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