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).