Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/07/2015 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB146 | |
| HB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 146 | TELECONFERENCED | |
| = | SB 79 | ||
| + | HB 75 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 75-MARIJUANA REG; CLUBS; MUNIS; LOCAL OPT ELECT
3:54:52 PM
CHAIR BISHOP announced the consideration of HB 75. [CSHB 75(JUD)
AM was before the committee.]
3:55:45 PM
At ease.
3:56:13 PM
CHAIR BISHOP called the committee back to order and welcomed
sixth graders from the Academy Charter School from Palmer who
were attending the meeting to learn about government.
3:57:06 PM
REPRESENTATIVE CATHY TILTON, Alaska State Legislature, Juneau,
Alaska, provided a sponsor statement for HB 75 as follows:
HB 75 is the work product of the House Community and
Regional Affairs Committee along with the House
Judiciary Committee, more than a dozen municipal
attorneys throughout Alaska, and the attorneys who
drafted the ballot measure to initiative language. HB
75 is as much about the process used to develop it as
it is about the specific policy content of the bill.
Rather than telling our boroughs and cities what they
were going to do, the Community and Regional Affairs
Committee asked them what they needed us to do. HB 75
is a vehicle that addresses the most immediate and
pressing issues Alaska municipalities need to address,
it is fix-it legislation. Generally speaking, HB 75
clarifies that any power municipalities have to
regulate alcohol establishments, they also have to
regulate marijuana establishments.
Every key provision in this bill has been meticulously
considered and thoughtfully included. HB 75 is not a
bill that opens Title 29 and expands municipal
authorities, it is not a bill that attempts or ever
intends to address every issue associated with the
passage of Ballot Measure 2. Regardless of how my
colleagues feel about Ballot Measure 2, it is and was
my committee's intent to assist our communities as
they write their ordinances and prepare for this new
industry.
3:59:02 PM
HEATH HILYARD, Staff, Representative Tilton, Alaska State
Legislature, Juneau, Alaska, stated that he would review the
changes made to HB 75.
3:59:37 PM
At ease.
3:59:47 PM
CHAIR BISHOP called the committee back to order.
MR. HILYARD said the bill's title has been substantially changed
from the initial version because there are a number of policy
provisions that have been included. He explained that the bill's
original version was a placeholder in order to allow for
legislative development. He specified changes made to HB 75 as
follows:
Section 1, page 1, line 8 through page 2, line 9; this
amends the definition of marijuana in AS 11.71.900.
Because HB 75 does not address anything
comprehensively in Title 11 as it pertains to
controlled substances, we could not simply delete the
definition in Title 11. We had to amend the definition
in Title 11 accordingly to fit with the definition in
AS 17.38.
Section 2, page 2, lines 10-29; this is one of the
most significant pieces. The main thing that this does
do is establish a household maximum plant limit of not
more than 24 plants with not more than 12 being mature
in a given time. In developing this legislation with
municipalities, they made it abundantly clear that
they needed a bright-line plant limit in which it
stopped being a personal grow and started being
commercial, or potentially criminal depending upon the
provisions of other legislation being considered.
Section 3, page 2, line 30 through page 3, line 7;
municipal attorneys in advising our committee in
developing this said that they felt like the
definition of "assisting" with the provisions
governing "assisting" in the original ballot measure
were sort of vague and inconclusive so we made an
attempt to specify particularly what "assisting" is
not. One of the key provisions is that we make it
clear that claiming assistance does allow you to be in
possession of more plants or more processed marijuana
than what would be otherwise provided for under AS
17.38.
Section 6, page 3, lines 16-24; contains language
conforming to Title 4 provisions, currently the ABC
Board, but it could be a marijuana control board if
adopted, notification requirements to municipalities
when issuing registrations for commercial marijuana
establishments, this was not included in the ballot
measure.
Section 8, page 4, line 2 through page 5, line 24;
this contains substantially similar language to what
appears in Title 4, providing notification and protest
review process for municipalities regarding issuance
of marijuana establishment registrations.
Section 9, page 5 lines 25-31; Section 9 does two
important things, first of all it makes reference to
"marijuana clubs," marijuana clubs are later defined
in the bill, and then also begins to close the
loophole the initiative sponsors didn't intend with
regard to the local election option for established
villages.
Section 10, page 6, lines 1-9; this change expressly
provides that municipalities have the authority to
establish civil and criminal penalties for time-place-
manner violations by commercial marijuana
establishments, we clarify that further to stipulate
that this power does not exceed anything already
provided for in Title 29, specifically AS 29.25.070.
4:03:28 PM
SENATOR HOFFMAN asked how Section 9 compared with the Senate's
version of the legislation where the Legislature acted as the
assembly for the unorganized boroughs and elected as a body to
opt-out. He stated that Section 9 is reversed where the
unorganized borough has to vote to opt back in.
MR. HILYARD answered that he will address Senator Hoffman's
statement a bit later in the bill. He continued his overview as
follows:
Section 12, page 6, lines 20-25; on line 24 the phrase
"consistent with the" replacing "subject to all" has
been changed and the functional meaning here is to
simply state that in the circumstance when
municipalities have ordinances that are consistent
with AS 44.62, the Administrative Procedures Act, they
are allowed to use their own body of ordinance rather
than relying specifically on state statute, the
explanation from municipal attorneys is that that
could create some confusion for them when they are
adopting their own ordinances, so this gives them some
flexibility.
Section 15, page 7, lines 11-16; the provision was
included as a potential circumstance regarding a gap
in enforcement. One of the situations that was
identified, Mr. Chair, particularly that might be
relevant to the Fairbanks North Star Borough, is
because it is a second-class borough, it has neither
general police authority or public health authority;
so in this circumstance, the municipality being the
Fairbanks North Star Borough, could have issued the
registration for a marijuana establishment, but they
don't have the authority to do any enforcement, so
this stipulates that in that circumstance the holder
of the marijuana establishment registration will also
be subject to state enforcement so that there wouldn't
be a potential gap.
Section 17, page 7, lines 20-23; similar to the
language in Section 12, this stipulates that
municipalities have the flexibility to use their own
version of the Administrative Procedures Act presuming
they have one in their body of ordinance.
Section 18, page 7, lines 26 through page 8, line 4;
the most significant component to Section 18
stipulates that any powers authorized by boroughs may
only be exercised on a non-area-wide basis stipulating
that they can't override the will of cities in their
boundaries.
Section 19, page 8, lines 5-24; this is really the
core section of the bill that deals with what Senator
Hoffman was asking about. Section 19 sets forth the
process by which an established village can hold an
election, the current version in our bill, as is,
follows the Title 4 provisions virtually identically.
Section 21, page 10, lines 25 through page 11, line 2;
revises the definition of "marijuana" to be consistent
with Section 1 of the bill, the practical effect is
that there is only one common definition of
"marijuana" in statute.
Section 22, page 11, lines 3-6; adds the definition of
"marijuana clubs" to "marijuana establishments."
Section 23, page 11, lines 7-21; definitions,
originally the bill used the word "residence" rather
than "dwelling" so there is a proper definition for
"dwelling" as opposed to "residence," "established
village," "marijuana club," "public place," as
recommended. Of note, "public place" closely follows
the definition in AS 11.81.900, but does exempt
"marijuana clubs" from the definition of "public
place," the functional practical reality is,
"marijuana clubs" will not be considered a "public
place."
Section 24, page 11, line 22; makes conforming
amendments to AS 17.38 necessitated by other areas of
the bill.
Section 25, page 11, line 23; provides for an
immediate effective date of the bill.
4:07:36 PM
SENATOR EGAN asked if communities in unorganized boroughs have
to opt-in to sell alcohol.
SENATOR HOFFMAN remarked that communities can opt-in and opt-
out.
SENATOR EGAN asked him to confirm that communities in
unorganized boroughs would have to opt-out for marijuana.
MR. HILYARD answered correct.
CHAIR BISHOP asked what the purpose of establishing marijuana
clubs was.
MR. HILYARD answered that the establishment of marijuana clubs
came as an expressed request by a number of municipalities; for
instance, upcoming testimony from the City and Borough of Juneau
will indicate that marijuana clubs will provide a place for
cruise ship passengers during the summer months to legally
consume marijuana. He said conversely, Wasilla has already
expressly banned marijuana clubs under their existing
ordinances.
4:09:23 PM
CHAIR BISHOP asked him to verify that a municipality can opt-out
of allowing marijuana clubs.
MR. HILYARD answered correct.
CHAIR BISHOP remarked that coffee houses in Amsterdam are the
same as a marijuana club where individuals can use their
recreational marijuana.
MR. HILYARD specified that the marijuana club is modeled after
the definition of "bottle clubs" under Title 4 for simple
consumption, not buying or selling. He added that the definition
in the bill states that a paying member must be over the age of
21.
SENATOR STEDMAN asked why marijuana clubs should be included in
the bill.
MR. HILYARD answered that the inclusion was in response to what
municipalities brought to the committee.
SENATOR HOFFMAN remarked that as the bill relates to alcohol,
bottle clubs are not allowed. He stated that if the intent is to
treat marijuana like alcohol, the two provisions do not relate.
4:11:32 PM
JOE HARDENBROOK, Special Assistant, Office of the Mayor,
Fairbanks North Star Borough, Fairbanks, Alaska, stated that the
Fairbanks North Star Borough supports the language as currently
stated in HB 75. He remarked that the Fairbanks North Star
Borough appreciates the opportunity to regulate potential
marijuana businesses at the local level.
MR. HARDENBROOK called attention to Section 15 and noted
concerns regarding changes in the language with respect to
registration issues by the municipality should the state miss
its deadlines for creation and adoption of regulations. He
pointed out that the initiative said that should a local license
be issued in lieu of a state license, the license would be good
for a year and would not be subject to state regulation, but the
proviso in the bill says that such a registration is subject to
state regulation. He detailed that a scenario could occur where
a local business obtains a license from the municipality, but
the state enacts new regulations a month later. He reiterated
that Section 15 gives the Fairbanks North Star Borough some
concern.
MR. HARDENBROOK noted that Section 18 in HB 75 makes the
initiative powers non-area wide. He said Fairbanks North Star
Borough sees powers as area wide or at least that a city within
a borough can be more restrictive than the borough, but not less
restrictive with respect to commercial facilities. He explained
that the argument for the area wide consideration is that the
borough would be the entity exercising the zoning authority
which really goes hand-in-hand with the regulation of time,
place, manner, and even the number of marijuana related
businesses contemplated by the initiative.
4:14:01 PM
AMY MEAD, Municipal Attorney, City and Borough of Juneau,
Juneau, Alaska, explained that she was part of the group of
municipal attorneys who worked with Representative Tilton's
office on HB 75. She declared that she supports the current
version of HB 75. She asserted that HB 75 focuses on the
immediate needs of the municipalities that are going to be faced
with the responsibility of regulating the new marijuana
business.
MS. MEAD set forth that the bill provides a definition of
"assisting," fixes the issue with the Administrative Procedure
Act, allows local communities to impose criminal sanctions in
addition to civil sanctions for time, place, manner code
violations which is currently done with alcohol regulations,
provides a registration protest process for the municipalities
which is very much like the liquor license protest process in
Title 4, and provides a bright-line plant limit for dwellings.
She asserted that recognizing and regulating marijuana clubs as
a category of establishment is very important and noted that
consistency is needed with the state regulating all aspects of
the marijuana industry. She said that she cannot say whether the
City and Borough of Juneau Assembly will choose to prohibit
marijuana clubs or any other of the marijuana establishments,
but pointed out the possibility where the city's million summer
visitors have no place to legally consume their marijuana
purchases. She detailed that without including marijuana clubs
as a type of establishment subject to state regulation, the city
would be forced to try and regulate the one type of
establishment separately, an inconsistency that would be
difficult to regulate.
MS. MEAD summarized that HB 75 is a tightly focused bill that
gives the City and Borough of Juneau the needed tools that are
consistent with the intent of the initiative.
4:16:34 PM
DENNIS WHEELER, Municipal Attorney, Municipality of Anchorage,
Anchorage, Alaska, said HB 75 allows a city such as Anchorage to
retain home-rule powers and be allowed to figure out how to
manage marijuana establishments. He noted that HB 75 mirrors
alcohol provisions in Title 4 and allows marijuana to be
regulated like alcohol.
4:18:34 PM
BROOKS CHANDLER, Attorney, Anchorage, Alaska, revealed that he
represents a number of municipalities and noted his appreciation
that input from municipal attorneys was sought for the bill. He
stated that he liked HB 75, but asked that additional language
be added to Section 2 regarding the 24 plant limit. He specified
that the five words that would be added to Section 2 are,
"unless otherwise provided by ordinance," right after the words
"except that." He said the added language allows municipalities
the flexibility to adapt plant limits outside of the 24 plant
default limit. He specified that issues related to dwelling unit
size, lot size, and a number of other zoning considerations
might not make 24 plants an appropriate outcome in every city.
4:21:47 PM
KATHIE WASSERMAN, Executive Director, Alaska Municipal League,
Juneau, Alaska, appreciated that municipalities were involved in
the bill. She declared that the Alaska Municipal League supports
HB 75.
4:23:17 PM
JAMES BARRETT, representing himself, Juneau, Alaska, stated that
the marijuana club option is a great option for Juneau's tourism
industry. He said marijuana clubs do not apply to a lot of
Alaska, but the bill gives Juneau the ability to move forward
and create regulations with the guidelines issued by the state.
4:24:34 PM
CHAIR BISHOP announced that HB 75 would be held in committee.