SB 62: "An Act relating to the regulation of marijuana, marijuana testing, marijuana products, and marijuana accessories; relating to the licensing of marijuana retailers, producers, processors, boutique producers, brokers, and home growers; relating to taxation of marijuana; and providing for an effective date."
00 SENATE BILL NO. 62 01 "An Act relating to the regulation of marijuana, marijuana testing, marijuana products, 02 and marijuana accessories; relating to the licensing of marijuana retailers, producers, 03 processors, boutique producers, brokers, and home growers; relating to taxation of 04 marijuana; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 03.05.011 is amended by adding a new subsection to read: 07 (f) The commissioner or the commissioner's designee shall inspect and certify 08 marijuana testing facilities. 09 * Sec. 2. AS 17.38.060 is amended to read: 10 Sec. 17.38.060. Marijuana accessories authorized. It 11 [NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IT] is lawful and is 12 [SHALL] not [BE] an offense under Alaska law or the law of any political subdivision 13 of Alaska or [BE] a basis for seizure or forfeiture of assets under Alaska law for 14 persons 21 years of age or older to manufacture, possess, or purchase marijuana
01 accessories, or to distribute or sell marijuana accessories to a person who is 21 years 02 of age or older. 03 * Sec. 3. AS 17.38 is amended by adding a new section to read: 04 Sec. 17.38.075. Limitations on advertising. A person may not advertise or 05 market marijuana, a marijuana product, or a marijuana accessory in a manner enticing 06 to minors [CHILDREN]. 07 * Sec. 4. AS 17.38.090 is amended to read: 08 Sec. 17.38.090. Rulemaking. (a) Not later than nine months after February 24, 09 2015, the board shall adopt regulations necessary for implementation of this chapter. 10 The [SUCH] regulations may [SHALL] not prohibit the operation of marijuana 11 establishments, either expressly or through regulations that make their operation 12 unreasonably impracticable. The [SUCH] regulations must [SHALL] include 13 (1) procedures for the issuance, renewal, suspension, and revocation of 14 a license [REGISTRATION] to operate a marijuana establishment; the [, WITH 15 SUCH] procedures are subject to all requirements of AS 44.62 (Administrative 16 Procedure Act); 17 (2) a schedule of application, license [REGISTRATION], and renewal 18 fees, provided, application fees may [SHALL] not exceed $5,000, with this upper 19 limit adjusted annually for inflation, unless the board determines a greater fee is 20 necessary to carry out its responsibilities under this chapter; 21 (3) qualifications for licensure [REGISTRATION] that are directly and 22 demonstrably related to the operation of a marijuana establishment; 23 (4) security requirements for marijuana establishments, including for 24 the transportation of marijuana by marijuana establishments; 25 (5) requirements to prevent the sale or diversion of marijuana and 26 marijuana products to persons under [THE AGE OF] 21 years of age; 27 (6) labeling requirements for marijuana and marijuana products sold or 28 distributed by a marijuana establishment; 29 (7) health and safety regulations and standards for the manufacture of 30 marijuana products and the cultivation of marijuana; 31 (8) subject to the limitations on advertising and marketing in
01 AS 17.38.075, reasonable restrictions on the advertising and display of marijuana and 02 marijuana products; and 03 (9) civil penalties for the failure to comply with regulations made 04 under [PURSUANT TO] this chapter. 05 (b) To [IN ORDER TO] ensure that individual privacy is protected, the board 06 may [SHALL] not require a consumer to provide a [RETAIL] marijuana retailer 07 licensee [STORE] with personal information other than government-issued 08 identification to determine the consumer's age, and a [RETAIL] marijuana retailer 09 licensee may [STORE SHALL] not be required to acquire and record personal 10 information about consumers. 11 * Sec. 5. AS 17.38.090 is amended by adding new subsections to read: 12 (c) The board shall adopt regulations regarding the packaging and labeling of 13 marijuana and marijuana products that are sold by a marijuana retailer. The regulations 14 must provide that 15 (1) marijuana and marijuana products, including edible marijuana 16 products, may not leave the licensed premises of a marijuana retail store unless 17 contained in child-proof containers or packages; 18 (2) the container or package must be clearly labeled with the contents 19 of the container or package; a label may not be marked in a manner or include pictures 20 or other representations that might be enticing to minors; and 21 (3) the potency and certification of safety of each retail marijuana 22 product, including edible marijuana products, are on the container or package. 23 (d) The board shall require that individual doses of edible marijuana contain 24 10 milligrams or less of tetrahydrocannabinol and each dose be individually wrapped. 25 The board shall allow for the retail sale of edible marijuana packages that contain 26 multiple doses. 27 (e) The board shall adopt regulations regarding the potency, safety, and 28 medical characteristics of medical marijuana. 29 * Sec. 6. AS 17.38.100(a) is amended to read: 30 (a) Each application or renewal application for a license [REGISTRATION] to 31 operate a marijuana establishment shall be submitted to the board. A renewal
01 application may be submitted up to 90 days before [PRIOR TO] the expiration of the 02 marijuana establishment's license [REGISTRATION]. 03 * Sec. 7. AS 17.38.100(c) is amended to read: 04 (c) Upon receiving an application or renewal application for a marijuana 05 establishment, the board shall immediately forward a copy of each application [AND 06 HALF OF THE REGISTRATION APPLICATION FEE] to the local regulatory 07 authority for the municipality [LOCAL GOVERNMENT] in which the applicant 08 desires to operate the marijuana establishment, unless the municipality [LOCAL 09 GOVERNMENT] has not designated a local regulatory authority under [PURSUANT 10 TO] AS 17.38.110(c). The board shall refund money collected under 11 AS 17.38.110(e) to a municipality for which the money was collected. 12 * Sec. 8. AS 17.38.100(d) is amended to read: 13 (d) Within [45 TO] 90 days after receiving an application or renewal 14 application, the board shall issue an annual license [REGISTRATION] to the 15 applicant unless the board finds the applicant is not in compliance with regulations 16 enacted under [PURSUANT TO] AS 17.38.090 or the board is notified by the 17 relevant municipality [LOCAL GOVERNMENT] that the applicant is not in 18 compliance with ordinances and regulations made under [PURSUANT TO] 19 AS 17.38.110 and in effect at the time of application. 20 * Sec. 9. AS 17.38.100(e) is amended to read: 21 (e) If a municipality [LOCAL GOVERNMENT] has enacted a numerical 22 limit on the number of marijuana establishments and a greater number of applicants 23 seek licensure [REGISTRATIONS], the board shall solicit and consider input from 24 the local regulatory authority as to the municipality's [LOCAL GOVERNMENT'S] 25 preference or preferences for licensure [REGISTRATION]. 26 * Sec. 10. AS 17.38.100(g) is amended to read: 27 (g) Every marijuana establishment license must [REGISTRATION SHALL] 28 specify the location where the marijuana establishment will operate. A separate 29 license is [REGISTRATION SHALL BE] required for each location at which a 30 marijuana establishment operates. The board may only license a marijuana 31 establishment that is located in this state.
01 * Sec. 11. AS 17.38.110(a) is amended to read: 02 (a) A municipality [LOCAL GOVERNMENT] may prohibit the operation of 03 a marijuana producer [CULTIVATION FACILITIES], marijuana processor 04 [PRODUCT MANUFACTURING FACILITIES], marijuana testing facility 05 [FACILITIES], or [RETAIL] marijuana retailer [STORES] through the enactment of 06 an ordinance or by a voter initiative. 07 * Sec. 12. AS 17.38.110(b) is amended to read: 08 (b) A municipality [LOCAL GOVERNMENT] may enact ordinances or 09 regulations not in conflict with this chapter or with regulations enacted under 10 [PURSUANT TO] this chapter, governing the time, place, manner, and number of 11 marijuana establishment operations. A municipality [LOCAL GOVERNMENT] may 12 establish civil penalties for violation of an ordinance or regulation governing the time, 13 place, and manner of a marijuana establishment that may operate in the municipality 14 [SUCH LOCAL GOVERNMENT]. 15 * Sec. 13. AS 17.38.110(c) is amended to read: 16 (c) A municipality [LOCAL GOVERNMENT] may designate a local 17 regulatory authority that is responsible for processing applications submitted for a 18 license [REGISTRATION] to operate a marijuana establishment within the 19 boundaries of the municipality [LOCAL GOVERNMENT]. The municipality 20 [LOCAL GOVERNMENT] may provide that the local regulatory authority may issue 21 licenses if [SUCH REGISTRATIONS SHOULD] the issuance by the municipality 22 becomes [LOCAL GOVERNMENT BECOME] necessary because of a failure by the 23 board to adopt regulations under [PURSUANT TO] AS 17.38.090 or to accept or 24 process applications in accordance with AS 17.38.100. 25 * Sec. 14. AS 17.38.110(d) is amended to read: 26 (d) A municipality [LOCAL GOVERNMENT] may establish procedures for 27 the issuance, suspension, and revocation of a license [REGISTRATION] issued by the 28 municipality [LOCAL GOVERNMENT] in accordance with (f) [OF THIS 29 SECTION] or (g) of this section. These procedures shall be subject to all requirements 30 of AS 44.62 (Administrative Procedure Act). 31 * Sec. 15. AS 17.38.110(e) is amended to read:
01 (e) A municipality shall [LOCAL GOVERNMENT MAY] establish a 02 schedule of licensing, renewal, [ANNUAL OPERATING, REGISTRATION], and 03 application fees for marijuana establishments in accordance with AS 17.38.090(a)(2). 04 The fees may not exceed the actual costs of processing the application to the point 05 of issuance or denial [, PROVIDED, THE APPLICATION FEE SHALL ONLY BE 06 DUE IF AN APPLICATION IS SUBMITTED TO A LOCAL GOVERNMENT IN 07 ACCORDANCE WITH (f) OF THIS SECTION AND A REGISTRATION FEE 08 SHALL ONLY BE DUE IF A REGISTRATION IS ISSUED BY A LOCAL 09 GOVERNMENT IN ACCORDANCE WITH (f) OF THIS SECTION OR (g) OF 10 THIS SECTION]. 11 * Sec. 16. AS 17.38.110(f) is amended to read: 12 (f) If the board does not issue a license [REGISTRATION] to an applicant 13 within 90 days after [OF] receipt of the application filed in accordance with 14 AS 17.38.100 and does not notify the applicant of the specific, permissible reason for 15 its denial, in writing and within that [SUCH] time period, or if the board has adopted 16 regulations under [PURSUANT TO] AS 17.38.090 and has accepted applications 17 under [PURSUANT TO] AS 17.38.100 but has not issued any licenses 18 [REGISTRATIONS BY 15 MONTHS] after May 24, 2016 [THE EFFECTIVE 19 DATE OF THIS ACT], the applicant may resubmit its application directly to the local 20 regulatory authority, under [PURSUANT TO] (c) of this section, and the local 21 regulatory authority may issue an annual license [REGISTRATION] to the applicant. 22 If an application is submitted to a local regulatory authority under this subsection, the 23 board shall refund [FORWARD] to the local regulatory authority the application fee 24 paid by the applicant to the board upon request by the local regulatory authority. 25 * Sec. 17. AS 17.38.110(g) is amended to read: 26 (g) If the board does not adopt regulations required by AS 17.38.090, an 27 applicant may submit an application directly to a local regulatory authority [AFTER 28 ONE YEAR] after February 24, 2016  and the local regulatory authority may 29 issue an annual license [REGISTRATION] to the applicant. 30 * Sec. 18. AS 17.38.110(h) is amended to read: 31 (h) A local regulatory authority issuing a license [REGISTRATION] to an
01 applicant shall do so within 90 days after [OF] receipt of the submitted or resubmitted 02 application unless the local regulatory authority finds and notifies the applicant that 03 the applicant is not in compliance with ordinances and regulations made under 04 [PURSUANT TO] (b) of this section in effect at the time the application is submitted 05 to the local regulatory authority. The municipality [LOCAL GOVERNMENT] shall 06 notify the board if an annual license [REGISTRATION] has been issued to the 07 applicant. 08 * Sec. 19. AS 17.38.110(i) is amended to read: 09 (i) A license [REGISTRATION] issued by a municipality [LOCAL 10 GOVERNMENT] in accordance with (f) [OF THIS SECTION] or (g) of this section 11 shall have the same force and effect as a license [REGISTRATION] issued by the 12 board in accordance with AS 17.38.100. The holder of the license is [SUCH 13 REGISTRATION SHALL] not [BE] subject to regulation or enforcement by the board 14 during the term of that license [REGISTRATION]. 15 * Sec. 20. AS 17.38.110(j) is amended to read: 16 (j) A subsequent or renewed license [REGISTRATION] may be issued under 17 (f) of this section on an annual basis only upon resubmission to the municipality 18 [LOCAL GOVERNMENT] of a new application submitted to the board under 19 [PURSUANT TO] AS 17.38.100. 20 * Sec. 21. AS 17.38.110(k) is amended to read: 21 (k) A subsequent or renewed license [REGISTRATION] may be issued under 22 (g) of this section on an annual basis if the board has not adopted regulations required 23 by AS 17.38.090 at least 90 days before [PRIOR TO] the date on [UPON] which the 24 [SUCH] subsequent or renewed license [REGISTRATION] would be effective or if 25 the board has adopted regulations under [PURSUANT TO] AS 17.38.090 but has not, 26 at least 90 days after the adoption of the [SUCH] regulations, issued licenses under 27 [REGISTRATIONS PURSUANT TO] AS 17.38.100. 28 * Sec. 22. AS 17.38 is amended by adding new sections to read: 29 Sec. 17.38.200. Types of licenses. Licenses issued under this chapter are as 30 follows: 31 (1) marijuana producer license;
01 (2) marijuana processor license; 02 (3) marijuana retailer license; 03 (4) marijuana boutique producer license; 04 (5) marijuana broker license; and 05 (6) marijuana home grower license. 06 Sec. 17.38.210. Marijuana producer license. (a) A marijuana producer 07 license authorizes the holder to 08 (1) grow marijuana on licensed premises located in the state; 09 (2) sell marijuana grown on the licensed premises only to a marijuana 10 processor or a marijuana retailer. 11 (b) The annual license fee for a marijuana producer license shall be determined 12 by the board in accordance with AS 17.38.090(a)(2). 13 Sec. 17.38.220. Marijuana processor license. (a) A marijuana processor 14 license authorizes the holder to 15 (1) purchase marijuana from a marijuana producer or marijuana 16 processor; 17 (2) refine, process, cook, manufacture, develop, label, and package 18 marijuana and marijuana products; 19 (3) perform solvent-based extractions on marijuana; and 20 (4) sell marijuana only to a marijuana processor or marijuana retailer. 21 (b) The annual fee for a marijuana processor license shall be determined by the 22 board in accordance with AS 17.38.090(a)(2). 23 Sec. 17.38.230. Marijuana retailer license. (a) A marijuana retailer license 24 authorizes the holder to sell up to one ounce of marijuana a day to an individual on the 25 licensed premises for consumption off the premises. A marijuana retailer may only 26 purchase marijuana from a marijuana producer or a marijuana processor. 27 (b) A license may be issued under this section only if the applicant does not 28 hold a license or permit issued under AS 04. 29 (c) A marijuana retailer may not 30 (1) sell, offer for sale, give, furnish, or deliver marijuana or marijuana 31 products on the licensed premises between the hours of 12 midnight and 8:00 a.m.
01 each day; 02 (2) consume marijuana or marijuana products on the licensed premises 03 or permit a person to consume marijuana or marijuana products on the licensed 04 premises; 05 (3) offer or deliver, as a marketing device to the general public, free 06 marijuana or marijuana products to a patron; 07 (4) sell marijuana to a person licensed under this chapter. 08 (d) The annual fee for a marijuana retailer license shall be determined by the 09 board in accordance with AS 17.38.090(a)(2). 10 Sec. 17.38.240. Marijuana testing facilities. A marijuana testing facility may 11 not test, analyze, or certify marijuana unless the facility is certified by the Department 12 of Environmental Conservation. 13 Sec. 17.38.250. Marijuana boutique producer license. (a) A marijuana 14 boutique producer license authorizes the holder to 15 (1) grow not more than 50 marijuana plants on licensed premises 16 located in the state; and 17 (2) sell the marijuana grown on the licensed premises to a marijuana 18 broker. 19 (b) The annual fee for a marijuana boutique producer license shall be 20 determined by the board in accordance with AS 17.38.090(a)(2). 21 Sec. 17.38.260. Marijuana broker license. (a) A marijuana broker license 22 authorizes the holder to 23 (1) purchase marijuana and marijuana products from a marijuana 24 processor, marijuana boutique producer, or marijuana home grower; and 25 (2) sell marijuana and marijuana products to a marijuana retailer or 26 marijuana processor. 27 (b) The annual fee for a marijuana broker license shall be determined by the 28 board in accordance with AS 17.38.090(a)(2). 29 Sec. 17.38.270. Marijuana home grower license. (a) A marijuana home 30 grower license authorizes the holder to sell to a marijuana broker any amount of 31 marijuana produced from plants legally owned by the holder.
01 (b) The annual fee for a marijuana home grower license shall be determined by 02 the board in accordance with AS 17.38.090(a)(2). 03 Sec. 17.38.280. Integrated licenses. (a) The board may issue a marijuana 04 producer, marijuana processor, and marijuana retailer license to one person. 05 (b) The board may issue a marijuana producer and marijuana processor license 06 to one person. A person issued an integrated marijuana producer and marijuana 07 processor license may not grow or process marijuana on more than one licensed 08 premises. 09 (c) The board may charge a higher annual fee for an integrated license. 10 Sec. 17.38.290. Application for new license. (a) An applicant for a new 11 license shall file with the director a written application on a form approved by the 12 board, signed and sworn to by the applicant. If the applicant is a corporation, the 13 application shall be executed by the authorized officers of the corporation. If the 14 applicant is a partnership, including a limited partnership, the application shall be 15 executed by an authorized general partner. The application must include 16 (1) the name and address of the applicant; 17 (2) the type of license desired; 18 (3) a description of the premises for which the license is desired, giving 19 the address by street and number, or other information, so that the location of the 20 premises can be definitely determined; 21 (4) the application fee; 22 (5) any other information required by the board by regulation. 23 (b) A corporation applying for a license shall provide the names and addresses 24 of the president, vice-president, secretary, managing officer, and all stockholders who 25 own 10 percent or more of the stock in the corporation, together with any other 26 information required by the board. 27 (c) An applicant for a new license must include with the application proof that 28 notice required by AS 17.38.340 has been given. 29 (d) A partnership, including a limited partnership, that applies for a license 30 shall provide information required by the board including the names and addresses of 31 all general partners and all partners with an interest of 10 percent or more.
01 (e) A limited liability organization that applies for a license shall provide 02 information required by the board, including the names and addresses of all members 03 with an ownership interest of 10 percent or more and the names and addresses of all 04 managers. 05 Sec. 17.38.300. Application for renewal of license. (a) An application for 06 renewal of a license must include 07 (1) the information required for a new license under AS 17.38.290 08 except that proof of notice under AS 17.38.340 is not required; and 09 (2) a list of all convictions of the applicant of violations of this chapter, 10 or a regulation adopted under this chapter, that occurred in the preceding two calendar 11 years. 12 (b) A license shall be renewed for a qualified applicant as follows: 13 (1) on or before November 1, the director shall mail a renewal 14 application to each licensee; the application shall be mailed to the licensee at the 15 licensed premises or at the last known mailing address furnished by the licensee; 16 (2) the licensee shall submit the completed renewal application and the 17 license fee to the director before January 1; 18 (3) a renewal application filed after December 31 is delinquent and 19 must be accompanied by a $500 penalty fee; 20 (4) if December 31 falls on a weekend or a state holiday, the deadline is 21 extended to the first business day following December 31. 22 Sec. 17.38.310. Application for transfer of a license to another person. (a) 23 An application for transfer of a current, valid license to another person must contain 24 the same information about the transferee as is required of an applicant for a new 25 license under AS 17.38.290 and must include other information required by the board. 26 (b) An application for the transfer of a license to another person must be 27 accompanied by a statement, under oath, executed by the transferor, listing all debts of 28 the business and all taxes due by the business. The board shall promptly inform each 29 listed creditor of the application and the amount shown as owed to that creditor. 30 (c) A person may not charge another person more than the cost of the license 31 for the calendar year to transfer a license.
01 Sec. 17.38.320. Application for transfer of license location. An application 02 for a transfer of a license to a new location must contain the information required by 03 the board and must be accompanied by proof that the notice required in AS 17.38.340 04 has been given before a license may be transferred. 05 Sec. 17.38.330. Criminal justice information and records. (a) An applicant 06 for the issuance or transfer of a license under this chapter shall submit to the board, 07 with the application, the applicant's fingerprints and the fees required by the 08 Department of Public Safety under AS 12.62.160 for criminal justice information and 09 a national criminal history record check. The board may require an applicant for 10 renewal of a license under this chapter to submit fingerprints and pay fees as required 11 by this subsection. The board shall submit the fingerprints to the Department of Public 12 Safety to obtain a report of criminal justice information under AS 12.62 and a national 13 criminal history record check under AS 12.62.400. The Department of Public Safety 14 may submit the fingerprints to the Federal Bureau of Investigation for a national 15 criminal history record check. The board may use the information obtained under this 16 section in its determination of an applicant's qualification for issuance, transfer, or 17 renewal of a license. 18 (b) In this section, 19 (1) "applicant" means all individuals whose names and addresses are 20 required to be provided with an application for a new license under AS 17.38.290; 21 (2) "criminal justice information" has the meaning given in 22 AS 12.62.900. 23 Sec. 17.38.340. Notice of application. (a) Before a new license is issued, or 24 transfer of location or transfer of a license to another person is approved, the applicant 25 shall post a copy of the application for 10 days at the location of the proposed licensed 26 premises and at any additional locations designated by the board. The board may 27 require the applicant (1) to provide a copy of the application to newspapers and radio 28 and television stations for public service announcement, or (2) to provide paid notice 29 of the application once each week for three successive weeks in a newspaper or by 30 radio. The notice required in this subsection must be in more than one language when 31 the board decides it is necessary.
01 (b) Upon receiving an application for the issuance, renewal, relocation, or 02 transfer of ownership of a license for premises or proposed premises that are located 03 within one-half mile of the boundary of a community council established by municipal 04 charter or ordinance, the board shall 05 (1) immediately provide written notice of the application to 06 (A) the community council; and 07 (B) any nonprofit community organization that has requested 08 notification in writing; and 09 (2) at least 10 days before the date set for board action on the 10 application, provide written notice of the proposed action and the time and place for a 11 hearing to 12 (A) the community council; and 13 (B) any nonprofit community organization that has requested 14 notification in writing. 15 Sec. 17.38.350. Denial of new licenses. The board shall deny an application 16 requesting issuance of a new license if 17 (1) the board finds, after review of all relevant information, that 18 issuance of the license would not be in the best interests of the public; 19 (2) issuance of the license is prohibited by AS 17.38.410, relating to 20 location of premises near churches, schools, and correctional facilities; 21 (3) the application has not been completed as required under 22 AS 17.38.290; 23 (4) issuance of the license would violate the restrictions pertaining to 24 the particular license imposed under this chapter; 25 (5) the requirements of AS 17.38.420 - 17.38.440 relating to zoning, 26 ownership and location of the license, and the identity and financing of a licensee have 27 not been met; or 28 (6) the application contains false statements of material fact. 29 Sec. 17.38.360. Denial of license renewal. (a) The board shall deny an 30 application requesting renewal of a license if 31 (1) the board finds, after review of all relevant information, that
01 renewal of the license would not be in the best interests of the public; 02 (2) the license has been revoked for any cause; 03 (3) the applicant has not operated the licensed premises for at least 30 04 eight-hour days during each of the two preceding calendar years, unless the board 05 determines that the licensed premises are under construction or cannot be operated 06 through no fault of the applicant; 07 (4) the requirements of AS 17.38.420 - 17.38.440 relating to zoning, 08 ownership and location of the license, and the identity and financing of a licensee have 09 not been met; 10 (5) renewal of the license would violate the restrictions pertaining to 11 the particular license under this chapter or the license has been operated in violation of 12 a condition or restriction imposed by the board; 13 (6) the application has not been completed in accordance with 14 AS 17.38.300; or 15 (7) the application contains false statements of material facts. 16 (b) The board may deny an application for renewal of a license if the applicant 17 is delinquent in the payment of taxes if the tax liability arises in whole or in part out of 18 the licensed business. 19 Sec. 17.38.370. Denial of request for relocation. The board shall deny an 20 application requesting approval for the relocation of licensed premises if 21 (1) the board finds, after review of all relevant information, that 22 relocation of the license would not be in the best interests of the public; 23 (2) the license would be relocated out of the established village, 24 incorporated city, or unified municipality within which the license is located; 25 (3) transfer of ownership is to be made concurrently with the relocation 26 of the licensed premises and a ground for denial of the transfer of ownership under 27 AS 17.38.380 is presented; 28 (4) the application has not been completed in accordance with 29 AS 17.38.320; 30 (5) relocation of the license would result in violation of a local zoning 31 law; or
01 (6) relocation of the license would violate the restrictions pertaining to 02 the particular license imposed by this chapter. 03 Sec. 17.38.380. Denial of transfer of a license to another person. The board 04 shall deny an application requesting approval of a transfer of a license to another 05 person under this chapter if 06 (1) the board finds, after review of all relevant information, that transfer 07 of a license to another person would not be in the best interests of the public; 08 (2) the application has not been completed in accordance with 09 AS 17.38.310; 10 (3) the application contains false statements of material fact; 11 (4) the transferor has not paid all debts or taxes arising from the 12 conduct of the business licensed under this chapter unless 13 (A) the transferor gives security for the payment of the debts or 14 taxes satisfactory to the creditor or taxing authority; or 15 (B) the transfer is made under a promise given as collateral by 16 the transferor to the transferee in the course of an earlier transfer of the license 17 and the promise obligates the transferor to transfer the license back to the 18 transferee in the event of default in payment for property conveyed as part of 19 the earlier transfer of the license; 20 (5) transfer of the license to another person would result in violation of 21 the provisions of this chapter relating to identity of licensees and financing of 22 licensees; 23 (6) transfer of the license to another person would violate the 24 restrictions pertaining to the particular license under this chapter; 25 (7) the prospective transferee does not have the qualifications required 26 under this chapter of an original applicant. 27 Sec. 17.38.390. Suspension and revocation of licenses. The board shall 28 suspend or revoke a license issued under this chapter if the board finds 29 (1) misrepresentation of a material fact on an application made under 30 this chapter or a regulation adopted under this chapter; 31 (2) continuation of the manufacture or sale of marijuana or marijuana
01 products by the licensee would be contrary to the best interests of the public; 02 (3) failure on the part of the licensee, after receipt of notice issued by 03 the board or its agent, to correct a defect that constitutes a violation of 04 (A) this chapter; 05 (B) a condition or restriction imposed by the board; 06 (C) a regulation adopted under this chapter; or 07 (D) other applicable law; 08 (4) conviction of a licensee of a violation of this chapter or AS 11.71 or 09 a regulation adopted under this chapter or AS 11.71; 10 (5) conviction of an agent or employee of a licensee of a violation of 11 this chapter or AS 11.71 or a regulation adopted under this chapter or AS 11.71, if the 12 licensee is found by the board to have knowingly allowed the violation with the result 13 that the agent or employee violates a law or regulation; 14 (6) failure of the licensee to comply with the public health, fire, or 15 safety laws and regulations in the state; 16 (7) use of the licensed premises as a resort for illegal possessors or 17 users of narcotics, prostitutes, or sex traffickers; in addition to any other legally 18 competent evidence, the character of the premises may be proved by the general 19 reputation of the premises in the community as a resort for illegal possessors or users 20 of narcotics, prostitutes, or sex traffickers; 21 (8) occurrence of illegal gambling within the limits of the licensed 22 premises; 23 (9) the licensee permitted a public offense involving moral turpitude to 24 occur on the licensed premises; 25 (10) violation by a licensee of this chapter, a condition or restriction 26 imposed by the board, or a regulation adopted under this chapter; or 27 (11) violation by an agent or employee of a licensee of a provision of 28 this chapter, a condition or restriction imposed by the board, or a regulation adopted 29 under this chapter, if the licensee is found by the board to have knowingly allowed the 30 violation with the result that the agent or employee violates the law, condition or 31 restriction, or regulation.
01 Sec. 17.38.400. Board-imposed conditions or restrictions. The board may, in 02 the best interests of the public, impose conditions or restrictions on a license issued 03 under this chapter. 04 Sec. 17.38.410. Restriction of location near churches, schools, and 05 correctional facilities. (a) The board may not issue a marijuana retailer license or 06 transfer the location of an existing marijuana retailer license if the licensed premises 07 would be located in a building the public entrance of which is within 200 feet of 08 school grounds, a church building in which religious services are regularly conducted, 09 or a correctional facility measured by the shortest pedestrian route from the outer 10 boundaries of the school ground or the public entrance of the church building or 11 correctional facility. However, a license issued before the presence of either cause of 12 restriction within 200 feet of the licensed premises may be renewed or transferred to a 13 person notwithstanding this subsection. 14 (b) If a marijuana retailer license for premises located within 200 feet of school 15 grounds, a church building in which religious services are regularly conducted, or a 16 correctional facility is revoked, expires, or is transferred to another location, the board 17 may not issue a marijuana retailer license or transfer the license to the formerly 18 licensed premises until the cessation of the cause of the restriction. 19 Sec. 17.38.420. Zoning limitations. (a) The board may not issue a license to a 20 person in a municipality if a zoning regulation or ordinance prohibits the sale of 21 marijuana unless a variance of the regulation or ordinance has been approved. 22 (b) The municipality shall inform the board of zoning regulations or ordinances 23 that prohibit the sale of marijuana. 24 Sec. 17.38.430. Person and location. (a) The board shall issue each license to 25 a specific individual or individuals, to a partnership, including a limited partnership, to 26 a limited liability company, or to a corporation. If the license is issued to a corporation 27 or limited liability company, the registered agent of the corporation or limited liability 28 company must be an individual who is a resident of the state. A license may not be 29 issued to 30 (1) an individual unless the individual has been a resident of the state 31 for at least one year;
01 (2) a corporation unless the corporation is incorporated or qualified to 02 do business in the state; 03 (3) a sole proprietorship unless the proprietor is a resident of the state; 04 (4) a limited liability company unless all members are residents of the 05 state; or 06 (5) a partnership unless all partners are residents of the state. 07 (b) A specific location shall be indicated on the license as the licensed 08 premises, the principal address of which shall be indicated on the license. The licensee 09 shall immediately notify the board of changes to the mailing address of a licensee or, 10 if the licensee is a corporation, the address of the registered office of the corporation. 11 The board shall maintain the current address for a licensee in the main office of the 12 board. 13 Sec. 17.38.440. Prohibited financial interest. (a) A person other than a 14 licensee may not have a direct or indirect financial interest in the business for which a 15 license is issued. 16 (b) A license may not be leased by a licensee to another person, partnership, 17 limited liability organization, or corporation. 18 (c) For the purposes of this section, a lessor under a graduated or percentage 19 lease-rent agreement involving premises licensed under this title does not hold a 20 financial interest in the business. 21 (d) In this section, "direct or indirect financial interest" means holding a legal 22 or equitable interest in the operation of a business licensed under this title. However, a 23 consulting fee received from a person licensed under this chapter, is not considered a 24 financial interest in a business licensed under this chapter. 25 Sec. 17.38.450. Procedure for action on license applications, suspensions, 26 and revocations. (a) Unless a legal action relating to the license, applicant, or 27 premises to be licensed is pending, the board shall decide whether to grant or deny an 28 application within 90 days after receipt of the application at the main office of the 29 board. 30 (b) The board may review an application for the issuance, renewal, transfer of 31 location, or transfer to another person of a license without affording the applicant
01 notice or hearing, except 02 (1) if an application is denied, the notice of denial shall be furnished to 03 the applicant immediately in writing stating the reason for the denial in clear and 04 concise language; the notice of denial must inform the applicant that the applicant is 05 entitled to an informal conference with either the director or the board, and that, if not 06 satisfied by the informal conference, the applicant is then entitled to a formal hearing 07 conducted by the office of administrative hearings (AS 44.64.010); if the applicant 08 requests a formal hearing, the office of administrative hearings shall adhere to 09 AS 44.62.330 - 44.62.630 (Administrative Procedure Act); all interested persons may 10 be heard at the hearing and unless waived by the applicant and the board, the formal 11 hearing shall be held in the area for which the application is requested; 12 (2) the board may, on its own initiative or in response to an objection or 13 protest, hold a hearing to ascertain the reaction of the public or a local governing body 14 to an application if a hearing is not required under this subsection; the board shall send 15 notice of a hearing conducted under this paragraph 20 days in advance of the hearing 16 to each community council established within the municipality and to each nonprofit 17 community organization entitled to notification under AS 17.38.340(b). 18 (c) Unless the grounds for the suspension or revocation are under 19 AS 17.38.390(4), board proceedings to suspend or revoke a license shall be conducted 20 in accordance with AS 44.62.330 - 44.62.630 (Administrative Procedure Act), except 21 that the licensee is entitled to an opportunity to confer informally with the director or 22 the board within 10 days after the accusation is served on the licensee. Notice of the 23 opportunity for an informal conference shall be served on the licensee along with the 24 accusation. If an informal conference is requested, the running of the period of time 25 specified in AS 44.62.380 for filing a notice of defense is tolled from the date of 26 receipt of the request for the conference until the day following the date of the 27 conference unless extended by the board. After the conference, the licensee, if not 28 satisfied by the results of the conference, may obtain a hearing by filing a notice of 29 defense as provided in AS 44.62.390. If the grounds for suspension or revocation are 30 under AS 17.38.390(4), the licensee is not entitled to notice and hearing under 31 AS 44.62.330 - 44.62.630 (Administrative Procedure Act) on the merits of the
01 suspension or revocation. 02 Sec. 17.38.460. Suspension and revocation based on acts of employees. If, 03 in a proceeding to suspend or revoke a license under AS 17.38.390(5), the board finds 04 that a sentencing report sent to the board under AS 12.55.025(b) or a report prepared 05 by the investigating or arresting officers in connection with the violation, contains 06 information that if uncontradicted or unexplained would provide a ground for 07 suspension or revocation under AS 17.38.390(5), the licensee has the burden of proof 08 to establish that the licensee did not knowingly allow the violation. 09 Sec. 17.38.470. Application of precedent. In determining whether issuance, 10 renewal, transfer, relocation, suspension, or revocation of a license is in the best 11 interests of the public, the board need not conform to or distinguish its decision from 12 any action it has taken in the past on applications presenting similar facts, but may 13 instead base its decision only on the particular facts before it. 14 Sec. 17.38.480. License renewal and expiration. Notwithstanding 15 AS 17.38.580, an application for renewal of a license issued for one calendar year 16 ending December 31 may be submitted until the next February 28. If a complete 17 application for renewal has not been filed by February 28 or the required fees and the 18 penalty fees have not been paid by that date, the license expires at 12 midnight 19 February 28. A new license may not be issued to the holder of an expired license for 20 the same premises except on proof satisfactory to the board of good cause for the 21 failure to file and pay. A holder of an expired license shall immediately return the 22 license to the board. 23 Sec. 17.38.490. Notice of expiration. On or before February 15, the director 24 shall mail a notice of expiration to each licensee who has not either (1) filed an 25 application to renew a license, along with any applicable affidavits and all fees due, or 26 (2) notified the director of an intent not to do so. Failure of the director to mail this 27 notice of expiration does not waive the requirement that the application for renewal be 28 filed by February 28. 29 Sec. 17.38.500. Appeals. (a) An action of an officer, employee, or agent of the 30 board relating to the administration or enforcement of this chapter may be appealed to 31 the board by the aggrieved party.
01 (b) A decision by the board relating to the issuance, renewal, transfer, 02 relocation, suspension, or revocation of a license under this chapter may be appealed 03 to the superior court under AS 44.62.560. 04 Sec. 17.38.510. Refund and forfeiture of fees. (a) If an application for a 05 license is denied, the board shall refund the license fee less the application fee. 06 (b) A license fee may not be refunded after the license has been issued unless 07 the board determines it has erred in the issuance through no fault of the applicant. 08 (c) If a license is revoked on grounds that statements made in the application 09 are untrue, the license fee paid by the applicant is forfeited to the state. 10 Sec. 17.38.520. Civil fine. (a) Except as provided in (c) of this section, the 11 board may, in addition to any other penalties imposed under this title, impose a civil 12 fine on a licensee that the board determines, at a proceeding under AS 17.38.450(c), 13 has violated a provision of this chapter or AS 11.71 or a regulation adopted under this 14 chapter or AS 11.71. 15 (b) The board shall by regulation adopt a schedule of fines that a licensee may 16 be required to pay under this section. A fine may not exceed the greater of 17 (1) $75,000; or 18 (2) an amount that is three times the monetary gain realized by the 19 licensee as a result of the violation. 20 (c) If the board is proceeding under AS 17.38.390(4), the board may not 21 impose a civil fine exceeding the amount specified under AS 12.55.035 applicable to 22 the offense for which the licensee was convicted, or with the licensee's consent, the 23 limit imposed under (b) of this section. 24 Sec. 17.38.530. Surrender or destruction of license. (a) A license issued 25 under this chapter shall, if the board so directs, be surrendered on demand to a peace 26 officer, agent, or officer of the board. 27 (b) The licensee shall surrender a current license to the board within 10 days 28 after the loss or vacation of the licensed premises. 29 (c) If the license is destroyed, the licensee shall notify the board. 30 Sec. 17.38.540. Disposition of money. (a) The board shall transfer money 31 collected from licenses, civil fines under this chapter, and fees prescribed by the board
01 in addition to fees authorized under this chapter to the Department of Commerce, 02 Community, and Economic Development and deposited in the general fund. 03 (b) The annual estimated balance in the account maintained by the 04 commissioner of administration under AS 37.05.142 may be appropriated to the 05 Department of Commerce, Community, and Economic Development to carry out the 06 purposes of this chapter. 07 Sec. 17.38.550. Accessibility of license and licensed premises to inspection. 08 (a) A licensee shall, upon request, make the licensed premises available for inspection 09 by officers charged with the enforcement of this chapter, including members of the 10 board and the director or an employee of the director, during all regular business 11 hours. 12 (b) A license issued under this title shall be posted within the licensed premises 13 so as to be easily available for inspection upon request by a peace officer or other 14 person during regular business hours. 15 Sec. 17.38.560. License a privilege. (a) A license issued under this chapter is a 16 personal privilege, not a property right. 17 (b) The privilege conferred on the licensee is personal in nature and affords 18 protection to the licensee only. 19 Sec. 17.38.570. Foreclosure. A license issued under this chapter is not subject 20 to foreclosure, and may not be used as collateral to secure a debt. 21 Sec. 17.38.580. Duration of licenses. A license issued under this chapter shall 22 be for one year. The period shall be clearly designated on the license. 23 * Sec. 23. AS 17.38.900(6) is amended to read: 24 (6) "marijuana" means all parts of the plant of the genus cannabis 25 whether growing or not, the seeds thereof, the resin extracted from any part of the 26 plant, and every compound, manufacture, [SALT,] derivative, mixture, or preparation 27 of the plant, its seeds, or its resin, including marijuana concentrate; "marijuana" does 28 not include fiber produced from the stalks, oil, or cake made from the seeds of the 29 plant, sterilized seed of the plant that [WHICH] is incapable of germination, or the 30 weight of any other ingredient combined with marijuana to prepare topical or oral 31 administrations, food, drink, or other products;
01 * Sec. 24. AS 17.38.900(9) is amended to read: 02 (9) "marijuana establishment" means a marijuana producer 03 [CULTIVATION FACILITY], a marijuana testing facility, a marijuana processor, a 04 [PRODUCT MANUFACTURING FACILITY, OR A RETAIL] marijuana retailer, a 05 marijuana boutique producer, a marijuana broker, or a marijuana home grower 06 [STORE]; 07 * Sec. 25. AS 17.38.900(11) is amended to read: 08 (11) "marijuana products" includes [MEANS] concentrated marijuana 09 products and marijuana products that consist [ARE COMPRISED] of marijuana and 10 other ingredients and are intended for use or consumption, such as, but not limited to, 11 edible products, ointments, and tinctures; 12 * Sec. 26. AS 17.38.900(12) is amended to read: 13 (12) "marijuana testing facility" means an entity certified 14 [REGISTERED] to analyze and certify the safety and potency of marijuana; 15 * Sec. 27. AS 17.38.900 is amended by adding new paragraphs to read: 16 (15) "correctional facility" has the meaning given in AS 33.30.901; 17 (16) "director" means the director of the Alcoholic Beverage Control 18 Board; 19 (17) "marijuana boutique" means a person licensed under 20 AS 17.38.250; 21 (18) "marijuana broker" means a person licensed under AS 17.38.260; 22 (19) "marijuana home grower" means a person licensed under 23 AS 17.38.270; 24 (20) "marijuana processor" means a person licensed under 25 AS 17.38.220; 26 (21) "marijuana producer" means a person licensed under 27 AS 17.38.210; 28 (22) "marijuana retailer" means a person licensed under AS 17.38.230; 29 (23) "municipality" has the meaning given in AS 29.71.800; 30 (24) "school grounds" has the meaning given in AS 11.71.900. 31 * Sec. 28. AS 29.35 is amended by adding a new section to read:
01 Sec. 29.35.083. Marijuana. (a) A municipality may only regulate marijuana 02 establishments and the operation of marijuana establishments as permitted by 03 AS 17.38. 04 (b) This section applies to home rule and general law municipalities. 05 (c) In this section, "marijuana" has the meaning given in AS 11.71.900. 06 * Sec. 29. AS 43.61.010(a) is amended to read: 07 (a) An excise tax is imposed on the sale or transfer of marijuana from a 08 marijuana producer or marijuana broker [CULTIVATION FACILITY] to a 09 [RETAIL] marijuana retailer [STORE] or marijuana processor [PRODUCT 10 MANUFACTURING FACILITY]. Every marijuana producer and marijuana 11 broker [CULTIVATION FACILITY] shall pay an excise tax at the rate of $50 an 12 [PER] ounce, or proportionate part of an ounce [THEREOF], on marijuana that is sold 13 or transferred from a marijuana producer or marijuana broker [CULTIVATION 14 FACILITY] to a [RETAIL] marijuana retailer [STORE] or marijuana processor 15 [PRODUCT MANUFACTURING FACILITY]. 16 * Sec. 30. AS 43.61.020 is amended to read: 17 Sec. 43.61.020. Monthly statement and payments. (a) Each marijuana 18 producer and marijuana broker [CULTIVATION FACILITY] shall send a 19 statement by mail or electronically to the department on or before the last day of each 20 calendar month. The statement must contain an account of the amount of marijuana 21 sold or transferred to [RETAIL] marijuana retailers, [STORES] and marijuana 22 processors [PRODUCT MANUFACTURING FACILITIES] in the state during the 23 preceding month, setting out 24 (1) the total number of ounces, including fractional ounces, sold or 25 transferred; 26 (2) the names and Alaska address of each buyer and transferee; and 27 (3) the weight of marijuana sold or transferred to the respective buyers 28 or transferees. 29 (b) The marijuana producer and marijuana broker [CULTIVATION 30 FACILITY] shall pay monthly to the department, all taxes, computed at the rates 31 prescribed in this chapter, on the respective total quantities of the marijuana sold or
01 transferred during the preceding month. The monthly return shall be filed and the tax 02 paid on or before the last day of each month to cover the preceding month. 03 * Sec. 31. AS 43.61.030 is amended to read: 04 Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent 05 payments under this chapter shall subject the marijuana producer or marijuana 06 broker [CULTIVATION FACILITY] to civil penalties under AS 43.05.220. 07 (b) If a marijuana producer or marijuana broker [CULTIVATION 08 FACILITY] fails to pay the tax to the state, the marijuana producer's license or 09 marijuana broker's license [CULTIVATION FACILITY'S REGISTRATION] may 10 be revoked in accordance with procedures established under AS 17.38.090(a)(1). 11 * Sec. 32. AS 43.61 is amended by adding a new section to read: 12 Sec. 43.61.040. Definitions. In this chapter, "marijuana processor," "marijuana 13 producer," "marijuana retailer," and "marijuana broker" have the meanings given in 14 AS 17.38.900. 15 * Sec. 33. AS 17.38.070, 17.38.900(8), 17.38.900(10), and 17.38.900(13) are repealed. 16 * Sec. 34. This Act takes effect immediately under AS 01.10.070(c).