Legislature(2017 - 2018)SENATE FINANCE 532

04/07/2017 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 45 EXEMPTION: LICENSING OF CONTRACTORS TELECONFERENCED
Heard & Held
+ SB 78 PERM FUND DIVIDEND CONTRIBUTIONS/LOTTERY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 6 INDUSTRIAL HEMP PRODUCTION TELECONFERENCED
Moved CSSB 6(JUD) Out of Committee
+= HB 16 DRIV. LICENSE REQ;DISABILITY:ID &TRAINING TELECONFERENCED
Moved SCS HB 16(FIN) Out of Committee
SENATE BILL NO. 6                                                                                                             
                                                                                                                                
     "An Act relating to industrial hemp; and relating to                                                                       
     controlled substances."                                                                                                    
                                                                                                                                
9:08:29 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon offered a brief history of previous                                                                          
committee discussions of bill. She listed that available                                                                        
invited testimony.                                                                                                              
                                                                                                                                
9:09:47 AM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop discussed the  fiscal notes. He noted that                                                                    
the four  fiscal notes  were from  the Department  of Public                                                                    
Safety  (DPS),  Department  of   Law  (DOL),  Department  of                                                                    
Commerce,  Community and  Economic Development  (DCCED), and                                                                    
the Department  of Natural Resources  (DNR). He  pointed out                                                                    
that there would  be one note DNR with fiscal  impact of $25                                                                    
thousand  for  an  RSA  with   LAW  to  assist  in  drafting                                                                    
regulations.                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  observed the  lack of  support documents                                                                    
to justify the need for  $25,000. She read the analysis from                                                                    
FN9  and  reiterated  that  the note  was  short  on  backup                                                                    
analysis.                                                                                                                       
                                                                                                                                
9:11:35 AM                                                                                                                    
                                                                                                                                
ROB   CARTER,   DIVISION   OF   AGRICULTURE,   PALMER   (via                                                                    
teleconference),  explained that  the estimated  $25,000 had                                                                    
been determined  by LAW.  He said that  DNR would  draft the                                                                    
regulations, which  would then be interpreted  and vetted by                                                                    
LAW. He relayed that the money  would go to LAW and that any                                                                    
further questions should be directed to that department.                                                                        
                                                                                                                                
9:12:47 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked whether there was  anyone from LAW                                                                    
available to speak to the fiscal note.                                                                                          
                                                                                                                                
Co-Chair MacKinnon proposed to zero-out the fiscal note.                                                                        
                                                                                                                                
9:13:12 AM                                                                                                                    
                                                                                                                                
Senator Micciche  asked whether  there was  a way  to change                                                                    
the note to receipt authority, at a lower number.                                                                               
                                                                                                                                
Co-Chair  MacKinnon   stated  that  $10,000   in  designated                                                                    
general fund receipts could be more appropriate proposal.                                                                       
                                                                                                                                
Senator Micciche believed that there  would be some cost and                                                                    
that $10,000 would be appropriate.                                                                                              
                                                                                                                                
Co-Chair  MacKinnon   agreed  with  Senator   Micciche.  She                                                                    
thought that zeroing  out the note altogether  might get the                                                                    
department's  attention to  attend  future  hearings on  the                                                                    
bill.                                                                                                                           
                                                                                                                                
9:14:13 AM                                                                                                                    
                                                                                                                                
Senator von Imhof  said that when the bill was  heard in the                                                                    
Senate Resources  Committee, there had  bee a zero  DNR note                                                                    
attached. She understood that the  $25,000 had been recently                                                                    
added.                                                                                                                          
                                                                                                                                
BUDDY WHITT, STAFF, SENATOR SHELLEY  HUGHES, answered in the                                                                    
affirmative.  He stated  that  the latest  iteration of  the                                                                    
bill,  out of  Senate Judiciary  Committee, changed  wording                                                                    
from "may" to "shall"  establish regulations, which resulted                                                                    
in the new fiscal note.                                                                                                         
                                                                                                                                
Senator von  Imhof relayed that the  earlier conversation in                                                                    
committee had reflected that the  change in regulation could                                                                    
be absorbed by the department.                                                                                                  
                                                                                                                                
Mr.  Whitt understood  that there  had been  some additional                                                                    
regulatory  stipulations added  to  the bill  in the  Senate                                                                    
Judiciary Committee.  He relayed  that changing  the wording                                                                    
from "may"  to "shall"  establish regulations,  had resulted                                                                    
in the new note.                                                                                                                
                                                                                                                                
9:16:03 AM                                                                                                                    
                                                                                                                                
Senator von Imhof wondered about  the possible impact in one                                                                    
year's  time if  the committee  changed the  fiscal note  to                                                                    
zero and then revisited the issue at a later date.                                                                              
                                                                                                                                
Co-Chair MacKinnon  explained the path that  the fiscal note                                                                    
would travel  through the bill  hearing process.  She shared                                                                    
that LAW was online to defend the note.                                                                                         
                                                                                                                                
9:16:59 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Bishop   estimated   that   the   fiscal   note                                                                    
represented  approximately 150  work hours  by LAW  to draft                                                                    
the regulations.                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon  reiterated  that  there  was  not  much                                                                    
backup available to justify the $25,000 note.                                                                                   
                                                                                                                                
9:17:52 AM                                                                                                                    
                                                                                                                                
JOAN   WILSON,    DEPARTMENT   OF   LAW,    ANCHORAGE   (via                                                                    
teleconference), stated  that the  issue of  separating hemp                                                                    
from  marijuana  and  the issues  that  stemmed  from  both,                                                                    
criminal and  civil, were new territory  for the department.                                                                    
She said  that a pilot  program would be established  by the                                                                    
bill, also  the protocol on  how seeds and growers  would be                                                                    
approved. She added  that a way to monitor  sees and growers                                                                    
and determining  how the Department of  Agriculture would be                                                                    
involved  in the  processes was  unchartered territory.  She                                                                    
shared that the fiscal note  reflected the past cost for the                                                                    
Department  of  Natural   Resources  (DNR)  for  legislative                                                                    
regulatory projects. She  explained that it had  been a long                                                                    
time  since  DNR had  visited  these  past costs,  that  the                                                                    
estimate they  gave had not  been helpful. She  relayed that                                                                    
LAW had looked back                                                                                                             
                                                                                                                                
9:20:42 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop asked  how  many  other states  practiced                                                                    
industrial hemp production.                                                                                                     
                                                                                                                                
Mr. Whitt recalled  that there were 31 states  that had some                                                                    
sort of industrial hemp program.                                                                                                
                                                                                                                                
Vice-Chair  Bishop suggested  that  the department  research                                                                    
what was done in other states.                                                                                                  
                                                                                                                                
9:21:26 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  asked   whether  there  were  resources                                                                    
available  to  LAW  to  assist in  the  development  of  the                                                                    
regulations.                                                                                                                    
                                                                                                                                
Ms.  Wilson  mentioned   Colorado,  Kentucky,  Vermont,  and                                                                    
Maine. She relayed that she  was unaware whether the laws in                                                                    
those states reflected what Alaska was planning.                                                                                
                                                                                                                                
9:22:35 AM                                                                                                                    
                                                                                                                                
Mr.  Whitt stated  that he  would like  to double  check his                                                                    
previous statement that 31 other  states had industrial hemp                                                                    
programs.                                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon  solicited  conversation on  the  fiscal                                                                    
note. She  referred to public  testimony that  had suggested                                                                    
that other states had not been  able to pay for the programs                                                                    
with program receipts. She  noted that supplemental requests                                                                    
were  not ideal  and  that the  department  should submit  a                                                                    
fiscal note that reflected the  maximum amount of money that                                                                    
could be spent to implement any program going forward.                                                                          
                                                                                                                                
9:24:33 AM                                                                                                                    
                                                                                                                                
Senator Micciche  stated that he  was amendable  to changing                                                                    
the fiscal  note to $10,000  in DGF.  He did not  think that                                                                    
the state could  afford to fund the  regulations. He thought                                                                    
that  the  regulations for  marijuana  could  be applied  to                                                                    
industrial hemp.                                                                                                                
                                                                                                                                
9:25:00 AM                                                                                                                    
                                                                                                                                
Senator von Imhof expressed agreement  with the previous two                                                                    
speakers.  She  added  that industrial  hemp  could  provide                                                                    
economic  opportunity  to  the  state  and  that  a  $10,000                                                                    
investment seemed reasonable.                                                                                                   
                                                                                                                                
9:25:43 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:28:16 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   MacKinnon   offered  further   clarification   on                                                                    
changing the  fiscal note. She  amended the note  to reflect                                                                    
the $10,000 from DGF.                                                                                                           
                                                                                                                                
9:29:19 AM                                                                                                                    
                                                                                                                                
Mr. Whitt clarified that 30  states had legalized industrial                                                                    
hemp and 16 states that had set up pilot programs.                                                                              
                                                                                                                                
9:30:27 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:31:28 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon clarified that the  DGF code was 1005 and                                                                    
that  a new  fiscal  note  with appropriate  classifications                                                                    
would be forthcoming.                                                                                                           
                                                                                                                                
Vice-Chair  Bishop  MOVED  to  report  CSSB  6(JUD)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  6(JUD)   was  REPORTED  out  of   committee  with  "no                                                                    
recommendation" and with  one new fiscal impact  note by the                                                                    
Senate  Finance  Committee  for the  Department  of  Natural                                                                    
Resources; and  with four  previously published  zero fiscal                                                                    
notes: FN5(DPS), FN6(LAW), FN7(CED), and FN8(DPS).                                                                              
                                                                                                                                
9:32:17 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:34:45 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB 45 - Sponsor Statement.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45 Public Testimony Porter.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45- Sectional Summary.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45 Snodgrass Testimony.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45 Support Letter SBS.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45- Support Letters.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
Sectional Summary of SB78 (2).pdf SFIN 4/7/2017 9:00:00 AM
SB 78
Sponsor Statement Alaska Permanent Fund Education Lottery - final.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
Summery of Changes by CS SB78.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc. Dividend Summary.PDF SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc. Gaming report.PDF SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc. Pick,Click,Give.PDF SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc. Statutes Reference SB78.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc.Alaska Permanent Fund Education Lotter2.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting DOC.Games of Chance listed in Section.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc.SB78 Final chart.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
SB78 Supporting doc PFD charts.PDF SFIN 4/7/2017 9:00:00 AM
SB 78
Supporting Doc.Statutes Reference SB78.pdf SFIN 4/7/2017 9:00:00 AM
SB 78
HB 16 Work Draft version J.pdf SFIN 4/7/2017 9:00:00 AM
HB 16
HB 16 Work Draft version J Summary of Changes.pdf SFIN 4/7/2017 9:00:00 AM
HB 16
SB 45 - Sponsor Statement Version D.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45 Testimony Dalton.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45 Wrok Draft CS SB 45 FIN v. O.pdf SFIN 4/7/2017 9:00:00 AM
SB 45
SB 45 CS SB 45 FIN v. O Explanation.pdf SFIN 4/7/2017 9:00:00 AM
SB 45