Legislature(2015 - 2016)BARNES 124
03/23/2016 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB194 | |
| HB289 | |
| HB337 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 194 | TELECONFERENCED | |
| += | HB 289 | TELECONFERENCED | |
| += | HB 337 | TELECONFERENCED | |
HB 337-MARIJUANA TAXES;EXCESS POSSESSION;BONDS
3:38:04 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 337, "An Act relating to taxes on marijuana."
[The committee substitute for HB 337, Version H, was before the
committee.]
3:41:26 PM
KAYLSSA MAILE, Staff to Representative Gabrielle LeDoux, sponsor
of HB 337, reviewed the bill. She noted that HB 337 establishes
the bonding requirement for marijuana cultivators seeking
licensure, and the committee substitute changed the requirement
from a $5,000 cash bond to the option of either a $5,000 cash
bond, or a surety bond. In addition, the bill makes product
manufacturers and retailers secondarily liable for taxes, and
allows the Department of Revenue (DOR) to assess a tax on plants
above the legal limit for those who are not licensed as
cultivators. The other change made in the committee substitute
was to add an immediate effective date, so that the bill would
to be in effect before licenses are awarded.
REPRESENTATIVE JOSEPHSON asked for the cost to begin a
commercial operation - including lamps and all of the necessary
equipment - and a license.
MS. MAILE was unsure.
3:43:56 PM
KEN ALPER, Director, Tax Division, DOR, advised that the cost of
start-up is part of the licensing process with the Marijuana
Control Board (MCB), Alcohol and Marijuana Control Office,
Department of Commerce, Community & Economic Development, and
DOR does not have a financial relationship with any of the
potential marijuana taxpayers.
REPRESENTATIVE JOSEPHSON inquired as to whether the only fee
imposed by the state thus far is the $5,000 bond in HB 337. He
remarked:
... I just want to know what our 60 hands have imposed
on people, and if it's only $5,000, I'm, I'm going to
vote for this bill I think anyway, but I just want to
get a sense of whether we are really creating
impediments that, that were not part of the spirit of
the [Alaska Marijuana Legalization Ballot Measure 2
(2014)].
MR. ALPER stated that fees and costs are established by MCB
through the regulatory process; in fact, the legislature has not
put any direct costs on the industry.
3:46:02 PM
CYNTHIA FRANKLIN, Director, Alcohol and Marijuana Control
Office, Department of Commerce, Community and Economic
Development, offered to answer questions.
REPRESENTATIVE JOSEPHSON repeated his question.
MS. FRANKLIN advised that the cost of starting a marijuana
business depends on the type of license and on the business
model. Monies paid to the state are an annual licensing fee of
either $1,000 to $5,000, and a nonrefundable $1,000 application
fee, which is split between the state and local government.
REPRESENTATIVE JOSEPHSON estimated that the maximum range of
government fees begins at approximately $11,000, plus the
capital costs of the business.
MS. FRANKLIN pointed out that the $5,000 bond is only imposed on
the cultivator. Other types of marijuana licensing, such as for
a testing facility, would not requiring bonding.
REPRESENTATIVE TILTON asked for an explanation of the difference
between a tax and a penalty against an illegal operation.
3:49:41 PM
KONRAD JACKSON, Staff to Representative Kurt Olson, Alaska State
Legislature, relayed that Legislative Legal Services,
Legislative Affairs Agency, advised that a tax is accessible
immediately without conviction, and a fine or penalty would
require charges and conviction.
CHAIR OLSON redirected the question to Ms. Franklin.
MS. FRANKLIN confirmed that criminal penalties would still apply
because legally growing, selling, or producing marijuana
specified by the Alaska Marijuana Legalization Ballot Measure 2
(2014) only applies to individuals, corporations, and entities
that have a license. Therefore, someone growing without a
license would have criminal charges assessed regardless of
whether DOR has collected taxes.
3:52:16 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 337, Version 29-LS1490\H, Nauman, 3/10/16, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 337(L&C) was
reported from the House Labor and Commerce Standing Committee.
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