Legislature(2023 - 2024)

2024-05-14 House Journal

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2024-05-14                     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                                                                    

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    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                                                                  

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    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:                                                                             

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         (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"                                                                                                            

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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.