Legislature(2023 - 2024)
2024-05-14 House Journal
Full Journal pdf2024-05-14 House Journal Page 3167 SB 89 The following, which was moved to the bottom of the calendar (page 3151), was read the second time: CS FOR SENATE BILL NO. 89(FIN) "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, and products containing nicotine; raising the minimum age to purchase, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to the tobacco use education and cessation fund; relating to the taxation of electronic smoking products and vapor products; and providing for an effective date." with the: Journal Page L&C RPT HCS(L&C) NEW TITLE 3DP 3NR 1AM 2763 FN10: ZERO(ADM) 2763 FN11: ZERO(ADM) 2763 FN12: ZERO(CED) 2763 FN13: ZERO(DOH) 2763 FN14: ZERO(AJS) 2763 FN15: ZERO(LAW) 2763 FN16: ZERO(DPS) 2763 Representative Saddler moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: HOUSE CS FOR CS FOR SENATE BILL NO. 89(L&C) "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, and products containing nicotine; raising the minimum age to purchase, exchange, or possess tobacco, a 2024-05-14 House Journal Page 3168 product containing nicotine, or an electronic smoking product; relating to the tobacco use education and cessation fund; relating to retailers of and the sale of electronic smoking products and vapor products; and providing for an effective date." (HCR 18 – title change resolution) Representative Eastman objected and withdrew the objection. There being no further objection, HCS CSSB 89(L&C) was adopted. Amendment No. 1 was offered by Representative Sumner: Page 13, line 6: Delete "50" Insert "60" Representative Sumner moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Eastman objected and withdrew the objection. There being no further objection, Amendment No. 1 was adopted. Amendment No. 2 was offered by Representative Sumner: Page 1, line 3, following "product;" (title amendment): Insert "relating to the lawful operation of retail marijuana stores; relating to the registration of marijuana establishments;" Page 1, line 5, following "products;": Insert "relating to marijuana taxes;" Page 6, following line 6: Insert new bill sections to read: "* Sec. 11. AS 17.38.070(a) is amended to read: (a) Notwithstanding any other provision of law, the following acts, when performed by a retail marijuana store with a current, valid registration, or a person 21 years of age or older who is acting in the person's capacity as an owner, employee, or agent of a retail marijuana store, are lawful and are not an offense under state law or a basis for seizure or forfeiture of assets under state law: 2024-05-14 House Journal Page 3169 (1) possessing, displaying, storing, or transporting marijuana or marijuana products, except that marijuana and marijuana products may not be displayed in a manner that is visible to the general public from a public right-of-way; (2) delivering or transferring marijuana or marijuana products to a marijuana testing facility; (3) receiving marijuana or marijuana products from a marijuana testing facility; (4) purchasing marijuana from a marijuana cultivation facility; (5) purchasing marijuana or marijuana products from a marijuana product manufacturing facility; and (6) delivering, distributing, or selling marijuana or marijuana products to a consumer, a marijuana cultivation facility, or a marijuana product manufacturing facility [CONSUMERS]. * Sec. 12. AS 17.38.200(a) is amended to read: (a) Each application or renewal application for a registration to operate a marijuana establishment shall be submitted to the board. A renewal application may be submitted up to 90 days before the expiration of the marijuana establishment's registration. When filing an application for a new registration under this subsection, the applicant shall submit the applicant's fingerprints and the fees required by the Department of Public Safety under AS 12.62.160 for criminal justice information and a national criminal history record check. When filing an application for renewal of registration, an applicant shall submit the applicant's fingerprints and the fees required by the Department of Public Safety under AS 12.62.160 for criminal justice information and a national criminal history record check every six [FIVE] years. The board shall forward the fingerprints and fees to the Department of Public Safety to obtain a report of criminal justice information under AS 12.62 and a national criminal history record check under AS 12.62.400. * Sec. 13. AS 17.38.200(d) is amended to read: (d) Within 45 to 90 days after receiving an application or renewal application, the board shall issue a biennial [AN ANNUAL] registration to the applicant unless the board finds the applicant is not in compliance with regulations enacted under [PURSUANT TO] AS 17.38.190 or the board is notified by the 2024-05-14 House Journal Page 3170 relevant local government that the applicant is not in compliance with ordinances and regulations made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. * Sec. 14. AS 17.38.210(e) is amended to read: (e) A local government may establish a schedule of biennial [ANNUAL] operating, registration, and application fees for marijuana establishments, provided that the local government may charge the (1) application fee only if an application is submitted to the local government in accordance with (f) of this section; and (2) registration fee only if a registration is issued by the local government in accordance with (f) of this section. * Sec. 15. AS 17.38.210(f) is amended to read: (f) If the board does not issue a registration to an applicant within 90 days after receiving [OF RECEIPT OF] the application filed in accordance with AS 17.38.200 and does not notify the applicant of the specific, permissible reason for its denial, in writing and within that [SUCH] time period, or if the board has adopted regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15 months after February 24, 2015, the applicant may resubmit its application directly to the local regulatory authority, under [PURSUANT TO] (c) of this section, and the local regulatory authority may issue a biennial [AN ANNUAL] registration to the applicant. If an application is submitted to a local regulatory authority under this subsection, the board shall forward to the local regulatory authority the application fee paid by the applicant to the board upon request by the local regulatory authority. * Sec. 16. AS 17.38.210(h) is amended to read: (h) A local regulatory authority issuing a registration to an applicant shall do so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted application unless the local regulatory authority finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made under [PURSUANT TO] (b) of this section in effect at the time the application is submitted to the local regulatory authority. The local government shall notify the board if a biennial [AN ANNUAL] registration has been issued to the applicant. * Sec. 17. AS 17.38.210(j) is amended to read: 2024-05-14 House Journal Page 3171 (j) A subsequent or renewed registration may be issued under (f) of this section on a biennial [AN ANNUAL] basis only upon resubmission to the local government of a new application submitted to the board under [PURSUANT TO] AS 17.38.200. * Sec. 18. AS 17.38.320 is amended to read: Sec. 17.38.320. Effect on registrations of prohibition of marijuana establishments. If a majority of voters vote to prohibit the operation of marijuana establishments under AS 17.38.300, the board may not issue, renew, or transfer, between persons or locations, a registration for a marijuana establishment located within the perimeter of the established village. A registration that may not be renewed because of a local option election held under AS 17.38.300 is void 90 days after the results of the election are certified. A registration that expires during the 90 days after the results of a local option election are certified may be extended, until it is void under this section, by payment of a prorated portion of the biennial [ANNUAL] registration fee. * Sec. 19. AS 17.38.900(18) is amended to read: (18) "retail marijuana store" means an entity registered to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities, and to sell marijuana and marijuana products to consumers, marijuana cultivation facilities, and marijuana product manufacturing facilities;" Renumber the following bill sections accordingly. Page 13, following line 21: Insert new bill sections to read: "* Sec. 27. AS 43.61.010(a) is amended to read: (a) An excise tax is imposed on the sale or transfer of marijuana from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at the rate of $12.50 an [$50 PER] ounce, or proportionate part thereof, on marijuana that is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. * Sec. 28. AS 43.61.010(f) is amended to read: (f) The marijuana education and treatment fund is established 2024-05-14 House Journal Page 3172 in the general fund. In addition to the accounting under (c) of this section, the Department of Administration shall separately account for 25 percent of the tax collected under this section and deposit it into the marijuana education and treatment fund. The Department of Administration shall deposit interest earned on the fund into the general fund. Money in the fund does not lapse. The legislature may use the annual estimated balance in the fund to make appropriations to the Department of Health for the comprehensive marijuana use education and treatment program established under AS 44.29.020(a)(14) and may use at least 50 percent of the annual estimated balance in the fund to make appropriations to the youth services grant program within the community- based marijuana misuse prevention component of that program. * Sec. 29. AS 43.61.010 is amended by adding a new subsection to read: (g) A sales tax is imposed on the sale of marijuana and marijuana products from a retail marijuana store to a consumer. Every consumer shall pay a seven percent sales tax at a retail marijuana store for all marijuana and marijuana products intended for human consumption. * Sec. 30. AS 43.61.020 is amended to read: Sec. 43.61.020. Quarterly statements [MONTHLY STATEMENT] and payments. (a) Each retail marijuana store [CULTIVATION FACILITY] shall send a statement by mail or electronically to the department on or before the last day of each quarter [CALENDAR MONTH]. The statement must contain an account of the amount of marijuana sold to consumers [OR TRANSFERRED TO RETAIL MARIJUANA STORES AND MARIJUANA PRODUCT MANUFACTURING FACILITIES IN THE STATE] during the preceding quarter [MONTH], setting out [(1)] the total number of ounces, including fractional ounces, sold and the total value of the marijuana sold [OR TRANSFERRED; (2) THE NAMES AND ALASKA ADDRESS OF EACH BUYER AND TRANSFEREE; AND (3) THE WEIGHT OF MARIJUANA SOLD OR TRANSFERRED TO THE RESPECTIVE BUYERS OR TRANSFEREES]. 2024-05-14 House Journal Page 3173 (b) The retail marijuana store [CULTIVATION FACILITY] shall pay quarterly [MONTHLY] to the department [,] all taxes, computed at the rates prescribed in this chapter, on the respective total quantities of the marijuana sold [OR TRANSFERRED] during the preceding quarter [MONTH]. The quarterly [MONTHLY] return shall be filed and the tax paid on or before the last day of each quarter [MONTH] to cover the preceding quarter [MONTH]. * Sec. 31. AS 43.61.030 is amended to read: Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent payments under this chapter shall subject the retail marijuana store [CULTIVATION FACILITY] to civil penalties under AS 43.05.220. (b) If a retail marijuana store [CULTIVATION FACILITY] fails to pay the tax to the state, the retail marijuana store's [CULTIVATION FACILITY'S] registration may be revoked in accordance with procedures established under AS 17.38.190(a)(1)." Renumber the following bill sections accordingly. Page 18, following line 2: Insert a new bill section to read: "* Sec. 38. AS 43.61.010(b) is repealed." Renumber the following bill sections accordingly. Page 18, line 3: Delete "is" Insert "and AS 43.61.010(a) are" Page 18, line 6, following "APPLICABILITY.": Insert "(a)" Page 18, line 18: Delete "sec. 16" Insert "sec. 25" Page 18, line 19: Delete "sec. 17" Insert "sec. 26" 2024-05-14 House Journal Page 3174 Page 18, line 20: Delete "sec. 23" Insert "sec. 37" Page 18, following line 20: Insert new material to read: "(b) AS 43.61.010(a), as amended by sec. 27 of this Act, applies to taxes accrued on or after the effective date of sec. 27 of this Act. * Sec. 41. Sections 11 - 19, 27, 28, and 38 of this Act take effect July 1, 2024." Renumber the following bill section accordingly. Page 18, line 21: Delete "This" Insert "Except as provided in sec. 41 of this Act, this" Representative Sumner moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Fields objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: HCS CSSB 89(L&C) am H Second Reading Amendment No. 2 YEAS: 30 NAYS: 10 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Edgmon, Foster, Gray, Hannan, C.Johnson, McCormick, McKay, Mears, Mina, Ortiz, Prax, Rauscher, Saddler, Schrage, Shaw, Stapp, Story, Sumner, Tilton, Tomaszewski, Vance, Wright Nays: Eastman, Fields, Galvin, Groh, Himschoot, D.Johnson, Josephson, McCabe, Ruffridge, Stutes And so, Amendment No. 2 was adopted and the new title follows: 2024-05-14 House Journal Page 3175 HOUSE CS FOR CS FOR SENATE BILL NO. 89(L&C) am H "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, and products containing nicotine; raising the minimum age to purchase, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to the lawful operation of retail marijuana stores; relating to the registration of marijuana establishments; relating to the tobacco use education and cessation fund; relating to retailers of and the sale of electronic smoking products and vapor products; relating to marijuana taxes; and providing for an effective date." Representative Saddler moved and asked unanimous consent that HCS CSSB 89(L&C) am H be considered engrossed, advanced to third reading, and placed on final passage. There was objection. The question being: "Shall HCS CSSB 89(L&C) am H be advanced to third reading on the same day?" The roll was taken with the following result: HCS CSSB 89(L&C) am H Second Reading Advance to Third Reading on the Same Day YEAS: 36 NAYS: 3 EXCUSED: 0 ABSENT: 1 Yeas: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan, Himschoot, C.Johnson, Josephson, McCabe, McCormick, McKay, Mears, Mina, Ortiz, Prax, Rauscher, Saddler, Schrage, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright Nays: Eastman, D.Johnson, Ruffridge Absent: Shaw And so, the motion passed. HCS CSSB 89(L&C) am H was read the third time. The question being: "Shall HCS CSSB 89(L&C) am H pass the House?" The roll was taken with the following result: 2024-05-14 House Journal Page 3176 HCS CSSB 89(L&C) am H Third Reading Final Passage YEAS: 32 NAYS: 8 EXCUSED: 0 ABSENT: 0 Yeas: Armstrong, Baker, Carpenter, Carrick, Dibert, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan, Himschoot, C.Johnson, Josephson, McCabe, McCormick, McKay, Mears, Mina, Ortiz, Prax, Rauscher, Saddler, Schrage, Shaw, Story, Stutes, Sumner, Tilton, Vance, Wright Nays: Allard, Coulombe, Cronk, Eastman, D.Johnson, Ruffridge, Stapp, Tomaszewski And so, HCS CSSB 89(L&C) am H passed the House. Representative Saddler moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. Representative C. Johnson gave notice of reconsideration on the vote on HCS CSSB 89(L&C) am H and it was taken up later.