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SB 60: "An Act establishing the Marijuana Control Board; relating to the powers and duties of the Marijuana Control Board; relating to the appointment, removal, and duties of the director of the Marijuana Control Board; relating to the Alcoholic Beverage Control Board; and providing for an effective date."

00                             SENATE BILL NO. 60                                                                          
01 "An Act establishing the Marijuana Control Board; relating to the powers and duties of                                  
02 the Marijuana Control Board; relating to the appointment, removal, and duties of the                                    
03 director of the Marijuana Control Board; relating to the Alcoholic Beverage Control                                     
04 Board; and providing for an effective date."                                                                            
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  AS 04.06.070 is amended to read:                                                                     
07            Sec. 04.06.070. Appointment and removal of director. The governor shall                                    
08       appoint a director to serve as the executive officer of the board and the Marijuana                           
09       Control Board created under AS 17.38.080. The director may be removed by a                                    
10       majority vote of the full membership of the board and a majority vote of the full                             
11       membership of the Marijuana Control Board. The [BOARD MAY REMOVE THE                                          
12       DIRECTOR AT ITS PLEASURE, AND THE] governor may remove the director for                                           
13       misconduct, misfeasance, or malfeasance in office. The governor may not remove the                                
14       director unless the director is given a copy of the charges and afforded an opportunity                           
01       to be publicly heard, in person or by counsel, in defense against the charges upon at                             
02       least 10 days' notice. If the director is removed for cause, the governor shall file with                         
03       the lieutenant governor a complete statement of all charges made against the director                             
04       and the findings based on the charges, together with a complete record of any hearing.                            
05    * Sec. 2. AS 17.38.080 is repealed and reenacted to read:                                                        
06            Sec. 17.38.080. Marijuana Control Board; appointment and qualifications.                                   
07       (a) The Marijuana Control Board is established in the Department of Commerce,                                     
08       Community, and Economic Development. The board is in the Department of                                            
09       Commerce, Community, and Economic Development for administrative purposes                                         
10       only.                                                                                                             
11            (b)  The board consists of five voting members appointed by the governor and                                 
12       confirmed by a majority of the members of the legislature in joint session. A member                              
13       of the board may not hold any other state or federal office, either elective or                                   
14       appointive.                                                                                                       
15            (c)  Of the board members and the director, one person shall be from the public                              
16       safety sector, one person shall be from the public health sector, one person shall be                             
17       from a rural area, and not more than two people may be actively engaged in the                                    
18       marijuana industry; the remaining person or persons shall be from the general public.                             
19       For the purposes of this section, "marijuana industry" means any business or                                      
20       profession lawfully engaged and in compliance with the provisions of state law,                                   
21       including AS 17.38 and regulations adopted under AS 17.38.                                                        
22            (d)  If the director is or was a person actively engaged in the marijuana                                    
23       industry within the five years preceding appointment; not more than one board                                     
24       member may also be actively engaged in the marijuana industry.                                                    
25            (e)   If the director is or has been employed in the public safety sector or the                             
26       public health sector within the five years preceding appointment, this shall meet the                             
27       requirement that one board member be from that sector, and the board position that                                
28       would otherwise have been filled by a person from that sector shall be filled by a                                
29       person from the general public.                                                                                   
30            (f)  One board member shall reside or have resided in a rural area for not fewer                             
31       than 180 days within the five years preceding appointment.                                                        
01            (g)  Not more than two members of the board may be engaged in the same                                       
02       business, occupation, or profession.                                                                              
03            (h)  A board member representing the general public, the public safety sector,                               
04       the public health sector, or a rural area who has, or whose immediate family member                               
05       has, a financial interest in the marijuana industry, is disqualified from serving on the                          
06       board.                                                                                                            
07            (i)  In this section,                                                                                        
08                 (1)  "immediate family member" means a spouse, child, or parent;                                        
09                 (2)  "financial interest" means holding directly or indirectly, a legal or                              
10       equitable interest in the operation of a business licensed under this title;                                      
11                 (3)  "public health sector" means a state, federal, or local entity that                                
12       works to ensure the health and safety of persons and communities through education,                               
13       policymaking, treatment and prevention of injury and disease, and promotion of                                    
14       wellness;                                                                                                         
15                 (4)  "public safety sector" means a state, federal, or local law                                        
16       enforcement authority that provides for the welfare and protection of the general                                 
17       public through the enforcement of applicable laws;                                                                
18                 (5)  "rural area" means an area of human habitation with a population                                   
19       below 6,000 as determined under AS 29.60.860(c).                                                                  
20 * Sec. 3. AS 17.38 is amended by adding new sections to read:                                                         
21            Sec. 17.38.081. Terms of office; chair. (a)  Members of the board serve                                    
22       staggered three-year terms.                                                                                       
23            (b)  Except as provided in AS 39.05.080(4), a member of the board serves until                               
24       a successor is appointed.                                                                                         
25            (c)  Except as provided in AS 39.05.080(4), an appointment to fill a vacancy                                 
26       on the board is for the remainder of the unexpired term.                                                          
27            (d)  A member who has served all or part of two successive terms on the board                                
28       may not be reappointed to the board unless three years have elapsed since the person                              
29       has last served on the board.                                                                                     
30            (e)  The board shall select a chair from among its members.                                                  
31            Sec. 17.38.082. Per diem and expenses. Members of the board do not receive                                 
01       a salary but are entitled to per diem and travel expenses authorized for state boards and                         
02       commissions under AS 39.20.180.                                                                                   
03            Sec. 17.38.083 Meetings. (a) The board shall meet at the call of the chair.                                
04            (b) Three members of the board constitute a quorum for the conduct of                                        
05       business. A majority of the whole membership of the board must approve all                                        
06       applications for new licenses, and all renewals, transfers, suspensions, and revocations                          
07       of existing licenses, as well as product approvals as provided in regulation.                                     
08            Sec. 17.38.083. Powers and duties of the board. (a) The board shall control                                
09       the cultivation, manufacture, possession, and sale of marijuana in the state. The board                           
10       is vested with the powers and duties necessary to enforce this chapter.                                           
11            (b)  The board shall                                                                                         
12                 (1)  propose and adopt regulations;                                                                     
13                 (2)  establish through regulation the qualifications for licensure                                      
14       including fees and factors relating to the applicant's experience, criminal justice                               
15       history, and financial interests;                                                                                 
16                 (3)  review applications for licensure made under this chapter and may                                  
17       order the executive director to issue, renew, suspend, or revoke a license authorized                             
18       under this chapter; and                                                                                           
19                 (4)  hear appeals from actions of the director and from actions of                                      
20       officers and employees charged with enforcing this chapter and the regulations                                    
21       adopted under this chapter.                                                                                       
22            (c)  When considering an application for licensure, the board may reduce the                                 
23       area to be designated as the licensed premises from the area applied for if, in the                               
24       judgment of the board, a reduction in area is necessary to ensure control over the sale                           
25       and consumption of marijuana on the premises or it is otherwise in the best interests of                          
26       the public.                                                                                                       
27            (d)  The board shall adopt regulations under this title in accordance with                                   
28       AS 44.62 (Administrative Procedure Act).                                                                          
29            Sec. 17.38.084. Enforcement powers. The director and the persons employed                                  
30       for the administration and enforcement of this title may, with the concurrence of the                             
31       commissioner of public safety, exercise the powers of peace officers when those                                   
01       powers are specifically granted by the board. Powers granted by the board under this                              
02       section may be exercised only when necessary for the enforcement of the criminally                                
03       punishable provisions of this title, regulations of the board, and other criminally                               
04       punishable laws and regulations relating to marijuana.                                                            
05            Sec. 17.38.085. Appointment and removal of director; staff. (a) The director                               
06       of the Alcoholic Beverage Control Board appointed under AS 04.06.070 shall serve as                               
07       the director of the board. The board may remove the director by a majority vote of the                            
08       full membership of the board and a majority vote of the full membership of the                                    
09       Alcoholic Beverage Control Board. The governor may remove the executive director                                  
10       as provided in AS 04.06.070.                                                                                      
11            (b) The paid staff of the Alcoholic Beverage Control Board created in                                        
12       AS 04.06.010 shall also be the staff for the board.                                                               
13            Sec. 17.38.086. Duties of director. The director shall enforce this chapter and                            
14       regulations adopted by the board. The director shall issue, renew, transfer, suspend, or                          
15       revoke all licenses and permits and issue product approvals at the direction of the                               
16       board. The board may delegate authority to the director to temporarily grant or deny                              
17       the issuance, renewal, or transfer of licenses and permits. The director's temporary                              
18       grant or denial of the issuance, renewal, or transfer of a license or permit is not                               
19       binding on the board. The board may delegate to the director any duty imposed by this                             
20       chapter except its power to propose and adopt regulations.                                                        
21    * Sec. 4. AS 17.38.900(1) is amended to read:                                                                      
22                 (1)  "board" means the Marijuana Control Board established by                                           
23       AS 17.38.080 [ALCOHOLIC BEVERAGE CONTROL BOARD ESTABLISHED                                                        
24       BY AS 04.06];                                                                                                     
25    * Sec. 5. AS 17.38.900 is amended by adding new paragraphs to read:                                                
26                 (14)  "director" means the director of the Marijuana Control Board and                                  
27       the Alcoholic Beverage Control Board;                                                                             
28                 (15) "registration" means registration or licensure, as determined by                                   
29       regulation.                                                                                                       
30    * Sec. 6. AS 44.33.020(a)(45) is amended to read:                                                                  
31                 (45)  supply necessary clerical and administrative services for the                                     
01       Alcoholic Beverage Control Board and the Marijuana Control Board.                                             
02    * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to                          
03 read:                                                                                                                   
04       MARIJUANA CONTROL BOARD; STAGGERED TERMS. Notwithstanding                                                         
05 AS 39.05.055, the governor shall appoint the initial members of the Marijuana Control Board                             
06 to staggered terms as follows:                                                                                          
07            (1)  two members shall be appointed to serve three years;                                                    
08            (2)  two members shall be appointed to serve two years; and                                                  
09            (3)  one member shall be appointed to serve one year.                                                        
10    * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to                          
11 read:                                                                                                                   
12       TRANSITION: REGULATIONS. (a) Regulations adopted by the Alcoholic Beverage                                        
13 Control Board to implement AS 17.38 remain in effect and may continue to be implemented,                                
14 enforced, amended, or repealed by the Marijuana Control Board established by sec. 2 of this                             
15 Act.                                                                                                                    
16       (b)  The Marijuana Control Board, established by sec. 2 of this Act, may adopt                                    
17 regulations necessary to implement the changes made by this Act. The regulations take effect                            
18 under AS 44.62 (Administrative Procedure Act), but not before the effective date of this Act.                           
19    * Sec. 9. This Act takes effect immediately under AS 01.10.070(c).