HOUSE BILL NO. 3 "An Act relating to controlled substances and to the possession and distribution of certain chemicals." Co-Chair Therriault observed that he introduced similar legislation and that his office has worked with Representative Brice on HB 3. REPRESENTATIVE TOM BRICE, SPONSOR testified in support of HB 3. He reviewed his sponsor statement. Methamphetamine is an addictive stimulant that dramatically affects the central nervous system. Methamphetamine is commonly known as "crank," "speed," and "ice." The drug is easily made in laboratories with relatively inexpensive, over-the-counter ingredients. Methamphetamine laboratories are extremely dangerous, even if they are not producing as the combinations of the chemicals that are used in the production process are highly explosive. These factors make methamphetamine a dangerous drug with great potential for widespread abuse. House Bill 3 raises the penalties for the manufacture of methamphetamines and their immediate precursors, and the possession of listed chemicals with the intent to manufacture these drugs. Under the CSHB 3, the manufacture of methamphetamines and their immediate precursors will be a class A felony, punishable as provided in AS 12.55.125. It also identifies chemicals that are legal to posses but are used for the manufacture of controlled substances. Possession of these chemicals with the intent to manufacture methamphetamines or their immediate precursors is made a class A felony. Representative Brice noted that section 1 establishes that the manufacture of methamphetamine or an immediate precursor of methamphetamine with the intent to manufacture is a class A felony. Section 3 clarifies that the provision only applies to conduct that is not proscribed under section 1. He explained that there are new processes with new chemicals being developed in the manufacture of methamphetamine. Therefore, it was decided that a list should be maintained to place the elements of the crime specifically in statute. He noted that the Internet contains information regarding the manufacturing of methamphetamine. Vice-Chair Bunde noted that some of the elements are relatively common. He questioned how many of the components a person would need to have in their position for prosecution. Representative Brice replied that it would be at the discretion of the law enforcement officers. He clarified that intent to manufacture methamphetamine must be demonstrated. JERRY LUCKHAUPT, LEGISLATIVE COUNSEL, LEGISLATIVE AFFAIRS AGENCY explained that possession of the chemicals is not made illegal. Possession must be accompanied by the intent to manufacture methamphetamine. He discussed circumstances that could lead to intent such as statements by the defendant or recipes and equipment used in the manufacture of methamphetamine. Co-Chair Therriault observed that the legislation was amended to clarify that there must be intent to manufacture. Representative J. Davies expressed concern with section 3, page 2. He questioned if there are other substances that could be manufactured with the same precursors. Mr. Luckhaupt explained that immediate precursors have been identified as separate controlled substances. He observed that the chemicals listed in section 3 are precursors. Immediate precursors are defined in A.S. 11.71.900. He noted that the legislation recognizes that the manufacture of methamphetamine is dangerous in itself. The intent to manufacture was upgraded from a class B to a class A felony. Manufacturing an immediate precursor carries the same penalty as manufacturing methamphetamine. Section 3 follows other controlled substance laws. Subsection 4 is an addition to existing law. It codifies a specific form of intent to manufacture methamphetamine or an immediate precursor to methamphetamine. In response to a question by Representative G. Davis, Representative Brice clarified that all of the chemicals in section 5 are can be used in the manufacture of methamphetamine. Mr. Luckhaupt noted that the list follows federal law as essential in the illegal manufacture of a controlled substance. There are some chemicals used in the manufacture of methamphetamine, which are not on the federal list. These were added. Vice-Chair Bunde asked if there is a market for the immediate precursor. Representative Brice explained that the legislation responds to frustrations by enforcement officers in their inability to close methamphetamine laboratories before the controlled substance has been produced. Co-Chair Therriault noted that 5 gallons of smoking chemicals were found in one operation. He emphasized the danger of immediate precursors. Representative Austerman expressed surprise that there is no fiscal cost to the legislation. Representative Brice explained that the manufacture of methamphetamine is only beginning in the state of Alaska. Co-Chair Therriault noted that there were two prosecutions in the last year, and one of these was a federal case. He observed that the department felt that they could absorb the additional cost. In response to a question by Representative J. Davies, Mr. Luckhaupt explained that federal law identifies the chemicals that are important to the manufacture of methamphetamine. The state and federal schedules do not match identically. He gave examples of differences between state and federal listings. He concluded that the state is making a finding that these substances are used in the manufacture of controlled substances so that possession of the chemicals with the addition of intent would be illegal. He noted that other chemicals could be added for prosecution. In addition, the general attempt statute mandates that whenever a person intends to violate any other state law that a crime is committed. The crime would be punishable one level below the crime that they intended to violate. He concluded that even if a person intended to manufacture methamphetamine and they possessed other chemicals, even if they were not a listed chemical, they would be prosecuted. FIRST SGT. DAVID HUDSON, ANCHORAGE POLICE testified via teleconference in support of HB 3. BLAIR MCCUNE, ALASKA PUBLIC DEFENDERS AGENCY stated that they are concern with the use of methamphetamine. He questioned if sentencing would be tied to quantities. He stated that it is important to distinguish between a misguided youth and someone who is setting up a large laboratory. He discussed federal sentencing guidelines. He expressed concern with the inclusion of immediate precursors as a class A felony. He pointed out that a class A felony is serious. He noted that the Alaska Public Defenders Agency's fiscal note is indeterminate. The fiscal note was based on the Department of Law's estimations of additional cases. The Department of Law does not anticipate many additional cases initially. DON DAPCEVICH, ADIVSORY BOARD ON ALCOHOL AND DRUG ABUSE testified in support of HB 3. He stressed that the drug goes hand and hand with crime. He maintained that the legislation would act as a deterrent. In response to a question by Representative J. Davies, Mr. Dapcevich stated that the Board supports the change to a 1A substance. RICHARD WALLIS CRAIGHTON, JUNEAU recounted personal experiences with the police. (Tape Change, HFC 99 - 57, Side 2) Sergeant Hudson stated that the number of cases that would occur in the near future would not require a fiscal note. Representative J. Davies asked if the possession of each chemical substance on the list would lead to a separate charge. Mr. Luchhaupt stated that it is possible that there would be multiple charges. He emphasized that he is not aware of cases involving multiple charges under the federal system, which contains similar language. He noted that one form of attempt to manufacture has been codified. He stressed that he would need to research the wording of language to clarify a single charge. The possession of the chemicals together is used to make the case of intent to manufacture. Representative Foster MOVED to report CSHB 3 (JUD) out of Committee with the accompanying fiscal notes. CSHB 3 (JUD) was REPORTED out of Committee with a "do pass" recommendation and an indeterminate fiscal impact note by the Alaska Public Defenders Agency and two zero fiscal notes one by the Department of Law and one by the Department of Public Safety.