Legislature(2015 - 2016)BELTZ 105 (TSBldg)
04/16/2015 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB131 | |
| HCR10 | |
| SB107 | |
| HB41 | |
| HB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 131 | TELECONFERENCED | |
| + | HCR 10 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| += | SB 107 | TELECONFERENCED | |
| + | HB 123 | TELECONFERENCED | |
| + | HB 12 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 123-ESTABLISH MARIJUANA CONTROL BOARD
6:27:09 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 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." She noted the new Senate committee
substitute (CS).
6:27:36 PM
SENATOR GIESSEL motioned to adopt the Senate CS for CS for HB
123, labeled 29-GH1110\S, as the working document.
CHAIR COSTELLO objected for discussion purposes. She asked Mr.
Eiler to present the Senate CS.
6:28:12 PM
WESTON EILER, Staff, Senator Costello and the Senate Labor and
Commerce Committee, said he would explain the changes that
appear in the work draft version S.
Page 2, lines 22-30, the language in subsections (c) and (d) is
deleted. These sections factor in the experience of the
executive director when filling the other sectors on the board.
The CS removes this new and unusual policy call.
Page 3, line 30, the CS changes from two years to three years
the number of successive terms a member may serve on the board.
Members are appointed to staggered terms and this change will
allow board members the opportunity to serve a little longer,
particularly the person who is appointed to serve one year. This
will allow some institutional knowledge and experience to be
built up in the board. Responding to a question from Senator
Stevens, he directed attention to the transition language in
Section 10 on page 7. It lays out the staggered terms that are
customary for establishing a new board.
Page 6, line 30, the sunset for the Marijuana Control Board was
changed from June 30, 2018 to June 30, 2017. The shortened
timeline for this new board allows the legislature to review the
potential issues sooner rather than later.
6:33:32 PM
CHAIR COSTELLO removed her objection. Finding no further
objection, version S was before the committee. She asked Mr.
Eiler to review the makeup of the board outlined on page 2,
lines 16-20.
MR. EILER explained that this language spells out the five seats
on the Marijuana Control Board. There is one person from the
public safety sector; one person from the public health sector;
one person currently residing in a rural area; one person
actively engaged in the marijuana industry; and one person who
is either from the general public or actively engaged in the
marijuana industry.
SENATOR STEVENS asked if the public health sector wouldn't be
someone from a state office.
MR. EILER said he didn't read it that way, but would defer to
Ms. Franklin.
6:35:30 PM
CYNTHIA FRANKLIN, Director, Alcoholic Beverage Control Board,
Department of Commerce, Community and Economic Development
(DCCED), explained that this language mirrors the language in
Title 4 regarding the makeup of the Alcoholic Beverage Control
Board. It prohibits anyone who is currently employed in any of
those state or federal roles from serving on the board, but the
governor and legislature would be looking for people who have
that type of experience in their background.
CHAIR COSTELLO asked if that is partially because the time
commitment of this board would preclude someone who is currently
serving in that sector.
MS. FRANKLIN replied it's that and the potential for a conflict
of interest between agency work and the board.
CHAIR COSTELLO asked her to explain how the language on page 7,
lines 9-12, affects the initial appointment of the public
member. Her understanding is that initially the only public
member will be the rural seat, because the governor would be
prohibited from choosing a public member instead of an industry
member for the initial appointment.
6:40:58 PM
MS. FRANKLIN agreed the language appears to prohibit the
governor from choosing a public member instead of an industry
member for the initial appointment.
SENATOR STEVENS asked if these five positions are salaried.
MS. FRANKLIN answered no; these people are volunteers.
SENATOR GIESSEL said she has a different interpretation of the
language in subsection (b) on page 2, lines 12-15. It says a
member of the board may not hold any other state or federal
office, either elective or appointive. It does not say that a
police officer or public health nurse can't serve on the board.
CHAIR COSTELLO agreed with the interpretation.
SENATOR STEVENS asked Ms. Franklin if that was her
interpretation.
MS. FRANKLIN said the people serving on the [ABC] Board
currently are employed. They are prohibited from being employed
by the state through an appointment process and they cannot be
employed by the state or federal government through an elective
process. She reiterated that this is the same language that has
been used for 30 years to appoint members to the ABC Board. She
is unaware of any controversy in the interpretation of the
language.
6:44:45 PM
SENATOR GIESSEL expressed concern with the shortened time period
on page 6, line 31.
CHAIR COSTELLO explained that it's not a true sunset because the
voter initiative stands until that time; it's just the
opportunity that a sunset brings. It allows the legislature to
bring the players back in the public venue and discuss the
board's progress and challenges.
SENATOR GIESSEL said she appreciates the value of a sunset
review, but a request through the Legislative Budget and Audit
for a report can be made at any time.
6:47:39 PM
CHRIS VLADICK, Commissioner designee, Department of Commerce,
Community and Economic Development (DCCED), stated his belief
that a marijuana control board should be established. He said
this is a bare bones approach given the state's financial
situation and he looks forward to working with the legislature
on this matter.
MS. FRANKLIN highlighted two imperatives about the bill, the
first of which is that it funds the initiative and safely
implements regulations related to the regulation of marijuana.
Finally, if the bill doesn't pass the voter initiative directs
that the ABC Board will take on the task of regulating this
substance. She reminded the committee that these volunteers have
already taken on the daunting task of rewriting the alcohol
statutes and to ask them to take on this new substance imposes
an undue burden and does a disservice to the work that is being
done on alcohol.
She concluded that it is important to have the enforcement and
licensing personnel able to address both substances, but it does
not make sense to distract ABC Board members from their
important task and split their attention between these two
substances. She urged the committee to support the concept of
having two groups tackle these substances separately.
6:50:59 PM
CHAIR COSTELLO opened public testimony.
6:51:17 PM
PAUL THOMAS, Vice Chair, Alaska CHARR, testified in support of
establishing a marijuana control board and adding funding for
the extra positions. The ABC Board is fully involved in the
Title 4 rewrite so it is critical to get the new board up and
running as fast as possible.
6:52:13 PM
KATE BURKHART, Executive Director, Advisory Board on Alcoholism
and Drug Abuse and the Alaska Mental Health Board, explained
that these boards are the statutory advisory boards on issues
related to substance abuse and mental health. She said she
submitted written testimony expressing complete support for the
passage of HB 123. It is imperative to have the ability in both
human and financial resources to safely and effectively
implement Ballot Measure 2 in a way that mitigates public harm.
She related that there has been great progress in the public
health issues related to underage drinking and alcohol abuse in
the last 20 years, and the ABC Board has been a large part of
that. She expressed concern that a diversion of resources from
the effective regulation and enforcement of alcohol laws will
set this progress back.
She related that the boards that she serves on operate in much
the same manner as is proposed in the bill. There are two boards
with a shared staff. The boards work in concert but each
represents a unique constituency and brings unique expertise to
the work they do. This is cost effective and a highly effective
way of doing business, as it could be with separate alcohol and
marijuana boards.
6:54:25 PM
JASON HARDER, representing himself, Copper Center, Alaska,
testified in support of HB 123. He pointed out the bill gives
rural Alaska a seat on the board so rural Alaska should be able
to participate in the commercial aspect of Ballot Measure 2.
However, SB 30 opts out all of rural Alaska from the commercial
business associated with marijuana, which doesn't make sense. He
asked the committee to not opt out people in rural communities
who do not have a way to opt back in.
6:56:12 PM
CHAIR COSTELLO closed public testimony.
6:56:21 PM
SENATOR GIESSEL motioned to report HB 123, labeled 29-GH1110\S,
from committee with individual recommendations and attached
fiscal note(s).
6:56:38 PM
CHAIR COSTELLO announced that without objection SCS CSHB
123(L&C) is reported from the Senate Labor and Commerce Standing
Committee.