Legislature(2015 - 2016)CAPITOL 106
02/26/2015 03:00 PM House HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Department of Health and Social Services Division of Public Assistance | |
| HB59 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 59 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 59-MARIJUANA CONCENTRATES; LICENSES
CHAIR SEATON announced that the next order of business would be
HOUSE BILL NO. 59, "An Act relating to marijuana concentrates;
and providing for an effective date."
4:17:51 PM
REPRESENTATIVE VAZQUEZ moved to adopt the proposed committee
substitute (CS) for HB 59, labeled 29-LS0257\S, Martin, 2/24/15,
as the working draft.
4:18:04 PM
CHAIR SEATON objected for discussion.
4:18:22 PM
TANEEKA HANSEN, Staff, Representative Paul Seaton, Alaska State
Legislature, explained the changes contained in the proposed CS,
paraphrasing from a prepared statement, which read:
Section 5:
Page 4, line 7 & 11
Registration is replaced with license.
Section 6:
Page 4, lines 26 - page 5, line 2
Language requiring the regulations to include
prohibitions on the combination of marijuana with
alcohol and nicotine has been deleted. Language
requiring the regulations to prohibit the sale of
marijuana in an establishment which sells alcohol has
also been removed.
New language was added which states that the
regulations created by the board may include
prohibitions on combining marijuana concentrates with
other addictive substances or requirements that new
products be certified before they are available for
retail.
Section 12:
Page 6, lines 8 - 15
Subsections (j), (k), and (l) have been added.
Subsection (j) allows the board by regulation to
create the number or type of licenses necessary for
implementation. Subsection (k) prohibits the issues
of a license for a marijuana retail store to a person
who holds a license under AS 04. Subsection (l)
states that a license issued to a marijuana
manufacturing facility does not authorize the facility
to combine marijuana with tobacco, nicotine, or
alcohol or products containing them.
Section 22
Page 8, lines 23 -25
The words 'through the use of a solvent other than
water' have been removed from the definition of
concentrates.
4:22:12 PM
CHAIR SEATON removed his objection, therefore, the proposed
committee substitute (CS) for HB 59, labeled 29-LS0257\S,
Martin, 2/24/15, was adopted as the working draft.
4:22:30 PM
REPRESENTATIVE WOOL objected and, referring to page 6, line 12,
asked about the license requirement.
CHAIR SEATON relayed that an amendment would be included to
correct that language.
REPRESENTATIVE STUTES said that her question was similar to that
of the previous member's and offered her understanding that the
proposed bill did not prohibit a liquor license holder from
holding a license for the sale of marijuana, although these
could not necessarily be sold in the same establishment.
MS. HANSEN, in response, offered her belief that subsection (k),
as written, could be interpreted in that way; therefore,
Amendment S.1 would be proposed for clarification.
4:24:40 PM
REPRESENTATIVE WOOL removed his objection. There being no
further objection, CSHB 59, Version S, was adopted as the
working draft.
4:25:01 PM
REPRESENTATIVE VAZQUEZ moved to adopt an amendment, labeled 29-
LS0257\S.1, Martin, 2/25/15, which read:
Page 1, line 2, following "establishments;":
Insert "relating to alcoholic beverages and
marijuana;"
Page 2, following line 3:
Insert a new bill section to read:
"* Sec. 2. AS 04.16 is amended by adding a new
section to read:
Sec. 04.16.165. Restriction on sale of marijuana
on licensed premises. A licensee may not sell, offer
for sale, furnish, or deliver marijuana on licensed
premises."
Renumber the following bill sections accordingly.
Page 6, lines 10 - 12:
Delete all material and insert:
"(k) A marijuana retail store license issued
under this section does not authorize the sale,
offering for sale, furnishing, or delivery of
alcoholic beverages on licensed premises."
CHAIR SEATON objected for discussion.
4:27:16 PM
CHAIR SEATON labeled this Amendment S.1, and reviewed it as a
means for removing the person and placing the burden on an
establishment in order to address the issue of self-medication
by individuals. This would prohibit individuals from purchasing
recreational marijuana in an alcohol sales establishment.
CHAIR SEATON removed his objection.
4:28:11 PM
REPRESENTATIVE WOOL objected, asking for clarification that
Section 12, subsection (k) would not authorize the sale of
alcoholic beverages in a marijuana retail sale store, or vice
versa. He reflected that previous testimony by Ms. Franklin,
[Director of the Alcoholic Beverage Control Board] had suggested
that licensing that would allow on premise consumption of
marijuana could occur in the future. He asked if the proposed
amendment only addressed purchases or if it also applied to on
the premise consumption.
CHAIR SEATON explained that the on the premise consumption would
be allowed for either marijuana or alcohol, but not for both
products under the proposed bill. The proposed bill did not
prevent a license for usage or sale on premise, it only
maintained a separation of usage in the same establishment.
REPRESENTATIVE WOOL asked if this was a concurrent issue in
another committee.
4:30:59 PM
MS. HANSEN offered her belief that SB 62 had similar language
restricting the sale of marijuana in an establishment licensed
for alcohol sale, and that it may be more restrictive by
limiting the ownership of licenses for sales of both.
4:31:24 PM
REPRESENTATIVE WOOL removed his objection. There being no
further objection, Amendment S.1 was adopted.
4:31:49 PM
REPRESENTATIVE VAZQUEZ moved to adopt an amendment, labeled 29-
LS0257\S.1, Martin, 2/25/15, which read:
Page 2, line 5:
Delete "Notwithstanding any other provision of
law, the"
Insert "The [NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, THE]"
Page 2, line 6:
Delete ", and permitted by,"
Page 2, line 24:
Delete "Notwithstanding any other provision of
law, the"
Insert "The [NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, THE]"
Page 2, line 25:
Delete ", and permitted by,"
Page 3, line 11:
Delete "Notwithstanding any other provision of
law, the"
Insert "The [NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, THE]"
Page 3, line 12:
Delete ", and permitted by,"
CHAIR SEATON labeled this Amendment 2 and objected for
discussion.
4:33:32 PM
MS. HANSEN explained Amendment 2, which was primarily conforming
language to SB 30 dealing with the criminal statutes, and
deleting the language for "notwithstanding any other provisions
of law." She noted the removal of "and permitted by" which had
allowed a temporary delay for the concentrates, stating that it
was no longer necessary with the deletion of the aforementioned
language for notwithstanding.
4:34:43 PM
CHAIR SEATON removed his objection. There being no further
objection, Amendment 2 was adopted.
4:35:13 PM
CHAIR SEATON opened public testimony.
4:36:35 PM
TIM HINTERBERGER, Ph.D., Chair, Campaign to Regulate Marijuana
Like Alcohol in Alaska, stated opposition to proposed HB 59. He
pointed out that Ballot Measure 2 had been approved by 53
percent of Alaska voters on November 3, and would effectively
replace the unregulated, underground market for marijuana with a
regulated system of tax paying businesses. He noted that the
legislature's ability to modify this initiative was restricted
for two years, and he expressed confidence in the Alcoholic
Beverage Control Board for undertaking a mandate to provide
regulations under the timelines required by the ballot measure.
He stated that delay of any implementation would contradict the
will of the voters, declaring that concentrates were included
under the definition of marijuana in Ballot Measure 2, and the
manufacture, sales, and possession of these products should be
treated with parity to marijuana flower products. He stated
that the campaign maintained the position that proposed HB 59
was unconstitutional as currently drafted. He directed
attention to the handout titled "Specific Concerns With the
Current Version of HB 59" [Included in members' packets].
4:38:53 PM
RACHELLE YEUNG, Legislative Analyst, Marijuana Policy Project,
directed attention to the handout titled "Specific Concerns With
the Current Version of HB 59" [Included in members' packets] and
stated that it was substantively quite similar to an earlier
memo. She emphasized that the campaign wanted to clarify its
concerns for the intent and the effect of HB 59, as it appeared
the intent was not aligned with the will of the voters. She
offered the campaign's belief that the proposed bill was not
constitutional in its intent. She stated that concentrates were
included under the definition of marijuana in Ballot Measure 2,
and, as it was not distinguished from the marijuana plant or
flower, the mandate to the legislature was to not interfere with
or alter the timeline for implementation of the marijuana
regulations. She declared that neither the proposed committee
substitute nor these amendments had altered the concerns and
that the bill remained inconsistent with the initiative passed
by the voters. She offered support for discussion to the
concerns of potential dangers with production of concentrates
and to address the concerns in a constitutional manner that was
consistent with Ballot Measure 2.
4:42:16 PM
CHAIR SEATON closed public testimony.
4:43:02 PM
CHAIR SEATON asked for an opinion on the provision of the bill
which separated the combining of nicotine with marijuana. He
opined that this was the mixing of an addictive product with a
product that may have psychological dependence and questioned
whether a prohibition should be implemented.
ALLISON KULAS, Program Manager, Tobacco Prevention and Control,
Division of Public Health, Department of Health and Social
Services, stated that the division had not taken an official
position, and, although they were tracking the science, they had
not come across anything discussing the combination of nicotine
or tobacco or alcohol with marijuana.
4:44:26 PM
REPRESENTATIVE VAZQUEZ asked about the combination of cannabis
and alcohol.
MS. KULAS replied that, although there was not any specific
science for the combination of the two, it would most likely
result in greater impairment, and that there was a concern for
the addictive properties of marijuana.
REPRESENTATIVE VAZQUEZ asked if Department of Health and Social
Services had a position on the proposed bill.
MS. KULAS replied that the department did not have a position,
at this point.
4:45:13 PM
REPRESENTATIVE WOOL asked if there was anyone who could provide
a response regarding the combination aspect.
MS. KULAS explained that the evidence was being considered and
the department was following the lead of Colorado, as that state
had done an extensive literature review for marijuana addiction.
4:46:07 PM
CHAIR SEATON reported that the proposed bill was designed to
address a developing industry. He shared that the ABC Board
anticipated successful completion of the regulations. They had
requested additional staff, although given the current financial
situation, authorization was not ensured. The purpose of the
proposed bill was to ensure full regulations on cultivation,
processing, and retail sales by the industry. If necessary, a
delay could be placed on the manufacture and sale of new
products. He pointed out that the delay would be based on the
implementation of recommendations by the board and could not
exceed the projected timeframe.
4:48:18 PM
REPRESENTATIVE WOOL disclosed that he was currently a license
holder under AS 04. He mused that these restrictions, as they
were not in the last version of the bill, prompted further
questioning. He shared that the ABC Board representatives had
stated they were prepared to write regulations and restrictions
on marijuana use based on their experiences with the control and
regulation for the use of alcohol. He noted that members of the
licensing world also declared a readiness for these issues
regarding systems of control and regulations.
4:49:56 PM
REPRESENTATIVE WOOL asked about the ABC Board's position
regarding the restriction of license holders under AS 04 with
relationship to the potential sale of marijuana.
CYNTHIA FRANKLIN, Director, Alcoholic Beverage Control (ABC)
Board, in response, explained that most of the restrictions
related to alcohol were centered on a premises based approach
with control of the area of sales, manufacture, or delivery, and
there were not any restrictions on other businesses by alcohol
licensees. She stated that the application to qualify for
liquor licenses was "a fairly straightforward process." She
offered her hope that the regulations for the application and
licensing process for obtaining a marijuana based license would
be left to the ABC Board or a newly created marijuana control
board. She opined that it was difficult for the legislature "to
find your spot in this voter initiative" and she expressed
appreciation for the effort to allow for additional time, as
well as concern for the constitutionality requirements. She
stated that the specifications for who may or may not get
marijuana business licenses begs the need for the regulatory
agency to develop the regulations with an extended public input
period. She acknowledged the earlier statements for
consideration that changes may occur as the industry progresses
and those details would need to be addressed during the
regulatory process, as statutes were much harder to change. She
opined that a prohibition for certain people to obtain marijuana
licenses "might be risky business."
4:53:19 PM
CHAIR SEATON clarified that the proposed bill had been amended
to address establishments and not persons, and that it
prohibited the sale of both alcohol and marijuana in an
establishment.
MS. FRANKLIN acknowledged the amendment, although she had
understood the question to be for the simultaneous holding of
licenses.
4:54:28 PM
The committee took a brief at-ease.
4:55:14 PM
CHAIR SEATON stated that HB 59 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DPA Program Descriptions - All with regs and budget.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| Heating Assistance Program 02.05.2015 Fact Sheet.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| ATAP Fact Sheet 020915.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| WIC FNP Fact Sheet.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| TANF - WS NFAP Fact Sheet.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| Tribal TANF Fact Sheet 2.05.2015.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| SBP Fact Sheet (02-03-15).pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| Division of Public Assistance Presentation_2.25.2015.pdf |
HHSS 2/26/2015 3:00:00 PM |
Presentations by DHSS |
| HB 59 Version S_proposed CS.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |
| HB 59 Sectional Analysis_Version S.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |
| HB 59 Explanation of changes_ver P to S.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |
| HB 59_Legal Opinion_Does HB 59 require additional licenses.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |
| HB 59 Ver S proposed amendment 1.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |
| HB 59 Ver S Proposed Amendment 2.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |
| HB 59 S_letter of opposition_MPP.pdf |
HHSS 2/26/2015 3:00:00 PM |
HB 59 |