Legislature(2023 - 2024)SENATE FINANCE 532
04/04/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB234 | |
| SB228 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| * | SB 187 | ||
| + | TELECONFERENCED | ||
| += | SB 234 | TELECONFERENCED | |
| += | SB 243 | TELECONFERENCED | |
| += | SB 228 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 4, 2024
9:04 a.m.
9:04:50 AM
CALL TO ORDER
Co-Chair Olson called the Senate Finance Committee meeting
to order at 9:04 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
MEMBERS ABSENT
Senator David Wilson
ALSO PRESENT
Senator Jesse Bjorkman, Sponsor; Kris Curtis, Legislative
Auditor, Alaska Division of Legislative Audit.
PRESENT VIA TELECONFERENCE
Joan Wilson, Director, Alcohol and Marijuana Control
Office, Department of Commerce, Community and Economic
Development; Sylvan Robb, Director, Division of
Corporations, Business and Professional Licensing,
Department of Commerce, Community and Economic Development.
SUMMARY
SB 228 EXTEND BOARD OF MASSAGE THERAPISTS
SB 228 was REPORTED out of committee with four
"do pass" recommendations and with one no
recommendation recommendation, and with one
previously published fiscal impact note: FN
1(CED).
SB 234 EXTEND MARIJUANA CONTROL BOARD
SB 234 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 234
"An Act relating to the Marijuana Control Board; and
providing for an effective date."
9:05:22 AM
Co-Chair Olson relayed that the committee heard SB 234 the
previous day. He noted that the committee intended to
finish the bill hearing and take public testimony.
9:05:59 AM
SENATOR JESSE BJORKMAN, SPONSOR, introduced himself and
explained that SB 234 was a board extension for the
Marijuana Control Board (MCB) for three years. He relayed
that the reasons for the three-year extension had been
spoken to the previous day by Legislative Auditor Kris
Curtis. He considered that it was important that the
extension also match up with the Alcoholic Beverage Control
(ABC) Board and treat the items as the voters intended when
marijuana was legalized in 2010 to be regulated like
alcohol.
9:07:10 AM
JOAN WILSON, DIRECTOR, ALCOHOL AND MARIJUANA CONTROL
OFFICE, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT (via teleconference), spoke to the bill. She
noted that she had served in the role of Director of the
Alcohol and Marijuana Control Office (AMCO) since May 2022.
She noted that the response of the Commissioner of the
Department of Commerce, Community and Economic Development
(DCCED), and the Chair of the MCB were in the audit
recommendations. She noted that the committee had heard
from the legislative auditor about the positive findings of
the audit, which she thought was that the MCB had been
operating in the public interest and had conducted its
meetings in accordance with the Open Meetings Act.
Ms. Wilson continued that audit findings showed the MCB had
actively amended its regulations as it considered
necessary, and it had conducted its enforcement activities
in a timely manner. She cited that the number continued to
change, but that there were currently 474 active and
operating licensed marijuana businesses in the state. She
continued that 178 of the businesses were stores; and there
were 63 manufacturers, 2 testing labs, and 231 cultivators.
She cited that in FY 23 the state received approximately
$29 million in excise taxes from the cultivators, and there
were significant contributions from all licensees in local
taxes.
Ms. Wilson recalled that Ms. Curtis had indicated the
previous day that over half of cultivators had been
delinquent in taxes and clarified that the information was
not accurate. She noted that there was currently $3.1
million in back taxes, the majority of which was from now-
defunct licensees. There were approximately 20 cultivators
that owed approximately $500,000 in taxes, and the
department had written accusations to revoke licenses of 15
of the cultivators. She noted that the vast majority of
licensees were complying with tax obligations.
Ms. Wilson spoke to some findings and actions that were
underway. There was a recommendation that the state
maintain criminal background information on marijuana
handler permits, so results could be verifiable in audit
review. She concurred with the recommendation and was
working with the department on the matter. She noted that
there was a new license and enforcement system in some
degree of operation and development. Much of the funding
had come from a revision to alcohol law. The marijuana
licensing system was still in development, and she noted
that an associated capital request could be forthcoming
from the governor to expand the service, which was also
funded from program receipts.
Ms. Wilson suggested that the board chair could speak to
the matter of keeping the majority of the quorum as the
appropriate number to approve regulation. She mentioned an
issue with vacancies as reasoning. She addressed fees, and
thought Ms. Curtis had indicted correctly that the fees
were set to pay back $5.5 million loan to the General Fund.
She affirmed that the resources would be available to pay
back the loan in the current fiscal year. The board had set
an agenda item to reassess license fees to recommend
additional services of AMCO or reduce fees to address the
cost of running the office without additional change.
9:11:49 AM
Ms. Wilson asserted that AMCO was a tight-knit hardworking
office whose motto was no government as usual. The office
believed it was key to successful business operations. She
expressed that timeliness mattered. She noted that at the
time of the audit, some of the queues were up to 8 months
before looking at license applications, and currently the
time frame was down to 60 days. She looked forward to
proving the work of AMCO in three years and agreed with
aligning the audit with the ABC Board to determine
effectiveness.
Co-Chair Olson asked if Ms. Wilson would comment on FN 1
from DCCED, which showed a cost of $2.1 million for
extending the existing program.
Ms. Wilson relayed that the amount was approximately half
the cost of running the AMCO office since there were more
alcoholic beverage licensees. The funding would go toward
ten full-time positions including four special
investigators, three Occupational Licensing Examiners, one
Program Coordinator, one Records and Licensing Supervisor,
and one Local Government Specialist 3. She mentioned costs
for statutorily-required travel to each judicial district
for board meetings. She noted that the board actively
enforced AS 17.38 and its implementing regulations with
accusations to take actions against licenses. She commented
that the note showed relatively high bill from the
Department of Law and the Office of Administrative
Hearings, which she considered the cost of due process. She
pointed out commodities and capital outlay as shown on the
second page of the fiscal note.
Co-Chair Olson asked if the funds were new money or from a
source other than Unrestricted General Funds (UGF).
Ms. Wilson noted that the funding should all be existing
Designated General Funds (DGF) from the program receipts
from the marijuana licensees. She noted that there was
$19.2 thousand in UGF related to salary increases. She
offered to provide more detail on the UGF funds at a later
time.
Co-Chair Olson referenced back taxes and the audit of MCB.
9:16:00 AM
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, drew attention to the document "A Sunset
Review of the Department of Commerce, Community and
Economic Development, Marijuana Control Board" (copy on
file). She highlighted page 16 of the audit, which
addressed the number of marijuana cultivators that were
delinquent in payment of taxes, collectively owing $3.1
million. She referenced Exhibit 4 on page 10, and noted
that there was an itemization of the number of licensees.
She clarified that Ms. Wilson was correct in that the
number of delinquent licensees did not represent half of
the total.
9:17:17 AM
Co-Chair Olson OPENED public testimony.
9:17:31 AM
Co-Chair Olson CLOSED public testimony.
SB 234 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 228
"An Act extending the termination date of the Board of
Massage Therapists; and providing for an effective
date."
9:17:42 AM
Co-Chair Olson relayed that the committee had heard SB 228
the previous day, at which time it heard public testimony.
Senator Jesse Bjorkman, Sponsor, explained that SB 228
proposed to extend the sunset date of the Board of Massage
Therapists for six year. He noted that the committee had
discussed some of the audit findings the previous day. The
chair of the board had been available for questions the
previous day but was not currently available. He noted that
the chair had submitted written testimony (copy on file)
and supported the bill. He commented that the chair
appreciated the legislatures actions in disallowing the
executive order that would have chloroformed the Board of
Massage Therapists.
9:19:02 AM
AT EASE
9:19:26 AM
RECONVENED
SYLVAN ROBB, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS
AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT (via teleconference),
spoke to FN 1 from DCCED, which reflected the costs of if
the Board of Massage Therapists were extended. If the bill
passed and the board continued, the department would
continue to incur the same costs as previously. The
majority of the $21,800 fiscal note was for travel for the
five-person board members and staff person to attend board
meetings. There were a few small costs related to public
notice for the board meetings. The costs came from DGF and
receipt-supported services from licensing fees.
Co-Chair Olson asked if Senator Bjorkman was in favor of
the six-year extension that was recommended by the auditor.
Senator Bjorkman answered affirmatively.
Senator Kiehl MOVED to report SB 228 out of Committee with
individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 228 was REPORTED out of committee with four "do pass"
recommendations and with one no recommendation
recommendation, and with one previously published fiscal
impact note: FN 1(CED).
9:21:40 AM
AT EASE
9:23:20 AM
RECONVENED
Co-Chair Olson discussed the agenda for the following day.
ADJOURNMENT
9:23:39 AM
The meeting was adjourned at 9:23 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 228 Written Testimony-Annetta Atwell_Brd Chair 04.03.24.pdf |
SFIN 4/4/2024 9:00:00 AM |
SB 228 |