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29th Legislature(2015-2016)

Bill Text 29th Legislature


00                       CS FOR HOUSE BILL NO. 75(JUD)                                                                     
01 "An Act relating to the registration of marijuana establishments by municipalities;                                     
02 relating to the definition of 'marijuana'; clarifying standards for personal use of                                     
03 marijuana by persons 21 years of age or older; prohibiting the public consumption of                                    
04 marijuana; authorizing the registration of marijuana clubs; relating to established                                     
05 villages and to local option elections regarding the operation of marijuana                                             
06 establishments; and providing for an effective date."                                                                   
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 11.71.900(14) is amended to read:                                                                  
09                 (14)  "marijuana" means all parts [THE SEEDS, AND LEAVES,                                           
10       BUDS, AND FLOWERS] of the plant (genus) Cannabis, whether growing or not, the                                 
11       seeds thereof, [; IT DOES NOT INCLUDE] the resin [OR OIL] extracted from any                                  
12       part of the plant, and [PLANTS, OR] any compound, manufacture, [SALT,]                                        
13       derivative, mixture, or preparation of the plant, its seeds, or its resin, including                          
01       marijuana concentrate; "marijuana" [FROM THE RESIN OR OIL, INCLUDING                                          
02       HASHISH, HASHISH OIL, AND NATURAL OR SYNTHETIC                                                                    
03       TETRAHYDROCANNABINOL; IT] does not include [THE STALKS OF THE                                                     
04       PLANT,] fiber produced from the stalks, oil or cake made from the seeds of the plant,                             
05       [ANY OTHER COMPOUND, MANUFACTURE, SALT, DERIVATIVE,                                                               
06       MIXTURE, OR PREPARATION OF THE STALKS, FIBER, OIL OR CAKE, OR                                                     
07       THE] sterilized seed of the plant that [WHICH] is incapable of germination, or the                        
08       weight of any other ingredient combined with marijuana to prepare topical or                                  
09       oral administrations, food, drink, or other products;                                                         
10    * Sec. 2. AS 17.38.020 is amended to read:                                                                         
11            Sec. 17.38.020. Personal use of marijuana. Notwithstanding any other                                       
12       provision of law, except as otherwise provided in this chapter, the following acts, by                            
13       persons 21 years of age or older, are lawful and are not [SHALL NOT BE A] criminal                            
14       or civil offenses [OFFENSE] under Alaska law or the law of any political subdivision                          
15       of Alaska or bases [BE A BASIS] for seizure or forfeiture of assets under Alaska law:                         
16                 (1)  possessing, using, displaying, purchasing, or transporting                                         
17       marijuana accessories or one ounce or less of marijuana;                                                          
18                 (2)  possessing, growing, processing, or transporting not [NO] more                                 
19       than six marijuana plants, with three or fewer being mature, flowering plants, and                                
20       possession of the marijuana produced by the plants on the premises where the plants                               
21       were grown, except that not more than 24 marijuana plants, with 12 or fewer                                   
22       being mature, flowering plants, may be present in a single dwelling regardless of                             
23       the number of persons 21 years of age or older residing in the dwelling;                                      
24                 (3)  transferring one ounce or less of marijuana and up to six immature                                 
25       marijuana plants to a person who is 21 years of age or older without remuneration;                                
26                 (4)  consumption of marijuana, except that nothing in this chapter                                      
27       permits [SHALL PERMIT] the consumption of marijuana in a public place; and                            
28                 (5)  assisting, aiding, or supporting another person who is 21 years of                             
29       age or older in any of the acts described in (1) - (4) of this section; assisting under                       
30       this paragraph does not include                                                                               
31                      (A)  using, displaying, purchasing, or transporting                                            
01            marijuana in excess of the amount allowed in this section;                                               
02                      (B)  possessing, growing, processing, or transporting                                          
03            marijuana plants in excess of the amount allowed in this section;                                        
04                      (C)  growing marijuana plants for another person in a place                                    
05            other than that other person's dwelling.                                                                 
06    * Sec. 3. AS 17.38.040 is amended to read:                                                                         
07            Sec. 17.38.040. Public consumption banned, penalty. It is unlawful to                                      
08       consume marijuana in a public place. A person who violates this section is guilty of a                    
09       violation punishable by a fine of up to $100.                                                                     
10    * Sec. 4. AS 17.38.070(f) is amended to read:                                                                      
11            (f)  Nothing in this section prevents the imposition of penalties on [UPON]                              
12       marijuana establishments for violating this chapter or rules adopted by the board or a                        
13       municipality under [LOCAL GOVERNMENTS PURSUANT TO] this chapter.                                              
14    * Sec. 5. AS 17.38.100(c) is amended to read:                                                                      
15            (c)  Within 10 days after receipt of [UPON RECEIVING] an application or                                  
16       renewal application for a marijuana establishment, the board shall notify the                                 
17       municipality of the board's receipt of the application and [IMMEDIATELY]                                      
18       forward a copy of each application and half of the registration application fee to the                            
19       local regulatory authority for the municipality [LOCAL GOVERNMENT] in which                                   
20       the applicant desires to operate the marijuana establishment, unless the municipality                         
21       [LOCAL GOVERNMENT] has not designated a local regulatory authority under                                      
22       [PURSUANT TO] AS 17.38.110(c).                                                                                    
23    * Sec. 6. AS 17.38.100(d) is amended to read:                                                                      
24            (d)  Within [45 TO] 90 days after receiving an application or renewal                                        
25       application, the board shall issue an annual registration to the applicant unless the                             
26       board finds the applicant is not in compliance with regulations adopted under                                 
27       [ENACTED PURSUANT TO] AS 17.38.090 or the board is notified by the relevant                                       
28       municipality [LOCAL GOVERNMENT] that the applicant is not in compliance with                                  
29       ordinances enacted and regulations adopted under [MADE PURSUANT TO]                                       
30       AS 17.38.110 and in effect at the time of application.                                                            
31    * Sec. 7. AS 17.38 is amended by adding a new section to read:                                                     
01            Sec. 17.38.105. Protest and review of registration or renewal. (a) A                                       
02       municipality may protest the issuance or renewal of a registration by sending the board                           
03       and the applicant a protest and the reasons for the protest within 60 days after receipt                          
04       by the municipality from the board of notice of the filing of the application. The board                          
05       may not accept a protest received after the 60-day period, and, in no event, may a                                
06       protest cause the board to reconsider an approved renewal of a registration. The board                            
07       shall consider a protest and testimony received at a hearing conducted under (e)(1) or                            
08       (2) of this section when it considers the application or continued operation, and the                             
09       protest and the record of the hearing conducted under (e)(1) or (2) of this section shall                         
10       be kept as part of the board's permanent record of its review. If an application or                               
11       continued operation is protested, the board shall deny the application or continued                               
12       operation unless the board finds that the protest is arbitrary, capricious, and                                   
13       unreasonable.                                                                                                     
14            (b)  If the permanent residents residing outside of but within two miles of an                               
15       incorporated city or an established village wish to protest the issuance or renewal of a                          
16       registration within the city or village, they shall file with the board a petition meeting                        
17       the requirements of (e)(3) of this section requesting a public hearing within 30 days                             
18       after the receipt of notice required under AS 17.38.100(c). The board shall consider                              
19       testimony received at a hearing conducted under (e)(3) of this section when it                                    
20       considers the application, and the record of a hearing conducted under (e)(3) of this                             
21       section shall be retained as part of the board's permanent record of its review of the                            
22       application.                                                                                                      
23            (c)  A municipality may recommend that a registration be issued or renewed                                   
24       with conditions. The board shall consider recommended conditions and testimony                                    
25       received at a hearing conducted under (e)(1) or (2) of this section when it considers the                         
26       application or continued operation. The recommended conditions and the record of the                              
27       hearing conducted under (e)(1) or (2) of this section shall be kept as part of the board's                        
28       permanent record of its review. If the municipality recommends conditions, the board                              
29       shall impose the recommended conditions unless the board finds that the                                           
30       recommended conditions are arbitrary, capricious, or unreasonable. If a condition                                 
31       recommended by a municipality is imposed on a registrant, the municipality shall                                  
01       assume responsibility for monitoring compliance with the condition, except as                                     
02       otherwise provided by the board.                                                                                  
03            (d)  In addition to the right to protest under (a) of this section, a municipality                           
04       may notify the board that the municipality has determined that a registrant has violated                          
05       a provision of this chapter or a condition imposed on the registrant by the board.                                
06       Unless the board finds that the municipality's determination is arbitrary, capricious, or                         
07       unreasonable, the board shall prepare the determination as an accusation against the                              
08       registrant under AS 44.62.360 and conduct proceedings to resolve the matter.                                      
09            (e)  The board                                                                                               
10                 (1)  may, except as provided in (2) of this subsection, hold a hearing to                               
11       ascertain the basis of a protest to an application by a municipality;                                             
12                 (2)  shall hold a public hearing if a protest to the issuance or renewal of                             
13       a registration made by a municipality is based on a question of law;                                              
14                 (3)  shall hold a public hearing on the question of whether the issuance                                
15       or renewal of a registration in a city or village would be in the public interest if a                            
16       petition containing the signatures of 35 percent of the adult residents having a                                  
17       permanent place of abode outside of but within two miles of an incorporated city or an                            
18       established village is filed with the board;                                                                      
19                 (4)  shall send notice of a hearing conducted under this subsection 20                                  
20       days before the hearing to each community council established within the municipality                             
21       and to each nonprofit community organization entitled to notification under                                       
22       AS 17.38.100(c).                                                                                                  
23    * Sec. 8. AS 17.38.110(a) is amended to read:                                                                      
24            (a)  A municipality [LOCAL GOVERNMENT] may prohibit the operation of                                     
25       marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana                           
26       testing facilities, [OR] retail marijuana stores, or marijuana clubs through the                              
27       enactment of an ordinance or by a voter initiative. An established village may                                
28       prohibit the operation of marijuana establishments by a voter initiative as                                   
29       provided in AS 17.38.200.                                                                                     
30    * Sec. 9. AS 17.38.110(b) is amended to read:                                                                      
31            (b)  A municipality [LOCAL GOVERNMENT] may adopt [ENACT]                                             
01       ordinances or regulations not in conflict with this chapter or with regulations adopted                       
02       under [ENACTED PURSUANT TO] this chapter, governing the time, place, manner,                                  
03       and number of marijuana establishment operations. A municipality with power to                                
04       establish civil and criminal penalties [LOCAL GOVERNMENT] may establish civil                                 
05       and criminal penalties for violation of an ordinance or regulation governing the time,                        
06       place, and manner of a marijuana establishment that may operate in the municipality                           
07       [SUCH LOCAL GOVERNMENT].                                                                                          
08    * Sec. 10. AS 17.38.110(c) is amended to read:                                                                     
09            (c)  A municipality [LOCAL GOVERNMENT] may designate a local                                             
10       regulatory authority that is responsible for processing applications submitted for a                              
11       registration to operate a marijuana establishment within the boundaries of the                                    
12       municipality [LOCAL GOVERNMENT]. The municipality [LOCAL                                                  
13       GOVERNMENT] may provide that the local regulatory authority may issue [SUCH]                                      
14       registrations should the issuance by the municipality [LOCAL GOVERNMENT]                                      
15       become necessary because of a failure by the board to adopt regulations under                                 
16       [PURSUANT TO] AS 17.38.090 or to accept or process applications in accordance                                     
17       with AS 17.38.100.                                                                                                
18    * Sec. 11. AS 17.38.110(d) is amended to read:                                                                     
19            (d)  A municipality [LOCAL GOVERNMENT] may establish procedures for                                      
20       the issuance, suspension, and revocation of a registration issued by the municipality                         
21       [LOCAL GOVERNMENT] in accordance with (f) [OF THIS SECTION] or (g) of this                                        
22       section. These procedures shall be consistent with the [SUBJECT TO ALL]                                       
23       requirements of AS 44.62 (Administrative Procedure Act).                                                          
24    * Sec. 12. AS 17.38.110(e) is amended to read:                                                                     
25            (e)  A municipality [LOCAL GOVERNMENT] may establish a schedule of                                       
26       annual operating, registration, and application fees for marijuana establishments,                                
27       provided, the application fee is [SHALL ONLY BE] due only if an application is                            
28       submitted to a municipality [LOCAL GOVERNMENT] in accordance with (f) of this                                 
29       section and a registration fee is [SHALL ONLY BE] due only if a registration is                           
30       issued by a municipality [LOCAL GOVERNMENT] in accordance with (f) [OF                                        
31       THIS SECTION] or (g) of this section.                                                                             
01    * Sec. 13. AS 17.38.110(h) is amended to read:                                                                     
02            (h)  A local regulatory authority issuing a registration to an applicant shall do                            
03       so within 90 days after [OF] receipt of the submitted or resubmitted application unless                       
04       the local regulatory authority finds and notifies the applicant that the applicant is not                         
05       in compliance with ordinances and regulations adopted under [MADE PURSUANT                                    
06       TO] (b) of this section in effect at the time the application is submitted to the local                           
07       regulatory authority. The municipality [LOCAL GOVERNMENT] shall notify the                                    
08       board if an annual registration has been issued to the applicant.                                                 
09    * Sec. 14. AS 17.38.110(i) is amended to read:                                                                     
10            (i)  A registration issued by a municipality [LOCAL GOVERNMENT] in                                       
11       accordance with (f) [OF THIS SECTION] or (g) of this section shall have the same                                  
12       force and effect as a registration issued by the board in accordance with AS 17.38.100.                           
13       The holder of the [SUCH] registration is [SHALL NOT BE] subject to state                              
14       regulation or enforcement [BY THE BOARD] during the term of that registration.                                    
15    * Sec. 15. AS 17.38.110(j) is amended to read:                                                                     
16            (j)  A subsequent or renewed registration may be issued under (f) of this                                    
17       section on an annual basis only upon resubmission to the municipality [LOCAL                                  
18       GOVERNMENT] of a new application submitted to the board under [PURSUANT                                       
19       TO] AS 17.38.100.                                                                                                 
20    * Sec. 16. AS 17.38.110(l) is amended to read:                                                                     
21            (l)  Nothing in this section limits the [SHALL LIMIT SUCH] relief [AS MAY                                
22       BE] available to an aggrieved party under AS 44.62 (Administrative Procedure Act)                                 
23       or an ordinance consistent with AS 44.62.                                                                     
24    * Sec. 17. AS 17.38.110 is amended by adding new subsections to read:                                              
25            (m)  A municipality that has not prohibited the operation of marijuana                                       
26       cultivation facilities, marijuana product manufacturing facilities, marijuana testing                             
27       facilities, retail marijuana stores, or marijuana clubs under (a) of this section may                             
28       create a local advisory board to advise the municipality on issues related to licensing                           
29       of marijuana establishments and regulation of marijuana.                                                          
30            (n)  Except as provided in AS 29, the exercise of the powers authorized by this                              
31       section by a borough may be exercised only on a nonareawide basis. In this                                        
01       subsection, "nonareawide" means throughout the area of a borough outside all cities in                            
02       the borough.                                                                                                      
03    * Sec. 18. AS 17.38 is amended by adding new sections to read:                                                     
04            Sec. 17.38.200. Local option. (a) If a majority of the voters voting on the                                
05       question vote to approve the option, an established village shall exercise a local option                         
06       to prohibit the operation of marijuana establishments.                                                            
07            (b)  A ballot question to adopt a local option under this section must at least                              
08       contain language substantially similar to the following: "Shall (name of village) adopt                           
09       a local option to prohibit the operation of marijuana establishments? (yes or no)."                               
10            Sec. 17.38.210. Removal of local option. (a) If a majority of the voters voting                            
11       on the question vote to remove the option, an established village shall remove a local                            
12       option previously adopted under AS 17.38.200. The option is repealed effective the                                
13       first day of the month following certification of the results of the election.                                    
14            (b)  A ballot question to remove a local option under this section must at least                             
15       contain language substantially similar to the following: "Shall (name of village)                                 
16       remove the local option currently in effect, that prohibits the operation of marijuana                            
17       establishments, so that there is no longer any local option in effect? (yes or no)."                              
18            (c)  When issuing a registration in the area that has removed a local option, the                            
19       board shall give priority to an applicant who was formerly registered and whose                                   
20       registration was not renewed because of the results of the previous local option                                  
21       election. However, an applicant described in this subsection does not have a legal right                          
22       to registration, and the board is not required to approve the application.                                        
23            Sec. 17.38.220. Effect on registrations of prohibition of marijuana                                        
24       establishments. If a majority of voters vote to prohibit the operation of marijuana                             
25       establishments under AS 17.38.200, the board may not issue, renew, or transfer,                                   
26       between persons or locations, a registration for a marijuana establishment located                                
27       within the perimeter of the established village. A registration that may not be renewed                           
28       because of a local option election held under AS 17.38.200 is void 90 days after the                              
29       results of the election are certified. A registration that expires during the 90 days after                       
30       the results of a local option election are certified may be extended, until it is void                            
31       under this section, by payment of a prorated portion of the annual registration fee.                              
01            Sec. 17.38.230. Prohibition of sale, purchase, and manufacture after                                       
02       election. (a) If a majority of the voters vote to prohibit the operation of marijuana                           
03       establishments under AS 17.38.200, a person may not knowingly sell, purchase, or                                  
04       manufacture marijuana in the established village.                                                                 
05            (b)  If there are registered establishments within the established village, the                              
06       prohibition on sale, purchase, and manufacture is effective beginning 90 days after the                           
07       results of the election are certified. If there are no registered establishments within the                       
08       established village, the prohibition on possession is effective beginning 60 days after                           
09       the results of the election are certified.                                                                        
10            (c)  A person who violates this section is guilty, upon conviction, of a class A                             
11       misdemeanor. Each violation is a separate offense.                                                              
12            Sec. 17.38.240. Procedure for local option elections. (a) An election to adopt                             
13       a local option under AS 17.38.200 or remove a local option under AS 17.38.210 shall                               
14       be conducted as required in this section.                                                                         
15            (b)  Upon receipt of a petition of 35 percent or more of the registered voters                               
16       residing within an established village, the lieutenant governor shall place on a separate                         
17       ballot at a special election the local option or removal of local option that constitutes                         
18       the subject of the petition. The lieutenant governor shall conduct the election under                             
19       AS 15.                                                                                                            
20            (c)  An election under (b) of this section to remove a local option may not be                               
21       conducted during the first 24 months after the local option was adopted or more than                              
22       once in a 36-month period.                                                                                        
23            (d)  After a petition has been certified as sufficient to meet the requirements of                           
24       (b) of this section, another petition may not be filed or certified until after the question                      
25       presented in the first petition has been voted on. Only one local option question may                             
26       be presented in an election.                                                                                      
27            Sec. 17.38.250. Establishment of perimeter of established village. (a)                                     
28       Except as provided under (b) and (c) of this section, for purposes of AS 17.38.200 and                            
29       17.38.220, the perimeter of an established village is a circle around the established                             
30       village that includes an area within a five-mile radius of the post office of the                                 
31       established village. If the established village does not have a post office, the perimeter                        
01       of an established village is a circle around the established village that includes an area                        
02       within a five-mile radius of another site selected by the local governing body or by the                          
03       board if the established village does not have a local governing body.                                            
04            (b)  If the perimeter of an established village determined under (a) of this                                 
05       section includes any area that is within the perimeter of another established village                             
06       and, if the other established village has                                                                         
07                 (1)  also adopted a local option under AS 17.38.200, the local option of                                
08       the established village that is less restrictive applies in the overlapping area;                                 
09                 (2)  not adopted a local option under AS 17.38.200, the local option                                    
10       does not apply in the overlapping area.                                                                           
11            (c)  If the board determines that the perimeter of an established village as                                 
12       provided under (a) and (b) of this section does not accurately reflect the perimeter of                           
13       the established village, the board may establish the perimeter of the established village                         
14       and the areas of overlapping perimeter described under (b) of this section for purposes                           
15       of applying a local option selected under this chapter.                                                           
16            Sec. 17.38.260. Notice of the results of a local option election. If a majority                            
17       of the voters vote to prohibit or remove a local option under AS 17.38.200 or                                     
18       17.38.210, the lieutenant governor shall notify the board of the results of the election                          
19       immediately after the results are certified. The board shall immediately notify the                               
20       Department of Law and the Department of Public Safety of the results of the election.                             
21    * Sec. 19. AS 17.38.900(5) is amended to read:                                                                     
22                 (5)  "local regulatory authority" means the office or entity designated to                              
23       process marijuana establishment applications by a municipality [LOCAL                                         
24       GOVERNMENT];                                                                                                      
25    * Sec. 20. AS 17.38.900(6) is amended to read:                                                                     
26                 (6)  "marijuana" means all parts of the plant of the genus cannabis                                     
27       whether growing or not, the seeds thereof, the resin extracted from any part of the                               
28       plant, and every compound, manufacture, [SALT,] derivative, mixture, or preparation                               
29       of the plant, its seeds, or its resin, including marijuana concentrate; "marijuana" does                          
30       not include fiber produced from the stalks, oil, or cake made from the seeds of the                               
31       plant, sterilized seed of the plant that [WHICH] is incapable of germination, or the                          
01       weight of any other ingredient combined with marijuana to prepare topical or oral                                 
02       administrations, food, drink, or other products;                                                                  
03    * Sec. 21. AS 17.38.900(9) is amended to read:                                                                     
04                 (9)  "marijuana establishment" means a marijuana cultivation facility, a                                
05       marijuana testing facility, a marijuana product manufacturing facility, [OR] a retail                             
06       marijuana store, or a marijuana club;                                                                         
07    * Sec. 22. AS 17.38.900 is amended by adding new paragraphs to read:                                               
08                 (15)  "dwelling" has the meaning given in AS 11.81.900;                                                 
09                 (16)  "established village" means an area that does not contain any part                                
10       of an incorporated city or another established village and that is an unincorporated                              
11       community that is in the unorganized borough and that has 25 or more permanent                                    
12       residents;                                                                                                        
13                 (17)  "marijuana club" means an entity registered to allow consumption                                  
14       of marijuana by paying members of the club on the registered premises and whose                                   
15       members are 21 years of age or older;                                                                             
16                 (18)  "public place" means a place to which the public or a substantial                                 
17       group of persons has access and includes but is not limited to highways, transportation                           
18       facilities, schools, places of amusement or business, parks, playgrounds, prisons, and                            
19       hallways, lobbies, and other portions of apartment houses and hotels not constituting                             
20       rooms or apartments designed for actual residence; "public place" does not include a                              
21       marijuana club.                                                                                                   
22    * Sec. 23. AS 17.38.100(d), 17.38.100(e), and 17.38.900(4) are repealed.                                         
23    * Sec. 24. This Act takes effect immediately under AS 01.10.070(c).                                                
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