txt

HB 117: "An Act relating to cannabis and cannabis seeds; relating to the regulation of cannabis and cannabis facilities; relating to criminal law; relating to controlled substances; relating to misbranded drugs and devices; relating to medical uses of cannabis; relating to cannabis taxes; relating to the duties of the Department of Commerce, Community, and Economic Development and the Department of Environmental Conservation; renaming the Marijuana Control Board the Cannabis Control Board; relating to the Cannabis Control Board; repealing the industrial hemp program; relating to the cannabis use education and treatment program; relating to adulterated foods; and providing for an effective date."

00 HOUSE BILL NO. 117 01 "An Act relating to cannabis and cannabis seeds; relating to the regulation of cannabis 02 and cannabis facilities; relating to criminal law; relating to controlled substances; 03 relating to misbranded drugs and devices; relating to medical uses of cannabis; relating 04 to cannabis taxes; relating to the duties of the Department of Commerce, Community, 05 and Economic Development and the Department of Environmental Conservation; 06 renaming the Marijuana Control Board the Cannabis Control Board; relating to the 07 Cannabis Control Board; repealing the industrial hemp program; relating to the 08 cannabis use education and treatment program; relating to adulterated foods; and 09 providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. AS 03.20.150 is amended to read: 12 Sec. 03.20.150. Applicability of other laws. Nothing in AS 03.20.110 -

01 03.20.150 authorizes a person to 02 (1) violate 7 U.S.C. 2321 - 2582 (Plant Variety Protection Act of 03 1970); 04 (2) give, exchange, or receive a seed 05 (A) from a plant that is regulated as 06 (i) a controlled substance under AS 11.71 or a drug 07 under AS 17.20; or 08 (ii) cannabis [MARIJUANA] under AS 17.38; or 09 (B) patented under 35 U.S.C. 161 - 164 (Plant Patent Act of 10 1930); 11 (3) possess, give, or exchange seed that is considered to be noxious, 12 invasive, or toxic under AS 03.05 or AS 44.37 or a regulation adopted under those 13 chapters. 14 * Sec. 2. AS 04.06.070 is amended to read: 15 Sec. 04.06.070. Appointment and removal of director. The governor shall 16 appoint a director to serve as the executive officer of the board and the Cannabis 17 [MARIJUANA] Control Board created under AS 17.38.080. The director may be 18 removed by a majority vote of the full membership of the board and a majority vote of 19 the full membership of the Cannabis [MARIJUANA] Control Board. The governor 20 may remove the director for misconduct, misfeasance, or malfeasance in office. The 21 governor may not remove the director unless the director is given a copy of the 22 charges and afforded an opportunity to be publicly heard, in person or by counsel, in 23 defense against the charges upon at least 10 days' notice. If the director is removed for 24 cause, the governor shall file with the lieutenant governor a complete statement of all 25 charges made against the director and the findings based on the charges, together with 26 a complete record of any hearing. 27 * Sec. 3. AS 11.71.040(a) is amended to read: 28 (a) Except as authorized in AS 17.30 and AS 17.38, a person commits the 29 crime of misconduct involving a controlled substance in the fourth degree if the person 30 (1) manufactures or delivers any amount of a schedule IVA or VA 31 controlled substance or possesses any amount of a schedule IVA or VA controlled

01 substance with intent to manufacture or deliver; 02 (2) manufactures or delivers, or possesses with the intent to 03 manufacture or deliver, one or more preparations, compounds, mixtures, or substances 04 of an aggregate weight of six ounces [ONE OUNCE] or more containing a schedule 05 VIA controlled substance; 06 (3) possesses any amount of a schedule IA controlled substance listed 07 in AS 11.71.140(e); 08 (4) possesses a schedule IIIA, IVA, VA, or VIA controlled substance 09 (A) with reckless disregard that the possession occurs 10 (i) on or within 500 feet of school grounds; or 11 (ii) at or within 500 feet of a recreation or youth center; 12 or 13 (B) on a school bus; 14 (5) knowingly keeps or maintains any store, shop, warehouse, 15 dwelling, building, vehicle, boat, aircraft, or other structure or place that is used for 16 keeping or distributing controlled substances in violation of a felony offense under this 17 chapter or AS 17.30; 18 (6) makes, delivers, or possesses a punch, die, plate, stone, or other 19 thing that prints, imprints, or reproduces a trademark, trade name, or other identifying 20 mark, imprint, or device of another or any likeness of any of these on a drug, drug 21 container, or labeling so as to render the drug a counterfeit substance; 22 (7) knowingly uses in the course of the manufacture or distribution of a 23 controlled substance a registration number that is fictitious, revoked, suspended, or 24 issued to another person; 25 (8) knowingly furnishes false or fraudulent information in or omits 26 material information from any application, report, record, or other document required 27 to be kept or filed under AS 17.30; 28 (9) obtains possession of a controlled substance by misrepresentation, 29 fraud, forgery, deception, or subterfuge; 30 (10) affixes a false or forged label to a package or other container 31 containing any controlled substance;

01 (11) [REPEALED] 02 (12) violates AS 11.71.050(a)(4) and, within the preceding 10 years, 03 has been previously convicted of a crime under AS 11.71.050(a)(4), or a law or 04 ordinance in this or another jurisdiction with elements similar to AS 11.71.050(a)(4). 05 * Sec. 4. AS 11.71.050(a) is amended to read: 06 (a) Except as authorized in AS 17.30 and AS 17.38, a person commits the 07 crime of misconduct involving a controlled substance in the fifth degree if the person 08 (1) manufactures or delivers, or possesses with the intent to 09 manufacture or deliver, one or more preparations, compounds, mixtures, or substances 10 of an aggregate weight of less than six ounces [ONE OUNCE] containing a schedule 11 VIA controlled substance; 12 (2) [REPEALED] 13 (3) fails to make, keep, or furnish any record, notification, order form, 14 statement, invoice, or information required under AS 17.30; 15 (4) under circumstances not proscribed under AS 11.71.030(a)(3), 16 11.71.040(a)(3), or 11.71.040(a)(4) possesses any amount of a schedule IA, IIA, IIIA, 17 IVA, or VA controlled substance; or 18 (5) under circumstances not proscribed under AS 11.71.040(a)(4), 19 possesses one or more preparations, compounds, mixtures, or substances of an 20 aggregate weight of six ounces [ONE OUNCE] or more containing a schedule VIA 21 controlled substance. 22 * Sec. 5. AS 11.71.060(a) is amended to read: 23 (a) Except as authorized in AS 17.30 or AS 17.38, a person commits the crime 24 of misconduct involving a controlled substance in the sixth degree if the person 25 (1) uses or displays any amount of a schedule VIA controlled 26 substance; 27 (2) possesses one or more preparations, compounds, mixtures, or 28 substances of an aggregate weight of 29 (A) less than six ounces [ONE OUNCE] containing a schedule 30 VIA controlled substance; 31 (B) [REPEALED]

01 (3) refuses entry into a premise for an inspection authorized under 02 AS 17.30. 03 * Sec. 6. AS 11.71.080 is amended to read: 04 Sec. 11.71.080. Aggregate weight of live cannabis [MARIJUANA] plants. 05 For purposes of calculating the aggregate weight of a live cannabis [MARIJUANA] 06 plant, the aggregate weight shall be one-sixth of the measured weight of the cannabis 07 [MARIJUANA] plant after the roots of the cannabis [MARIJUANA] plant have been 08 removed. 09 * Sec. 7. AS 11.71.125(f) is amended to read: 10 (f) The attorney general may not adopt an emergency regulation under this 11 section that schedules an alcoholic beverage as defined in AS 04.21.080, cannabis 12 [MARIJUANA] as defined in AS 17.38.900, or tobacco. 13 * Sec. 8. AS 11.71.190(b) is amended to read: 14 (b) Cannabis [MARIJUANA] is a schedule VIA controlled substance. 15 * Sec. 9. AS 11.71.900(14) is amended to read: 16 (14) "manufacture" 17 (A) means the production, preparation, propagation, 18 compounding, conversion, growing, or processing of a controlled substance, 19 either directly or indirectly by extraction from substances of natural origin, or 20 independently by means of chemical synthesis, or by a combination of 21 extraction and chemical synthesis; however, the growing of cannabis 22 [MARIJUANA] for personal use is not manufacturing; 23 (B) includes the preparation, compounding, packaging, 24 repackaging, labeling, or relabeling of a controlled substance or its container 25 unless done in conformity with applicable federal law 26 (i) by a practitioner as an incident to the practitioner's 27 administering or dispensing of a controlled substance in the course of 28 the practitioner's professional practice; or 29 (ii) by a practitioner, or by the practitioner's authorized 30 agent under the practitioner's supervision, for the purpose of, or as an 31 incident to, research, teaching, or chemical analysis and not for sale;

01 * Sec. 10. AS 11.81.900(b)(6) is amended to read: 02 (6) "cannabis" has the meaning given in AS 17.38.900 [ASCRIBED 03 TO IT IN AS 11.71.900(11), (12), AND (15)]; 04 * Sec. 11. AS 11.81.900(b)(23) is amended to read: 05 (23) "electronic smoking product" 06 (A) means 07 (i) any product containing or delivering nicotine or any 08 other substance intended for human consumption that can be used by a 09 person through inhalation of vapor or aerosol from the product, of any 10 size or shape, whether the product is manufactured, distributed, 11 marketed, or sold as an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 12 or any other product name or descriptor; or 13 (ii) a component, solution, alternative tobacco product, 14 e-liquid, e-juice, vapor product, flavoring, or other related product of an 15 electronic cigarette, electronic cigar, electronic cigarillo, electronic 16 pipe, or other similar device of any size or shape used for, or to assist 17 with, aerosolizing and inhaling chemical substances that may cause an 18 adverse effect on human health; 19 (B) does not include cannabis [MARIJUANA] as defined in 20 AS 11.71.900; 21 * Sec. 12. AS 12.62.400(a) is amended to read: 22 (a) To obtain a national criminal history record check for determining a 23 person's qualifications for a license, permit, registration, employment, or position, a 24 person shall submit the person's fingerprints to the department with the fee established 25 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 26 of Investigation to obtain a national criminal history record check of the person for the 27 purpose of evaluating a person's qualifications for 28 (1) a license or conditional contractor's permit to manufacture, sell, 29 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 30 under AS 04.11; 31 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage

01 loan originator under AS 06.60; 02 (3) admission to the Alaska Bar Association under AS 08.08; 03 (4) licensure as a collection agency operator under AS 08.24; 04 (5) a certificate of fitness to handle explosives under AS 08.52; 05 (6) licensure as a massage therapist under AS 08.61; 06 (7) licensure to practice nursing or certification as a nurse aide under 07 AS 08.68; 08 (8) certification as a real estate appraiser under AS 08.87; 09 (9) a position involving supervisory or disciplinary power over a minor 10 or dependent adult for which criminal justice information may be released under 11 AS 12.62.160(b)(9); 12 (10) a teacher certificate under AS 14.20; 13 (11) a registration or license to operate a cannabis [MARIJUANA] 14 establishment under AS 17.38; 15 (12) admittance to a police training program under AS 18.65.230 or for 16 certification as a police officer under AS 18.65.240 if that person's prospective 17 employer does not have access to a criminal justice information system; 18 (13) licensure as a security guard under AS 18.65.400 - 18.65.490; 19 (14) a concealed handgun permit under AS 18.65.700 - 18.65.790; 20 (15) licensure as an insurance producer, managing general agent, 21 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 22 broker, or independent adjuster under AS 21.27; 23 (16) serving and executing process issued by a court by a person 24 designated under AS 22.20.130; 25 (17) a school bus driver license under AS 28.15.046; 26 (18) licensure as an operator or an instructor for a commercial driver 27 training school under AS 28.17; 28 (19) registration as a broker-dealer, agent, investment adviser 29 representative, or investment adviser under AS 45.56.300 - 45.56.350; 30 (20) licensure, license renewal, certification, certification renewal, or 31 payment from the Department of Health of an individual and an entity subject to the

01 requirements for a criminal history check under AS 47.05.310, including 02 (A) a public home care provider described in AS 47.05.017; 03 (B) a provider of home and community-based waiver services 04 financed under AS 47.07.030(c); 05 (C) a case manager to coordinate community mental health 06 services under AS 47.30.530; 07 (D) an entity listed in AS 47.32.010(b) and (c), including an 08 owner, officer, director, member, partner, employee, volunteer, or contractor of 09 an entity; or 10 (E) an individual or entity not described in (A) - (D) of this 11 paragraph that is required by statute or regulation to be licensed or certified by 12 the Department of Health or that is eligible to receive payments, in whole or in 13 part, from the Department of Health to provide for the health, safety, and 14 welfare of persons who are served by the programs administered by the 15 Department of Health; 16 (21) employment as a village public safety officer under AS 18.65.672 17 or certification as a village public safety officer under AS 18.65.682; 18 (22) licensure, license renewal, certification, or certification renewal 19 by the Department of Family and Community Services of an individual or entity, or 20 payment from the Department of Family and Community Services to an individual or 21 entity, subject to the requirements for a criminal history check under AS 47.05.310 for 22 a foster home, child placement agency, and runaway shelter listed in as 47.32.010(c), 23 including an owner, officer, director, member, partner, employee, volunteer, or 24 contractor of an entity. 25 * Sec. 13. AS 17.20.020(e) is amended to read: 26 (e) Food is not adulterated under this section solely because it contains 27 cannabis or a cannabis product [INDUSTRIAL HEMP], as defined in AS 17.38.900 28 [AS 03.05.100, OR AN INDUSTRIAL HEMP PRODUCT]. 29 * Sec. 14. AS 17.20.090 is amended to read: 30 Sec. 17.20.090. Misbranded drugs and devices. A drug or device is 31 misbranded

01 (1) if its labeling is false or misleading in any particular; 02 (2) if it is in package form unless it bears a label containing (A) the 03 name and place of business of the manufacturer, packer, or distributor; and (B) an 04 accurate statement of the quantity of the contents in terms of weight, measure, or 05 numerical count; however, under (B) of this paragraph reasonable variations shall be 06 permitted and exemptions for small packages shall be established by regulations 07 adopted by the department; 08 (3) if a word, statement, or other information required by or under 09 authority of this chapter to appear on the label or labeling is not prominently placed 10 with conspicuousness as compared with other words, statements, designs, or devices, 11 in the labeling and in terms that [WHICH] render it likely to be read and understood 12 by the ordinary individual under customary conditions of the purchase and use; 13 (4) if it is for use by man and contains a quantity of the narcotic or 14 hypnotic substance alpha-eucaine, barbituric acid, beta-eucaine, bromal, cannabis, 15 carbromal, chloral, coca, cocaine, codeine, heroin, cannabis [MARIJUANA], 16 morphine, opium, paraldehyde, peyote, or sulphonmethane, or a chemical derivative of 17 any of them, which has been by the commissioner after investigation found to be and 18 by regulations under this chapter designated as habit forming; unless its label bears the 19 name, and quantity or proportion of the substance or derivative and in juxtaposition 20 with it the statement "Warning - May be habit forming"; 21 (5) if it is a drug and is not designated solely by a name recognized in 22 an official compendium unless its label bears (A) the common or usual name of the 23 drug; and (B) in case it is fabricated from two or more ingredients, the common or 24 usual name of each active ingredient, including the kind and quantity or proportion of 25 alcohol, and including, whether active or not, the name and quantity or proportion of 26 bromides, ether, chloroform, acetanilid, acetphenetidin, amidopyrine, antipyrine, 27 atropine, hyoscine, hyoscyamine, arsenic, digitalis glucosines, mercury, quabain, 28 strophanthin, strychnine, thyroid, or derivative or preparation of any of these 29 substances contained in them; however, to the extent that compliance with the 30 requirements of (B) of this paragraph is impracticable, exemptions shall be established 31 by regulations adopted by the department;

01 (6) unless its labeling bears (A) adequate directions for use; and (B) 02 adequate warnings against use in those pathological conditions or by children where 03 its use may be dangerous to health, or against unsafe dosage or methods or duration of 04 administration or application, in the manner and form necessary for the protection of 05 users; however, where a requirement of (A) of this paragraph as applied to a drug or 06 device is not necessary for the protection of the public health, the department shall 07 adopt regulations exempting the drug or device from these requirements; 08 (7) if it purports to be a drug the name of which is recognized in an 09 official compendium, unless it is packaged and labeled as prescribed in the 10 compendium; however, the method of packing may be modified with the consent of 11 the commissioner, and when a drug is recognized in both the United States 12 Pharmacopoeia and the Homeopathic Pharmacopoeia of the United States, it is subject 13 to the requirements of the United States Pharmacopoeia with respect to packaging and 14 labeling unless it is labeled and offered for sale as a homeopathic drug, in which case 15 it shall be subject to the provisions of the Homeopathic Pharmacopoeia of the United 16 States, and not to those of the United States Pharmacopoeia; 17 (8) if it has been found by the commissioner to be a drug liable to 18 deterioration, unless it is packaged in the form and manner and its label bears a 19 statement of the precautions the department by regulation requires as necessary for the 20 protection of public health; and no regulation shall be established for a drug 21 recognized in an official compendium until the commissioner has informed the 22 appropriate body charged with the revision of the compendium of the need for 23 packaging or labeling requirements and that body has failed within a reasonable time 24 to prescribe the requirements; 25 (9) if it is a drug and its container is made, formed, or filled so as to be 26 misleading or if it is an imitation of another drug; or if it is offered for sale under the 27 name of another drug; 28 (10) if it is dangerous to health when used in the dosage, or with the 29 frequency or duration prescribed, recommended, or suggested in its labeling; 30 (11) if (A) it is a drug sold at retail and contains any quantity of 31 aminopyrine, barbituric acid, cinchophen, pituitary, thyroid, or their derivatives, or (B)

01 it is a drug or device sold at retail and its label as originally packed bears a statement 02 that it is to be dispensed or sold only by or on the prescription of a physician, dentist, 03 or veterinarian, unless it is sold on a written prescription signed by a member of the 04 medical, dental, or veterinary profession licensed by law to administer the drug or 05 device, and its label as dispensed bears the name and place of business of the seller, 06 the serial number and date of the prescription, and the name of the member of the 07 medical, dental, or veterinary profession, and the prescription may [SHALL] not be 08 refilled except on the written authorization of the prescribing physician, dentist, or 09 veterinarian. 10 * Sec. 15. AS 17.37.010(a) is amended to read: 11 (a) The department shall create and maintain a confidential registry of patients 12 who have applied for and are entitled to receive a registry identification card according 13 to the criteria set out in this chapter. The registry must also contain the name of the 14 primary caregiver and the name of the alternate caregiver of a patient, if either is 15 designated by the patient. Only one primary caregiver and one alternate caregiver may 16 be listed in the registry for a patient. The registry and the information contained within 17 it are not a public record under AS 40.25.100 - 40.25.295 (Alaska Public Records 18 Act). Peace officers and authorized employees of state or municipal law enforcement 19 agencies shall be granted access to the information contained within the department's 20 confidential registry only 21 (1) for the purpose of verifying that an individual who has presented a 22 registry identification card to a state or municipal law enforcement official is lawfully 23 in possession of such card; or 24 (2) for the purpose of determining that an individual who claims to be 25 lawfully engaged in the medical use of cannabis [MARIJUANA] is registered or 26 listed with the department or is considered to be registered or listed under (g) of this 27 section. 28 * Sec. 16. AS 17.37.010(c) is amended to read: 29 (c) In order to be placed on the state's confidential registry for the medical use 30 of cannabis [MARIJUANA], an adult patient or a parent or guardian of a minor 31 patient shall provide to the department

01 (1) a statement signed by the patient's physician 02 (A) stating that the physician personally examined the patient 03 and that the examination took place in the context of a bona fide physician- 04 patient relationship and setting out the date the examination occurred; 05 (B) stating that the patient has been diagnosed with a 06 debilitating medical condition; and 07 (C) stating that the physician has considered other approved 08 medications and treatments that might provide relief, that are reasonably 09 available to the patient, and that can be tolerated by the patient, and that the 10 physician has concluded that the patient might benefit from the medical use of 11 cannabis [MARIJUANA]; 12 (2) a sworn application on a form provided by the department 13 containing the following information: 14 (A) the name, address, date of birth, and Alaska driver's license 15 or identification card number of the patient; 16 (B) the name, address, and telephone number of the patient's 17 physician; and 18 (C) the name, address, date of birth, and Alaska driver's license 19 or identification card number of the patient's primary caregiver and alternate 20 caregiver if either is designated at the time of application, along with the 21 statements required under (d) of this section; and 22 (3) if the patient is a minor, a statement by the minor's parent or 23 guardian that the patient's physician has explained the possible risks and benefits of 24 medical use of cannabis [MARIJUANA] and that the parent or guardian consents to 25 serve as the primary caregiver for the patient and to control the acquisition, 26 possession, dosage, and frequency of use of cannabis [MARIJUANA] by the patient. 27 * Sec. 17. AS 17.37.010(f) is amended to read: 28 (f) The department shall review the application and all information submitted 29 under (c) and (d) of this section within 30 days of receiving it. The department shall 30 notify the patient that the patient's application for a registry identification card has 31 been denied if the department's review of the information that the patient has provided

01 discloses that the information required under (c) of this section has not been provided 02 or has been falsified or that the patient is not otherwise qualified to be registered. If the 03 department determines that the primary caregiver or alternate caregiver is not qualified 04 under this section to be a primary caregiver or alternate caregiver, or if the information 05 required under this section has not been provided or has been falsified, the department 06 shall notify the patient of that determination and shall proceed to review the patient's 07 application as if a primary caregiver or alternate caregiver was not designated. The 08 patient may amend the application and designate a new primary caregiver or alternate 09 caregiver at any time. The department may not list a newly designated primary 10 caregiver or alternate caregiver until it determines that the newly designated primary 11 caregiver or alternate caregiver is qualified under this section and that the information 12 required under this section has been provided. Otherwise, not more than five days after 13 verifying the information, the department shall issue a registry identification card to 14 the patient, and, if a primary caregiver for a patient has been listed in the registry, the 15 department shall issue to the patient a duplicate of the patient's card clearly identified 16 as the caregiver registry identification card, stating 17 (1) the patient's name, address, date of birth, and Alaska driver's 18 license or identification card number; 19 (2) that the patient is registered with the department as a person who 20 has a debilitating medical condition that the patient may address with the medical use 21 of cannabis [MARIJUANA]; 22 (3) the dates of issuance and expiration of the registry identification 23 card; and 24 (4) the name, address, date of birth, and Alaska driver's license or 25 identification card number of the patient's primary caregiver and alternate caregiver, if 26 either is designated. 27 * Sec. 18. AS 17.37.010(h) is amended to read: 28 (h) A patient or a primary caregiver who is questioned by a state or municipal 29 law enforcement official about the patient's or primary caregiver's medical use of 30 cannabis [MARIJUANA] shall immediately show proper identification to the official 31 and inform the official that the person is a registered patient or listed primary

01 caregiver for a registered patient and either show the official (1) the person's registry 02 identification card, or (2) a copy of an application that has been pending without 03 registration or denial for over 35 days since received by the department and proof of 04 the date of delivery to the department, which shall be accorded the same legal effect as 05 a registry identification card until the patient receives actual notice that the application 06 has been denied. 07 * Sec. 19. AS 17.37.030(a) is amended to read: 08 (a) A patient, primary caregiver, or alternate caregiver registered with the 09 department under this chapter has an affirmative defense to a criminal prosecution 10 related to cannabis [MARIJUANA] to the extent provided in AS 11.71.090. 11 * Sec. 20. AS 17.37.030(c) is amended to read: 12 (c) A physician is not subject to any penalty, including arrest, prosecution, or 13 disciplinary proceeding, or denial of any right or privilege, for 14 (1) advising a patient whom the physician has diagnosed as having a 15 debilitating medical condition about the risks and benefits of medical use of cannabis 16 [MARIJUANA] or that the patient might benefit from the medical use of cannabis, if 17 [MARIJUANA, PROVIDED THAT] the advice is based on [UPON] the physician's 18 contemporaneous assessment in the context of a bona fide physician-patient 19 relationship of 20 (A) the patient's medical history and current medical condition; 21 and 22 (B) other approved medications and treatments that might 23 provide relief and that are reasonably available to the patient and that can be 24 tolerated by the patient; or 25 (2) providing a patient with a written statement in an application for 26 registration under AS 17.37.010. 27 * Sec. 21. AS 17.37.030(d) is amended to read: 28 (d) Notwithstanding the provisions of this section, a person, including a 29 patient, primary caregiver, or alternate caregiver, is not entitled to the protection of 30 this chapter for the person's acquisition, possession, cultivation, use, sale, distribution, 31 or transportation of cannabis [MARIJUANA] for nonmedical use.

01 * Sec. 22. AS 17.37.040 is amended to read: 02 Sec. 17.37.040. Restrictions on medical use of cannabis [MARIJUANA]. 03 (a) A patient, primary caregiver, or alternate caregiver may not 04 (1) engage in the medical use of cannabis [MARIJUANA] in a way 05 that endangers the health or well-being of any person; 06 (2) engage in the medical use of cannabis [MARIJUANA] in plain 07 view of, or in a place open to, the general public; this paragraph does not prohibit a 08 patient or primary caregiver from possessing cannabis [MARIJUANA] in a place 09 open to the general public if 10 (A) the person possesses, in a closed container carried on the 11 person, one ounce or less of cannabis [MARIJUANA] in usable form; 12 (B) the cannabis [MARIJUANA] is not visible to anyone other 13 than the patient or primary caregiver; and 14 (C) the possession is limited to that necessary to transport the 15 cannabis [MARIJUANA] directly to the patient or primary caregiver or 16 directly to a place where the patient or primary caregiver may lawfully possess 17 or use the cannabis [MARIJUANA]; 18 (3) sell or distribute cannabis [MARIJUANA] to any person, except 19 that a patient may deliver cannabis [MARIJUANA] to the patient's primary caregiver 20 and a primary caregiver may deliver cannabis [MARIJUANA] to the patient for 21 whom the caregiver is listed; or 22 (4) possess in the aggregate more than 23 (A) one ounce of cannabis [MARIJUANA] in usable form; 24 and 25 (B) six cannabis [MARIJUANA] plants, with not [NO] more 26 than three mature and flowering plants producing usable cannabis 27 [MARIJUANA] at any one time. 28 (b) Any patient found by a preponderance of the evidence to have knowingly 29 violated the provisions of this chapter shall be precluded from obtaining or using a 30 registry identification card for the medical use of cannabis [MARIJUANA] for a 31 period of one year. In this subsection, "knowingly" has the meaning given in

01 AS 11.81.900. 02 (c) A governmental, private, or other health insurance provider is not liable for 03 any claim for reimbursement for expenses associated with medical use of cannabis 04 [MARIJUANA]. 05 (d) Nothing in this chapter requires any accommodation of any medical use of 06 cannabis [MARIJUANA] 07 (1) in any place of employment; 08 (2) in any correctional facility, medical facility, or facility monitored 09 by the department or the Department of Administration; 10 (3) on or within 500 feet of school grounds; 11 (4) at or within 500 feet of a recreation or youth center; or 12 (5) on a school bus. 13 * Sec. 23. AS 17.37.070(4) is amended to read: 14 (4) "debilitating medical condition" means 15 (A) cancer, glaucoma, positive status for human 16 immunodeficiency virus, or acquired immune deficiency syndrome, or 17 treatment for any of these conditions; 18 (B) any chronic or debilitating disease or treatment for such 19 diseases, which produces, for a specific patient, one or more of the following, 20 and for which, in the professional opinion of the patient's physician, such 21 condition or conditions reasonably may be alleviated by the medical use of 22 cannabis [MARIJUANA]: cachexia; severe pain; severe nausea; seizures, 23 including those that are characteristic of epilepsy; or persistent muscle spasms, 24 including those that are characteristic of multiple sclerosis; or 25 (C) any other medical condition, or treatment for such 26 condition, approved by the department, under regulations adopted under 27 AS 17.37.060 or approval of a petition submitted under AS 17.37.060; 28 * Sec. 24. AS 17.37.070(8) is amended to read: 29 (8) "medical use" means the acquisition, possession, cultivation, use or 30 transportation of cannabis [MARIJUANA] or paraphernalia related to the 31 administration of cannabis [MARIJUANA] to alleviate a debilitating medical

01 condition under the provisions of this chapter and AS 11.71.090; 02 * Sec. 25. AS 17.37.070(12) is amended to read: 03 (12) "usable form" and "usable cannabis" [MARIJUANA"] means the 04 seeds, leaves, buds, and flowers of the plant genus [(GENUS)] cannabis, but does not 05 include the stalks or roots. 06 * Sec. 26. AS 17.37.080 is amended to read: 07 Sec. 17.37.080. Short title. AS 17.37.010 - 17.37.070 may be cited as the 08 Medical Uses of Cannabis [MARIJUANA] for Persons Suffering from Debilitating 09 Medical Conditions Act. 10 * Sec. 27. AS 17.38.010(a) is amended to read: 11 (a) In the interest of allowing law enforcement to focus on violent and 12 property crimes, and to enhance individual freedom, the people of the state of Alaska 13 find and declare that the use of cannabis [MARIJUANA] should be legal for persons 14 21 years of age or older. 15 * Sec. 28. AS 17.38.010(b) is amended to read: 16 (b) In the interest of the health and public safety of our citizenry, the people of 17 the state of Alaska further find and declare that the production and sale of cannabis 18 [MARIJUANA] should be regulated so that 19 (1) individuals will have to show proof of age before purchasing 20 cannabis [MARIJUANA]; 21 (2) legitimate, taxpaying business people, and not criminal actors, will 22 conduct sales of cannabis [MARIJUANA]; and 23 (3) cannabis [MARIJUANA] sold by regulated businesses will be 24 labeled and subject to additional regulations to ensure that consumers are informed 25 and protected. 26 * Sec. 29. AS 17.38.020 is amended to read: 27 Sec. 17.38.020. Personal use of cannabis [MARIJUANA]. Notwithstanding 28 any other provision of law, except as otherwise provided in this chapter, the following 29 acts, by persons 21 years of age or older, are lawful and are not criminal or civil 30 offenses under state law or the law of any political subdivision of the state or a basis 31 for seizure or forfeiture of assets under state law:

01 (1) possessing, using, displaying, purchasing, or transporting cannabis 02 [MARIJUANA] accessories or six ounces [ONE OUNCE] or less of cannabis 03 [MARIJUANA]; 04 (2) possessing, growing, processing, or transporting not more than six 05 cannabis [MARIJUANA] plants, with three or fewer being mature, flowering plants, 06 and possession of the cannabis [MARIJUANA] produced by the plants on the 07 premises where the plants were grown, except that not more than 12 cannabis 08 [MARIJUANA] plants, with six or fewer being mature, flowering plants, may be 09 present in a single dwelling regardless of the number of persons 21 years of age or 10 older residing in the dwelling; 11 (3) transferring six ounces [ONE OUNCE] or less of cannabis 12 [MARIJUANA] and up to six immature cannabis [MARIJUANA] plants to a person 13 who is 21 years of age or older without remuneration; 14 (4) consumption of cannabis [MARIJUANA], except that nothing in 15 this chapter permits the consumption of cannabis [MARIJUANA] in public; and 16 (5) assisting, aiding, or supporting another person who is 21 years of 17 age or older in any of the acts described in (1) - (4) of this section. 18 * Sec. 30. AS 17.38.020 is amended by adding a new subsection to read: 19 (b) Notwithstanding any other provision of law, the following acts are lawful 20 and are not criminal or civil offenses under state law or the law of any political 21 subdivision of the state or a basis for seizure or forfeiture of assets under state law: 22 (1) possessing, using, displaying, purchasing, transporting, or 23 consuming products if the only form of cannabis contained in the product is 24 cannabidiol, cannabigerol, cannabichromene, cannabinol, or another cannabis wellness 25 product that is authorized by the department, or a combination thereof; 26 (2) assisting, aiding, or supporting another person in an act described 27 in this subsection. 28 * Sec. 31. AS 17.38.030(a) is amended to read: 29 (a) The personal cultivation of cannabis [MARIJUANA] described in 30 AS 17.38.020(2) is subject to the following terms: 31 (1) cannabis [MARIJUANA] plants shall be cultivated in a location

01 where the plants are not subject to public view without the use of binoculars, aircraft, 02 or other optical aids; 03 (2) a person who cultivates cannabis [MARIJUANA] must take 04 reasonable precautions to ensure the plants are secure from unauthorized access; 05 (3) cannabis [MARIJUANA] cultivation may only occur on property 06 lawfully in possession of the cultivator or with the consent of the person in lawful 07 possession of the property. 08 * Sec. 32. AS 17.38.040 is amended to read: 09 Sec. 17.38.040. Public consumption banned, penalty. It is unlawful to 10 consume cannabis [MARIJUANA] in public. A person who violates this section is 11 guilty of a violation punishable by a fine of up to $100. 12 * Sec. 33. AS 17.38.050(a) is amended to read: 13 (a) A person who is under 21 years of age may not present or offer to a 14 cannabis [MARIJUANA] establishment or the cannabis [MARIJUANA] 15 establishment's agent or employee any written or oral evidence of age that is false, 16 fraudulent, or not actually the person's own, for the purpose of 17 (1) purchasing, attempting to purchase, or otherwise procuring or 18 attempting to procure cannabis [MARIJUANA] or cannabis [MARIJUANA] 19 products; or 20 (2) gaining access to a cannabis [MARIJUANA] establishment. 21 * Sec. 34. AS 17.38.060 is amended to read: 22 Sec. 17.38.060. Cannabis [MARIJUANA] accessories authorized. 23 Notwithstanding any other provision of law, it is lawful and is not an offense under 24 state law or the law of any political subdivision of the state or a basis for seizure or 25 forfeiture of assets under state law for persons 21 years of age or older to manufacture, 26 possess, or purchase cannabis [MARIJUANA] accessories, or to distribute or sell 27 cannabis [MARIJUANA] accessories to a person who is 21 years of age or older. 28 * Sec. 35. AS 17.38.070(a) is amended to read: 29 (a) Notwithstanding any other provision of law, the following acts, when 30 performed by a retail cannabis [MARIJUANA] store with a current, valid registration, 31 or a person 21 years of age or older who is acting in the person's capacity as an owner,

01 employee, or agent of a retail cannabis [MARIJUANA] store, are lawful and are not 02 an offense under state law or a basis for seizure or forfeiture of assets under state law: 03 (1) possessing, displaying, storing, or transporting cannabis 04 [MARIJUANA] or cannabis [MARIJUANA] products, except that cannabis 05 [MARIJUANA] and cannabis [MARIJUANA] products may not be displayed in a 06 manner that is visible to the general public from a public right-of-way; 07 (2) delivering or transferring cannabis [MARIJUANA] or cannabis 08 [MARIJUANA] products to or from a cannabis testing facility, cannabis 09 cultivation facility, or cannabis product manufacturing facility [A MARIJUANA 10 TESTING FACILITY]; 11 (3) receiving cannabis [MARIJUANA] or cannabis [MARIJUANA] 12 products from a cannabis [MARIJUANA] testing facility; 13 (4) purchasing cannabis or cannabis products [MARIJUANA] from 14 a cannabis [MARIJUANA] cultivation facility or cannabis product manufacturing 15 facility; and [;] 16 (5) [PURCHASING MARIJUANA OR MARIJUANA PRODUCTS 17 FROM A MARIJUANA PRODUCT MANUFACTURING FACILITY; AND 18 (6)] delivering, distributing, or selling cannabis [MARIJUANA] or 19 cannabis [MARIJUANA] products to consumers. 20 * Sec. 36. AS 17.38.070(b) is amended to read: 21 (b) Notwithstanding any other provision of law, the following acts, when 22 performed by a cannabis [MARIJUANA] cultivation facility with a current, valid 23 registration, or a person 21 years of age or older who is acting in the person's capacity 24 as an owner, employee, or agent of a cannabis [MARIJUANA] cultivation facility, 25 are lawful and are not an offense under state law or a basis for seizure or forfeiture of 26 assets under state law: 27 (1) cultivating, manufacturing, harvesting, processing, packaging, 28 transporting, displaying, storing, or possessing cannabis [MARIJUANA]; 29 (2) delivering or transferring cannabis [MARIJUANA] to a cannabis 30 [MARIJUANA] testing facility; 31 (3) receiving cannabis [MARIJUANA] from a cannabis

01 [MARIJUANA] testing facility or a retail cannabis store; 02 (4) delivering, distributing, or selling cannabis [MARIJUANA] to a 03 cannabis [MARIJUANA] cultivation facility, a cannabis [MARIJUANA] product 04 manufacturing facility, or a retail cannabis [MARIJUANA] store; 05 (5) receiving or purchasing cannabis [MARIJUANA] from a 06 cannabis [MARIJUANA] cultivation facility; and 07 (6) receiving cannabis [MARIJUANA] seeds or immature cannabis 08 [MARIJUANA] plants from a person 21 years of age or older. 09 * Sec. 37. AS 17.38.070(c) is amended to read: 10 (c) Notwithstanding any other provision of law, the following acts, when 11 performed by a cannabis [MARIJUANA] product manufacturing facility with a 12 current, valid registration, or a person 21 years of age or older who is acting in the 13 person's capacity as an owner, employee, or agent of a cannabis [MARIJUANA] 14 product manufacturing facility, are lawful and are not an offense under state law or a 15 basis for seizure or forfeiture of assets under state law: 16 (1) packaging, processing, transporting, manufacturing, displaying, or 17 possessing cannabis [MARIJUANA] or cannabis [MARIJUANA] products; 18 (2) delivering or transferring cannabis [MARIJUANA] or cannabis 19 [MARIJUANA] products to a cannabis [MARIJUANA] testing facility; 20 (3) receiving cannabis [MARIJUANA] or cannabis [MARIJUANA] 21 products from a cannabis [MARIJUANA] testing facility or a retail cannabis store; 22 (4) delivering or selling cannabis [MARIJUANA] or cannabis 23 [MARIJUANA] products to a retail cannabis [MARIJUANA] store or a cannabis 24 [MARIJUANA] product manufacturing facility; 25 (5) purchasing cannabis [MARIJUANA] from a cannabis 26 [MARIJUANA] cultivation facility; and 27 (6) purchasing cannabis [MARIJUANA] or cannabis 28 [MARIJUANA] products from a cannabis [MARIJUANA] product manufacturing 29 facility. 30 * Sec. 38. AS 17.38.070(d) is amended to read: 31 (d) Notwithstanding any other provision of law, the following acts, when

01 performed by a cannabis [MARIJUANA] testing facility with a current, valid 02 registration, or a person 21 years of age or older who is acting in the person's capacity 03 as an owner, employee, or agent of a cannabis [MARIJUANA] testing facility, are 04 lawful and are not an offense under state law or a basis for seizure or forfeiture of 05 assets under state law: 06 (1) possessing, cultivating, processing, repackaging, storing, 07 transporting, displaying, transferring, or delivering cannabis [MARIJUANA]; 08 (2) receiving cannabis [MARIJUANA] or cannabis [MARIJUANA] 09 products from a cannabis [MARIJUANA] cultivation facility, a cannabis 10 [MARIJUANA] retail store, a cannabis [MARIJUANA] products manufacturer, or a 11 person 21 years of age or older; and 12 (3) returning cannabis [MARIJUANA] or cannabis [MARIJUANA] 13 products to a cannabis [MARIJUANA] cultivation facility, a cannabis 14 [MARIJUANA] retail store, a cannabis [MARIJUANA] products manufacturer, or a 15 person 21 years of age or older. 16 * Sec. 39. AS 17.38.070(f) is amended to read: 17 (f) Nothing in this section prevents the imposition of penalties on cannabis 18 [UPON MARIJUANA] establishments for violating this chapter or rules adopted by 19 the board or local governments under [PURSUANT TO] this chapter. 20 * Sec. 40. AS 17.38.070(g) is amended to read: 21 (g) The provisions of AS 17.30.020 do not apply to cannabis [MARIJUANA] 22 establishments. 23 * Sec. 41. AS 17.38.080(a) is amended to read: 24 (a) The Cannabis [MARIJUANA] Control Board is established in the 25 Department of Commerce, Community, and Economic Development as a regulatory 26 and quasi-judicial agency. The board is in the Department of Commerce, Community, 27 and Economic Development for administrative purposes only. 28 * Sec. 42. AS 17.38.080(b) is amended to read: 29 (b) The board members shall be appointed by the governor and confirmed by a 30 majority of the members of the legislature in joint session. A member of the board 31 may not hold any other state or federal office, either elective or appointive. The board

01 consists of seven [FIVE] voting members as follows: 02 (1) one person from the public safety sector; 03 (2) one person from the public health sector; 04 (3) one person currently residing in a rural area; 05 (4) two people [ONE PERSON] actively engaged in the cannabis 06 [MARIJUANA] industry; [AND] 07 (5) one person who is either from the general public or is a 08 representative from a local government or community council, and is not [OR] 09 actively engaged in the cannabis [MARIJUANA] industry; and 10 (6) one person who has a background in plant production, organic 11 chemistry, or plant pathology. 12 * Sec. 43. AS 17.38.080(d) is amended to read: 13 (d) A board member representing the general public, the public safety sector, 14 the public health sector, or a rural area or who is a representative from a local 15 government or community council, or the member's immediate family member, may 16 not have a financial interest in the cannabis [MARIJUANA] industry. 17 * Sec. 44. AS 17.38.080(e) is amended by adding a new paragraph to read: 18 (7) "cannabis industry" means a business or profession related to 19 cannabis in which the person is lawfully engaged and that is in compliance with this 20 chapter, regulations adopted under this chapter, and other provisions of state law. 21 * Sec. 45. AS 17.38.121(a) is amended to read: 22 (a) The board shall control the cultivation, manufacture, and sale of cannabis 23 [MARIJUANA] in the state. The board is vested with the powers and duties necessary 24 to enforce this chapter. 25 * Sec. 46. AS 17.38.121(b) is amended to read: 26 (b) The board shall 27 (1) propose and adopt regulations; 28 (2) establish by regulation the qualifications for licensure, including 29 fees and factors related to the applicant's experience, criminal justice history, and 30 financial interests; 31 (3) review applications for licensure made under this chapter and may

01 order the executive director to issue, renew, suspend, or revoke a license authorized 02 under this chapter; [AND] 03 (4) hear appeals from actions of the director and from actions of 04 officers and employees charged with enforcing this chapter and the regulations 05 adopted under this chapter; 06 (5) work with the Department of Natural Resources to regulate 07 cannabis cultivation; in developing regulations for the cultivation of cannabis 08 under this paragraph, the board shall defer to recommendations from the 09 division of the Department of Natural Resources with responsibility for 10 agriculture; and 11 (6) adopt regulations to create a cannabis wholesale distributor 12 license authorizing a person to import cannabis and cannabis products into the 13 state. 14 * Sec. 47. AS 17.38.121(c) is amended to read: 15 (c) When considering an application for licensure, the board may reduce the 16 area to be designated as the licensed premises from the area applied for if the board 17 determines that a reduction in area is necessary to ensure control over the sale and 18 consumption of cannabis [MARIJUANA] on the premises or is otherwise in the 19 public interest. 20 * Sec. 48. AS 17.38.121 is amended by adding a new subsection to read: 21 (g) The board may limit the number of licenses allowed under this chapter 22 based on the public interest. 23 * Sec. 49. AS 17.38.131 is amended to read: 24 Sec. 17.38.131. Enforcement powers. The director and the persons employed 25 for the administration and enforcement of this chapter may, with the concurrence of 26 the commissioner of public safety, exercise the powers of peace officers when those 27 powers are specifically granted by the board. Powers granted by the board under this 28 section may be exercised only when necessary for the enforcement of the criminally 29 punishable provisions of this chapter, other criminal statutes relating to substances or 30 activities regulated or permitted under this chapter, regulations of the board, and other 31 criminally punishable laws and regulations relating to cannabis [MARIJUANA].

01 * Sec. 50. AS 17.38.190 is amended to read: 02 Sec. 17.38.190. Rulemaking. (a) The board shall adopt regulations necessary 03 for implementation of this chapter. Regulations under this subsection may not prohibit 04 the operation of cannabis [MARIJUANA] establishments, either expressly or through 05 regulations that make their operation unreasonably impracticable. The regulations 06 must include 07 (1) procedures for the issuance, renewal, suspension, and revocation of 08 a registration to operate a cannabis [MARIJUANA] establishment; procedures under 09 this paragraph are subject to all requirements of AS 44.62 (Administrative Procedure 10 Act); 11 (2) a schedule of application, registration, and renewal fees; 12 application fees may not exceed $5,000, with this upper limit adjusted annually for 13 inflation, unless the board determines a greater fee is necessary to carry out its 14 responsibilities under this chapter; 15 (3) qualifications for registration that are directly and demonstrably 16 related to the operation of a cannabis [MARIJUANA] establishment; 17 (4) security requirements for cannabis [MARIJUANA] 18 establishments, including for the transportation of cannabis [MARIJUANA] by 19 cannabis [MARIJUANA] establishments; 20 (5) requirements to prevent the sale or diversion of cannabis 21 [MARIJUANA] and cannabis [MARIJUANA] products to persons under the age of 22 21; 23 (6) labeling requirements for cannabis [MARIJUANA] and cannabis 24 [MARIJUANA] products sold or distributed by a cannabis [MARIJUANA] 25 establishment; 26 (7) health and safety regulations and standards for the manufacture of 27 cannabis [MARIJUANA] products and the cultivation of cannabis [MARIJUANA]; 28 (8) reasonable restrictions on the advertising and display of cannabis 29 [MARIJUANA] and cannabis [MARIJUANA] products; and 30 (9) civil penalties for the failure to comply with regulations made 31 under this chapter.

01 (b) In order to ensure that individual privacy is protected, the board may not 02 require a consumer to provide a retail cannabis [MARIJUANA] store with personal 03 information other than government-issued identification to determine the consumer's 04 age, and a retail cannabis [MARIJUANA] store may not be required to acquire and 05 record personal information about consumers. 06 * Sec. 51. AS 17.38.200(a) is amended to read: 07 (a) Each application or renewal application for a registration to operate a 08 cannabis [MARIJUANA] establishment shall be submitted to the board. A renewal 09 application may be submitted up to 90 days before the expiration of the cannabis 10 [MARIJUANA] establishment's registration. When filing an application for a new 11 registration under this subsection, the applicant shall submit the applicant's 12 fingerprints and the fees required by the Department of Public Safety under 13 AS 12.62.160 for criminal justice information and a national criminal history record 14 check. When filing an application for renewal of registration, an applicant shall submit 15 the applicant's fingerprints and the fees required by the Department of Public Safety 16 under AS 12.62.160 for criminal justice information and a national criminal history 17 record check every five years. The board shall forward the fingerprints and fees to the 18 Department of Public Safety to obtain a report of criminal justice information under 19 AS 12.62 and a national criminal history record check under AS 12.62.400. 20 * Sec. 52. AS 17.38.200(b) is amended to read: 21 (b) The board shall begin accepting and processing applications to operate 22 cannabis [MARIJUANA] establishments one year after February 24, 2015. 23 * Sec. 53. AS 17.38.200(c) is amended to read: 24 (c) Upon receiving an application or renewal application for a cannabis 25 [MARIJUANA] establishment, the board shall immediately forward a copy of each 26 application and half of the registration application fee to the local regulatory authority 27 for the local government in which the applicant desires to operate the cannabis 28 [MARIJUANA] establishment, unless the local government has not designated a local 29 regulatory authority under [PURSUANT TO] AS 17.38.210(c). 30 * Sec. 54. AS 17.38.200(d) is amended to read: 31 (d) Within 45 to 90 days after receiving an application or renewal application,

01 the board shall issue a biennial [AN ANNUAL] registration to the applicant unless 02 the board finds the applicant is not in compliance with regulations enacted under 03 [PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 04 government that the applicant is not in compliance with ordinances and regulations 05 made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 06 * Sec. 55. AS 17.38.200(e) is amended to read: 07 (e) If a local government has enacted a numerical limit on the number of 08 cannabis [MARIJUANA] establishments and a greater number of applicants seek 09 registrations, the board shall solicit and consider input from the local regulatory 10 authority as to the local government's preference or preferences for registration. 11 * Sec. 56. AS 17.38.200(g) is amended to read: 12 (g) Every cannabis [MARIJUANA] establishment registration shall specify 13 the location where the cannabis [MARIJUANA] establishment will operate. A 14 separate registration shall be required for each location at which a cannabis 15 [MARIJUANA] establishment operates. 16 * Sec. 57. AS 17.38.200(h) is amended to read: 17 (h) Cannabis [MARIJUANA] establishments and the books and records 18 maintained and created by cannabis [MARIJUANA] establishments are subject to 19 inspection by the board. 20 * Sec. 58. AS 17.38.200(i) is amended to read: 21 (i) A cannabis [MARIJUANA] establishment may not be registered under 22 this chapter if a person who is an owner, officer, or agent of the cannabis 23 [MARIJUANA] establishment has been convicted of a felony and either 24 (1) less than five years have elapsed from the time of the person's 25 conviction; or 26 (2) the person is currently on probation or parole for that felony. 27 * Sec. 59. AS 17.38.210(a) is amended to read: 28 (a) A local government may prohibit the operation of cannabis 29 [MARIJUANA] cultivation facilities, cannabis [MARIJUANA] product 30 manufacturing facilities, cannabis [MARIJUANA] testing facilities, or retail 31 cannabis [MARIJUANA] stores through the enactment of an ordinance or by a voter

01 initiative. An established village may prohibit the operation of cannabis 02 [MARIJUANA] cultivation facilities, cannabis [MARIJUANA] product 03 manufacturing facilities, cannabis [MARIJUANA] testing facilities, or retail 04 cannabis [MARIJUANA] stores as provided in AS 17.38.300. 05 * Sec. 60. AS 17.38.210(b) is amended to read: 06 (b) A local government may enact ordinances or regulations not in conflict 07 with this chapter or with regulations enacted under [PURSUANT TO] this chapter, 08 governing the time, place, manner, and number of cannabis [MARIJUANA] 09 establishment operations. A local government may establish civil penalties for 10 violation of an ordinance or regulation governing the time, place, and manner of a 11 cannabis [MARIJUANA] establishment that may operate in such local government. 12 * Sec. 61. AS 17.38.210(c) is amended to read: 13 (c) A local government may designate a local regulatory authority that is 14 responsible for processing applications submitted for a registration to operate a 15 cannabis [MARIJUANA] establishment within the boundaries of the local 16 government. The local government may provide that the local regulatory authority 17 may issue such registrations should the issuance by the local government become 18 necessary because of a failure by the board to adopt regulations under [PURSUANT 19 TO] AS 17.38.190 or to accept or process applications in accordance with 20 AS 17.38.200. 21 * Sec. 62. AS 17.38.210(e) is amended to read: 22 (e) A local government may establish a schedule of annual operating, 23 registration, and application fees for cannabis [MARIJUANA] establishments. The [, 24 PROVIDED THAT THE] local government may charge an [THE] 25 (1) application fee only if an application is submitted to the local 26 government in accordance with (f) of this section; and 27 (2) registration fee only if a registration is issued by the local 28 government in accordance with (f) of this section. 29 * Sec. 63. AS 17.38.210(f) is amended to read: 30 (f) If the board does not issue a registration to an applicant within 90 days of 31 receipt of the application filed in accordance with AS 17.38.200 and does not notify

01 the applicant of the specific, permissible reason for its denial, in writing and within 02 such time period, or if the board has adopted regulations under [PURSUANT TO] 03 AS 17.38.190 and has accepted applications under [PURSUANT TO] AS 17.38.200 04 but has not issued any registrations by 15 months after February 24, 2015, the 05 applicant may resubmit its application directly to the local regulatory authority, under 06 [PURSUANT TO] (c) of this section, and the local regulatory authority may issue a 07 biennial [AN ANNUAL] registration to the applicant. If an application is submitted to 08 a local regulatory authority under this subsection, the board shall forward to the local 09 regulatory authority the application fee paid by the applicant to the board upon request 10 by the local regulatory authority. 11 * Sec. 64. AS 17.38.220 is amended to read: 12 Sec. 17.38.220. Employers, driving, minors, and control of property. (a) 13 Nothing in this chapter is intended to require an employer to permit or accommodate 14 the use, consumption, possession, transfer, display, transportation, sale, or growing of 15 cannabis [MARIJUANA] in the workplace or to affect the ability of employers to 16 have policies restricting the use of cannabis [MARIJUANA] by employees. 17 (b) Nothing in this chapter is intended to allow driving under the influence of 18 cannabis [MARIJUANA] or to supersede laws related to driving under the influence 19 of cannabis [MARIJUANA]. 20 (c) Nothing in this chapter is intended to permit the transfer of cannabis 21 [MARIJUANA], with or without remuneration, to a person under the age of 21. 22 (d) Nothing in this chapter shall prohibit a person, employer, school, hospital, 23 recreation or youth center, correction facility, corporation, or any other entity who 24 occupies, owns, or controls private property from prohibiting or otherwise regulating 25 the possession, consumption, use, display, transfer, distribution, sale, transportation, or 26 growing of cannabis [MARIJUANA] on or in that property. 27 * Sec. 65. AS 17.38.230 is amended to read: 28 Sec. 17.38.230. Impact on medical cannabis [MARIJUANA] law. Nothing 29 in this chapter shall be construed to limit any privileges or rights of a medical 30 cannabis [MARIJUANA] patient or medical cannabis [MARIJUANA] caregiver 31 under AS 17.37.

01 * Sec. 66. AS 17.38.300(a) is amended to read: 02 (a) If a majority of the voters voting on the question vote to approve the 03 option, an established village shall exercise a local option to prohibit the operation of 04 one or more of the following types of cannabis [MARIJUANA] establishments: 05 (1) cannabis [MARIJUANA] cultivation facilities; 06 (2) cannabis [MARIJUANA] product manufacturing facilities; 07 (3) cannabis [MARIJUANA] testing facilities; or 08 (4) retail cannabis [MARIJUANA] stores. 09 * Sec. 67. AS 17.38.320 is amended to read: 10 Sec. 17.38.320. Effect on registrations of prohibition of cannabis 11 [MARIJUANA] establishments. If a majority of voters vote to prohibit the operation 12 of cannabis [MARIJUANA] establishments under AS 17.38.300, the board may not 13 issue, renew, or transfer, between persons or locations, a registration for a cannabis 14 [MARIJUANA] establishment located within the perimeter of the established village. 15 A registration that may not be renewed because of a local option election held under 16 AS 17.38.300 is void 90 days after the results of the election are certified. A 17 registration that expires during the 90 days after the results of a local option election 18 are certified may be extended, until it is void under this section, by payment of a 19 prorated portion of the annual registration fee. 20 * Sec. 68. AS 17.38.330(a) is amended to read: 21 (a) If a majority of the voters vote to prohibit the operation of cannabis 22 [MARIJUANA] establishments under AS 17.38.300, a person may not knowingly sell 23 or manufacture cannabis [MARIJUANA] in the established village. 24 * Sec. 69. AS 17.38.340(d) is amended to read: 25 (d) After a petition has been certified as sufficient to meet the requirements of 26 (b) of this section, another petition may not be filed or certified until after the question 27 presented in the first petition has been voted on. A local option question to prohibit the 28 operation of cannabis [MARIJUANA] cultivation facilities, cannabis 29 [MARIJUANA] product manufacturing facilities, cannabis [MARIJUANA] testing 30 facilities, or retail cannabis [MARIJUANA] stores or to prohibit all cannabis 31 [MARIJUANA] establishments may be presented in one election.

01 * Sec. 70. AS 17.38 is amended by adding a new section to read: 02 Sec. 17.38.380. Higher education. (a) A postsecondary educational institution 03 in the state may invest in, develop, and offer cannabis research and educational 04 programs relating to the production, growth, economics, business, testing, and science 05 of cannabis. 06 (b) A postsecondary educational institution that elects to engage in the sale of 07 cannabis or cannabis products as part of its research and educational programs under 08 this section shall obtain a registration to operate a retail cannabis store. 09 * Sec. 71. AS 17.38.900(1) is amended to read: 10 (1) "board" means the Cannabis [MARIJUANA] Control Board 11 established by AS 17.38.080; 12 * Sec. 72. AS 17.38.900(2) is amended to read: 13 (2) "consumer" means a person 21 years of age or older who purchases 14 cannabis [MARIJUANA] or cannabis [MARIJUANA] products for personal use by 15 persons 21 years of age or older, but not for resale to others; 16 * Sec. 73. AS 17.38.900(3) is amended to read: 17 (3) "consumption" means the act of ingesting, inhaling, or otherwise 18 introducing cannabis [MARIJUANA] into the human body; 19 * Sec. 74. AS 17.38.900(4) is amended to read: 20 (4) "director" means the director of the Cannabis [MARIJUANA] 21 Control Board and the Alcoholic Beverage Control Board; 22 * Sec. 75. AS 17.38.900(8) is amended to read: 23 (8) "local regulatory authority" means the office or entity designated to 24 process cannabis [MARIJUANA] establishment applications by a local government; 25 * Sec. 76. AS 17.38.900(19) is amended to read: 26 (19) "unreasonably impracticable" means that the measures necessary 27 to comply with the regulations require such a high investment of risk, money, time, or 28 any other resource or asset that the operation of a cannabis [MARIJUANA] 29 establishment is not worthy of being carried out in practice by a reasonably prudent 30 businessperson. 31 * Sec. 77. AS 17.38.900 is amended by adding new paragraphs to read:

01 (20) "cannabis" means any part of a plant or seeds from all species of 02 the genus cannabis, whether growing or not, and all derivatives, extracts, 03 cannabinoids, isomers, acids, salts, and salts of isomers; 04 (21) "cannabis accessories" means equipment, products, or materials of 05 any kind that are used, intended for use, or designed for use in planting, propagating, 06 cultivating, growing, harvesting, composting, manufacturing, compounding, 07 converting, producing, processing, preparing, testing, analyzing, packaging, 08 repackaging, storing, vaporizing, or containing cannabis, or for ingesting, inhaling, or 09 otherwise introducing cannabis into the human body; 10 (22) "cannabis cultivation facility" means an entity registered to 11 cultivate, prepare, and package cannabis and to sell cannabis to retail cannabis stores, 12 to cannabis product manufacturing facilities, and to other cannabis cultivation 13 facilities, but not to consumers; 14 (23) "cannabis establishment" means a cannabis cultivation facility, a 15 cannabis testing facility, a cannabis product manufacturing facility, or a retail cannabis 16 store; 17 (24) "cannabis product" means a concentrated cannabis product and a 18 cannabis product that consists of cannabis and other ingredients and is intended for use 19 or consumption, including an edible product, ointment, or tincture; 20 (25) "cannabis product manufacturing facility" means an entity 21 registered to purchase cannabis; manufacture, prepare, and package cannabis products; 22 and sell cannabis and cannabis products to other cannabis product manufacturing 23 facilities and to retail cannabis stores, but not to consumers; 24 (26) "cannabis testing facility" means an entity registered to analyze 25 and certify the safety and potency of cannabis; 26 (27) "retail cannabis store" means an entity registered to purchase 27 cannabis from cannabis cultivation facilities, to purchase cannabis and cannabis 28 products from cannabis product manufacturing facilities, and to sell cannabis and 29 cannabis products to consumers. 30 * Sec. 78. AS 18.35.301(h) is amended to read: 31 (h) Nothing in this section prohibits an individual from smoking

01 (1) at a private residence, except a private residence described in (b) of 02 this section or while a health care provider is present; 03 (2) in a stand-alone shelter if the stand-alone shelter meets the 04 following requirements: 05 (A) food or drink may not be sold or served in the stand-alone 06 shelter; and 07 (B) the stand-alone shelter meets the minimum distance 08 requirements of (c) of this section; or 09 (3) in an establishment licensed under AS 17.38 that is freestanding if 10 the smoking is in accordance with regulations adopted by the Cannabis 11 [MARIJUANA] Control Board created under AS 17.38.080. 12 * Sec. 79. AS 43.61.010(a) is amended to read: 13 (a) An excise tax is imposed on the sale or transfer of cannabis 14 [MARIJUANA] from a cannabis [MARIJUANA] cultivation facility to a retail 15 cannabis [MARIJUANA] store or cannabis [MARIJUANA] product manufacturing 16 facility. Every cannabis [MARIJUANA] cultivation facility shall pay an excise tax at 17 the rate of $12.50 an [$50 PER] ounce, or proportionate part thereof, on cannabis 18 [MARIJUANA] that is sold or transferred from a cannabis [MARIJUANA] 19 cultivation facility to a retail cannabis [MARIJUANA] store or cannabis 20 [MARIJUANA] product manufacturing facility. 21 * Sec. 80. AS 43.61.010(b) is amended to read: 22 (b) The department may exempt certain parts of the cannabis [MARIJUANA] 23 plant from the excise tax described in (a) of this section or may establish a rate lower 24 than $12.50 an [$50 PER] ounce for certain parts of the cannabis [MARIJUANA] 25 plant. 26 * Sec. 81. AS 43.61.010(f) is amended to read: 27 (f) The cannabis [MARIJUANA] education and treatment fund is established 28 in the general fund. The [IN ADDITION TO THE ACCOUNTING UNDER (c) OF 29 THIS SECTION, THE] Department of Administration shall separately account for [25 30 PERCENT OF] the tax collected under this section and deposit it into the cannabis 31 [MARIJUANA] education and treatment fund. The Department of Administration

01 shall deposit interest earned on the fund into the general fund. Money in the fund does 02 not lapse. The legislature may appropriate from [USE THE ANNUAL ESTIMATED 03 BALANCE IN] the fund not more than 33 percent of the annual estimated tax 04 collected under this section to each of the following: 05 (1) [TO MAKE APPROPRIATIONS TO] the Department of Health 06 for the comprehensive cannabis [MARIJUANA] use education and treatment 07 program established under AS 44.29.020(a)(14); 08 (2) the Department of Commerce, Community, and Economic 09 Development to support administrative tasks relating to the cultivation, 10 manufacture, and sale of cannabis and cannabis products in the state; and 11 (3) the general fund. 12 * Sec. 82. AS 43.61.010 is amended by adding new subsections to read: 13 (g) A sales tax is imposed on the sale of cannabis and cannabis products from 14 a retail cannabis store to a consumer. Every consumer shall pay a three percent sales 15 tax at a retail cannabis store for all cannabis and cannabis products intended for human 16 consumption. 17 (h) An import tax is imposed on the importation of cannabis and cannabis 18 products by a cannabis wholesale distributor. Every cannabis wholesale distributor 19 shall pay an import tax of 10.5 percent of the value of the cannabis and cannabis 20 products imported by the cannabis wholesale distributor. 21 * Sec. 83. AS 43.61.020 is amended to read: 22 Sec. 43.61.020. Monthly statement and payments. (a) Each cannabis 23 [MARIJUANA] cultivation facility shall send a statement by mail or electronically to 24 the department on or before the last day of each calendar month. The statement must 25 contain an account of the amount of cannabis [MARIJUANA] sold or transferred to 26 retail cannabis [MARIJUANA] stores and cannabis [MARIJUANA] product 27 manufacturing facilities in the state during the preceding month, setting out 28 (1) the total number of ounces, including fractional ounces, sold or 29 transferred; 30 (2) the names and Alaska address of each buyer and transferee; and 31 (3) the weight of cannabis [MARIJUANA] sold or transferred to the

01 respective buyers or transferees. 02 (b) The cannabis [MARIJUANA] cultivation facility shall pay monthly to the 03 department, all taxes, computed at the rates prescribed in this chapter, on the 04 respective total quantities of the cannabis [MARIJUANA] sold or transferred during 05 the preceding month. The monthly return shall be filed and the tax paid on or before 06 the last day of each month to cover the preceding month. 07 * Sec. 84. AS 43.61.020, as amended by sec. 83 of this Act, is amended to read: 08 Sec. 43.61.020. Monthly statement and payments. (a) Each retail cannabis 09 store and wholesale distributor [CULTIVATION FACILITY] shall send a statement 10 by mail or electronically to the department on or before the last day of each calendar 11 month. The statement must contain an account of the amount of cannabis sold to 12 consumers or imported into [OR TRANSFERRED TO RETAIL CANNABIS 13 STORES AND CANNABIS PRODUCT MANUFACTURING FACILITIES IN] the 14 state during the preceding month, setting out 15 [(1)] the total number of ounces, including fractional ounces, sold or 16 imported and the total value of the cannabis sold or imported [TRANSFERRED; 17 (2) THE NAMES AND ALASKA ADDRESS OF EACH BUYER 18 AND TRANSFEREE; AND 19 (3) THE WEIGHT OF CANNABIS SOLD OR TRANSFERRED TO 20 THE RESPECTIVE BUYERS OR TRANSFEREES]. 21 (b) The retail cannabis store and wholesale distributor [CULTIVATION 22 FACILITY] shall pay monthly to the department, all taxes, computed at the rates 23 prescribed in this chapter, on the respective total quantities of the cannabis sold or 24 imported [TRANSFERRED] during the preceding month. The monthly return shall 25 be filed and the tax paid on or before the last day of each month to cover the preceding 26 month. 27 * Sec. 85. AS 43.61.030 is amended to read: 28 Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent 29 payments under this chapter shall subject the cannabis [MARIJUANA] cultivation 30 facility to civil penalties under AS 43.05.220. 31 (b) If a cannabis [MARIJUANA] cultivation facility fails to pay the tax to the

01 state, the cannabis [MARIJUANA] cultivation facility's registration may be revoked 02 in accordance with procedures established under AS 17.38.190(a)(1). 03 * Sec. 86. AS 43.61.030, as amended by sec. 85 of this Act, is amended to read: 04 Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent 05 payments under this chapter shall subject the retail cannabis store or wholesale 06 distributor [CULTIVATION FACILITY] to civil penalties under AS 43.05.220. 07 (b) If a retail cannabis store or wholesale distributor [CULTIVATION 08 FACILITY] fails to pay the tax to the state, the retail cannabis store's 09 [CULTIVATION FACILITY'S] registration or wholesale distributor's license may 10 be revoked in accordance with procedures established under AS 17.38.190(a)(1). 11 * Sec. 87. AS 43.61 is amended by adding new sections to read: 12 Sec. 43.61.040. Tax for excess cannabis. A person who is not registered 13 under AS 17.38 and who is found to be in possession of cannabis plants in excess of 14 the amount of cannabis plants authorized for personal use in AS 17.38.020(2) is 15 subject to the tax on the cannabis plants possessed in excess of the amount authorized 16 for use in AS 17.38.020 and seizure of any excess plants possessed. The tax due under 17 this section is $50 for each immature plant and $200 for each mature, flowering plant. 18 Sec. 43.61.050. Unregistered product. (a) A cannabis product manufacturing 19 facility or retail cannabis store is secondarily liable for unregistered cannabis in the 20 possession of the cannabis product manufacturing facility or retail cannabis store. If 21 requested by the department, the cannabis product manufacturing facility or retail 22 cannabis store shall provide the department with proof that cannabis in the possession 23 of the cannabis product manufacturing facility or retail cannabis store is from a 24 registered cannabis product manufacturing facility. If the cannabis product 25 manufacturing facility or retail cannabis store is unable to show the legal origin of 26 cannabis in its possession, the cannabis is subject to seizure and the cannabis product 27 manufacturing facility or retail cannabis store is subject to a tax penalty of two times 28 the tax assessed on comparable legal cannabis. For the purposes of the penalty, the 29 department has the authority to determine the tax value of comparable legal cannabis. 30 (b) The department may examine the books, papers, records, or memoranda of 31 a person growing, selling, receiving, storing, refining, or processing cannabis. A

01 person growing, selling, receiving, storing, refining, or processing cannabis shall 02 preserve all books, papers, records, or memoranda for at least three years and shall 03 provide the books, papers, records, or memoranda for inspection when demanded by 04 the department. 05 Sec. 43.61.900. Definitions. In this chapter, "cannabis," "cannabis cultivation 06 facility," "cannabis product," "cannabis product manufacturing facility," "cannabis 07 wholesale distributor," and "retail cannabis store" have the meanings given in 08 AS 17.38.900. 09 * Sec. 88. AS 44.29.020(a) is amended to read: 10 (a) The Department of Health shall administer state programs, including 11 (1) maternal and child health services; 12 (2) preventive medical services; 13 (3) public health nursing services; 14 (4) nutrition services; 15 (5) health education; 16 (6) laboratories; 17 (7) mental health treatment and diagnosis, except for mental health 18 treatment and diagnosis under AS 47.30.660 - 47.30.915; 19 (8) medical facilities; 20 (9) adult public assistance; 21 (10) the Alaska temporary assistance program; 22 (11) general relief; 23 (12) a comprehensive smoking education, tobacco use prevention, and 24 tobacco control program; to the maximum extent possible, the department shall 25 administer the program required under this paragraph by grant to or contract with one 26 or more organizations in the state; the department's program must include 27 (A) a community-based tobacco use prevention and cessation 28 component addressing the needs of youth and adults that includes use of 29 cessation aids such as a nicotine patch or a nicotine gum tobacco substitute; 30 (B) youth-based efforts that involve youth in the design and 31 implementation of tobacco control efforts;

01 (C) anti-tobacco counter-marketing targeting both youth and 02 adult populations designed to communicate messages to help prevent youth 03 initiation of tobacco use, promote cessation among tobacco users, and educate 04 the public about the lethal effects of exposure to secondhand smoke; 05 (D) tobacco use surveys of youth and adult populations 06 concerning knowledge, awareness, attitude, and use of tobacco products; and 07 (E) an enforcement component; 08 (13) licensure and regulation of child care facilities; 09 (14) a comprehensive cannabis [MARIJUANA] use education and 10 treatment program; to the extent possible, the department shall administer the program 11 required under this paragraph by grant to or contract with one or more organizations in 12 the state; the department's program must include 13 (A) a community-based cannabis [MARIJUANA] misuse 14 prevention component; the community-based component must provide for a 15 youth services grant program to 16 (i) reduce initiation and promote cessation of cannabis 17 [MARIJUANA] use by youth, reduce youth access to cannabis 18 [MARIJUANA] products, and reduce exposure of youth to impaired 19 driving dangers related to cannabis [MARIJUANA] use; 20 (ii) provide recreational, educational, and character- 21 building programs for youth outside school hours; and 22 (iii) address cannabis [MARIJUANA] use prevention 23 through outcome-based curricula, adult and peer mentoring, and 24 opportunities for positive, prosocial leisure and recreational activities; 25 (B) cannabis [MARIJUANA] public education designed to 26 communicate messages to help prevent youth initiation of cannabis 27 [MARIJUANA] use, educate the public about the effects of cannabis 28 [MARIJUANA] use, and educate the public about cannabis [MARIJUANA] 29 laws; 30 (C) surveys of 31 (i) youth and adult populations concerning knowledge,

01 awareness, attitude, and use of cannabis [MARIJUANA] products; 02 (ii) the need for trained professionals working in 03 organizations described in this paragraph; 04 (D) the development of plans to address the need for trained 05 professionals and to assist in implementing a training program for those 06 professionals; 07 (E) monitoring of population health status related to the 08 consequences of cannabis [MARIJUANA] use; and 09 (F) substance abuse screening, brief intervention, and referral 10 to treatment. 11 * Sec. 89. AS 44.33.020(a)(44) is amended to read: 12 (44) supply necessary clerical and administrative services for the 13 Alcoholic Beverage Control Board and the Cannabis [MARIJUANA] Control Board. 14 * Sec. 90. AS 44.37.030(a) is amended to read: 15 (a) The Department of Natural Resources shall 16 (1) obtain and publish information electronically and in print on 17 subjects connected with agriculture, including community seed libraries established 18 under AS 03.20.120; 19 (2) control and regulate the entry and transportation of seeds, plants, 20 and other horticultural products; 21 (3) control and eradicate the spread of pests injurious to plants, trees, 22 vegetables, livestock, and poultry; 23 (4) aid in developing used and unused agricultural resources; [AND] 24 (5) experiment and determine practical methods of growing, 25 processing, soil analysis, eradication of obnoxious weeds, control of insects, and 26 cheaper and more satisfactory methods of land clearing; and 27 (6) provide recommendations to the Cannabis Control Board 28 relating to the regulation of cannabis cultivation under AS 17.38.121. 29 * Sec. 91. AS 44.62.330(a)(46) is amended to read: 30 (46) Cannabis [MARIJUANA] Control Board. 31 * Sec. 92. AS 44.66.010(a)(13) is amended to read:

01 (13) Cannabis [MARIJUANA] Control Board (AS 17.38.080) - 02 June 30, 2024. 03 * Sec. 93. AS 03.05.010(a)(7), 03.05.010(a)(8), 03.05.010(b)(6), 03.05.010(c), 03.05.076, 04 03.05.078, 03.05.079, 03.05.100(5); AS 11.71.160(f)(1), 11.71.160(f)(2), 11.71.160(f)(3), 05 11.71.900(3), 11.71.900(11), 11.71.900(12), 11.71.900(15); AS 17.38.080(e)(3), 06 17.38.900(10), 17.38.900(11), 17.38.900(12), 17.38.900(13), 17.38.900(14), 17.38.900(15), 07 17.38.900(16), 17.38.900(18); AS 43.61.010(c), and 43.61.010(d) are repealed. 08 * Sec. 94. AS 43.61.010(a) and 43.61.010(b) are repealed July 1, 2028. 09 * Sec. 95. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. AS 43.61.010(a), as amended by sec. 79 of this Act, 12 AS 43.61.010(b), as amended by sec. 80 of this Act, AS 43.61.020, as amended by sec. 83 of 13 this Act, and AS 43.61.030, as amended by sec. 85 of this Act, apply to taxes accrued on or 14 after the effective date of secs. 79, 80, 83, and 85 of this Act. 15 * Sec. 96. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 CANNABIS TESTING ANALYSIS. The Department of Environmental Conservation 18 shall research how to develop a cost-effective, in-state method to test cannabis for heavy 19 metals and pesticides. As part of the research, the Department of Environmental Conservation 20 shall analyze the differences between expanding state laboratory services, offering funding 21 incentives to private laboratories, and exploring opportunities with the University of Alaska to 22 further develop laboratory capabilities. 23 * Sec. 97. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 CONDITIONAL EFFECT; NOTIFICATION; LICENSING MORATORIUM. (a) If 26 the federal government legalizes or decriminalizes cannabis, the Cannabis Control Board 27 established in AS 17.38.080(a), as amended by sec. 41 of this Act, shall immediately impose a 28 12-month moratorium on the approval of new licenses issued under AS 17.38 for applications 29 filed on or after the effective date of this section. 30 (b) The chair of the Cannabis Control Board shall notify the revisor of statutes in 31 writing within three days after the federal legalization or decriminalization of cannabis.

01 (c) During the 12-month moratorium under (a) of this section, the Cannabis Control 02 Board shall analyze the cannabis industry and, following the expiration of the moratorium, 03 may authorize an increase in the number of licenses that the board may issue. 04 * Sec. 98. If sec. 97 of this Act takes effect, it takes effect on the day after the date the 05 federal government approves the federal legalization or decriminalization of cannabis. 06 * Sec. 99. Sections 82, 84, and 86 of this Act take effect July 1, 2028.