CSHB 59(HSS): "An Act relating to marijuana concentrates; relating to marijuana establishments and to the licensing of marijuana establishments; relating to alcoholic beverages and marijuana; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 59(HSS) 01 "An Act relating to marijuana concentrates; relating to marijuana establishments and 02 to the licensing of marijuana establishments; relating to alcoholic beverages and 03 marijuana; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE INTENT. It is the intent of the legislature in order to implement the 08 marijuana initiative in an orderly process 09 (1) to focus on the provisions related to growth and sale of marijuana and 10 licensing of marijuana establishments not later than November 24, 2015; 11 (2) to delay regulations relating to legal manufacture, delivery, possession, 12 possession with the intent to manufacture or deliver, sale, packaging, or display of marijuana 13 concentrates to not later than November 24, 2016, in response to the difficulties other 14 jurisdictions have found in unintended consequences of regulations permitting marijuana
01 concentrates; and 02 (3) during the period of the delay, that activities related to marijuana 03 concentrates remain illegal and may form the basis for revocation of an establishment license 04 or for seizure or forfeiture of assets under state law. 05 * Sec. 2. AS 04.16 is amended by adding a new section to read: 06 Sec. 04.16.165. Restriction on sale of marijuana on licensed premises. A 07 licensee may not sell, offer for sale, furnish, or deliver marijuana on licensed premises. 08 * Sec. 3. AS 17.38.070(a) is amended to read: 09 (a) The [NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 10 THE] following acts, when performed by a retail marijuana store with a current, valid 11 license [REGISTRATION], or a person 21 years of age or older who is acting in the 12 person's capacity as an owner, employee, or agent of a retail marijuana store, are 13 lawful and are [SHALL] not offenses [BE AN OFFENSE] under Alaska law or [BE] 14 a basis for seizure or forfeiture of assets under Alaska law: 15 (1) possessing, displaying, storing, or transporting marijuana or 16 marijuana products, except that marijuana and marijuana products may not be 17 displayed in a manner that is visible to the general public from a public right-of-way; 18 (2) delivering or transferring marijuana or marijuana products to a 19 marijuana testing facility; 20 (3) receiving marijuana or marijuana products from a marijuana testing 21 facility; 22 (4) purchasing marijuana from a marijuana cultivation facility; 23 (5) purchasing marijuana or marijuana products from a marijuana 24 product manufacturing facility; and 25 (6) delivering, distributing, or selling marijuana or marijuana products 26 to consumers. 27 * Sec. 4. AS 17.38.070(b) is amended to read: 28 (b) The [NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 29 THE] following acts, when performed by a marijuana cultivation facility with a 30 current, valid license [REGISTRATION], or a person 21 years of age or older who is 31 acting in the person's capacity as an owner, employee, or agent of a marijuana
01 cultivation facility, are lawful and are [SHALL] not offenses [BE AN OFFENSE] 02 under Alaska law or [BE] a basis for seizure or forfeiture of assets under Alaska law: 03 (1) cultivating, manufacturing, harvesting, processing, packaging, 04 transporting, displaying, storing, or possessing marijuana; 05 (2) delivering or transferring marijuana to a marijuana testing facility; 06 (3) receiving marijuana from a marijuana testing facility; 07 (4) delivering, distributing, or selling marijuana to a marijuana 08 cultivation facility, a marijuana product manufacturing facility, or a retail marijuana 09 store; 10 (5) receiving or purchasing marijuana from a marijuana cultivation 11 facility; and 12 (6) receiving marijuana seeds or immature marijuana plants from a 13 person 21 years of age or older. 14 * Sec. 5. AS 17.38.070(c) is amended to read: 15 (c) The [NOTWITHSTANDING ANY OTHER PROVISION OF LAW, 16 THE] following acts, when performed by a marijuana product manufacturing facility 17 with a current, valid license [REGISTRATION], or a person 21 years of age or older 18 who is acting in the person's capacity as an owner, employee, or agent of a marijuana 19 product manufacturing facility, are lawful and are [SHALL] not offenses [BE AN 20 OFFENSE] under Alaska law or [BE] a basis for seizure or forfeiture of assets under 21 Alaska law: 22 (1) packaging, processing, transporting, manufacturing, displaying, or 23 possessing marijuana or marijuana products; 24 (2) delivering or transferring marijuana or marijuana products to a 25 marijuana testing facility; 26 (3) receiving marijuana or marijuana products from a marijuana testing 27 facility; 28 (4) delivering or selling marijuana or marijuana products to a retail 29 marijuana store or a marijuana product manufacturing facility; 30 (5) purchasing marijuana from a marijuana cultivation facility; and 31 (6) purchasing of marijuana or marijuana products from a marijuana
01 product manufacturing facility. 02 * Sec. 6. AS 17.38.090(a) is amended to read: 03 (a) Not later than nine months after February 24, 2015, the board shall adopt 04 regulations necessary for implementation of this chapter. The [SUCH] regulations 05 may [SHALL] not prohibit the operation of marijuana establishments, either expressly 06 or through regulations that make their operation unreasonably impracticable. The 07 [SUCH] regulations must [SHALL] include 08 (1) procedures for the issuance, renewal, suspension, and revocation of 09 a license [REGISTRATION] to operate a marijuana establishment; the [, WITH 10 SUCH] procedures are subject to all requirements of AS 44.62 (Administrative 11 Procedure Act); 12 (2) a schedule of application, license [REGISTRATION], and renewal 13 fees, provided, application fees may [SHALL] not exceed $5,000, with this upper 14 limit adjusted annually for inflation, unless the board determines a greater fee is 15 necessary to carry out its responsibilities under this chapter; 16 (3) qualifications for licensure [REGISTRATION] that are directly 17 and demonstrably related to the operation of a marijuana establishment; 18 (4) security requirements for marijuana establishments, including for 19 the transportation of marijuana by marijuana establishments; 20 (5) requirements to prevent the sale or diversion of marijuana and 21 marijuana products to persons under [THE AGE OF] 21 years of age; 22 (6) labeling requirements for marijuana and marijuana products sold or 23 distributed by a marijuana establishment; 24 (7) health and safety regulations and standards for the manufacture of 25 marijuana products and the cultivation of marijuana; 26 (8) reasonable restrictions on the advertising and display of marijuana 27 and marijuana products; and 28 (9) civil penalties for the failure to comply with regulations made 29 under [PURSUANT TO] this chapter. 30 * Sec. 7. AS 17.38.090 is amended by adding a new subsection to read: 31 (c) The board shall adopt regulations governing the manufacture, delivery,
01 possession, possession with intent to manufacture or deliver, use, or display of 02 marijuana concentrates. At a minimum, the regulations must include labeling and 03 packaging requirements. The regulations may include 04 (1) prohibitions on combining marijuana concentrates with other 05 addictive substances; or 06 (2) requirements to certify new products before they are available for 07 retail. 08 * Sec. 8. AS 17.38.100(a) is amended to read: 09 (a) Each application or renewal application for a license [REGISTRATION] 10 to operate a marijuana establishment shall be submitted to the board. A renewal 11 application may be submitted up to 90 days before [PRIOR TO] the expiration of the 12 marijuana establishment's license [REGISTRATION]. 13 * Sec. 9. AS 17.38.100(c) is amended to read: 14 (c) Upon receiving an application or renewal application for a marijuana 15 establishment, the board shall immediately forward a copy of each application and half 16 of the license [REGISTRATION] application fee to the local regulatory authority for 17 the local government in which the applicant desires to operate the marijuana 18 establishment, unless the local government has not designated a local regulatory 19 authority under [PURSUANT TO] AS 17.38.110(c). 20 * Sec. 10. AS 17.38.100(d) is amended to read: 21 (d) Within [45 TO] 90 days after receiving an application or renewal 22 application, the board shall issue an annual license [REGISTRATION] to the 23 applicant unless the board finds the applicant is not in compliance with regulations 24 enacted under [PURSUANT TO] AS 17.38.090 or the board is notified by the 25 relevant local government that the applicant is not in compliance with ordinances and 26 regulations adopted under [MADE PURSUANT TO] AS 17.38.110 and in effect at 27 the time of application. 28 * Sec. 11. AS 17.38.100(e) is amended to read: 29 (e) If a local government has enacted a numerical limit on the number of 30 marijuana establishments and a greater number of applicants seek licensure 31 [REGISTRATIONS], the board shall solicit and consider input from the local
01 regulatory authority as to the local government's preference or preferences for 02 licensing [REGISTRATION]. 03 * Sec. 12. AS 17.38.100(g) is amended to read: 04 (g) Every marijuana establishment license must [REGISTRATION SHALL] 05 specify the location where the marijuana establishment will operate. A separate 06 license is [REGISTRATION SHALL BE] required for each location at which a 07 marijuana establishment operates. 08 * Sec. 13. AS 17.38.100 is amended by adding new subsections to read: 09 (i) A license issued under this section does not authorize a marijuana 10 establishment to manufacture, deliver, possess, possess with intent to manufacture or 11 deliver, or display marijuana concentrates or products containing marijuana 12 concentrates. 13 (j) The board may by regulation establish different types of licenses or license 14 endorsements. 15 (k) A marijuana retail store license issued under this section does not authorize 16 the sale, offering for sale, furnishing, or delivery of alcoholic beverages on licensed 17 premises. 18 (l) A license issued to a marijuana product manufacturing facility does not 19 authorize a marijuana product manufacturing facility to combine marijuana with 20 tobacco, nicotine, or alcohol, or a product containing tobacco, nicotine, or alcohol. 21 * Sec. 14. AS 17.38.110(c) is amended to read: 22 (c) A local government may designate a local regulatory authority that is 23 responsible for processing applications submitted for a license [REGISTRATION] to 24 operate a marijuana establishment within the boundaries of the local government. The 25 local government may provide that the local regulatory authority may issue licenses if 26 [SUCH REGISTRATIONS SHOULD] the issuance by the local government become 27 necessary because of a failure by the board to adopt regulations under [PURSUANT 28 TO] AS 17.38.090 or to accept or process applications under [IN ACCORDANCE 29 WITH] AS 17.38.100. 30 * Sec. 15. AS 17.38.110(d) is amended to read: 31 (d) A local government may establish procedures for the issuance, suspension,
01 and revocation of a license [REGISTRATION] issued by the local government in 02 accordance with (f) [OF THIS SECTION] or (g) of this section. These procedures 03 shall be subject to all requirements of AS 44.62 (Administrative Procedure Act). 04 * Sec. 16. AS 17.38.110(e) is amended to read: 05 (e) A local government may establish a schedule of annual operating, 06 licensing [REGISTRATION], and application fees for marijuana establishments. The 07 [, PROVIDED, THE] application fee is [SHALL ONLY BE] due only if an 08 application is submitted to a local government in accordance with (f) of this section, 09 and a license [REGISTRATION] fee is [SHALL ONLY BE] due only if a license 10 [REGISTRATION] is issued by a local government in accordance with (f) [OF THIS 11 SECTION] or (g) of this section. 12 * Sec. 17. AS 17.38.110(f) is amended to read: 13 (f) If the board does not issue a license [REGISTRATION] to an applicant 14 within 90 days after [OF] receipt of the application filed in accordance with 15 AS 17.38.100 and does not notify the applicant of the specific, permissible reason for 16 its denial, in writing and within that [SUCH] time period, or if the board has adopted 17 regulations under [PURSUANT TO] AS 17.38.090 and has accepted applications 18 under [PURSUANT TO] AS 17.38.100 but has not issued any licenses 19 [REGISTRATIONS] by 15 months after the effective date of this Act, the applicant 20 may resubmit its application directly to the local regulatory authority under [, 21 PURSUANT TO] (c) of this section, and the local regulatory authority may issue an 22 annual license [REGISTRATION] to the applicant. If an application is submitted to a 23 local regulatory authority under this subsection, the board shall forward to the local 24 regulatory authority the application fee paid by the applicant to the board upon request 25 by the local regulatory authority. 26 * Sec. 18. AS 17.38.110(g) is amended to read: 27 (g) If the board does not adopt regulations required by AS 17.38.090, an 28 applicant may submit an application directly to a local regulatory authority after [ONE 29 YEAR AFTER] February 24, 2016, [2015] and the local regulatory authority may 30 issue an annual license [REGISTRATION] to the applicant. 31 * Sec. 19. AS 17.38.110(h) is amended to read:
01 (h) A local regulatory authority issuing a license [REGISTRATION] to an 02 applicant shall do so within 90 days after [OF] receipt of the submitted or resubmitted 03 application unless the local regulatory authority finds and notifies the applicant that 04 the applicant is not in compliance with ordinances and regulations made under 05 [PURSUANT TO] (b) of this section in effect at the time the application is submitted 06 to the local regulatory authority. The local government shall notify the board if an 07 annual license [REGISTRATION] has been issued to the applicant. 08 * Sec. 20. AS 17.38.110(i) is amended to read: 09 (i) A license [REGISTRATION] issued by a local government in accordance 10 with (f) [OF THIS SECTION] or (g) of this section has [SHALL HAVE] the same 11 force and effect as a license [REGISTRATION] issued by the board in accordance 12 with AS 17.38.100. The holder of a license is [SUCH REGISTRATION SHALL] not 13 [BE] subject to regulation or enforcement by the board during the term of that license 14 [REGISTRATION]. 15 * Sec. 21. 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 local government 18 of a new application submitted to the board under [PURSUANT TO] AS 17.38.100. 19 * Sec. 22. AS 17.38.110(k) is amended to read: 20 (k) A subsequent or renewed license [REGISTRATION] may be issued under 21 (g) of this section on an annual basis if the board has not adopted regulations required 22 by AS 17.38.090 at least 90 days before [PRIOR TO] the date on [UPON] which the 23 [SUCH] subsequent or renewed license [REGISTRATION] would be effective or if 24 the board has adopted regulations under [PURSUANT TO] AS 17.38.090 but has not, 25 at least 90 days after the adoption of the [SUCH] regulations, issued licenses under 26 [REGISTRATIONS PURSUANT TO] AS 17.38.100. 27 * Sec. 23. AS 17.38.900 is amended by adding a new paragraph to read: 28 (15) "marijuana concentrates" means an oil, liquid, or other substance 29 created by extracting cannabinoids from marijuana for the purpose of increasing the 30 strength or proportion of the cannabinoids. 31 * Sec. 24. AS 43.61.030(b) is amended to read:
01 (b) If a marijuana cultivation facility fails to pay the tax to the state, the 02 marijuana cultivation facility's license [REGISTRATION] may be revoked in 03 accordance with procedures established under AS 17.38.090(a)(1). 04 * Sec. 25. AS 17.38.100(i) is repealed on the earlier of the following: 05 (1) November 24, 2016; or 06 (2) the date the director of the Alcoholic Beverage Control Board notifies the 07 revisor of statutes that regulations adopted under AS 17.38.090(c) have taken effect. 08 * Sec. 26. This Act takes effect immediately under AS 01.10.070(c).