Legislature(2015 - 2016)BUTROVICH 205
03/20/2015 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB8 | |
| HJR4 | |
| SB57 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 8 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HJR 4 | TELECONFERENCED | |
| += | SB 57 | TELECONFERENCED | |
SB 8-INDUSTRIAL HEMP PRODUCTION LICENSES
3:32:13 PM
CHAIR GIESSEL announced SB 8 [version 29-L/S028|A] to be up for
consideration.
3:32:17 PM
MATT MOSER, staff to Senator Ellis, sponsor of SB 8, explained
that industrial hemp has been cultivated by humans for thousands
of years. The Declaration of Independence and the Constitution
were both written on hemp papers. It is ironic that a crop so
important to American history is still illegal today.
He said 19 states have embraced pilot studies on hemp production
across the country and it is, in fact, an issue with which to
fight federal overreach. It is also an issue that brings
Republicans and Democrats together, which is what drew Senator
Ellis to the issue originally. He said that Kentucky Senators
Mitch McConnell and Rand Paul have introduced the Industrial
Hemp Farming Act that has numerous co-sponsors.
3:34:25 PM
MR. MOSER provided a sectional analysis of SB 8 as follows:
Section 1 adds a new section to Title 3 entitled Industrial Hemp
and defining it as an agricultural crop in Alaska. It
establishes a license procedure in the Department of Natural
Resources (DNR) that allows a licensed hemp producer to plant,
grow, harvest, process, possess, sell or buy industrial hemp. It
also requires the DNR to adopt regulations.
Language on page 2, line 6, says a licensed industrial hemp
grower must document and file verification that hemp seeds they
have used are certified and document to have less than .3
percent tetrahydrocannabinol (THC), the psycho active ingredient
in recreational marijuana. Language on page 2, line 19, sets
this definition in statute.
Section 2 on page 2, line 21, creates an affirmative defense to
prosecution for a properly licensed hemp grower.
Section 3 on page 3, line 4, allows the Department of Public
Safety (DPS) to conduct a national criminal history record
check, something that other states have included in their
statutes.
Section 4 on page 3, line 6, states that a properly licensed
producer of industrial hemp is not required to be licensed as a
marijuana establishment.
3:37:40 PM
SENATOR STOLTZE asked why there has to be a criminal history
registry record check if hemp is a benign substance.
MR. MOSER answered that the sponsor agrees that it is probably
not necessary, but that component of the bill used model
legislation from other states.
3:38:46 PM
SENATOR WIELECHOWSKI said it is still considered a controlled
substance by the federal government and asked if he would be
arrested for eating a hemp granola bar.
MR. MOSER answered that hemp products across the United States
are growing by double digits every year, but right now the U.S.
is an importer of industrial hemp raw materials from China and
Canada. So, the feds won't interfere with his snack.
SENATOR MICCICHE asked if Alaska has right growing conditions
and soils to grow it.
MR. MOSER answered that there are a number of different
opinions. He found information about hemp growing in Northern
Russia, and British Columbia has a white paper about hemp
production in Canada.
3:40:33 PM
SCOTT HENDRICK, Program Director, National Conference of State
Legislature (NCSL), Denver, Colorado, said the NCSL is a
bipartisan organization that presents research and analysis to
state legislatures and doesn't take positions on issues debated
in the states. His purpose today was to provide information on
how other states have handled this issue.
He said that the increasing number of industrial hemp
discussions are driven by the inclusion of a provision in the
2014 Federal Farm bill that authorizes states to pursue
industrial hemp pilot projects through their universities or
Departments of Agriculture. Some states have passed legislation
to promote the industrial hemp industry prior to the federal law
changes last year. To date, 22 states have passed laws on
industrial hemp; 7 states - Delaware, Hawaii, Illinois,
Michigan, Nebraska, New York and Utah - have laws establishing
hemp research programs usually administered by a state agency or
university. Connecticut and New Hampshire have passed laws to
study industrial hemp. Thirteen other states - California,
Colorado, Indiana, Kentucky, Maine, Montana, North Dakota,
Oregon, South Carolina, Tennessee, Vermont, Virginia, and West
Virginia - have passed laws to establish a commercial industrial
hemp program similar to what is being considered in SB 8. Some
of these states will not start issuing licenses until they are
granted waivers from the Drug Enforcement Agency (DEA) or until
changes are made to federal law. So, some states have laws on
the books, but they aren't being acted upon now. Several states,
such as Washington and Colorado, are moving forward with their
commercial hemp programs. He would focus his remarks on these
types of laws and how they compare to the language in SB 8.
MR. HENDRICK said several other policy options adopted by other
states were not included in the legislation. He said SB 8 is
very representative of industrial hemp program laws enacted in
other states. It defines industrial hemp, establishes a
licensing scheme with regulatory requirements for growers,
provides for inspection and oversight, and grants an affirmative
defense for prosecution under state substance control laws.
Other states have general addressed these areas, too.
SB 8's definition is in line with other states' definition. Some
states have also chosen to include in their definition that the
plant must have a "Delta-9" THC concentration of not more than
0.3 percent and many specify that the THC limits are "on a dry
weight basis."
MR. HENDRICK said the licensing scheme in SB 8 is similar to
other states' laws. However, section (1)(c) doesn't require GPS
coordinates or a map of the growing area for the growing areas
as other states have required. Indiana and Kentucky prohibit
anyone who has been convicted of a drug related offense in the
last 10 years from obtaining a growers license. Some states
require written consent with the license application that
explicitly allows access to the growing property for testing and
inspections. Some states set terms for licenses stating that
they are only valid for a certain time period, usually 1-3
years. Oregon's law states that a license is a personal
privilege and not transferrable.
3:45:48 PM
Regulatory requirements in section (1)(d) have a provision for
the licensee to provide documentation that seeds planted are of
a type and variety certified to grow industrial hemp having no
more than 0.3 percent THC. Other states have more detailed seed
certification requirements in statute; for example, California's
law establishes an approved list of seed types and Colorado's
law formally establishes a seed certification program. Some
states have slightly different regulatory requirements for seed
growers as opposed to those growing the crop, itself. The
requirements for the seed growers relate to inspection, keeping
records of who they sell to, preserving those records for a
certain time period, and requirements as the amount and type of
inventory they can hold at any one time.
MR. HENDRICK said SB 8 would also require the licensee to share
with the state any contracts to grow industrial hemp. This is a
small difference from others, but Colorado actually requires
proof of a contract before a license can be issued. Most of the
other regulatory requirements closely align with language in
other states. He said some state laws have more detailed
oversight for things like how inspections and testings can take
place and what to do if test samples come back with THC amounts
higher than lawfully acceptable.
3:47:21 PM
Section 2 of SB 8 provides an affirmative defense for
prosecution under the Controlled Substance laws. Some states,
such as Colorado, extended this protection to include people who
are processing, selling or otherwise distributing industrial
hemp grown by a person who is registered under their law. In
Montana, in order for the defense to apply, the licensee must
"have valid applicable controlled substances registrations with
the U.S.DEA."
3:48:01 PM
MR. HENDRICK said additional policy options that other states
have adopted are create a board or advisory committee to advise
on laws, regulations, enforcement and budgetary matters. Some
have adopted detailed seed registration certification programs.
Some specifically set up an industrial hemp fund to support the
program. Money going into these funds usually includes
registration or licensing fees. Some states specifically
authorize grants from foundations or private individuals.
Colorado uses a portion of its revenues from marijuana sale
taxes to support the industrial hemp fund, as well.
3:48:59 PM
In terms of penalties, some states authorize civil penalties of
up $2,500 per violation and some have minimum acreage
requirements, usually 5 acres or greater for growers of the crop
and 2.5 acres or more for seed cultivators.
MR. HENDRICK said some states have considered the transportation
of hemp away from the growth site and require agents
transporting the harvest to carry the licensing documentation
with them. California requires sample testing of industrial hemp
crops immediately before the harvest.
SENATOR STOLTZE asked if individual states does its own seed,
soil and product certification.
MR. HENDRICK replied that some states haven't established a seed
certification program and some have.
SENATOR STOLTZE said he was more concerned about the levels of
drug content.
MR. HENDRICK replied that the level of drug content is set at
the same amount as for the crop, itself.
SENATOR STOLTZE asked if each state is responsible for
conducting those tests.
MR. HENDRICK answered yes.
SENATOR STOLTZE asked to determine fiscal impact, if the federal
government is able to render any assistance for certification as
with other agricultural products.
MR. HENDRICK answered he wasn't aware of any federal assistance.
SENATOR MICCICHE said it seems like the background checks seems
a little extreme if it doesn't have potential for abuse and
asked him to explain why.
3:53:06 PM
MR. HENDRICK answered that he couldn't speak to why, but he had
heard someone say that allowing industrial hemp might be a way
for people to grow marijuana in those plots. It could be that
industrial hemp is still considered to be a controlled substance
on a federal level.
3:54:15 PM
SENATOR MICCICHE asked at what point would a controlled
substance not require control.
MR. HENDRICK answered that he wasn't sure, because he wasn't an
expert on federal law. The states have definitions for the
industrial hemp plant and some define industrial hemp products
separately from the plant. Zero levels of THC wouldn't be an
issue.
SENATOR STOLTZE asked about possible federal assistance with
marketing and other facets of the agricultural community.
MR. HENRICK responded that he would look into what federal
assistance is available.
SENATOR STOLTZE added "or prohibited."
3:56:31 PM
LARRY DEVILBISS, Mayor, Mat-Su Borough, Palmer, Alaska, said he
is a farmer and knows that the industrial hemp will not be
confused visually with a marijuana plant. They are not remotely
alike. He didn't think it had a massive commercial potential for
Alaska, but it probably has a niche value. The seed is available
at places like Costco and he has one 92 year old constituent who
credits his health all to hemp and has a bible verse to support
it.
4:00:04 PM
BRYCE WRIGLEY, President, Alaska Farm Bureau (AFB), Delta
Junction, Alaska, supported SB 8. He said the two crops of hemp
and marijuana are significantly different. Hemp is a very
versatile crop providing fiber and oil that can be used in a
wide range of products in the health food world. In fact hemp
seeds are considered a super food with up to 20 percent protein.
The U.S. imports $2 billion worth of hemp products per year and
it seems that if the products are safe to import, they could
also be safely grown here. The low level of THC contained in
industrial hemp provides the necessary safeguards to the public
health.
MR. WRIGLEY said it isn't clear whether industrial hemp can be
grown to maturity here, so that the desired products could be
processed into suitable items. The development of hemp varieties
with the required low THC concentration, the short season and
other desirable traits is the proper purview of the University
of Alaska Fairbanks as it is a land grant university with land
facilities in different areas of the state to provide a wide
range of trial locations. He stressed that it is important to
conduct this research in a controlled manner by legitimate
researchers who can evaluate the traits, measure the THC levels
and screen for unintended risks. Even if no varieties are found
that can mature in Alaska's latitude there is promise for
industrial hemp as a cover crop for green manure or for weed
suppression. The proper methods for determining whether this is
a good opportunity for Alaskan farmers is for UAF to do the
research and pass the breeder seed through the Plant Material
Center to individual farmers to grow.
4:02:24 PM
SENATOR STOLTZE asked if the Farm Bureau officially endorsed
growing hemp in the past.
MR. WRIGLEY replied this week is the first time it came before
the AFB and they endorsed SB 8 officially.
SENATOR COSTELLO asked how large of an industry hemp would be
and if any farmers had expressed interest in growing it.
MR. WRIGLEY answered that he hadn't heard of anyone wanting to
grow it. It has maturity issues in Alaska's latitude. Alaska
struggles with rotational crops being limited particularly in
the north as to what can be rotated with barley and grains.
There are possibilities that hemp could provide a green manure
crop or a method of suppressing weeds because it grows very
densely.
SENATOR COSTELLO asked if the research should be done by UAF or
individual farmers.
MR. WRIGLEY replied that his strong recommendation would be to
do it through UAF, because they have the capability of
evaluating various aspects of hemp as a crop and determining
what varieties would be the best, THC levels and things like
that. It would helpful to have the University provide that
research first, because accredited and land grant universities
were established to provide that service. The information was
meant to be disseminated through cooperative extension and the
Plant Material Center was tasked with growing those crops as
they were determined to be viable. He thought it was important
to reestablish the importance of the University in that process.
4:06:18 PM
SENATOR STOLTZE asked if the hemp plant could become invasive.
MR. WRIGLEY answered that it can, but it is spread by speed. One
hopes if it can mature here that it would be managed properly
and that the plant would be harvested before mature seed
setting. That is another compelling reason to involve the
University.
CHAIR GIESSEL thanked him for his testimony and opened public
testimony.
4:07:49 PM
JIM SYKES, representing himself, Palmer, Alaska, supported SB 8.
He is also a member of the Mat-Su Borough Assembly, but is not
speaking for them, but they were okay with the Mayor's testimony
earlier. The idea of putting a THC dry weight and allowing for
inspection at any time of a crop and testing is important,
especially with medical and recreational marijuana.
4:10:01 PM
FRANK TURNEY, representing himself, Fairbanks, Alaska, supported
SB 8. He said the real terminology is cannabis, not marijuana
that has been used as a racist tool against blacks and
minorities, has been grown for medicinal and industrial uses for
10,000 years. Cannabis sativa L is grown for industrial
production like fiber and oils; cannabis sativa is grown for
medicinal and recreational uses. Unlike other biomass that need
a lot of water, but hemp needs just a little bit of water and a
little bit of sunshine: 10 tons per acre for three or four
months growing time and 50,000 products can be made out of it.
People worry about sterilizing the seed, but now a hemp vodka
named Purgatory is being made in Wasilla; it is authorized by
the DEA and certified by the State of Alaska. They get their
seeds sterilized from Canada. Industrial hemp should be grown in
Alaska.
4:12:41 PM
SENATOR STOLTZE asked why the department needs the fiscal note.
FRANCI HAVEMEISTER, Director, Division of Agriculture,
Department of Natural Resources (DNR), Anchorage, Alaska,
replied that the fiscal note is strictly to write the
regulations for this crop. That would allow the industry to move
forward and possibly start production of the crop.
4:14:50 PM
SENATOR STOLTZE noted there were zero out-year costs and asked
if this becomes an industry what additional costs would be
involved.
MS. HAVEMEISTER answered that the department would be the
licensing agency as well as the regulator.
SENATOR STOLTZE said when he had the commercialization of
marijuana bill in the State Affairs Committee he was troubled,
because of the division's role which included making agriculture
revolving loan funds and seed certification, storage and
enhanced security, and a whole myriad of costs for which it is
not doing now had a zero fiscal note saying that hemp was the
Division of Commerce's problem. He didn't see the difference.
MS. HAVEMEISTER replied that the difference between this bill
and the one on marijuana is that this language and hemp
production would be allowed through the Farm bill and it is
written into the Farm Bill that the Divisions of Agriculture and
the Universities can be involved in research.
4:17:33 PM
SENATOR STOLTZE asked who in her division would be responsible
for certification and THC testing.
MS. HAVEMEISTER replied that at this time the Division of
Agriculture doesn't have capability to do the THC tests. If
funding were to come through, it potentially could be done
through them.
SENATOR STOLTZE said he wasn't asking if funding was coming
through; legislation is coming through and it has implications
for funding. He didn't want to pass the bill and then see the
need for funding. He was disappointed that he wasn't getting
answers.
CHAIR GIESSEL pointed out that the bill will go to the Finance
Committee as well as the Judiciary Committee. Seeing no further
comments, she left public testimony open and held SB 8 in
committee.