Legislature(2015 - 2016)BARNES 124
03/16/2015 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Adjourn | |
| Start | |
| HB123 | |
| HB132 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 123 | TELECONFERENCED | |
| + | HB 132 | TELECONFERENCED | |
HB 123-ESTABLISH MARIJUANA CONTROL BOARD
3:17:17 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 123, "An Act establishing the Marijuana Control
Board; relating to the powers and duties of the Marijuana
Control Board; relating to the appointment, removal, and duties
of the director of the Marijuana Control Board; relating to the
Alcoholic Beverage Control Board; and providing for an effective
date."
3:18:30 PM
MICAELA FOWLER, Legislative Liaison, Department of Commerce,
Community & Economic Development (DCCED), on behalf of the
administration, stated that HB 123 would establish a Marijuana
Control Board (MCB) that would be parallel to the Alcoholic
Beverage Control Board (ABC Board) served by the same agency
staff and executive director. She said that Section 1 covers
the appointment and removal of the director, ensuring that both
the ABC Board and MCB have authority over the director. There
has been some discussion on what would happen if one board voted
to remove a director, since the appointee is appointed by the
Governor, but cannot be removed by the governor except under
extenuating circumstances.
3:19:47 PM
CHAIR OLSON suggested that the Alaska Public Office Commission
(APOC) was an example of another board with similar provisions.
3:19:52 PM
MS. FOWLER offered that the proposed director for the Marijuana
Control Board (MCB) might be addressed in a committee substitute
since the issue of the director has not yet been determined.
She provided a section-by-section analysis of the bill. Section
2 would establish the Marijuana Control Board (MCB) with
designated seats not in the Alcoholic Beverage Control Board
(ABC Board), but the Title 4 [AS 04, Alcoholic Beverages]
rewrite has the same reflections of seats, including adding
seats for public safety and public health representatives. She
pointed out that currently the ABC Board has a rural seat, but
not a public health or public safety representative, which is
important especially in relation to marijuana since it is not a
substance the state currently regulates, nor does the state have
the same federal guidelines as it does with regulation of
alcohol since marijuana is still considered illegal under
federal law. Section 3 would establish the terms of office,
including powers, duties of the board, and enforcement powers.
She said the Alcoholic Beverage Control Board (ABC Board) is a
quasi-judicial agency, and while that language is not included
in this version of the bill, it is the department's intent that
the Marijuana Control Board (MCB) would also be a quasi-judicial
agency and the enforcement staff in the Alcoholic Beverage
Control Board (ABC Board) will have enforcement and peace
officer responsibilities.
MS. FOWLER related that Section 4 would amend the initiative
language to refer to the Marijuana Control Board (MCB). Section
6 would add the Marijuana Control Board (MCB) to the list of
boards served by the DCCED. Section 8 would provide transition
language.
3:21:50 PM
REPRESENTATIVE COLVER referred to page 3 of HB 123 to board
member representation and asked for further clarification on the
number of designated seats.
MS. FOWLER answered that the board would be comprised of six
members, including representatives of the general public, public
safety, public health, rural, and up to two members with
industry experience, and the executive director, who is also
included even though the executive director would not be a
voting member of the board. Thus it would be a five-member
board with the sixth member being the executive director.
CHAIR OLSON offered that to qualify for the last two seats the
industry member would either be subject to felonies or not
living in Alaska, so finding the appropriate language for
industry membership is something the committee is working
through.
3:23:15 PM
REPRESENTATIVE COLVER related his understanding that the
Marijuana Control Board (MCB) would be a six-member board with
an ex-officio member.
MS. FOWLER replied that it would be five members and the
executive director, who is not considered an ex-officio member.
She explained that the board composition was a hard fought
compromise that came from the Title 4 revisions, since it was
felt that the executive director has a fair amount of power in
the ABC Board structure. The ABC Board meets five times a year,
but the work is carried out by the executive director the
remaining time, so for that reason, the Title 4 group believed
that the background of the executive director should be taken
into consideration when determining the other seats on the
board.
3:24:19 PM
REPRESENTATIVE COLVER asked whether the positions could be
designated as rural and public health and also tighten up the
remaining interests. He suggested that besides the designated
seat, only one seat is designated for a public member.
CHAIR OLSON anticipated that a proposed committee substitute
will be forthcoming and it will address board composition more
fully.
3:25:19 PM
REPRESENTATIVE LEDOUX asked to discuss the fiscal note. She
wondered if the Marijuana Control Board (MCB) wasn't created,
but it was left to the Alcoholic Beverage Control Board (ABC
Board), whether the ABC Board incur most of the expenses. She
assumed that the ABC Board would likely need additional staff.
MS. FOWLER stated that the bill initially had a zero fiscal note
and the Department of Commerce, Community & Economic Development
asked for funding in its base budget request. Whether the
function falls to the Alcoholic Beverage Control Board (ABC
Board) or to the Marijuana Control Board (MCB), the department
will need additional staff to implement the program. She agreed
the department will need the additional staff members and the
same costs will be incurred, regardless of the board structure.
3:26:50 PM
REPRESENTATIVE LEDOUX asked whether the costs would be identical
or if additional costs will be incurred.
MS. FOWLER answered that it would be a "wash."
3:27:10 PM
REPRESENTATIVE COLVER asked how the fee structure will offset
the costs and whether it would be by regulation or statute.
MS. FOWLER answered that it would be done by regulation.
3:27:41 PM
REPRESENTATIVE KITO related his understanding that the Title 4
rewrite will be introduced as a bill. He asked whether changes
to the board composition for the Marijuana Control Board (MCB)
will be necessary to conform to any changes the legislature may
make to the Alcoholic Beverage Control Board (ABC Board)
composition.
MS. FOWLER answered that nothing requires the two boards to
match, although the Department of Commerce, Community & Economic
Development (DCCED) does see some benefit to the boards
matching, but it would not necessarily mean revisiting the
Marijuana Control Board (MCB) composition. She agreed that the
department anticipates that a Title 4 rewrite will come before
the legislature.
3:28:49 PM
CHAIR OLSON asked to reopen public testimony on HB 123.
3:29:26 PM
WES SCHACHT, Member, Kachemak Cannabis Coalition, offered his
support for a separate board. Even though the substances are
somewhat related, they are different in numerous ways, he said.
3:30:48 PM
The committee took an at-ease from 3:30 p.m. to 3:32 p.m.
3:32:04 PM
MIKE TONGA wondered why the legislature was putting together a
[board]. He said he recently watched the [Senate] Finance
Committee take up several amendments that related to
"recreational stores." His community would be required to "opt
in" to have a recreational store. He expressed concern that the
first stores would not come on line until July 2016, but it
would come up at the earliest in the August primary election.
Given the 90 days it would take to certify an election, a store
could not open until mid-November.
CHAIR OLSON pointed out that he is testifying on a different
bill and the bill before the committee today will set up a
framework for the Marijuana Control Board (MCB), which does not
have anything to do with the bill that was taken up by the
Senate Finance Committee. He suggested that Mr. Tonga submit
his comments in writing.
3:34:21 PM
CHAIR OLSON, after first determining no one wished to testify,
closed public testimony on HB 123.
[HB 123 was held over.]
3:34:26 PM
The committee took an at-ease from 3:34 p.m. to 3:35 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB132 ver E.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Sponsor Statement.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Sectional Analysis.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Draft Proposed Blank CS ver P.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Summary of Changes Ver E to Ver P.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Fiscal Note-DCCED-AGDC-3-05-15.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Sectional Analysis ver P.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Letter-Gov to House 3-02-15.PDF |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Supporting Documents-Background-AGPA SOI Letter-9-14-2012 and Backup.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Supporting Documents-Mike Prax.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |
| HB132 Opposing Documents-Lynn Willis-3-06-15.pdf |
HL&C 3/16/2015 3:15:00 PM |
HB 132 |