Legislature(2021 - 2022)BARNES 124
04/12/2021 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SJR8 | |
| HB156 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 8 | TELECONFERENCED | |
| += | HB 156 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
April 12, 2021
1:01 p.m.
MEMBERS PRESENT
Representative Josiah Patkotak, Chair
Representative Grier Hopkins, Vice Chair
Representative Zack Fields
Representative Calvin Schrage
Representative Sara Hannan
Representative George Rauscher
Representative Mike Cronk
Representative Ronald Gillham
Representative Tom McKay
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE JOINT RESOLUTION NO. 8(RES)
Urging the Alaska delegation in Congress, the United States
Department of the Interior, and the Governor to facilitate a
land grant endowment to the University of Alaska; urging the
Alaska delegation in Congress to reintroduce the University of
Alaska Fiscal Foundation Act; and urging the Department of
Natural Resources to work with the University of Alaska to
identify lands suitable for the land endowment.
- MOVED CSSJR 8(RES) OUT OF COMMITTEE
HOUSE BILL NO. 156
"An Act relating to industrial hemp; and providing for an
effective date."
- MOVED CSHB 156(RES) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SJR 8
SHORT TITLE: COMPLETION OF UNIVERSITY LAND GRANT
SPONSOR(s): SENATOR(s) STEVENS
02/03/21 (S) READ THE FIRST TIME - REFERRALS
02/03/21 (S) EDC, RES
02/15/21 (S) EDC AT 9:00 AM BUTROVICH 205
02/15/21 (S) Moved SJR 8 Out of Committee
02/15/21 (S) MINUTE(EDC)
02/17/21 (S) EDC RPT 5DP
02/17/21 (S) DP: HOLLAND, HUGHES, STEVENS, MICCICHE,
BEGICH
03/12/21 (S) RES AT 3:30 PM BUTROVICH 205
03/12/21 (S) -- MEETING CANCELED --
03/15/21 (S) RES AT 3:30 PM BUTROVICH 205
03/15/21 (S) Moved CSSJR 8(RES) Out of Committee
03/15/21 (S) MINUTE(RES)
03/17/21 (S) RES RPT CS 6DP NEW TITLE
03/17/21 (S) DP: REVAK, STEVENS, MICCICHE, BISHOP,
VON IMHOF, KIEHL
03/22/21 (S) TRANSMITTED TO (H)
03/22/21 (S) VERSION: CSSJR 8(RES)
03/24/21 (H) READ THE FIRST TIME - REFERRALS
03/24/21 (H) RES
04/07/21 (H) RES AT 1:00 PM BARNES 124
04/07/21 (H) Heard & Held
04/07/21 (H) MINUTE(RES)
04/12/21 (H) RES AT 1:00 PM BARNES 124
BILL: HB 156
SHORT TITLE: INDUSTRIAL HEMP PROGRAM;MANUFACTURING
SPONSOR(s): REPRESENTATIVE(s) HOPKINS
03/29/21 (H) READ THE FIRST TIME - REFERRALS
03/29/21 (H) L&C, RES
03/31/21 (H) L&C REFERRAL REMOVED
03/31/21 (H) FIN REFERRAL ADDED AFTER RES
03/31/21 (H) BILL REPRINTED
04/07/21 (H) RES AT 1:00 PM BARNES 124
04/07/21 (H) Heard & Held
04/07/21 (H) MINUTE(RES)
04/12/21 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
SENATOR GARY STEVENS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided information and
answered questions during the hearing on SJR 8.
TIM LAMKIN, Staff
Senator Gary Stevens
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on SJR 8 on behalf of Senator Stevens, prime
sponsor.
ED FOGELS, Partner
Jade North, LLC
Anchorage, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on SJR 8.
REPRESENTATIVE GRIER HOPKINS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided information and
answered questions during the hearing on HB 156.
BUDDY WHITT, Staff
Senator Shelley Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HB 156 on behalf of Senator Shelley
Hughes, prime sponsor of SB 27.
DAVE SCHADE, Director
Division of Agriculture
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HB 156.
ROB CARTER, Manager
Plant Materials Center
Division of Agriculture
Department of Natural Resources
Palmer, Alaska
POSITION STATEMENT: Provided information and answered questions
during the hearing on HB 156.
ACTION NARRATIVE
1:01:54 PM
CHAIR JOSIAH PATKOTAK called the House Resources Standing
Committee meeting to order at 1:01 p.m. Representatives McKay,
Fields, Cronk, Hopkins, Schrage, Gillham, Hannan, Rauscher, and
Patkotak were present at the call to order.
SJR 8-COMPLETION OF UNIVERSITY LAND GRANT
1:02:34 PM
CHAIR PATKOTAK announced that the first order of business would
be CS FOR SENATE JOINT RESOLUTION NO. 8(RES) Urging the Alaska
delegation in Congress, the United States Department of the
Interior, and the Governor to facilitate a land grant endowment
to the University of Alaska; urging the Alaska delegation in
Congress to reintroduce the University of Alaska Fiscal
Foundation Act; and urging the Department of Natural Resources
to work with the University of Alaska to identify lands suitable
for the land endowment.
1:03:19 PM
SENATOR GARY STEVENS, Alaska State Legislature, as prime
sponsor, explained that the University of Alaska (UA) has been
"land deficit" in its history, and SJR 8 would give UA greater
fiscal stability, thereby resulting in the university's reduced
reliance on state general fund money. He noted that SJR 8 is
the response to the request from Alaska's congressional
delegation for help in passing the University of Alaska Fiscal
Foundation Act.
1:04:39 PM
REPRESENTATIVE RAUSCHER asked for clarification regarding the
proposed legislation's effect on that which the federal
government owes the State of Alaska.
SENATOR STEVENS replied that the acreage in question is part of
the lands already owed to the State of Alaska by the federal
government. In response to a follow-up question, he deferred to
his staff.
1:05:36 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, on behalf of Senator Stevens, prime sponsor,
explained that the available volume of land is "fixed," and this
request from Alaska's congressional delegation is aimed at
finalizing the land conveyances. As further clarification, he
explained that SJR 8 is a resolution intended to give Alaska's
congressional delegation a tool to help finalize the process of
land conveyances.
1:07:00 PM
CHAIR PATKOTAK opined that SJR 8 is like asking the federal
government to pay an invoice instead of invoicing them again.
1:07:15 PM
ED FOGELS, Partner, Jade North, LLC, explained that this effort
would not change the amount of land owed to the state by the
federal government; rather, it "shaves off" some of the land
owed and gives it to UA.
1:08:21 PM
REPRESENTATIVE HOPKINS moved to report SJR 8 out of committee
with individual recommendations and the accompanying zero fiscal
note. There being no objection, CSSJR 8(RES) was moved out of
the House Resources Standing Committee.
1:08:41 PM
The committee took a brief at-ease.
HB 156-INDUSTRIAL HEMP PROGRAM;MANUFACTURING
1:12:25 PM
CHAIR PATKOTAK announced that the final order of business would
be HOUSE BILL NO. 156, "An Act relating to industrial hemp; and
providing for an effective date."
1:12:45 PM
REPRESENTATIVE HANNAN moved to adopt Amendment 1, labeled 32-
LS0741\A.1, Radford, 4/9/21, which read as follows:
Page 3, lines 9 - 15:
Delete all material and insert:
"* Sec. 2. AS 03.05.010(c) is amended to read:
(c) The commissioner of natural resources shall
notify the Marijuana Control Board and the Department
of Public Safety when the commissioner issues a stop
order. The commissioner of natural resources
(1) shall issue a stop order to a [ANY]
person
(A) not registered under AS 03.05.076 who
is found to be producing a plant [PRODUCT] with delta-
9-tetrahydrocannabinol; or
(B) registered under AS 03.05.076 who is
found to be producing a plant with delta-9-
tetrahydrocannabinol over one percent; and
(2) may issue a stop order to a person
registered under AS 03.05.076 who is found to be
producing a plant with delta-9-tetrahydrocannabinol
between 0.3 percent and one percent [OVER 0.3 PERCENT,
REGARDLESS OF WHETHER THE PERSON IS REGISTERED UNDER
AS 03.05.076. THE COMMISSIONER OF NATURAL RESOURCES
SHALL NOTIFY THE MARIJUANA CONTROL BOARD AND THE
DEPARTMENT OF PUBLIC SAFETY WHEN THE COMMISSIONER
ISSUES A STOP ORDER]."
Page 3, following line 31:
Insert a new bill section to read:
"* Sec. 4. AS 03.05.076(e) is amended to read:
(e) The department [MAY]
(1) shall issue a stop-sale order and issue
a violation notice to a person who is producing
industrial hemp without a current registration;
(2) may adopt regulations regarding
approved shipping documentation for the transportation
of industrial hemp;
(3) may conduct random tests and
inspections of industrial hemp for delta- 9-
tetrahydrocannabinol concentration produced by an
individual registered under this section."
Renumber the following bill sections accordingly.
Page 4, line 26:
Delete "Section 8"
Insert "Section 9"
Page 5, line 1:
Delete "sec. 9(a)"
Insert "sec. 10(a)"
Delete "sec. 8"
Insert "sec. 9"
Page 5, line 3:
Delete "sec. 9(b)"
Insert "sec. 10(b)"
1:12:58 PM
REPRESENTATIVE SCHRAGE objected for purposes of discussion.
1:13:12 PM
REPRESENTATIVE GRIER HOPKINS, Alaska State Legislature, as prime
sponsor of HB 156, explained that Amendment 1 is a friendly
amendment intended to ensure that HB 156 and SB 27 move forward
in similar form. He noted the importance of passing the
proposed legislation by October in order to give the Department
of Natural Resources (DNR) time to create regulations for the
industrial hemp program in accordance with federal law. He
outlined Amendment 1, stressing that it clarifies "stop orders"
for growers of crops with tetrahydrocannabinol (THC) who are not
registered with the State of Alaska or who are producing
industrial hemp with a THC concentration over one percent. He
noted that Amendment 1 clarifies that the DNR commissioner may
issue a stop order to a registered grower with a crop containing
THC concentrations of between .3 and 1 percent, depending on
whether the grower is making a good faith effort to reduce the
THC concentration in the final product. He also noted that
Amendment 1 contains clarifying language for other parts of the
bill.
1:15:42 PM
REPRESENTATIVE RAUSCHER asked whether Amendment 1 relieves
possible penalties that could be imposed on growers by the DNR
commissioner.
REPRESENTATIVE HOPKINS clarified those penalties would be in the
form of stop orders; growers would lose the ability to produce
industrial hemp.
REPRESENTATIVE RAUSCHER asked whether HB 156 contains parameters
for any penalties other than stop orders.
REPRESENTATIVE HOPKINS deferred to Buddy Whitt, staff to Senator
Hughes.
1:18:04 PM
BUDDY WHITT, Staff, Senator Shelley Hughes, Alaska State
Legislature, explained that there are guidelines for civil
penalties for growers who are found guilty of a violation if
they have crops with THC concentrations of between .3 and 1
percent and fail to recondition their crop as allowed by the
Division of Agriculture [within DNR]. Crops of industrial hemp
with THC concentrations over 1 percent become a matter of
criminal law.
REPRESENTATIVE RAUSCHER asked whether stop orders replace
penalties, exist alongside penalties, or affect different areas.
REPRESENTATIVE HOPKINS noted that representatives from the
Division of Agriculture are available for questions.
1:20:12 PM
DAVE SCHADE, Director, Division of Agriculture, Department of
Natural Resources, explained that the stop order applies to any
grower not registered and carries with it a civil penalty of
$500 per day. Any grower with a crop containing THC
concentrations of over one percent is reported to the Marijuana
Control Board, which then has jurisdiction. The Division of
Agriculture retains the discretion to work with growers who have
crops with THC concentrations of between .3 and 1 percent to
recondition their crop to get the concentration below .3
percent; if a grower does not lower the THC levels to the legal
concentration, the Division of Agriculture has the discretion to
give the grower a stop order and/or a civil penalty.
1:21:31 PM
REPRESENTATIVE SCHRAGE asked whether the program already
requires growers to register.
REPRESENTATIVE HOPKINS responded that, as the pilot program is
ending, growers would have to re-register.
REPRESENTATIVE SCHRAGE asked whether the pilot program required
registration.
1:22:12 PM
MR. SCHADE explained that under federal law, all producers of
industrial hemp are required to be registered in either a state
program or the U.S. Department of Agriculture (USDA) program.
He stated his belief that no grower in Alaska has registered
with the USDA, and added that manufacturers and retail stores
must also be registered. He said that the language
transitioning from the pilot program to the permanent program
will include "rolling over" the currently registered growers
into the permanent program.
REPRESENTATIVE SCHRAGE withdrew his objection to the motion to
adopt Amendment 1.
1:23:29 PM
CHAIR PATKOTAK objected for discussion purposes.
1:23:31 PM
REPRESENTATIVE GILLHAM referred to language in HB 156 that
discusses regulating the farming of elk.
REPRESENTATIVE HOPKINS reminded Representative Cronk that
legislative drafting style requires amending the entire section
of the statute to include new language.
1:24:45 PM
REPRESENTATIVE RAUSCHER referred to the earlier discussion of a
civil penalty of $500 per day and asked how quickly those
penalties could be expected to add up.
REPRESENTATIVE HOPKINS replied that the language of HB 156 gives
the DNR commissioner leeway to work with growers who are
determined to be acting in good faith instead of imposing
mandatory penalties; civil penalties would not come into effect
until, and if, a grower is determined to be attempting to skirt
the law and grow marijuana instead of industrial hemp.
1:25:50 PM
CHAIR PATKOTAK removed his objection. There being no further
objection, Amendment 1 was adopted.
1:26:05 PM
REPRESENTATIVE HANNAN noted her support for HB 156 [as amended],
and asked whether individual growers who want to grow hemp for
personal use would be allowed to do so.
MR. SCHADE explained that, under federal law, there is no
personal exemption for growing industrial hemp; anyone who wants
to grow, use, manufacture, or sell the product must be
registered with the program, which is the reason why the
registration fee is only $400.
REPRESENTATIVE HANNAN asked for the dollar amount of the testing
fee.
MR. SCHADE replied that testing products intended for animal or
human consumption comes with fees in the hundreds of dollars,
but industrial hemp for non-consumption uses such as textiles
requires much simpler testing to determine only THC content.
1:30:09 PM
REPRESENTATIVE RAUSCHER said, "I had heard that if you had a
large pot crop ... and you were to plant a hemp crop next door,
the bees would cross-pollinate and basically turn the cannabis
into hemp. ... Do you know whether that's true?"
1:30:54 PM
ROB CARTER, Manager, Plant Materials Center, Division of
Agriculture, Department of Natural Resources, explained that,
insofar as cannabis is generally wind-pollinated, there are
isolations distances required to protect one cannabis producer
from another. Pollen transfer from an industrial hemp crop to a
recreational cannabis operation could result in lower quality
cannabinoids, including THC concentration, thereby affecting the
market for that crop. He stressed that this activity has been
accounted for in the regulations. In response to a follow-up
question, he said that the size of the cannabis pollen is what
determines the distance.
1:33:20 PM
REPRESENTATIVE HOPKINS moved to report HB 156, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes.
1:33:32 PM
CHAIR PATKOTAK objected to allow Representative Hopkins the
opportunity to provide any closing comments. After ascertaining
that Representative Hopkins had no closing comments, he removed
his objection. There being no further objection, CSHB 156(RES)
was reported out of the House Resources Standing Committee.
1:35:01 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:35 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 156 Amendment Hopkins 4.12.2021.pdf |
HRES 4/12/2021 1:00:00 PM |
HB 156 |
| HB 156 Sectional Analysis 4.7.2021.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM |
HB 156 |
| HB 156 Sponsor Statement 3.30.2021.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM |
HB 156 |
| HB 156 Letter of Support Jack Bennet 4.7.2021.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM |
HB 156 |
| HB 156 Letter of Support Ember Haynes 4.7.2021.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM |
HB 156 |
| SJR 8 Letter of Support UAF Alumni Association 3.29.2021.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM |
SJR 8 |
| SJR08_UnivAK_LandGrant_Research_Presentation_12March2021.pdf |
HRES 4/12/2021 1:00:00 PM SRES 3/15/2021 3:30:00 PM |
SJR 8 |
| SJR08_UnivAK_LandGrant_SponsorStatement.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM SEDC 2/15/2021 9:00:00 AM |
SJR 8 |
| SJR08_UnivAK_LandGrant_Research_Land-Grant-History.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM SEDC 2/15/2021 9:00:00 AM |
SJR 8 |
| 2021 01 15 Support for the UA Land Grant Conveyance.pdf |
HRES 4/7/2021 1:00:00 PM HRES 4/12/2021 1:00:00 PM SEDC 2/15/2021 9:00:00 AM |
SJR 8 |