Loading...
HomeMy WebLinkAbout2015-06-16 Council Packet - Work SessionMA A. Call to Order AGENDA KENAI CITY COUNCIL WORK SESSION JUNE 16, 2015 — 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.ci.kenai.ak.us B. Introduction (City Attorney Scott Bloom) C. Commercial Legalization of Cannabis Presentation (City Attorney Scott Bloom) D. Council Discussion E. Public Comment (limited to 1 minute per individual; extensions will be granted if time allows) F. Adjournment All meetings are open to the public and participation is encouraged. Agendas and supporting documents are posted on the City's website at www.ci.kenai.ak.us. For additional information, please contact the City Clerk's Office at 907 - 283 -8231. Proposed ABC Regulations Register 2015 COMMERCE, COMMUNITY AND EC DEV. 3 AAC is amended by adding a new chapter to read: Section 200. Local options 210. Change of local option 220. Removal of local option 230. Procedure for local option election 240. Prohibition of importation or purchase after election 250. Effect on licenses of restriction on sale 260. Licensing after prohibition on sale except in premises operated by municipality 270. Notice of the results of a local option election 3 AAC 306.200. Local options. (a) If a majority of the persons voting on the question vote to approve the option, or if the assembly or city council passes an ordinance to the same effect, a municipality shall adopt a local option to prohibit (1) the sale of marijuana and marijuana products; (2) the operation of any marijuana establishment, including one or more of the following license types: (A) a marijuana cultivation facility or marijuana brokerage facility; (B) a marijuana products manufacturing facility; (C) a marijuana testing facility; (D) a marijuana retail facility; (3) the sale of marijuana and marijuana products except on premises operated by the municipality under a retail marijuana license; or (4) the sale or importation for sale of marijuana and marijuana products. Register 2015 COMMERCE, COMMUNITY AND EC DEV. (b) If a majority of the persons voting on the question vote to approve the option, or if the assembly or city council passes an ordinance to the same effect, an established village shall exercise a local option to prohibit (1) the sale of marijuana and marijuana products; (2) the operation of any marijuana establishment, including one or more of the following license types: (A) a marijuana cultivation facility or marijuana brokerage facility; (B) a marijuana products manufacturing facility; (C) a marijuana testing facility; (D) a marijuana retail facility; or (3) the sale and importation for sale of marijuana and marijuana products. (c) A ballot question to adopt a local option under this section must at least contain language substantially similar to: "Shall (name of municipality or village) adopt a local option to prohibit (local option under (a) or (b) of this section)? (yes or no)." (d) The ballot for an election on the options set out in (a)(2) and (b)(2) of this section must include a brief explanation of the activity that each license type on the ballot may cant' out. (e) If a municipality dissolves under AS 29.06.450(a) or (b), a local option adopted by that municipality under (a) of this section shall continue in effect as the corresponding local option under (b) of this section for an established village having the same perimeter as the previous boundaries of the municipality. Any marijuana establishment license issued to a municipality under 3 AAC 306._ expires when the municipality dissolves. Establishment of the perimeter of an established village for purposes of this section shall be governed by AS 04.11.508. (Eff. / / , Register __) Register 2015 Authority: AS 17.38.090 COMMERCE, COMMUNITY AND EC DEV. AS 17.3 8.110 AS 17.38.900 3 AAC 306.210. Change of local option. If a majority of persons voting on the question vote to approve a local option different from one previously adopted under this section and currently in effect, or if the assembly or city council passes an ordinance to the same effect, a municipality or established village shall change the local option to the newly approved option. A ballot question to change a local option under this section must at least contain language substantially similar to: "Shall (name of municipality or village) change the local option currently in effect, that prohibits (current local option), and adopt in its place a local option to prohibit (proposed local option)? (yes or no)." (Eff. / /_, Register_) Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900 3 AAC 306.220. Removal of local option. (a) If a majority of the persons voting on the question vote to remove a local option previously adopted under this section and currently in effect, or if the assembly or city council passes an ordinance to the same effect, that local option is repealed effective the fast day of the month following certification of the results of the election. A ballot question to remove a local option under this section must at least contain language substantially similar to: "Shall (name of municipality or village) remove the local option currently in effect, that prohibits (current local option), so that no local option continues in effect? (yes or no)." (b) When issuing a license in the municipality or established village that has removed a local option, the board will give priority to any formerly licensed applicant whose license was not renewed because of the results of the previous local option election. However, an applicant described in this subsection does not have a legal right to a license and the board is not required Register 2015 COMMERCE, COMMUNITY AND EC DEV. to approve the application. (Eff. _/_ /_, Register _) Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900 3 AAC 306.230. Procedure for local option election. (a) When the local governing body of a municipality receives a petition to adopt, change, or remove a local option, and the petition is signed by a number of registered voters equal to 35 percent or more of the number of votes cast at the last regular municipal election, the governing body shall place the issue that is the subject of the petition on a separate ballot at the next regular election, or hold a special election, The local governing body shall conduct the election under the election ordinance of the municipality. (b) When the lieutenant governor receives a petition to adopt, change, or remove a local option, and the petition is signed by a number of registered voters equal to 35 percent or more of the registered voters residing in an established village, the lieutenant governor shall place the issue that is the subject of the petition upon a separate ballot at a special election conducted in compliance with AS 15. (c) In a general law municipality, AS 29.26.110 - 29.26.160 apply to a petition under (a) of this section except that the (1) the number of required signatures is determined under (a) of this section rather than under AS 29.26.130; (2) an application filed under AS 29.26.110 must at least contain language substantially similar to the questions set out under 3 AAC 306.200(c), 3 AAC 306.210, or 3 AAC 306.220 rather than language of an ordinance or resolution; (3) a petition must at least contain language substantially similar to the questions set out under 3AAC 306.200(c), 3 AAC 306.210, or 3 AAC 306.220 rather than material 4 Register 2015 required under AS 29.26.120 (a)(1) and (2). COMMERCE, COMMUNITY AND EC DEV. (d) Notwithstanding any other provisions of law, a municipality or established village may not conduct an election to change to a less restrictive option under 3 AAC 306.210, or to remove a local option under 3 AAC 306.220, or pass an ordinance to the same effect, during the first 24 months after the local option was adopted or more than once in a 36 -month period. (e) Notwithstanding AS 29.26.140(a), after a petition has been certified as sufficient to meet the requirements of (a) or (b) of this section, no other petition may be filed or certified until after the question presented in the first petition has been voted on or pass an ordinance to the same effect,. Only one local option question may be presented in an election. (Eff. / / , Register _) Authority: AS 17.38.090 AS 17.3 8.110 AS 17.38.900 3 AAC 306.240. Prohibition of importation or purchase after election. (a) If a majority of the voters vote to prohibit the importation for sale of marijuana and marijuana products under 3 AAC 306.200(a)(4) or (b)(3), or if the assembly or city council passes an ordinance to the same effect, a person, beginning on the first day of the month following certification of the results of the election, may not knowingly send, transport, or bring marijuana or marijuana products into the municipality or established village. (b) A person who resides in a municipality or established village that has adopted a local option under 3 AAC 306.200(x) or (b) may not purchase marijuana or marijuana products from another person who has sent, transported, or brought marijuana or marijuana products into the municipality or established village in violation of the local option. (c) In this section, (1) "bring" means to carry or convey or to attempt or solicit to cant' or convey; Register 2015 COMMERCE, COMMUNITY AND EC DEV. (2) "send" means to cause to be taken or distributed or to attempt or solicit to cause to be taken or distributed, and includes use of the United States Postal Service; (3) "transport" means to ship by any method, and includes delivering or transferring or attempting or soliciting to deliver or transfer marijuana or marijuana products to be shipped to, delivered to, or left or held for pickup by any person. (Eff. / / , Register ___) Authority: AS 17.38.090 AS 17.3 8.110 AS 17.38.900 3 AAC 306.250. Effect on licenses of restriction on sale. If a majority of the voters vote under 3 AAC 306.200(a) or (b) to prohibit sale of marijuana and marijuana products or the operation of marijuana establishments, or if the assembly or city council passes an ordinance to the same effect, the board may not issue, renew, or transfer between persons or locations a license for a marijuana establishment with premises located within the boundary of the municipality or in the unincorporated area within ten miles of the boundaries of the municipality, or within the perimeter of the established village. A license for a marijuana establishment within the boundary of the municipality or in the unincorporated area within ten miles of the boundary of the municipality, or within the perimeter of the established village, is void 90 days after the results of the election are certified. A license 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 annual license fee. (Eff. _/_ /_, Register ___) Authority: AS 17.38.090 AS 17.3 8.110 AS 17.38.900 3 AAC 306.260. Licensing after prohibition on sale except in premises operated by municipality. (a) If a majority of the voters vote under 3 AAC 306.200(a)(3) to prohibit sale of marijuana and marijuana products except by the municipality, or operation of marijuana Register 2015 COMMERCE, COMMUNITY AND EC DEV. establishments except marijuana establishments operated by the municipality, or if the assembly or city council passes an ordinance to the same effect, the board may not issue, renew, or transfer a marijuana establishment license in any other person's name within the boundaries of a municipality and in unincorporated areas within ten miles of the boundaries of the municipality. A license in effect is void 90 days after the results of the election are certified. A license 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 subsection, by payment of a prorated portion of the annual license fee. (b) If a majority of the voters approve the sale of marijuana and marijuana products by the municipality, or the operation of a marijuana establishment by the municipality, the municipality's local governing body shall apply for a license to operate the type of marijuana establishment listed on the ballot and approved by a majority of the voters. The municipality shall operate the marijuana establishment subject to the conditions and fees applicable to the applicable type of license. Nothing in this section precludes a municipality from applying to be a licensee under other provisions of this title. (Eff. _/ /_, Register _) Authority: AS 17.38.090 AS 17.38.110 AS 17.38.900 3 AAC 306.270. Notice of the results of a local option election. (a) If a majority of the voters vote to adopt, change, or remove a local option under 3 AAC 306.200 -3 AAC 306.220 or if the assembly or city council passes an ordinance to the same effect,: (1) the clerk of the municipality, or, if the election is in an established village, the lieutenant governor, shall notify the board of the results of the election or of the passage of the ordinance immediately after the results of the election are certified or the ordinance is formally adopted; Register 2015 COMMERCE, COMMUNITY AND EC DEV. (2) the municipality or established village shall post public notice of the prohibition in a central location in the municipality or village before the date the prohibition becomes effective; and (3) the board shall immediately notify the Department of Law and the Department of Public Safety of the results of the election. (Eff. _/_ / , Register Authority: AS 17.38.090 AS 17.3 8.110 AS 17.38.900 In this section, "local governing body" means, as appropriate, a city council, a borough assembly, or a traditional village council, but does not include a corporation established under the Alaska Native Claims Settlement Act. Register 2015 COMMERCE, COMMUNITY AND EC DEV. 3 AAC 306990. Definitions. (a) In AS 17.38, (1) "assist" does not include (A) using, displaying, purchasing, or transporting marijuana in excess of the amount allowed in AS 17.38.020; (B) possessing, growing, processing, or transporting marijuana plants in excess of the amount allowed in AS 17.38.020; (C) growing marijuana plants for another person in a place other than that other person's residence; (2) "personal cultivation" does not include (A) using, displaying, purchasing, or transporting marijuana in excess of the amount allowed in AS 17.38.020; (B) possessing, growing, processing, or transporting marijuana plants in excess of the amount allowed in AS 17.38.020; (C) growing marijuana plants for another person in a place other than that other person's residence. (b) In AS 17.38 and this chapter, unless the context requires otherwise, "adulterated food or drink product" means a product which is intended to be consumed orally and which existed without marijuana in a form ready for consumption to which marijuana was subsequently added by any process. Adulterated food or drink products do not include raw ingredients which are combined with marijuana in a manufacturing process; "edible marijuana product" means any marijuana product which is intended to be consumed orally, including but not limited to, any type of food, or drink. Edible marijuana products do not include adulterated food or drink products; Register 2015 COMMERCE, COMMUNITY AND EC DEV. "licensed premises" means any or all designated portions of a building or structure, rooms or enclosures in the building or structure, used, controlled, or operated by a licensee in the conduct of business for which the licensee is licensed by the board at the specific address for which the license is issued; "local governing body" means, as appropriate, a city council, a borough assembly, or a traditional village council, but does not include a corporation established under the Alaska Native Claims Settlement Act; "marijuana concentrate" means resin, oil, wax, or any other substance derived from the marijuana plant by any method which isolates the THC- bearing resins of the plant; "marijuana product" means concentrated marijuana and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures; "marijuana plant" means a living organism of genus Cannabis capable of absorbing water and inorganic substances through its roots, and synthesizing nutrients in its leaves by photosynthesis; "possess" means having physical possession or the exercise of dominion or control over property. (Eff. _/_ /_, Register ) Authority: AS 17.38.090 AS 17.3 8.110 10 AS 17.38.900 Ballot Measure 2 "An Act to tax and regulate the production, sale, and use of marijuana." BE IT ENACTED BY THE PEOPLE OF THE STATE OF ALASKA: *Section 1. AS 17 is amended by adding a new chapter to read: Chapter 38. The regulation of marijuana Sec. 17.38.010. Purpose and findings. (a) In the interest of allowing law enforcement to focus on violent and property crimes, and to enhance individual freedom, the people of the state of Alaska find and declare that the use of marijuana should be legal for persons 21 years of age or older. (b) In the interest of the health and public safety of our citizenry, the people of the state of Alaska further find and declare that the production and sale of marijuana should be regulated so that: (1) Individuals will have to show proof of age before purchasing marijuana; (2) Legitimate, taxpaying business people, and not criminal actors, will conduct sales of marijuana; and (3) Marijuana sold by regulated businesses will be labeled and subject to additional regulations to ensure that consumers are informed and protected. (c) The people of the state of Alaska further declare that the provisions of this Act are not intended to diminish the right to privacy as interpreted by the Alaska Supreme Court in Ravin v. State of Alaska. (d) Nothing in this Act proposes or intends to require any individual or entity to engage in any conduct that violates federal law, or exempt any individual or entity from any requirement of federal law, or pose any obstacle to federal enforcement of federal law. Sec. 17.38.020. Personal use of marijuana. Notwithstanding any other provision of law, except as otherwise provided in this chapter, the following acts, by persons 21 years of age or older, are lawful and shall not be a criminal or civil offense under Alaska law or the law of any political subdivision of Alaska or be a basis for seizure or forfeiture of assets under Alaska law: (a) Possessing, using, displaying, purchasing, or transporting marijuana accessories or one ounce or less of marijuana; (b) Possessing, growing, processing, or transporting no more than six marijuana plants, with three or fewer being mature, flowering plants, and possession of the marijuana produced by the plants on the premises where the plants were grown; (c) Transferring one ounce or less of marijuana and up to six immature marijuana plants to a person who is 21 years of age or older without remuneration; (d) Consumption of marijuana, except that nothing in this chapter shall permit the consumption of marijuana in public; and (e) Assisting another person who is 21 years of age or older in any of the acts described in paragraphs (a) through (d) of this section. Sec. 17.38.030. Restrictions on personal cultivation, penalty. (a) The personal cultivation of marijuana described in AS 17.38.020(b) is subject to the following terms: (1) Marijuana plants shall be cultivated in a location where the plants are not subject to public view without the use of binoculars, aircraft, or other optical aids. (2) A person who cultivates marijuana must take reasonable precautions to ensure the plants are secure from unauthorized access. (3) Marijuana cultivation may only occur on property lawfully in possession of the cultivator or with the consent of the person in lawful possession of the property. (b) A person who violates this section while otherwise acting in compliance with AS 17.38.020(b) is guilty of a violation punishable by a fine of up to $750. Sec. 17.38.040. Public consumption banned, penalty. It is unlawful to consume marijuana in public. A person who violates this section is guilty of a violation punishable by a fine of up to $100. Sec. 17.38.050. False identification, penalty. (a) A person who is under 21 years of age may not present or offer to a marijuana establishment or the marijuana establishment's agent or employee any written or oral evidence of age that is false, fraudulent or not actually the person's own, for the purpose of: (1) Purchasing, attempting to purchase or otherwise procuring or attempting to procure marijuana or marijuana products; or (2) Gaining access to a marijuana establishment. (b) A person who violates this section is guilty of a violation punishable by a fine of up to $400. Sec. 17.38.060. Marijuana accessories authorized. Notwithstanding any other provision of law, it is lawful and shall not be an offense under Alaska law or the law of any political subdivision of Alaska or be a basis for seizure or forfeiture of assets under Alaska law for persons 21 years of age or older to manufacture, possess, or purchase marijuana accessories, or to distribute or sell marijuana accessories to a person who is 21 years of age or older. Sec. 17.38.070. Lawful operation of marijuana- related facilities. (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 his or her capacity as an owner, employee or agent of a retail marijuana store, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (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 consumers. (b) Notwithstanding any other provision of law, the following acts, when performed by a marijuana cultivation facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana cultivation facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Cultivating, manufacturing, harvesting, processing, packaging, transporting, displaying, storing, or possessing marijuana; (2) Delivering or transferring marijuana to a marijuana testing facility; (3) Receiving marijuana from a marijuana testing facility; (4) Delivering, distributing, or selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; (5) Receiving or purchasing marijuana from a marijuana cultivation facility; and (6) Receiving marijuana seeds or immature marijuana plants from a person 21 years of age or older. (c) Notwithstanding any other provision of law, the following acts, when performed by a marijuana product manufacturing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana product manufacturing facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products; (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) Delivering or selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; (5) Purchasing marijuana from a marijuana cultivation facility; and (6) Purchasing of marijuana or marijuana products from a marijuana product manufacturing facility. (d) Notwithstanding any other provision of law, the following acts, when performed by a marijuana testing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana testing facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring or delivering marijuana; (2) Receiving marijuana or marijuana products from a marijuana cultivation facility, a marijuana retail store, a marijuana products manufacturer, or a person 21 years of age or older; and (3) Returning marijuana or marijuana products to a marijuana cultivation facility, marijuana retail store, marijuana products manufacturer, or a person 21 years of age or older. (e) Notwithstanding any other provision of law, it is lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law to lease or otherwise allow the use of property owned, occupied or controlled by any person, corporation or other entity for any of the activities conducted lawfully in accordance with paragraphs (a) through (d) of this section. (f) Nothing in this section prevents the imposition of penalties upon marijuana establishments for violating this chapter or rules adopted by the board or local governments pursuant to this chapter. (g) The provisions of AS 17.30.020 do not apply to marijuana establishments. Sec. 17.38.080. Marijuana Control Board. At any time, the legislature may create a Marijuana Control Board in the Department of Commerce, Community, and Economic Development or its successor agency to assume the power, duties, and responsibilities delegated to the Alcoholic Beverage Control Board under this chapter. Sec. 17.38.090. Rulemaking. (a) Not later than nine months after the effective date of this act, the board shall adopt regulations necessary for implementation of this chapter. Such regulations shall not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. Such regulations shall include: (1) Procedures for the issuance, renewal, suspension, and revocation of a registration to operate a marijuana establishment, with such procedures subject to all requirements of AS 44.62, the Administrative Procedure Act; (2) A schedule of application, registration and renewal fees, provided, application fees shall not exceed $5,000, with this upper limit adjusted annually for inflation, unless the board determines a greater fee is necessary to carry out its responsibilities under this chapter; (3) Qualifications for registration that are directly and demonstrably related to the operation of a marijuana establishment; (4) Security requirements for marijuana establishments, including for the transportation of marijuana by marijuana establishments; (5) Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under the age of 21; (6) Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment; (7) Health and safety regulations and standards for the manufacture of marijuana products and the cultivation of marijuana; (8) Reasonable restrictions on the advertising and display of marijuana and marijuana products; and (9) Civil penalties for the failure to comply with regulations made pursuant to this chapter. (b) In order to ensure that individual privacy is protected, the board shall not require a consumer to provide a retail marijuana store with personal information other than government- issued identification to determine the consumer's age, and a retail marijuana store shall not be required to acquire and record personal information about consumers. Sec. 17.38.100. Marijuana establishment registrations. (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 prior to the expiration of the marijuana establishment's registration. (b) The board shall begin accepting and processing applications to operate marijuana establishments one year after the effective date of this act. (c) Upon receiving an application or renewal application for a marijuana establishment, the board shall immediately forward a copy of each application and half of the registration application fee to the local regulatory authority for the local government in which the applicant desires to operate the marijuana establishment, unless the local government has not designated a local regulatory authority pursuant to AS 17.3 8.11 O(c). (d) Within 45 to 90 days after receiving an application or renewal application, the board shall issue an annual registration to the applicant unless the board finds the applicant is not in compliance with regulations enacted pursuant to AS 17.38.090 or the board is notified by the relevant local government that the applicant is not in compliance with ordinances and regulations made pursuant to AS 17.38.110 and in effect at the time of application. (e) If a local government has enacted a numerical limit on the number of marijuana establishments and a greater number of applicants seek registrations, the board shall solicit and consider input from the local regulatory authority as to the local government's preference or preferences for registration. (f) Upon denial of an application, the board shall notify the applicant in writing of the specific reason for its denial. (g) Every marijuana establishment registration shall specify the location where the marijuana establishment will operate. A separate registration shall be required for each location at which a marijuana establishment operates. (h) Marijuana establishments and the books and records maintained and created by marijuana establishments are subject to inspection by the board. Sec. 17.38.110. Local control. (a) A local government may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or by a voter initiative. (b) A local government may enact ordinances or regulations not in conflict with this chapter or with regulations enacted pursuant to this chapter, governing the time, place, manner and number of marijuana establishment operations. A local government may establish civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a marijuana establishment that may operate in such local government. (c) A local government may designate a local regulatory authority that is responsible for processing applications submitted for a registration to operate a marijuana establishment within the boundaries of the local government. The local government may provide that the local regulatory authority may issue such registrations should the issuance by the local government become necessary because of a failure by the board to adopt regulations pursuant to AS 17.38.090 or to accept or process applications in accordance with AS 17.38.100. (d) A local government may establish procedures for the issuance, suspension, and revocation of a registration issued by the local government in accordance with (f) of this section or (g) of this section. These procedures shall be subject to all requirements of AS 44.62, the Administrative Procedure Act. (e) A local government may establish a schedule of annual operating, registration, and application fees for marijuana establishments, provided, the application fee shall only be due if an application is submitted to a local government in accordance with (f) of this section and a registration fee shall only be due if a registration is issued by a local government in accordance with (f) of this section or (g) of this section. (f) If the board does not issue a registration to an applicant within 90 days of receipt of the application filed in accordance with AS 17.38.100 and does not notify the applicant of the specific, permissible reason for its denial, in writing and within such time period, or if the board has adopted regulations pursuant to AS 17.38.090 and has accepted applications pursuant to AS 17.38.100 but has not issued any registrations by 15 months after the effective date of this act, the applicant may resubmit its application directly to the local regulatory authority, pursuant to (c) of this section, and the local regulatory authority may issue an annual registration to the applicant. If an application is submitted to a local regulatory authority under this paragraph, 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. (g) If the board does not adopt regulations required by AS 17.38.090, an applicant may submit an application directly to a local regulatory authority after one year after the effective date of this act and the local regulatory authority may issue an annual registration to the applicant. (h) A local regulatory authority issuing a registration to an applicant shall do so within 90 days 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 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 an annual registration has been issued to the applicant. (i) A registration issued by a local government in accordance with (f) of this section or (g) of this section shall have the same force and effect as a registration issued by the board in accordance with AS 17.38.100. The holder of such registration shall not be subject to regulation or enforcement by the board during the term of that registration. 0) A subsequent or renewed registration may be issued under (f) of this section on an annual basis only upon resubmission to the local government of a new application submitted to the board pursuant to AS 17.38.100. (k) A subsequent or renewed registration may be issued under (g) of this section on an annual basis if the board has not adopted regulations required by AS 17.38.090 at least 90 days prior to the date upon which such subsequent or renewed registration would be effective or if the board has adopted regulations pursuant to AS 17.38.090 but has not, at least 90 days after the adoption of such regulations, issued registrations pursuant to AS 17.38.100. (1) Nothing in this section shall limit such relief as may be available to an aggrieved party under AS 44.62, the Administrative Procedure Act. Sec. 17.38.120. Employers, driving, minors and control of property. (a) Nothing in this chapter is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees. (b) Nothing in this chapter is intended to allow driving under the influence of marijuana or to supersede laws related to driving under the influence of marijuana. (c) Nothing in this chapter is intended to permit the transfer of marijuana, with or without remuneration, to a person under the age of 21. (d) Nothing in this chapter shall prohibit a person, employer, school, hospital, recreation or youth center, correction facility, corporation or any other entity who occupies, owns or controls private property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property. Sec. 17.38.130. Impact on medical marijuana law. Nothing in this chapter shall be construed to limit any privileges or rights of a medical marijuana patient or medical marijuana caregiver under AS 17.37. Sec. 17.38.900. Definitions. As used in this chapter unless the context otherwise requires: (1) "Board" means the Alcoholic Beverage Control Board established by AS 04.06. (2) "Consumer" means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by persons 21 years of age or older, but not for resale to others. (3) "Consumption" means the act of ingesting, inhaling, or otherwise introducing marijuana into the human body. (4) "Local government' means both home rule and general law municipalities, including boroughs and cities of all classes and unified municipalities. (5) "Local regulatory authority" means the office or entity designated to process marijuana establishment applications by a local government. (6) "Marijuana" means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. "Marijuana" does not include fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products. (7) "Marijuana accessories" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body. (8) "Marijuana cultivation facility" means an entity registered to cultivate, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. (9) "Marijuana establishment' means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store. (10) "Marijuana product manufacturing facility" means an entity registered to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers. (11) "Marijuana products" means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. (12) "Marijuana testing facility" means an entity registered to analyze and certify the safety and potency of marijuana. (13) "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. (14) "Unreasonably impracticable" means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson. *Sec. 2. AS 43 is amended by adding a new chapter to read: Chapter 61. Excise tax on marijuana Sec. 43.61.010. Marijuana tax. (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 $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. (b) The department may exempt certain parts of the marijuana plant from the excise tax described in (a) of this section or may establish a rate lower than $50 per ounce for certain parts of the marijuana plant. Sec. 43.61.020. Monthly Statement and Payments. (a) Each marijuana cultivation facility shall send a statement by mail or electronically to the department on or before the last day of each calendar month. The statement must contain an account of the amount of marijuana sold or transferred to retail marijuana stores and marijuana product manufacturing facilities in the state during the preceding month, setting out (1) the total number of ounces, including fractional ounces 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. (b) The marijuana cultivation facility shall pay 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 month. The monthly return shall be filed and the tax paid on or before the last day of each month to cover the preceding month. Sec. 43.61.030. Administration and Enforcement of Tax. (a) Delinquent payments under this chapter shall subject the marijuana cultivation facility to civil penalties under AS 43.05.220. (b) If a marijuana cultivation facility fails to pay the tax to the state the marijuana cultivation facility's registration may be revoked in accordance with procedures established under AS 17.38.090(a)(1). *Sec. 3. The provisions of this Act are independent and severable, and, except where otherwise indicated in the text, shall supersede conflicting statutes, local charter, ordinance, or resolution, and other state and local provisions. If any provision of this Act, or the application thereof to any person or circumstance, is found to be invalid or unconstitutional, the remainder of this Act shall not be affected and shall be given effect to the fullest extent possible.