Legislature(2015 - 2016)GRUENBERG 120

04/13/2016 08:30 AM House CONFERENCE COMMITTEE ON HB75


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08:37:32 AM Start
08:38:11 AM HB75
09:07:14 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ HB 75 MARIJUANA REG;CLUBS;MUNIS;LOCAL OPT ELECT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
           HB 75-MARIJUANA ESTAB. REG; LOCAL ELECTION                                                                       
                                                                                                                                
8:38:11 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON  announced that  the Conference  Committee on  HB 75                                                               
was  operating  under  Uniform  Rule  42.   She  said  no  public                                                               
testimony  would be  taken.    She reviewed  that  adoption of  a                                                               
conference committee  report requires an affirmative  vote by the                                                               
majority of the membership from each  house.  She stated that the                                                               
two versions  before the committee  were:  CSHB 75(JUD)am  and 2d                                                               
SCS CSHB 75(RLS).                                                                                                               
                                                                                                                                
8:38:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT  moved  to  adopt  CSHB  75(JUD)am  as  a                                                               
working document.                                                                                                               
                                                                                                                                
8:39:02 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:39 a.m.                                                                                 
                                                                                                                                
8:39:36 AM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Millet, Drummond,                                                               
and Tilton voted in favor of  the motion to adopt CSHB 75(JUD)am.                                                               
Senators McGuire,  Hoffman, and  Bishop voted against  the motion                                                               
to adopt CSHB 75(JUD)am.  Therefore,  the motion failed by a vote                                                               
of 3:0 (House) and 0:3 (Senate).                                                                                                
                                                                                                                                
8:40:22 AM                                                                                                                    
                                                                                                                                
SENATOR BISHOP  moved to adopt 2d  SCS CSHB 75(RLS) as  a working                                                               
document.                                                                                                                       
                                                                                                                                
8:40:52 AM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives  Millet, Drummond,                                                               
and  Tilton  voted  against  the  motion to  adopt  2d  SCS  CSHB
75(RLS).   Senators McGuire, Hoffman,  and Bishop voted  in favor                                                               
of  the motion  to adopt  2d SCS  CSHB 75(RLS).   Therefore,  the                                                               
motion failed by a vote of 0:3 (House) and 3:0 (Senate).                                                                        
                                                                                                                                
8:41:37 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:42 a.m.                                                                                 
                                                                                                                                
8:43:03 AM                                                                                                                    
                                                                                                                                
CHAIR TILTON  announced that  the Conference  Committee on  HB 75                                                               
had  failed to  [adopt]  either  CSHB 75(JUD)am  or  2d SCS  CSHB
75(RLS).                                                                                                                        
                                                                                                                                
8:43:25 AM                                                                                                                    
                                                                                                                                
SENATOR  McGUIRE  reviewed   the  conference  committee  process,                                                               
including  the next  possible  steps of  limited  powers of  free                                                               
conference and  free conference.   She offered  her understanding                                                               
that  the  current  focus  was centered  on  opt-in  and  opt-out                                                               
provisions for unorganized  boroughs in Alaska.  She  said in the                                                               
original version  of the  bill there  was no  delineation between                                                               
unorganized and organized boroughs.   In order for a community to                                                               
issue marijuana  licenses, it  would have to  meet on  the issue,                                                               
get public feedback, and then  go through the process as outlined                                                               
in the  initiative, as  well as follow  the regulations  put into                                                               
effect  by   the  Marijuana  Control   Board.    She   said  some                                                               
communities had opted out while others had opted in.                                                                            
                                                                                                                                
SENATOR MCGUIRE noted that Senator  Hoffman had proposed that the                                                               
legislature  act as  an assembly  as  a whole,  which is  allowed                                                               
under  the  Constitution  of  the  State  of  Alaska  and  Alaska                                                               
Statute.    She offered her understanding that  some people think                                                               
"either way"  there would  be local  dialogue at  the unorganized                                                               
borough level such  that "if you wanted to  issue licenses, you'd                                                               
have to go to the elders,  you'd have to have those conversations                                                               
anyway."  She said she leaned  that direction.  She remarked that                                                               
Senator Hoffman had made points  on the record that had compelled                                                               
members of  the Senate in an  18:2 vote to support  having elders                                                               
of the communities  lead the discussion to  determine whether the                                                               
communities  want to  opt in.   She  said she  tends to  defer to                                                               
people  in their  individual communities  to determine  what they                                                               
want.  She observed that "in  this case" the House and Senate may                                                               
be  divided, and  she  said she  would like  to  hear from  House                                                               
members on the issue.                                                                                                           
                                                                                                                                
8:46:50 AM                                                                                                                    
                                                                                                                                
SENATOR McGUIRE stated  that if the House and  Senate [members of                                                               
the Conference Committee on HB  75] could concur, then she thinks                                                               
they should "zealously  advocate to our colleagues  to adopt that                                                               
version."  However,  if the committee members  cannot agree, then                                                               
she  would like  to  go to  free  powers, so  that  she could  be                                                               
allowed to put together a  more narrow requirement, acting as the                                                               
assembly as  a whole, to  require the unorganized boroughs  to go                                                               
through  additional steps  to the  point  that [Senator  Hoffman]                                                               
would  be comfortable.   She  said  there are  provisions in  the                                                               
proposed  legislation  that  are  very important,  but  the  most                                                               
important, she opined, are the  background checks.  She indicated                                                               
her  involvement  with legislation  that  "set  up the  licensing                                                               
structure  via the  [Marijuana Control]  Board,  but she  related                                                               
that  unfortunately "we  put it  alongside  the Alcohol  Beverage                                                               
Control  Board."   She said  it was  her understanding  that "the                                                               
licenses  would be  issued the  same way  that you  issue alcohol                                                               
licenses."    She  said  [marijuana   licenses]  are  subject  to                                                               
background  checks,  because  legislation prohibits  felons  from                                                               
holding marijuana licenses, the same  as they are prohibited from                                                               
having alcohol licenses.                                                                                                        
                                                                                                                                
SENATOR McGUIRE said  legal opinions are in  the works currently.                                                               
One theory is  that the legislature would need  to create statute                                                               
so  that  the  Department  of   Commerce,  Community  &  Economic                                                               
Development  (DCCED) could  authorize  the  Department of  Public                                                               
Safety (DPS)  to conduct  background checks.   She said  that was                                                               
the reason  for the  change made  to HB  75 by  the Senate.   She                                                               
noted  there is  another  [legal] opinion  that  says that  legal                                                               
authority is assumed  and implied.  She said in  her community in                                                               
Anchorage,  which  is  approximately 300,000,  all  the  business                                                               
owners  that   have  applied  for  a   [marijuana]  license  find                                                               
themselves in a holding pattern,  waiting on legislation, because                                                               
the board has  decided that it does not  feel comfortable relying                                                               
on the legal  opinion.  She asked committee members  not to allow                                                               
that provision, and  some others in HB 75 that  are important, to                                                               
fail,   but  to   "try  to   negotiate  on   this  opt-in/opt-out                                                               
provision."                                                                                                                     
                                                                                                                                
8:49:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT  noted two "sticking points":   the [limit                                                               
on]  the  number of  [marijuana]  plants  and the  opt-in/opt-out                                                               
issue.  She said  she wants to see the issue  resolved.  She said                                                               
she thought  there would be portions  of the bill that  the House                                                               
and Senate members  could agree upon, and she  expressed her hope                                                               
that the Senate would consider  removing the local control option                                                               
so  that the  bill would  not  die.   She said,  "Absent of  that                                                               
provision, it  goes back to what  exists now, that we  are silent                                                               
on that issue."   She remarked upon the time  and effort put into                                                               
the bill  on the House side,  and said while she  appreciates the                                                               
local option,  she does not  want to see  "good work go  to waste                                                               
because we can't agree on that."                                                                                                
                                                                                                                                
8:51:21 AM                                                                                                                    
                                                                                                                                
SENATOR HOFFMAN  said he, too,  is not interested in  having this                                                               
become "another  hairy crab."  He  noted that he had  spoken with                                                               
the two  Representatives from  his district,  as well  as several                                                               
people in  rural Alaska,  and he  offered his  understanding that                                                               
they  think "the  provision that  is in  there does  not restrict                                                               
those  communities  from  having  marijuana."    He  opined  that                                                               
marijuana law  will be the  law of the  land and people  in rural                                                               
Alaska know and accept that.   He indicated that an assembly from                                                               
an unorganized borough has opted  out, and communities may choose                                                               
to have  the dialogue with their  elders at the table  whether or                                                               
not to  "participate in that  activity."   He said that  "did not                                                               
happen with alcohol," which resulted  in turmoil and suffering in                                                               
communities.   He  stated  that  if the  issue  of  opting in  to                                                               
alcohol had been  provided, rural Alaska would  have forgone many                                                               
problems.   He said,  "We don't  expect urban  Alaska to  go down                                                               
that path; we  understand that they're never going to  have a dry                                                               
community on [the  issue of] alcohol; but they're  not living the                                                               
rural life; and rural Alaskans  have opted out quite consistently                                                               
on  alcohol  because of  the  problems  that  it provides  -  and                                                               
rightfully so."                                                                                                                 
                                                                                                                                
SENATOR  HOFFMAN emphasized  that he  does not  want to  see that                                                               
same problem exist  with marijuana.  He  indicated the discussion                                                               
could take  place about the  pros and cons  of the issue,  and he                                                               
stated his belief  that [rural communities] would  be years ahead                                                               
on addressing  alcohol and  alcohol abuse  in Interior  Alaska if                                                               
that [discussion had  taken place}.  He stated,  "I don't believe                                                               
this provision  is asking very much  of the House."   He restated                                                               
that this is  a rural issue.   He said people have  suffered as a                                                               
result of alcohol  use and, although he would  not say [marijuana                                                               
use]  would have  the same  result, he  questioned forcing  rural                                                               
Alaska into something.   He related that  the two Representatives                                                               
from  his   district  had  initially   agreed  with   "the  House                                                               
position,"  but have  reversed  their position.    He stated  his                                                               
belief that  rural Alaska  is unique in  terms of  alcohol abuse,                                                               
and he  indicated that drugs  are not part  of that society.   He                                                               
concluded, "I  don't believe  it's a  big ask to  allow us  to do                                                               
what we want to do and  don't make the same mistakes, saying, 'We                                                               
know what's best for rural Alaska.'   Let's give them the benefit                                                               
of  the doubt  and say  that  maybe they  should be  the ones  to                                                               
decide."                                                                                                                        
                                                                                                                                
8:55:43 AM                                                                                                                    
                                                                                                                                
CHAIR  TILTON explained  that in  crafting the  version of  HB 75                                                               
that had passed  out of the House Community  and Regional Affairs                                                               
Standing  Committee, meetings  had been  held throughout  Alaska,                                                               
with input obtained from the mayors  of communities.  She said HB
75 started  out as a "fix-it  bill" to address a  new initiative.                                                               
Many communities were  "flailing around" in an  attempt to decide                                                               
whether  to  opt in  or  opt  out.   She  said  a lot  of  public                                                               
testimony was heard, and alongside  the Marijuana Policy Project,                                                               
HB  75 was  crafted.    She offered  her  understanding that  the                                                               
communities  that participated  in  the  discussion included  the                                                               
North  Slope  Borough, the  Municipality  of  Anchorage, and  the                                                               
Matanuska-Susitna  (Mat-Su) Borough,  and  some individuals  took                                                               
part.   She acknowledged the  statement made by  Senator Hoffman,                                                               
but  explained  that the  goal  for  HB  75  was to  address  the                                                               
public's  concerns,  follow  Title  4,   and  stay  true  to  the                                                               
initiative,  which   asked  that  marijuana  be   regulated  like                                                               
alcohol.                                                                                                                        
                                                                                                                                
8:58:05 AM                                                                                                                    
                                                                                                                                
SENATOR HOFFMAN  responded that  Title 4  was flawed  because "it                                                               
still  started   out  with  those   communities  wet,"   and  the                                                               
communities then had  to "go through all that  pain and suffering                                                               
to opt out."   He opined that  Title 4 was wrong;  it should have                                                               
had the  opt-in provision; instead  it put the  rural communities                                                               
through a  process of suffering  and violence.   He said  Title 4                                                               
"was not the  complete solution to alcohol," and "as  a result of                                                               
that you  can see the  number of  villages that have  opted out."                                                               
He  said they  never would  have  had to  suffer if  Title 4  was                                                               
"flipped."   He  stated, "I  don't  want to  put the  communities                                                               
through ... the  same flaws that existed in Title  4 for alcohol,                                                               
with  marijuana."   He said  he did  not believe  that when  [the                                                               
House  Community and  Regional  Affairs  Standing Committee]  was                                                               
going through the public hearing  process the option of opting in                                                               
was  offered; that  option  and dialogue  came  after the  public                                                               
hearing  process.   He  touched  briefly on  the  idea of  asking                                                               
people if  they want to  go through  the same suffering  they did                                                               
during the  issue of Title  4 and alcohol.   He said  although he                                                               
does not believe  [alcohol and marijuana] are the  same and would                                                               
cause the same types of problems, Title 4 was devastating.                                                                      
                                                                                                                                
9:00:24 AM                                                                                                                    
                                                                                                                                
SENATOR MCGUIRE suggested it would  be helpful for the Conference                                                               
Committee on HB  75 to recess and  for its members to  see a list                                                               
of the  unorganized boroughs and  which of  them had opted  to be                                                               
dry.                                                                                                                            
                                                                                                                                
9:01:02 AM                                                                                                                    
                                                                                                                                
SENATOR HOFFMAN  said he  would like  to recess  to have  time to                                                               
come to  a consensus and move  forward.  He stated  his intention                                                               
was "to  pass the bill," but  without forcing rural Alaska  to go                                                               
through a  flawed process  again.   He clarified  that he  is not                                                               
advising  as to  what  should be  done in  urban  Alaska, but  is                                                               
concerned that mistakes are not repeated in urban Alaska.                                                                       
                                                                                                                                
9:01:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND stated  that while  she appreciates  the                                                               
emotion and concern that had  been expressed, the difference with                                                               
the  marijuana issue  is  that it  is already  legal.   She  said                                                               
Spenard,  as she  predicted it  would, already  has more  alcohol                                                               
operations  and marijuana  license  applications  than any  other                                                               
part of  the state.   She said  those licenses are  expensive and                                                               
the process  is moving forward  in Anchorage.  She  expressed her                                                               
perspective  that   in  the   unorganized  boroughs   and  remote                                                               
communities,  the process  of establishing  a marijuana  business                                                               
would be  difficult because  of distance,  transportation issues,                                                               
and testing.  She posited that  one consideration would be how to                                                               
deal  with  the   black  market  that  already   exists  in  many                                                               
communities, especially when people have  the liberty to grow and                                                               
consume their  own [marijuana]  because of  the initiative.   She                                                               
said, "Nothing  that we do  here is going  to change that."   She                                                               
advised consideration of  what it would take  for the communities                                                               
that would appear  on a list of unorganized  borough to establish                                                               
a marijuana retail business.   She expressed doubt that anyone in                                                               
a  community of  200  people would  establish  a grow  operation,                                                               
figure out how  to get the expensive testing done,  and deal with                                                               
the issue of  transportation.  She clarified that  because of the                                                               
difficulty  of establishing  a marijuana  business anywhere,  she                                                               
does  not think  opting out  will be  an issue.   She  reiterated                                                               
concern about dealing with the  black market until the legitimate                                                               
businesses get established.   She said, "As we  approach the two-                                                               
year mark from  the initiative, I would have  some concerns about                                                               
getting  in  the  way  of  business ...."    She  reiterated  her                                                               
prediction that  there would  not be  many businesses  seeking to                                                               
establish themselves  in rural communities.   She  concluded that                                                               
"of  course, they  have every  right to  have a  discussion about                                                               
that,"  but maintained  that the  issue of  personal use  must be                                                               
addressed.                                                                                                                      
                                                                                                                                
9:05:38 AM                                                                                                                    
                                                                                                                                
SENATOR HOFFMAN  responded that those  are the exact  issues that                                                               
need dialog at the local level,  and that is all "we" are asking.                                                               
He said  Representative Drummond raised important  social issues,                                                               
but elders  should be  allowed to  participate in  the discussion                                                               
instead of having  to "go through the whole process  and then opt                                                               
out."   He questioned  why there  cannot be  acknowledgement that                                                               
Title  4 was  a  "huge  mistake" in  dealing  with  the issue  of                                                               
alcohol and  a willingness  to give  [the rural  communities] the                                                               
benefit of the doubt.                                                                                                           
                                                                                                                                
9:06:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND   stated  that  in   urban  communities,                                                               
community councils are  being pulled into the  process by dealing                                                               
with  the  applications  first before  the  city  actually  does;                                                               
therefore,   "these   conversations   are  happening   in   urban                                                               
communities, as well."                                                                                                          
                                                                                                                                
SENATOR HOFFMAN replied, "Glad to hear that."                                                                                   
                                                                                                                                
[HB 75 was held over.]                                                                                                          

Document Name Date/Time Subjects
CCSHB 75 Version WW.pdf JHB75 4/13/2016 8:30:00 AM
HB 75
HB 75 Comparison Narrative, CC.pdf JHB75 4/13/2016 8:30:00 AM
HB 75
HB 75 CC Comparison - MASTER.pdf JHB75 4/13/2016 8:30:00 AM
HB 75