SCS CSHB 75(JUD): "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; relating to established villages and to local option elections regarding the operation of marijuana establishments; and providing for an effective date."
00 SENATE CS FOR 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; relating to established villages and to local option elections regarding the 05 operation of marijuana establishments; and providing for an 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 five 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 electronically 19 [IMMEDIATELY] forward a copy of each application and half of the registration 20 application fee to the local regulatory authority for the municipality [LOCAL 21 GOVERNMENT] in which the applicant desires to operate the marijuana 22 establishment, unless the municipality [LOCAL GOVERNMENT] has not designated 23 a local regulatory authority under [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 receives a protest from a 29 municipality under AS 17.38.105 [IS NOTIFIED BY THE RELEVANT LOCAL 30 GOVERNMENT THAT THE APPLICANT IS NOT IN COMPLIANCE WITH 31 ORDINANCES AND REGULATIONS MADE PURSUANT TO AS 17.38.110 AND
01 IN EFFECT AT THE TIME OF APPLICATION]. 02 * Sec. 8. AS 17.38.100(e) is amended to read: 03 (e) If a municipality [LOCAL GOVERNMENT] has enacted a numerical 04 limit on the number of marijuana establishments and a greater number of applicants 05 seek registrations, the board shall solicit and consider input received from a 06 municipality under AS 17.38.105 [FROM THE LOCAL REGULATORY 07 AUTHORITY AS TO THE LOCAL GOVERNMENT'S PREFERENCE OR 08 PREFERENCES FOR REGISTRATION]. 09 * Sec. 9. AS 17.38 is amended by adding a new section to read: 10 Sec. 17.38.105. Protest and review of registration or renewal. (a) A 11 municipality may protest the issuance or renewal of a registration by sending the board 12 and the applicant a protest and the reasons for the protest within 60 days after receipt 13 by the municipality from the board of notice of the filing of the application. The board 14 may not accept a protest received after the 60-day period, and, in no event, may a 15 protest cause the board to reconsider an approved renewal of a registration. The board 16 shall consider a protest and testimony received at a hearing conducted under (d)(1) or 17 (2) of this section when it considers the application or continued operation, and the 18 protest and the record of the hearing conducted under (d)(1) or (2) of this section shall 19 be kept as part of the board's permanent record of its review. If an application or 20 continued operation is protested, the board shall deny the application or continued 21 operation unless the board finds that the protest is arbitrary, capricious, or 22 unreasonable. 23 (b) 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 (d)(1) or (2) of this section when it considers 26 the application or continued operation. The recommended conditions and the record of 27 the hearing conducted under (d)(1) or (2) of this section shall be kept as part of the 28 board's permanent record of its review. If the municipality recommends conditions, 29 the board 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 (c) 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 (d) 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 send notice of a hearing conducted under this subsection 10 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. 10. 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 through the enactment of an ordinance or 22 by a voter initiative. An established village may prohibit the operation of 23 marijuana establishments by a voter initiative as provided in AS 17.38.200. 24 * Sec. 11. AS 17.38.110(b) is amended to read: 25 (b) A municipality [LOCAL GOVERNMENT] may adopt [ENACT] 26 ordinances or regulations not in conflict with this chapter or with regulations adopted 27 under [ENACTED PURSUANT TO] this chapter, governing the time, place, manner, 28 and number of marijuana establishment operations. A municipality with power to 29 establish civil and criminal penalties [LOCAL GOVERNMENT] may establish civil 30 and criminal penalties for violation of an ordinance or regulation governing the time, 31 place, and manner of a marijuana establishment that may operate in the municipality
01 [SUCH LOCAL GOVERNMENT]. 02 * Sec. 12. AS 17.38.110(c) is amended to read: 03 (c) A municipality [LOCAL GOVERNMENT] may designate a local 04 regulatory authority that is responsible for processing applications submitted for a 05 registration to operate a marijuana establishment within the boundaries of the 06 municipality [LOCAL GOVERNMENT]. The municipality [LOCAL 07 GOVERNMENT] may provide that the local regulatory authority may issue [SUCH] 08 registrations should the issuance by the municipality [LOCAL GOVERNMENT] 09 become necessary because of a failure by the board to adopt regulations under 10 [PURSUANT TO] AS 17.38.090 or to accept or process applications in accordance 11 with AS 17.38.100. 12 * Sec. 13. AS 17.38.110(d) is amended to read: 13 (d) A municipality [LOCAL GOVERNMENT] may establish procedures for 14 the issuance, suspension, and revocation of a registration issued by the municipality 15 [LOCAL GOVERNMENT] in accordance with (f) [OF THIS SECTION] or (g) of this 16 section. These procedures shall be consistent with the [SUBJECT TO ALL] 17 requirements of AS 44.62 (Administrative Procedure Act). 18 * Sec. 14. AS 17.38.110(e) is amended to read: 19 (e) A municipality [LOCAL GOVERNMENT] may establish a schedule of 20 annual operating, registration, and application fees for marijuana establishments, 21 provided, the application fee is [SHALL ONLY BE] due only if an application is 22 submitted to a municipality [LOCAL GOVERNMENT] in accordance with (f) of this 23 section and a registration fee is [SHALL ONLY BE] due only if a registration is 24 issued by a municipality [LOCAL GOVERNMENT] in accordance with (f) [OF 25 THIS SECTION] or (g) of this section. 26 * Sec. 15. AS 17.38.110(h) is amended to read: 27 (h) A local regulatory authority issuing a registration to an applicant shall do 28 so within 90 days after [OF] receipt of the submitted or resubmitted application unless 29 the local regulatory authority finds and notifies the applicant that the applicant is not 30 in compliance with ordinances and regulations adopted under [MADE PURSUANT 31 TO] (b) of this section in effect at the time the application is submitted to the local
01 regulatory authority. The municipality [LOCAL GOVERNMENT] shall notify the 02 board if an annual registration has been issued to the applicant. 03 * Sec. 16. AS 17.38.110(i) is amended to read: 04 (i) A registration issued by a municipality [LOCAL GOVERNMENT] in 05 accordance with (f) [OF THIS SECTION] or (g) of this section shall have the same 06 force and effect as a registration issued by the board in accordance with AS 17.38.100. 07 The holder of the [SUCH] registration is [SHALL NOT BE] subject to state 08 regulation or enforcement [BY THE BOARD] during the term of that registration. 09 * Sec. 17. AS 17.38.110(j) is amended to read: 10 (j) A subsequent or renewed registration may be issued under (f) of this 11 section on an annual basis only upon resubmission to the municipality [LOCAL 12 GOVERNMENT] of a new application submitted to the board under [PURSUANT 13 TO] AS 17.38.100. 14 * Sec. 18. AS 17.38.110(l) is amended to read: 15 (l) Nothing in this section limits the [SHALL LIMIT SUCH] relief [AS MAY 16 BE] available to an aggrieved party under AS 44.62 (Administrative Procedure Act) 17 or an ordinance consistent with AS 44.62. 18 * Sec. 19. AS 17.38.110 is amended by adding new subsections to read: 19 (m) A municipality that has not prohibited the operation of marijuana 20 cultivation facilities, marijuana product manufacturing facilities, marijuana testing 21 facilities, or retail marijuana stores under (a) of this section may create a local 22 advisory board to advise the municipality on issues related to licensing of marijuana 23 establishments and regulation of marijuana. 24 (n) Except as provided in AS 29, the exercise of the powers authorized by this 25 section by a borough may be exercised only on a nonareawide basis. In this 26 subsection, "nonareawide" means throughout the area of a borough outside all cities in 27 the borough. 28 * Sec. 20. AS 17.38 is amended by adding new sections to read: 29 Sec. 17.38.200. Local option. (a) If a majority of the voters voting on the 30 question vote to approve the option, an established village shall exercise a local option 31 to prohibit the operation of marijuana establishments.
01 (b) A ballot question to adopt a local option under this section must at least 02 contain language substantially similar to the following: "Shall (name of village) adopt 03 a local option to prohibit the operation of marijuana establishments? (yes or no)." 04 Sec. 17.38.210. Removal of local option. (a) If a majority of the voters voting 05 on the question vote to remove the option, an established village shall remove a local 06 option previously adopted under AS 17.38.200. The option is repealed effective the 07 first day of the month following certification of the results of the election. 08 (b) A ballot question to remove a local option under this section must at least 09 contain language substantially similar to the following: "Shall (name of village) 10 remove the local option currently in effect, that prohibits the operation of marijuana 11 establishments, so that there is no longer any local option in effect? (yes or no)." 12 (c) When issuing a registration in the area that has removed a local option, the 13 board shall give priority to an applicant who was formerly registered and whose 14 registration was not renewed because of the results of the previous local option 15 election. However, an applicant described in this subsection does not have a legal right 16 to registration, and the board is not required to approve the application. 17 Sec. 17.38.220. Effect on registrations of prohibition of marijuana 18 establishments. If a majority of voters vote to prohibit the operation of marijuana 19 establishments under AS 17.38.200, the board may not issue, renew, or transfer, 20 between persons or locations, a registration for a marijuana establishment located 21 within the perimeter of the established village. A registration that may not be renewed 22 because of a local option election held under AS 17.38.200 is void 90 days after the 23 results of the election are certified. A registration that expires during the 90 days after 24 the results of a local option election are certified may be extended, until it is void 25 under this section, by payment of a prorated portion of the annual registration fee. 26 Sec. 17.38.230. Prohibition of sale and manufacture after election. (a) If a 27 majority of the voters vote to prohibit the operation of marijuana establishments under 28 AS 17.38.200, a person may not knowingly sell or manufacture marijuana in the 29 established village. 30 (b) If there are registered establishments within the established village, the 31 prohibition on sale and manufacture is effective beginning 90 days after the results of
01 the election are certified. 02 (c) Nothing in this section prohibits the personal conduct authorized in 03 AS 17.38.020. 04 (d) A person who violates this section is guilty, upon conviction, of a class A 05 misdemeanor. Each violation is a separate offense. 06 Sec. 17.38.240. Procedure for local option elections. (a) An election to adopt 07 a local option under AS 17.38.200 or remove a local option under AS 17.38.210 shall 08 be conducted as required in this section. 09 (b) Upon receipt of a petition of 35 percent or more of the registered voters 10 residing within an established village, the lieutenant governor shall place on a separate 11 ballot at a special election the local option or removal of local option that constitutes 12 the subject of the petition. The lieutenant governor shall conduct the election under 13 AS 15. 14 (c) An election under (b) of this section to remove a local option may not be 15 conducted during the first 24 months after the local option was adopted or more than 16 once in a 36-month period. 17 (d) After a petition has been certified as sufficient to meet the requirements of 18 (b) of this section, another petition may not be filed or certified until after the question 19 presented in the first petition has been voted on. Only one local option question may 20 be presented in an election. 21 Sec. 17.38.250. Establishment of perimeter of established village. (a) 22 Except as provided under (b) and (c) of this section, for purposes of AS 17.38.200 and 23 17.38.220, the perimeter of an established village is a circle around the established 24 village that includes an area within a five-mile radius of the post office of the 25 established village. If the established village does not have a post office, the perimeter 26 of an established village is a circle around the established village that includes an area 27 within a five-mile radius of another site selected by the local governing body or by the 28 board if the established village does not have a local governing body. 29 (b) If the perimeter of an established village determined under (a) of this 30 section includes any area that is within the perimeter of another established village 31 and, if the other established village has
01 (1) also adopted a local option under AS 17.38.200, the local option of 02 the established village that is less restrictive applies in the overlapping area; 03 (2) not adopted a local option under AS 17.38.200, the local option 04 does not apply in the overlapping area. 05 (c) If the board determines that the perimeter of an established village as 06 provided under (a) and (b) of this section does not accurately reflect the perimeter of 07 the established village, the board may establish the perimeter of the established village 08 and the areas of overlapping perimeter described under (b) of this section for purposes 09 of applying a local option selected under this chapter. 10 Sec. 17.38.260. Notice of the results of a local option election. If a majority 11 of the voters vote to prohibit or remove a local option under AS 17.38.200 or 12 17.38.210, the lieutenant governor shall notify the board of the results of the election 13 immediately after the results are certified. The board shall immediately notify the 14 Department of Law and the Department of Public Safety of the results of the election. 15 Sec. 17.38.265. Bail forfeiture for certain offenses. The supreme court shall 16 establish by rule or order a schedule of bail amounts that may be forfeited without 17 court appearance for a violation of AS 17.38.030 - 17.38.050. 18 * Sec. 21. AS 17.38.900(5) is amended to read: 19 (5) "local regulatory authority" means the office or entity designated to 20 process marijuana establishment applications by a municipality [LOCAL 21 GOVERNMENT]; 22 * Sec. 22. AS 17.38.900(6) is amended to read: 23 (6) "marijuana" means all parts of the plant of the genus cannabis 24 whether growing or not, the seeds thereof, the resin extracted from any part of the 25 plant, and every compound, manufacture, [SALT,] derivative, mixture, or preparation 26 of the plant, its seeds, or its resin, including marijuana concentrate; "marijuana" does 27 not include fiber produced from the stalks, oil [,] or cake made from the seeds of the 28 plant, sterilized seed of the plant that [WHICH] is incapable of germination, or the 29 weight of any other ingredient combined with marijuana to prepare topical or oral 30 administrations, food, drink, or other products; 31 * Sec. 23. AS 17.38.900 is amended by adding new paragraphs to read:
01 (15) "dwelling" has the meaning given in AS 11.81.900; 02 (16) "established village" means an area that does not contain any part 03 of an incorporated city or another established village and that is an unincorporated 04 community that is in the unorganized borough and that has 25 or more permanent 05 residents; 06 (17) "manufacture" has the meaning given in AS 11.71.900; 07 (18) "public place" means a place to which the public or a substantial 08 group of persons has access and includes but is not limited to highways, transportation 09 facilities, schools, places of amusement or business, parks, playgrounds, prisons, and 10 hallways, lobbies, and other portions of apartment houses and hotels not constituting 11 rooms or apartments designed for actual residence. 12 * Sec. 24. AS 17.38.900(4) is repealed. 13 * Sec. 25. This Act takes effect immediately under AS 01.10.070(c).