CSHB 119(L&C): "An Act relating to the lawful operation of retail marijuana stores; relating to the registration of marijuana establishments; relating to marijuana taxes; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 119(L&C) 01 "An Act relating to the lawful operation of retail marijuana stores; relating to the 02 registration of marijuana establishments; relating to marijuana taxes; and providing for 03 an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 17.38.070(a) is amended to read: 06 (a) Notwithstanding any other provision of law, the following acts, when 07 performed by a retail marijuana store with a current, valid registration, or a person 21 08 years of age or older who is acting in the person's capacity as an owner, employee, or 09 agent of a retail marijuana store, are lawful and are not an offense under state law or a 10 basis for seizure or forfeiture of assets under state law: 11 (1) possessing, displaying, storing, or transporting marijuana or 12 marijuana products, except that marijuana and marijuana products may not be 13 displayed in a manner that is visible to the general public from a public right-of-way; 14 (2) delivering or transferring marijuana or marijuana products to a
01 marijuana testing facility; 02 (3) receiving marijuana or marijuana products from a marijuana testing 03 facility; 04 (4) purchasing marijuana from a marijuana cultivation facility; 05 (5) purchasing marijuana or marijuana products from a marijuana 06 product manufacturing facility; and 07 (6) delivering, distributing, or selling marijuana or marijuana products 08 to a consumer, a marijuana cultivation facility, or a marijuana product 09 manufacturing facility [CONSUMERS]. 10 * Sec. 2. AS 17.38.200(a) is amended to read: 11 (a) Each application or renewal application for a registration to operate a 12 marijuana establishment shall be submitted to the board. A renewal application may be 13 submitted up to 90 days before the expiration of the marijuana establishment's 14 registration. When filing an application for a new registration under this subsection, 15 the applicant shall submit the applicant's fingerprints and the fees required by the 16 Department of Public Safety under AS 12.62.160 for criminal justice information and 17 a national criminal history record check. When filing an application for renewal of 18 registration, an applicant shall submit the applicant's fingerprints and the fees required 19 by the Department of Public Safety under AS 12.62.160 for criminal justice 20 information and a national criminal history record check every six [FIVE] years. The 21 board shall forward the fingerprints and fees to the Department of Public Safety to 22 obtain a report of criminal justice information under AS 12.62 and a national criminal 23 history record check under AS 12.62.400. 24 * Sec. 3. AS 17.38.200(d) is amended to read: 25 (d) Within 45 to 90 days after receiving an application or renewal application, 26 the board shall issue a biennial [AN ANNUAL] registration to the applicant unless 27 the board finds the applicant is not in compliance with regulations enacted under 28 [PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 29 government that the applicant is not in compliance with ordinances and regulations 30 made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 31 * Sec. 4. AS 17.38.210(e) is amended to read:
01 (e) A local government may establish a schedule of biennial [ANNUAL] 02 operating, registration, and application fees for marijuana establishments, provided 03 that the local government may charge the 04 (1) application fee only if an application is submitted to the local 05 government in accordance with (f) of this section; and 06 (2) registration fee only if a registration is issued by the local 07 government in accordance with (f) of this section. 08 * Sec. 5. AS 17.38.210(f) is amended to read: 09 (f) If the board does not issue a registration to an applicant within 90 days 10 after receiving [OF RECEIPT OF] the application filed in accordance with 11 AS 17.38.200 and does not notify the applicant of the specific, permissible reason for 12 its denial, in writing and within that [SUCH] time period, or if the board has adopted 13 regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications 14 under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15 15 months after February 24, 2015, the applicant may resubmit its application directly to 16 the local regulatory authority, under [PURSUANT TO] (c) of this section, and the 17 local regulatory authority may issue a biennial [AN ANNUAL] registration to the 18 applicant. If an application is submitted to a local regulatory authority under this 19 subsection, the board shall forward to the local regulatory authority the application fee 20 paid by the applicant to the board upon request by the local regulatory authority. 21 * Sec. 6. AS 17.38.210(h) is amended to read: 22 (h) A local regulatory authority issuing a registration to an applicant shall do 23 so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted 24 application unless the local regulatory authority finds and notifies the applicant that 25 the applicant is not in compliance with ordinances and regulations made under 26 [PURSUANT TO] (b) of this section in effect at the time the application is submitted 27 to the local regulatory authority. The local government shall notify the board if a 28 biennial [AN ANNUAL] registration has been issued to the applicant. 29 * Sec. 7. AS 17.38.210(j) is amended to read: 30 (j) A subsequent or renewed registration may be issued under (f) of this 31 section on a biennial [AN ANNUAL] basis only upon resubmission to the local
01 government of a new application submitted to the board under [PURSUANT TO] 02 AS 17.38.200. 03 * Sec. 8. AS 17.38.320 is amended to read: 04 Sec. 17.38.320. Effect on registrations of prohibition of marijuana 05 establishments. If a majority of voters vote to prohibit the operation of marijuana 06 establishments under AS 17.38.300, the board may not issue, renew, or transfer, 07 between persons or locations, a registration for a marijuana establishment located 08 within the perimeter of the established village. A registration that may not be renewed 09 because of a local option election held under AS 17.38.300 is void 90 days after the 10 results of the election are certified. A registration that expires during the 90 days after 11 the results of a local option election are certified may be extended, until it is void 12 under this section, by payment of a prorated portion of the biennial [ANNUAL] 13 registration fee. 14 * Sec. 9. AS 17.38.900(18) is amended to read: 15 (18) "retail marijuana store" means an entity registered to purchase 16 marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana 17 products from marijuana product manufacturing facilities, and to sell marijuana and 18 marijuana products to consumers, marijuana cultivation facilities, and marijuana 19 product manufacturing facilities; 20 * Sec. 10. AS 43.61.010(a) is amended to read: 21 (a) An excise tax is imposed on the sale or transfer of marijuana from a 22 marijuana cultivation facility to a retail marijuana store or marijuana product 23 manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at 24 the rate of $12.50 an [$50 PER] ounce, or proportionate part thereof, on marijuana 25 that is sold or transferred from a marijuana cultivation facility to a retail marijuana 26 store or marijuana product manufacturing facility. 27 * Sec. 11. AS 43.61.010(f) is amended to read: 28 (f) The marijuana education and treatment fund is established in the general 29 fund. In addition to the accounting under (c) of this section, the Department of 30 Administration shall separately account for 25 percent of the tax collected under this 31 section and deposit it into the marijuana education and treatment fund. The
01 Department of Administration shall deposit interest earned on the fund into the general 02 fund. Money in the fund does not lapse. The legislature may use the annual estimated 03 balance in the fund to make appropriations to the Department of Health for the 04 comprehensive marijuana use education and treatment program established under 05 AS 44.29.020(a)(14) and may use at least 50 percent of the annual estimated 06 balance in the fund to make appropriations to the youth services grant program 07 within the community-based marijuana misuse prevention component of that 08 program. 09 * Sec. 12. AS 43.61.010 is amended by adding a new subsection to read: 10 (g) A sales tax is imposed on the sale of marijuana and marijuana products 11 from a retail marijuana store to a consumer. Every consumer shall pay a six percent 12 sales tax at a retail marijuana store for all marijuana and marijuana products intended 13 for human consumption. 14 * Sec. 13. AS 43.61.020 is amended to read: 15 Sec. 43.61.020. Quarterly statements [MONTHLY STATEMENT] and 16 payments. (a) Each retail marijuana store [CULTIVATION FACILITY] shall send a 17 statement by mail or electronically to the department on or before the last day of each 18 quarter [CALENDAR MONTH]. The statement must contain an account of the 19 amount of marijuana sold to consumers [OR TRANSFERRED TO RETAIL 20 MARIJUANA STORES AND MARIJUANA PRODUCT MANUFACTURING 21 FACILITIES IN THE STATE] during the preceding quarter [MONTH], setting out 22 [(1)] the total number of ounces, including fractional ounces, sold and 23 the total value of the marijuana sold [OR TRANSFERRED; 24 (2) THE NAMES AND ALASKA ADDRESS OF EACH BUYER 25 AND TRANSFEREE; AND 26 (3) THE WEIGHT OF MARIJUANA SOLD OR TRANSFERRED 27 TO THE RESPECTIVE BUYERS OR TRANSFEREES]. 28 (b) The retail marijuana store [CULTIVATION FACILITY] shall pay 29 quarterly [MONTHLY] to the department [,] all taxes, computed at the rates 30 prescribed in this chapter, on the respective total quantities of the marijuana sold [OR 31 TRANSFERRED] during the preceding quarter [MONTH]. The quarterly
01 [MONTHLY] return shall be filed and the tax paid on or before the last day of each 02 quarter [MONTH] to cover the preceding quarter [MONTH]. 03 * Sec. 14. AS 43.61.030 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 marijuana store [CULTIVATION 06 FACILITY] to civil penalties under AS 43.05.220. 07 (b) If a retail marijuana store [CULTIVATION FACILITY] fails to pay the 08 tax to the state, the retail marijuana store's [CULTIVATION FACILITY'S] 09 registration may be revoked in accordance with procedures established under 10 AS 17.38.190(a)(1). 11 * Sec. 15. AS 43.61.010(b) is repealed. 12 * Sec. 16. AS 43.61.010(a) is repealed January 1, 2025. 13 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 APPLICABILITY. AS 43.61.010(a), as amended by sec. 10 of this Act, applies to 16 taxes accrued on or after the effective date of sec. 10 of this Act. 17 * Sec. 18. Sections 12 - 14 of this Act take effect January 1, 2025. 18 * Sec. 19. Except as provided in sec. 18 of this Act, this Act takes effect July 1, 2024.