Legislature(2017 - 2018)BELTZ 105 (TSBldg)
03/13/2017 01:30 PM Senate JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB77 | |
| HB104 | |
| SB6 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 104 | TELECONFERENCED | |
| += | HB 77 | TELECONFERENCED | |
| += | SB 6 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 6-INDUSTRIAL HEMP PRODUCTION
1:53:47 PM
CHAIR COGHILL reconvened the meeting and announced the
consideration of SB 6. He solicited a motion to adopt the
proposed committee substitute (CS).
1:54:16 PM
SENATOR COSTELLO moved to adopt the CS for SB 6, labeled 30-
LS0173\I, as the working document.
CHAIR COGHILL objected for an explanation of the changes.
1:54:34 PM
JORDAN SHILLING, Staff to Senator John Coghill, Alaska State
Legislature, reviewed the changes in SB 6, version I, speaking
to the following document:
Page 2, line 20 through page 3, line 8:
A new section is added to the bill under AS 03.05.010
regarding the powers and duties of the commissioner of
natural resources. To this list of powers and duties
is added, regulating industrial hemp. Under these
duties, the commissioner will be required to specify
approved sources and varieties of industrial hemp
seed, require registered growers to test for THC
content at the time of harvest, be authorized to
conduct random testing of industrial hemp and provide
information regarding general production practices
including the establishment of isolation distances.
This section also requires that the department submit
a list of registered growers of industrial hemp to the
marijuana control board and the department of public
safety. The list also includes the expiration date of
the registration.
Page 3, lines 20 through 26:
A stop sale order shall be issued for any plant with a
THC level over .3 percent and the commissioner shall
notify the marijuana control board and the department
of public safety when a stop sale order if issued.
Page 5, lines 13 through 15
Industrial hemp produced under this section cannot be
used to produce hashish, hashish oil or marijuana
concentrates.
Page 5, lines 16 and 17
Producing Industrial Hemp without a registration is a
violation with a penalty of $500.
Page 5, lines 26 through 31:
Registrants must possess proof of industrial hemp
registration while transporting.
Page 7, lines 20 through 23:
Establishes a sunset date for this bill of June 30,
2022.
1:58:06 PM
SENATOR WIELECHOWSKI asked if the entire bill is repealed in
2022.
MR. SHILLING directed attention to Section 10 that basically
repeals SB 6 in five years. It lists the [nine] sections in
Title 3 and [one] section in Title 17 that will be entirely
repealed in 2020. He noted that [AS 17.20.020(e)] relates to the
definition of marijuana.
CHAIR COGHILL added that the provisions is Sections 6 and 9 will
automatically be repealed if the pilot program isn't reinstated.
SENATOR WIELECHOWSKI asked where the definition for marijuana is
found.
MR. SHILLING explained that Sections 6 and 9 put brackets around
the additional language regarding hemp and that language isn't
deleted until 2022. He clarified that the definition of
marijuana isn't deleted, just the extra reference to hemp.
SENATOR WIELECHOWSKI asked if anyone who wants to grow
industrial hemp in the next five years would have to go through
this pilot program.
MR. SHILLING answered yes.
SENATOR COSTELLO asked if businesses that participate in the
pilot program will need a business license.
MR. SHILLING deferred the question to Buddy Whitt.
2:01:48 PM
BUDDY WHITT, Staff, Senator Shelly Hughes, advised that business
licensing requirements would be the same as any other business
that operates in the state.
SENATOR COSTELLO pointed out that business licenses are good for
two years, so a business owner could have a license to conduct
business for an additional year after the pilot program sunsets.
MR. WHITT agree that could happen if the statute isn't
reauthorized.
SENATOR COSTELLO suggested the bill should anticipate that
potential circumstance.
MR. WHITT acknowledged the oversight and suggested further
discussion.
CHAIR COGHILL commented that a business license can be so
general that a certification may not be useful.
SENATOR COSTELLO observed that the language on page 2, lines 28-
29, seems broad.
MR. WHITT responded that the language could be tightened with
the chair's permission.
2:04:20 PM
SENATOR WIELECHOWSKI said the language on page 4, lines 10-14,
talks about fees that will be collected but he assumes none will
be collected because the fiscal note is zero.
MR. WHITT said he would have a revised fiscal note and an answer
to the question before the next hearing.
SENATOR WIELECHOWSKI pointed out the conflict in the admittedly
old fiscal note. It shows zero costs through 2023 but the
narrative says the cost of administering the registration
program will be determined after the regulations are drafted.
He also expressed interest in what is being authorized on page
2, lines 28-29.
2:06:26 PM
MR. SHILLING said it was the chair's intent that the random
testing be specific to delta-9-tetrahydrocannabinol. He
acknowledged the benefit of tightening that language.
SENATOR WIELECHOWSKI directed attention to the language
regarding isolation distance on page 3, lines 3-5, and asked the
intent on determining isolation distance.
MR. WHITT noted that the chair's request in drafting this CS was
to put the distances in statute instead of regulation. He
deferred further explanation to Mr. Carter.
CHAIR COGHILL asked Mr. Carter to address the question.
2:08:10 PM
ROB CARTER, Division of Agriculture, Plant Materials Center,
Palmer, Alaska, explained that isolation distances are set to
maintain true type and quality for any crop that is produced for
seed. In this context the isolation distance is to keep
pollination solely within the industrial hemp crop to ensure
that the progeny or seed that is produced stays below the .3
percent THC threshold.
SENATOR WIELECHOWSKI asked what would happen if someone's home
marijuana crop fell inside the isolation zone.
MR. CARTER said it wouldn't create a problem and it wouldn't
void the isolation distance because the crop wouldn't be to
produce seed for further production. He added that globally
there is greater concern that hemp would contaminate marijuana
pollination that the reverse.
SENATOR MEYER asked what happens to a crop that tests above the
.3 percent THC threshold.
MR. CARTER explained that the division issues a stop order if it
identifies any crop that doesn't meet either state or federal
regulations, and the product must be destroyed or made inviable.
That is currently done at the discretion of the director or the
commissioner. For industrial hemp it could be as simple as
mowing the crop as long as it is made unmarketable and unusable.
CHAIR COGHILL asked Mr. Shilling to review the provisions that
address an industrial hemp crop that tests above the .3 percent
THC threshold.
MR. SHILLING directed attention to page 4, lines 25 and 29. An
individual who has industrial hemp that is between .3 percent
and 1 percent THC can recondition the crop, but a crop with a
THC level above 1 percent must be destroyed. In any event, it is
a violation to grow a crop of industrial hemp that has a THC
level above the .3 percent threshold.
CHAIR COGHILL asked Mr. Whitt to discuss the significance of the
percentages.
MR. WHITT explained that the USDA considers 0.3 percent THC the
point at which there is no measurable effect on the body.
Scientists consider 1.0 percent THC the point below which there
is no chemical effect on the human body.
CHAIR COGHILL asked if 1 percent is a recognized threshold in
federal law.
MR. WHITT offered to share the studies the federal government
has conducted.
2:15:27 PM
SENATOR MEYER expressed concern about effectively and safely
destroying a crop that has a THC level above 1 percent.
CHAIR COGHILL observed that it raises a question about the black
market value.
CHAIR COSTELLO referenced page 4, lines 21-22, and asked if the
department plans to sell hemp seeds.
CHAIR COGHILL asked Mr. Carter if that language has value.
MR. CARTER replied the language does have value. He said because
it can be very difficult to import hemp seeds, state
agricultural departments have assumed a role in the importation
to get the material across state lines for pilot programs.
SENATOR COSTELLO voiced reservations about giving the department
the ability to sell industrial hemp seed and questioned whether
the department would inspect the seed it sells.
MR. CARTER replied it is well known in the scientific community
that the THC value in hemp seed is close to absolute zero. The
Division of Agriculture Plant Materials Center already does
certification and testing as it is the only internationally
certified seed laboratory in Alaska. One of their missions is to
support and promote agricultural industries in the state. In
conjunction with the USDA and the University of Alaska Fairbanks
they make and maintain foundation level seed for Alaska's
agricultural industry. Every year they have a seed sale of
native plants, grasses and grains for forage and feed that is
sold around the state for agricultural and revegetation
purposes.
2:20:29 PM
CHAIR COGHILL opened public testimony on SB 6.
2:20:41 PM
RONDA MARCY, CEO/Owner, Alaska Hemp Industries, Mat-Su, Alaska,
testified in support of SB 6. She reviewed her educational
accomplishments and certifications and explained that her
company is trying to establish an industry to make hemp
insulation. She is also interested in turning industrial hemp
seed into fish food as a way of helping Alaska fisheries become
stronger and healthier. She expressed disappointment that the
bill this year establishes a five-year pilot program when 10
years could work just as well. She emphasized that Mr. Carter's
statement that hemp growers won't be worried about marijuana
that is grown nearby is not true. She maintained that marijuana
would affect the THC content in a hemp crop and that there is no
scientific distinction between a hemp seed and a marijuana seed.
It is noteworthy that the green part of the hemp plant has a
higher nutritional content than alfalfa and the seeds are packed
with omega fatty acids.
2:25:06 PM
BRYAN ZAK, representing himself, Homer, Alaska, stated that he
supports SB 6, but his preference is to do away with the pilot
program, separate it entirely from marijuana and identify
industrial hemp as an agricultural product. A robust industrial
hemp industry could help the economy of Alaska.
2:27:04 PM
CATHERINE ULMER, representing herself, Homer, Alaska, testified
in support of SB 6 but stated her preference for the original
bill. She emphasized that Alaska needs an income-producing
agricultural product like industrial hemp. It could be used in
sustainable building projects and to manufacture rope.
2:28:09 PM
AARON RALPH, representing himself, Anchorage, Alaska, testified
in support of SB 6. Referring to earlier testimony, he opined
that it would be more likely for hemp to cross pollinate with
marijuana than the other way around. He also listed the
analgesic and medical benefits of hemp. It is non-psychoactive.
2:30:12 PM
LARRY DEVILBISS, representing himself, Palmer, Alaska, testified
in support of SB 6. He stated that he is not an advocate of
marijuana, but he does support industrial hemp. Speaking as a
farmer, he opined that hemp will grow in Alaska but not for seed
production so the question about cross pollination should not be
an issue. He predicted that hemp would be grown primarily for
feedstock for cattle. It shouldn't be much different than
growing Timothy grass or Bromegrass.
2:32:48 PM
SENATOR WIELECHOWSKI asked what the startup costs would be for
an industrial hemp farm because that could be a deterrent if the
program ends after five years.
MR. DEVILBISS replied it wouldn't be much for someone who is
already farming. He added that he was disappointed to see that
this is just a pilot program, but the Division of Agriculture
could subcontract to private farmers.
CHAIR COGHILL said the idea for the pilot project was based on
federal rules, but not necessarily the timeline.
2:34:57 PM
SUZI TOWSLEY representing herself, Seward, Alaska, testified in
support of SB 6 in its original form. Speaking as a business
person and entrepreneur, she encouraged the legislature to make
it as simple as possible to legally grow hemp. She expressed
concern that the five-year sunset on the program makes startup
costs prohibitive. She also highlighted the benefits of
Cannabidiol (CBD) oil.
CHAIR COGHILL explained that the bill is in the Judiciary
Committee to look at the federal law and establish
accountability measures. He asked the sponsor to speak to the
timeline of the pilot program.
2:37:18 PM
SENATOR SHELLY HUGHES, Alaska State Legislature, sponsor of SB
6, stated that she would like it to be as easy as possible for
people to grow industrial hemp. As an agricultural crop it has
potential to become livestock feed. Increasing the size of herds
provides an opportunity increase the amount of Alaskan-grown
beef and pork in local grocery stores. She noted that Mr. Carter
is getting more calls each week from farmers who are seriously
interested in growing hemp.
CHAIR COGHILL asked about the timeline for the pilot program.
SENATOR HUGHES voiced support for an extension and deferred
further comment to Rob Carter.
CHAIR COGHILL asked if the five-year timeline could be modified.
MR. CARTER answered yes; no other states have a sunset clause
for their pilot programs and the 2014 farm bill did not have a
designated timeline.
2:41:07 PM
CHAIR COGHILL asked at what level a marijuana plant becomes
valuable for its THC effect.
MR. CARTER advised that strains of cannabis sativa can have THC
levels that range from 15 percent to arguably 30 percent.
CHAIR COGHILL offered his understanding that hemp hasn't been
grown in Alaska before.
MR. CARTER clarified that the university had a successful
program many years ago but there has been no research
identifying the new cultivars that have been specifically bred
for industrial hemp worldwide. From an agronomic standpoint it
is unclear how the photo period, moisture, and poor soil in
Alaska will affect the THC value or survivability. In any event,
industrial hemp is cultivated and bred to keep the THC value at
.3 percent or lower. The bill clearly outlines the process if
the THC happens to rise above that level. He concluded, "I would
think that if anyone was trying to game the system and tried to
pass off industrial hemp with a 2 percent THC in the
recreational market, they'd probably get laughed out of the
store."
2:43:49 PM
SENATOR KELLY asked if hemp has a higher calorie count than
grass or hay.
MR. CARTER said the early research indicates that the feed value
of industrial hemp significantly surpasses Timothy grass,
Bromegrass, and native plants.
SENATOR WIELECHOWSKI asked if any other Alaskan agricultural
products have similar requirements for the farmer: to register
the product, have a GPS location on the farm, have random
testing, pay for the testing, pay a fee to sell the product, and
list the buyer.
MR. CARTER answered no; seeds that are certified to meet federal
labeling requirements have stricter guidelines but not to that
extent.
SENATOR WIELECHOWSKI asked if he knows whether the founding
fathers had similar requirements when they grew and sold hemp.
MR. CARTER said he'd be very surprised if they did.
2:46:43 PM
CHAIR COGHILL restated that the bill was referred to this
committee because of the longstanding relationship between hemp
and marijuana, which is illegal under federal law.
He stated that he would hold SB 6 in committee with public
testimony open.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 104 - Supporting Document - Letter Anchorage Bar Association.pdf |
SJUD 3/13/2017 1:30:00 PM |
HB 104 |
| SB 6 - Sectional Analysis (ver. I).pdf |
SJUD 3/13/2017 1:30:00 PM |
SB 6 |
| SB 6 - Explanation of Changes (ver. I).pdf |
SJUD 3/13/2017 1:30:00 PM |
SB 6 |
| CS for SB 6 - Version I.pdf |
SJUD 3/13/2017 1:30:00 PM |
SB 6 |