03/15/2021 01:30 PM Senate LABOR & COMMERCE

         SB  27-INDUSTRIAL HEMP PROGRAM; MANUFACTURING                                                                      
                                                                                                                                
1:49:07 PM                                                                                                                    
ACTING  CHAIR STEVENS  reconvened the  meeting and  announced the                                                               
consideration  of  SENATE  BILL  NO.  27,  "An  Act  relating  to                                                               
industrial hemp; and providing for an effective date."                                                                          
                                                                                                                                
He asked Mr. Whitt to provide any additional comments on SB 27.                                                                 
                                                                                                                                
1:49:41 PM                                                                                                                    
BUDDY  WHITT,   Staff,  Senator  Shelley  Hughes,   Alaska  State                                                               
Legislature, Juneau,  Alaska, stated  that the sponsor  asked him                                                               
to speak  to two items that  came up during the  initial hearing.                                                               
The  first  related  to  the  prohibition  for  individuals  with                                                               
controlled substance felonies to be  part of the program. He read                                                               
the following federal prohibition:                                                                                              
                                                                                                                                
     The  federal  government   requires  that  each  United                                                                    
     States  department of  agriculture approved  USDA state                                                                    
     plan contain  provisions related to felonies.  In part,                                                                    
     the  provisions are  required to  state  that a  person                                                                    
     with a state or federal  felony conviction related to a                                                                    
     controlled   substance   is   subject  to   a   10-year                                                                    
     ineligibility restriction on  participating in the plan                                                                    
     and producing hemp under the  state or tribal plan from                                                                    
     the date of the conviction.                                                                                                
                                                                                                                                
MR.  WHITT said  the second  item  was about  a tax  on hemp.  He                                                               
emphasized that  SB 27 does  not recommend a  tax of any  kind on                                                               
individuals who  decide to grow  industrial hemp. There is  a fee                                                               
to grow, manufacture, or retail industrial hemp, but no tax.                                                                    
                                                                                                                                
1:52:55 PM                                                                                                                    
ACTING CHAIR STEVENS opened public testimony on SB 27.                                                                          
                                                                                                                                
1:53:39 PM                                                                                                                    
EMBER  HAYNES, Denali  Hemp Co,  Talkeetna,  Alaska, stated  that                                                               
this  is the  second  year that  she and  her  husband have  been                                                               
registered growers in  the Alaska Hemp Program. For  the last six                                                               
years, they  have represented small acreage  producers interested                                                               
in  incorporating  industrial  hemp  as  a  sustainable  crop  to                                                               
provide  food, nutrition,  and improved  soil health.  Landowners                                                               
regularly  contact her  to ask  about growing  hemp as  feed, for                                                               
crop rotation, or green manure.  She encouraged the passage of SB
 and  the many uses of  the hemp plant as  an agricultural crop                                                               
and  products not  currently considered  in the  language of  the                                                               
hemp program.                                                                                                                   
                                                                                                                                
ACTING  CHAIR   STEVENS  noted  who   was  available   to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
1:55:41 PM                                                                                                                    
ACTING  CHAIR  STEVENS  closed  public testimony  on  SB  27  and                                                               
solicited a motion.                                                                                                             
                                                                                                                                
1:55:50 PM                                                                                                                    
SENATOR HOLLAND moved to report  SB 27, work order 32-LS0249\A as                                                               
amended,  from  committee  with  individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
ACTING CHAIR STEVENS  found no objection and  CSSB 27(L&C) passed                                                               
from the Senate Labor and Commerce Standing Committee.