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CS FOR HOUSE BILL NO. 91(STA)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE HOUSE STATE AFFAIRS COMMITTEE
Offered: 3/12/25
Referred: Finance
Sponsor(s): REPRESENTATIVE CARRICK
A BILL
FOR AN ACT ENTITLED
"An Act relating to the lawful operation of retail marijuana stores; relating to 1
marijuana cultivation; relating to the registration of marijuana establishments; relating 2
to marijuana taxes; relating to the duties of the Department of Revenue; and providing 3
for an effective date." 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
* Section 1. AS 17.38.070(a) is amended to read: 6
(a) Notwithstanding any other provision of law, the following acts, when 7
performed by a retail marijuana store with a current, valid registration, or a person 21 8
years of age or older who is acting in the person's capacity as an owner, employee, or 9
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 34-LS0528\N
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(2) delivering or transferring marijuana or marijuana products to a 1
marijuana testing facility; 2
(3) receiving marijuana or marijuana products from a marijuana testing 3
facility; 4
(4) purchasing marijuana from a marijuana cultivation facility; 5
(5) purchasing marijuana or marijuana products from a marijuana 6
product manufacturing facility; and 7
(6) delivering, distributing, or selling marijuana or marijuana products 8
to a consumer, a marijuana cultivation facility, or a marijuana product 9
manufacturing facility [CONSUMERS]. 10
* Sec. 2. AS 17.38 is amended by adding a new section to read: 11
Sec. 17.38.075. Marijuana inventory tracking at marijuana cultivation 12
facilities. A marijuana cultivation facility shall assign a tracking number to each crop 13
of marijuana plants when the height of one or more plants exceeds eight inches. The 14
board may not require a marijuana cultivation facility to assign an individual tracking 15
number to each plant propagated, grown, or cultivated on the marijuana cultivation 16
facility's premises. 17
* Sec. 3. AS 17.38.200(a) is amended to read: 18
(a) Each application or renewal application for a registration to operate a 19
marijuana establishment shall be submitted to the board. A renewal application may be 20
submitted up to 90 days before the expiration of the marijuana establishment's 21
registration. When filing an application for a new registration under this subsection, 22
the applicant shall submit the applicant's fingerprints and the fees required by the 23
Department of Public Safety under AS 12.62.160 for criminal justice information and 24
a national criminal history record check. When filing an application for renewal of 25
registration, an applicant shall submit the applicant's fingerprints and the fees required 26
by the Department of Public Safety under AS 12.62.160 for criminal justice 27
information and a national criminal history record check every six [FIVE] years. The 28
board shall forward the fingerprints and fees to the Department of Public Safety to 29
obtain a report of criminal justice information under AS 12.62 and a national criminal 30
history record check under AS 12.62.400. 31 34-LS0528\N
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* Sec. 4. AS 17.38.200(d) is amended to read: 1
(d) Within 45 to 90 days after receiving an application or renewal application, 2
the board shall issue a biennial [AN ANNUAL] registration to the applicant unless 3
the board finds the applicant is not in compliance with regulations enacted under 4
[PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 5
government that the applicant is not in compliance with ordinances and regulations 6
made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 7
* Sec. 5. AS 17.38.210(e) is amended to read: 8
(e) A local government may establish a schedule of biennial [ANNUAL] 9
operating, registration, and application fees for marijuana establishments, provided 10
that the local government may charge the 11
(1) application fee only if an application is submitted to the local 12
government in accordance with (f) of this section; and 13
(2) registration fee only if a registration is issued by the local 14
government in accordance with (f) of this section. 15
* Sec. 6. AS 17.38.210(f) is amended to read: 16
(f) If the board does not issue a registration to an applicant within 90 days 17
after receiving [OF RECEIPT OF] the application filed in accordance with 18
AS 17.38.200 and does not notify the applicant of the specific, permissible reason for 19
its denial, in writing and within that [SUCH] time period, or if the board has adopted 20
regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications 21
under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15 22
months after February 24, 2015, the applicant may resubmit its application directly to 23
the local regulatory authority, under [PURSUANT TO] (c) of this section, and the 24
local regulatory authority may issue a biennial [AN ANNUAL] registration to the 25
applicant. If an application is submitted to a local regulatory authority under this 26
subsection, the board shall forward to the local regulatory authority the application fee 27
paid by the applicant to the board upon request by the local regulatory authority. 28
* Sec. 7. AS 17.38.210(h) is amended to read: 29
(h) A local regulatory authority issuing a registration to an applicant shall do 30
so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted 31 34-LS0528\N
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application unless the local regulatory authority finds and notifies the applicant that 1
the applicant is not in compliance with ordinances and regulations made under 2
[PURSUANT TO] (b) of this section in effect at the time the application is submitted 3
to the local regulatory authority. The local government shall notify the board if a 4
biennial [AN ANNUAL] registration has been issued to the applicant. 5
* Sec. 8. AS 17.38.210(j) is amended to read: 6
(j) A subsequent or renewed registration may be issued under (f) of this 7
section on a biennial [AN ANNUAL] basis only upon resubmission to the local 8
government of a new application submitted to the board under [PURSUANT TO] 9
AS 17.38.200. 10
* Sec. 9. AS 17.38.320 is amended to read: 11
Sec. 17.38.320. Effect on registrations of prohibition of marijuana 12
establishments. If a majority of voters vote to prohibit the operation of marijuana 13
establishments under AS 17.38.300, the board may not issue, renew, or transfer, 14
between persons or locations, a registration for a marijuana establishment located 15
within the perimeter of the established village. A registration that may not be renewed 16
because of a local option election held under AS 17.38.300 is void 90 days after the 17
results of the election are certified. A registration that expires during the 90 days after 18
the results of a local option election are certified may be extended, until it is void 19
under this section, by payment of a prorated portion of the biennial [ANNUAL] 20
registration fee. 21
* Sec. 10. AS 17.38.900(18) is amended to read: 22
(18) "retail marijuana store" means an entity registered to purchase 23
marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana 24
products from marijuana product manufacturing facilities, and to sell marijuana and 25
marijuana products to consumers, marijuana cultivation facilities, and marijuana 26
product manufacturing facilities; 27
* Sec. 11. AS 43.61.010(a) is amended to read: 28
(a) An excise tax is imposed on the sale or transfer of marijuana from a 29
marijuana cultivation facility to a retail marijuana store or marijuana product 30
manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at 31 34-LS0528\N
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the rate of $12.50 an [$50 PER] ounce, or proportionate part thereof, on marijuana 1
that is sold or transferred from a marijuana cultivation facility to a retail marijuana 2
store or marijuana product manufacturing facility. 3
* Sec. 12. AS 43.61.010(f) is amended to read: 4
(f) The marijuana education and treatment fund is established in the general 5
fund. In addition to the accounting under (c) of this section, the Department of 6
Administration shall separately account for 25 percent of the tax collected under this 7
section and deposit it into the marijuana education and treatment fund. The 8
Department of Administration shall deposit interest earned on the fund into the general 9
fund. Money in the fund does not lapse. The legislature may use the annual estimated 10
balance in the fund to make appropriations to the Department of Health for the 11
comprehensive marijuana use education and treatment program established under 12
AS 44.29.020(a)(14) and may use at least 50 percent of the annual estimated 13
balance in the fund to make appropriations to the youth services grant program 14
within the community-based marijuana misuse prevention component of that 15
program. 16
* Sec. 13. AS 43.61.010 is amended by adding new subsections to read: 17
(g) In addition to the accounting under (c) and (f) of this section, the 18
Department of Administration shall separately account for 25 percent of the tax 19
collected under this section and deposit it into the public education fund. 20
(h) A sales tax is imposed on the sale of marijuana and marijuana products 21
from a retail marijuana store to a consumer. Every consumer shall pay a six percent 22
sales tax at a retail marijuana store for all marijuana and marijuana products intended 23
for human consumption. 24
* Sec. 14. AS 43.61.020 is amended to read: 25
Sec. 43.61.020. Quarterly statements [MONTHLY STATEMENT] and 26
payments. (a) Each retail marijuana store [CULTIVATION FACILITY] shall send a 27
statement by mail or electronically to the department on or before the last day of each 28
quarter [CALENDAR MONTH]. The statement must contain an account of the 29
amount of marijuana sold to consumers [OR TRANSFERRED TO RETAIL 30
MARIJUANA STORES AND MARIJUANA PRODUCT MANUFACTURING 31 34-LS0528\N
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FACILITIES IN THE STATE] during the preceding quarter [MONTH], setting out 1
[(1)] the total number of ounces, including fractional ounces, sold and 2
the total value of the marijuana sold [OR TRANSFERRED; 3
(2) THE NAMES AND ALASKA ADDRESS OF EACH BUYER 4
AND TRANSFEREE; AND 5
(3) THE WEIGHT OF MARIJUANA SOLD OR TRANSFERRED 6
TO THE RESPECTIVE BUYERS OR TRANSFEREES]. 7
(b) The retail marijuana store [CULTIVATION FACILITY] shall pay 8
quarterly [MONTHLY] to the department [,] all taxes, computed at the rates 9
prescribed in this chapter, on the respective total quantities of the marijuana sold [OR 10
TRANSFERRED] during the preceding quarter [MONTH]. The quarterly 11
[MONTHLY] return shall be filed and the tax paid on or before the last day of each 12
quarter [MONTH] to cover the preceding quarter [MONTH]. 13
* Sec. 15. AS 43.61.030 is amended to read: 14
Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent 15
payments under this chapter shall subject the retail marijuana store [CULTIVATION 16
FACILITY] to civil penalties under AS 43.05.220. 17
(b) If a retail marijuana store [CULTIVATION FACILITY] fails to pay the 18
tax to the state, the retail marijuana store's [CULTIVATION FACILITY'S] 19
registration may be revoked in accordance with procedures established under 20
AS 17.38.190(a)(1). 21
* Sec. 16. AS 44.25.020 is amended to read: 22
Sec. 44.25.020. Duties of department. The Department of Revenue shall 23
(1) enforce the tax laws of the state; 24
(2) collect, account for, have custody of, invest, and manage all state 25
funds and all revenues of the state except revenues incidental to a program of licensing 26
and regulation carried on by another state department, funds managed and invested by 27
the Alaska Retirement Management Board, and as otherwise provided by law; 28
(3) invest and manage the balance of the power development fund in 29
accordance with AS 44.83.386; 30
(4) administer the surety bond program for licensure as a fish 31 34-LS0528\N
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processor or primary fish buyer; 1
(5) provide reasonable assistance to the Alaska Industrial Development 2
and Export Authority under AS 44.88.850(c); 3
(6) establish at least one facility in each judicial district to collect 4
monthly statements and payments from retail marijuana stores under 5
AS 43.61.020. 6
* Sec. 17. AS 43.61.010(b) is repealed. 7
* Sec. 18. AS 43.61.010(a) is repealed January 1, 2026. 8
* Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 9
read: 10
APPLICABILITY. AS 43.61.010(a), as amended by sec. 11 of this Act, applies to 11
taxes accrued on or after the effective date of sec. 11 of this Act. 12
* Sec. 20. Sections 13 - 16 of this Act take effect January 1, 2026. 13
* Sec. 21. Except as provided in sec. 20 of this Act, this Act takes effect July 1, 2025. 14