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