Legislature(2015 - 2016)BARNES 124

03/03/2015 08:00 AM House COMMUNITY & REGIONAL AFFAIRS



Audio Topic
08:10:02 AM Start
08:10:41 AM HB75
09:43:44 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 75 MUNI REGULATION OF MARIJUANA; ADV. BOARDS TELECONFERENCED
Moved CSHB 75(CRA) Out of Committee
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB  75-MUNI REGULATION OF MARIJUANA; ADV. BOARDS                                                                    
                                                                                                                                
8:10:41 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON announced  that the only order of  business would be                                                               
HOUSE  BILL  NO.  75,  "An  Act relating  to  the  regulation  of                                                               
marijuana  by  municipalities;  and providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
8:11:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved  to  adopt  CSHB  75,  Version  29-                                                               
LS0345\I, Nauman/Martin, 2/27/15, as the working document.                                                                      
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
8:11:53 AM                                                                                                                    
                                                                                                                                
HEATH  HILYARD,   Staff,  Representative  Tilton,   Alaska  State                                                               
Legislature, noted  that the committee  has been provided  with a                                                               
revised sectional  analysis.  Of  the number of  changes embodied                                                               
in  Version  I, he  highlighted  a  change of  particular  policy                                                               
import  located  on  page  2, lines  5-29,  which  establishes  a                                                               
maximum household  plant limit of  12 plants in a  household with                                                               
two  or more  adults  residing in  the home.    He then  directed                                                               
attention  to  page  3,  lines   7-15,  which  contains  language                                                               
conforming  to  Title  4  provisions   regarding  the  board  and                                                               
notification   requirements   to  municipalities   when   issuing                                                               
registrations  for  commercial  marijuana  establishments.    The                                                               
language on  page 3, line  24 through  page 5, line  15, contains                                                               
language  that  is  substantially  similar to  that  in  Title  4                                                               
regarding alcohol.   The language,  he specified, provides  for a                                                               
notification  and protest  process  for municipalities  regarding                                                               
the   issuance   of   registrations  for   commercial   marijuana                                                               
establishments   within  a   municipality's   boundaries.     The                                                               
aforementioned changes,  he noted, were made  largely in response                                                               
to the requests  of various municipalities.  He  then pointed out                                                               
that  the  previously  adopted  amendments  to  insert  the  term                                                               
"criminal" with regard to penalties can  be found on page 5, line                                                               
28, and the  language change from "shall" to "may"  is located on                                                               
page 7, line 16.                                                                                                                
                                                                                                                                
                                                                                                                                
8:14:09 AM                                                                                                                    
                                                                                                                                
CHAIR  TILTON withdrew  her objection.   There  being no  further                                                               
objection, Version I was adopted.                                                                                               
                                                                                                                                
8:14:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ORTIZ asked  whether  the language  in Version  I                                                               
specifying a maximum household limit  of 12 plants would meet the                                                               
[initiative]  requirements allowing  each  individual  to have  6                                                               
plants.                                                                                                                         
                                                                                                                                
8:15:40 AM                                                                                                                    
                                                                                                                                
HILARY MARTIN, Attorney,  Legislative Legal Services, Legislative                                                               
Affairs Agency, offered that a household  limit of 12 plants in a                                                               
household with  two or more adults  over the age of  21 runs into                                                               
an  equal  protection  challenge.   Ms.  Martin  said  that  it's                                                               
unclear how  the court would  decide such a situation.   However,                                                               
she pointed  out that  in Ravin  V. State  [537 P.2d  494 (Alaska                                                             
1975)], the court held  that a fairly  high privacy  interest was                                                               
implicated.                                                                                                                     
                                                                                                                                
8:16:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  asked  whether  the  establishment  of  a                                                               
[household  limit]  is reasonable  from  the  perspective that  a                                                               
certain amount  of plants in a  house could be presumed  to be at                                                               
the level of commercial use.                                                                                                    
                                                                                                                                
MS. MARTIN confirmed  that is one issue the  court will consider.                                                               
In Ravin  and Noy v. State  [83 P.3rd 538 (Alaska  App 2003)] the                                                           
court  has  said  that  at  some point  there  is  an  amount  of                                                               
possession  that  is  indicative  of  sale.   In  Noy  the  court                                                             
established   that  four   ounces  of   personal  possession   is                                                               
acceptable and  not indicative of  sale, but the court  didn't go                                                               
beyond that.  Therefore, it's unclear,  she opined, as to how the                                                               
court will weigh the various interests.                                                                                         
                                                                                                                                
8:19:20 AM                                                                                                                    
                                                                                                                                
RACHELLE  YEUNG, Legislative  Analyst  Marijuana Policy  Project,                                                               
related that  the Marijuana  Policy Project is  neutral on  HB 75                                                               
and noted appreciation  of the committee's desire  to respect the                                                               
will of the voters as well as  the diligence to check in with the                                                               
committee on the drafting of  the legislation.  However, she said                                                               
MPP has some  concerns and recommends a  few remaining revisions.                                                               
With  regard to  the 12  plant household  limit, she  pointed out                                                               
that the  initiative allows  each individual age  21 or  older to                                                               
possess  six  plants  with  no   household  cap.    Although  MPP                                                               
understands the need for municipalities  to clarify their ability                                                               
to enforce  the possession  limit in households  in which  two or                                                               
more adults may reside.   Given that Colorado's ballot initiative                                                               
language was very similar to  the personal protection language in                                                               
Alaska's  initiative,  MPP  has  used  Colorado's  experience  as                                                               
guidance.   In Colorado, several  local governments  have imposed                                                               
household limits similar  to those proposed in HB  75 without any                                                               
legal challenge  thus far.   Since a  challenge could  be brought                                                               
forward in  the future,  she said  MPP couldn't  say definitively                                                               
whether  [a household  limit] would  be consistent  with Alaska's                                                               
ballot initiative.    However,  she highlighted that  in Colorado                                                               
there is no  statewide household limit and deference  is given to                                                               
municipalities  in  terms  of  what   is  appropriate  for  their                                                               
communities.   Ms. Yeung pointed  out that it's quite  common for                                                               
families to  include three  or more adults  residing in  the same                                                               
location,  such that  there could  be  two parents  and an  adult                                                               
child.   Therefore, if there  is going  to be a  household limit,                                                               
MPP  strongly encourages,  at a  minimum, an  18 plant  household                                                               
limit  rather  than 12  plant  household  limit.   Regarding  the                                                               
addition  in Section  9  of HB  75  providing municipalities  the                                                               
ability  to  impose criminal  penalties  for  a violation  of  an                                                               
ordinance, it wasn't  the intent of the drafters of  the law from                                                               
the  initiative  to  allow   municipalities  to  impose  criminal                                                               
penalties.   The desire,  rather, was to  limit any  violation of                                                               
regulations  governing time,  place,  and manner  of a  marijuana                                                               
establishment  to  a  civil  fine.    However,  she  related  her                                                               
understanding  that   there  may   be  an  opinion   coming  from                                                               
Legislative  Legal  Services  explaining  that  existing  statute                                                               
providing municipalities  with the  authority to  impose criminal                                                               
penalties  may   override  this   particular  provision   of  the                                                               
initiative.    Ms.  Yeung  said  MPP would  like  to  review  the                                                               
aforementioned opinion  before stating a formal  position on that                                                               
matter.  She  then directed attention to the  new provision under                                                               
Section 7 relating  to the municipal protest  and review process.                                                               
The  MPP,  she  related,  does  concur  that  it  would  be  more                                                               
efficient  and  convenient for  marijuana  registration/licensure                                                               
processes to  mirror existing alcohol  licensing processes.   Ms.                                                               
Yeung clarified that MPP does not  oppose the addition of the new                                                               
provision  so long  as it  complies with  the application  period                                                               
specified  in  Ballot  Measure  2,   does  not  raise  costs,  or                                                               
otherwise conflict  with Ballot  Measure 2.   As specified  in AS                                                               
17.38.100(b)  of Ballot  Measure  2, the  state regulatory  board                                                               
must accept  or reject an  annual registration within 90  days of                                                               
receiving an  application.   Therefore, MPP  has no  objection to                                                               
the  additional  provision  so  long  as  the  alcohol  licensing                                                               
protest  and review  process doesn't  exceed the  timeline beyond                                                               
the  90 days.    She then  turned attention  to  the addition  of                                                               
several  new  sections relating  to  the  exercise of  the  local                                                               
option  to  prohibit  marijuana  establishments  for  established                                                               
villages.    Although  the  new sections  are  a  fairly  typical                                                               
process as  laid out for  other voter initiatives with  regard to                                                               
established villages,  she pointed out that  under Ballot Measure                                                               
2  municipalities  are  allowed  to  prohibit  certain  types  of                                                               
marijuana establishments  while allowing others.   The initiative                                                               
lays  out  four  different  types  of  marijuana  establishments,                                                               
including     marijuana    cultivation     facilities,    product                                                               
manufacturing facilities, testing  facilities, and retail stores.                                                               
Ms. Yeung expressed the need [for  the language] to be clear that                                                               
established villages have  the option to opt out of  any one, all                                                               
four,  or   none  of  the   aforementioned  types   of  marijuana                                                               
establishments.                                                                                                                 
                                                                                                                                
8:26:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ORTIZ inquired  as  to the  reasoning behind  MPP                                                               
supporting  a  household limit  of  18  plants versus  12  plants                                                               
versus 24 plants.                                                                                                               
                                                                                                                                
MS.  YEUNG  reiterated  that households  with  three  adults  are                                                               
fairly common,  particularly when one considers  a household with                                                               
two adult  parents and an  adult child or  the child of  a parent                                                               
over the age of  21 all residing in the same  household.  The MPP                                                               
feels that an 18 plant cap would be more reasonable, she stated.                                                                
                                                                                                                                
8:27:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD,  referring to  an article  entitled "How                                                               
Much  Cannabis Can  I Yield  Per Plant?"  from the  blog "I  Love                                                               
Growing  Marijuana," related  her understanding  that one  of the                                                               
keys to  growing marijuana  is the  strength of  the light.   She                                                               
then related  her understanding  that over the  course of  a year                                                               
three flowering  plants and three  immature plants  could produce                                                               
about 18 ounces of marijuana, which  is about 1,000 joints with a                                                               
street  value of  about $5,000.   In  a situation  with the  same                                                               
number of plants  under larger grow lights, over the  course of a                                                               
year those plants  could produce about 216 ounces,  which is over                                                               
12,000 joints  with a  street value  of $60,000.   However,  in a                                                               
situation  in  which  there  are  12  plants  of  which  six  are                                                               
flowering [and  six are  immature], [over the  course of  a year]                                                               
the plants  can yield approximately  432 ounces or 16  joints per                                                               
day.  Representative Reinbold expressed  concern with how much 12                                                               
plants  can  yield as  it's  an  opportunity for  individuals  to                                                               
produce more  than for personal  use.  Therefore,  she questioned                                                               
at what point the number of  plants per household would move from                                                               
an amount for personal use to an amount for commercial use.                                                                     
                                                                                                                                
8:29:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HUGHES  expressed   concern  with   the  numbers                                                               
presented   by    Representative   Reinbold,    particularly   in                                                               
conjunction  with MPP's  proposal  for a  household  limit of  18                                                               
plants.     She then  directed  attention to  information in  the                                                               
committee packet specifying that one  ounce of marijuana is equal                                                               
to approximately 5.6 gallons of beer.   She then pointed out that                                                               
state law  specifies that an  individual is only allowed  to brew                                                               
100 gallons  per year per  person with  a maximum of  200 gallons                                                               
per year  per household.  Therefore,  if the goal is  to regulate                                                               
marijuana like  alcohol, calculations  reveal that one  person at                                                               
the  low end  of  production  [with six  plants]  could grow  1.5                                                               
pounds  of  marijuana in  one  year,  which  at  the low  end  is                                                               
equivalent to  101 gallons of beer  up to 1,215 gallons  of beer.                                                               
Calculations   for  12   plants  result   in  marijuana   amounts                                                               
equivalent to  202 gallons of beer  up to 2,040 gallons  of beer.                                                               
The aforementioned calculations, she said,  result in the low end                                                               
of marijuana production for 12  plants reaching the equivalent of                                                               
the household  limit for beer.   Representative  Hughes clarified                                                               
that a household  limit of 12 plants results in  a low end amount                                                               
of marijuana production that is  slightly more than the allowance                                                               
for [home  brew] beer.   Therefore, Representative  Hughes opined                                                               
that   the   household   limit  shouldn't   exceed   12   plants,                                                               
particularly in terms of the precedent  set by the [home brew] of                                                               
alcohol standard.                                                                                                               
                                                                                                                                
8:32:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ORTIZ  asked in what  way is  marijuana equivalent                                                               
to alcohol under Representative Hughes' comparison.                                                                             
                                                                                                                                
REPRESENTATIVE HUGHES deferred to Mr. Hilyard.                                                                                  
                                                                                                                                
MR.  HILYARD referred  to the  document in  the committee  packet                                                               
entitled "100 questions about legal  marijuana: Your go-to source                                                               
for Colorado info."  The document relates the following:                                                                        
                                                                                                                                
     Researchers have calculated that  the average joint has                                                                    
     slightly less  than a  half gram  of marijuana.   (Yes,                                                                    
     this  is actually  something  that  people with  Ph.D.s                                                                    
     did.)   An ounce is  slightly more  than 28 grams.   So                                                                    
     one ounce will get you close  to 60 joints.  In alcohol                                                                    
     terms, it's a keg of pot.                                                                                                  
                                                                                                                                
MR. HILYARD  noted that he  couldn't speak about  the correlation                                                               
in terms of  toxicity.  However, in trying  to regulate marijuana                                                               
like alcohol,  he sought some  type of conversion  albeit largely                                                               
for  illustrative  purposes.    He pointed  out  that  since  the                                                               
federal  government  already  restricts  the  amount  of  alcohol                                                               
brewed  at home  and not  for commercial  purposes, he  used that                                                               
restriction  to calculate  what  that amount  of marijuana  would                                                               
look  like.   He  acknowledged  that  these aren't  hard  science                                                               
numbers,  but  noted it's  the  best  available information  that                                                               
could be provided to the committee  at the time.  He then pointed                                                               
out that the  committee packet contains a  document entitled "Keg                                                               
Sizes and Gallons per Size."                                                                                                    
                                                                                                                                
8:35:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  clarified that  she was trying  to point                                                               
out that  the maximum yield  of the 12  plants in a  household of                                                               
four would yield 16 joints per day per person.                                                                                  
                                                                                                                                
8:36:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  acknowledged   that  a  municipality  can                                                               
choose to  be stricter  than the  state law.   Therefore,  if the                                                               
state law  specifies a  household limit of  12 plants,  she asked                                                               
whether  a  municipality  would  be able  to  implement  a  lower                                                               
household limit of plants.                                                                                                      
                                                                                                                                
MS. MARTIN answered that generally  a municipality does have that                                                               
power.   However,  since the  initiative  has slightly  ambiguous                                                               
language  regarding the  powers of  municipalities, she  said she                                                               
didn't specifically know if that would be true in this case.                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES remarked  that it  would be  good to  hear                                                               
from municipal attorneys on that point.                                                                                         
                                                                                                                                
CHAIR TILTON  noted that  the legislation has  a referral  to the                                                               
House  Judiciary  Standing  Committee, where  the  aforementioned                                                               
could be addressed.                                                                                                             
                                                                                                                                
8:38:10 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON recalled  that the  municipal attorney  in                                                               
Kenai requested a maximum number  of plants per household so that                                                               
enforcement  would   be  clearer   for  the  residents   and  law                                                               
enforcement  of Alaska.    The aforementioned  arose  due to  the                                                               
ambiguity surrounding the definition of  the amount of plants per                                                               
person.                                                                                                                         
                                                                                                                                
8:40:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NAGEAK  opined that alcohol and  drugs produce two                                                               
different effects.   For  example, he  said he  has never  seen a                                                               
stoned person  abuse his/her family  or drink away the  money for                                                               
food.   When one  is high  on marijuana, one  only wants  to eat.                                                               
Representative  Nageak  further  opined   that  alcohol  and  the                                                               
effects of  alcohol to people  are much worse than  marijuana and                                                               
the  effect  of  marijuana  to  people.    He  said  alcohol  and                                                               
marijuana can't be  discussed in the same manner  because the two                                                               
are completely different.                                                                                                       
                                                                                                                                
8:41:58 AM                                                                                                                    
                                                                                                                                
CHAIR  TILTON noted  that the  correlation between  marijuana and                                                               
alcohol  was made  because  the  initiative specifies  regulating                                                               
marijuana  like alcohol.   With  regard to  the discussion  about                                                               
limiting  the  number  of  plants  per  household,  Chair  Tilton                                                               
clarified that  the discussion wasn't  referring to  the toxicity                                                               
in the plants but rather  about protecting the revenue that would                                                               
come to the state.                                                                                                              
                                                                                                                                
8:42:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON directed attention  to the language on page                                                               
5,  line 16,  which  provides the  option  to prohibit  marijuana                                                               
cultivation   facilities,   manufacturing   facilities,   testing                                                               
facilities,  retail   facilities,  or   marijuana  clubs.     The                                                               
legislation, he  pointed out,  establishes an  additional license                                                               
or registration type that was not included in the initiative.                                                                   
                                                                                                                                
MS. YEUNG responded with her belief  that the MPP or the campaign                                                               
has a  formal position regarding  marijuana clubs.   Although she                                                               
said  she didn't  believe it  would be  inconsistent with  Ballot                                                               
Measure  2,  she  offered  to provide  the  committee  with  more                                                               
detailed information later.                                                                                                     
                                                                                                                                
8:45:01 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON  asked whether marijuana today  is considerably more                                                               
potent than in the past.                                                                                                        
                                                                                                                                
MS. YEUNG said she doesn't have  hard facts on that, although she                                                               
acknowledged  that it's  a common  claim by  some, including  the                                                               
media.   However,  she informed  the committee  that much  of the                                                               
marijuana  tested  in  the  past  and used  for  the  potency  of                                                               
marijuana was  much weaker  than what may  have been  consumed by                                                               
regular  marijuana  users.   Furthermore,  much  of  the  potency                                                               
testing  in  the past  decade  was  based on  federally  produced                                                               
marijuana, which is  known to have very, very low  potency to the                                                               
point of being  ineffective treating medical illness in  a lot of                                                               
cases.    Therefore,  it  may  not  be  an  accurate  comparison.                                                               
Potency within marijuana  does vary, but in  the regulated market                                                               
consumers will be able to see the potency through the testing.                                                                  
                                                                                                                                
CHAIR  TILTON  recalled reading  that  today's  marijuana is  six                                                               
times more potent than that of the 1970s.                                                                                       
                                                                                                                                
MS. YEUNG  said she has heard  that claim, but said  she couldn't                                                               
speak to its accuracy.                                                                                                          
                                                                                                                                
8:47:09 AM                                                                                                                    
                                                                                                                                
LUKE  HOPKINS,  Mayor,  Fairbanks North  Star  Borough,  directed                                                               
attention to  the language on  page 2 referring to  the household                                                               
limit of 12 marijuana plants.   He questioned the appropriateness                                                               
of having that much marijuana  available, particularly when under                                                               
modern  growing techniques  [for  growing inside]  one plant  has                                                               
been  found to  yield up  to a  pound.   Therefore, he  urged the                                                               
committee to consider  a six plant per household limit.   He then                                                               
pointed  out  that  the  statute from  the  initiative  does  not                                                               
specify that marijuana  has to be treated like  alcohol, and thus                                                               
it can  be treated differently.   For the purposes  of marijuana,                                                               
which  remains a  classified drug  under federal  law, he  opined                                                               
that the state should proceed  in a conservative manner, which he                                                               
indicated his constituency supports as  well.  Mayor Hopkins then                                                               
characterized the  components in Section  8 on page 5,  lines 17-                                                               
22,  as  good  components.   Allowing  the  local  government  to                                                               
determine  how many  marijuana clubs  are allowed  in an  area is                                                               
very important,  he opined.   In fact,  the Fairbanks  North Star                                                               
Borough administration  is going  before the  planning commission                                                               
to discuss  the zoning aspect  because the borough  has sensitive                                                               
receptors  and  federal  sensitive   receptors.    He  noted  his                                                               
appreciation of  the addition of  the term "criminal" on  page 5,                                                               
line 28, as the borough and  the cities don't want to be excluded                                                               
from  that authority.    Although the  two  existing cities  have                                                               
police forces and  don't intend to apply  those criminal aspects,                                                               
the ability  to have the  authority is important.   Mayor Hopkins                                                               
related that  the assistant borough attorney  for Fairbanks holds                                                               
the understanding  that the borough  can have a  more restrictive                                                               
household limit than that of the state.                                                                                         
                                                                                                                                
8:54:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  asked if there  is concern with  regard to                                                               
the  excess marijuana  that would  be  produced with  a 12  plant                                                               
limit and whether that excess  would create a potential new black                                                               
market.                                                                                                                         
                                                                                                                                
MAYOR HOPKINS  confirmed that he  has such concerns.   He related                                                               
that he  has information  stating that many  more than  16 joints                                                               
can be produced  per plant.  He acknowledged  that bartering will                                                               
occur  but opined  that  if the  commercial  aspect of  marijuana                                                               
production can  reach the right  price, it could squeeze  out the                                                               
black market.  Therefore, he  reiterated the appropriateness of a                                                               
[household limit] of six plants.                                                                                                
                                                                                                                                
8:57:19 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON clarified  that Representative Reinbold's conversion                                                               
calculations were based on 12 plants.                                                                                           
                                                                                                                                
REPRESENTATIVE  REINBOLD further  clarified  that her  conversion                                                               
calculations found that  12 marijuana plants in  a household with                                                               
four people would produce 16 joints per day per person.                                                                         
                                                                                                                                
8:57:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  referred  to  the  last  paragraph  of  a                                                               
February 26,  2015, memorandum  from Legislative  Legal Services,                                                               
which read:                                                                                                                     
                                                                                                                                
     Section   41.61.030(h)   provides  that   a   marijuana                                                                    
                         1                                                                                                      
     cultivation facility   that fails to  pay taxes  to the                                                                    
     state may have its registration  to operate "revoked in                                                                    
     accordance  with  procedures established  under  [sec.]                                                                    
     1738.090(a)(l)."  This subsection  does  not limit  the                                                                    
     board's authority,  or a local  government's authority,                                                                    
     to  adopt   regulations  that  provide   for  marijuana                                                                    
     establishments' registrations  to be revoked  for other                                                                    
     causes.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   explained  that  the  language   of  the                                                               
initiative that  established the ability to  revoke a cultivation                                                               
facility  due to  failure to  pay taxes  was viewed  as limiting.                                                               
From that  language there was the  belief that the only  reason a                                                               
license or registration  could be revoked was for  failure to pay                                                               
taxes.    However,  Legislative  Legal  Services  interprets  the                                                               
language  as  not  limiting  the  ability  to  revoke  for  other                                                               
reasons.                                                                                                                        
                                                                                                                                
8:59:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  asked if  there have been  any discussions                                                               
with  local fire  departments regarding  marijuana  clubs in  the                                                               
case of  a fire.   She  opined that it  would seem  necessary for                                                               
employees not to use marijuana at the marijuana club.                                                                           
                                                                                                                                
MAYOR  HOPKINS  responded  that   he  wasn't  aware  of  specific                                                               
discussions on that issue.   However, there have been discussions                                                               
with  regard to  fire departments'  concerns with  the extraction                                                               
methods.  Mayor  Hopkins likened [a fire in a  marijuana club] to                                                               
a fire in a  bar with a lot of less  than fully aware individuals                                                               
with regard to fire exits.                                                                                                      
                                                                                                                                
REPRESENTATIVE HUGHES  opined that  it's a discussion  that needs                                                               
to occur.                                                                                                                       
                                                                                                                                
9:02:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that the committee  adopt Conceptual                                                               
Amendment 1, labeled 29-LS0345\P.5, Martin, 2/27/15, as follows:                                                                
                                                                                                                                
     Page 9, line 13:                                                                                                           
          Delete all material and insert:                                                                                       
               "(17)  "public place" means a place to which                                                                     
     the  public  or  a  substantial group  of  persons  has                                                                    
     access    and    includes   highways,    transportation                                                                    
     facilities, schools,  places of amusement  or business,                                                                    
     parks,  playgrounds,  prisons, and  hallways,  lobbies,                                                                    
     and other  portions of apartment houses  and hotels not                                                                    
     constituting  rooms or  apartments designed  for actual                                                                    
     residence; "public place" does  not include a marijuana                                                                    
     club."                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON pointed  out that  Conceptual Amendment  1                                                               
was drafted  to Version P, and  for Version I should  be inserted                                                               
on page 11, line 4.                                                                                                             
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
9:03:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  explained that under  Conceptual Amendment                                                               
1 the  definition of "public place"  is the same, except  for the                                                               
addition of  the language specifying  that a "public  place" does                                                               
not include a marijuana club.                                                                                                   
                                                                                                                                
9:04:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   REINBOLD  expressed   interest  in   adding  the                                                               
language "but  not limited to"  following the term  "includes" in                                                               
Conceptual Amendment 1.                                                                                                         
                                                                                                                                
REPRESENTATIVE SEATON explained  that the language Representative                                                               
Reinbold is amending  is the current legal  definition of "public                                                               
place."  He then related  his understanding that when Legislative                                                               
Legal  Services uses  the  term "includes"  it  interprets it  as                                                               
"includes but not limited to."                                                                                                  
                                                                                                                                
REPRESENTATIVE REINBOLD expressed concern  that the definition of                                                               
"public place" is  a small list of public places.   For instance,                                                               
churches aren't included in the list of a public place.                                                                         
                                                                                                                                
MS.  MARTIN   explained  that  a  provision   in  Alaska  statute                                                               
specifies that  when the term  "including" is used it  means "but                                                               
not  limited to."   Generally,  the language  "including but  not                                                               
limited to" is not used  because it's already implied through the                                                               
general statute that applies.                                                                                                   
                                                                                                                                
REPRESENTATIVE  REINBOLD interjected  that  if  that's the  case,                                                               
then  she definitely  wanted  to include  the  language "but  not                                                               
limited to" as it would add a tiny bit of clarity.                                                                              
                                                                                                                                
9:06:39 AM                                                                                                                    
                                                                                                                                
The committee took an at ease from 9:06 a.m. to 9:09 a.m.                                                                       
                                                                                                                                
9:09:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  moved  that   the  committee  adopt  an                                                               
amendment  to Conceptual  Amendment  1, such  that in  Conceptual                                                               
Amendment 1 following  the term "includes" the  language "but not                                                               
limited to"  would be  inserted.  There  being no  objection, the                                                               
amendment to Conceptual Amendment 1 was adopted.                                                                                
                                                                                                                                
9:10:39 AM                                                                                                                    
                                                                                                                                
[CHAIR TILTON treated her objection  to Conceptual Amendment 1 as                                                               
withdrawn.]                                                                                                                     
                                                                                                                                
There  being no  further  objection, Conceptual  Amendment 1,  as                                                               
amended, was adopted.                                                                                                           
                                                                                                                                
9:10:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that  the committee  adopt Amendment                                                               
2, labeled 29-LS0345\P.6, Martin,  3/2/15, with changes to insert                                                               
in Version I, as follows:                                                                                                       
                                                                                                                                
     Page 11, line 2, following "by":                                                                                           
     Insert "paying"                                                                                                            
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
9:12:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  explained  that  the notion  is  to  have                                                               
enough of  a definition for a  marijuana club such that  it's not                                                               
confused with  a public  place.   Therefore, the  club membership                                                               
[offers  more definition]  rather than  a weakening  of the  term                                                               
"public place."                                                                                                                 
                                                                                                                                
9:13:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES surmised that  the committee is envisioning                                                               
a marijuana  club as an  established physical location that  is a                                                               
club  to which  members would  pay  a membership.   However,  she                                                               
questioned whether  there is the  potential for a  marijuana club                                                               
to  be  a  paying  group  that could  move  around  to  different                                                               
locations.    She  then  noticed  that  the  language  refers  to                                                               
"registered premises," and asked if that addresses the concern.                                                                 
                                                                                                                                
REPRESENTATIVE  SEATON  clarified  that   the  language  "on  the                                                               
registered  premises and  whose members  are 21  years of  age or                                                               
older"  is  included  in  order  to  avoid  situations  to  which                                                               
Representative Hughes is referring.                                                                                             
                                                                                                                                
9:14:50 AM                                                                                                                    
                                                                                                                                
The committee took an at ease from 9:14 a.m. to 9:17 a.m.                                                                       
                                                                                                                                
9:17:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON further clarified  that Amendment 2 ensures                                                               
that  a  marijuana club  has  to  have  a license  or  registered                                                               
premises so  that there  is official recognition  that this  is a                                                               
location for which  its members have to be 21  years or older and                                                               
are  paying members  of  the  club.   Amendment  2 addresses  the                                                               
request  for folks  to legally  consume marijuana  in a  location                                                               
other than their own home  while maintaining some control over it                                                               
as  previously  explained.    He noted,  however,  that  since  a                                                               
marijuana club is a separate  designation, a local government may                                                               
allow or  disallow such  an establishment even  if other  uses of                                                               
marijuana are allowed.                                                                                                          
                                                                                                                                
9:18:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES asked whether  language stating those under                                                               
21 aren't permitted  to be on the premises should  be included as                                                               
it's not  that clear in  the definition.   She then  inquired how                                                               
including  the term  "paying" provides  a better  sideboard in  a                                                               
scenario in  which a  wealthy individual  opens a  marijuana club                                                               
and covers the  cost of membership for people.   Furthermore, she                                                               
questioned whether under the  proposed language children wouldn't                                                               
be   allowed   on   the   premises   [of   a   marijuana   club].                                                               
Representative  Hughes   clarified  that  the   language  doesn't                                                               
specify  that  those  under  the  age of  21  couldn't  be  in  a                                                               
marijuana club.                                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON deferred to Ms. Martin.                                                                                   
                                                                                                                                
CHAIR TILTON noted  that Ms. Martin wasn't  available for comment                                                               
at this time.                                                                                                                   
                                                                                                                                
9:21:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES asked  if HB  75 is  the only  legislation                                                               
that has a definition for a marijuana club.                                                                                     
                                                                                                                                
MR. HILYARD  answered that to his  knowledge at this time,  HB 75                                                               
is the  only bill  that refers  specifically to  marijuana clubs.                                                               
The language  referring to  marijuana clubs  was included  at the                                                               
request of  a number  of municipalities,  including the  City and                                                               
Borough  of Juneau,  so that  the municipalities  could determine                                                               
whether to  allow or  disallow such a  facility at  the municipal                                                               
level.   The  municipalities  needed the  legislature  to act  in                                                               
order for the municipalities to be able to make the choice.                                                                     
                                                                                                                                
9:22:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES requested  comment from  Legislative Legal                                                               
Services  as  to  whether  the   proposed  language  would  cover                                                               
prohibiting children  from being  on the  premises or  whether it                                                               
would need  to be added,  or whether  the control board  could do                                                               
that by regulation.                                                                                                             
                                                                                                                                
9:22:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that the committee  adopt Conceptual                                                               
Amendment 1 to Amendment 2, as follows:                                                                                         
                                                                                                                                
     Page 11, line 3, following "older":                                                                                        
        Insert "and does not children under age of 21 on                                                                        
     premises while marijuana is being consumed"                                                                                
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
9:23:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  suggested   that  the  language  "while                                                               
marijuana  is  being  consumed"  in  Conceptual  Amendment  1  to                                                               
Amendment 2 could  be deleted.  She opined that  the intention of                                                               
the initiative was not to allow children in a marijuana club.                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON   reminded  the  committee  that   it's  a                                                               
conceptual  amendment.    He  pointed out  that  there  could  be                                                               
situations  in  which  a   facility  [registered/licensed]  as  a                                                               
marijuana  club   could  be  used   at  other  times   for  other                                                               
activities.  He expressed his  intent [with the amendment] was to                                                               
ensure  that  children  wouldn't  be  around  when  marijuana  is                                                               
consumed.   He  indicated that  he wasn't  sure about  [inserting                                                               
language]   that  would   [disallow]  the   use  of   a  licensed                                                               
establishment for other purposes.                                                                                               
                                                                                                                                
REPRESENTATIVE REINBOLD  then suggested that the  language should                                                               
include "under 21 during hours of operation".                                                                                   
                                                                                                                                
REPRESENTATIVE HUGHES pointed  out that even when a  child is not                                                               
in a  marijuana club when  marijuana is being consumed  or during                                                               
its  hours of  operation, children  could see  the paraphernalia.                                                               
Therefore, she expressed the need  for a requirement that outside                                                               
of  the  hours  of  operation   when  a  child  is  present,  the                                                               
paraphernalia has to be put away out of view.                                                                                   
                                                                                                                                
9:26:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  withdrew   Conceptual  Amendment   1  to                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
CHAIR  TILTON  announced  that  Amendment 2  is  now  before  the                                                               
committee.     She  noted  that  the   House  Judiciary  Standing                                                               
Committee could address this aspect.                                                                                            
                                                                                                                                
9:27:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  suggested that language could  be inserted                                                               
relating  that  children  wouldn't  be allowed  on  the  premises                                                               
during  hours of  operation if  the  facility is  used for  other                                                               
activities  when  marijuana  is  not  being  consumed,  that  the                                                               
products and paraphernalia related to  marijuana be out of public                                                               
view.                                                                                                                           
                                                                                                                                
9:28:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND inquired  as  to how  alcohol laws  deal                                                               
with  this  matter.   Drawing  from  her  time on  the  Anchorage                                                               
Assembly, she recalled a situation  in which there was a question                                                               
as to whether paid professional musicians  over the age of 18 but                                                               
under  age  21  could  perform  in bar  where  liquor  was  being                                                               
consumed.     She  opined  that  the   House  Judiciary  Standing                                                               
Committee should address this issue.   She then expressed concern                                                               
with  cleaning  crews  of  such facilities  that  might  have  an                                                               
employee under  the age  of 21.   Although  she surmised  that at                                                               
some point  how a club  operates will  have to be  addressed, she                                                               
wasn't sure it was under the purview of this committee.                                                                         
                                                                                                                                
9:29:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD announced  her support for Representative                                                               
Hughes'  suggested  language  as  it's  the  committee's  job  to                                                               
protect children and ensure public safety.                                                                                      
                                                                                                                                
9:29:51 AM                                                                                                                    
                                                                                                                                
The committee took an at ease from 9:29 a.m. to 9:32 a.m.                                                                       
                                                                                                                                
9:32:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  moved Conceptual Amendment 2  to Amendment                                                               
2, as follows:                                                                                                                  
                                                                                                                                
     Page 11, line 3, following "older":                                                                                        
          Insert "children would not be permitted on the                                                                        
     premises during hours of operation  and if the facility                                                                    
     is used  outside that activity for  other purposes that                                                                    
     the  marijuana related  products  and paraphernalia  be                                                                    
     put out of public view for under age 21"                                                                                   
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
REPRESENTATIVE  HUGHES expressed  the importance  of adding  this                                                               
language to protect children, although  she acknowledged that the                                                               
language may need more work.                                                                                                    
                                                                                                                                
9:33:46 AM                                                                                                                    
                                                                                                                                
CHAIR  TILTON withdrew  her objection.   There  being no  further                                                               
objection, Conceptual Amendment 2 to Amendment 2 was adopted.                                                                   
                                                                                                                                
9:34:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  inquired as  to the  sidebars of  the term                                                               
"paying" being inserted by Conceptual Amendment 2, as amended.                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  explained that the idea  behind Conceptual                                                               
Amendment 2,  as amended, is that  a paying membership is  a more                                                               
defined actual  club.  He noted  that there are lots  of examples                                                               
of social clubs  with paying memberships and the  desire with the                                                               
amendment  was  to  define  it  more  narrowly  and  allow  local                                                               
jurisdictions   to  define   it   within   their  own   licensing                                                               
requirements.  The paying membership  assumes that the membership                                                               
is paid  by the  member, and  thus he said  he didn't  believe an                                                               
open area for  which one individual paid [for  all members] would                                                               
be considered a paid membership.                                                                                                
                                                                                                                                
9:36:20 AM                                                                                                                    
                                                                                                                                
CHAIR  TILTON   [withdrew  her  objection]  and   announced  that                                                               
Amendment 2, as amended, was adopted.                                                                                           
                                                                                                                                
9:36:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  moved that  the committee  adopt Amendment                                                               
3, I.1, which read:                                                                                                             
                                                                                                                                
     Page 2, line 29, following "section":                                                                                  
          Insert ";                                                                                                         
               (C) growing marijuana plants for another                                                                     
        person in a place other than that other person's                                                                    
     residence"                                                                                                             
                                                                                                                                
CHAIR TILTON objected for discussion purposes.                                                                                  
                                                                                                                                
9:37:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  explained that  Amendment 3 means  that an                                                               
individual couldn't  grow plants in  his/her house for  others in                                                               
the  community.   An individual  could assist  another person  so                                                               
long as  the plants are  located in  the residence of  the person                                                               
being assisted.                                                                                                                 
                                                                                                                                
9:38:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  inquired as  to whether the  definition of                                                               
"residence" includes the entire  property of the individual being                                                               
assisted or does it have to be in the dwelling.                                                                                 
                                                                                                                                
REPRESENTATIVE   SEATON   presumed   that   the   definition   of                                                               
"residence" would  include the property  of the house.   However,                                                               
he  reminded  the committee  that  there  are restrictions  about                                                               
growing marijuana plants in public view  or in view from a public                                                               
place.  In some circumstances,  [the growing would be restricted]                                                               
to  being  done  indoors.    Amendment  3,  he  stated,  strictly                                                               
prohibits  an  individual  from   growing  marijuana  plants  for                                                               
someone else other than at the other person's residence.                                                                        
                                                                                                                                
9:39:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES inquired  as  to  whether [the  initiative                                                               
includes] any prohibitions against  marijuana being grown outside                                                               
in a yard or in a greenhouse.                                                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON   said  he  could  only   recall  that  an                                                               
individual  can't  grow marijuana  beside  a  park, even  if  the                                                               
individual owns the backyard.   He opined that the aforementioned                                                               
is included in other legislation  moving through the legislature.                                                               
The purpose of Amendment 3, he  specified, is to avoid large grow                                                               
operations for multiple people from other places.                                                                               
                                                                                                                                
REPRESENTATIVE HUGHES  said she  appreciated and agreed  with the                                                               
intent, but questioned whether it's  allowable for someone who is                                                               
growing  marijuana for  medical  purposes  to do  so  in a  green                                                               
house.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  DRUMMOND directed  attention to  the language  on                                                               
page  11, line  5, which  says "(18)  "residence" means  a single                                                               
dwelling  unit."   She then  recalled that  marijuana grown  in a                                                               
backyard can't  be visible, even from  the air.  She  agreed with                                                               
Representative Seaton  that whether marijuana  can be grown  in a                                                               
backyard is addressed [in other proposed legislation].                                                                          
                                                                                                                                
9:42:23 AM                                                                                                                    
                                                                                                                                
CHAIR  TILTON withdrew  her objection.   There  being no  further                                                               
objection, Amendment 3 was adopted.                                                                                             
                                                                                                                                
9:43:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved  to  report CSHB  75,  Version  29-                                                               
LS0345\I, Nauman/Martin,  2/27/15, as  amended, out  of committee                                                               
with individual recommendations and the accompanying fiscal                                                                     
notes.  There being no objection, CSHB 75(CRA) was reported from                                                                
the House Community and Regional Affairs Standing Committee.                                                                    

Document Name Date/Time Subjects
Legal Opinion, Administrative Procedures Act.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
CS HB 75 Version I.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
CSHB 75 Legal Memorandum, Equal Protection and household limits.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
Home Manufacture of Alcohol State Statutes.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
Yield Per Plant, Marijuana.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
How much is an ounce.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
Keg Sizes.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
CSHB75 Sectional Analysis versionI.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
CSHB75 Explanation of Changes, versionI.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
HB 75_amend P 5_public place definition.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
2015 02 25_February_Marijuana Club as a public place.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
HB 75_P 6_paying pot clubs and public place.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
Legal Opinion, Title 29 and Criminal Penalties.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
Legal Opinion, HB75 and Establishment Revocation.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
MPP Position Statement, CSHB75 - 03032015.pdf HCRA 3/3/2015 8:00:00 AM
HB 75
CSHB75 versionI, Amendments as adopted.pdf HCRA 3/3/2015 8:00:00 AM
HB 75