HB0094a -1- HB 94
New Text Underlined [DELETED TEXT BRACKETED]
34-LS0554\A
HOUSE BILL NO. 94
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY REPRESENTATIVE TOMASZEWSKI
Introduced: 2/12/25
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to the registration of marijuana establishments; relating to a tax 1
exemption for qualified small businesses; relating to marijuana taxes; and providing for 2
an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 17.38.200(d) is amended to read: 5
(d) Within 45 to 90 days after receiving an application or renewal application, 6
the board shall issue a biennial [AN ANNUAL] registration to the applicant unless
7
the board finds the applicant is not in compliance with regulations enacted under 8
[PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 9
government that the applicant is not in compliance with ordinances and regulations 10
made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 11
* Sec. 2. AS 17.38.210(e) is amended to read: 12
(e) A local government may establish a schedule of biennial [ANNUAL] 13
operating, registration, and application fees for marijuana establishments, provided 14 34-LS0554\A
HB 94 -2- HB0094a
New Text Underlined [DELETED TEXT BRACKETED]
that the local government may charge the 1
(1) application fee only if an application is submitted to the local 2
government in accordance with (f) of this section; and 3
(2) registration fee only if a registration is issued by the local 4
government in accordance with (f) of this section. 5
* Sec. 3. AS 17.38.210(f) is amended to read: 6
(f) If the board does not issue a registration to an applicant within 90 days 7
after receiving [OF RECEIPT OF] the application filed in accordance with 8
AS 17.38.200 and does not notify the applicant of the specific, permissible reason for 9
its denial, in writing and within that [SUCH] time period, or if the board has adopted 10
regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications 11
under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15 12
months after February 24, 2015, the applicant may resubmit its application directly to 13
the local regulatory authority, in accordance with [PURSUANT TO] (c) of this 14
section, and the local regulatory authority may issue a biennial [AN ANNUAL] 15
registration to the applicant. If an application is submitted to a local regulatory 16
authority under this subsection, the board shall forward to the local regulatory 17
authority the application fee paid by the applicant to the board upon request by the 18
local regulatory authority. 19
* Sec. 4. AS 17.38.210(h) is amended to read: 20
(h) A local regulatory authority issuing a registration to an applicant shall do 21
so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted 22
application unless the local regulatory authority finds and notifies the applicant that 23
the applicant is not in compliance with ordinances and regulations made under 24
[PURSUANT TO] (b) of this section in effect at the time the application is submitted 25
to the local regulatory authority. The local government shall notify the board if a 26
biennial [AN ANNUAL] registration has been issued to the applicant. 27
* Sec. 5. AS 17.38.210(j) is amended to read: 28
(j) A subsequent or renewed registration may be issued under (f) of this 29
section on a biennial [AN ANNUAL] basis only upon resubmission to the local 30
government of a new application submitted to the board under [PURSUANT TO] 31 34-LS0554\A
HB0094a -3- HB 94
New Text Underlined [DELETED TEXT BRACKETED]
AS 17.38.200. 1
* Sec. 6. AS 17.38.320 is amended to read: 2
Sec. 17.38.320. Effect on registrations of prohibition of marijuana 3
establishments. If a majority of voters vote to prohibit the operation of marijuana 4
establishments under AS 17.38.300, the board may not issue, renew, or transfer, 5
between persons or locations, a registration for a marijuana establishment located 6
within the perimeter of the established village. A registration that may not be renewed 7
because of a local option election held under AS 17.38.300 is void 90 days after the 8
results of the election are certified. A registration that expires during the 90 days after 9
the results of a local option election are certified may be extended, until it is void 10
under this section, by payment of a prorated portion of the biennial [ANNUAL] 11
registration fee. 12
* Sec. 7. AS 43.20.012(a) is amended to read: 13
(a) The tax imposed by this chapter does not apply to 14
(1) an individual; 15
(2) a fiduciary; 16
(3) the income received by a regional association qualified under 17
AS 16.10.380 or nonprofit corporation holding a hatchery permit under AS 16.10.400 18
from the sale of salmon or salmon eggs under AS 16.10.450 or from a cost recovery 19
fishery under AS 16.10.455; [OR] 20
(4) the income received by a nonprofit corporation holding a permit 21
under AS 16.12.010 from the sale of shellfish under AS 16.12.080 or from a cost 22
recovery fishery under AS 16.12.090; or 23
(5) an Alaska corporation that is a qualified small business and 24
that meets the active business requirements in 26 U.S.C. 1202(e), as that 25
subsection read on January 1, 2012. 26
* Sec. 8. AS 43.20.012 is amended by adding new subsections to read: 27
(e) For the purposes of (a)(5) of this section, 28
(1) whether a corporation qualifies under (a)(5) of this section shall be 29
determined on the first day of the tax year for which the corporation claims it qualifies 30
under (a)(5) of this section; 31 34-LS0554\A
HB 94 -4- HB0094a
New Text Underlined [DELETED TEXT BRACKETED]
(2) all corporations that are members of the same parent-subsidiary 1
controlled group shall be treated as one corporation. 2
(f) In this section, 3
(1) "Alaska corporation" means a corporation that has been 4
incorporated in the state or is authorized to do business in the state; 5
(2) "parent-subsidiary controlled group" has the meaning given in 26 6
U.S.C. 1202, as that section read on January 1, 2012; 7
(3) "qualified small business" has the meaning given in 26 U.S.C. 8
1202, as that section read on January 1, 2012, and does not include a construction, 9
transportation, utility, or fisheries business. 10
* Sec. 9. AS 43.61.010(a) is amended to read: 11
(a) An excise tax is imposed on the sale or transfer of marijuana from a 12
marijuana cultivation facility to a retail marijuana store or marijuana product 13
manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at 14
the rate of $12 an [$50 PER] ounce, or proportionate part thereof, on marijuana that is 15
sold or transferred from a marijuana cultivation facility to a retail marijuana store or 16
marijuana product manufacturing facility. 17
* Sec. 10. AS 43.61.010(b) is amended to read: 18
(b) The department may exempt certain parts of the marijuana plant from the 19
excise tax described in (a) of this section [OR MAY ESTABLISH A RATE LOWER 20
THAN $50 PER OUNCE FOR CERTAIN PARTS OF THE MARIJUANA PLANT]. 21
* Sec. 11. AS 43.61.010 is amended by adding a new subsection to read: 22
(g) The tax imposed under (a) of this section is imposed on the sale or transfer 23
of marijuana by a person who, without a current valid registration, cultivates 24
marijuana in an amount that exceeds the amount allowed under AS 17.38.020 for 25
personal use. A person who cultivates marijuana without a current valid registration is 26
liable for the tax imposed under this subsection at the time the sale or transfer is made. 27
* Sec. 12. AS 43.61.020(b) is amended to read: 28
(b) The marijuana cultivation facility shall pay monthly to the department, all 29
taxes, computed at the rate [RATES] prescribed in this chapter, on the respective total 30
quantities of the marijuana sold or transferred during the preceding month. The 31 34-LS0554\A
HB0094a -5- HB 94
New Text Underlined [DELETED TEXT BRACKETED]
monthly return shall be filed and the tax paid on or before the last day of each month 1
to cover the preceding month. 2
* Sec. 13. AS 43.61.030(a) is amended to read: 3
(a) A person who is delinquent in the payment of a tax [DELINQUENT 4
PAYMENTS] under this chapter is [SHALL] subject [THE MARIJUANA 5
CULTIVATION FACILITY] to civil penalties under AS 43.05.220. 6
* Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 7
read: 8
APPLICABILITY. (a) AS 43.20.012(a), as amended by sec. 7 of this Act, and 9
AS 43.20.012(e) and (f), enacted by sec. 8 of this Act, apply to the tax year of a corporation 10
beginning on or after the effective date of this Act. 11
(b) AS 43.61.010(g), enacted by sec. 11 of this Act, and AS 43.61.030(a), as amended 12
by sec. 13 of this Act, apply to taxes accrued on or after the effective date of this Act. 13
* Sec. 15. This Act takes effect July 1, 2025. 14