03/28/2016 01:30 PM Senate JUDICIARY

            SB 8-INDUSTRIAL HEMP PRODUCTION LICENSES                                                                        
                                                                                                                                
2:31:41 PM                                                                                                                    
VICE CHAIR COGHILL announced the  consideration of SB 8. He noted                                                               
this is the first hearing on the bill.                                                                                          
                                                                                                                                
2:32:17 PM                                                                                                                    
SENATOR  JOHNNY  ELLIS,  Alaska State  Legislature,  as  sponsor,                                                               
introduced SB 8.  He stated that the bill would  change state law                                                               
to make  the cultivation of  industrial hemp legal. He  called it                                                               
the  "Freedom  to  Farm"  bill.  He said  there  is  a  committee                                                               
substitute  (CS) for  the committee  to  consider and  it has  no                                                               
fiscal impact. He noted there has  been no opposition to the bill                                                               
and  it has  received statewide  support. The  bill says  "no" to                                                               
federal overreach.                                                                                                              
                                                                                                                                
SENATOR ELLIS  related that  industrial hemp  is an  ancient crop                                                               
that has been  cultivated by humans for thousands  of years. Hemp                                                               
got caught up  in the anti-drug hysteria at the  federal level in                                                               
a very  ignorant fashion.  He said  that George  Washington, John                                                               
Adams,  and Thomas  Jefferson  all grew  hemp  on their  personal                                                               
farms. The first  draft of the U. S. Constitution  was written on                                                               
hemp paper.                                                                                                                     
                                                                                                                                
He stated  that Alaskan industrial  hemp production is a  tool to                                                               
fight federal overreach. SB 8  gives Alaskans the freedom to farm                                                               
and rejects  any need for  federal approval. The freedom  to farm                                                               
issue  also brings  Republicans and  Democrats together,  even on                                                               
the  federal  level.  At  least 28  other  states  embrace  pilot                                                               
studies and/or hemp production.                                                                                                 
                                                                                                                                
He referred to a handout that  described the uses and benefits of                                                               
hemp.                                                                                                                           
                                                                                                                                
2:37:25 PM                                                                                                                    
VICE CHAIR COGHILL  asked if version W was  before the committee.                                                               
He said he is supportive of the bill.                                                                                           
                                                                                                                                
2:37:54 PM                                                                                                                    
SENATOR  COSTELLO moved  to adopt  the work  draft CS  for SB  8,                                                               
labeled 29-LS0195\W, as the working document.                                                                                   
                                                                                                                                
VICE CHAIR COGHILL objected for discussion.                                                                                     
                                                                                                                                
2:38:21 PM                                                                                                                    
SARAH   EVANS,  Staff,   Senator  Johnny   Ellis,  Alaska   State                                                               
Legislature, presented the  sectional analysis of SB  8. She said                                                               
Section  1 defines  industrial hemp,  which means  all parts  and                                                               
varieties of the plant containing not more than .3 percent THC.                                                                 
                                                                                                                                
Section 2 is amended by adding a new subsection to read:                                                                        
                                                                                                                                
     In  a  prosecution  under   AS  11.71.030  -  11.71.060                                                                    
     charging   the   manufacture,   delivery,   possession,                                                                    
     possession with  intent to  manufacture or  deliver, or                                                                    
     display of  a schedule VIA controlled  substance, it is                                                                    
     an  affirmative defense  that the  controlled substance                                                                    
     is industrial hemp.                                                                                                        
                                                                                                                                
VICE CHAIR COGHILL said it is a schedule VIA drug.                                                                              
                                                                                                                                
MS. EVANS continued to say that Section 3 adds a new subsection:                                                                
                                                                                                                                
     An individual manufacturing,  delivering, or displaying                                                                    
     industrial hemp is not required  to apply for licensure                                                                    
     or be licensed under  this section. In this subsection,                                                                    
     "industrial  hemp"   has  the   meaning  given   in  AS                                                                    
     11.71.900.                                                                                                                 
                                                                                                                                
VICE CHAIR COGHILL asked for the genesis of the change.                                                                         
                                                                                                                                
MS. EVANS  explained that  in the previous  version of  the bill,                                                               
there  were a  variety of  licenses and  permits required.  After                                                               
checking  with  the Department  of  Agriculture,  she found  that                                                               
industrial  hemp  did  not require  those  licenses  and  permits                                                               
because industrial hemp is legal.                                                                                               
                                                                                                                                
2:42:26 PM                                                                                                                    
VICE CHAIR COGHILL opened public testimony.                                                                                     
                                                                                                                                
2:42:32 PM                                                                                                                    
FRANK TURNEY,  Hemp Activist,  testified in support  of SB  8. He                                                               
noted the support  of many others for the bill,  such as the City                                                               
of  Fairbanks, North  Star Borough  Assembly member  John Davies,                                                               
and the  North Pole  City Council. He  agreed that  Alaska should                                                               
embrace this  economic, free-market  opportunity. He  pointed out                                                               
that  the  United States  imports  approximately  2 billion  hemp                                                               
products annually.  He said there  are over 50,000  products that                                                               
can be made out of hemp. He thanked Senator Ellis for the bill.                                                                 
                                                                                                                                
KAT UTLEY,  representing herself, testified  in support of  SB 8.                                                               
She said she  and her husband are peony growers  and she spoke in                                                               
support  of the  hemp  farming industry.  She shared  information                                                               
about the benefits of hemp plants and the potential for jobs.                                                                   
                                                                                                                                
VICE CHAIR COGHILL kept public testimony open.                                                                                  
                                                                                                                                
He removed his objection and version W was adopted.                                                                             
                                                                                                                                
He held SB 8 in committee.