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Committee adopts two amendments to hemp bill, reports HB 325 out as amended
Summary
HB 325, brought by Representative McCabe (staff presented), modernizes industrial hemp rules and explicitly excludes compliant industrial hemp from the marijuana excise tax. Two amendments were adopted — one clarifying the tax exclusion and another holding prior producers harmless for 2024–2025 Department of Natural Resources actions — and the committee reported the bill out as amended.
House Bill 325, a bill to modernize Alaska’s industrial hemp framework, was presented to the House Labor and Commerce Committee by staff to Representative Kevin McCabe.
Ellie Shava Almeida, staff for Representative McCabe, told the committee HB 325 would make it easier and more affordable to grow, process and sell industrial hemp, which she said could create jobs and expand agricultural opportunities in rural Alaska. "This bill modernizes and provides tax relief by making it easier and more affordable to grow, process, and sell industrial hemp," Almeida said.
Representative Kerrick introduced two amendments. Amendment 1 clarifies that compliant industrial hemp (as defined in the bill) is not subject to the marijuana excise tax; Almeida called that a "friendly amendment" and said it removes any gray area about taxation. Amendment 2 provides that producers who were enrolled prior to regulatory changes that temporarily rendered industrial hemp unlawful during 2024–2025 are held harmless; the amendment was described as ensuring legitimate farms are not penalized retroactively.
Both amendments were adopted after brief discussion and agreement from the sponsor’s staff. Representative Kerrick then moved to report HB 325 as amended out of committee with individual recommendations; with no objection, HB 325 as amended was reported out with accompanying fiscal notes.
The committee recessed briefly to complete paperwork and then moved to the next agenda item.
The committee record shows two adopted amendments, clarifications about taxation and a retroactive‑protection clause for prior producers; the committee voted to report HB 325 as amended to the next stage.
