Legislature(2017 - 2018)HOUSE FINANCE 519
05/12/2017 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB25 | |
| SB28 | |
| SB6 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 6 | TELECONFERENCED | |
| += | SB 28 | TELECONFERENCED | |
| += | SB 107 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HJR 23 | TELECONFERENCED | |
| += | HB 25 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 6(JUD)
"An Act relating to the regulation and production of
industrial hemp; relating to industrial hemp pilot
programs; providing that industrial hemp is not
included in the definition of 'marijuana'; and
clarifying that adding industrial hemp to food does
not create an adulterated food product."
2:40:32 PM
Co-Chair Foster OPENED public testimony.
JOHN BUADIUG, SELF, FAIRBANKS (via teleconference),
testified in favor of the legislation. He reported that it
was possible to convert hemp oil into biodiesel, which
contained hydrogen, carbon, and oxygen molecules creating
cleaner burning fuel. He cited statistics from the
Sequential Biodiesel Fuels Company that claimed emissions
reductions in carbon dioxide, carbon monoxide,
hydrocarbons, particulate matter, and sulfur dioxide
through its use.
Representative Wilson queried whether he knew anything
about cannabidiol (CBD) oil. Mr. Bauding answered that CBD
oil fell under a "different category" and that only 0.3
percent or less was contained in industrial hemp. He
declared that an individual "could not get high with
industrial hemp."
2:45:26 PM
EMBER HAYNES, SELF, TALKEETNA (via teleconference),
testified in favor of the legislation. She relayed that her
business, Denali Hemp Company, created salves, soaps, and
body products with hemp seeds and oil that she had to
outsource. She wanted to use Alaskan grown hemp for her
products. In addition, she wished to supplement her
livestock with hemp for greens, bedding, and fodder. She
offered that hemp grew well in Alaska, was a beneficial
cover crop, and that commonly used harvesting equipment
worked for hemp. Hemp was successfully harvested in other
parts of the world and that specific harvesting equipment
had been invented. She asked for the committees support.
Representative Grenn asked how long the Denali Hemp Company
was in business. Ms. Haynes answered that the company had
been making products with hemp seed oil since 2014 and she
operated another business that used it since 2008.
Representative Grenn asked for verification that she had to
outsource hemp. Ms. Haynes answered in the affirmative.
Representative Grenn asked how much her costs would
decrease if she could grow her own hemp. Ms. Haynes
answered that one acre of hemp produced approximately 50 to
70 gallons of oil per year, which was enough for her
products. In addition, the harvest would feed her
livestock. One of the challenges of the hemp industry was
finding the particular varieties that would grow in Alaska
and produce oil or other desired qualities of the plant.
Representative Grenn stated that Alaska's growing season
for hemp was challenging and asked for clarification. Ms.
Haynes answered in the affirmative. She briefly described
methods and varieties that would likely work in the state.
2:51:17 PM
COURTNEY MORAN, ATTORNEY, EARTHLAW LLC, PORTLAND, OREGON
(via teleconference), testified in support of the bill. She
related that she was an industrial hemp attorney and
advised the bill's sponsors and state's Division of
Agriculture on how to design a regulatory framework that
would support a sustainable industrial hemp program in
compliance with federal law. She hoped the bill passed
unanimously from committee.
Representative Guttenberg indicated that an issue had been
raised about the legal distance between a hemp and a
marijuana farm. He asked who administered control over the
issue in other jurisdictions. Ms. Moran answered that
Oregon did not currently have any specific isolation
designations. She detailed that farmers were encouraged to
plant only female plants as a prevention to any cross
pollination. Oregon encouraged farmers to talk with their
neighbors to limit the risk as much as possible. She
suggested the Canadian system as a model for Alaska. She
delineated that Canada had a certified seed program and the
minimum isolation distance was 5 kilometers (3.1 miles).
She qualified that specific guidelines for Alaska was
necessary to accommodate variables based on the time of
planting and pollinating, the geographic region, and
climate.
2:55:07 PM
REGINA MANTEUFEL, EXECUTIVE DIRECTOR, BACK TO WORK,
ANCHORAGE (via teleconference), testified in favor of the
bill. She was currently healing from stage IV breast cancer
and believed CBD oil was assisting in her recovery. She
listed the health benefits of CBD oil, juice from the hemp
leaves, and hemp powder and shared the methods she used to
intake hemp products. She mentioned that she was the owner
of Regina's Hotel in the Fairview neighborhood of Anchorage
as well as the Executive Director of the Back to Work
Network. She believed that her clients and customers would
benefit from taking hemp products for health. She related
antidotes and made suggestions from personal experience
regarding the use of hemp products as health supplements.
Vice-Chair Gara was glad Ms. Manteufel was recovering and
noted his support for the bill.
3:01:49 PM
STEVE ALBERS, KENAI SOIL AND WATER CONSERVATION DISTRICT,
KENAI (via teleconference), testified in support of the
bill. He had researched the numerous benefits of industrial
hemp and endorsed the legislation.
3:02:32 PM
Representative Guttenberg asked whether the Department of
Commerce, Community and Economic Development (DCCED) was
satisfied with DNR regulations regarding the distance
between an industrial hemp and legal marijuana farm.
ERIKA MCCONNELL, DIRECTOR, ALCOHOL AND MARIJUANA CONTROL
OFFICE, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT (via teleconference), felt that the bill
"adequately addressed" the regulatory issues. She indicated
that the Division of Agriculture was tasked with writing
the regulations regarding industrial hemp farms, including
the distance issue. She assured the committee that the
Marijuana Control Board would "pay close attention to the
regulation's" development. In addition, provisions in the
legislation required division communications with the
board.
3:05:07 PM
AT EASE
3:26:44 PM
RECONVENED
Co-Chair Foster CLOSED public testimony.
Representative Kawasaki referred to provisions in the
legislation requiring that the fees for application or
registration equaled regulatory costs. He wondered whether
estimates for the regulatory costs were known.
BUDDY WHITT, STAFF, SENATOR SHELLEY HUGHES, deferred the
question to the Department of Natural Resources.
Representative Kawasaki indicated that he would obtain the
answer at a later time.
Co-Chair Foster MOVED to ADOPT Amendment 1, 30-LS0173\E.1
(Bruce, 5/3/17) (copy on file):
Page 1, line 3, following "marijuana;":
Insert "providing that cannabidiol oil is not included
in the definition of 'hashish oil';"
Page 5, line 25:
Delete ", but do not include cannabidiol oil"
Page 6, following line 23:
Insert new bill sections to read:
"* Sec. 6. AS 11.71.900(11) is amended to read:
(11) "hashish oil" means the viscous liquid
concentrate of tetrahydrocannabinols extracted
from the plant (genus) Cannabis, but does not
include cannabidiol oil;
* Sec. 7. AS 11.71.900 is amended by adding a new
paragraph to read:
(31) "cannabidiol oil" means the viscous liquid
concentrate of cannabidiol extracted from the plant
(genus) Cannabis containing not more than 0.3
percent delta-9 tetrahydrocannabinol;"
Renumber the following bill sections accordingly.
Representative Wilson OBJECTED for discussion.
Co-Chair Foster explained that the amendment had been
brought to his attention by the Department of Law. He
detailed that the definition of hash oil in AS
11.71.900(11) had not been amended and would include
cannabidiol oil (CBD) therefore, CBD would still fall under
the definition of hashish oil in the criminal code. The
amendment, if adopted, required the definition of hash oil
in statute to be redefined and necessitated a Concurrent
Resolution due to triggering a title change in the bill.
3:30:10 PM
Representative Kawasaki asked for the Department of Law
(DOL) to address the difference between the CBD oil and the
recent confiscation by the state of cannabidiol oils. Mr.
Whitt delineated that the section was added in response to
concerns that a method of concentrating large amounts of
industrial hemp to create a THC product would be
discovered. He reminded the committee that industrial hemp
contained 0.3 percent or below of delta-9
tetrahydrocannabinol (THC). He related that hash oil
contained the "psycho addictive" elements of marijuana. Due
to the current legal definitions of hashish oil CBD oil was
illegal in the state. He acknowledged that three
confiscations of CBD oil took place since January 2017,
which was a costly and wasteful endeavor since CBD oil had
no psycho addictive effects. The amendment ensured that CBD
oil was removed from the criminal statute.
Representative Guttenberg referred to earlier public
testimony regarding extracting 55 gallons of hemp oil from
an acre of hemp. He asked whether the amendment was
designed to prevent the ability to concentrate the 55
gallons down to one ounce of hash oil. Mr. Whitt replied in
the affirmative. Additionally, he spoke to the desire to
prevent creating an illegal product out of a legal product.
Co-Chair Seaton surmised that the percentage over 0.3
percent was the part that made the product change from
cannabidoil to hashish oil. Mr. Whitt answered in the
affirmative. He elaborated that the goal of SB 6 was to
create a program that produced products that excluded the
possibility of any associated criminal activity.
3:36:39 PM
Representative Guttenberg wondered at what point - if
someone had a 55 gallon drum of hemp oil, they could
legally turn it into hash oil. He asked if there was a way
to legally go above 0.3 percent with industrial hemp.
KACI SCHROEDER, ASSISTANT ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, offered that she did not know
the science behind the issue and whether it was possible to
produce hash oil from CBD oil. However, producing anything
above the 0.3 percent threshold was illegal.
Representative Wilson WITHDREW her OBJECTION.
There being NO OBJECTION, Amendment 1 was ADOPTED.
SB 6 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the schedule for the following
day.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 28 LOS Petersburg Economic Development Council 1.26.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
SB 28 |
| HJR23 Additional Documents-Ak Perm Fund financial history and projections 5.9.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
HJR 23 |
| HJR23 Additional Documents-Presentation AK Perm Fund Corp 5.9.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
HJR 23 |
| HJR23 Sponsor Statement.pdf |
HFIN 5/12/2017 1:30:00 PM |
HJR 23 |
| HJR23 Supporting Document-APRN - PFD cuts 5.9.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
HJR 23 |
| HJR23 Supporting Document-ISER How PFDs reduce poverty 5.9.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
HJR 23 |
| HJR23 Supporting Document-Leg Research Effect of PFD Reductions 5.9.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
HJR 23 |
| SB 6 - Amendment 5.12.17.pdf |
HFIN 5/12/2017 1:30:00 PM |
SB 6 |
| SB6_Support_051217.pdf |
HFIN 5/12/2017 1:30:00 PM |
SB 6 |
| HB25_Support_051217.pdf |
HFIN 5/12/2017 1:30:00 PM |
HB 25 |