Legislature(2017 - 2018)HOUSE FINANCE 519

02/22/2017 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 24 LIST U-47700 AS A CONTROLLED SUBSTANCE TELECONFERENCED
Moved CSHB 24(FIN) Out of Committee
+ HB 48 ARCHITECTS,ENGINEERS,SURVEYORS: EXTEND BD TELECONFERENCED
Moved HB 48 Out of Committee
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 59 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Reports; Amendment Proposals as TELECONFERENCED
available
+ New Operating Budget Amendment System TELECONFERENCED
Presentation: by David Teal, Dir. Leg. Fin. Div.
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 24                                                                                                             
                                                                                                                                
     "An Act classifying U-47700 as a schedule IA                                                                               
     controlled substance; and providing for an effective                                                                       
     date."                                                                                                                     
                                                                                                                                
1:52:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHARISSE  MILLETT,  SPONSOR,  explained  the                                                                    
bill that had  come to her office via  the governor's office                                                                    
in the  fall. One  of the things  identified in  the ongoing                                                                    
opioid crisis facing  the state was that  the combination of                                                                    
opioids  and synthetic  additives  were  making the  problem                                                                    
even  more deadly.  She detailed  that  U47700, also  called                                                                    
Pink, was an  additive being cut into  heroin. She specified                                                                    
the drug was incredibly potent  and could be seven times the                                                                    
potency of  morphine. The  synthetic drug  was leading  to a                                                                    
new  realm of  danger  in the  ongoing  drug problem  facing                                                                    
communities. There was no medical use  for the drug - it had                                                                    
no medical  value. The drug  was easily made and  was easily                                                                    
obtained on  the internet. It  was not illegal to  order the                                                                    
drug  in  Alaska.  Law  enforcement was  seeing  a  rise  in                                                                    
overdoses with Pink added to  the substance individuals were                                                                    
overdosing on.                                                                                                                  
                                                                                                                                
Representative  Millett   explained  that  the   bill  would                                                                    
classify Pink  as a  IA drug;  it was  already there  in the                                                                    
federal registry.  In the future  there were  numerous drugs                                                                    
that were  already being produced  that would at  some point                                                                    
need to be  put on the schedule. One of  the ideas generated                                                                    
from the  bill was  looking at  what the  federal government                                                                    
did when it had drugs that  had no medical reason or purpose                                                                    
- the federal  government had a regulatory  authority to put                                                                    
the drugs on  the federal registry. She suggested  it may be                                                                    
something  the  Alaska  Legislature should  consider.  Every                                                                    
time she spoke  to public safety [officials]  she was amazed                                                                    
at the ease  and drug process of changing  one ingredient in                                                                    
a synthetic drug that made  it legal. She believed the state                                                                    
would be  seeing much more  to come.  She noted it  had been                                                                    
witnessed  during the  Spice  [synthetic  drug] crisis.  She                                                                    
noted that the  suggestion would be difficult  to include in                                                                    
the current  bill. She believed Governor  Walker was looking                                                                    
for a  way of including  drugs on the  schedule by way  of a                                                                    
regulatory process. She cited  tramadol as another drug that                                                                    
had  been addressed  by  the  Controlled Substance  Advisory                                                                    
Committee.  She noted  there were  individuals available  to                                                                    
testify about the immediate danger  of Pink and about how it                                                                    
was impacting the state's communities and residents.                                                                            
                                                                                                                                
1:56:33 PM                                                                                                                    
                                                                                                                                
Representative   Guttenberg   referred   to   Representative                                                                    
Millett's statement about the  ability to use the regulatory                                                                    
process [to put  synthetic drugs on a  register]. He thought                                                                    
the legislature  had passed something similar  several years                                                                    
earlier. He asked if it had been a different schedule.                                                                          
                                                                                                                                
Representative  Millett answered  that  the legislature  had                                                                    
passed  legislation  with  a controlled  substance  advisory                                                                    
committee that  reviewed drugs that  had no  medical purpose                                                                    
or were identified by public  safety. The advisory committee                                                                    
made  recommendations about  drugs to  put on  the schedule,                                                                    
which  was how  Pink and  tramadol had  been brought  to the                                                                    
legislature. She  did not know  of any other current  way of                                                                    
putting a drug on the schedule than via legislation.                                                                            
                                                                                                                                
Representative Guttenberg  remarked the  drug was  number 82                                                                    
on the list  and every time a molecule was  manipulated in a                                                                    
formula the  legislature had to  go through  the legislative                                                                    
process. He looked forward to  a time when the process could                                                                    
be done administratively.                                                                                                       
                                                                                                                                
Representative Millett  agreed. She believed there  would be                                                                    
more drugs  of the same nature  - with no medical  purpose -                                                                    
introduced into the state's communities.                                                                                        
                                                                                                                                
1:58:31 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster joined the meeting.                                                                                             
                                                                                                                                
Vice-Chair  Gara  asked  for  the  ramifications  of  making                                                                    
something a  schedule IA substance.  He asked if it  meant a                                                                    
drug  could  be  made  legal  if a  doctor  made  it  legal.                                                                    
Alternatively,  he wondered  if  the action  simply put  the                                                                    
drug on the criminal drug list.                                                                                                 
                                                                                                                                
Representative  Millett deferred  to the  Department of  Law                                                                    
(DOL).                                                                                                                          
                                                                                                                                
Vice-Chair Gara reiterated his question.                                                                                        
                                                                                                                                
Representative Millett  answered that possession would  be a                                                                    
misdemeanor, distribution of  less than one gram  would be a                                                                    
class C  felony, and distribution  exceeding one  gram would                                                                    
be a class B felony.                                                                                                            
                                                                                                                                
Co-Chair Seaton listed testifiers available online.                                                                             
                                                                                                                                
Vice-Chair  Gara  asked  for  ramifications  of  adding  the                                                                    
substance to the controlled substances list.                                                                                    
                                                                                                                                
2:01:50 PM                                                                                                                    
                                                                                                                                
ROB  HENDERSON,  CONTROLLED SUBSTANCES  ADVISORY  COMMITTEE,                                                                    
DEPARTMENT  OF  LAW  (via teleconference),  replied  that  a                                                                    
schedule IA under  Alaska law was different  than a schedule                                                                    
I on  the federal  schedule. In Alaska  there were  drugs on                                                                    
the schedule IA  with a medical purpose,  but drugs included                                                                    
in the  schedule in Alaska  were considered so  dangerous or                                                                    
susceptible to abuse that the  committee ranked them as high                                                                    
as possible  on the  schedule. Generally speaking  they were                                                                    
talking  about the  criminal schedule  - in  Title 11  under                                                                    
possession  and distribution  and  also in  Title 28,  which                                                                    
included  driving  under  the   influence  of  a  controlled                                                                    
substance.                                                                                                                      
                                                                                                                                
Vice-Chair  Gara  asked  for  verification  Mr.  Henderson's                                                                    
response  included all  ramifications of  putting a  drug on                                                                    
the [controlled  substances] list.  He surmised that  it may                                                                    
be possible  with some  of the  other drugs  on the  list to                                                                    
obtain  a   prescription  if  there  was   another  use.  He                                                                    
understood  no one  would be  receiving  a prescription  for                                                                    
Pink.                                                                                                                           
                                                                                                                                
Mr.  Henderson answered  there  were  some other  controlled                                                                    
substances classified  as IA that  could be  prescribed. The                                                                    
other  implication would  be  things  like the  Prescription                                                                    
Drug  Monitoring Program  and  other  regulatory aspects  of                                                                    
prescription drugs.  However, the purpose of  including Pink                                                                    
on the  schedule would  be to  attach criminal  liability to                                                                    
its possession or distribution.                                                                                                 
                                                                                                                                
Vice-Chair Gara  stated that Pink was  illegal under federal                                                                    
law. He  asked if  local and state  law enforcement  was not                                                                    
currently  able to  arrest a  person for  the substance  and                                                                    
hand them over to the  federal authorities. He wondered what                                                                    
was currently allowed for state law enforcement.                                                                                
                                                                                                                                
Mr.  Henderson answered  that  local  law enforcement  would                                                                    
have the  ability to investigate  and refer charges  over to                                                                    
the  federal  government,  but  local  law  enforcement  was                                                                    
really just charged with enforcing  state law. The state law                                                                    
enforcement did work  collaboratively with federal partners,                                                                    
but the primary charge was to enforce federal [state] law.                                                                      
                                                                                                                                
2:04:35 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara   asked  if   local  law   enforcement  was                                                                    
currently allowed  to arrest someone  for the  substance and                                                                    
to refer the individual over to federal authorities.                                                                            
                                                                                                                                
Mr.  Henderson  replied  they  legally  could  if  they  had                                                                    
authorization from  or permission  from the  U.S. Attorney's                                                                    
Office.                                                                                                                         
                                                                                                                                
Representative  Kawasaki   stated  that  the   DOL  attorney                                                                    
general had  sent a memorandum  dated February 1  [2017]. He                                                                    
was  unclear about  whether  a state  trooper  could stop  a                                                                    
person who  was distributing  the drug.  He stated  that the                                                                    
memo   specified  that   if  the   legislature  passed   the                                                                    
legislation and  designated the substance  as a  schedule IA                                                                    
in statute that Alaska would  allow state law enforcement to                                                                    
stop  distributors.  Without the  passage  of  the bill,  he                                                                    
asked whether  as state  trooper could  arrest a  person for                                                                    
distribution or possession.                                                                                                     
                                                                                                                                
Mr. Henderson  responded there  were state  troopers working                                                                    
collaboratively with  federal law enforcement and  were able                                                                    
to  make  arrests  for  violation   of  federal  drug  laws.                                                                    
However, the  typical Alaska State Trooper  was charged with                                                                    
enforcing   state  law.   Unless  something   represented  a                                                                    
violation of state law, the item  would not be a priority in                                                                    
an investigation.                                                                                                               
                                                                                                                                
Representative  Kawasaki  asked   for  verification  that  a                                                                    
downtown patrol officer  in the City of Juneau  or a Village                                                                    
Public  Safety Officer  (VPSO) in  a rural  area could  take                                                                    
action without the passage of HB 24.                                                                                            
                                                                                                                                
Mr. Henderson answered  that the officer would  not have the                                                                    
ability  to take  action without  prior discussion  with the                                                                    
U.S.  Attorney's  Office.  He  explained  that  without  the                                                                    
discussion there  would be  no mechanism  in which  to enter                                                                    
the  arrest into  the federal  criminal  justice system.  He                                                                    
detailed that if  a local law enforcement  officer came into                                                                    
contact with  U47700 during normal  duties, an  arrest would                                                                    
not be made and it would  most likely be referred to federal                                                                    
law enforcement.                                                                                                                
                                                                                                                                
2:07:45 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki believed  substances 72  through 81                                                                    
had been  passed since  he had been  in the  legislature. He                                                                    
remarked that  statute had  been passed  for Spice  and Bath                                                                    
Salts  [synthetic drugs].  He believed  there had  to be  an                                                                    
easier way to handle the  situation than always adding a new                                                                    
substance to a list. He supported a regulatory mechanism.                                                                       
                                                                                                                                
Co-Chair Foster OPENED and CLOSED public testimony.                                                                             
                                                                                                                                
2:09:27 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:11:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster  MOVED to  ADOPT Amendment  1, 30-LS0260\A.1                                                                    
(Martin, 2/10/17) (copy on file):                                                                                               
                                                                                                                                
     Page 4, lines 28 - 29:                                                                                                     
                                                                                                                                
     Delete all material and insert:                                                                                            
     "(82)   3,4-dichloro-N-[2-(dimethylamino)cyclohexyl]-N-                                                                    
     methylbenzamide, also known as U-47700.'                                                                                   
                                                                                                                                
Representative Kawasaki OBJECTED for discussion.                                                                                
                                                                                                                                
Co-Chair   Foster  explained   the  amendment   corrected  a                                                                    
spelling error to include a missing "z."                                                                                        
                                                                                                                                
Representative Kawasaki WITHDREW  his OBJECTION. There being                                                                    
NO further OBJECTION, Amendment 1 was ADOPTED.                                                                                  
                                                                                                                                
2:12:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  MOVED to  ADOPT Amendment  2, 30-LS0260\A.2                                                                    
(Martin, 2/17/17) (copy on file):                                                                                               
                                                                                                                                
     Page 1, line 1, following "substance;":                                                                                    
     Insert "classifying tramadol  and related substances as                                                                    
     schedule IVA controlled substances;"                                                                                       
                                                                                                                                
     Page 4, following line 29:                                                                                                 
     Insert a new bill section to read:                                                                                         
     1*  Sec. 2.  AS 11.71.170  is amended  by adding  a new                                                                    
     subsection to read:                                                                                                        
     (g)   Schedule   IVA  includes,   unless   specifically                                                                    
     excepted  or unless  listed  in  another schedule,  any                                                                    
     material,  compound,  mixture,   or  preparation  which                                                                    
     contains  any quantity  of the  following substance  or                                                                    
     its  salts calculated  as the  free  anhydrous base  or                                                                    
     alkaloid:    2-[(dimethylamino)methyl]-    1   -(3    -                                                                    
     methoxyphenyl)cyclohexanol,  its   salts,  optical  and                                                                    
     geometric   isomers,  and   salts  of   these  isomers,                                                                    
     including tramadol."                                                                                                       
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair Foster  explained that  Amendment 2  would classify                                                                    
tramadol and related substances as schedule IVA substances.                                                                     
                                                                                                                                
GRACE  ABBOTT,   STAFF,  REPRESENTATIVE   CHARISSE  MILLETT,                                                                    
explained  that  the  amendment   followed  along  the  same                                                                    
recommendation  from  the   Controlled  Substances  Advisory                                                                    
Committee  along  with  scheduling  Pink as  a  schedule  IA                                                                    
controlled   substance.    The   advisory    committee   had                                                                    
recommended that tramadol be classified  as a IVA controlled                                                                    
substance.   The  amendment   would   follow  the   advisory                                                                    
committee's recommendation.  The amendment was  also aligned                                                                    
with the way  the federal schedule had read  since 2014. She                                                                    
relayed that  Mr. Henderson could elaborate  on the advisory                                                                    
committee's recommendation.                                                                                                     
                                                                                                                                
Representative  Kawasaki   asked  whether  tramadol   had  a                                                                    
medical  function. Additionally,  he queried  the difference                                                                    
between the schedule IA and IVA.                                                                                                
                                                                                                                                
Ms. Abbott answered  that as the schedule went from  VI to I                                                                    
it became more  severe. Tramadol had a medical  purpose as a                                                                    
pain killer; the specific drug  could be used properly under                                                                    
a doctor's prescription. Under the  IVA schedule there would                                                                    
be consequences  for individuals selling the  drug illicitly                                                                    
or providing the drug to people under the age of 19.                                                                            
                                                                                                                                
Representative Wilson asked if the  only way to get the drug                                                                    
was through prescription. Ms. Abbott believed so.                                                                               
                                                                                                                                
Representative  Wilson thought  it  was  already illegal  to                                                                    
sell a prescribed medication.                                                                                                   
                                                                                                                                
Ms. Abbott answered  that the question was  beyond her scope                                                                    
of  understanding,  but putting  the  drug  on the  schedule                                                                    
allowed for  certain consequences  for criminal  purposes as                                                                    
well as  providing it  to people  under the  age of  19. She                                                                    
deferred to Mr. Henderson for further explanation.                                                                              
                                                                                                                                
2:15:08 PM                                                                                                                    
                                                                                                                                
Mr. Henderson explained that it  was already against federal                                                                    
law,  but it  was  not  a violation  of  Alaska law  because                                                                    
tramadol  was not  classified as  a controlled  substance by                                                                    
the state. The amendment would align federal and state law.                                                                     
                                                                                                                                
Representative   Wilson  asked   if  she   could  sell   any                                                                    
prescriptions  for   profit  as   long  as  they   were  not                                                                    
classified as schedule I to VI.                                                                                                 
                                                                                                                                
Mr. Henderson  answered it depended on  the prescription and                                                                    
it  depended  on if  it  was  a controlled  substance  under                                                                    
federal  or state  law. There  were some  prescription drugs                                                                    
that would not fall under  Title 11. However, the department                                                                    
tried to make federal and state law consistent.                                                                                 
                                                                                                                                
Representative  Wilson believed  the  amendment changed  the                                                                    
bill.  She had  always  thought  it was  illegal  to sell  a                                                                    
prescription. She  asked for verification that  currently if                                                                    
she  sold  tramadol  received in  a  prescription  that  the                                                                    
Juneau Police could not arrest her.                                                                                             
                                                                                                                                
Mr.  Henderson replied  that  if  Representative Wilson  was                                                                    
selling tramadol  at present,  it would  not currently  be a                                                                    
violation of state law.                                                                                                         
                                                                                                                                
Representative Wilson wondered why  all of a sudden tramadol                                                                    
needed to be  added to the schedule. She asked  what it took                                                                    
to get  on the  schedule. She  asked what  particular issues                                                                    
had  taken  place that  warranted  putting  tramadol on  the                                                                    
list.                                                                                                                           
                                                                                                                                
Mr.  Henderson answered  that tramadol  had been  around for                                                                    
some time  and it  had first  come to  the attention  of the                                                                    
advisory committee  approximately 18  months earlier  when a                                                                    
representative  from  western  Alaska  had  testified  about                                                                    
abuse occurring  with tramadol.  The advisory  committee had                                                                    
heard about  it again the past  fall when it had  received a                                                                    
letter  from the  Alaska Pharmacists  Association requesting                                                                    
the committee recommend the scheduling  of tramadol. In part                                                                    
the request  was due to  the inconsistency  existing between                                                                    
federal and  state law. He elaborated  that individuals were                                                                    
able to obtain tramadol legally  or illegally, but state law                                                                    
enforcement was unable to address the issue.                                                                                    
                                                                                                                                
Representative  Wilson thought  any drug  manufactured would                                                                    
automatically  fall under  schedule I  through VI  under the                                                                    
philosophy  that  it could  be  misused  or sold  for  other                                                                    
purposes.                                                                                                                       
                                                                                                                                
2:19:22 PM                                                                                                                    
                                                                                                                                
Mr.  Henderson answered  it was  a policy  question for  the                                                                    
legislature. When  the advisory committee had  discussed the                                                                    
issue it  had recognized the current  scheduling process was                                                                    
not  as  nimble or  flexible  as  in  some other  states  or                                                                    
federal  government that  could regulate  drugs, which  were                                                                    
ratified or adopted by Congress.                                                                                                
                                                                                                                                
Vice-Chair Gara  asked if the amendment  would only classify                                                                    
tramadol as  a IVA drug.  He asked for verification  that it                                                                    
was not currently classified as a IVA drug.                                                                                     
                                                                                                                                
Mr. Henderson  replied that he  did not  have a copy  of the                                                                    
amendment.  The testimony  and information  received by  the                                                                    
advisory  committee was  tramadol.  He noted  it would  make                                                                    
sense to include other related substances.                                                                                      
                                                                                                                                
Vice-Chair Gara shared that he  had broken his ribs the past                                                                    
year and had wanted the  lowest level pain killer the doctor                                                                    
could prescribe, but the doctor  had prescribed tramadol. He                                                                    
asked  if he  would  have committed  a crime  if  he gave  a                                                                    
person a tramadol.                                                                                                              
                                                                                                                                
Mr.  Henderson  replied it  was  a  difficult question  that                                                                    
implicated   several   different  criminal   statutes.   The                                                                    
distribution  of a  controlled substance,  depending on  the                                                                    
type,  was   a  crime.  There  were   various  justification                                                                    
defenses  that   would  relieve   the  person   of  criminal                                                                    
liability (e.g. for necessity).                                                                                                 
                                                                                                                                
2:22:01 PM                                                                                                                    
                                                                                                                                
Representative  Ortiz  spoke  to  Representative  Kawasaki's                                                                    
earlier question related to  the difference between schedule                                                                    
I and  IV drugs. He  referred to Ms. Abbott's  response that                                                                    
there was more severity [increasing  from schedule VI to I].                                                                    
He  asked  if Ms.  Abbott  was  speaking about  severity  of                                                                    
complications with the drug itself causing more danger.                                                                         
                                                                                                                                
Ms. Abbott answered  in the affirmative. The  danger and the                                                                    
severity of punishment increased  along with the schedule of                                                                    
the drug. She deferred to the department for more detail.                                                                       
                                                                                                                                
Representative Ortiz  asked if in layman's  terms the U47700                                                                    
was less dangerous than tramadol.  Ms. Abbott clarified that                                                                    
U47700  was more  dangerous. She  explained that  schedule I                                                                    
was the most severe and schedule VI was the least severe.                                                                       
                                                                                                                                
Representative  Kawasaki  asked  if  adding a  drug  to  the                                                                    
schedule  would   change  any  prescription   authority  for                                                                    
prescribers.                                                                                                                    
                                                                                                                                
Mr. Henderson deferred  the question. He did  not believe it                                                                    
changed the prescription authority.                                                                                             
                                                                                                                                
Representative   Kawasaki  had   some   concern  about   the                                                                    
amendment coming in  so late. He knew tramadol  was a useful                                                                    
medication  that  he  believed   was  often  prescribed.  He                                                                    
recognized  the  substance  was   ripe  for  abuse,  but  he                                                                    
believed  adding it  to the  list of  schedule IV  drugs may                                                                    
complicate things in  the future. He requested  an answer to                                                                    
the question.                                                                                                                   
                                                                                                                                
2:25:17 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg heard DOL  say that at the federal                                                                    
level some organization  put a drug on its list  and at some                                                                    
point Congress approved or disapproved  to make it official.                                                                    
He  asked if  it  was  the process  Mr.  Henderson had  been                                                                    
referring to.                                                                                                                   
                                                                                                                                
Mr.  Henderson answered  in the  affirmative. Under  federal                                                                    
law  the  Drug  Enforcement   Agency  (DEA)  had  regulatory                                                                    
authority; it could pass  emergency regulations and Congress                                                                    
had to  act within a specific  amount of time -  he believed                                                                    
it  was between  18 and  24  months. He  thought that  under                                                                    
federal  law   the  drug  would  fall   off  the  controlled                                                                    
substance schedule if Congress chose not to act.                                                                                
                                                                                                                                
Representative Guttenberg  asked whether, during  the period                                                                    
where Congress  had yet to  take action one way  or another,                                                                    
there was any  difference in the ability to  enforce. He was                                                                    
trying  to come  up with  a way  to mimic  what the  federal                                                                    
government did to make the process faster.                                                                                      
                                                                                                                                
Mr.  Henderson  answered  that the  advisory  committee  had                                                                    
discussed the  concept. He detailed that  the discussion had                                                                    
occurred  during   the  same   meeting  the   committee  had                                                                    
recommended  the  scheduling  of U47700  and  tramadol.  The                                                                    
advisory  committee  had   also  affirmatively  adopted  the                                                                    
recommendation  from  the  opioid taskforce,  which  was  to                                                                    
create  a  regulatory  body  to   address  the  issue  under                                                                    
discussion.  He believed  that with  a  clear delegation  of                                                                    
authority from  the legislature to  a regulatory  body would                                                                    
be feasible.  At that point  the emergency  regulation would                                                                    
have the full effect of the statute.                                                                                            
                                                                                                                                
2:27:46 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg asked if  there had been an actual                                                                    
recommendation  or  whether  the dialogue  had  taken  place                                                                    
without  any action.  He asked  if anything  in writing  had                                                                    
been   advanced  [by   the  advisory   committee]  to   help                                                                    
facilitate the action.                                                                                                          
                                                                                                                                
Mr.  Henderson  answered  it  had   only  been  a  committee                                                                    
dialogue;  it  had  been  the   first  opportunity  for  the                                                                    
advisory   committee   to   review  the   opioid   taskforce                                                                    
recommendation.  The concept  was being  actively considered                                                                    
by  the committee  and he  anticipated  the conversation  to                                                                    
continue during a meeting the following week.                                                                                   
                                                                                                                                
Co-Chair  Foster   WITHDREW  Amendment  2.  He   wanted  the                                                                    
original bill to  move forward. He noted they  could work on                                                                    
the tramadol component at a separate time.                                                                                      
                                                                                                                                
Representative  Millett agreed  that  if  the committee  was                                                                    
uncomfortable  it was  fine to  take the  amendment off  the                                                                    
table.  She  remarked there  was  a  companion bill  in  the                                                                    
Senate,  which  would have  a  bit  longer  to look  at  the                                                                    
tramadol  component. She  believed  U47700 needed  immediate                                                                    
action.                                                                                                                         
                                                                                                                                
Vice-Chair Gara asked about the public danger of tramadol.                                                                      
                                                                                                                                
Representative   Millett   answered  that   the   Controlled                                                                    
Substance  Abuse  Advisory  Committee was  seeing  a  higher                                                                    
propensity for  individuals to abuse tramadol.  She referred                                                                    
to  designer drugs  that came  about occasionally  and abuse                                                                    
that occurred  with the quantity  of tramadol. She  noted it                                                                    
was  possible   to  overdose   on  tramadol.   The  advisory                                                                    
committee had  seen a  higher usage  in street  terms rather                                                                    
than as a prescription. When  someone was buying 50 tramadol                                                                    
and taking, smoking,  or adding the drug  to something else,                                                                    
the  substance  became   dangerous.  There  were  substances                                                                    
already on  the schedule such  as codeine and  morphine that                                                                    
they  were  trying  to   combat.  Individuals  were  finding                                                                    
ingenious ways to  combine drugs and illicit  a higher high.                                                                    
She did  not believe the  advisory committee took  putting a                                                                    
drug on the schedule very lightly.                                                                                              
                                                                                                                                
2:32:08 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara stated the underlying  bill made sense as it                                                                    
addressed  a  drug  with no  beneficial  use;  however,  the                                                                    
doctor who had treated him when  he had broken ribs had told                                                                    
him tramadol was  the least of the  serious prescriptions he                                                                    
could  prescribe. He  asked Representative  Millett to  keep                                                                    
the committee apprised of the tramadol situation.                                                                               
                                                                                                                                
Representative Millett  replied that  she would  provide all                                                                    
of  the information  she received  related to  tramadol. She                                                                    
believed it was important to look  at the other drugs on the                                                                    
schedule in  order to  see what had  been included  over the                                                                    
years.  She   reiterated  that   people  were   creative  in                                                                    
concocting things  for a  high. She  imagined they  could be                                                                    
discussing mouthwash in the future.                                                                                             
                                                                                                                                
Vice-Chair  Gara   addressed  the  five   fiscal  previously                                                                    
published  zero   fiscal  notes   from  the   Department  of                                                                    
Corrections; the  Department of Health and  Social Services;                                                                    
the  Department of  Law; the  Department  of Public  Safety,                                                                    
Division  of Alaska  State Troopers;  and the  Department of                                                                    
Public Safety, Division of Statewide Support.                                                                                   
                                                                                                                                
Representative Kawasaki  remarked on the zero  fiscal notes.                                                                    
He surmised  that if a  drug was  added to the  schedule and                                                                    
the intent  was to  see prosecutions  and arrests  of people                                                                    
distributing the  drug, he did  not believe it  was possible                                                                    
for the  notes to have  zero impact.  He stated at  best the                                                                    
cost was indeterminate.                                                                                                         
                                                                                                                                
Representative  Wilson concurred,  especially pertaining  to                                                                    
fiscal  note  1  from  the Department  of  Corrections.  She                                                                    
stated her understanding that the  bill would make the crime                                                                    
a felony, which  would mean someone would end  up in prison.                                                                    
She referenced the  daily prison cost of  $149.62. She asked                                                                    
how many potential  people had to be locked up  to result in                                                                    
a  fiscal note.  She  asked how  many  potential arrests  it                                                                    
would take for  the Department of Public Safety  to submit a                                                                    
fiscal impact note.                                                                                                             
                                                                                                                                
2:36:52 PM                                                                                                                    
                                                                                                                                
CAPTAIN MICHAEL  DUXBURY, ALASKA STATE  TROOPERS, DEPARTMENT                                                                    
OF  PUBLIC SAFETY  (via teleconference),  answered that  the                                                                    
current  issue termed  by  many as  the  opioid problem  was                                                                    
actually  a multi-drug  use problem.  He explained  that the                                                                    
reason  the  department  had  asked   for  the  drug  to  be                                                                    
scheduled was  it is very  similar to other  scheduled drugs                                                                    
often  prescribed  including  oxycontin and  oxycodone.  The                                                                    
goal was to reduce the ability  of people to abuse the drugs                                                                    
or send them  through the mail. Currently the  drug could be                                                                    
purchased online even though it  was a prescription drug. He                                                                    
explained that submitting the zero  fiscal note was not with                                                                    
an  intention of  deceiving anyone,  it  reflected that  the                                                                    
department  saw the  drug in  conjunction  with other  drugs                                                                    
being  shipped  throughout  the state.  The  department  was                                                                    
looking for the scheduling to take  place in order to have a                                                                    
deterrence and to reduce the amount of bad choices.                                                                             
                                                                                                                                
2:39:05 PM                                                                                                                    
                                                                                                                                
Representative  Wilson thanked  Mr. Duxbury  for making  her                                                                    
point.  She referred  to one  of two  things taking  place -                                                                    
people were selling  a variety of drugs,  which meant adding                                                                    
the  drug  would  not  change  the  number  of  arrests  the                                                                    
department  was  making;  however,   she  had  a  hard  time                                                                    
believing the  troopers would not  be making more  arrests -                                                                    
she was  not saying  it was  a bad thing.  She spoke  to the                                                                    
prosecution  work done  by  the Department  of  Law and  the                                                                    
Department  of  Corrections.  She   asked  if  the  co-chair                                                                    
reviewed the  fiscal notes and  could send them back  to the                                                                    
departments to  say they did  not make sense. She  believe a                                                                    
zero fiscal  note sent the  wrong message. She  would prefer                                                                    
to see an indeterminate note versus a zero note.                                                                                
                                                                                                                                
2:40:50 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:43:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
addressed  the  confusion over  the  zero  fiscal notes.  He                                                                    
believed  members  were  looking  at  the  fiscal  notes  as                                                                    
information,  which they  were,  but they  were primarily  a                                                                    
request for  funding. The department in  its explanation was                                                                    
saying there  would be costs, but  because it was a  part of                                                                    
the  department's  current  duties  it  was  not  requesting                                                                    
additional  funds   to  enforce  the  particular   drug.  He                                                                    
clarified it  did not mean there  was no cost, it  meant the                                                                    
department  did not  want money  added to  its budget  to do                                                                    
work it  was already doing,  which was enforcing  drug abuse                                                                    
in general.                                                                                                                     
                                                                                                                                
Representative Wilson  asked for verification  the committee                                                                    
could take the  fiscal note to heart and  that the following                                                                    
year  when  the  department  came back  needing  more  money                                                                    
because  they arrested  people  and put  them  in jail,  the                                                                    
committee  could  remind  the  department it  had  lost  the                                                                    
opportunity to put the money in the fiscal note.                                                                                
                                                                                                                                
Mr.  Teal  confirmed that  the  committee  could remind  the                                                                    
department of  that. He continued that  the department would                                                                    
have actually lost  the opportunity to put the  funding in a                                                                    
fiscal  note;  however, that  did  not  mean the  department                                                                    
could  not  submit  an  increment   following  year  due  to                                                                    
unexpected  additional costs.  There may  be increments  for                                                                    
the issue, but the department  did not know that at present;                                                                    
therefore, in  the first year,  it was not making  a request                                                                    
through the fiscal note process.                                                                                                
                                                                                                                                
Representative Wilson  asked how many arrests  had been made                                                                    
under the  federal law for  the specific drug.  [Note: there                                                                    
was no reply.]                                                                                                                  
                                                                                                                                
2:46:17 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara stated that he  was done with receiving zero                                                                    
fiscal notes when  things cost money. He  expounded that the                                                                    
district  attorney's  office  was declining  more  and  more                                                                    
prosecutions  and letting  more and  more criminals  go free                                                                    
due to  a lack  of prosecutors. He  remarked that  for years                                                                    
the public  and others had  stressed cutting the  budget. He                                                                    
reasoned that at  some point it was not  possible to pretend                                                                    
it  was  prudent  to  continue  cutting  the  public  safety                                                                    
budget. He stated  that when the department  came forward in                                                                    
the  future notifying  the legislature  it  needed an  extra                                                                    
$200,000  for prosecutors,  he would  not  be supportive  of                                                                    
continuing  to cut  the budget.  He stated  the ramification                                                                    
would  be a  deficiency in  the number  of prosecutors.  The                                                                    
bill  would improve  the ability  to arrest  people for  the                                                                    
drug,  but it  would mean  other prosecutions  would not  go                                                                    
forward.  He  did  not  believe   it  was  possible  to  cut                                                                    
everything  and make  the problems  disappear.  He would  be                                                                    
receptive if  the department asked for  more prosecutors the                                                                    
following year.                                                                                                                 
                                                                                                                                
Representative   Pruitt  believed   it   was  important   to                                                                    
recognize   the   bill   did   not  create   a   whole   new                                                                    
classification  of  drugs.  He   surmised  the  state  would                                                                    
probably have  dealt with individuals  in some  capacity for                                                                    
possession of  the drug  under discussion  or for  a similar                                                                    
drug. He  did not  want to say  it would be  a wash,  but he                                                                    
thought the  issue under discussion was  probably not really                                                                    
a  relevant  point.  He  continued the  person  may  end  up                                                                    
costing the  state money in  the first  place in one  way or                                                                    
another. When  a person had  reached the point of  doing the                                                                    
drug under  the bill they  had done other drugs  before. The                                                                    
substance was  nasty and the  state would deal with  them in                                                                    
some  capacity. He  believed the  committee  just needed  to                                                                    
pass the bill out of committee.                                                                                                 
                                                                                                                                
2:49:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  relayed that he  had served as a  member on                                                                    
the  statewide  opioid  taskforce  over the  past  year.  He                                                                    
shared that  the problem was  significant. The  question was                                                                    
whether not putting  a drug on the schedule  meant the state                                                                    
was allowing  its distribution and increasing  the number of                                                                    
individuals  who became  addicted.  He  elaborated that  the                                                                    
number of individuals addicted to  opioids would increase if                                                                    
the state allowed addictive substances  to carry no criminal                                                                    
offense. He believed they should  consider the bill may save                                                                    
some  addictions  from  taking  place  in  the  first  place                                                                    
because  the drugs  would  not be  legal.  It was  currently                                                                    
legal to distribute the drug.                                                                                                   
                                                                                                                                
Representative Pruitt  MOVED to  REPORT CSHB 24(FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Representative   Wilson  OBJECTED.   She  stated   the  drug                                                                    
[U47700]  was one  of the  few drugs  that fell  in its  own                                                                    
category. She agreed the drug  was bad and should not exist.                                                                    
However,   she  emphasized   the  importance   of  receiving                                                                    
"honest" fiscal notes. She acknowledged  that the drug under                                                                    
consideration  may not  change  costs,  but she  underscored                                                                    
that the  committee is the  finance committee and  it needed                                                                    
to  know whether  a department  would need  to come  back to                                                                    
request  funds in  the future.  She spoke  to the  committee                                                                    
discussion about  adding additional  drugs to  the schedule.                                                                    
She explained that codeine had  been readily available until                                                                    
people started misusing it. She  shared that in the past one                                                                    
of her children  had been afflicted with  asthma and codeine                                                                    
had been the only thing  that worked. She explained that the                                                                    
drug  had eventually  been unavailable  because some  people                                                                    
were  not  using  the  product for  its  intended  use.  She                                                                    
underscored that  it was unrealistic to  think putting drugs                                                                    
on a list would prevent people  from using drugs in a manner                                                                    
they should not.  There were certain drugs  like U47700 that                                                                    
were "no  brainers," but  she believed  it was  necessary to                                                                    
recognize  that it  was  not possible  to  stop people  from                                                                    
misusing  every substance.  She wanted  to send  the message                                                                    
that  in order  to  take  a close  look  at  the budget  the                                                                    
committee  wanted to  receive  realistic  fiscal notes.  She                                                                    
WITHDREW her OBJECTION.                                                                                                         
                                                                                                                                
Co-Chair  Seaton made  a clarifying  remark  related to  the                                                                    
motion to move the bill.                                                                                                        
                                                                                                                                
There being NO further  OBJECTION, CSHB 24(FIN) was REPORTED                                                                    
out of committee as amended  with a "do pass" recommendation                                                                    
and with  five previously  published zero fiscal  notes: FN1                                                                    
(COR), FN2 (DHS), FN3 (LAW), FN4 (DPS), FN5 (DPS).                                                                              
                                                                                                                                
2:54:04 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:56:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB024 Supporting Document-Support Letters CSAC 2.2.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-Support Letters ABADA 2.2.17.PDF HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-Support Letter AKDOL 2.1.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-Support Letter AK HSS 2.2.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-News Release DEA.Gov 2.2.17.PDF HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-Article WSJ 2.2.17.PDF HFIN 2/22/2017 1:30:00 PM
HB 24
HB 24 Sponsor Statement 2.2.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-Article CBS News 2.2.17.PDF HFIN 2/22/2017 1:30:00 PM
HB 24
HB024 Supporting Document-Article Drugs.com 2.2.17.PDF HFIN 2/22/2017 1:30:00 PM
HB 24
HB048 Sponsor Statement 02.15.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 48
HB048 Supporting Documents - letters of support 02.15.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 48
HB048 Supporting Document - Sunset Audit 02.15.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 48
HB048 Sponsor Statement 02.15.17.pdf HFIN 2/22/2017 1:30:00 PM
HB 48