Legislature(2015 - 2016)BARNES 124
03/20/2015 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB123 | |
| HB120 | |
| HB58 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 120 | TELECONFERENCED | |
| + | HB 58 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 123 | TELECONFERENCED | |
HB 123-ESTABLISH MARIJUANA CONTROL BOARD
3:22:45 PM
VICE CHAIR HUGHES announced that the only 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."
3:23:19 PM
REPRESENTATIVE TILTON moved to adopt the proposed committee
substitute (CS) for HB 123, labeled 29-GH1110\W, Martin,
3/14/15, as the working document.
VICE CHAIR HUGHES objected for the purpose of discussion.
3:23:39 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State
Legislature, on behalf of the House Labor & Commerce,
Representative Kurt Olson, Chair, explained the changes in the
proposed committee substitute (CS) for HB 123, Version W. He
directed attention to page 2, line 8, and stated this would add
additional language, "as a regulatory and quasi-judicial
agency." He explained that this language was taken from AS
04.08 related to the Alcoholic Beverage Control Board (ABC
Board) since the department envisions the marijuana program will
be similar to the laws for regulating alcoholic beverages.
3:25:31 PM
MR. JACKSON referred to page 2, lines 20, which would reformat
language, such that the language from proposed AS 17.38.080(b)
and (c) was combined into subsection (b) and definitions were
added to subsection (h) [on page 3].
MR. JACKSON stated that technical amendments were made on page
2, lines 21-29, including renumbering. In addition, technical
changes were made on page 3, lines 3-5, to subsection (g), and
on page 3, line 8, "title" was replaced with "chapter" to
reflect that Title 38 contains other sections of law.
MR. JACKSON directed attention to page 3, lines 10-13 to the
definition added to subsection (h) for "marijuana industry."
3:27:15 PM
MR. JACKSON turned to page 3, lines 28-29, which would add the
language "... within 30 days by appointment of the governor for
the unexpired portion of the vacated term." The intention was
to have the governor fill any vacant positions as quickly as
possible, he said.
3:27:36 PM
MR. JACKSON referred to page 4, lines 6-9, to language added
from AS 04.06.050 that would require the board to meet at least
once each year in each judicial district. This language was
necessary in order to consider the need to modify existing
regulations with respect to local issues in each jurisdiction,
he said.
MR. JACKSON directed attention to page 4, lines 11-13 and lines
29-31, which would incorporate several technical drafting style
changes. In addition, on line 11 the word "all" was deleted.
MR. JACKSON turned to page 5, lines 14, which would add two new
subsections, noting that subsection (f) would require notifying
municipalities and licensees of regulations and statute changes.
MR. JACKSON directed attention to page 5, lines 21-24, which
would add new language to allow the Marijuana Control Board
(MCB) the authority to deal with prostitution and sex
trafficking.
MR. JACKSON referred to page 6, line 5, a technical drafting
style change. He directed attention to page 6, lines 22-23,
which would add a sunset date for the proposed Marijuana Control
Board (MCB) of June 30, 2018 to match the proposed sunset date
for the Alcoholic Beverage Control Board (ABC Board).
3:31:27 PM
MR. JACKSON referred to page 7, lines 1-15, to language that
would require membership of the proposed Marijuana Control Board
(MCB). This provision would require the governor to appoint two
members from people who have alcohol industry experience, retail
or wholesale, whose terms would end in two years. He related
the rationale used, that the people in the alcohol industry have
sufficient knowledge of the regulatory process and oversight
activities of the ABC Board and since the two industries and
boards parallel one another, it made sense to allow them to
serve. Another concern was that the bill allowed membership
from the lawful practice in the marijuana industry, yet the
state doesn't have a "lawful" practice. He expressed concern
that the proposed Marijuana Control Board (MCB) might not have a
sufficient pool of appointees to choose from.
MR. JACKSON referred to page 7, line 10-13, to a technical
drafting style changes to conform to the legislative drafting
manual style.
3:33:59 PM
REPRESENTATIVE KITO, in reference to the meetings in the
judicial districts, asked how many board meetings the proposed
Marijuana Control Board (MCB) anticipated it will hold and if
the meetings would be monthly or quarterly meetings. He asked
whether it would adequately provide opportunities for everyone
to participate. He related his understanding there were four
judicial districts and wondered if there will be standing
meetings in each one of the judicial districts the quarterly
meetings or if the board anticipated it will meet monthly.
MR. JACKSON deferred to the executive director of the Alcoholic
Beverage Control Board (ABC Board) to answer.
3:35:26 PM
CYNTHIA FRANKLIN, Executive Director, Alcoholic Beverage Control
Board (ABC Board), Department of Commerce, Community & Economic
Development (DCCED), stated that the Alcoholic Beverage Control
Board (ABC Board) currently meets five times a year, once in
each of the [judicial] districts, with an additional meeting in
Anchorage due to the volume of liquor licenses. She said the
meetings are roughly quarterly meetings that are held in Juneau,
Anchorage, Fairbanks, and Western Alaska - generally in Nome,
followed by the additional meeting in Anchorage on December.
These meetings are set at the previous meeting so the times
vary, depending on the schedules of the five volunteers. She
stated that the meetings are adequate for the ABC Board to
address any issues that have arisen as well as any community
needs. She anticipated that if HB 123 passes that the Marijuana
Control Board will meet in conjunction with the ABC Board - a
one-day meeting for the ABC Board followed by a one-day meeting
for the Marijuana Control Board (MCB) - to save travel funds for
staff travel. For the past three meetings the ABC Board has had
two-day meetings to address some of anticipated issues, she
said.
3:37:48 PM
REPRESENTATIVE KITO asked whether there may be a significantly
larger number of marijuana license requests that may require
additional meetings.
MS. FRANKLIN answered that at this time it was uncertain as to
how many licenses will be requested; however, the division
anticipates the potential need for additional meetings in the
first year or two. Certainly, to initially set up a program may
require more frequent board meetings. She said that the
statutory language in Title 4 does allow the Alcoholic Beverage
Control Board to meet at the call of the chair. She anticipated
the division would either promulgate regulations or the
Alcoholic Beverage Control Board (ABC Board) will call for
additional meetings, if necessary.
3:38:54 PM
REPRESENTATIVE JOSEPHSON, referring to Version W, related his
understanding that the proposal was to postpone a representative
from the marijuana industry for a time, perhaps up to two or
three years. He asked for her opinion since regulations would
be formed during that time. Further, he asked whether any loss
of expertise would result as a consequence. He directed
attention to the powers and duties of the board [on page 4,
beginning on line 14], which read, "(a) The board shall control
6 the cultivation, manufacture, and sale of marijuana in the
state. The board is vested with the powers and duties necessary
to enforce this chapter." He asked whether any benefit could
result from having people who have studied these issues to
immediately serve on the board.
MS. FRANKLIN answered that the Alcoholic Beverage Control Board
(ABC Board) supports having a voice on the board chosen
specifically for marijuana knowledge; however, the board was not
opposed to having a voice from the alcohol industry, with a
regulatory perspective, serve in the first two years. In fact,
the board recognized that someone with alcohol industry
experience will understand the unique position of operating
businesses in a highly regulated atmosphere, but she has
encountered people who clearly have significant knowledge of
marijuana. Certainly the cultivation aspects of marijuana was
different from the alcohol industry, she said.
3:41:05 PM
REPRESENTATIVE JOSEPHSON asked whether someone could be a law
abiding citizen but still know a tremendous amount about the
industry, in particular, due to significant information
available on the Internet or by having attended conferences in
the Lower 48.
MS. FRANKLIN agreed that a lot of information was available.
She pointed out that personal cultivation has been legal in
Alaska since 1975 so some individuals in Alaska are
knowledgeable about marijuana cultivation since they have
personally grown it. In response to a question, she stated that
the Alcoholic Beverage Control Board (ABC Board) has been on a
three-year sunset rotation, that the ABC Board is due to sunset
June 30, 2015, and HB 116 provides for an extension until June
30, 2018.
3:42:09 PM
VICE CHAIR HUGHES asked for further clarification on whether the
sunset date was set in statute and if it is always three years
or if it changes.
MS. FRANKLIN answered that a new date was set each time the ABC
Board is up for renewal, but the pattern has been to extend the
board three years.
3:43:34 PM
MR. JACKSON offered that all boards are subject to sunset and
prior to the sunset date the legislative audit reviews how well
the board is functioning and makes recommendations to the
legislature. In some instances, boards are extended up to eight
years, but the sunset date varies on a case-by-case basis. He
suggested that although the ABC Board has been extended for
three years, it may not always be extended for three years.
3:44:30 PM
REPRESENTATIVE COLVER referred to page 5, line 15, to proposed
Section 17.38.085, enforcement powers, which read:
The director and the persons employed for the
administration and enforcement of this chapter may,
with the concurrence of the commissioner of public
safety, exercise the powers of peace officers when
those powers are specifically granted by the board.
REPRESENTATIVE COLVER said this proposed section goes on to say
the board can enforce sex trafficking and prostitution. He
asked whether it was typical in [Title 4] statues related to
alcohol to grant powers of peace officers to the division's
staff.
MR. JACKSON answered yes. He stated that the language on page
5, lines 21-24 in Version W was language taken straight from the
statutes governing alcoholic beverages.
3:46:12 PM
REPRESENTATIVE COLVER asked whether that was at request of the
department or if it was language developed by the committee.
MR. JACKSON answered that the language was added in Version W by
comparing the statutes pertaining to the ABC Board and drawing a
parallel between the alcohol statutes and the proposed marijuana
statutes.
3:46:57 PM
REPRESENTATIVE COLVER assumed standards since the only
qualifications of the enforcement staff was the language in this
proposed section, " ... with the concurrence of the commissioner
of public safety ...." He assumed this language did not empower
a security guard with the ability to enforce state laws. He
said he would feel more comfortable with enforcement being done
by enforcement officers with qualifications using the standards
for certified police officers. He suggested that this provision
might need to be tweaked.
MR. JACKSON deferred to Ms. Franklin.
MS. FRANKLIN answered that the five enforcement officer
currently employed by the ABC Board are licensed peace officers
commissioned by the commissioner of public safety to enforce the
alcoholic beverage laws. The requirements are set in the State
of Alaska's job description for Investigator III and IV. These
officers receive a commission in connection with this job since
they are not granted general police officer powers granted to
local law enforcement officers or troopers. She agreed with Mr.
Jackson, that this language was derived from language in AS 04,
more specifically from AS 04.06.110, which has been in effect
since 1980. She characterized the five officers as extremely
professional and these officers tend to come from a pool of
retired active duty police officers.
3:49:51 PM
VICE CHAIR HUGHES said she maintained her objection to adopting
the proposed committee substitute for HB 123, Version W.
VICE CHAIR HUGHES announced that HB 123 would be held over.