Legislature(2015 - 2016)BUTROVICH 205
03/10/2015 08:30 AM Senate STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SCR6 | |
| SB62 | |
| SB42 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SCR 6 | TELECONFERENCED | |
| += | SB 62 | TELECONFERENCED | |
| *+ | SB 42 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 62-REGULATION OF MARIJUANA BUSINESSES; BOARD
9:18:26 AM
CHAIR STOLTZE called the committee back to order. He announced
that the next order of business would be SB 62.
9:19:17 AM
FRANCI HAVEMEISTER, Director, Division of Agriculture,
Department of Natural Resources, provided the division's
perspective on SB 62. She related that the division has had
discussions with the Department of Law and believes that the
potential interaction between the marijuana industry and the
division may involve the Agriculture Revolving Loan Fund. It may
also include agriculture land sales in that the division
requires a farm conservation plan be submitted to the division.
There may also be interaction between the plant material center
staff with technical assistance on cultivation production and
the Alaska Grown Marketing Program.
CHAIR STOLTZE asked if marijuana meets labeling requirements as
"Alaska Grown"
MS. HAVEMEISTER said there are ongoing discussions with the
Department of Law regarding that issue.
CHAIR STOLTZE asked what the inhibitors might be.
9:21:51 AM
MS. HAVEMEISTER answered that she is not aware of anything that
would prohibit it except for the implication of federal money
being used for the marketing program. She noted that "Colorado
Proud" has a disclaimer stating that if the crop is federally
illegal, the seller is not able to participate in the program.
CHAIR STOLTZE asked if the division has discussed the
segregation of state versus federal funds in the marketing
program.
MS. HAVEMEISTER said no.
CHAIR STOLTZE noted that the plant materials center engages in
seed certification and disease control. He asked if marijuana is
an invasive weed.
9:22:51 AM
MS. HAVEMEISTER said she did not believe so.
CHAIR STOLTZE added "not in the purely, technical, agricultural
sense."
MS. HAVEMEISTER answered correct.
CHAIR STOLTZE noted the success of Greenhouse Loans. He
requested to know the barriers and opportunities for farmers'
participation in the division's programs.
9:23:43 AM
MS. HAVEMEISTER answered that the division is having that
discussion with the Department of Law. No determination has been
made.
CHAIR STOLTZE asked if there have been policy discussions.
MS. HAVEMEISTER said the board has had some discussion on a
limited basis.
CHAIR STOLTZE asked which board.
MS. HAVEMEISTER said the Board of Agriculture, which includes
the Attorney General.
CHAIR STOLTZE asked who sat in on the meetings.
MS. HAVEMEISTER said Mr. McFarlane.
9:24:56 AM
SENATOR COGHILL noted Colorado's radio-frequency identification
(RFID) technology to track plants and asked if Alaska uses RFID
to track agriculture.
MS. HAVEMEISTER answered not that she is aware of.
SENATOR COGHILL explained that the potency and value of plants
is determined by a selection of individual plants in a growing
area, such as a greenhouse. He asked if that could be done in
Alaska.
MS. HAVEMEISTER answered potentially yes.
9:26:08 AM
CHAIR STOLTZE noted other states that have commercialized
marijuana have heightened security and enacted bonding
requirements. He wondered if fiscal notes would be needed.
MS. HAVEMEISTER said they have discussed the funding of
commercialization and are trying to understand the financial
impacts to the division.
9:27:12 AM
CHAIR STOLTZE noted the U.S. Department of Agriculture's
discussion of the Food Safety and Modernization Act and asked
what challenges the division might have with regulations for
growing marijuana as they relate to that Act.
MS. HAVEMEISTER replied that the Act is going to be challenging
for all agriculture divisions throughout the nation. Currently,
the authority lies within the Department of Commerce, Community
and Economic Development (DCCED). She noted the division is in
conversation with DCCED to work out a Memorandum of
Understanding (MO) that would put the on-farm inspections
through the division. She reported that, at this time, the final
rules will be published in September or October of 2015. At that
time the division will know the true implications and effects it
will have on Alaska growers.
SENATOR HUGGINS asked about the shipping of seeds to Alaska.
9:29:48 AM
MS. HAVEMEISTER understood that shipping marijuana seeds must be
authorized with the Department of Agriculture (DOA) and is not
easily done.
CHAIR STOLTZE pointed out efforts required to control disease in
the agriculture industry. He assumed there would be a fiscal
impact to DNR and suggested that they prepare for that. He
requested fiscal information.
MS. HAVEMEISTER agreed to provide that.
9:32:53 AM
SENATOR HUGGINS asked how growers pollinate marijuana.
MS. HAVEMEISTER said she is not familiar with that, but the
division is looking into it.
SENATOR HUGGINS asked if marijuana is a "volunteer" plant. He
provided a scenario and asked whether the plant will lose its
potency the second year.
9:34:38 AM
MS. HAVEMEISTER said she did not know. She thought marijuana
production would take place in a greenhouse.
SENATOR HUGGINS was concerned about re-growth.
CHAIR STOLTZE thanked Ms. Havemeister.
9:37:09 AM
RICHARD SVOBODNY, Deputy Attorney General, Criminal Division,
Department of Law, provided information on SB 62. He considered
SB 62 a regulatory bill.
CHAIR STOLTZE pointed out public notice issues and the mandate
to regulate marijuana like alcohol.
9:40:05 AM
MR. SVOBODNY addressed regulating marijuana like alcohol. He
said it is easier to regulate alcohol due to the larger
infrastructure in place. The marijuana industry is just
beginning and much is unknown. For example, the bill provides
for three new types of licenses.
CHAIR STOLTZE requested information about the notice
requirement, pointing out the public safety aspect. Both sides
say that they must have notice or privacy, both reflecting
criminal concerns.
9:41:37 AM
MR. SVOBONDY opined that Ravin vs. State was not based on the
constitutional right to possess or use marijuana. It was based
upon the right of privacy and there was a heightened right of
privacy in one's home. It only dealt with personal use, not
commercial use.
CHAIR STOLTZE said if that includes boutique production in one's
home.
MR. SVOBODNY answered that example is similar to running a
business out of your home, such as Amway. There is a greater
interest in allowing legislation to control what happens in your
home when it is commercial, as opposed to personal. He gave
several examples.
9:44:30 AM
CHAIR STOLTZE asked whether there are commercial alcohol
businesses that are allowed to conduct their business in
anonymity and have a right of privacy.
MR. SVOBODNY answered no. A person can make beer or wine in
one's home, but that is not a commercial operation and does not
require a license like home-grown marijuana would.
9:45:38 AM
SENATOR MCGUIRE opined that the struggle with the Ravin ruling
is that marijuana was illegal at the time. She predicted that
legalization and the right to privacy would intersect in the
future.
MR. SVOBODNY agreed.
SENATOR MCGUIRE asked about pending litigation from states
surrounding Colorado. They are asserting that the marijuana
industry in Colorado has had disproportionate negative impacts
on them. She asked if Alaska might be subjected to that type of
litigation from Washington or Oregon.
MR. SVOBODNY said it was an interesting case and he did not
think it would happen to Alaska because both Washington and
Oregon have marijuana initiatives.
9:49:00 AM
SENATOR MCGUIRE asked if that case might ultimately lead to a
Supreme Court decision about the federalization of marijuana.
MR. SVOBODNY said he had no idea.
SENATOR HUGGINS asked about tribal rights in either Colorado or
Washington.
MR. SVOBODNY thought Senator Huggins might be referring to a
memorandum from the Justice Department in the last six months
that has set out a framework for Indian reservations to make a
decision about whether or not to decriminalize marijuana. The
only area in Alaska that would meet that criteria is Metlakatla.
9:52:14 AM
SENATOR COGHILL commented that seeds from out of state, would be
an interstate commerce criminal issue on the federal level. He
asked how the state would handle it.
MR. SVOBODNY asked if he was asking if under the initiative it
would be a crime to possess seeds in territorial waters of
Alaska.
SENATOR COGHILL thought Alaska might have to have a license to
accept five pounds of seeds.
MR. SVOBODNY explained that from the standpoint of the
initiative, Alaska would have to have a license to import seeds.
He did not know what the penalties under state law would be.
Currently, it is a violation of federal law. The initiative does
not change federal law. The federal government could make a
determination to go forward in any criminal case.
He questioned where the boundaries of the administrative state
are under SB 62 and how much authority can be given to an
administrative agency. He did not think an administrative agency
should be creating crimes, but that it is the legislature's job
to do so. He stated that half of the states have required the
crimes to be spelled out in statute; others have said it is
sufficient to give an administrative agency that authority, but
the legislature must set standards for their use in creating
administrative regulations. He stressed the importance of that.
9:57:36 AM
CHAIR STOLTZE requested Mr. Svobodny work with Commissioner
Folger and Commissioner Richards on the administration's ideas
on public safety priorities and public notice and zoning issues.
He noted the sponsor's mandate on privacy.
9:59:48 AM
MR. SVOBODNY agreed to do so by Monday. He pointed out that the
need to be licensed means a lessened amount of privacy. He noted
that OSHA and other regulatory entities will interact with the
new businesses.
10:01:06 AM
SENATOR WIELECHOWSKI requested information from prosecutors in
Anchorage about the uptick in violence. He wondered if it is
drug related and a reaction to the proposed legislation.
MR. SVOBODNY agreed to find out.
[SB 62 was held in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SCR6 Sponsor Statement.pdf |
SSTA 3/10/2015 8:30:00 AM |
SCR 6 |
| SCR6 Draft Fiscal Note - SSTA 3-9-15.pdf |
SSTA 3/10/2015 8:30:00 AM |
SCR 6 |
| SCR6 DVSA Dashboard 2014.pdf |
SSTA 3/10/2015 8:30:00 AM |
SCR 6 |
| SCR6 CDVSA Annual Report 2014.pdf |
SSTA 3/10/2015 8:30:00 AM |
SCR 6 |
| SB42 Sponsor Statement.pdf |
SSTA 3/10/2015 8:30:00 AM |
SB 42 |
| SB42 ADF&G Brief on Personal Use Fishing.pdf |
SSTA 3/10/2015 8:30:00 AM |
SB 42 |
| SB42 Regulations of the Board of Fisheries.pdf |
SSTA 3/10/2015 8:30:00 AM |
SB 42 |
| SB42 Fiscal Note - DFG-CO 3-6-15.pdf |
SSTA 3/10/2015 8:30:00 AM |
SB 42 |