Legislature(2015 - 2016)CAPITOL 120

03/11/2015 01:00 PM House JUDICIARY

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01:06:19 PM Start
01:06:41 PM Confirmation Hearing(s): Alaska Commission on Judicial Conduct
01:15:24 PM HB75
02:41:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 75 MUNI REGULATION OF MARIJUANA; ADV. BOARDS TELECONFERENCED
Heard & Held
+ Confirmation Hearing: TELECONFERENCED
Commission on Judicial Conduct
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB  75-MUNI REGULATION OF MARIJUANA; ADV. BOARDS                                                                    
                                                                                                                                
1:15:24 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX announced  that the last order of  business would be                                                               
HOUSE  BILL  NO.  75,  "An  Act relating  to  the  regulation  of                                                               
marijuana  by  municipalities;  and providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
1:15:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CATHY  TILTON, Alaska  State Legislature,  said HB
75  is  essentially  a collaborative  effort  between  the  House                                                               
Community  and   Regional  Affairs  Standing   Committee,  Alaska                                                               
Municipal  Leagues,   Alaska  Municipal   Attorneys  Association,                                                               
community  governing stakeholders,  and community  members.   She                                                               
noted that when the marijuana  initiative was passed, communities                                                               
looked to  the legislature for guidance  in whether to opt  in or                                                               
opt  out.     During  the  hearings,  rather   than  telling  the                                                               
communities what  to do,  she listened  to what  communities need                                                               
from the legislature.                                                                                                           
                                                                                                                                
1:17:02 PM                                                                                                                    
                                                                                                                                
HEATH HILYARD,  Staff, Representative Cathy Tilton,  Alaska State                                                               
Legislature, referred  to the "S"  version and stated  it follows                                                               
the  identical definition  provided in  the initiative  language,                                                               
with the  exception of the removal  of the reference "salt."   To                                                               
the extent possible, the drafter  aligned definitions in specific                                                               
provisions   that  also   exist   in   other  marijuana   related                                                               
legislation.    He  pointed  out   that  Sec.  1  pertains  to  a                                                               
definition in  Title 11 of the  Alaska Criminal Statute.   In the                                                               
course of  drafting, they  created a structure  whereby if  HB 75                                                               
was the only  related piece of marijuana  legislation that passed                                                               
this  year   the  appropriate   statutory  references   would  be                                                               
provided.   He related  that other  pieces completely  remove the                                                               
definition under  Title 11  of the Alaska  Criminal Statute.   He                                                               
further related  that the  functional effect is  the same  as the                                                               
goal  is to  provide a  standard definition  through statute  for                                                               
marijuana.                                                                                                                      
                                                                                                                                
1:19:56 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX  questioned that  other  than  taking the  language                                                               
"salt" out, was anything done with the comma.                                                                                   
                                                                                                                                
1:20:07 PM                                                                                                                    
                                                                                                                                
MR.  HILYARD  responded that  his  research  did not  direct  the                                                               
drafters to  do or not do  anything with the comma.   He referred                                                               
to Sec. 2 [AS 17.38.020(2)], page 2, lines 16-18, which read:                                                                   
                                                                                                                                
     (2)  ...  were grown,  except  that  not more  than  12                                                                
     marijuana  plants,  with  six or  fewer  being  mature,                                                                
     flowering plants, may be present  in a single residence                                                                
     where  two or  more persons  21 years  of age  or older                                                                
     reside;                                                                                                                
                                                                                                                                
MR.  HILYARD continued  that municipalities  provided a  specific                                                               
number of plant limits per household.   He advised that this bill                                                               
is largely a  work product of municipal attorneys  and they asked                                                               
that the  legislature provide a  bright line regarding  the total                                                               
limit  on  a household.    In  attempting  to make  a  legitimate                                                               
justification for 12  plants, they reviewed federal  laws as they                                                               
pertain to alcohol and particularly the home brewing of alcohol.                                                                
                                                                                                                                
1:22:39 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX interjected  that because she has  concerns that the                                                               
[number of  plants for personal  use] might contravene  the terms                                                               
of  the  initiative, she  asked  Legislative  Legal and  Research                                                               
Services for  an opinion,  which the committee  has not  yet been                                                               
provided.                                                                                                                       
                                                                                                                                
She  advised   that  her  question   was  whether  or   not  this                                                               
contravenes  the  initiative,  and  whether  it  contravenes  the                                                               
initiative  in  such  a  manner   that  would  be  inappropriate,                                                               
unconstitutional,  or  illegal,  under  Alaska  law  relating  to                                                               
initiatives.                                                                                                                    
                                                                                                                                
1:23:21 PM                                                                                                                    
                                                                                                                                
MR. HILYARD noted that there  were several municipal attorneys on                                                               
line to testify,  and some specifically like 12 as  a number, and                                                               
some simply say  they do not care  what the number is  so long as                                                               
there is  a definitive  number per household.   He  described the                                                               
legislation as  a work product  designed to be responsive  to the                                                               
needs of municipal communities.                                                                                                 
                                                                                                                                
The House  Community and Regional  Affairs Standing  Committee is                                                               
the  sponsor of  this bill  and, he  related, that  the committee                                                               
would  be  satisfied with  whatever  number  the House  Judiciary                                                               
Standing Committee offers.                                                                                                      
                                                                                                                                
1:24:00 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX opined  that one  of the  progeny of  the Ravin  v.                                                             
State of Alaska,  537 P.2d 494 (Alaska  1975), decision discusses                                                             
how many plants a person can possess.                                                                                           
                                                                                                                                
MR.  HILYARD advised  that  Ravin pertains  only  to the  privacy                                                             
issue and  under Noy v. State  of Alaska, No. A-8327,  August 29,                                                             
2003, the  Alaska Court  of Appeals defined  four ounces  or less                                                               
for personal  possession.  His  research did not reveal  case law                                                               
directed at 12 plants versus 24 plants.                                                                                         
                                                                                                                                
1:27:32 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX asked  Mr. Hilyard  the definition  of a  marijuana                                                               
club.                                                                                                                           
                                                                                                                                
MR.  HILYARD pointed  to [Sec.  21. AS  17.38.900(16)], page  11,                                                               
lines 3-5, and  said that the definition of a  marijuana reads as                                                               
follows:                                                                                                                        
                                                                                                                                
      (16) "marijuana club" means an entity registered to                                                                       
      allow consumption of marijuana by paying members of                                                                       
     the club on the registered premises and whose members                                                                      
     are 21 years of age or older;                                                                                              
                                                                                                                                
MR.  HILYARD advised  there has  been discussion  about providing                                                               
additional sideboards in  which the input of  the House Judiciary                                                               
Standing Committee would be very  valuable.  He offered that this                                                               
is an initial  first blush based on the discussions  of the House                                                               
Community and Regional Affairs Standing Committee.                                                                              
                                                                                                                                
1:28:18 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX  questioned whether  a  marijuana  club could  have                                                               
employees.                                                                                                                      
                                                                                                                                
MR.  HILYARD  responded there  has  been  discussion relating  to                                                               
bottle clubs versus private club  as it pertains to provisions in                                                               
Title 4, but the committee did not weigh in on that issue.                                                                      
                                                                                                                                
CHAIR LEDOUX stated that many  municipalities ban the consumption                                                               
of  the  smoking  of  cigarettes  and  that  there  is  currently                                                               
legislation  concerning  a  statewide  ban.    She  wondered  how                                                               
marijuana legislation will gel with anti-smoking legislation.                                                                   
                                                                                                                                
MR. HILYARD stated that as  this legislation was being drafted it                                                               
did not  have the luxury  of the  presumption of other  pieces of                                                               
legislation  passing.    He  noted  there  would  have  to  be  a                                                               
reviser's bill to address any  potential differences between what                                                               
passes.   He  pointed out  that Sec.  8, addresses  an unintended                                                               
omission in  the initiative regarding the  local option provision                                                               
as  AS 17.38  made no  provision for  local option  elections for                                                               
established  villages.   In going  through the  drafting process,                                                               
they  put  in  sideboards  regarding  the  process  in  which  an                                                               
established village  can hold  a local  option election,  and how                                                               
the perimeters of an established village are determined.                                                                        
                                                                                                                                
1:30:34 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX  asked if this would  basically work as it  does for                                                               
the local option with respect to alcohol.                                                                                       
                                                                                                                                
MR.  HILYARD answered  in the  affirmative, and  stated with  the                                                               
exception   that   Ravin   provides   protection   for   personal                                                             
consumption of marijuana  and not for alcohol.   The local option                                                               
election in this  circumstance would pertain only  to the banning                                                               
of commercial [marijuana] activities  within the perimeters of an                                                               
established village.                                                                                                            
                                                                                                                                
1:31:02 PM                                                                                                                    
                                                                                                                                
MR. HILYARD referred  to Sec. 9, [AS 17.38.110(b),  page 5, lines                                                               
26-31  and Page  6, lines  1-2, and  stated that  at the  express                                                               
request  of  municipalities,  the House  Community  and  Regional                                                               
Affairs  Standing Committee  allowed municipalities  to establish                                                               
civil  and  criminal  penalties   for  time,  place,  and  manner                                                               
violations by  commercial marijuana  establishments.   He pointed                                                               
out  it  was  not  originally included  in  the  initiative,  and                                                               
Legislative  Legal  and  Research  Services advised  it  was  not                                                               
specifically prohibited  in the  initiative language.   He opined                                                               
that Title  29 provisions  would allow  the municipalities  to do                                                               
that even  though it was  not expressly defined.   The committee,                                                               
at the express request of  the municipalities, provided that they                                                               
have criminal  authority for time, place,  and manner, violations                                                               
for  commercial establishments.    He referred  to  Sec. 16,  [AS                                                               
17.38.110], page  7, lines [15]-22,  which stipulate that  any of                                                               
the  powers  authorized to  the  boroughs  is on  a  non-areawide                                                               
basis.   Essentially,  he noted,  in  the case  of the  Fairbanks                                                               
North  Star  Borough,  the  borough  may  adopt  prohibitions  or                                                               
regulations within the borough boundaries.   Due to the fact they                                                               
are non-areawide,  any prohibition  or ordinance on  the borough-                                                               
wide level would  not apply to cities within its  boundaries.  He                                                               
said  that  was  at  the  request of  cities  like  the  City  of                                                               
Fairbanks  and the  City of  Wasilla that  are first-case  cities                                                               
within second class boroughs.                                                                                                   
                                                                                                                                
1:32:37 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX  surmised that  the boroughs, many  of which  do not                                                               
have  area-wide  powers,   cannot  currently  adopt  anti-smoking                                                               
regulations.  She questioned whether  they would be able to under                                                               
this   legislation   adopt    regulations   vis-à-vis   marijuana                                                               
establishments.                                                                                                                 
                                                                                                                                
MR. HILYARD used the example  of the Fairbanks North Star Borough                                                               
and remarked  that it could  adopt borough  ordinances pertaining                                                               
to borough land  outside of the boundaries of  first class cities                                                               
like North  Pole and Fairbanks,  which lay within  the boundaries                                                               
of the Fairbanks North Star Borough.                                                                                            
                                                                                                                                
CHAIR LEDOUX questioned  that even if one of their  powers is not                                                               
health  or public  safety,  as  many boroughs  do  not have  that                                                               
power.                                                                                                                          
                                                                                                                                
MR.  HILYARD opined  that  they still  have  zoning and  planning                                                               
authority and that  could fall under that circumstance.   He said                                                               
the  intent  of  the  policy  call of  the  House  Community  and                                                               
Regional Affairs  Standing Committee, with regard  to stipulating                                                               
non-areawide,  is  that a  borough  could  not supersede  a  city                                                               
within its boundaries.                                                                                                          
                                                                                                                                
1:33:49 PM                                                                                                                    
                                                                                                                                
MR. HILYARD  pointed to Sec.  17, [AS 17.38.200 -  AS 17.38.260],                                                               
page 7, lines  26-31 through page 10, lines 1-[11]  and stated it                                                               
sets forth  the proper  process by  which an  established village                                                               
can  have  a  local  option election  to  prohibit  a  commercial                                                               
marijuana  operation within  its boundaries.   He  advised it  is                                                               
virtually  identical language  to  Title 4,  for  the purpose  of                                                               
commercial  marijuana establishments.   Sec.  19, [17.38.900(9)],                                                               
page 10, lines [16-19], adds  to the definition of marijuana club                                                               
to  marijuana   establishment,  he  explained.     Sec.  20,  [AS                                                               
17.38.900(6)], page 10, lines [20-28],  revises the definition of                                                               
marijuana to  be consistent with Sec.  1, of the bill.   He noted                                                               
that  essentially  the practical  effect  is  that the  committee                                                               
prefers  a singular  definition of  marijuana throughout  statute                                                               
for   municipalities  to   adopt  ordinances.     Sec.   21,  [AS                                                               
17.38.900], page 10, lines [29-31]  through page 11, lines [1-12]                                                               
offers  the  express  definition   for  an  established  village,                                                               
marijuana club,  public place, and  residence.  The  public place                                                               
definition  follows AS  11.81.900, he  noted.   "Sec. 22  removes                                                               
local government from  the definition section found  in AS 17.38.                                                               
... let  me just refresh myself  why that was the  case ... there                                                               
was ... that's kind of  a conforming amendment and quite honestly                                                               
I don't  remember exactly  why local  government was  removed but                                                               
there  was  a  drafting  reason."    Sec.  23  provides  for  the                                                               
effective date of the bill, he explained.                                                                                       
                                                                                                                                
1:35:49 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX  asked  that  if public  place  doesn't  include  a                                                               
marijuana club then under what  opuses would the local government                                                               
ban the marijuana club.                                                                                                         
                                                                                                                                
MR.  HILYARD  explained   that  it  would  be   determined  as  a                                                               
commercial marijuana establishment.   The initiative provides for                                                               
various   types  of   commercial  establishments   regarding  the                                                               
cultivator,  transporter,  wholesaler,   or  retailer,  and  this                                                               
provision  adds   marijuana  club  to  the   list  of  commercial                                                               
establishments.                                                                                                                 
                                                                                                                                
CHAIR LEDOUX offered  a scenario of a person  forming a marijuana                                                               
club like a book club, or  a non-profit, and asked how that would                                                               
work.                                                                                                                           
                                                                                                                                
MR. HILYARD answered  that he did not have a  response as perhaps                                                               
the  House  Community  and Regional  Affairs  Standing  Committee                                                               
definition of marijuana  club is not as  sufficient as necessary.                                                               
He  reiterated  it was  a  first  blush  based on  requests  from                                                               
municipalities  to   offer  them  a  definition   so  they  could                                                               
determine,  by  local  ordinance,  whether they  would  allow  or                                                               
disallow marijuana clubs within their boundaries.                                                                               
                                                                                                                                
1:37:07 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX referred to [Sec. 1,  AS 11.71.900] page 2, lines 2-                                                               
4, which read:                                                                                                                  
                                                                                                                                
     (14)  ...  , or  the  weight  of any  other  ingredient                                                                
     combined  with marijuana  to  prepare  topical or  oral                                                                
     administrations, food, drink, or other products;                                                                       
                                                                                                                                
                                                                                                                                
CHAIR LEDOUX  asked whether that  language differed  from current                                                               
law.                                                                                                                            
                                                                                                                                
MR. HILYARD opined that as it  is referring to AS 11.[71.900], of                                                               
the  Alaska  Criminal Statute,  and  the  language needed  to  be                                                               
included  to conform  to the  initiative language.   He  said the                                                               
definition must be  reviewed in the event  a substantive criminal                                                               
regulatory bill package is not adopted by this legislature.                                                                     
                                                                                                                                
1:38:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER referred  to Sec.  14, [AS  17.38.110(i)],                                                               
page 7, lines 5-9, which read:                                                                                                  
                                                                                                                                
     (i)  A registration  issued  by  a municipality  [LOCAL                                                                
     GOVERNMENT] in accordance with  (f)[OF THIS SECTION] or                                                                    
     (g)  of this  section  shall have  the  same force  and                                                                    
     effect  as  a  registration  issued  by  the  board  in                                                                    
     accordance  with  AS  17.38.100.   The  holder  of  the                                                                
     [SHALL]  registration is  [SHALL] not  [BE] subject  to                                                                
     regulation or enforcement by the  board during the term                                                                    
     of that registration.                                                                                                      
                                                                                                                                
REPRESENTATIVE  KELLER  and  asked  Mr. Hilyard  to  explain  the                                                               
language.                                                                                                                       
                                                                                                                                
MR.  HILYARD  answered  that the  House  Community  and  Regional                                                               
Affairs  Standing  Committee  amended existing  statute  for  the                                                               
initiative   language   which   changed   local   government   to                                                               
municipality.   He said he could  not speak to language  from the                                                               
initiative.                                                                                                                     
                                                                                                                                
REPRESENTATIVE KELLER asked for  verification that the initiative                                                               
made the deletions on line 8.                                                                                                   
                                                                                                                                
MR.  HILYARD said  that Sec.  14 includes  the deletion  of local                                                               
government  with   the  inclusion   of  municipality,   which  is                                                               
clarifying  and  using  the  standard.    In  going  forward,  he                                                               
offered, when looking  at the holder of the  registration "is not                                                               
subject" is a  grammatical change based on  Legislative Legal and                                                               
Research Services.   He posited there was no  policy direction by                                                               
the committee or  any members of the  municipal attorneys working                                                               
with them as it was drafting language.                                                                                          
                                                                                                                                
1:40:21 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX opined that the way  the initiative works is that if                                                               
the board does  not act on an application  for registration, then                                                               
the  municipality can  act.   She said  the language  is changing                                                               
from local government action to municipality action.                                                                            
                                                                                                                                
MR. HILYARD said  the initiative language would  read "The holder                                                               
of  such  registration shall  not  be  subject to  regulation  or                                                               
enforcement by the  board during the term  of that registration."                                                               
He  related  that the  new  revision  reads  "The holder  of  the                                                               
registration is  not subject  to a  regulation or  enforcement by                                                               
the board  during the term  of that registration."   He suggested                                                               
asking  the   drafter,  Hilary  Martin,   but  remarked   it  was                                                               
essentially  a grammatical  issue  by the  Legislative Legal  and                                                               
Research Service.   He reiterated  there was no  policy direction                                                               
by the  House Community and  Regional Affairs  Standing Committee                                                               
or any requests from municipalities for the language change.                                                                    
                                                                                                                                
1:41:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER pointed to [Sec.  2, AS 17.38.020], page 2,                                                               
lines  6-7,  and referred  to  the  wording "NOTWITHSTANDING  any                                                               
other provision of law ..." and said it was taken out of HB 79.                                                                 
                                                                                                                                
CHAIR  LEDOUX  offered that  one  of  the  work drafts  took  the                                                               
language out, but it is still being considered.                                                                                 
                                                                                                                                
1:41:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER asked  for  clarification of  [Sec. 5,  AS                                                               
17.38.100(c)] page 3, lines 13-14, which read:                                                                                  
                                                                                                                                
     (c) Within  10 days  after receipt of  [UPON RECEIVING]                                                                
     an application  or renewal application for  a marijuana                                                                    
     establishment, the board  shall notify the municipality                                                                
     of  the   board's  receipt   of  the   application  and                                                                
     [IMMEDIATELY] forward  a copy  of each  application and                                                                    
     half of  the registration application fee  to the local                                                                    
     regulatory  authority   for  the   municipality  [LOCAL                                                                
     GOVERNMENT] in  which the applicant desires  to operate                                                                    
     the  marijuana establishment,  unless the  municipality                                                                
     [LOCAL   GOVERNMENT]  has   not   designated  a   local                                                                    
     regulatory authority  under [LOCAL GOVERNMENT]  has not                                                                
     designated   a   local   regulatory   authority   under                                                                
     [PURSUANT TO] AS 17.38.110(c).                                                                                             
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  KELLER  questioned  whether  the  language  is  a                                                               
policy decision for the House Judiciary Standing Committee.                                                                     
                                                                                                                                
MR.  HILYARD opined  that there  has  been debate  as to  revenue                                                               
sharing  for the  license registration  fees and  based upon  his                                                               
conversations  with  municipal  attorneys,  municipalities  would                                                               
like the  50-50 split.  He  advised there are people  on line who                                                               
could speak to that issue.                                                                                                      
                                                                                                                                
1:43:00 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX  pointed   to  a  legal  opinion   in  each  packet                                                               
suggesting it is not legally appropriate.                                                                                       
                                                                                                                                
MR. HILYARD remarked that he  does not recall the above-mentioned                                                               
opinion as  this issue was  not discussed in the  House Community                                                               
and Regional Affairs Standing Committee.                                                                                        
                                                                                                                                
CHAIR  LEDOUX said  she  is  referring to  the  legal opinion  of                                                               
2/27/15,  and noted  that page  3 refers  to dedication  of funds                                                               
without appropriation.                                                                                                          
                                                                                                                                
MR. HILYARD said that he does not have an opinion.                                                                              
                                                                                                                                
CHAIR  LEDOUX commented  that the  committee  would consider  the                                                               
issue during the next hearing.                                                                                                  
                                                                                                                                
1:44:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER quiered whether  this requires the board to                                                               
notify  the municipality  when it  receives  an application,  and                                                               
asked if there is a fiscal note.                                                                                                
                                                                                                                                
MR.  HILYARD advised  there is  a singular  fiscal note  from the                                                               
Department  of  Commerce,  Community,  and  Economic  Development                                                               
(DCCED)  under  the Division  of  Alcohol,  Division of  Economic                                                               
Development,  within the  Alcoholic Beverage  Control Board  (ABC                                                               
Board)  that  is a  zero  fiscal  note.    The language  and  the                                                               
provision Representative  Keller spoke  to was  essentially taken                                                               
directly from Title  4.  He advised that the  House Community and                                                               
Regional Affairs  Standing Committee  wanted to  apply provisions                                                               
with  regard  to  notification and/or  protest  that  exists  for                                                               
alcohol licensures to municipalities to commercial marijuana.                                                                   
                                                                                                                                
CHAIR LEDOUX opened public testimony.                                                                                           
                                                                                                                                
1:46:53 PM                                                                                                                    
                                                                                                                                
SCOTT   BLOOM,  City   Attorney,   City  of   Kenai,  said   that                                                               
Representative Tilton  and Mr. Hilyard  have worked  closely with                                                               
many  local municipal  representatives  regarding their  concerns                                                               
about  implementation  of  the initiative  and  opined  that  the                                                               
current CSHB  75 fairly  represents those  efforts.   Options for                                                               
local control and  clarity in enforceable rules  will benefit the                                                               
City  of  Kenai and  other  municipalities  as  well.   The  bill                                                               
preserves local options  and provides clarity for  the public and                                                               
agency's charged with enforcement.   He said he supports a bright                                                               
line rule for  a particular number of plants per  household as it                                                               
provides  clarity  to  all  potential  interested  parties.    He                                                               
related that  he does  not advocate for  any particular  limit as                                                               
long as there  is a specific number.  He  opined that without the                                                               
amendment  in this  regard the  initiative language  would either                                                               
result in scant  enforcement or constant litigation.   He further                                                               
opined  that the  committee's support  for CSHB  75 will  help to                                                               
provide guidance  and uniformity  as municipalities  move forward                                                               
in this process.                                                                                                                
                                                                                                                                
1:48:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG requested  that  Mr.  Bloom and  others                                                               
remain available.                                                                                                               
                                                                                                                                
MR. BLOOM stated he would be available.                                                                                         
                                                                                                                                
CHAIR LEDOUX asked  why would it be difficult  for a municipality                                                               
when there  are four people  in a  household with 24  plants, why                                                               
isn't that as  bright of a line  as saying 12 or 18  plants.  She                                                               
opined that  when there  are four adults  it would  be relatively                                                               
easy to figure out how many plants they are entitled to.                                                                        
                                                                                                                                
MR. BLOOM responded  that there is difficulty  in determining how                                                               
many people actually live at  that residence and used the example                                                               
of police responding  to a domestic violence call  and the police                                                               
find 36 plants,  except the 2 people at the  residence say that 6                                                               
adults live  in the house.   He  described a person  having large                                                               
quantities  of marijuana  in a  college-like setting  where there                                                               
are numerous  adults living  together and stated  it can  lead to                                                               
other problems.                                                                                                                 
                                                                                                                                
CHAIR LEDOUX related  that is a different scenario  than a bright                                                               
line just for purposes of making things easier to figure out.                                                                   
                                                                                                                                
MR. BLOOM agreed  that it is a little different  in that when the                                                               
municipality knows  a household  can only  have 12-24  plants and                                                               
law enforcement shows  up at a residence for  whatever reason and                                                               
there are a given number of  plants within the limit, that is the                                                               
end  of  the  inquiry.    Otherwise,   he  said,  it  is  a  more                                                               
complicated  process  in  determining  who lives  there  and  who                                                               
possesses the plants.                                                                                                           
                                                                                                                                
1:50:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  if the  focus in  the discussion                                                               
was on page 2, lines 16-18.                                                                                                     
                                                                                                                                
CHAIR LEDOUX  advised that Mr.  Bloom was testifying on  the bill                                                               
before the committee.                                                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG  offered a  scenario of having  a 4-plex                                                               
and a  backyard or a  greenhouse, how would law  enforcement know                                                               
to which residence the plants belonged.                                                                                         
                                                                                                                                
MR. BLOOM said he does know  that they could, and opined that the                                                               
police department would have to investigate in that regard.                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed that the committee  received a                                                               
three page  legal memo, dated  2/27/15, from Emily  Nauman, which                                                               
discussed  equal protection  on the  first page.   He  questioned                                                               
whether Mr. Bloom had reviewed it.                                                                                              
                                                                                                                                
MR.  BLOOM  said he  does  not  know  whether  he has  read  that                                                               
particular memo,  however, he has  looked into some case  law and                                                               
analyzed under  Alaska law more as  a privacy type interest.   He                                                               
offered that  the Alaska  Supreme Court has  looked at  whether a                                                               
regulation  has  a  close  and   substantial  relationship  to  a                                                               
legitimate government interest.  He  stated that the Alaska court                                                               
previously decided that  the state has a  substantial interest in                                                               
regulating  the use  of marijuana  in driving,  use by  children,                                                               
regulating  in  public  places, and  regulating  the  buying  and                                                               
selling of  marijuana.   He opined  that when there  is a  lot of                                                               
marijuana in  one place it  triggers that interest in  the buying                                                               
and selling  of marijuana.   He further  opined that there  is an                                                               
interest  in reasonable  enforcement  of  regulations as  without                                                               
more  clarity   on  this  subject   it  will  be   difficult  for                                                               
enforcement  because  it is  too  vague  for law  enforcement  to                                                               
determine whose marijuana plants are whose.                                                                                     
                                                                                                                                
1:53:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  said that his questions  will relate to                                                               
the practical  problems of enforcing this  law and constitutional                                                               
issues.    He  posed  a  question  of  how  law  enforcement  and                                                               
prosecutors are going to do this.                                                                                               
                                                                                                                                
CHAIR  LEDOUX said  there  are three  people  listed to  testify,                                                               
Scott  Bloom,  Luke  Hopkins,  Fairbanks  Mayor,  Todd  Sherwood,                                                               
Anchorage  Municipal Attorney,  and Bruce  Schulte, available  to                                                               
answer  questions.   She noted  that  Cathy Wasserman  is in  the                                                               
audience from the Alaska Municipal League to testify.                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG  surmised that  law enforcement  was not                                                               
available to testify.                                                                                                           
                                                                                                                                
1:56:02 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX referred Representative  Gruenberg to the initiative                                                               
and pointed out that under AS 17.38.030(1)(A) which read:                                                                       
                                                                                                                                
     (A) marijuana plants shall be  cultivated in a location                                                                    
     where  the  plants  are  not  subject  to  public  view                                                                    
     without  the  use  of binoculars,  aircraft,  or  other                                                                    
     optical aides.                                                                                                             
                                                                                                                                
CHAIR  LEDOUX  said  it  may  answer  Representative  Gruenberg's                                                               
question regarding a greenhouse in the backyard.                                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG  offered  that   he  would  change  his                                                               
question to a common basement.                                                                                                  
                                                                                                                                
1:57:10 PM                                                                                                                    
                                                                                                                                
LUKE  HOPKINS, Mayor,  Fairbanks North  Star Borough,  asked that                                                               
Representative  Gruenberg restate  his question  for the  borough                                                               
attorney.                                                                                                                       
                                                                                                                                
1:57:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG questioned  how will  growing marijuana                                                               
be  legally enforced  in  a situation  where  marijuana is  being                                                               
grown  in an  area in  a multi-family  residence accessible  to a                                                               
number of people.  He offered  that it could be a greenhouse that                                                               
a person  cannot see what  is growing  inside, in a  basement, or                                                               
hallway.                                                                                                                        
                                                                                                                                
1:58:35 PM                                                                                                                    
                                                                                                                                
TODD   SHERWOOD,   Assistant    Municipal   Attorney,   Anchorage                                                               
Department of Law, responded to  Representative Gruenberg that as                                                               
an  important aside  on the  equal protection  issue, advised  he                                                               
spoke with an attorney in the  City of Denver's law department on                                                               
this issue.   He explained  that the Colorado initiative  is part                                                               
of  their constitution,  unlike  Alaska which  has the  identical                                                               
language  regarding the  six plant  limit.   He advised  that the                                                               
City  of   Denver,  prior  to   legalization  January   1,  2014,                                                               
established a  12 plant  per dwelling unit  limit.   He expressed                                                               
that Denver  has had no  equal protection challenges and  in fact                                                               
there have been no challenges of  any kind on the 12 plant limit.                                                               
In some manner  this may speak to whether it  would be a credible                                                               
challenge, he  opined.  He  noted that on  one hand, he  does not                                                               
know if Colorado has the  same privacy clause in its constitution                                                               
as  Alaska.   On  the  other  hand  the Colorado  amendment  that                                                               
legalized recreational marijuana is  part of its constitution, he                                                               
further  noted.   He offered  that the  question illustrates  the                                                               
importance  of  a  bright  line  rule in  Alaska  as  to  whether                                                               
marijuana is grown in a basement  or backyard.  The 12 plants are                                                               
in essence  owned in  common and however  many adults  are living                                                               
there are  arguably in possession  of those plants,  he remarked.                                                               
He said that within the  Anchorage Municipal Code the term single                                                               
residence is not used for  a separate residence for one household                                                               
as  it is  called  a  dwelling or  dwelling  unit,  and the  code                                                               
defines household.  He opined that  in order to address the issue                                                               
raised, municipalities  may need  to further  define what  the 12                                                               
plant limit applies  to in terms of a greenhouse.   He noted that                                                               
the definition  is fine when  it applies to inside  the building.                                                               
For Anchorage, he  said, it further underlines the  need to leave                                                               
maximum flexibility to the municipalities in moving forward.                                                                    
                                                                                                                                
2:02:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG   pointed    to   existing   law,   AS                                                               
11.81.900[(52)], which read:                                                                                                    
                                                                                                                                
     (52) "public place"  means a place to  which the public                                                                    
     or  a  substantial  group of  persons  has  access  and                                                                    
     includes highways,  transportation facilities, schools,                                                                    
     places  of amusement  or business,  parks, playgrounds,                                                                    
     prisons, and  hallways, lobbies, and other  portions of                                                                    
     apartment houses  and hotels not constituting  rooms or                                                                    
     apartments designed for actual residence;                                                                                  
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated  that  the  statute  moved  the                                                               
committee closer  to specific language  for CSHB 75.   He assumed                                                               
that  definition would  apply  to  this bill  in  Title  17.   He                                                               
mentioned that Chair LeDoux nodded in agreement.                                                                                
                                                                                                                                
2:04:05 PM                                                                                                                    
                                                                                                                                
RENE  BROKER, Borough  Attorney,  Fairbanks  North Star  Borough,                                                               
added that  the Fairbanks North  Star Borough also uses  the term                                                               
dwelling units.                                                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG noted that  dwelling units may be better                                                               
as it is not as narrow.                                                                                                         
                                                                                                                                
2:05:46 PM                                                                                                                    
                                                                                                                                
MR. HOPKINS referred to [Sec. 2,  AS 17.38.020] page 2, lines 16-                                                               
19, which read:                                                                                                                 
                                                                                                                                
     (1)  possessing,  using,   displaying,  purchasing,  or                                                                    
     transporting  marijuana  accessories  or one  ounce  or                                                                    
     less of marijuana;                                                                                                         
     (2)  possessing, growing,  processing, or  transporting                                                                    
     not [NO] more than six  marijuana plants, with three or                                                                
     fewer being mature, flowering plants, ...                                                                                  
                                                                                                                                
MR.  HOPKINS posited  that six  plants per  dwelling unit  is his                                                               
hope, and  harvesting three  adult fully  flowering plants  for a                                                               
household.  He questioned whether  more than six flowering plants                                                               
are  necessary in  a dwelling  unit  to satisfy  personal use  of                                                               
adults over 21 years of age.   He opined that adults in Fairbanks                                                               
ask him  why more than  six plants [per household]  are necessary                                                               
to  suffice  personal use.    He  opined  there  is a  slogan  to                                                               
regulate marijuana  like alcohol,  but in  his mind  marijuana is                                                               
different than alcohol  and he asked that  the committee consider                                                               
that issue.   Another point, he said, is language  that a "second                                                               
class  borough may  exercise by  ordinance on  a non-areawide  or                                                               
areawide basis the  power to regulate, prohibit,  and provide for                                                               
civil  penalties  for  a  public   ...  for  the  public  use  of                                                               
marijuana."    He  noted  that this  language  was  forwarded  to                                                               
Representative  Tilton's staff,  Heath Hilyard.   He  referred to                                                               
the above language and explained  that second class boroughs have                                                               
to adopt different  degrees of the Department of  Health & Social                                                               
Service  (DHSS) powers.    He opined  it would  be  best for  the                                                               
Fairbanks  North Star  Borough  and other  second class  boroughs                                                               
that the  law allow the ability  to adopt civil fines  for public                                                               
use of marijuana by  ordinance.  He said his plan  was for a $100                                                               
fine for public consumption of marijuana  and had to pull it back                                                               
because  it currently  doesn't fit  in the  Fairbanks North  Star                                                               
Borough.  Should the [fine] be  by law it could be brought before                                                               
the  Fairbanks   North  Star  Borough   Assembly  and   adopt  an                                                               
ordinance.   He used the example  of it being placed  under AS 29                                                               
or  AS   17.38  as   it  would  be   most  beneficial   to  local                                                               
municipalities and  offers them  the ability to  do as  the local                                                               
legislative  body  finds appropriate  for  its  communities.   He                                                               
noted that  the aspect  of an  areawide borough  has incorporated                                                               
cities  has a  more  restrictive  code on  marijuana  that it  be                                                               
considered on an  areawide basis so the borough does  not have to                                                               
"spray  paint lines"  in  the  snow where  the  city and  borough                                                               
limits are.                                                                                                                     
                                                                                                                                
2:10:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said the  issue is complicated and hoped                                                               
the  municipalities  would  be  of  a like  mind  and  asked  for                                                               
language so the committee could understand their concerns.                                                                      
                                                                                                                                
CHAIR LEDOUX  said the sponsor  does have other language  and the                                                               
committee will be working with that.                                                                                            
                                                                                                                                
2:11:46 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX  asked in  relating  to  the  wording of  CSHB  75,                                                               
without new  language, whether the boroughs  have areawide powers                                                               
to enforce the DHSS laws.                                                                                                       
                                                                                                                                
MR. HOPKINS responded  that it depends upon the  powers that have                                                               
been given to second class boroughs.                                                                                            
                                                                                                                                
2:12:42 PM                                                                                                                    
                                                                                                                                
MS. BROKER explained that second  class boroughs do not have that                                                               
power  unless  it  has  separately   acquired  it  through  voter                                                               
approval.  She  noted that the Fairbanks North  Star Borough does                                                               
not  currently  possess  that  power  because  it  has  not  been                                                               
provided by city law or voter approval.                                                                                         
                                                                                                                                
CHAIR LEDOUX  asked which boroughs  have the authority  and which                                                               
boroughs do not.                                                                                                                
                                                                                                                                
MS.  BROKER  answered that  she  would  not  like to  speak  with                                                               
authority, but  does not  believe that  any second  class borough                                                               
has that authority.                                                                                                             
                                                                                                                                
2:13:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  raised the  issue of whether  any state                                                               
laws should be changed to provide flexibility.                                                                                  
                                                                                                                                
2:14:15 PM                                                                                                                    
                                                                                                                                
CATHY  WASSERMAN, Alaska  Municipal League,  said the  purpose of                                                               
the  Alaska  Municipal   League  (AML)  is  to   attempt  to  put                                                               
municipalities  on  the  same  page.   The  bill  expresses  what                                                               
municipalities need to ascertain its  residents are safe and that                                                               
municipalities abide  by the  provision of  the initiative.   She                                                               
noted there  are disagreements between areawide  and non-areawide                                                               
and AML does  not take a position  on that issue.   She said that                                                               
AML appreciates  CSHB 75 as  it offers  the local option  to take                                                               
care  of   issues  on   the  local  level.     She   opined  that                                                               
municipalities will  feel the ramifications first  whether or not                                                               
there are  good or  bad things  that happen and  they need  to be                                                               
able  to be  flexible.   She  further opined  her  hope that  the                                                               
municipalities and legislature  look at the issue in  a couple of                                                               
years because she  is confident there are issues  that won't work                                                               
well and noted that the AML is in favor of CSHB 75.                                                                             
                                                                                                                                
2:18:43 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX  surmised that  the 12 plant  limit is  a compromise                                                               
that the municipalities have more or less agreed upon.                                                                          
                                                                                                                                
MS. WASSERMAN  opined that  the 12 plant  limit is  a placeholder                                                               
and no  one is  married to 12.   It does  help keeps  things from                                                               
being grey for law enforcement  when determining who lives in the                                                               
residence, are they  on the North Slope, in the  military, or the                                                               
National Guard  and gone for a  month and law enforcement  has to                                                               
wait until  the person returns.   She  opined there are  too many                                                               
questions  and  too  many  ifs,   ands,  or  buts,  so  the  more                                                               
regulation put  into this sometimes  brings more  enforcement and                                                               
more  questions.    She  further  opined  that  the  limit  is  a                                                               
stipulation  that will  keep  it  more clean  cut  and allow  law                                                               
enforcement to  be more positive  in responding  to a call.   She                                                               
referred  to the  committee discussion  on tax  and she  said she                                                               
found the  registration tax similar  to the Raw Fish  Tax Program                                                               
which the legislature shares with municipalities.                                                                               
                                                                                                                                
2:20:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  referred to the discussion  relating to 12                                                               
plants and  he surmised  there is  some tension  with what  to do                                                               
with the  constitutional protections from  Ravin for plants  in a                                                             
residence.  In attempting to  articulate law enforcement needs is                                                               
what the  12 plants is attempting  to address and, he  noted, the                                                               
detective  from  a  prior meeting  showed  samples  of  marijuana                                                               
except his  expertise was  in harder drugs.   Although,  there is                                                               
concern   with  the   12  plants   limit,  he   pondered  whether                                                               
municipalities  are not  going to  be doing  much with  plants at                                                               
home,  whether  12 or  30  plants  because  it is  confusing  and                                                               
difficult  to  ascertain  where  Ravin fits.    He  surmised  law                                                             
enforcement  would  find  the  plants   because  they  are  at  a                                                               
residence for something else.                                                                                                   
                                                                                                                                
2:22:24 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX asked  how  Bruce Schulte  "squares"  the 12  plant                                                               
limit with  the specific  wording of  the initiative  and whether                                                               
his organization has a position.                                                                                                
                                                                                                                                
BRUCE  SCHULTE, Coalition  for Responsible  Cannabis Legislation,                                                               
Anchorage, Alaska, said  he has given this issue a  great deal of                                                               
thought and  determined that many  of the numbers thrown  out are                                                               
somewhat subjective  in nature  as they  are based  on precedence                                                               
outside of the state.                                                                                                           
                                                                                                                                
He  said that  everyone would  like  to see  law enforcement  and                                                               
Alaskan citizens have clear guidance  on this issue.  He pondered                                                               
substantial arguments for the number  of plants as the initiative                                                               
reads that adults over  the age of 21 can have  up to six plants,                                                               
and  the question  relates to  limits of  multiple adults  in the                                                               
home.  He  said he looked at the legal  precedent which was Ravin                                                             
and he  cannot find a specific  reference to 24 plants  as it may                                                               
be  in  a  subsequent  ruling.   He  determined  that  the  Ravin                                                             
decision was a forced  issue as Mr. Ravin went out  of his way to                                                               
get arrested  just to bring  this issue  to court.   When looking                                                               
for a benchmark, 24 plants is  a compelling number.  He submitted                                                               
that a total  of 24 plants in any household  is probably the most                                                               
defensible  based   upon  prior  legal  precedent   and  rational                                                               
arguments.  He stated that it  points to another opportunity of a                                                               
home grower license,  referenced in another bill,  in which there                                                               
should   be   a   distinction   between   personal   cultivation,                                                               
possession, and  commercial, however, it  is a fact that  some of                                                               
the existing commercial market is  being supplied by smaller home                                                               
growers.   He remarked  that the challenge  for the  industry and                                                               
legislature is how  to encourage those folks to  participate in a                                                               
regulated  marijuana  taxed  industry.   He  contends  the  state                                                               
should make it as easy as possible  for a person to obtain a home                                                               
grower  license  so  they  can   participate  legitimately  in  a                                                               
regulated marijuana  industry but,  he posited,  confusion cannot                                                               
be entirely avoided.                                                                                                            
                                                                                                                                
2:26:28 PM                                                                                                                    
                                                                                                                                
CHAIR  LEDOUX  said the  Alcoholic  Beverage  Control Board  (ABC                                                               
Board)  or Marijuana  Control  Board can  consider  a home  grown                                                               
license.   She opined that  there is  the Ravin right  to privacy                                                             
issue  which  is  a  different   issue  than  the  terms  of  the                                                               
initiative.                                                                                                                     
                                                                                                                                
MR. SCHLTE  responded that the  initiative clearly reads  that an                                                               
individual can  grow up  to six  plants in  their home  and where                                                               
there are  two or more adults  is a grey area,  which he surmised                                                               
exists all  the way  to 24  plants.  He  suggested that  the only                                                               
rational manner  to address this  is to  simply say for  a single                                                               
adult, possession  is six plants,  for multiple adults  sharing a                                                               
residence the number  is 24 plants.   He said he does  not have a                                                               
good answer for that issue.                                                                                                     
                                                                                                                                
2:28:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  noted that  initiative refers to  6 plants                                                               
and asked how 12 plants is  irrational and 24 plants is rational.                                                               
He questioned  that the number  of plants is an  arbitrary number                                                               
as there are households with more than 4 adults.                                                                                
                                                                                                                                
MR. SCHULTE said it is only  slightly less arbitrary based on the                                                               
fact there is a legal  opinion stipulating that anything under 25                                                               
plants  is considered  a protected  activity  under the  person's                                                               
right to privacy.  He said that  is the only argument he can make                                                               
and granted that  the difference between 12 and 24,  based on his                                                               
argument is a slim one.                                                                                                         
                                                                                                                                
2:30:10 PM                                                                                                                    
                                                                                                                                
MR. HILYARD offered  the rationale as to how  the House Community                                                               
and Regional  Affairs Standing Committee  came to 12 plants.   He                                                               
said it  goes beyond the City  and [County] of Denver  adopting a                                                               
similar regulation.                                                                                                             
                                                                                                                                
CHAIR  LEDOUX said  she read  the  article in  the packets  which                                                               
talked  about a  36  plant limit  for the  City  [and County]  of                                                               
Denver.                                                                                                                         
                                                                                                                                
MR. HILYARD stated that is new  in response to grow operations in                                                               
non-residential  areas.   He noted  that the  City and  County of                                                               
Denver  is attempting  to put  a different  restriction for  grow                                                               
operations  that  could  be  considered  personal  grow  in  non-                                                               
residential areas.   He opined  there is an ordinance  before the                                                               
City  and County  of  Denver that  would  be a  limit  of 12  per                                                               
household  in a  residential  area.   In  terms  of working  with                                                               
municipalities in arriving at a  bright line number, he remarked,                                                               
that the  federal government currently  provides a  limitation on                                                               
the  amount  of  home  brew   a  person  can  brew  for  personal                                                               
consumption  for alcohol.   He  advised the  limitations are  100                                                               
gallons per  person or not  more than 200 gallons  per household.                                                               
Similarly, the  thought of the committee  was that if there  is a                                                               
standard for the amount of home  brew, there should be a limit on                                                               
the  amount  that  can  be  personally  cultivated  for  personal                                                               
consumption.    He provided  that  there  is  a question  in  the                                                               
packets regarding  "How much usable  marijuana is in an  ounce of                                                               
pot,"  and  the author  responded  there  are roughly  60  joints                                                               
assuming that  a joint is  one-half gram  of marijuana.   He said                                                               
that the author characterized it as  a "keg of pot," as there are                                                               
roughly 60,  12-ounce beers  in a  pony keg of  beer.   The House                                                               
Community  and  Regional  Affairs Standing  Committee  determined                                                               
that an ounce of pot is  roughly 5.35 gallons of beer.  Depending                                                               
upon  the ability  of  a  home cultivator  the  amount of  usable                                                               
marijuana  could [fluxuate],  he remarked.   On  the low  end, he                                                               
opined, six plants in one year could produce 1.5 pounds or 18-                                                                  
ounces.    On  the  high  end, he  continued,  six  plants  could                                                               
generate as much as 13.5 pounds  of usable marijuana a year.  The                                                               
committee assumed that  1.5-13.5 pounds per year for  6 plants is                                                               
a  reasonable estimation  of the  amount that  could be  yielded.                                                               
Using the  assumption that 1  ounce is  equal to 5.35  gallons of                                                               
beer,  on the  low end  18  ounces equates  to approximately  101                                                               
gallons.   Yet,  he  noted, on  the high  end  13.5 pounds  would                                                               
equate to  1200 gallons per  year.   The campaign to  promote the                                                               
initiative was a  campaign to regulate marijuana  like alcohol so                                                               
in adopting the  12 plant limit, and attempting to  find a bright                                                               
line and a standard, that was the rationale.                                                                                    
                                                                                                                                
2:35:10 PM                                                                                                                    
                                                                                                                                
MR.  SCHULTE  referred to  his  3/11/15,  memo to  Representative                                                               
Gabrielle   LeDoux   and   testified  regarding   Sec.   12,   AS                                                               
17.38.110(m), page 7, lines 16-20, which read:                                                                                  
                                                                                                                                
     (m)  A   municipality  that  has  not   prohibited  the                                                                    
     operation   of    marijuana   cultivation   facilities,                                                                    
     marijuana  product manufacturing  facilities, marijuana                                                                    
     testing   facilities,  retail   marijuana  stores,   or                                                                    
     marijuana clubs under (a) of  this section may create a                                                                    
     local  advisory board  to  advise  the municipality  on                                                                    
     issues    related    to    licensing    of    marijuana                                                                    
     establishments and regulation of marijuana.                                                                                
                                                                                                                                
                                                                                                                                
MR.  SCHULTE  said  he  just realized  that  AS  17.38.110(m)  is                                                               
currently  in  29-LS0345\S, and  moved  to  page  3 of  his  memo                                                               
regarding the  definition of  "public place."   There will  be an                                                               
issue,   whether  commercial   business  or   otherwise,  wherein                                                               
marijuana might be  lawfully be consumed on  the premises, mainly                                                               
of a  private business.  He  noted that the discussion  today had                                                               
been about  marijuana clubs  and he offered  other examples  of a                                                               
trade show,  or the Cannabis Cup.   He remarked that  those types                                                               
of  events  could   allow  consumption  on  the   premises  in  a                                                               
designated area,  equivalent to  a beer garden.   He  pointed out                                                               
that  within Title  4 of  the  alcohol regulations  there are  22                                                               
different  license types  articulated,  of  which are  temporary,                                                               
seasonal, and  annual licenses.   He submitted that  the solution                                                               
for  this issue  is not  to define  what a  public space  is, but                                                               
rather provide a simple exception, which read:                                                                                  
                                                                                                                                
     AS 17.38.040 Public Consumption [BANNED, PENALTY]                                                                          
                                                                                                                                
     It is  unlawful to consume marijuana  in public, except                                                                
     on the premises of  a marijuana establishment operating                                                                
     under a  state or  local license  or permit.  [A PERSON                                                                
       WHO VIOLATES THIS SECTION IS GUILTY OF A VIOLATION                                                                       
     PUNISHABLE BY A FINE OF UP TO $100].                                                                                       
                                                                                                                                
MR. SCHULTE said the language solves  the problem as in the event                                                               
the  Alcoholic  Beverage  Control Board  (ABC  Board)  determines                                                               
another  permit  type, or  business  type,  it had  already  been                                                               
addressed   in  state   statute.     It  is   a  permit   with  a                                                               
classification of  temporary, seasonal or annual,  he reiterated,                                                               
and  it   would  be  issued  under   whatever  parameters  deemed                                                               
appropriate where marijuana consumption would  be lawful.  It the                                                               
most concise solution to the problem, he opined.                                                                                
                                                                                                                                
2:40:08 PM                                                                                                                    
                                                                                                                                
MR. HILYARD  responded to Chair  LeDoux that at first  blush, Mr.                                                               
Schulte's recommendation  could seem  reasonable.   He reiterated                                                               
that CSHB 75  is essentially the work  product of municipalities,                                                               
and would ask the municipalities to weigh in.                                                                                   
                                                                                                                                
2:41:08 PM                                                                                                                    
                                                                                                                                
CHAIR LEDOUX said she would not close public testimony.                                                                         
                                                                                                                                
2:41:29 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   

Document Name Date/Time Subjects
HB75 Proposed Draft Ver S.PDF HJUD 3/11/2015 1:00:00 PM
HB 75
HB75 Sponsor Statement, versionS.pdf HJUD 3/11/2015 1:00:00 PM
HB 75
HB75 Fiscal Note.pdf HJUD 3/11/2015 1:00:00 PM
HB 75
HB 75 Supporting Documents - Legal Memorandum, Equal Protection and household limits.pdf HJUD 3/11/2015 1:00:00 PM
HB 75
HB75 Supporting Documents - Legal Opinion, Administrative Procedures Act.pdf HJUD 3/11/2015 1:00:00 PM
HB 75
HB75 Supporting Documents - Legal Opinion, Establishment Revocation.pdf HJUD 3/11/2015 1:00:00 PM
HB 75