendous opportunity                                                                    
     at the  state level to  craft the  rules in such  a way                                                                    
     that  smaller communities  that  maybe  don't have  the                                                                    
     time  or resources  to develop  their own  rules, could                                                                    
     fall back on  the statewide rules and not  have to opt-                                                                    
     out, but just could use the statewide rules.                                                                               
                                                                                                                                
9:47:39 AM                                                                                                                    
     With regard  to smoke, this  is a very broad  topic and                                                                    
     I'm probably  going to come  back to this again.  A lot                                                                    
     of us  are familiar  with the consumption  of marijuana                                                                    
     as it  was 30  years ago, that  was my  reference point                                                                    
     coming  into  this  campaign,   but  the  industry  has                                                                    
     evolved tremendously.  The smoking  of leaf  and flower                                                                    
     from   the   plants   has  actually   diminished,   the                                                                    
     consumption,    the     preferred    consumption    has                                                                    
     transitioned to  concentrates over  the years  and they                                                                    
     actually represent,  in some  cases, more than  half of                                                                    
     the market,  so I  think it  is important  to recognize                                                                    
     that.                                                                                                                      
                                                                                                                                
     The CRCL  absolutely supports reasonable  guidelines on                                                                    
     packaging,  on testing  requirements, and  on labeling.                                                                    
     We absolutely  do not condone or  support the marketing                                                                    
     of marijuana products to children  and we would support                                                                    
     reasonable efforts  to keep  that from  happening; that                                                                    
     said, we do  think that there are  existing methods for                                                                    
     packaging  that  would meet  the  safety  needs of  the                                                                    
     public.  We feel  that the  testing could  very easily,                                                                    
     probably should indicate levels of  CBDs and THC in the                                                                    
     products, as  well as  perhaps testing  for adulterates                                                                    
     like mold, residual fertilizer and pesticides.                                                                             
                                                                                                                                
9:49:06 AM                                                                                                                    
SENATOR COGHILL asked for an  explanation of acronyms used in the                                                               
initiative.                                                                                                                     
                                                                                                                                
MR.  SCHULTE explained  that CBD  stands for  Cannabidiol, that's                                                               
the  component  in   the  plant  that  has   more  medicinal  and                                                               
therapeutic  properties   than  psychoactive.  He  said   THC  is                                                               
Tetrahydrocannabinol,  which is  the psychoactive  component that                                                               
people use  more for recreational  purposes. He stated  that CRCL                                                               
is working  on a  white-paper that clarifies  many of  the terms,                                                               
not  just chemically  but also  the derivatives  as to  what they                                                               
are, how  they are derived,  and how  they are consumed.  He said                                                               
CRCL found  that in discussions  with elected officials  at every                                                               
level that  a lot of  the terminology is not  clear and a  lot of                                                               
the practices  are not  clear. He stated  that CRCL  will present                                                               
the definition white-book to the committee the following week.                                                                  
                                                                                                                                
CHAIR STOLTZE  noted that Tetrahydrocannabinol does  not sound as                                                               
wholesome as THC.                                                                                                               
                                                                                                                                
MR. SCHULTE continued his overview as follows:                                                                                  
                                                                                                                                
     A  couple of  other points,  we have  heard from  local                                                                    
     governments that they would like  the state to weigh in                                                                    
     on a definition of  "public" versus "private" space. In                                                                    
     our  view, some  spaces  where  large gatherings  might                                                                    
     take place  are in  fact private  in their  nature. For                                                                    
     example, a bar  that has an outdoor  smoking area where                                                                    
     they have  allowed their  patrons to  smoke cigarettes,                                                                    
     that would  be a  private space  and it's  our position                                                                    
     that spaces  like that if  the business  owner chooses,                                                                    
     might  be available  for the  consumption of  marijuana                                                                    
     products  in some  form;  again,  that's something  for                                                                    
     further scrutiny  of course, but  we would hope  to see                                                                    
     some sort of  definition there and I think  many of the                                                                    
     local governments would as well.                                                                                           
                                                                                                                                
     With  regard to  dosing and  limits on  edibles and  so                                                                    
     forth, we  agree that that  is a concern,  obviously it                                                                    
     is  a  concern.  We  found through  the  experience  of                                                                    
     Colorado for  example that 200  milligrams (mg)  of THC                                                                    
     in a single chocolate bar  was excessive, so we support                                                                    
     and  we  would  hope  to  help  guide  some  reasonable                                                                    
     limits. A definition for example  on what constitutes a                                                                    
     serving and  then how many servings  could be contained                                                                    
     in a single package.                                                                                                       
                                                                                                                                
     With regard to the rulemaking  body, it has always been                                                                    
     CRCL's   position  that   the  best   approach  for   a                                                                    
     successful marijuana  industry is  to have  a dedicated                                                                    
     marijuana  control board;  within the  initiative, that                                                                    
     falls by default  to the ABC Board.  The option remains                                                                    
     with the  Legislature to designate a  marijuana control                                                                    
     board. We recognize though  for many reasons, budgetary                                                                    
     and scheduling  and so  forth, some  sort of  a hybrid-                                                                    
     board might develop and we  totally support that and by                                                                    
     a  hybrid-board I  mean a  dedicated marijuana  control                                                                    
     board housed within  the ABC Board. I  have spoken with                                                                    
     Cynthia Franklin a  number of times, I found  her to be                                                                    
     knowledgeable, motivated,  and we think she  would be a                                                                    
     great resource in that  rulemaking process. For several                                                                    
     reasons  we could  envision a  hybrid-board with  folks                                                                    
     dedicated to  marijuana rulemaking  would perhaps  be a                                                                    
     practical approach.                                                                                                        
                                                                                                                                
9:53:21 AM                                                                                                                    
CHAIR STOLTZE asked  if Mr. Schulte envisioned the board  to be a                                                               
more autonomous board from the  politically motivated body of the                                                               
Legislature and the Administration.                                                                                             
                                                                                                                                
MR.  SCHULTE answered  that CRCL  respects and  acknowledges that                                                               
elected officials speak for their  constituents. He asserted that                                                               
a dedicated rulemaking  board would be more nimble  and more able                                                               
to  get  into  the  rulemaking  process  within  the  nine  month                                                               
timeline versus the much shorter  period that the Legislature has                                                               
to work with in conjunction with their other responsibilities.                                                                  
                                                                                                                                
CHAIR STOLTZE  noted that voters  rejected a  gambling initiative                                                               
six  or eight  years ago  that attempted  to get  the legislative                                                               
bodies  out of  the process  so that  an independent  board could                                                               
make the  rules, regulations, and  expansions. He stated  that he                                                               
did not  know and has not  heard if the voters'  expectations for                                                               
the  initiative  are  for  a more  autonomous  board  from  their                                                               
elected  representatives. He  remarked that  nimbleness is  often                                                               
equated  with being  less democratic  and often  being autocratic                                                               
because people do  not have to be asked in  addition to no checks                                                               
or balances.                                                                                                                    
                                                                                                                                
MR.  SCHULTE  replied  that  CRCL's  goal is  to  see  the  right                                                               
regulations develop  in a  way that allows  the industry  to grow                                                               
and thrive  in a regulated  legitimate manner. He set  forth that                                                               
one of the opportunities CRCL sees  is to create a framework that                                                               
allows and  encourages the black  market to transition over  to a                                                               
legitimate business model.                                                                                                      
                                                                                                                                
9:55:32 AM                                                                                                                    
CHAIR STOLTZE remarked that there  is a reformative aspect to the                                                               
initiative that folks will be brought out of the shadows.                                                                       
                                                                                                                                
MR. SCHULTE  answered yes. He said  on occasion he has  talked to                                                               
individuals in  the black market  who have  expressed resistance,                                                               
but noted  that many have  embraced the change to  working within                                                               
the  regulated market  as long  as  the regulations  are not  too                                                               
onerous,  complicated, or  cumbersome. He  said public  safety is                                                               
obviously paramount,  but the challenge  beyond public  safety is                                                               
to  create a  safe rulemaking  environment that  also allows  the                                                               
marijuana  industry to  compete with  the black  market. He  said                                                               
CRCL  believes that  balance will  gradually  diminish the  black                                                               
market over the coming years.                                                                                                   
                                                                                                                                
CHAIR  STOLTZE asked  to  address the  black  market versus  grey                                                               
markets and inquired  if government should take  an enhanced role                                                               
and  a  heavier-hand  against  people   growing  outside  of  the                                                               
parameters.                                                                                                                     
                                                                                                                                
MR. SCHULTE answered  that CRCL sees two  components specified in                                                               
Ballot Measure  2: personal cultivation and  consumption, and the                                                               
commercial aspect. He stated that  CRCL does not anticipate a lot                                                               
more involvement  from law enforcement.  He said CRCL  hopes that                                                               
the rulemaking process  would be sufficiently broad  to allow the                                                               
industry to develop  and encourage the black  market operators to                                                               
move to a legitimate business  model so that law enforcement does                                                               
not have  to spend  time with them.  He asserted  that regulatory                                                               
enforcement would be expected, but  not necessarily involving law                                                               
enforcement.                                                                                                                    
                                                                                                                                
9:58:34 AM                                                                                                                    
CHAIR  STOLTZE  stated  that larger  businesses  in  the  alcohol                                                               
industry  have used  the  ABC Board's  enforcement  powers to  go                                                               
after club  licenses that  included military  based organizations                                                               
that  he is  sympathetic to.  He  asserted that  there should  be                                                               
caution  for  an  overly charged  board  outside  of  legislative                                                               
oversight. He asked  if the marijuana industry  will be dominated                                                               
by big  players. He  said he sincerely  doubts that  the American                                                               
Legion in Chugiak  is going to have a  cannabis-room; however, if                                                               
they  did,  will  they  be  snuffed  out  by  big  marijuana.  He                                                               
summarized that he gets a  little nervous when a regulatory board                                                               
has too  much power that the  people's body is kept  out. He said                                                               
the  initiative   is  a  people's   voice  and  noted   that  the                                                               
Legislature is also the people's voice.                                                                                         
                                                                                                                                
10:01:02 AM                                                                                                                   
MR.  SCHULTE  replied that  from  an  industry perspective,  CRCL                                                               
shares the same concern. He  revealed that the existing market is                                                               
fairly  large and  CRCL would  like  to see  the industry  change                                                               
their business  model and come  out of  the shadows. He  said the                                                               
only way  current operators will  change is  if they are  not put                                                               
into competition  with large  outside mega-corporations.  He said                                                               
from  an  industry  perspective, CRCL  would  support  reasonable                                                               
efforts  to  keep  marijuana  an  Alaska-based  industry  to  the                                                               
greatest extent possible. He asserted  that CRCL does not support                                                               
businesses  that  are  not  going   to  operate  in  a  regulated                                                               
environment  and  in  some  cases,   criminal  sanctions  may  be                                                               
appropriate. He said CRCL hopes  that the vast majority would not                                                               
fall  into  the   unregulated  market  but  would   take  to  the                                                               
regulations and  change their business models  to perhaps combine                                                               
some smaller  mom-and-pop operations  into a slightly  large one.                                                               
He surmised  that the  current market is  not dominated  by large                                                               
players,  but   consists  of  several   hundred  or   more  small                                                               
operators.                                                                                                                      
                                                                                                                                
He remarked that  on a side note that a  number of CRCL's members                                                               
are former  military personnel who  use marijuana  medicinally to                                                               
treat Post-Traumatic Stress  Disorder (PTSD). He said  he did not                                                               
know if  it would  be out of  the question for  a legion  hall to                                                               
either sell or allow marijuana consumption on their property.                                                                   
                                                                                                                                
CHAIR STOLTZE asked about the  issue with the regulatory board if                                                               
the Legislature has  an appropriate role in  setting standards of                                                               
conduct and weighing  in on past acts or  prior criminal activity                                                               
for being involved in the industry.                                                                                             
                                                                                                                                
10:03:57 AM                                                                                                                   
MR. SCHULTE answered yes. He  said CRCL wants to see responsible,                                                               
respectful  citizens within  the  marijuana  industry. He  stated                                                               
that CRCL would probably support  some type of merit-based system                                                               
where  past criminal  behavior weighs  against being  eligibility                                                               
for a license.                                                                                                                  
                                                                                                                                
SENATOR  COGHILL  stated  that   he  questions  the  initiative's                                                               
definition where  consuming marijuana  in public is  unlawful. He                                                               
asserted that  enforcement will  be difficult  when a  person can                                                               
consume marijuana  in something  as small  as a  little chocolate                                                               
bar.  He reiterated  that he  thought of  marijuana being  smoked                                                               
when  he first  read the  initiative. He  asked what  Mr. Schulte                                                               
anticipated on public consumption  when marijuana can be consumed                                                               
by either smoking or in a derivative form.                                                                                      
                                                                                                                                
10:05:29 AM                                                                                                                   
MR. SCHULTE replied  that there are a number  of derivative forms                                                               
of marijuana  and offered  that one of  his concerns  pertains to                                                               
being careful that law enforcement is  not put into a position of                                                               
trying to guess  whether a chocolate bar is in  fact infused with                                                               
marijuana  or not.  He noted  that CRCL  does not  support public                                                               
smoking of  marijuana and the  act is clearly articulated  in the                                                               
bill and  is something  that CRCL  stands by.  He said  there are                                                               
scenarios where  consumption is  either through  smoking, vaping,                                                               
or eating edibles.  He noted that a chocolate  bar with marijuana                                                               
could be consumed in a bar's  designated smoking area or in a bar                                                               
that  sells marijuana  due  to the  establishment's  21 and  over                                                               
policy where  IDs are checked  at the  door. He added  that there                                                               
are  other scenarios  too where  one might  have a  convention or                                                               
industry expo  conducted at  a private  venue where  some limited                                                               
consumption  might   be  appropriate  where  other   factors  are                                                               
recognized. He  noted that allowing  marijuana consumption  at an                                                               
industry expos would be helpful  for the players in the industry.                                                               
He summarized that  people prefer to consume  derivatives and oil                                                               
extracts in  vapor form. He  explained that vaporizers  have very                                                               
little residual  smoke from organic  material and noted  that the                                                               
technology is state of the  art in marijuana consumption. He said                                                               
vaping marijuana was a bit of an  epiphany for him and one of the                                                               
reasons why he  believes CRCL would be helpful  in explaining the                                                               
vaporizing practices for lawmakers.                                                                                             
                                                                                                                                
10:08:07 AM                                                                                                                   
SENATOR  COGHILL   remarked  that   the  public   consumption  of                                                               
marijuana is one of those areas  that would be hammered-out if it                                                               
was  going through  a  regular committee,  but  the committee  is                                                               
presented with  a lawful act  that consuming marijuana  in public                                                               
is  unlawful,  period. He  asserted  that  the committee  has  to                                                               
figure  out  what  consumption  in  public  means  and  attach  a                                                               
definition to Section 900 in  the act. He said CRCL's white-paper                                                               
will assist the committee.                                                                                                      
                                                                                                                                
CHAIR  STOLTZE noted  that marijuana  consumption has  referenced                                                               
tobacco use  at times. He  pointed out  that "public" as  used in                                                               
cigarette  consumption terms  requires imbibers  to stand  out in                                                               
the cold. He  remarked that cigarette consumers  may take umbrage                                                               
if marijuana users  are allowed to consume indoors  in public. He                                                               
noted that  the committee process  probably would have had  a lot                                                               
of public  input and  suggestions on  public consumption,  but he                                                               
conceded that  the committee is  dealing with  a constitutionally                                                               
established concept regarding the initiative.                                                                                   
                                                                                                                                
10:10:00 AM                                                                                                                   
MR. SCHULTE  summarized that CRCL  is working on  its white-paper                                                               
and will  present a  copy to  the committee.  He added  that CRCL                                                               
welcomes the opportunity  to work with the  Legislature and local                                                               
governments as  the marijuana rules  are developed. He  said CRCL                                                               
recognizes that  the elected officials  do represent  the public.                                                               
He set  forth that  CRCL supports  and agrees with  a lot  of the                                                               
public and health concerns that  were raised during the campaign.                                                               
He asserted that CRCL firmly  believes that the legitimate public                                                               
concerns can  be addressed.  He said CRCL  thinks that  there are                                                               
models  and  examples  elsewhere  in  the  country  that  can  be                                                               
adopted. He summarized  that CRCL hopes that Alaska  can become a                                                               
model for marijuana legislation going forward.                                                                                  
                                                                                                                                
CHAIR  STOLTZE  remarked  that several  people  involved  in  the                                                               
industry commented that any changes  made by the Legislature will                                                               
result  in  a lawsuit.  He  asked  how  Mr. Schulte  intended  to                                                               
contest   any  changes   should  the   Legislature  abridge   the                                                               
initiative's fairly strict limits.                                                                                              
                                                                                                                                
MR. SCHULTE replied that the  initiative's backers prefer to work                                                               
together  with  the  Legislature.  He  noted  that  most  of  the                                                               
contentious issues  raised are  based on  incomplete information.                                                               
He asserted that the feeling  is once the complete information is                                                               
out there and once the  processes' products are understood, there                                                               
are solutions for  almost every one of the issues  that have come                                                               
up.  He remarked  that  some  of the  issues  are  a little  more                                                               
awkward  than  others;  for example,  the  definition  of  public                                                               
versus private  space is not an  easy one to answer.  He asserted                                                               
that as  long as  the fundamental  framework of  the initiative's                                                               
intent is not  changed, the initiative's backers  do not envision                                                               
going to  court and would  rather work with the  Legislature than                                                               
to have the initiative become contentious at any level.                                                                         
                                                                                                                                
10:12:53 AM                                                                                                                   
CHAIR STOLTZE  added that the  Legislature will work at  its best                                                               
level to  work through  the common sense  compromises and  try to                                                               
clarify  the issues.  He  affirmed that  his  concern relates  to                                                               
affiliates outside  of the initiative's  sponsors who  will chose                                                               
to  litigate due  to  initiative  changes as  well  as not  being                                                               
involved in the  discussion. He asserted that  the Legislature is                                                               
trying to  operate on good  faith to  help implement the  law. He                                                               
pointed out  that the Legislature  is going to  rely on a  lot of                                                               
good faith in doing what is  best in the public safety aspects as                                                               
well as  complying with the  intent of the initiative.  He stated                                                               
that  he hopes  the process  remains in  good faith.  He said  he                                                               
knows Mr.  Schulte and remarked  that he  can trust his  word. He                                                               
admitted that as  in any industry, there are  other segments that                                                               
have every right  to go out and do what  they wish; however, they                                                               
do not operate on the same level of integrity.                                                                                  
                                                                                                                                
MR. SCHULTE reiterated that the  initiative's sponsors would much                                                               
rather  work  in  a  cooperative  manner  with  state  and  local                                                               
governments. He  remarked that  the initiative's  sponsors cannot                                                               
control every player  in the industry and conceded  that some may                                                               
take issue  with one  rule or another.  He envisioned  times when                                                               
the initiative's sponsors will side  with the Legislature or with                                                               
the  rulemaking  board  in  opposing a  specific  issue  from  an                                                               
opposing  viewpoint. He  summarized  that CRCL  is gathering  and                                                               
vetting  input  from  its  members  in  order  to  bring  forward                                                               
recommendations  that  represent  the  industry's  best  possible                                                               
viewpoint.                                                                                                                      
                                                                                                                                
10:15:23 AM                                                                                                                   
SENATOR  COGHILL   noted  that   he  appreciates   Mr.  Schulte's                                                               
comments.  He  referenced  the  "personal  use"  section  in  the                                                               
initiative, Section 020,  and pointed out that  the definition of                                                               
marijuana  allows for  an  ounce  or less  to  be transferred  in                                                               
addition to possessing six immature  plants without selling them.                                                               
He  reiterated  that  his initial  understanding  encompassed  an                                                               
ounce of  marijuana leaves, but  the definition also  pertains to                                                               
concentrate, derivatives, or salts. He  asked that Mr. Schulte to                                                               
explain what an ounce of marijuana means.                                                                                       
                                                                                                                                
CHAIR  STOLTZE  remarked  that  maybe  Mr.  Schulte  can  clarify                                                               
whether  the initiative's  sponsors meant  the product  or if  he                                                               
believes  the  derivatives  should   be  treated  differently  in                                                               
regulation or statute.                                                                                                          
                                                                                                                                
SENATOR COGHILL remarked that Chair  Stoltze's comment was a good                                                               
point. He  asserted that marijuana under  the definition includes                                                               
all of the forms that he noted.                                                                                                 
                                                                                                                                
CHAIR  STOLTZE declared  that they  can put  their intent  on the                                                               
record.                                                                                                                         
                                                                                                                                
SENATOR COGHILL replied that is fine.  He asked Mr. Schulte if he                                                               
had  any  comments on  his  concern  regarding marijuana's  broad                                                               
definition.                                                                                                                     
                                                                                                                                
10:17:02 AM                                                                                                                   
MR. SCHULTE  replied the he would  not want to attempt  to change                                                               
the  intent  of the  initiative;  however,  he pointed  out  that                                                               
Senator Coghill raised a good point.                                                                                            
                                                                                                                                
He explained  that an ounce  of hash  oil would be  an incredibly                                                               
expensive commodity  and remarked that  he is not sure  that hash                                                               
oil will  be exchanged between  private individuals due  to cost.                                                               
He stated  that CRCL  would support  a rule  whereby the  sale of                                                               
hash oil would have a maximum  amount at a retail level. He added                                                               
that  he does  not know  what a  maximum amount  may be.  He said                                                               
several ounces of  hash oil will probably  be transferred between                                                               
a  hash  oil  extractor  and  a  licensed  edibles  producer.  He                                                               
summarized  that  wholesale  and  retail  transfers  have  to  be                                                               
acknowledged in addition to person-to-person.                                                                                   
                                                                                                                                
He referenced talk  about butane hash oil and  explained that the                                                               
extraction process uses  butane. He set forth that  CRCL does not                                                               
support the home  use of butane extraction due  to the compound's                                                               
volatility. He asserted  that CRCL believes that hash  oil can be                                                               
produced in a controlled  environment using appropriate equipment                                                               
and  trained personnel.  He  stated that  incidents  of fires  or                                                               
explosions associated  with home  use will  simply go  away, much                                                               
the way home distilleries and  bootlegging went away with the end                                                               
of Prohibition.                                                                                                                 
                                                                                                                                
10:19:16 AM                                                                                                                   
SENATOR COGHILL revealed  that Colorado had a  challenge with its                                                               
"gifting"  provisions where  taxation was  avoided. He  explained                                                               
that people in  Colorado paid a cover charge at  a location where                                                               
marijuana was "gifted"  upon entry. He pointed  out that taxation                                                               
becomes  a bigger  question due  to  marijuana's definition  that                                                               
goes beyond an ounce of leaves and stalks.                                                                                      
                                                                                                                                
MR. SCHULTE replied that marijuana's  cultivation is a key point.                                                               
He explained that the initiative  does give individuals the right                                                               
to cultivate  up to six plants.  He noted that growing  plants is                                                               
an  expensive  proposition  that  requires a  lot  of  equipment,                                                               
space, time,  and expertise  to do  it well.  He said  CRCL hopes                                                               
that smaller growers with 50 to  100 plants would meet the market                                                               
need of those  individuals that are just looking for  an ounce or                                                               
half  ounce  of  whatever  product.  He  remarked  that  CRCL  is                                                               
concerned that folks will be taking  their six plants at home and                                                               
selling  what  they   grow  to  friends  through   some  sort  of                                                               
disingenuous mechanism.  He hoped  that individuals  selling what                                                               
they grow  at home would  be relatively minor if  small operators                                                               
are allowed to participate in a regulated industry.                                                                             
                                                                                                                                
SENATOR COGHILL  remarked that  worst case  scenarios have  to be                                                               
taken into  account when scrutinizing  texts of laws.  He pointed                                                               
out  that Mr.  Schulte provided  a personal  use example  where a                                                               
person 21 years or older could also  mean a group of people or an                                                               
establishment.  He  advised  that  regulations  must  be  thought                                                               
through for their real meaning.                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI  asked if the  smoking ban in  Anchorage and                                                               
some other communities would not apply to marijuana.                                                                            
                                                                                                                                
10:22:32 AM                                                                                                                   
MR.  SCHULTE  answered  that  he  believes  the  smoking  ban  in                                                               
Anchorage includes enclosed spaces; for  example, the inside of a                                                               
restaurant  or a  bar.  He said  he is  not  sure CRCL  envisions                                                               
stretching or  modifying the smoking  bans to  exclude marijuana.                                                               
He  stated that  CRCL hopes  that establishments  with designated                                                               
outdoor smoking  areas have the  leeway to allow  the consumption                                                               
of marijuana  in some form.  He specified that smoking  or vaping                                                               
would possibly fall  to local jurisdictions to define  or for the                                                               
business owner to choose.                                                                                                       
                                                                                                                                
CHAIR  STOLTZE asked  if a  business  should have  the leeway  to                                                               
prohibit marijuana if they allow tobacco.                                                                                       
                                                                                                                                
MR.  SCHULTE  answered  yes.  He  explained  that  he  ultimately                                                               
supports the rights of a business to  do what they see as best on                                                               
their property. He  said the best analogy is  some businesses may                                                               
choose to  ban the consumption  of alcohol on their  property and                                                               
those businesses  should legitimately have  the right to  ban the                                                               
consumption of marijuana as well.                                                                                               
                                                                                                                                
CHAIR  STOLTZE   pointed  out  that  the   initiative's  sponsors                                                               
campaigned  that   alcohol  is  worse  than   marijuana  and  Mr.                                                               
Schulte's  previous statement  sounds like  a fertile  ground for                                                               
litigation.                                                                                                                     
                                                                                                                                
MR.  SCHULTE replied  that he  is not  sure who  would bring  the                                                               
lawsuit. He said  CRCL would find it hard to  support a frivolous                                                               
lawsuit that was started by  an individual. He asserted that CRCL                                                               
would support the rights of the  business owner over those of the                                                               
patron in the scenario that was described.                                                                                      
                                                                                                                                
SENATOR  WIELECHOWSKI  explained  that  the  Anchorage  ordinance                                                               
defines smoking as follows:                                                                                                     
                                                                                                                                
     Smoking means inhaling, exhaling, burning or carrying                                                                      
     any lighted tobacco product.                                                                                               
                                                                                                                                
He set forth that marijuana  consumption would not fall under the                                                               
Anchorage ordinance.                                                                                                            
                                                                                                                                
CHAIR  STOLTZE noted  that marijuana  consumption would  also not                                                               
fall under the Palmer ordinance as well.                                                                                        
                                                                                                                                
SENATOR  WIELECHOWSKI  noted that  he  does  not know  how  other                                                               
ordinances  read or  how Senator  Micciche's ordinance  reads. He                                                               
asked if  Mr. Schultz believes  that marijuana should  be applied                                                               
to  the  smoking  legislation  or  ordinances  that  are  enacted                                                               
throughout the state.                                                                                                           
                                                                                                                                
10:25:55 AM                                                                                                                   
MR. SCHULTE  replied that  the discussion  regarding e-cigarettes                                                               
could  be  expanded to  marijuana.  He  explained that  marijuana                                                               
vaporizers essentially  use the same technology  as e-cigarettes;                                                               
they  are  primarily  closed systems  that  produce  very  little                                                               
residual  smoke  that would  impact  patrons.  He said  he  would                                                               
envision  a  scenario  where   both  e-cigarettes  and  marijuana                                                               
vaporizers are allowable.                                                                                                       
                                                                                                                                
CHAIR  STOLTZE remarked  that Mr.  Schulte  and Dr.  Hinterberger                                                               
will have  future opportunities to  testify before  the committee                                                               
as spokespeople and sponsors of a bill.                                                                                         
                                                                                                                                
SENATOR  COGHILL   remarked  that  the  Legislature   is  between                                                               
Alaska's  voters and  the federal  government. He  specified that                                                               
the  challenges  pertain  to   banking  restrictions  because  of                                                               
guarantees, security  of cash, taxation, and  the requirements on                                                               
the marijuana  businesses. He asked if  the initiative's sponsors                                                               
have thought through the challenges that he described.                                                                          
                                                                                                                                
MR.  SCHULTE  answered   that  CRCL  is  acutely   aware  of  the                                                               
challenges at  the federal  level. He said  CRCL is  working with                                                               
national  organizations  and  is  hoping to  work  with  Alaska's                                                               
congressional  delegation  to  remedy the  noted  challenges.  He                                                               
conceded  that banking  laws and  IRS rules  are problematic  and                                                               
CRCL is hopeful that modifications will be allowed.                                                                             
                                                                                                                                
SENATOR  COGHILL  asked  that any  forth  coming  information  be                                                               
presented to  the committee  as well  as recommendations  on laws                                                               
that might have to be modified  to make sure Alaska complies with                                                               
federal law.                                                                                                                    
                                                                                                                                
MR. SCHULTE  replied that CRCL  welcomes the opportunity  to work                                                               
with the Legislature going forward.  He reiterated that CRCL will                                                               
provide the  committee with information  and remain  ready during                                                               
the rulemaking process.                                                                                                         
                                                                                                                                
CHAIR  STOLTZE  commented that  the  best  advice will  help  the                                                               
Legislature to navigate through  the challenge with contradictory                                                               
bodies of law.                                                                                                                  
                                                                                                                                
10:29:47 AM                                                                                                                   
RACHELLE YEUNG,  Legislative Analyst, State  Policies Department,                                                               
Marijuana Policy Project  (MPP), Washington, D.C. She  read a MPP                                                               
overview statement as follows:                                                                                                  
                                                                                                                                
     MPP has been working with  activists in Alaska for many                                                                    
     years.  The Marijuana  Policy  Project  is a  nonprofit                                                                    
     organization. We are  the largest advocacy organization                                                                    
     in  the   country  working  towards   marijuana  policy                                                                    
     reform.  We have  been working  with activists  such as                                                                    
     Dr.  Hinterberger and  Mr. Schulte  in Alaska  for many                                                                    
     years. MPP  supports local activists who  would like to                                                                    
     reform their own marijuana laws.                                                                                           
                                                                                                                                
She  summarized  that  she  looks forward  to  working  with  the                                                               
Legislature   and    other   rulemaking   bodies    towards   the                                                               
implementation of Ballot Measure 2.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI noted  that MPP is on the  federal level and                                                               
has  probably dealt  with banking  in other  states. He  said his                                                               
understanding  is it  is  a  violation to  use  credit cards  and                                                               
checks to  pay for marijuana. He  asked what the state  may do to                                                               
help get  around not being able  to pay for marijuana  with check                                                               
or credit card.                                                                                                                 
                                                                                                                                
MS. YEUNG  replied that  there are  several solutions  that other                                                               
states are  looking into. She related  that state-licensed credit                                                               
unions  have been  formed in  Colorado and  are awaiting  federal                                                               
approval  for  certain  aspects.  She revealed  that  the  credit                                                               
unions  in Colorado  will  be  able to  function  as a  financial                                                               
institution  in which  marijuana businesses  can receive  banking                                                               
services. She revealed that a  bank in Oregon just announced that                                                               
it  is willing  to  openly work  with  marijuana businesses.  She                                                               
summarized that MPP is working  with Congress toward more tenable                                                               
banking solutions.                                                                                                              
                                                                                                                                
10:33:39 AM                                                                                                                   
SENATOR  MCGUIRE  noted  that  a   letter  was  received  from  a                                                               
constituent  which asked  if  legislative  support for  marijuana                                                               
legalization  interferes  with  the  oath taken  by  senators  to                                                               
uphold the state  and federal constitutions and  rules. She asked                                                               
what  advice   was  given  to   Colorado  and   Washington  State                                                               
lawmakers.                                                                                                                      
                                                                                                                                
She  called  attention  to  Alaska's  transportation  issues  and                                                               
challenges due to the state's  vast geographical areas. She noted                                                               
that  some  locations  are  only accessible  by  boats  that  use                                                               
federal  waters or  aircraft that  are regulated  by the  Federal                                                               
Aviation Administration (FAA). She  noted the conundrum in states                                                               
where people have a right to  use marijuana, but they have to use                                                               
transportation methods  that come  through federal  entities that                                                               
have federal jurisdiction.                                                                                                      
                                                                                                                                
10:35:28 AM                                                                                                                   
MS. YEUNG  replied that she  does not  think there is  a conflict                                                               
between the  duties of elected representatives  to uphold federal                                                               
laws and  constitution as  well as representing  the will  of the                                                               
voters  in a  particular state.  She explained  that the  Federal                                                               
Controlled Substances  Act is very  explicit about the  fact that                                                               
that federal  law is not intended  to occupy the entire  field of                                                               
drug policy  and a lot of  space is left for  states to interpret                                                               
their own controlled  substances act as they  will. She specified                                                               
that criminal law is generally left  up to the state, so removing                                                               
criminal  penalties  for  the possession  of  certain  substances                                                               
would be entirely consistent with  the division of powers between                                                               
states and the federal government.                                                                                              
                                                                                                                                
She  addressed  the  transportation  issue  and  noted  that  the                                                               
Department of  Justice (DOJ)  issued a memo  in August  2013 that                                                               
outlined their  8 enforcement  policies. She  noted that  DOJ's 8                                                               
enforcement  priorities did  not include  marijuana transit  from                                                               
one legal  state to  another. She  said MPP  is hopeful  that the                                                               
lesser issue of  transferring within one's state would  not be an                                                               
issue for federal law enforcement.                                                                                              
                                                                                                                                
10:37:12 AM                                                                                                                   
CHAIR  STOLTZE said  the committee  will seek  clarification from                                                               
other entities on Ms. Yeung's comments.                                                                                         
                                                                                                                                
SENATOR MCGUIRE  noted that the  issue of state-to-state  has not                                                               
been clarified  and is still  prohibited. She specified  that the                                                               
intrastate  travel using  federally  controlled navigable  waters                                                               
and airspace requires further clarification.                                                                                    
                                                                                                                                
CHAIR  STOLTZE   noted  that  Alaska   has  different   kinds  of                                                               
governments within  the state that  pertains to  reservations and                                                               
tribal entities. He asked how  Colorado and Washington State have                                                               
addressed taxation and rules  regarding other government entities                                                               
within their states.                                                                                                            
                                                                                                                                
MS. YEUNG replied  that Chair Stoltze's question  is timely given                                                               
that  DOJ just  issued a  recent memo  extending the  flexibility                                                               
given to  states towards experimenting  with their  own marijuana                                                               
policies towards tribal governments as well.                                                                                    
                                                                                                                                
CHAIR  STOLTZE asked  if Ms.  Yeung could  share the  information                                                               
with the committee.  He noted that he was not  aware of the noted                                                               
memo from DOJ.                                                                                                                  
                                                                                                                                
10:39:37 AM                                                                                                                   
MS. YEUNG  replied that  the DOJ  memo will  be forwarded  to the                                                               
committee   and   she   encouraged  the   Legislature   to   seek                                                               
clarification.                                                                                                                  
                                                                                                                                
CHAIR  STOLTZE  remarked  that the  experience  based  on  states                                                               
involving in gambling  and cigarette sales is  something that the                                                               
Legislature needs  to be  aware of.  He asserted  that he  is not                                                               
trying  to  cause tensions  between  different  entities. He  set                                                               
forth that Don  Mitchell could provide the  Legislature with some                                                               
guidance  on the  issue with  marijuana  policies towards  tribal                                                               
governments.                                                                                                                    
                                                                                                                                
10:41:28 AM                                                                                                                   
MS. YEUNG summarized MPP's role as follows:                                                                                     
                                                                                                                                
     MPP is not here to  subvert the role of local activists                                                                    
     and the  campaign in assisting  to implement  this law.                                                                    
     We  simply want  to  serve as  a  resource and  provide                                                                    
     background  and perspective  for  how  these laws  have                                                                    
     worked out in  other states. I would also  like to note                                                                    
     that we want to ensure  that in implementing Measure 2,                                                                    
     the  legal protections  legalizing adult  possession of                                                                    
     marijuana are  not repealed or accidently  repealed and                                                                    
     replaced  with  an  affirmative defense.  I  note  this                                                                    
     because the medical marijuana law  that was passed many                                                                    
     years  ago   in  Alaska  was   replaced  with   a  mere                                                                    
     affirmative defense and it led  to the thwarting of the                                                                    
     will of the voters. So we  just want to be very careful                                                                    
     with  how the  legalization  aspect of  the measure  is                                                                    
     interpreted. I  would also like  to address  a previous                                                                    
     question  by  Senator Coghill  about  the  role of  the                                                                    
     Legislature in clarifying  the definition of marijuana,                                                                    
     of  course there  are certain  aspects that  do require                                                                    
     additional   clarity  such   as  what   one  ounce   of                                                                    
     concentrates   or   extracts   could  mean,   but   the                                                                    
     definition of  marijuana that was passed  by the voters                                                                    
     itself  should not  be altered,  all of  those elements                                                                    
     included under  the definition of marijuana  appears to                                                                    
     be  the  will  of  the  voters  that  all  of  them  be                                                                    
     legalized  and be  available for  adult possession  and                                                                    
     purchase. Of  course we would  like to provide  as much                                                                    
     assistance as possible both to  the Legislature and the                                                                    
     rulemaking body in meeting  your deadlines timelines as                                                                    
     approved by the voters of Alaska.                                                                                          
                                                                                                                                
10:44:04 AM                                                                                                                   
DR. HINTERBERGER summarized as follows:                                                                                         
                                                                                                                                
     Our primary interest here is  seeing that the intent of                                                                    
     the initiative  is protected and  that the will  of the                                                                    
     voters  as  expressed  in  voting   in  favor  of  this                                                                    
     initiative,  keeping  in mind  that  there  was a  huge                                                                    
     amount of debate about this  in advance of the election                                                                    
     and I  think we  have to assume  that people  knew what                                                                    
     they  were  voting  for when  they  voted  to  legalize                                                                    
     marijuana in  all of  the forms  that are  described in                                                                    
     the  initiative.   We  want  to  see   that  that  gets                                                                    
     implemented,  that's our  primary  concern  and as  Ms.                                                                    
     Yeung  stated,   making  sure  all  of   the  forms  of                                                                    
     marijuana   described  in   the  initiative   are  made                                                                    
     available in  appropriate manner and that  the timeline                                                                    
     specified in the initiative is adhered to.                                                                                 
                                                                                                                                
CHAIR STOLTZE  acknowledged that the  public was keenly  aware of                                                               
what  the   initiative's  sponsors   were  doing   in  legalizing                                                               
marijuana. He  stated that  the committee is  going to  be mostly                                                               
discussing commercializing  marijuana and that is  where there is                                                               
some ambiguity.                                                                                                                 
                                                                                                                                
DR.  HINTERBERBER  responded  that  the public  voted  with  full                                                               
knowledge that  they were legalizing the  commercial availability                                                               
of marijuana  and marijuana products  with the goal of  taking it                                                               
out of  the hands of the  black market and creating  a regulated,                                                               
licensed, tax paying market.                                                                                                    
                                                                                                                                
CHAIR  STOLTZE announced  that the  next  committee meeting  will                                                               
include testimony  from the Walker administration  in addition to                                                               
representatives from the departments  of: Revenue, Public Safety,                                                               
Law, and  Commerce. He added  that Mr. Jesse,  Executive Director                                                               
of the Mental  Health Trust, will also  participate. He explained                                                               
that the committee's initial  meetings have invited-testimony and                                                               
his  intention is  to have  public-testimony. He  summarized that                                                               
the State Affairs Committee is not  going to introduce a bill. He                                                               
specified that  the committee  is going to  deal with  bills that                                                               
are  already introduced  and help  facilitate the  process as  it                                                               
goes to  the next committees  of jurisdiction. He  explained that                                                               
addressing  Ballot  Measure  2  is   primarily  going  to  be  an                                                               
exploratory  education  and  a process  for  input  for  involved                                                               
parties with  the committee facilitating the  continuation of the                                                               
debate and  how the Legislature  implements the people's  law. He                                                               
said the committee  welcomes suggestions from people  who wish to                                                               
testify in order to aid in the deliberation of a complex issue.                                                                 
                                                                                                                                
10:48:11 AM                                                                                                                   
There being  no further  business to  come before  the committee,                                                               
Chair  Stoltze  adjourned  the   Senate  State  Affairs  Standing                                                               
Committee hearing at 10:48 a.m.                                                                                                 
                                                                                                                                

Document Name Date/Time Subjects
13PSUM - 2014 General Election OEP - Ballot Measure 2 Selected Pages.pdf SSTA 1/22/2015 9:00:00 AM
Marijuana
USDOJ 2013 Cole Memo on Marijuana Enforcement.pdf SSTA 1/22/2015 9:00:00 AM
Marijuana
USDOJ 2014 Wilkinson Memo on Marijuana Issues in Indian Country.pdf SSTA 1/22/2015 9:00:00 AM
Marijuana
(S)STA 1.22.2015 - Committee Follow-Up Questions & Responses.pdf SSTA 1/22/2015 9:00:00 AM
AMHB - Comments Relating to (S)STA Hearing Jan 22 2015.pdf SSTA 1/22/2015 9:00:00 AM
Marijuana
CRCL - White Paper - Jan 28 2015.pdf SSTA 1/22/2015 9:00:00 AM
Marijuana