Legislature(2015 - 2016)BARNES 124

03/11/2015 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
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Heard & Held
Moved CSHB 67(L&C) Out of Committee
            HB 123-ESTABLISH MARIJUANA CONTROL BOARD                                                                        
4:12:32 PM                                                                                                                    
CHAIR OLSON  announced that the  final order of business  would be                                                              
HOUSE BILL  NO. 123,  "An Act establishing  the Marijuana  Control                                                              
Board;  relating  to  the  powers  and  duties  of  the  Marijuana                                                              
Control Board;  relating to the  appointment, removal,  and duties                                                              
of the  director of the Marijuana  Control Board; relating  to the                                                              
Alcoholic Beverage  Control Board; and providing  for an effective                                                              
4:12:38 PM                                                                                                                    
CHAIR OLSON  said questions  on the  fiscal note  arose.   He then                                                              
reported that the fiscal note has been revised.                                                                                 
4:13:16 PM                                                                                                                    
MICALEA  FOWLER,  Legislative  Liaison,  Department  of  Commerce,                                                              
Community  &  Economic  Development  (DCCED),  stated  that  in  a                                                              
previous hearing,  the committee  discussed moving the  funds from                                                              
the  Governor's  FY  16  budget   into  the  FY  16  appropriation                                                              
request.  She  explained that the DCCED's fiscal  note was revised                                                              
to reflect the FY 16-FY 21 projected costs.                                                                                     
4:14:09 PM                                                                                                                    
CYNTHIA FRANKLIN,  Executive Director, Alcoholic  Beverage Control                                                              
Board (ABC  Board), Department of  Commerce, Community  & Economic                                                              
Development  (DCCED),  explained   that  HB  123  would  create  a                                                              
Marijuana  Control  Board  (MCB),   with  the  executive  director                                                              
serving  both the  Alcoholic Beverage  Control  Board (ABC  Board)                                                              
and the Marijuana  Control Board (MCB).  She  explained details in                                                              
the  fiscal  note,  such  that the  personal  services  adds  four                                                              
fulltime  employees  in FY  16.   She  directed  attention to  the                                                              
narrative section  of the fiscal note that contemplated  six added                                                              
positions   to   implement   proposed   regulations   related   to                                                              
marijuana.   Two positions were added  in FY 15 to respond  to the                                                              
substantial  work necessary  to  regulate marijuana.    In FY  16,                                                              
three   investigator   positions   and  one   business   licensing                                                              
examiner.   The  travel section  includes  travel for  enforcement                                                              
and   compliance,   noting  that   enforcement   officers   travel                                                              
throughout the  state to ensure  that licensees are  in compliance                                                              
and  to  ensure  that  licensees  are  not  providing  alcohol  to                                                              
minors.   She anticipated  a similar  need for enforcement  travel                                                              
to oversee marijuana licensees.                                                                                                 
MS. FRANKLIN  explained that the  new board would be  comprised of                                                              
five  members, set  up in  a similar  fashion to  the current  ABC                                                              
board.   She  reviewed  costs, in  the  first  year, including  an                                                              
anticipated  $50,000  FY  16  for   board  related  travel.    She                                                              
reviewed  services,  which included  legal  services,  information                                                              
technology   services,   employee   support   costs,   enforcement                                                              
vehicles,   printing  and   public   notices.     The   department                                                              
anticipates  needing additional  legal  services due  to the  need                                                              
for massive  regulations.  Colleagues  in Washington  and Colorado                                                              
have indicated a  great deal of interest arose on  data around the                                                              
regulation   of  recreational   marijuana,   that  the   Alcoholic                                                              
Beverage  Control Board (ABC  Board) was  currently a  paper-based                                                              
agency, but  the agency will need  necessity a database  to better                                                              
track and provide information.                                                                                                  
4:17:25 PM                                                                                                                    
MS.  FRANKLIN related  that the  database  includes software  that                                                              
has  the ability  to track  marijuana from  "seed to  sale."   She                                                              
explained  that the  services costs  include the  initial cost  of                                                              
the  database  and development  in  out  years.   The  commodities                                                              
expenditures  would include  the cost  of moving  staff since  the                                                              
current office  location cannot  accommodate the additional  staff                                                              
required to implement the initiative.                                                                                           
4:18:22 PM                                                                                                                    
MS. FOWLER  added that the  fiscal note includes  the supplemental                                                              
costs, including  expedited regulation  timeframe and the  cost of                                                              
the initial staff.                                                                                                              
4:18:49 PM                                                                                                                    
REPRESENTATIVE LEDOUX  said the cost of moving  offices appears to                                                              
cost more  than the actual  staff salaries  and costs.   She asked                                                              
whether commodities includes the office relocation.                                                                             
MS.  FRANKLIN   answered  that  commodities   includes  equipment,                                                              
office   space,   furniture,  moving   expenses,   and   equipment                                                              
purchases;  however, the  one-time  costs are  not included  after                                                              
the first year.   She directed attention  to FY 16 at  $134.5, and                                                              
in the  out years  commodities was  budgeted  at $106.1, with  the                                                              
difference between the two representing the cost of the move.                                                                   
4:20:11 PM                                                                                                                    
REPRESENTATIVE  LEDOUX  asked  for  the rationale  for  the  board                                                              
composition  and   whether  the  rules  were  different   for  the                                                              
marijuana industry  than for the  alcohol industry.   She wondered                                                              
why the two boards would be treated differently.                                                                                
MS. FRANKLIN answered  that the Marijuana Control  Board (MCB) was                                                              
modeled after  the revised Alcoholic  Beverage Control  Board (ABC                                                              
Board),  which means  that it  took into  account the  substantial                                                              
work  the  stakeholders   group  underwent  during   the  Title  4                                                              
revisions,   including  to   ensure   that  the   ABC  Board   was                                                              
representative of  the industry, public safety, and  public health                                                              
sectors affected by  the substance.  She said that  a bill has not                                                              
yet been  introduced to reflect  the proposed changes to  Title 4,                                                              
but  the  language  in  the  Marijuana  Control  Board  (MCB)  was                                                              
modeled after the revisions.                                                                                                    
4:21:28 PM                                                                                                                    
REPRESENTATIVE   LEDOUX,   assuming   the   revisions   would   be                                                              
introduced  and that the  bill passed  both bodies, asked  whether                                                              
the two board would be similar boards.                                                                                          
MS. FRANKLIN answered yes.                                                                                                      
4:21:42 PM                                                                                                                    
REPRESENTATIVE  JOSEPHSON  related   his  understanding  that  the                                                              
budget  that  moved out  of  House  Finance Committee  today  does                                                              
include any funds for marijuana regulation.                                                                                     
MS. FRANKLIN answered that was also her understanding.                                                                          
4:22:00 PM                                                                                                                    
REPRESENTATIVE  JOSEPHSON  offered   his  belief  that  the  $1.57                                                              
million would be an addition to state spending if HB 123 passed.                                                                
MS.  FOWLER answered  that the  House  Finance subcommittee  asked                                                              
the  department  to include  all  costs for  regulating  marijuana                                                              
associated  with the  initiative that  passed be  included in  the                                                              
fiscal note for  HB 123 rather than requesting these  costs in the                                                              
DCCED's budget request.                                                                                                         
4:22:39 PM                                                                                                                    
REPRESENTATIVE  JOSEPHSON   asked  whether  the  out   years  also                                                              
reflect $1.4 million.                                                                                                           
MS.  FOWLER answered  that  if the  bill  passed  with the  fiscal                                                              
note,  the  department  would  not  need  to  come  back  with  an                                                              
additional request for the out years.                                                                                           
4:23:01 PM                                                                                                                    
REPRESENTATIVE  HUGHES asked  how the  annual amount  for the  out                                                              
years compared to  the ABC Board's budget.  She  asked whether the                                                              
investigator  positions were  solely based  on Alcoholic  Beverage                                                              
Control Board (ABC  Board) or if the department  anticipated there                                                              
will be more marijuana businesses.                                                                                              
MS.  FRANKLIN  answered  that  currently  the  Alcoholic  Beverage                                                              
Control  Board   (ABC  Board)  oversees  1,875  licensees.     The                                                              
original  cost  estimate  to  implement  ballot measure  2  was  a                                                              
"mirror image" of  the ABC Board's staff.  She  commented that the                                                              
ABC  Board  currently  has  five  investigators  statewide,  three                                                              
licensing employees,  and two administrative  staff.   She trimmed                                                              
the  estimate  for  FY  16,  since  it  is  not  likely  that  the                                                              
Marijuana  Control  Board  (MCB)   will  have  as  many  licensees                                                              
initially;  however,  no decisions  have  been  made as  to  limit                                                              
licenses, similar to  the way the state limits  liquor licenses in                                                              
the  state.   She  said  the potential  exists  for  the need  for                                                              
additional staff  in the  out years; however,  it is  difficult to                                                              
estimate  until  the  state  knows how  restrictive  or  open  the                                                              
industry might be and what the level of interest might be.                                                                      
4:25:21 PM                                                                                                                    
REPRESENTATIVE HUGHES  asked for the  number of inquiries  she has                                                              
had plus any  feedback on inquiries that Colorado  has experienced                                                              
as compared to the number of businesses that have opened.                                                                       
MS. FRANKLIN  explained that  the closest analogy  population-wise                                                              
to  Alaska would  be  the City  of Denver,  which  issues its  own                                                              
marijuana   licenses.     The  City  of   Denver  anticipated   an                                                              
additional  16 employees,  but they  added 21  more for next  year                                                              
bringing the  total to  37.5 fulltime  employees for a  population                                                              
of 650,000,  serving approximately  900 marijuana  licenses.   She                                                              
compared the  types of employees,  and said that depending  on how                                                              
the  licensing  process is  structured  there  could be  a  fairly                                                              
urgent need  for additional  staffing in  future years.   However,                                                              
all of the  positions in the City  of Denver were fully  funded by                                                              
the  tax revenues  received from  regulating the  substance.   She                                                              
reported that  Denver collected over  $6 million in 2014  with the                                                              
37.5 fulltime employees,  with the cost to the city  at about $4.5                                                              
million.   She suggested that in  moving forward to  establish the                                                              
industry,  given that  it  may be  easier  to  ask for  additional                                                              
staffing once the tax revenue becomes apparent.                                                                                 
4:27:46 PM                                                                                                                    
REPRESENTATIVE  LEDOUX asked  whether  the City  of  Denver has  a                                                              
similar board that oversees alcohol.                                                                                            
MS.  FRANKLIN   explained   that  the  state   has  10   employees                                                              
statewide, including  5 enforcement officers   The  City of Denver                                                              
regulates marijuana  through its  Division of Revenue,  regulating                                                              
alcohol,  marijuana, and  gaming without  a board.   She said  the                                                              
marijuana enforcement  division  employees 55 fulltime  employees,                                                              
of which about half are investigators.                                                                                          
4:28:46 PM                                                                                                                    
REPRESENTATIVE LEDOUX  how many staff  the City of  Denver employs                                                              
to oversee the  alcohol industry, noting the city  may regulate it                                                              
differently than in  Alaska.  She recalled that Alaska  has 5 or 6                                                              
staff to assist the  ABC Board.  She asked to hone  in on how many                                                              
staff regulate  alcohol in  Denver to  help her determine  whether                                                              
the city was doing things more or less efficiently.                                                                             
MS. FRANKLIN  answered that she  did not have the  comparison, but                                                              
she has  reviewed the  State of  Washington's structure,  which is                                                              
similar  to Alaska's  system,  with a  liquor  control board  that                                                              
regulates  marijuana   and  alcohol.     She  reported   that  297                                                              
employees  cover regulations  of alcohol,  with approximately  120                                                              
assigned  to marijuana  licensing  and control.   For  comparison,                                                              
she  stated  that  Washington has  15,000  liquor  licenses,  with                                                              
significantly  more   people  working  on  alcohol   than  on  the                                                              
marijuana industry  with fewer licensees.   She used  Washington's                                                              
figures to  help her determine  staffing for marijuana  control in                                                              
Alaska, noting  that Alaska has  10 staff assigned to  the alcohol                                                              
regulation, and  potentially will  be adding six  employees, which                                                              
she said seemed fairly even.                                                                                                    
CHAIR OLSON  requested the  information be  sent to the  committee                                                              
so it can be posted and distributed to committee members.                                                                       
4:31:00 PM                                                                                                                    
REPRESENTATIVE  COLVER  asked  about   timing  of  the  regulation                                                              
MS.  FRANKLIN answered  that  the  marijuana initiative  gave  the                                                              
Department of Commerce,  Community & Economic  Development (DCCED)                                                              
nine months  from February  24, 2015  to get regulations  approved                                                              
by  the board,  whether it  happens within  the ABC  Board or  the                                                              
Marijuana  Control  Board  (MCB).   She  anticipated  the  process                                                              
would  begin  as   soon  as  session  ends,  once   the  statutory                                                              
framework  is known.    Further, she  reported  that Colorado  and                                                              
Washington,  who have marijuana  programs,  have been helping  and                                                              
will continue  to help Alaska.   In addition, she  has information                                                              
from the  Title 4 revisions to  review, all of which  represents a                                                              
good  starting  place.    The ABC  Board  released  a  preliminary                                                              
document so it has a good start, she said.                                                                                      
4:32:38 PM                                                                                                                    
REPRESENTATIVE  COLVER asked  about concepts  for a definition  of                                                              
public place.                                                                                                                   
MS.  FRANKLIN answered  that the  ABC  Board met  in an  emergency                                                              
meeting on  February 24, 2015 and  defined public place  using the                                                              
definition from  Title 11, AS 11.81.900  (53).  The  board defined                                                              
the term  "in public" as  given in AS  17.38.040 and has  used the                                                              
definition in Title  11 for "public place" for  the prohibition of                                                              
consumption of  marijuana "in  public."  She  stated that  the ABC                                                              
Board  will  meet  again  on  April   9,  2015  in  the  Anchorage                                                              
Legislative Information  Office (LIO) to take public  testimony on                                                              
whether  to  make  that  regulation   permanent.    She  said  she                                                              
received  some   initial  feedback   that  the  definition   could                                                              
potentially shut  down the possibility  of businesses  ever having                                                              
Cannabis cafés,  in which  businesses could  invite members  in to                                                              
smoke marijuana  together.   The overlay  of smoking  prohibitions                                                              
in   many  communities   in  Alaska   makes  it   a  second   year                                                              
consideration  since  the  MCB   board  would  like  to  put  some                                                              
baseline rules  in first, prior  to making decisions on  the types                                                              
of  businesses  that  will  be   allowed.    She  said  that  both                                                              
Washington  and  Colorado  have  struggled with  this  issue,  but                                                              
started  with  the  position  of  not  including  those  types  of                                                              
businesses in their initial regulations.                                                                                        
4:34:59 PM                                                                                                                    
REPRESENTATIVE  KITO related  his understanding  that the  initial                                                              
concept was to  regulate marijuana like alcohol,  but he suggested                                                              
some significant  differences  exist in the  way these  businesses                                                              
operate.     For   example,  marijuana   would  have   production,                                                              
manufacturing,  testing,  and sales  functions,  he said,  stating                                                              
that Alaska  has sales  types of  businesses  in alcohol,  but the                                                              
department  does  not  anticipate   allowing  "consume  in  place"                                                              
businesses.   Currently,  the  state  doesn't have  statutes  that                                                              
govern the four  types of [marijuana] businesses.   He stated that                                                              
the  board  structure  was  meant to  regulate  the  licensing  of                                                              
marijuana;  however, at this  point, the  state doesn't  know much                                                              
about the proposed marijuana businesses.                                                                                        
REPRESENTATIVE  KITO anticipated  that the  board would  initially                                                              
spend  most of  its  time developing  regulations.   He  expressed                                                              
concern over a lack  of expertise identified on the  board for the                                                              
start-up period.   During this initial  period, the board  will be                                                              
generating   significant   new   regulations  that   will   govern                                                              
operations  of businesses,  yet  the  state doesn't  know  exactly                                                              
what it  will need to  regulate.  He  asked whether the  state can                                                              
identify who  should be  on board  and if the  state would  need a                                                              
transition  phase  to  provide   expertise  to  board  members  in                                                              
developing  regulations   that  will   allow  for  the   effective                                                              
operation of the marijuana businesses.                                                                                          
MS.  FRANKLIN   answered  that   under  the  ballot   measure,  AS                                                              
17.38.110 would give  the ABC Board regulatory  authority unless a                                                              
separate board was  created and it does outline the  four types of                                                              
licenses,  including  manufacturing  or  cultivating,  processing,                                                              
retail,  and  testing  facilities.    She  acknowledged  AS  17.38                                                              
provided  a sketchy outline  of the  four types  of licenses.   In                                                              
terms  of composition  of  the  proposed Marijuana  Control  Board                                                              
(MCB)  and  representation   of  the  types  of   businesses,  she                                                              
reported  that   in  Title  4   manufacturing  was  kept   out  of                                                              
representation on  the ABC board,  primarily with the  way alcohol                                                              
regulation developed  over the years as a tiered system.   She was                                                              
unsure on whether  a similar tiered system would  be developed for                                                              
marijuana;  however, the  differences between  the two  substances                                                              
makes it unlikely.   In fact, prohibition has not  been written in                                                              
as an  industry tier.   Theoretically,  the proposed board  member                                                              
industry  representatives in  HB  123 could  be representative  of                                                              
any of the four  types of licensees.  Initially,  it might present                                                              
some  challenges  to  identify  industry  representation  for  the                                                              
board;  however, the  agency  has  not had  a  shortage of  people                                                              
coming  forward who  want  to be  part  of the  board.   Thus  the                                                              
governor  could evaluate  applicants, she  said.   Of course,  the                                                              
difficulty will arise  in finding an experienced  grower since the                                                              
industry is currently  illegal.  However, she has  some confidence                                                              
that  the voters'  will  in passing  the  ballot  measure will  be                                                              
honored and that  people will be able to openly  speak about their                                                              
experiences  in  the industry.    For  example, some  people  have                                                              
already  attested to  having acquired  experience of  40 years  as                                                              
growers  and  these  people  have  appeared  at  local  government                                                              
meetings in the Mat-Su valley, she said.                                                                                        
4:39:53 PM                                                                                                                    
MS. FRANKLIN  suggested that  the board will  be able  to identify                                                              
people in  the short  run who claim  to be  part of the  industry.                                                              
However, the  state will need to  get an industry going  before it                                                              
can  ascertain   this,  although   the  transition   sections  and                                                              
staggered terms  may enable the  governor to appoint  someone into                                                              
shorter term  board positions.   If  it turned  out that  a person                                                              
represented him/herself  as part of the industry, but  did not end                                                              
up having  the necessary  expertise, the  governor could  turn the                                                              
seat  over  to  another  person.    It  may  be  that  people  who                                                              
supported  the   ballot  measure   or  who  participated   in  the                                                              
Coalition for  Responsible Cannabis  Legislation (CRCL)  might not                                                              
necessarily   qualify  as   industry   representatives,  but   the                                                              
governor's selection  process can identify the  necessary business                                                              
background.    She  said  she  has   been  contacted  by  numerous                                                              
businesses  who have  expressed an  interest in  the industry  and                                                              
some  existing businesses  may provide  appropriate experience  to                                                              
fill one of the shorter-term appointments.                                                                                      
4:41:31 PM                                                                                                                    
REPRESENTATIVE KITO  said her response  helped, but  people simply                                                              
having the  desire to serve doesn't  give him confidence  that the                                                              
potential  board   members  will  end  up  having   good  business                                                              
experience.    He  acknowledged  the  need  for  a  public  health                                                              
member, a  public safety  member, a general  public member,  and a                                                              
rural   member.      However,  by   statute   the   two   industry                                                              
representatives  do not need business  experience since  the state                                                              
doesn't have  a marijuana industry  in Alaska.  He  maintained his                                                              
concern that the  board might end up without the  board having the                                                              
expertise  to  develop  regulations  that will  regulate  all  the                                                              
types of businesses dispensing marijuana.                                                                                       
4:42:29 PM                                                                                                                    
CHAIR OLSON assured  members it was important to  spend sufficient                                                              
time on  the bill to  address concerns  and ensure the  regulatory                                                              
board and system was appropriate.                                                                                               
4:42:57 PM                                                                                                                    
CHAIR OLSON opened public testimony on HB 123.                                                                                  
4:43:14 PM                                                                                                                    
JAMES BARRETT  began his  testimony by  stating he was  interested                                                              
in  entry into  the marijuana  industry.   He  offered his  belief                                                              
that  Alaska  has   an  awesome  opportunity  to   establish  this                                                              
industry, recalling  that historically the state  has assisted new                                                              
industries, for  example, the state  helped establish  the fishing                                                              
industry.    A   black  market  once  existed   with  the  fishing                                                              
industry,  just   as  it  currently  exists  with   the  marijuana                                                              
industry.   He suggested  that the  Marijuana Control  Board (MCB)                                                              
members  will  help   bring  expertise,  but  he   emphasized  the                                                              
necessity of  doing it right  the first  time.  He  suggested that                                                              
it  was important  to have  marijuana  controlled separately  from                                                              
alcohol since the  substances are not the same,  although they can                                                              
be similarly  regulated.   He offered  his support  for this  bill                                                              
and  concluded   by  commending   Ms.  Franklin's  knowledge   and                                                              
CHAIR  OLSON agreed  Ms.  Franklin has  been  doing an  incredible                                                              
4:45:17 PM                                                                                                                    
ELLEN  GANLEY,  Member,  Alcoholic  Beverage  Control  Board  (ABC                                                              
Board), Department  of Commerce, Community &  Economic Development                                                              
(DCCED),  stated  that  substantial  discussion  has  occurred  on                                                              
whether it  would be best  to have one board  or two boards.   She                                                              
initially   thought  that   marijuana   should   fall  under   one                                                              
regulatory  board,  but  since   then  she  has  reevaluated  this                                                              
viewpoint,  in particular,  given the  amount of  work that  board                                                              
must  accomplish.   In  addition,  she has  been  involved in  the                                                              
current work of  the ABC Board, which oversees  1,800 licenses, as                                                              
well as during  the two years it  has taken to draft  a rewrite of                                                              
Title 4,  which will require significant  time to implement.   She                                                              
concluded that she believes it makes sense to have two boards.                                                                  
4:46:20 PM                                                                                                                    
KIM KOLE, Coalition  for Responsible Cannabis  Legislation (CRCL),                                                              
who  initially started  the  Anchorage  chapter of  CRCL,  offered                                                              
support  for HB  123,  which would  set  up a  separate  Marijuana                                                              
Control  Board (MCB)  under the  direction of  Ms. Franklin.   She                                                              
suggested that  this structure seemed  to make sense for  a number                                                              
of  reasons, including  reducing  financial  costs  by having  one                                                              
administrator  serve the  Marijuana  Control Board  (MCB) and  the                                                              
Alcoholic  Beverage  Control  Board   (ABC  Board),  and  to  help                                                              
identify  regulations  for  this  industry.   She  said  that  the                                                              
language  allows  up  to  two  board  members  who  represent  the                                                              
cannabis industry  to serve.   She encouraged members  support two                                                              
board  members from  the  industry, including  representatives  of                                                              
cultivators,  processors of non-consumables  such as  concentrates                                                              
and lotions,  processors of consumable  and edible products.   She                                                              
hoped that  ultimately retail stores,  beer gardens or  cafes will                                                              
sell  or serve  marijuana products.    Since the  industry is  son                                                              
bard,  no  one  person  can  know  all  aspects  of  the  cannabis                                                              
industry,  she  said,  which  emphasized  the  need  to  have  two                                                              
industry  representatives  on  the  board.   She  appreciated  the                                                              
importance  of the  business  perspective  and background  on  the                                                              
board;  however, she  argued  that it  wasn't  imperative to  have                                                              
someone with only  a business background since it  was possible to                                                              
have  an  array  of backgrounds  represented  by  people  who  are                                                              
really passionate about this new industry.                                                                                      
4:47:56 PM                                                                                                                    
FRANK   BERARDI,  Chair,   Coalition   for  Responsible   Cannabis                                                              
Legislation (CRCL),  offered the  CRCL's support  for HB 123.   He                                                              
said the  board supported having  a separate autonomous  Marijuana                                                              
Control  Board  (MCB)  housed  under the  same  framework  as  the                                                              
Alcoholic  Beverage Control  Board  (ABC Board),  directed by  Ms.                                                              
Franklin.    In   terms  of  the  vetting  process   for  industry                                                              
representatives, the  coalition believes that the  CRCL membership                                                              
has  extensive business  experience,  noting  that several  people                                                              
have an educational  background in business and  some have already                                                              
completed business  plans for this  venture.  The  coalition would                                                              
like  to see  the  process  be an  open  process that  will  allow                                                              
people  be  vetted for  the  positions.    He said  he  personally                                                              
supported initial  one-year terms  for board  members just  to see                                                              
how "this thing  shakes out."  In closing, he offered  support for                                                              
HB 123.                                                                                                                         
4:49:28 PM                                                                                                                    
GIONO BARRETT asked  to testify in support of HB 123.   He said it                                                              
was  a good  idea  to put  the  regulations in  the  hands of  the                                                              
Alcoholic  Beverage Control  Board (ABC  Board), especially  since                                                              
Ms. Franklin  and her staff  have done a great  job thus far.   He                                                              
stated that he  was registered for medical marijuana  and has been                                                              
a long-time  marijuana user.  He  offered his belief that  the key                                                              
to  the regulation  of the  industry  was education  since it  can                                                              
take  years  to  learn  the  industry.    He  suggested  that  Ms.                                                              
Franklin has  covered a  lot of information  really well,  that he                                                              
has an  interest in  the industry  and has found  her to  be "spot                                                              
on."    In  closing,  he said  he  would  trust  Ms.  Franklin  to                                                              
regulate marijuana properly.                                                                                                    
4:50:34 PM                                                                                                                    
GIRARD   GAUL,  Senior   Spokesman,   Coalition  for   Responsible                                                              
Cannabis  Legislation  (CRCL),  asked  to  support  HB  123.    He                                                              
further supported  having the Marijuana  Control Board (MCB)  as a                                                              
separate  committee  working  alongside   the  Alcoholic  Beverage                                                              
Control  Board  (ABC  Board)  under  Ms.  Franklin.    He  thanked                                                              
members for the  work on this bill and offered his  belief that HB
123 looked great.                                                                                                               
4:51:15 PM                                                                                                                    
BRUCE   SCHULTE,   Public   Relations   Manager,   Coalition   for                                                              
Responsible Cannabis  Legislation (CRCL), testified  in support of                                                              
HB  123.    He   said  that  historically  this   group  has  been                                                              
advocating  for   a  separate   Marijuana  Control   Board  (MCB);                                                              
however, given  the combined constraints  of schedule  and budget,                                                              
he believed  the hybrid board  would be  a terrific solution.   He                                                              
said he  has tremendous faith in  Ms. Franklin's ability  to guide                                                              
both   boards.     He  echoed   Ms.  Kole's   comments  on   board                                                              
representation,  noting  this  bill   would  allow  at  least  two                                                              
members with  experience to  serve on the  board.  He  pointed out                                                              
that the  schedule has  actually begun  on the regulatory  process                                                              
and  the  board  has  until  November  24  to  complete  it.    He                                                              
suggested that this [bill] has become the critical process.                                                                     
4:52:53 PM                                                                                                                    
BRANDON  EMMETT,  Executive Director,  Coalition  for  Responsible                                                              
Cannabis  Legislation (CRCL)  asked to  testify in  support of  HB
123.    He  suggested  that  HB  123  was  a  step  in  the  right                                                              
direction.   As Mr.  Schulte stated,  the CRCL's initial  position                                                              
was to  support a  completely autonomous  Marijuana Control  Board                                                              
(MCB), but  the CRCL now prefers  a hybrid board nested  under the                                                              
Alcoholic  Beverage Control  Board  (ABC Board)  to  help the  MCB                                                              
adopt regulations  and rules in  a timely fashion.   He emphasized                                                              
the importance of  having several board members  with expertise in                                                              
the  marijuana industry.   He  offered his  belief that  marijuana                                                              
industry  board members  will  be unfettered  by  any conflict  of                                                              
interest that  could affect  a board  member directly  involved in                                                              
the alcohol industry.                                                                                                           
4:54:24 PM                                                                                                                    
CHAIR OLSON said he would hold public testimony open on HB 123.                                                                 
[HB 123 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB67 ver W.PDF HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Sponsor Statement.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Fiscal Note-LAW-CIV-03-06-15.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Supporting Documents-Letter CMI Construction.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Opposing Documents-Email John Deere 2-16-15.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Opposing Documents-Letter CNH Industrial 2-25-15.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Opposing Documents-Letter AEM 3-05-15.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Draft Proposed Blank CS ver E.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB67 Sectional Analysis for Draft Proposed Blank CS ver E.pdf HL&C 3/11/2015 3:15:00 PM
HB 67
HB123 Letter from DOA-OAH regarding fiscal note revision.pdf HL&C 3/11/2015 3:15:00 PM
HB 123
HB123 Fiscal Note-DCCED-ABC-03-09-15.pdf HL&C 3/11/2015 3:15:00 PM
HB 123
HB67 Opposing Documents-Email CNH Industrial with Letter 3-10-15.pdf HL&C 3/11/2015 3:15:00 PM
HB 67