HB 337-MARIJUANA TAXES;EXCESS POSSESSION;BONDS                                                                     
                                                                                                                                
3:47:52 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 337, "An Act relating to taxes on marijuana."                                                                    
                                                                                                                                
3:48:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)   for  HB  337,  labeled   29-LS1490\H,  Nauman,                                                               
3/10/16, as the working document.                                                                                               
                                                                                                                                
CHAIR OLSON objected for discussion purposes.                                                                                   
                                                                                                                                
3:48:32 PM                                                                                                                    
                                                                                                                                
KALYSSA  MAILE,  Staff  to Representative  LeDoux,  Alaska  State                                                               
Legislature,  sponsor,  informed  the  committee  there  are  two                                                               
substantive changes  in the proposed  CS for  HB 337.   The first                                                               
change is on page 2, lines 14-20, which read:                                                                                   
                                                                                                                                
     Sec.  43.61.050.  Administration   and  enforcement  of                                                                  
     tax.(a)   Each   marijuana  cultivation   facility   is                                                                  
     primarily liable  for the payment  of the  excise taxes                                                                    
     on marijuana  sold and shall  furnish a cash  or surety                                                                    
     bond of $5,000, payable  to the department and approved                                                                    
     by the  Department of Law.  If a  marijuana cultivation                                                                    
     facility  fails  to  pay  the tax  to  the  state,  the                                                                    
     marijuana cultivation  facility forfeits the  bond, and                                                                    
     the   Marijuana  Control   Board   shall  suspend   the                                                                    
     marijuana cultivation facility's  license until payment                                                                    
     is made.                                                                                                                   
                                                                                                                                
MS.  MAILE  said in  response  to  public testimony,  the  $5,000                                                               
bonding requirement  was changed to a  cash or surety bond.   The                                                               
second change is on page 3, line 7, which read:                                                                                 
                                                                                                                                
     Sec.  4. This  Act  takes effect  immediately under  AS                                                                  
     01.10.070(c).                                                                                                              
MS. MAILE said  this section would ensure that the  bill would be                                                               
signed into law before licenses  for marijuana establishments are                                                               
issued.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  has   heard   that   there  are   200                                                               
applications for  commercial marijuana  operations, and  he asked                                                               
when the applications would be accepted or rejected.                                                                            
                                                                                                                                
MS. MAILE  deferred to  the Department  of Commerce,  Community &                                                               
Economic Development.                                                                                                           
                                                                                                                                
3:50:17 PM                                                                                                                    
                                                                                                                                
CHAIR   OLSON  removed   his  objection,   and  without   further                                                               
objection, Version H was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE HUGHES  opined that  the tax for  excess marijuana                                                               
is really a penalty or a fine.                                                                                                  
                                                                                                                                
REPRESENTATIVE  LEDOUX responded  that  the amount  would be  the                                                               
same amount as though the business had registered.                                                                              
                                                                                                                                
REPRESENTATIVE  HUGHES   maintained  that   a  penalty   is  more                                                               
appropriate, as she is unfamiliar with a civil tax.                                                                             
                                                                                                                                
3:52:07 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON reopened  public testimony.   After  ascertaining no                                                               
one wished to testify, public testimony was closed.                                                                             
                                                                                                                                
REPRESENTATIVE JOSEPHSON  returned attention to page  2, lines 6-                                                               
13, which read:                                                                                                                 
                                                                                                                                
     Sec. 43.61.040. Tax for Excess  Marijuana. A person who                                                                  
     is not  registered under AS  17.38 and who is  found to                                                                
     be in possession  of marijuana plants in  excess of the                                                                    
     amount of marijuana plants  authorized for personal use                                                                    
     in  AS  17.38.020(2)  is  subject to  the  tax  on  the                                                                    
     marijuana  plants possessed  in  excess  of the  amount                                                                    
     authorized for use  in AS 17.38.020. The  tax due under                                                                    
     this section is $50 for  each ounce or partial ounce of                                                                    
     marijuana possessed.   When  determining the  weight of                                                                    
     marijuana for purposes of  this section, the department                                                                    
     shall  use the  aggregate  weight  calculated under  AS                                                                    
     11.71.080.                                                                                                                 
                                                                                                                                
REPRESENTATIVE JOSEPHSON  questioned the use of  "not" registered                                                               
instead of "registered or unregistered."                                                                                        
                                                                                                                                
REPRESENTATIVE  LEDOUX  explained  that  when  a  person  is  not                                                               
registered, "personal use doesn't come into play."                                                                              
                                                                                                                                
[HB 337 was held over.]