HOUSE FINANCE COMMITTEE April 11, 2012 2:23 p.m. 2:23:21 PM CALL TO ORDER Co-Chair Stoltze called the House Finance Committee meeting to order at 2:23 p.m. MEMBERS PRESENT Representative Bill Stoltze, Co-Chair Representative Bill Thomas Jr., Co-Chair Representative Anna Fairclough, Vice-Chair Representative Mia Costello Representative Mike Doogan Representative Bryce Edgmon Representative Les Gara Representative David Guttenberg Representative Reggie Joule Representative Mark Neuman Representative Tammie Wilson MEMBERS ABSENT None ALSO PRESENT Senator Kevin Meyer, Sponsor. SUMMARY CSSB 23(FIN) FILM PRODUCTION TAX CREDIT/AUDITS CSSB 23(FIN) was SCHEDULED but not HEARD. SCR 24 COMMISSION ON 100TH ANNIV. OF LEGISLATURE SCR 24 was SCHEDULED but not HEARD. CSSB 119 (L&C) ATHLETIC TRAINERS CSSB 119(L&C) was SCHEDULED but not HEARD. CSSB 160(FIN) BUDGET: CAPITAL CSSB 160(FIN) was SCHEDULED but not HEARD. CSSB 140(JUD) CATHINONE BATH SALTS CSSB 140(JUD) was REPORTED out of committee with a "do pass" recommendation and with new zero fiscal notes from the Department of Corrections, Department of Public Safety, Department of Administration and previously published zero fiscal note: FN1 (LAW). 2:23:27 PM CS FOR SENATE BILL NO. 140(JUD) "An Act classifying certain substances as schedule IIA controlled substances and providing penalties relating to those substances; and providing for an effective date." SENATOR KEVIN MEYER, SPONSOR, briefly expressed his reasons for introducing the bill. He noted that the City of Anchorage came to him regarding the dangers of "bath salts" and requested help from the legislature. He pointed out that the drug was a statewide problem. Co-Chair Stoltze wondered what penalties were prescribed in the legislation. Senator Meyer responded that assigning penalties was difficult. He noted that the substance was legal for some time and that someone possessing a small amount may not know that it was illegal. He felt that making a severe penalty for possessing a small quantity for a first time offense was not justified. He believed a felony was warranted for large quantity offenses. Co-Chair Stoltze commented on the "made-up" trendy designer drugs. He remarked that some "people found ways to poison kids for a profit." He believed the premise of the bill was to stop the synthetic drug trade. Representative Doogan had questioned earlier how the penalties were handled. He decided it was better to support the bill, and not look for a perfect bill. Vice-chair Fairclough emphasized that the drugs were dangerous. She cited a document in the bill packet "Life- threatening Necrotizing Fasciitis Due to 'Bath Salts' Injection"(copy on file). The article contained photos of tissue damage in an arm resulting from injecting the drug, which ultimately lead to amputation. She related that no portion of the drug was safe and hoped that the news about the harmful effects of the drug was disseminated to the general public. She stressed that everyone needed to know the drug was dangerous and life-threatening. Representative Gara pointed out that press coverage was important to get the message out. He suggested issuing a press release. He believed the seller was the most culpable player and hoped that the district attorney would be lenient if young people were caught with the drug. Co-Chair Stoltze concurred with Representative Gara. He thanked Senator Meyer for the bill. He recognized the bill was just one battle in the war on designer drugs and welcomed future legislation. Senator Meyer agreed that people were getting very creative in making and selling synthetic drugs. He noted that "bath salts" were synthetic cocaine. Unfortunately word gets out to young people that the drug was fun. He agreed the bill will not be the last as new drugs were created. 2:32:13 PM Vice-chair Fairclough announced that the committee zeroed out three of the previously published indeterminate fiscal notes from the Department of Corrections (FN 3), Department of Public Safety (FN 2), and Department of Administration (FN 4). She noted the previously published zero fiscal notes from the Department of Law, (FN 1). Vice-chair Fairclough MOVED to report CSSB 140(JUD) out of committee with individual recommendations and the accompanying fiscal note(s). CSSB 140(JUD) was REPORTED out of committee with a "do pass" recommendation and with new zero fiscal notes from the Department of Corrections, the Department of Public Safety, and Department of Administration, and previously published zero fiscal note: FN1 (LAW). CS FOR SENATE BILL NO. 23(FIN) "An Act relating to transferable film production tax credits and film production tax credit certificates; requiring the legislative audit division to audit the Alaska film production incentive program; and providing for an effective date by amending the effective dates of secs. 3 and 4, ch. 63, SLA 2008." CSSB 23(FIN) was SCHEDULED but not HEARD. SENATE CONCURRENT RESOLUTION NO. 24 Establishing the Alaska Legislative Celebration Commission to organize events to commemorate the 100th anniversary of the first convening of the legislative branch of government in Alaska. SCR 24 was SCHEDULED but not HEARD. CS FOR SENATE BILL NO. 119(L&C) "An Act relating to athletic trainers." CSSB 119(L&C) was SCHEDULED but not HEARD. CS FOR SENATE BILL NO. 160(FIN) "An Act making and amending appropriations, including capital appropriations, supplemental appropriations, and other appropriations; making appropriations to capitalize funds; and providing for an effective date." CSSB 160(FIN) was SCHEDULED but not HEARD. 2:34:51 PM RECESSED ADJOURNMENT 6:32:06 PM The meeting was adjourned at 6:32 PM.