Legislature(2021 - 2022)BUTROVICH 205
04/07/2021 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB27 | |
| SB33 | |
| SB62 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 27 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 33 | TELECONFERENCED | |
| += | SB 62 | TELECONFERENCED | |
SB 27-INDUSTRIAL HEMP PROGRAM; MANUFACTURING
3:33:09 PM
CHAIR REVAK announced the consideration of SENATE BILL NO. 27
"An Act relating to industrial hemp; and providing for an
effective date."
He noted that CSSB 27(L&C) was before the committee, and listed
the individuals available to answer questions.
3:33:48 PM
SENATOR SHELLEY HUGHES, Alaska State Legislature, Juneau,
Alaska, sponsor of SB 27, recounted the timeline of the
industrial hemp program. In 2014, Congress passed a farm bill
that allowed states to start an industrial hemp pilot program.
Late in the 2016 legislative session, Senator Johnny Ellis
introduced legislation to remove hemp from the criminal statutes
and identify it as a crop. Shortly thereafter, one of her most
conservative constituents said he wanted to try industrial hemp
as food stock for his cattle. The bill did not pass that year
and Senator Ellis retired. Over the interim, the US Department
of Agriculture (USDA) established a path for states to have an
industrial hemp program that would comply with the law. In 2017,
she filed [Senate Bill 6] and it passed unanimously in April
2018. In December 2018, Congress passed the Hemp Farming Act as
part of the 2018 Farm Act, which removed industrial hemp from
the Schedule I Controlled Substance list. In 2019, the USDA
released new regulations that allowed states to continue their
pilot programs until October 2020 or until a full industrial
hemp program was approved. The USDA subsequently extended the
date to October 2021.
SENATOR HUGHES said that because of the federal changes since
2018, Alaska has to change its statutes. SB 27 is the response,
and it primarily removes the industrial hemp pilot program and
directs the Department of Natural Resources (DNR) to develop a
compliant program and submit it to the USDA for approval. The
bill also gives DNR the authority to permit the manufacture of
hemp products and to set up a registration and renewal process
to participate in the program. It also says that registrants
cannot have a controlled substance felony conviction in the last
10 years.
3:36:55 PM
CHAIR REVAK asked Mr. Whitt to walk through the sectional
analysis.
3:37:04 PM
BUDDY WHITT, Staff, Senator Shelley Hughes, Alaska State
Legislature, Juneau, Alaska, stated he would go through the
sectional analysis and highlight cleanup provisions in current
law as well as areas that are required for compliance with
federal law. The sectional analysis read as follows:
Section 1 AS 03.05.010(a) Page 1, Line 3 through
Page 3, Line 8
Two subsections added to this section authorizing the
commissioner of the Department of Natural Resources to
include the manufacturing and retail sales of products
made from industrial hemp, as well as registration and
renewal procedures, in the regulations for the
industrial hemp program.
MR. WHITT explained that the commissioner needs these additional
powers because the bill does away with the pilot program.
Section 2 AS 03.05.010(c) Page 3, Lines 9 through
15
Amends AS 03.05.010(c) to allow that the Commissioner
of the Department of Natural Resources may issue a
stop sale order to a person found to be producing
industrial hemp over 0.3 delta-9-testahydrocannibinol.
Precious language was overly restrictive and did not
allow the department to work with a good actor to
recondition their crop. The new language allows the
department to determine whether someone was acting in
good faith or not prior to issuing the stop order.
MR. WHITT explained that the previous committee of referral
added and amended Section 2 at the request of the division. The
previous language said a stop order had to be issued and the
Department of Public Safety and Marijuana Control Board had to
be notified if any hemp plant tested over 0.3 percent THC.
3:39:37 PM
Section 3 AS 03.05.076(a) Page 3, Lines 16 through
31
Adds language that a registrant for the industrial
hemp program is not eligible if they had been
convicted of a felony involving a controlled substance
within the last ten years. This section is added to
comply with provisions of the 2018 Farm Bill.
MR. WHITT mentioned the memo from Legislative Legal Services
that specifies that this provision is needed to comply with
federal law.
Section 4 AS 03.05.076(i) Page 4, Lines 1 through
4
Adds that the department may develop an industrial
hemp program that complies with federal requirements
and submit a plan for the program to USDA for
approval.
Section 5 AS 03.05.079 Page 4, Line 5 through 11
A grower may retain and recondition their crop if it
tests above .3% but below 1.0% THC.
Section 6 AS 03.05.079(b) Page 4, Lines 12 through
14
A new subsection adds that a person who retains but
fails to recondition is guilty of a violation.
3:41:56 PM
Section 7 AS 03.05.100(5) Page 4, Lines 15 through
21
Changes the statutory definition of industrial hemp to
match the federal definition which was changed in the
2018 Farm Bill.
Section 8 Page 4, Line 22 Repeals AS 03.05.077 the
Industrial Hemp Pilot Program
Section 9 Page 4, Lines 23 through 31
Conditional effect for Section 8 of the bill, in that
the Pilot Program statute is repealed when the
Industrial Hemp Program developed by the department is
approved by the USDA.
Section 10 Page 5, Lines 1 through 3
Effective date language stating that if section 8 is
repealed under the conditions of section 9, the
effective date of section 8 is the day after notice is
received by the revisor of statutes by the
Commissioner of Natural Resources.
3:43:27 PM
SENATOR HUGHES described the legislation as an effort to
diversify the economy. She noted that the Division of
Agriculture reported this crop generated more inquiries than any
other crop. Industrial hemp is a multi-billion dollar industry
in China and Canada ranks second. Because the climate in Alaska
is similar to some parts of Canada, she said this industry could
be very successful. She listed some of the products made from
hemp including building supplies, insulation, plastic-like
materials, oil spill cleanup products, and a wide variety of CBD
products. "There is a wide spectrum of potential, and we want to
make sure that door is open for Alaska," she said.
CHAIR REVAK asked if industrial hemp is different than marijuana
plants and products.
3:44:56 PM
MR. WHITT replied that is correct. He added that many studies
have shown that industrial hemp that is within the THC
parameters in the bill has no psychoactive effect on the human
body.
3:45:19 PM
CHAIR REVAK opened public testimony on SB 27; finding none, he
closed public testimony.
CHAIR REVAK asked if there were amendments.
3:45:54 PM
SENATOR MICCICHE moved Amendment 1.
32-LS0249\B.2
Radford
3/30/21
AMENDMENT 1
OFFERED IN THE SENATE
TO: CSSB 27(L&C)
Page 3, line 31:
Delete "before"
Insert "after"
3:45:56 PM
CHAIR REVAK objected and asked Mr. Whitt to provide an
explanation for Amendment 1.
MR. WHITT explained that the language in the new subparagraph
(B) on page 3, line 29 contains a drafting error and should
refer to lawfully growing hemp after December 20, 2018. This is
the grandfather clause under the felony provisions of the bill
that identify who can and who cannot produce industrial hemp.
3:47:27 PM
CHAIR REVAK removed his objection to Amendment 1.
3:47:31 PM
At ease
3:48:03 PM
CHAIR REVAK reconvened the meeting and reinstated his objection
for additional discussion.
MR. WHITT advised that he referenced the wrong line when he was
discussing the amendment. The word "before" should be changed to
"after" on page 3, line 31.
3:48:29 PM
CHAIR REVAK noted that the amendment reflected the corrected
statement. He removed his objection. Finding no further
objection, he announced that Amendment 1 passes.
3:48:43 PM
SENATOR KIEHL moved Amendment 2 [B.4].
32-LS0249\B.4
Radford
3/30/21
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: CSSB 27(L&C)
Page 3, lines 9 - 15:
Delete all material and insert:
"* Sec. 2. AS 03.05.010(c) is amended to read:
(c) The commissioner of natural resources shall
notify the Marijuana Control Board and the Department
of Public Safety when the commissioner issues a stop
order. The commissioner of natural resources
(1) shall issue a stop order to a [ANY]
person
(A) not registered under AS 03.05.076
who is found to be producing a plant [PRODUCT]
with delta-9-tetrahydrocannabinol; or
(B) registered under AS 03.05.076 who
is found to be producing a plant with delta-9-
tetrahydrocannabinol over one percent; and
(2) may issue a stop order to a person
registered under AS 03.05.076 who is found to be
producing a plant with delta-9-tetrahydrocannabinol
between 0.3 percent and one percent [OVER 0.3 PERCENT,
REGARDLESS OF WHETHER THE PERSON IS REGISTERED UNDER
AS 03.05.076. THE COMMISSIONER OF NATURAL RESOURCES
SHALL NOTIFY THE MARIJUANA CONTROL BOARD AND THE
DEPARTMENT OF PUBLIC SAFETY WHEN THE COMMISSIONER
ISSUES A STOP ORDER]."
Page 3, following line 31:
Insert a new bill section to read:
"* Sec. 4. AS 03.05.076(e) is amended to read:
(e) The department [MAY]
(1) shall issue a stop-sale order and issue
a violation notice to a person who is producing
industrial hemp without a current registration;
(2) may adopt regulations regarding
approved shipping documentation for the transportation
of industrial hemp;
(3) may conduct random tests and
inspections of industrial hemp for delta- 9-
tetrahydrocannabinol concentration produced by an
individual registered under this section."
Renumber the following bill sections accordingly.
Page 4, line 26:
Delete "Section 8"
Insert "Section 9"
Page 5, line 1:
Delete "sec. 9(a)"
Insert "sec. 10(a)"
Delete "sec. 8"
Insert "sec. 9"
Page 5, line 3:
Delete "sec. 9(b)"
Insert "sec. 10(b)"
3:48:46 PM
CHAIR REVAK objected for discussion purposes.
3:48:49 PM
SENATOR KIEHL explained that Amendment 2 addresses discretion in
the stop orders. If somebody is growing industrial hemp but they
are not registered in the program, a stop order must be issued.
If they are growing industrial hemp and it has THC above the
legal threshold and the crop cannot be reconditioned, a stop
order must be issued. But somebody who is registered and in the
window where the crop that is above the threshold could be
reconditioned, the commissioner has the discretion to issue the
stop order. He noted that when a stop order is issued, the
commissioner notifies both the Marijuana Control Board and the
Department of Public Safety (DPS).
He relayed that he worked with the sponsor's office on the
amendment.
CHAIR REVAK asked Mr. Whitt to comment on the amendment and
describe the circumstances under which there would be small
amounts of THC in a crop and why that should be addressed in the
bill.
3:49:54 PM
MR. WHITT stated that the bill sponsor supports Amendment 2. It
clarifies the issue of stop orders. He said these are serious,
both for registered growers who are trying to follow the
guidelines of the program and for the division that is trying to
stop unregistered growers. This is a new crop that has the
potential to have a positive fiscal impact on the economy, so it
is important to protect good actors and ensure that those who
are ignoring the statutes are prevented from doing business.
He deferred the question about THC levels in a crop to Rob
Carter.
CHAIR REVAK clarified that his question was under what
circumstances would there be small amounts of THC in a crop and
why is it necessary to address that in the bill.
3:51:53 PM
ROB CARTER, Chief Agronomist, Division of Agriculture,
Department of Natural Resources (DNR), Palmer, Alaska,
explained that industrial hemp is a physiological response
to the genus and species of the plant, which is cannabis.
The genetics of the plant do not produce significant
amounts of THC like is seen in recreational marijuana, but
depending on the variety a grower has chosen and the
growing environment, the THC may increase. He said farmers
invest a lot of time and resources in planting their crops
and if the THC happens to rise above the 0.3 threshold,
they could recondition it with another lot to dilute the
concentration of the entire lot to below the threshold for
legal industrial hemp.
3:55:11 PM
CHAIR REVAK thanked him for the clarification. He removed his
objection to Amendment 2. Finding no further objection, he
announced that Amendment 2 passed.
He found no further questions and solicited the will of the
committee.
3:55:29 PM
SENATOR MICCICHE moved to report the CS for SB 27, work order
32-LS0249\B as amended, from committee with individual
recommendations and attached fiscal note(s).
3:55:47 PM
CHAIR REVAK found no objection and CSSB 27(RES) was reported
from the Senate Resources Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSSB 27 Sectional Analysis Version B.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| SB 27 Leg Legal felony provisions memo.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| CSSB 27 SRES Amendment B.2 3.30.21.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| SB 27 Sponsor Statement Version B.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| SB27 Explanation of Changes from Version A to B.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| CSSB 27 Version B.PDF |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| SB 62 DNR Follow-Up- Committtee Questions 3.19.21.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 62 |
| SB 62 Map - Cosmopolitan Well Reach DNR.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 62 |
| CSSB 27 Kiehl Amendedment B.4 April 7 2021.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 27 |
| SB 33 CS Work Draft V. B.pdf |
SRES 4/7/2021 3:30:00 PM |
SB 33 |
| SB 33 RDC Letter of Support 4-5-21.pdf |
SFIN 1/24/2022 1:00:00 PM SRES 4/7/2021 3:30:00 PM |
SB 33 |