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SCS CSHB 75(CRA): "An Act relating to the registration of marijuana establishments by municipalities; relating to the definition of 'marijuana'; clarifying standards for personal use of marijuana by persons 21 years of age or older; prohibiting the public consumption of marijuana; authorizing the registration of marijuana clubs; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 75(CRA) 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; and providing for an 05 effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 11.71.900(14) is amended to read: 08 (14) "marijuana" means all parts [THE SEEDS, AND LEAVES, 09 BUDS, AND FLOWERS] of the plant (genus) Cannabis, whether growing or not, the 10 seeds thereof, [; IT DOES NOT INCLUDE] the resin [OR OIL] extracted from any 11 part of the plant, and [PLANTS, OR] any compound, manufacture, [SALT,] 12 derivative, mixture, or preparation of the plant, its seeds, or its resin, including 13 marijuana concentrate; "marijuana" [FROM THE RESIN OR OIL, INCLUDING

01 HASHISH, HASHISH OIL, AND NATURAL OR SYNTHETIC 02 TETRAHYDROCANNABINOL; IT] does not include [THE STALKS OF THE 03 PLANT,] fiber produced from the stalks, oil or cake made from the seeds of the plant, 04 [ANY OTHER COMPOUND, MANUFACTURE, SALT, DERIVATIVE, 05 MIXTURE, OR PREPARATION OF THE STALKS, FIBER, OIL OR CAKE, OR 06 THE] sterilized seed of the plant that [WHICH] is incapable of germination, or the 07 weight of any other ingredient combined with marijuana to prepare topical or 08 oral administrations, food, drink, or other products; 09 * Sec. 2. AS 17.38.020 is amended to read: 10 Sec. 17.38.020. Personal use of marijuana. Notwithstanding any other 11 provision of law, except as otherwise provided in this chapter, the following acts, by 12 persons 21 years of age or older, are lawful and are not [SHALL NOT BE A] criminal 13 or civil offenses [OFFENSE] under Alaska law or the law of any political subdivision 14 of Alaska or bases [BE A BASIS] for seizure or forfeiture of assets under Alaska law: 15 (1) possessing, using, displaying, purchasing, or transporting 16 marijuana accessories or one ounce or less of marijuana; 17 (2) possessing, growing, processing, or transporting not [NO] more 18 than six marijuana plants, with three or fewer being mature, flowering plants, and 19 possession of the marijuana produced by the plants on the premises where the plants 20 were grown, except that not more than 24 marijuana plants, with 12 or fewer 21 being mature, flowering plants, may be present in a single dwelling regardless of 22 the number of persons 21 years of age or older residing in the dwelling; 23 (3) transferring one ounce or less of marijuana and up to six immature 24 marijuana plants to a person who is 21 years of age or older without remuneration; 25 (4) consumption of marijuana, except that nothing in this chapter 26 permits [SHALL PERMIT] the consumption of marijuana in a public place; and 27 (5) assisting, aiding, or supporting another person who is 21 years of 28 age or older in any of the acts described in (1) - (4) of this section. 29 * Sec. 3. AS 17.38.020 is amended by adding a new subsection to read: 30 (b) In this section, assisting is limited to the quantities described in (a) of this 31 section and does not include

01 (1) using, displaying, purchasing, or transporting marijuana in excess 02 of the amount allowed in this section; 03 (2) possessing, growing, processing, or transporting marijuana plants 04 in excess of the amount allowed in this section; or 05 (3) growing marijuana plants for another person in a place other than 06 that other person's dwelling. 07 * Sec. 4. AS 17.38.040 is amended to read: 08 Sec. 17.38.040. Public consumption banned, penalty. It is unlawful to 09 consume marijuana in a public place. A person who violates this section is guilty of a 10 violation punishable by a fine of up to $100. 11 * Sec. 5. AS 17.38.070(f) is amended to read: 12 (f) Nothing in this section prevents the imposition of penalties on [UPON] 13 marijuana establishments for violating this chapter or rules adopted by the board or a 14 municipality under [LOCAL GOVERNMENTS PURSUANT TO] this chapter. 15 * Sec. 6. AS 17.38.100(c) is amended to read: 16 (c) Within 10 days after receipt of [UPON RECEIVING] an application or 17 renewal application for a marijuana establishment, the board shall notify the 18 municipality of the board's receipt of the application and [IMMEDIATELY] 19 forward a copy of each application and half of the registration application fee to the 20 local regulatory authority for the municipality [LOCAL GOVERNMENT] in which 21 the applicant desires to operate the marijuana establishment, unless the municipality 22 [LOCAL GOVERNMENT] has not designated a local regulatory authority under 23 [PURSUANT TO] AS 17.38.110(c). 24 * Sec. 7. AS 17.38.100(d) is amended to read: 25 (d) Within [45 TO] 90 days after receiving an application or renewal 26 application, the board shall issue an annual registration to the applicant unless the 27 board finds the applicant is not in compliance with regulations adopted under 28 [ENACTED PURSUANT TO] AS 17.38.090 or the board is notified by the relevant 29 municipality [LOCAL GOVERNMENT] that the applicant is not in compliance with 30 ordinances enacted and regulations adopted under [MADE PURSUANT TO] 31 AS 17.38.110 and in effect at the time of application.

01 * Sec. 8. AS 17.38 is amended by adding a new section to read: 02 Sec. 17.38.105. Protest and review of registration or renewal. (a) A 03 municipality may protest the issuance or renewal of a registration by sending the board 04 and the applicant a protest and the reasons for the protest within 60 days after receipt 05 by the municipality from the board of notice of the filing of the application. The board 06 may not accept a protest received after the 60-day period, and, in no event, may a 07 protest cause the board to reconsider an approved renewal of a registration. The board 08 shall consider a protest and testimony received at a hearing conducted under (e)(1) or 09 (2) of this section when it considers the application or continued operation, and the 10 protest and the record of the hearing conducted under (e)(1) or (2) of this section shall 11 be kept as part of the board's permanent record of its review. If an application or 12 continued operation is protested, the board shall deny the application or continued 13 operation unless the board finds that the protest is arbitrary, capricious, or 14 unreasonable. 15 (b) If the permanent residents residing outside of but within two miles of an 16 incorporated city or an established village wish to protest the issuance or renewal of a 17 registration within the city or village, they shall file with the board a petition meeting 18 the requirements of (e)(3) of this section requesting a public hearing within 30 days 19 after the receipt of notice required under AS 17.38.100(c). The board shall consider 20 testimony received at a hearing conducted under (e)(3) of this section when it 21 considers the application, and the record of a hearing conducted under (e)(3) of this 22 section shall be retained as part of the board's permanent record of its review of the 23 application. 24 (c) A municipality may recommend that a registration be issued or renewed 25 with conditions. The board shall consider recommended conditions and testimony 26 received at a hearing conducted under (e)(1) or (2) of this section when it considers the 27 application or continued operation. The recommended conditions and the record of the 28 hearing conducted under (e)(1) or (2) of this section shall be kept as part of the board's 29 permanent record of its review. If the municipality recommends conditions, the board 30 shall impose the recommended conditions unless the board finds that the 31 recommended conditions are arbitrary, capricious, or unreasonable. If a condition

01 recommended by a municipality is imposed on a registrant, the municipality shall 02 assume responsibility for monitoring compliance with the condition, except as 03 otherwise provided by the board. 04 (d) In addition to the right to protest under (a) of this section, a municipality 05 may notify the board that the municipality has determined that a registrant has violated 06 a provision of this chapter or a condition imposed on the registrant by the board. 07 Unless the board finds that the municipality's determination is arbitrary, capricious, or 08 unreasonable, the board shall prepare the determination as an accusation against the 09 registrant under AS 44.62.360 and conduct proceedings to resolve the matter. 10 (e) The board 11 (1) may, except as provided in (2) of this subsection, hold a hearing to 12 ascertain the basis of a protest to an application by a municipality; 13 (2) shall hold a public hearing if a protest to the issuance or renewal of 14 a registration made by a municipality is based on a question of law; 15 (3) shall hold a public hearing on the question of whether the issuance 16 or renewal of a registration in a city or village would be in the public interest if a 17 petition containing the signatures of 35 percent of the adult residents having a 18 permanent place of abode outside of but within two miles of an incorporated city or an 19 established village is filed with the board; 20 (4) shall send notice of a hearing conducted under this subsection 20 21 days before the hearing to each community council established within the municipality 22 and to each nonprofit community organization entitled to notification under 23 AS 17.38.100(c). 24 * Sec. 9. AS 17.38.110(a) is amended to read: 25 (a) A municipality [LOCAL GOVERNMENT] may prohibit the operation of 26 marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana 27 testing facilities, [OR] retail marijuana stores, or marijuana clubs through the 28 enactment of an ordinance or by a voter initiative. 29 * Sec. 10. AS 17.38.110(b) is amended to read: 30 (b) A municipality [LOCAL GOVERNMENT] may adopt [ENACT] 31 ordinances or regulations not in conflict with this chapter or with regulations adopted

01 under [ENACTED PURSUANT TO] this chapter, governing the time, place, manner, 02 and number of marijuana establishment operations. A municipality with power to 03 establish civil and criminal penalties [LOCAL GOVERNMENT] may establish civil 04 and criminal penalties for violation of an ordinance or regulation governing the time, 05 place, and manner of a marijuana establishment that may operate in the municipality 06 [SUCH LOCAL GOVERNMENT]. 07 * Sec. 11. AS 17.38.110(c) is amended to read: 08 (c) A municipality [LOCAL GOVERNMENT] may designate a local 09 regulatory authority that is responsible for processing applications submitted for a 10 registration to operate a marijuana establishment within the boundaries of the 11 municipality [LOCAL GOVERNMENT]. The municipality [LOCAL 12 GOVERNMENT] may provide that the local regulatory authority may issue [SUCH] 13 registrations should the issuance by the municipality [LOCAL GOVERNMENT] 14 become necessary because of a failure by the board to adopt regulations under 15 [PURSUANT TO] AS 17.38.090 or to accept or process applications in accordance 16 with AS 17.38.100. 17 * Sec. 12. AS 17.38.110(d) is amended to read: 18 (d) A municipality [LOCAL GOVERNMENT] may establish procedures for 19 the issuance, suspension, and revocation of a registration issued by the municipality 20 [LOCAL GOVERNMENT] in accordance with (f) [OF THIS SECTION] or (g) of this 21 section. These procedures shall be consistent with the [SUBJECT TO ALL] 22 requirements of AS 44.62 (Administrative Procedure Act). 23 * Sec. 13. AS 17.38.110(e) is amended to read: 24 (e) A municipality [LOCAL GOVERNMENT] may establish a schedule of 25 annual operating, registration, and application fees for marijuana establishments, 26 provided, the application fee is [SHALL ONLY BE] due only if an application is 27 submitted to a municipality [LOCAL GOVERNMENT] in accordance with (f) of this 28 section and a registration fee is [SHALL ONLY BE] due only if a registration is 29 issued by a municipality [LOCAL GOVERNMENT] in accordance with (f) [OF 30 THIS SECTION] or (g) of this section. 31 * Sec. 14. AS 17.38.110(h) is amended to read:

01 (h) A local regulatory authority issuing a registration to an applicant shall do 02 so within 90 days after [OF] receipt of the submitted or resubmitted application unless 03 the local regulatory authority finds and notifies the applicant that the applicant is not 04 in compliance with ordinances and regulations adopted under [MADE PURSUANT 05 TO] (b) of this section in effect at the time the application is submitted to the local 06 regulatory authority. The municipality [LOCAL GOVERNMENT] shall notify the 07 board if an annual registration has been issued to the applicant. 08 * Sec. 15. AS 17.38.110(i) is amended to read: 09 (i) A registration issued by a municipality [LOCAL GOVERNMENT] in 10 accordance with (f) [OF THIS SECTION] or (g) of this section shall have the same 11 force and effect as a registration issued by the board in accordance with AS 17.38.100. 12 The holder of the [SUCH] registration is [SHALL NOT BE] subject to state 13 regulation or enforcement [BY THE BOARD] during the term of that registration. 14 * Sec. 16. AS 17.38.110(j) is amended to read: 15 (j) A subsequent or renewed registration may be issued under (f) of this 16 section on an annual basis only upon resubmission to the municipality [LOCAL 17 GOVERNMENT] of a new application submitted to the board under [PURSUANT 18 TO] AS 17.38.100. 19 * Sec. 17. AS 17.38.110(l) is amended to read: 20 (l) Nothing in this section limits the [SHALL LIMIT SUCH] relief [AS MAY 21 BE] available to an aggrieved party under AS 44.62 (Administrative Procedure Act) 22 or an ordinance consistent with AS 44.62. 23 * Sec. 18. AS 17.38.110 is amended by adding new subsections to read: 24 (m) A municipality that has not prohibited the operation of marijuana 25 cultivation facilities, marijuana product manufacturing facilities, marijuana testing 26 facilities, retail marijuana stores, or marijuana clubs under (a) of this section may 27 create a local advisory board to advise the municipality on issues related to licensing 28 of marijuana establishments and regulation of marijuana. 29 (n) Except as provided in AS 29, the exercise of the powers authorized by this 30 section by a borough may be exercised only on a nonareawide basis. In this 31 subsection, "nonareawide" means throughout the area of a borough outside all cities in

01 the borough. 02 * Sec. 19. AS 17.38.900(5) is amended to read: 03 (5) "local regulatory authority" means the office or entity designated to 04 process marijuana establishment applications by a municipality [LOCAL 05 GOVERNMENT]; 06 * Sec. 20. AS 17.38.900(6) is amended to read: 07 (6) "marijuana" means all parts of the plant of the genus cannabis 08 whether growing or not, the seeds thereof, the resin extracted from any part of the 09 plant, and every compound, manufacture, [SALT,] derivative, mixture, or preparation 10 of the plant, its seeds, or its resin, including marijuana concentrate; "marijuana" does 11 not include fiber produced from the stalks, oil, or cake made from the seeds of the 12 plant, sterilized seed of the plant that [WHICH] is incapable of germination, or the 13 weight of any other ingredient combined with marijuana to prepare topical or oral 14 administrations, food, drink, or other products; 15 * Sec. 21. AS 17.38.900(9) is amended to read: 16 (9) "marijuana establishment" means a marijuana cultivation facility, a 17 marijuana testing facility, a marijuana product manufacturing facility, [OR] a retail 18 marijuana store, or a marijuana club; 19 * Sec. 22. AS 17.38.900 is amended by adding new paragraphs to read: 20 (15) "dwelling" has the meaning given in AS 11.81.900; 21 (16) "established village" means an area that does not contain any part 22 of an incorporated city or another established village and that is an unincorporated 23 community that is in the unorganized borough and that has 25 or more permanent 24 residents; 25 (17) "marijuana club" means an entity registered to allow consumption 26 of marijuana by paying members of the club on the registered premises and whose 27 members are 21 years of age or older; 28 (18) "public place" means a place to which the public or a substantial 29 group of persons has access and includes but is not limited to highways, transportation 30 facilities, schools, places of amusement or business, parks, playgrounds, prisons, and 31 hallways, lobbies, and other portions of apartment houses and hotels not constituting

01 rooms or apartments designed for actual residence; "public place" does not include a 02 marijuana club. 03 * Sec. 23. AS 17.38.100(d), 17.38.100(e), and 17.38.900(4) are repealed. 04 * Sec. 24. This Act takes effect immediately under AS 01.10.070(c).