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HomeMy WebLinkAbout2015-10-28 Planning & Zoning Packet - Work Session CITY OF KENAI PLANNING & ZONING COMMISSION AGENDA - WORK SESSION CITY COUNCIL CHAMBERS October 28, 2015, 6:00 – 6:45 p.m.** 1. Call to Order 2. Commission Discussion  Discuss and review proposed draft Amendment to Title 12 and Title 14 of the Kenai Municipal Code, relating to Establishments and Businesses engaged in the Sale, Cultivation, Manufacture and Consumption of Marijuana within the City of Kenai. 3. Public Comment (limited to 3 minutes per individual; extensions will be granted if time allows) 4. Adjournment **The work session may continue after the regularly scheduled meeting at the discretion of the Planning & Zoning Commission. *Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated. The Planning & Zoning Commission may relax this restriction. 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Staff ha arijuana Es the final d e that have ana Establ ance from 2 vation and was also ch uare inches – Signs is , Alaska 99 / FAX: 907- r the Octob 5, the Plan egarding a 2 – Health rcial Mariju anufacture Use Table he 4 Mariju e City of K ovided dire or Standard RS-2 and has updated Staff has er to see K 20.230 – H Standards as also upd tablishmen draft versio e been upd ishment lice 200 feet to productio hanged to a s or 400 sq more restri 9611-7794 -283-3014 ber nning draft and uana and e and uana Kenai ction d and d RU d the also Kenai Home s for dated nts. on of dated ense 500 on of allow quare ctive 1 and does not allow for the placement of more than 2 signs. Sign sizes are limited to 120 square feet per premises or up to 200 square feet if more than one business is located on the premises within the Commercial and Industrial Zones. In the Limited Commercial Zone, sign sizes are limited to 32 square feet. For consistency with the proposed regulations released by the Marijuana Control Board, staff has updated the proposed Ordinance as follows: 1.) Definition of Marijuana Retail Facility has been changed to now read Retail Marijuana Store. 2.) Definitions of “Licensed”, “Licensee”, and “Licensed Premises” have been added to KMC 14.20.320. 3.) Marijuana Cultivation Product Manufacturing Facility has been revised as defined by Alaska State Law. 4.) KMC 14.20.340 – General Standards has been updated to require written consent of the property owner for the placement of a Commercial Marijuana Establishment. 5.) KMC 14.20.340 – Buffers distances have been updated to 500 for all Commercial Marijuana Establishments to be consistent with the proposed regulations as well as Alaska Statues 11.71.040 for Drug Free School Zones. 6.) KMC 14.20.350 has been added to regulate Marijuana Cultivation Facilities in Residential Zones. 7.) KMC 14.20.360 has been added to limit placement of Marijuana Cultivation Facilities on lots less than 40,000 square feet in size. 7.) Definitions of Marijuana Cultivation Facility, Indoor Standard and Limited have been updated to require all growing, preparation and packaging within a fully enclosed secure facility or greenhouse with view obscuring rigid walls, a roof, and doors. Staff like to please ask the Commission to review the proposed Ordinance and then provide any comments or proposed revisions at the Work Session. Based on the comments, staff will update the proposed Ordinance for consideration by the Commission at the regular rescheduled meeting of November 10, 2015. For the Planning and Zoning Commissioners benefit, staff has included the final draft of the proposed State of Alaska regulations to regulate Marijuana being considered by the Marijuana Control Board. Thank you for your consideration. 2 AN ORD KENAI M REGULA MUNICI MARIJU CODE 1 CREATE AMEND COMME MARIJU STANDA MARIJU MARIJU (C), RU RESIDE (RS-2), COMME (E), REC CENTRA HOUSEK WHERE Measure codified WHERE ordinan pursuan establish WHERE Statue 1 WHERE provide and welf WHERE Memora enforcem and, Ne DINANCE O MUNICIPAL ATIONS, PAL CODE UANA ESTA 14.20.320 – E STANDA CHAPTER ERCIAL M UANA TEST ARD; MAR UANA STO UANA PROD URAL RES ENTIAL (RS URBAN R ERCIAL (GC CREATION AL MIXED KEEPING C EAS, on No e 2, an Ac as Alaska EAS, Alaska ces or regu nt to this ch hment oper EAS, the C 17.38 as we EAS, the C responsibl fare; and, EAS, the Un andum”, da ment priori ew Text Un OF THE CO L CODE TI ADD MA E 14.20.230 ABLISHME – DEFINITIO ARDS FOR R KENAI MU MARIJUANA TING FAC RIJUANA C ORE, MARI DUCT MAN SIDENTIAL ), SUBURB RESIDENT C), LIGHT I (R), TOWN D USE CHANGES. ovember 4, t to tax an Statue 17.3 a Statue 17 ulations not hapter, gov rations”; an ity of Kena ell as the lo City of Ken le Zoning R nited State ated Februa ities, includ nderlined; [D CITY ORDINAN OUNCIL OF ITLE 12 - ARIJUANA– 0 – HOME NTS AS A ONS TO AD R COMMER UNICIPAL C A ESTABL CILITY; MA CULTIVATI IJUANA C NUFACTUR (RR), R BAN RESID TIAL (RU), INDUSTRIA NSITE HIST (CMU) Z 2014, the nd regulate 38; and, .38.110 sta t in conflic verning the nd, ai is the l ocal zoning nai, as a h Regulations es Departm ary 14, 20 ding “Preve DELETED T Y OF KENA NCE NO. *- F THE CIT HEALTH A RELATED E OCCUPAT ALLOWED DD MARIJU RCIAL MA CODE 14.2 LISHMENT ARIJUANA ION FACIL CULTIVATIO RING FACIL URAL RE DENTIAL-1 CENTRAL AL (IL), HE ORIC (TSH ONING D e voters of e the produ ates in part t with this time, place ocal regula authority; home rule s that prot ment of Jus 014) describ nting the d TEXT BRAC Spo AI -2015 TY OF KEN AND SAFET DEFINIT TIONS TO USES, AM UANA-RELA ARIJUANA 22.010 – LA USES R CULTIVAT LITY, IND ON BROKE LITY; WITH ESIDENTIAL (RS-1), SUB L COMME AVY INDUS H), LIMITED DISTRICTS f the State uction, sal t that “a loc chapter or e, manner atory auth and, municipali tect the pu stice has is bing eight distribution CKETED] onsored by: NAI, ALASK TY, TO AD TIONS, AM PROHIBIT MEND KEN ATED DEF ESTABLIS AND USE T REGULATIO TION FACI OOR LIM ER FACIL HIN THE C L-1 (RR-1 BURBAN R ERCIAL (C STRIAL (IH D COMMER AND M e of Alaska e, and use cal governm r with regu and numbe ority pursu ity, has th ublic peace ssued guida marijuana n of marijua KA, AMEND DD MARIJU MEND KE COMMER NAI MUNIC FINITIONS, HMENTS TABLE TO ONS FOR LITY, IND ITED; RE LITY, INDO ONSERVAT ), SUBUR RESIDENTIA CC), GENE H), EDUCAT RCIAL (LC) MAKE OT a passed B e of mariju ment may e lations ena er of mariju uant to Al he authorit , health, s ance (“the -related fed ana to min DING UANA ENAI CIAL CIPAL AND AND ADD R: A OOR ETAIL OOR; TION RBAN AL-2 ERAL TION AND THER Ballot uana, enact acted uana aska ty to afety Cole deral nors”; 3 New Text Underlined; [DELETED TEXT BRACKETED] WHEREAS, some uses are especially susceptible to the potential negative impacts of marijuana-related activities and land-uses, requiring buffering in addition to the standard Zoning Regulations; and, WHEREAS, the Ordinance is consistent with Alaska Statue 11.71.040 requiring the buffering of Controlled Substances within 500 feet of School Grounds and Recreation or Youth Centers; and, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Section 1. Form: That this is a code ordinance. Section 2. Enactment of Chapter 12.50 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 12.50 – Marijuana Regulation, is hereby enacted as follows: Chapter 12.50 MARIJUANA REGULATION. 12.50.010 Purpose and Scope of Authority (a) The purpose of this Chapter is to provide for the municipal regulation of Marijuana and Marijuana Establishments as allowed by state law. This Chapter and the regulations related to Marijuana Establishments herein are adopted pursuant to the express authority granted by State of Alaska Statue 17.38.110. This Chapter and regulations herein are intended to allow the City to regulate Marijuana and Marijuana Establishments within the broadest range of municipal control contemplated by state statute. (b) Local Control of Marijuana Establishments. The City may by ordinance exercise local control of Marijuana Establishments within the broadest range of municipal control contemplated by state law, including the following types of local control: (1) Prohibit the operation of all or any type of Marijuana Establishments; (2) Regulate Marijuana Establishments in a manner more restrictive than Alaska State Law; (3) Establish a local registration procedure for Marijuana Establishments; (4) Designate a local regulatory authority for the following purposes: (a) Receive half of the State of Alaska registration fee; (b) Receive a copy of each State of Alaska registration application and provide comments and input to the State on such application; and 4 New Text Underlined; [DELETED TEXT BRACKETED] (c) Process applications for registration to operate a Marijuana Establishment with the City and to issue registrations in the event that they State of Alaska authority fails to process applications in accordance with State of Alaska Statues 17.38.090 and 17.38.100; provided that, all such applications for registration must be process within 90- days of receipt of the application or resubmitted application unless the application is not in compliance with ordinance and regulations and the applicant is so notified; (5) Establish a schedule of annual fees; (6) Regulate the time and manner of operation of Marijuana Establishments; (7) Regulate the number of Marijuana Establishments; (8) Regulate the manner in which Marijuana and Marijuana Products may be displayed by a Retail Marijuana Store; (9) Establish civil penalties for violation of Kenai Municipal Code. 12.50.20 Definitions. The following definitions shall apply in the interpretation and enforcement of this chapter: (a) “Consumer” means a person 21 years of age or older who purchase marijuana or marijuana products for personal use by persons 21 years of age or older, but not for resale to others. (b) “Consume” means, in all conjugate forms, the act of ingesting, inhaling, or otherwise introducing marijuana into the human body. (c) “Local regulatory authority” means the office or entity designed to process Marijuana Establishment applicants by a local government. (d) “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. The term does not include fiber produced from the stalks, oil, or came 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. (e) 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, 5 New Text Underlined; [DELETED TEXT BRACKETED] packaging, repacking, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body. (f) “Marijuana Concentrate” means resin, oil, wax, or any other substance produced by extracting or isolating cannabinoids, Tetrahydrocannabinol (THC), or other components from a marijuana plant or from materials harvested from a marijuana plant. (g) “Marijuana Cultivation Facility” means any entity registered to cultivate, prepare, and package marijuana and to sell marijuana to Marijuana Retail Facilities, Marijuana Products Manufacturing Facilities, Marijuana Brokerage Facilities, Marijuana Testing Facilities, but not to consumers. (h) “Marijuana Establishment” means a Marijuana Cultivation Facility, a Marijuana Testing Facility, a Marijuana Product Manufacturing Facility, or a Retail Marijuana Store. (i) “Marijuana Product Manufacturing Facility” means a leally licensed, fully enclosed secure indoor facility as defined by Alaska State Law, that packages, prepares or processes marijuana into a value-added form or product subject to testing, but excluding extraction processes utilizing hazardous substances, volatile chemicals, flammable or combustible chemicals, or explosive materials or processes, including but not limited to; butane, acetone, hexane, naphtha, ethanol, methanol, petroleum ether or alcohol. Net floor area of the marijuana product manufacturing facility does not exceed 10,000 square feet. (j) “Marijuana Products” 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. (k) “Marijuana Testing Facility” means a legally licensed commercial marijuana testing facility as defined by Alaska State Law that is registered to analyze and certify the safety and potency of Marijuana and Marijuana Products. (l) “Public,” and used in Alaska State Statue 17.38.020 and 17.38.040 and as used in this Chapter means a place to which the public or a substantial group or persons has access and includes highway, rivers, lakes, transportation facilities, schools, places of amusement or business, parks, playgrounds, prisons, hallways, lobbies and other parts of apartments houses and hotels not constituting rooms or apartments designed for actual residence. Notwithstanding the foregoing, a location with proper licensure in place and that is in compliance with applicable Alaska State Law and regulation, Kenai Municipal Code, including City licensure requirements, if any, and that is operating within the restrictions of such law and licensure is not a public place within the meaning of Alaska State Statute 17.38.020 and 17.38.040. (m) “Retail Marijuana Store” means a legally licensed commercial Retail Marijuana Store as defined by Alaska State Law. A Retail Marijuana Store may sell Marijuana Accessories as defined by Alaska State Law. 6 New Text Underlined; [DELETED TEXT BRACKETED] 12.50.30 Prohibiting Certain Product Manufacturing Methods of Marijuana Concentrates. Production of or attempting to produce a marijuana concentrate by a method of extraction using flammable or combustible chemicals including, but not limited to, butane, acetone, hexane, naphtha, ethanol, methanol, petroleum ether or alcohol constitutes marijuana product manufacturing and is prohibited except where such marijuana extraction is authorized by Alaska State Law or regulation, permit, license, or registration or where such marijuana extraction is authorized by City ordinance, license, registration, or permit. 12.50.40 Prohibiting Outdoor Cultivation of Marijuana, Marijuana Products, Marijuana Accessories and Marijuana Product Manufacturing. As defined by Alaska State Law any portion of the growing, cultivating, preparation, packaging, manufacturing, processing or storing activities of Marijuana, Marijuana Products, or Marijuana Accessories which is conducted outdoors or within buildings that are not a fully enclosed secure indoor facility or greenhouse with view obscuring rigid walls, a roof and doors is hereby prohibited within the City. 12.50.40 Penalty. A person who violates Kenai Municipal Code Chapter 12.50 is subject to fine as provided for violations in Kenai Municipal Code 13.05.010 and as provided for by the State of Alaska Marijuana Control Board. Section 3. Amendment of Chapter 14.20 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 14.20 – Kenai Zoning Code, is hereby amended as follows: 14.20.230 Home Occupations. (a) Intent. It is the intent of this chapter to permit home occupations that are compatible with other permitted uses and with the residential character of a neighborhood, and that are clearly secondary or incidental to the residential use of the main building. In general, a home occupation is an accessory use so located and conducted that the average neighbor, under normal circumstances would not be aware of its existence other than for a sign as permitted in this chapter. Home occupations are permitted accessory uses only so long as all the development requirements listed in this section are observed. (b) Uses Permitted. Subject to the development requirements of this section, home occupations include, but are not limited to, the following uses: (1) Art studio; (2) Day care of no more than eight (8) children under the age twelve (12), including children related to the caregiver; 7 New Text Underlined; [DELETED TEXT BRACKETED] (3) Dressmaking; (4) Sewing and tailoring; (5) Barbers and beauticians; and (6) Tutoring and musical instruction. (c) Uses Prohibited. The following uses are prohibited as home occupations: (1) Commercial auto, small machine, and boat repair; (2) Commercial kennels or similar uses; (3) Convalescent homes for the care of more than two (2) patients; (4) Mortuaries; (5) Private schools with organized classes; (6) Real estate office; and (7) Restaurants. (8) Commercial Marijuana Establishments (d) Development Requirements. (1) Not more than one (1) person outside the family shall be employed in the home occupation. (2) No more than thirty percent (30%) of the gross floor area of all buildings on the lot shall be used for the home occupation. (3) The home occupation shall be carried on wholly within the principal building, or other buildings which are accessory thereto. Any building used for a home occupation shall be wholly enclosed. (e) Permit Application. (1) An application for a home occupation permit shall be filed in writing with the City Planning and Zoning Department and signed by the person requesting to operate the home occupation. (2) If the administrative official finds the application meets the criteria of KMC 14.20.230 and recommends that the Commission should grant the permit, the official shall place consideration of the application on the consent agenda of the Planning and Zoning Commission. Otherwise, the administrative official shall place consideration of the application as a regular new business item on the Commission’s agenda. Applications listed on the consent agenda are considered routine and will be approved by one (1) motion. There will be no separate discussion of the application unless a member of the Commission so requests, in which case the item will be 8 New Text Underlined; [DELETED TEXT BRACKETED] removed from the consent agenda and considered in its normal sequence on the agenda as part of the general orders. (3) A finding by the Planning and Zoning Commission that an application does not meet the criteria of KMC 14.20.230 may be appealed in accordance with KMC 14.20.290. (4) Notice of the consideration by the Commission of a home occupation permit application shall be published once at least two (2) days prior to the meeting in a paper of general circulation in the City of Kenai. (f) Permits Nontransferable. A home occupation permit granted under this section is not transferable to another person or location. (g) Exemption. No home occupation permit shall be required for: (1) Activities or business which are carried on solely by use of phones, computers and mail or delivery services; or (2) A State-approved relative home day care provider that provides care to no more than five (5) children (including the caregiver’s own children) under the age of twelve (12) of which no more than two (2) may be under thirty (30) months of age and who are the caregiver’s grandchildren, great- grandchildren, sibling (only if living in a separate residence), niece or nephew (not a great niece or nephew), and which involve no outside sign, little or no increase in traffic, and with only occasional visits by members of the public to the home. (h) Fire Code Inspections. (1) Day care facilities shall be inspected by the Fire Marshal for compliance with the Fire Code (KMC 8.05) prior to approval of the permit. Thereafter, they shall be inspected every other year by the Fire Marshal. Failure to comply with the Fire Code (KMC 8.05) shall be grounds for the suspension or revocation of the facilities’ home occupation permit. (2) Residences which are the subject of a home occupation permit application (other than day care facilities) may be required to be inspected by the Fire Marshal for compliance with the Fire Code (KMC 8.05) prior to approval of the permit, if the Fire Marshal determines it is necessary for public safety. 14.20.320 Definitions. (a) General Interpretation. 9 New Text Underlined; [DELETED TEXT BRACKETED] (1) Words used in the present tense include the future tense. (2) The singular number includes the plural. (3) The word “person” includes a corporation as well as an individual. (4) The word “lot” includes the word “plot” or parcel.” (5) The term “shall” is always mandatory. (6) The word “used” or “occupied” as applied to any land or building shall be constructed to include the words “intended,” “arranged” or “designed to be used or occupied.” (b) Specific Definitions. “Accessory building” means a detached building or structure, the use of which is appropriate, subordinate, and customarily incidental to that of the main building or to the main use of the land which is located on the same lot as the main building or use, except as allowed by a conditional use permit. An accessory building shall be considered to be a part of main building when joined to the main building by a common wall or when any accessory building and the main building are connected by a breezeway. “Accessory use” means a use customarily incidental and subordinate to the principal use of the land, building, or structure and located on the same lot or parcel of land. “Administrative official” means the person charged with the administration and enforcement of this chapter. “Agricultural building” means a building or structure used to shelter farm implements, hay, grain, poultry, livestock, or other farm produce, in which there is no human habitation and which is not used by the public. “Agriculture” means the science, art, and business of cultivating soil, producing crops, and raising livestock; farming. “Airport” means a location where aircraft such as fixed-wing aircraft, helicopters, and blimps take off and land. Aircraft may be stored or maintained at an airport. An airport consists of at least one (1) surface such as a runway for a plane to take off and land, a helipad, or water for takeoffs and landings, and often includes buildings such as control towers, hangars and terminal buildings. “Alley” means a public way designed and intended to provide only a secondary means of access to any property abutting thereon. “Alteration” means any change, addition, or modification in construction, location, or use classification. “Animal boarding” means any building or structure and associated premises in which animals are fed, housed, and/or exercised for commercial gain. 10 New Text Underlined; [DELETED TEXT BRACKETED] “Apartment house,” see “Dwelling, multiple-family.” “Area, building” means the total of areas taken on a horizontal plane at the main grade level of the principal building and all accessory buildings, exclusive of steps. “Assemblage” means a large gathering of people for an event such as a concert, fair, or circus. “Assisted living” means a living arrangement in which people with special needs, especially seniors with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. “Automobile sales” means the use of any building or structure and associated premises for the display and sale of new or used automobiles, panel trucks or vans, trailers, or recreation vehicles and including any warranty repair work and other repair service conducted as an accessory use. “Automobile service station” means the use of any building or structure and associated premises or other space used primarily for the retail sale and dispensing of motor fuels, tires, batteries, and other small accessories; the installation and servicing of such lubricants, tires, batteries, and other small accessories; and such other services which do not customarily or usually require the services of a qualified automotive mechanic. “Automobile wrecking” means the dismantling of used motor vehicles or trailers or the storage or sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. “Automotive repair” means the use of any building or structure and associated premises on which a business, service, or industry involving the maintenance, servicing, repair, or painting of vehicles is conducted or rendered. “Bank” means any establishment or building or structure used for a financial institution that provides financial services for its clients or members. The term “bank” includes savings and loan. “Bed and breakfast” means a residential, owner-occupied dwelling in which rooms are rented to paying guests on an overnight basis with no more than one (1) meal served daily. “Boarding house” means a dwelling where the principal use is a dwelling by the owner or keeper and where the owner or keeper provides lodging for three (3) or more persons who are not members of the owner’s or keeper’s family and the lodgers pay compensation to use one (1) or more rooms. The common parts of the building or structure are maintained by the owner or keeper who may also provide lodgers with some services, such as meals, laundry, and cleaning. Boarding houses are not motels or hotels and are not open to transient guests. “Building” means any structure built for the support, shelter, or enclosure of persons, animals, or property of any kind. “Building Code” means the building code and/or other building regulations applicable in the City. 11 New Text Underlined; [DELETED TEXT BRACKETED] “Building, existing” means a building erected prior to the adoption of the ordinance codified in this chapter or one for which a legal building permit has been issued. “Building height” means the vertical distance from the “grade,” as defined herein, to the highest point of the roof. “Building, principal or main” means a building or structure in which is conducted the principal or main use on the lot which said building is situated. “Business/consumer services” means the provision of services to others on a fee or contract basis, such as advertising and mailing; building maintenance; employment service; management and consulting services; protective services; equipment rental and leasing; commercial research; development and testing; photo finishing; and personal supply services. “Cabin rentals” means the renting out of one (1) or more individual, detached dwelling units or buildings to provide overnight sleeping accommodations for a period of less than thirty (30) consecutive days. “Cemetery” means any property used to inter the dead in buried graves or in columbarium, stacked vaults, or similar structures. “Centerline” means the line which is in the center of a public right-of-way. “Church” means a building or structure in which persons regularly assemble for worship, ceremonies, rituals, and education pertaining to a particular system of beliefs. The term “church” includes a synagogue or temple. “City” means the City of Kenai, Alaska. “Clinic” (or outpatient clinic or ambulatory care clinic) means a health care facility that is primarily devoted to the care of outpatients. Clinics can be privately operated or publicly managed and funded, and typically cover the primary health care needs of populations in local communities, in contrast to larger hospitals which offer specialized treatments and admit inpatients for overnight stays. “Collector street” means a street located and designed for the primary purpose of carrying through traffic and of connecting major areas of the City. Unless otherwise designated by the Commission, collector street shall be defined on the plan for streets and community facilities in the comprehensive development plan. “College” means an educational institution providing postsecondary (after high school) education. “Commercial kennel” has the same meaning given in KMC 3.05.010. “Commercial recreation” means a recreation facility operated as a business and open to the public for a fee. “Commission” means the Kenai Planning and Zoning Commission. “Communication antenna” has the same meaning given in KMC 14.20.255. “Communication tower” has the same meaning given in KMC 14.20.255. 12 New Text Underlined; [DELETED TEXT BRACKETED] “Conditional use” means a use which is permitted under the terms of this chapter provided that under the specified procedures, the Commission finds that certain conditions, specified in this chapter are fulfilled. Conditional uses are listed in the Land Use Table. “Condominium” means a common interest ownership dwelling in which: (1) Portions of the real estate are designated for separate ownership; (2) The remainder of the real estate is designated for common ownership solely by the owners of those portions; (3) The undivided interests in the common elements are vested in the unit owners. In the Land Use Table (KMC 14.22.010), “condominiums” shall be treated as two (2) or more family dwellings. For example, a four (4) unit condominium building would be treated as a four (4) family dwelling. “Consumer” means a person 21 years of age or older who purchase marijuana or marijuana products for personal use by persons 21 years of age or older, but not for resale to others. “Consume” means, in all conjugate forms, the act of ingesting, inhaling, or otherwise introducing marijuana into the human body. “Coverage” means that percentage of the total lot area covered by the building area. “Crematory/funeral home” means building or structure used for preparation of the deceased for display and/or interment and may also be used for ceremonies connected with interment. Preparation may include cremation, which is the process of reducing dead bodies to basic chemical compounds in the form of gases and bone fragments. This is accomplished through burning—high temperatures, vaporization, and oxidation. “Day care center” means an establishment where child care is regularly provided for children for periods of less than twenty-four (24) hours, including the building housing the facility and adjoining areas, and where tuition, fees, or other compensation for the care of the children is charged. “Dormitory” means a building, whether public or private, associated with a school, college or university and designed, used, and arranged for private sleeping, studying, and living accommodation for students. “Dwelling” means a building or any portion thereof designed or used exclusively for residential occupancy including one-family, two-family and multiple-family dwellings, but not including any other building wherein human beings may be housed. “Dwelling, one-family” means any detached building containing only one (1) dwelling unit. “Dwelling, two-family” means any building containing only two (2) dwelling units. “Dwelling, multiple-family” means any building containing three (3) or more dwelling units. 13 New Text Underlined; [DELETED TEXT BRACKETED] “Dwelling unit” means one (1) or more rooms and a single kitchen in a dwelling designed as a unit for occupancy by not more than one (1) family for living or sleeping purposes. “Elementary school” means any school usually consisting of grades pre-kindergarten through grade 6 or any combination of grades within this range. “Essential service” means the erection, construction, alteration, or maintenance by public utility companies or municipal departments or commissions, of underground or overhead gas, electrical, steam, or water transmission or distribution systems, collection, communication, supply, or disposal systems, including poles, wires, mains, drains, sewers, pipes, conduits, cables, fire alarm boxes, traffic signals, hydrants, and other similar equipment and accessories in connection therewith. This definition shall not be interpreted to include public buildings. “Family” means any number of individuals living together as a single housekeeping unit in a dwelling unit. “Farming” means a tract of land cultivated for the purpose of commercial agricultural production. “Fence, height” means the vertical distance between the ground directly under the fence and the highest point of the fence. “Floor area” means the total of each floor of a building within the surrounding outer walls but excluding vent shafts and courts. “Fraternal organization” means a group of people formally organized for a common object, purpose, or interest (usually cultural, religious or entertainment) that conducts regular meetings and has written membership requirements. “Frontage” means all the property fronting on one (1) side of a street between intersection streets. “Garage, private” means an accessory building or any portion of a main building used in connection with residential purposes for the storage of passenger motor vehicles. “Garage, public” means any garage other than a private garage, available to the public, operated for gain, and which is used for storage, repair, rental, greasing, washing, servicing, adjusting, or equipping of automobiles or other vehicles. “Gas manufacturer/storage” means the surface use of lands used in the production, the mechanical transformation, or the chemical transformation of hydrocarbon gas and includes uses for gas conditioning/compressor stations. “Storage” means surface uses necessary for storage of produced or non-native natural gas. “Governmental building” means a building or structure owned and operated by any department, commission, or agency of the United States or of a state or municipality and used to conduct official business of government. 14 New Text Underlined; [DELETED TEXT BRACKETED] “Grade (ground level)” means the average level of the finished ground at the center of all walls to a building. In case walls are parallel to and within five (5) feet of a public sidewalk, the ground level shall be measured at the sidewalk. “Greenhouse” means a building or structure, usually a glassed or clear plastic enclosure, used for the cultivation and protection of plants. “Guest room” means any room in a hotel, dormitory, boarding, or lodging house used and maintained to provide sleeping accommodations for one (1) or more persons. “Guide service” means any activity on any premises used for collecting or returning persons from recreational trips when remuneration is provided for the service. “Gunsmith” means a person who repairs, modifies, designs, or builds firearms. “High school” means a secondary school usually consisting of grades 9 through 12 or any appropriate combination of grades within this range. “Home occupation” means an accessory carried out for remuneration by a resident in the resident’s dwelling unit, excluding Commercial Marijuana Establishments. “Hospital” means an institution that provides medical, surgical, or psychiatric care and treatment for the sick or the injured. “Hotel” means a building or group of buildings containing more than five (5) guest rooms used for the purpose of offering public lodging on a day-to-day basis with or without meals. “Housing facility owned by a public housing authority with children as residents” means rental housing owned and operated by a public housing authority that allows tenancy by families with children as residents. Senior housing facilities are excluded. “Junkyard” means any space one hundred (100) square feet or more of any lot or parcel of land used for the storage, keeping, or abandonment of junk or waste material, including scrap metals or other scrap materials, or for the dismantling, demolition, or abandonment of automobiles, other vehicles, machinery, or any parts thereof. “Local regulatory authority” means the office or entity designed to process Marijuana Establishment applicants by a local government. “Library” means a collection of sources, resources, and services, and the structure in which it is housed; it is organized for use and maintained by a public body, an institution, or a private individual. “Licensed” means any Marijuana Establishment, that holds a current and valid license issued by the State of Alaska Marijuana Control Board, including a conditional license, a Marijuana Establishment is not “licensed” if a license it formerly held has expired, or has been suspended or revoked. “Licensee” means each individual identified by Alaska State Law who must be listed in an application for a Marijuana Establishment license. 15 New Text Underlined; [DELETED TEXT BRACKETED] “Licensed Premises” means any or all designed portions of a building or structure, or rooms or enclosures in the building or structure, at the specific address for which a Marijuana Establishment license is issued, and used, controlled, or operated by the Marijuana Establishment to carry out the business for which it licensed. “Loading space” means an off-street space or berth on the same lot with a building or structure to be used for the temporary parking of commercial vehicles while loading or unloading merchandise or materials. “Lodge” means a building or group of buildings containing five (5) or fewer guest rooms used for the purpose of offering public lodging on a day-to-day basis with or without meals. “Lot” means a parcel of land occupied or to be occupied by a principal use and having frontage on a public street. “Lot, corner” means a lot situated at the junction of, and bordering on, two (2) intersecting streets, two (2) platted rights-of-way, two (2) government easements, or any combination thereof. “Lot coverage” means that portion of the lot covered by buildings or structures that require a building permit. “Lot depth” means the horizontal distance separating the front and rear lot lines of a lot and at right angles to its width. “Lot line, front-corner lot” means the shortest street line of a corner lot. “Lot line, front-interior lot” means a line separating the lot from the street. “Lot line, rear” means a line that is opposite and most distant from the front lot line, and in the case of irregular, triangular, or gore shaped lot, a line not less than ten feet (10′) in length, within a lot, parallel to and at the maximum distance from the front lot line. “Lot line, side” means any lot boundary line not a front lot line or a rear lot line. “Lot width” means the mean horizontal distance separating the side lot lines of a lot and at right angles to its depth. “Manufactured housing” means a dwelling unit that meets Department of Housing and Urban Development Standards for manufactured housing and is wider than sixteen feet (16′), has a roof pitch of 4:12 or greater with roofing and siding common to standard residential construction and is transported to the site and placed on a permanent foundation. “Manufacturing/fabricating/assembly” means the mechanical or chemical transformation of materials or substances into new products including assembling of components parts, the manufacturing of products, and the blending of materials such as lubricating oils, plastics, resins or liquors. “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 16 New Text Underlined; [DELETED TEXT BRACKETED] seeds, or its resin, including marijuana concentrate. The term does not include fiber produced from the stalks, oil, or came 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. “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, repacking, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body. “Marijuana Concentrate” means resin, oil, wax, or any other substance derived from the marijuana plant by any method which isolates the Tetrahydrocannabinol (THC)- bearing resins of the plant. “Marijuana Cultivation Facility” means any entity registered to cultivate, prepare, and package marijuana and to sell marijuana to Marijuana Retail Facilities, Marijuana Products Manufacturing Facilities, Marijuana Brokerage Facilities, Marijuana Testing Facilities, but not to consumers. “Marijuana Cultivation Facility, Indoor Standard” means a legally licensed, fully enclosed Commercial Marijuana Facility as defined by Alaska State Law, in which all growing, preparation and packaging are conducted completely indoors in a fully enclosed secure indoor facility or greenhouse with view obscuring rigid walls, a roof, and doors with 500 or more square feet under cultivation. Net floor area of all cultivation facility structures shall not exceed 10,000 square feet. “Marijuana Cultivation Facility, Indoor Limited” means a legally licensed, fully enclosed Commercial Marijuana Facility as defined by Alaska State Law, in which all growing, preparation and packaging are conducted completely indoors in a fully enclosed secure indoor facility or greenhouse with view obscuring rigid walls, a roof, and doors with 500 or fewer square feet under cultivation. Net floor area of all cultivation facility structures shall not exceed 5,000 square feet. “Marijuana Cultivation Broker Facility, Indoor” means a legally licensed, fully enclosed secure indoor facility Commercial Marijuana Broker Facility as defined by Alaska State Law, for a Person providing essential business functions of a Marijuana Cultivation Facility, Indoor Limited, including storing marijuana, purchasing or arranging the purchase of the Marijuana Cultivation Facility, Indoor Limited’s marijuana crop, arranging testing and transportation of marijuana and filing the reports and paying the marijuana excise tax required under State of Alaska Statues 43.61.010 and 43.61.020. Net floor area of all cultivation broker facilities shall not exceed 10,000 square feet. “Marijuana Establishment” means a Marijuana Cultivation Facility, a Marijuana Testing Facility, a Marijuana Product Manufacturing Facility, or a Retail Marijuana Store. “Marijuana Products” 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. 17 New Text Underlined; [DELETED TEXT BRACKETED] “Marijuana Product Manufacturing Facility” means a leally licensed, fully enclosed secure indoor facility as defined by Alaska State Law, that packages, prepares or processes marijuana into a value-added form or product subject to testing, but excluding extraction processes utilizing hazardous substances, volatile chemicals, flammable or combustible chemicals, or explosive materials or processes, including but not limited to; butane, acetone, hexane, naphtha, ethanol, methanol, petroleum ether or alcohol. Net floor area of the marijuana product manufacturing facility does not exceed 10,000 square feet. “Marijuana Testing Facility” means a legally licensed commercial marijuana testing facility as defined by Alaska State Law that is registered to analyze and certify the safety and potency of Marijuana and Marijuana Products. “Mini-storage facility” means a completely enclosed structure containing three (3) or more areas or rooms available for lease or rent for the purpose of the general storage of household goods, vehicles or personal property; where the lessee of the unit is provided direct access to deposit or store items and where vehicles do not fill the majority of the allowed storage space. “Mobile home” means a structure, which is built on a permanent chassis in accordance with Department of Housing and Urban Development Standards and designed to be used as a dwelling unit, with or without a permanent foundation when connected to the required utilities. A mobile home is subject to all regulations applying thereto, whether or not wheels, axles, hitch or other appurtenances of mobility are removed and regardless of the nature of the foundation provided. “Mobile home park” means a site with required improvements and utilities for the long-term parking of mobile homes which may include services and facilities for the residents. “Modular home” means a dwelling constructed in modules or sections at a place other than the building site, built to conform to Title 4 of the Kenai Municipal Code, is transported to the site and then assembled and placed on a permanent foundation. “Motel” means a group of one (1) or more detached or semi-detached buildings containing two (2) or more individual dwelling units and/or guest rooms designed for, or used temporarily by, automobile tourists or transients, with a garage attached or parking space conveniently located to each unit, including groups designated as auto courts, motor lodges, or tourist courts. “Museum” means a building or structure that houses and cares for a collection of artifacts and other objects of scientific, artistic, or historical importance and makes them available for public viewing through exhibits that may be permanent or temporary. “Nonconforming lot” means a lot lawfully existing at the time this chapter became effective, which by reason of area or dimensions, does not meet the development requirements for the zone in which it is located. “Nonconforming structure” means a structure or portion thereof, lawfully existing at the time this chapter became effective, which by reason of its yards, coverage, height, or other aspects of design, does not meet the development requirements of this zone. 18 New Text Underlined; [DELETED TEXT BRACKETED] “Nonconforming use” means a use of a structure of land, or of a structure and land in combination, lawfully existing at the time this chapter became effective, or established on the premises of a previous nonconforming use as specified in this chapter, which is not in conformity with the uses permitted in the zone in which it exists. “Nursing, convalescent or rest home” means a building or structure used as a residence for people who require constant nursing care and/or have significant deficiencies with activities of daily living. “Office” means a room or group of rooms used for conducting the affairs of a business, profession, service, industry, or government. “Park” means a tract of land, designated by a public entity for the enjoyment of the public and generally used for active and passive recreational activities. “Parking, public lots” means a parking area available to the public, whether or not a fee for use is charged. “Parking space, private” means any automobile parking space, excluding garages, not less than nine feet (9′) wide and one hundred eighty (180) square feet in total area. “Parking space, public” means an area of not less than one hundred eighty (180) square feet exclusive of drives or aisles giving access thereto in area accessible from streets and alleys for the storage of passenger motor vehicles operated by individual drivers. “Person” means a natural person, his or her heirs, executors, administrators, or assigns, and also including firm, partnership, or corporation, or their successors and/or assigns or the agent of any of the aforesaid. “Personal services” mean establishments engaged in providing services involving the care of a person or his or her apparel. “Planned unit residential development” means an alternative method of development of a residential neighborhood under more flexible conditions than otherwise required in a specific zoning district. “Playground” means any outdoor facility, including any parking lot appurtenant thereto, intended for recreation other than team sports, open to the public, and with any portion thereof containing three or more separate apparatus intended for the recreation of children including, but not limited to, sliding boards, swing sets, and teeterboards. “Principal use” means the major or predominant use of a lot or parcel of land. “Profession” means an occupation or calling requiring the practice of a learned art through specialized knowledge based on a degree issued by an institution of high learning, e.g., Doctor of Medicine. “Property owner” means the owner shown on the latest tax assessment roll. 19 New Text Underlined; [DELETED TEXT BRACKETED] “Public” means as used in Alaska State Statue 17.38.020 and 17.38.040 and as used in this Chapter means a place to which the public or a substantial group or persons has access and includes highway, rivers, lakes, transportation facilities, schools, places of amusement or business, parks, playgrounds, prisons, hallways, lobbies and other parts of apartments houses and hotels not constituting rooms or apartments designed for actual residence. Notwithstanding the foregoing, a location with proper licensure in place and that is in compliance with applicable Alaska State Law and regulation, Kenai Municipal Code, including City licensure requirements, if any, and that is operating within the restrictions of such law and licensure is not a public place within the meaning of Alaska State Statute 17.38.020 and 17.38.040. “Recreation” means leisure activities sometimes requiring equipment and taking place at prescribed places, sites, parks, or fields. It can include active recreation, such as structured individual or team activities requiring the use of special facilities, courses, fields or equipment or passive recreation, such as activities that do not require prepared facilities such as wildlife and bird viewing, observing and photographing nature, picnicking, and walking. “Recreational vehicle” means a vehicular-type unit, primarily designed as temporary living quarters for recreational camping, or travel use, which either has its own motor power or is mounted on or drawn by another vehicle. Recreational vehicles include, but are not limited to, travel trailers, camping trailers, truck campers, and motor homes. “Recreational vehicle park” means an area established by a conditional use permit for the parking of two (2) or more recreational vehicles on a temporary basis. “Restaurant” means an establishment where food and drink is prepared, served, and consumed primarily within the principal building. “Retail business” means establishments engaged in selling goods or merchandise to the general public for business or personal/household consumption and rendering services incidental to the sale of such goods. “Retail Marijuana Store” means a legally licensed commercial Retail Marijuana Store as defined by Alaska State Law. A Retail Marijuana Store may sell Marijuana Accessories as defined by Alaska State Law. “Secondary use” means a use allowed on a lot or parcel of land only if there is also an allowed principal use on the property. “Sign” means any words, letters, parts of letters, figures, numerals, phrases, sentences, emblems, devices, trade names, or trademarks by which anything is made known, such as are used to designate an individual, firm, association, corporation, profession, business, or a commodity or product, which are visible from any public street or highway and used to attract attention. 20 New Text Underlined; [DELETED TEXT BRACKETED] “Square Feet Under Cultivation” means an area of the licensed premises of a standard or limited cultivation facility that is used for growing marijuana, measured on the perimeter or the marijuana crop or the canopy formed by marijuana plant branches and foliage; “Square Feet Under Cultivation” does not include hallways, equipment storage areas, or other areas within the licensed premises that are not used for growing marijuana such as an office, or a processing or storage area. “State highway” means a right-of-way classified by the State of Alaska as a primary or secondary highway. “Storage yard” means a lot used primarily for the storage of operational vehicles, construction equipment, construction materials or other tangible materials and equipment. “Street” means a public right-of-way used as a thoroughfare and which is designed and intended to provide the primary means of access to property abutting thereon. “Structure” means that which is built or constructed, an edifice or a building of any kind, composed of parts joined together in some definite manner. “Subsurface extraction of natural resources” means removing valuable minerals or other geological materials from the earth, from an ore body, vein or (coal) seam. Materials recovered could include gas, oil, base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock salt and potash. “Surface extraction of natural resources” means removal of material, usually soil, gravel, or sand for use at another location. “Swimming pool” means any public or private recreational facility and / or gymnasium, including any parking lot appurtenant thereto, intended primarily for use by persons under 18 years of age, which regularly provides athletic, civic, or cultural activities. “Taxidermy” means the act of mounting or reproducing dead animals, fish, and/or birds for display. “Theater” means a building or structure, or part thereof, devoted to the indoor exhibition of motion pictures and/or of live dramatic, speaking, musical, or other presentations. “Townhouse” means single-family dwelling units constructed in a series or group of two (2) or more units separated from an adjoining unit by an approved party wall or walls, extending from the basement of either floor to the roof along the linking lot line. “Tree nursery” means a place where trees/plants are propagated and grown to usable size. “Use” means the purpose for which land or a building is arranged, designed, or intended, or for which either land or a building is or may be occupied or maintained. “Variance” means the relaxation of the development requirements of this chapter to provide relief when the literal enforcement would deprive a property owner of the reasonable use of his or her real property. 21 New Text Underlined; [DELETED TEXT BRACKETED] “Warehouse” means a building or structure used for the storage of goods, wares and merchandise that will be processed, sold or otherwise disposed of off of the premises. “Wholesale business” means business conducted primarily for the purpose of selling wares or merchandise in wholesale lots to retail merchants for resale. “Yard” means an open, unoccupied space, other than a court, unobstructed from the ground to the sky, except where specifically provided by this chapter, on the same lot on which a building is situated. “Yard, front” means a yard extending across the full width of the lot between the front lot line of the lot and the nearest exterior wall of the building which is the nearest to the front lot line. “Yard, rear” means a yard extending across the full width of the lot between the most rear main building and the rear lot line. “Yard, side” means a yard on each side of a main building and extending from the front lot line to the rear lot line. The width of the required side yard shall be measured horizontally from the nearest point of a side lot line to the nearest part of the main building. “Youth center” means any public or private recreation facility and / or gymnasium, including any parking lot appurtenant thereto, intended primarily for use by persons under 18 years of age, which regularly provides athletic, civic, or cultural activities. “Zoning change” means the alteration or moving of a zone boundary; the reclassification of a lot, or parcel of land, from one zone to another; and the change of any of the regulations contained in this chapter. “Zoning ordinance or ordinances” mean the zoning ordinance of the City of Kenai and Kenai Municipal Code Chapter 14. Section 4. Amendment of Chapter 14.20 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 14.20 – Kenai Zoning Code, is hereby amended to add the following Section as follows: 14.20.330 Standards for Commercial Marijuana Establishments. The purpose of this Section is to establish general standards for Commercial Marijuana Establishments. 14.20.340 General Standards. (a) Standards for this Section (14.30.15) shall apply to all Commercial Marijuana Establishments. (b) A Commercial Marijuana Establishment shall only be allowed with a Conditional Use Permit under Kenai Municipal Code Section 14.20.150. (c) A Commercial Marijuana Establishment may only be allowed with the written consent of the owner of the property. 22 New Text Underlined; [DELETED TEXT BRACKETED] (d) As defined by Alaska State Law the growing, cultivating, preparation, packaging, manufacturing, processing or storing of all Marijuana, Marijuana Accessories, Marijuana Concentrate or Marijuana Products shall be conducted within a fully enclosed secure indoor facility or greenhouse with view obscuring rigid walls, a roof and doors. (e) All Commercial Marijuana Establishments shall not emit an odor that is detectable by the public from outside the Commercial Marijuana Establishment. (f) In all zones in which Marijuana Establishments are a Conditional Use, the applicant shall include an area map drawn to scale indicating all land uses on other properties within a 500-foot proximity of the lot upon which the applicant is seeking a Conditional Use Permit. This shall be in additional to the Conditional Use Permit submission requirements in Kenai Municipal Code Section 14.20.150. 14.20.340 Buffers. (a) No portion of a parcel upon which any Commercial Marijuana Establishment is located shall be within the following buffer distances: (1) 500 feet of any primary and secondary schools (K-12) including vocational programs, post-secondary schools including but not limited to trade, technical, or vocational schools, colleges and universities, playgrounds, parks, youth centers, public swimming pools, adult and juvenile correctional facilities, churches and housing facilities owned by a public housing authority with children as residents; and, (2) Buffer distances shall be measured from property line to property line. (b) Buffer distance measurements shall not extend beyond the nearest Ordinary High Water (OHW) mark of a river or lake. 14.20.350 Residential Zones. (a) Except as otherwise provided for in this Section, no Person or Licensee my construct, build, operate or otherwise develop a Marijuana Establishment on any parcel zoned: Rural Residential (RR), Rural Residential-1 (RR-1), Suburban Residential (RS), Suburban Residential-1 (RS-1), Suburban Residential-2 (RS- 2), Urban Residential (RU) or Townsite Historic (TSH). (b) On Lots of forty thousand (40,000) square feet or greater in size, a Person or Licensee may apply for a Conditional Use Permit to allow for the construction and operation of a Marijuana Cultivation Facility, Indoor Standard or a Marijuana Cultivation Facility, Indoor Limited as defined by Alaska State Law. 23 New Text Underlined; [DELETED TEXT BRACKETED] (c) A Marijuana Cultivation Facility, Indoor Standard or a Marijuana Cultivation Facility, Indoor Limited shall only be allowed on a Lot which has an existing structure consistent with a principal permitted use. (d) A Marijuana Cultivation Facility located in an Accessory Building shall be subject to the setback provisions in Kenai Municipal Code Section 14.24.020 – Development Requirements Table. A Person or Licensee seeking relief from the provisions in the Development Requirements Table may apply for a Variance subject to the provisions of Kenai Municipal Code Section 14.20.180. 14.20.360 Limited Commercial Zone (LC) No Person or Licensee my construct, build, operate or otherwise develop a Marijuana Cultivation Facility, Indoor Standard or a Marijuana Cultivation Facility, Indoor Limited as defined by Alaska State Law on any Lot less than forty-thousand (40,000) square feet in size. 14.20.370 Outdoor Storage. No outdoor storage of Marijuana, Marijuana Products or hazardous substances shall be allowed. Section 5. Amendment of Chapter 14.22 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 14.22 – Land Use Table, is hereby amended as follows: 14.22.010 LAND USE TABLE KEY: P = Principal Permitted Use C = Conditional Use S = Secondary Use N = Not Permitted NOTE: Reference footnotes on following pages for additional restrictions ZONING DISTRICTS LAND USES C RR RR-1 RS RS-1 RS-2 RU CC CG IL IH ED R TSH LC CMU RESIDENTIAL One-Family Dwelling C18 P P P P P P P21 S1 S2 S2 C22 P P P S1/C21 Two-, Three-Family Dwelling C18 P P P P P P P21 S1 C C C22 P P P S1/C21 Four-Family Dwelling C18 P C3,29 P N N P P21 S1 C C C22 N P C S1/C21 Five-, Six-Family Dwelling C18 C3 N P N N P P21 S1 C C N N P C S1/C21 Seven- or More Family Dwelling C18 C3 N C3 N N P P21 S1 C C N N P C S1/C21 Mobile Home Parks6 N C N C C C C C C C C N C C C C Planned Unit Residential Development7 C18 C C29 C C C C C C C C N C C C C Townhouses4 C18 C3 C3,29 C3 C3 C3 C3 C C C C C22 C C C C Accessory Building on Parcel Without Main Building or Use (See KMC N C C C C C C N N N N N N C N N 24 New Text Underlined; [DELETED TEXT BRACKETED] 14.20.200) COMMERCIAL Automotive Sales N C N N N N C P P P P N N N N P Automotive Service Stations N C N N N N C P P P P N C N N P Banks N C N C N N C P P P C N C C C P Business/Consumer Services N C N C N N C P P P C N C C C P Marijuana Testing Facility30 N N N N N N N C C C C N N N C C Commercial Recreation N C N C N N C P P C C N P C C P Guide Service N C N C N N C P P P P N P P C P Hotels/Motels N C N C N N C P P P C N C P C P Lodge N C N C N N C P P P C N P P C P Professional Offices N C C29 C N N P P P P P N C P P P Restaurants N C N C N N C P P P C N C C C P Marijuana Cultivation Facility, Indoor Standard30 N C C C C C C N N C C N N N C N LAND USE TABLE KEY: P = Principal Permitted Use C = Conditional Use S = Secondary Use N = Not Permitted NOTE: Reference footnotes on following pages for additional restrictions ZONING DISTRICTS LAND USES C RR RR1 RS RS1 RS2 RU CC CG IL IH ED R TSH LC CMU Marijuana Cultivation Facility, Indoor Limited30 N C C C C C C N N C C N N N C N Retail Business N26 C N C N N C P P P P S24 S24 C C P Retail Marijuana Store30 N N N N N N N N N C C N N N C N Theaters N C N C N N C P P C C N P C C P Wholesale Business N C N C N N C C P P P N S24 C C N Marijuana Cultivation Broker Facility, Indoor30 N N N N N N N N N C C N N N C N INDUSTRIAL Airports P20 C N C N N C C C C C N C N N C Automotive Repair N C N C N N C P P P P N N N N P Gas Manufacturer/Storage N N N C N N N N N C9 C9 N N N N N 25 New Text Underlined; [DELETED TEXT BRACKETED] Manufacturing/Fabricating/Assembly N C N C N N C C P P P N C C N C Marijuana Product Manufacturing Facility30 N N N N N N N N N C C N N N N N Mini-Storage Facility N C N C N N C C P P P N N N C C Storage Yard N C N C N N C C P P P N N N N C Warehouses N C N C N N C N P P P N C N N N PUBLIC/INSTITUTIONAL Assisted Living C C C C C C C C C C C C C C C C Churches* C P10 P10 P10 P10 P10 P10 P10 P10 C C P P10 P P P Clinics C C N C C C C P P P C C C C P P Colleges* C C C29 C C C C P P C C P C C C P Elementary Schools* C C C29 C C C C P P C C P C C C P Governmental Buildings C C C29 C C C C P P P C P C C P P High Schools* C C C29 C C C C P P C C P C C C P Hospitals* C C N C C C C P P P C C C C C P Libraries* C C C29 C C C C P P P C P C P C P Museums C C C29 C C C C P P P C P C P C P Parks and Recreation P C C29 C C C C P P P P P P P C P MISCELLANEOUS C RR RR1 RS RS1 RS2 RU CC CG IL IH ED R TSH LC CMU Animal Boarding/Commercial Kennel13 C C N C C N N C C C C N C N C C Assemblies15 (Large: Circuses, Fairs, Etc.) C C N C C C C P15 P15 P15 P15 P15 C P N P15 Bed and Breakfasts C C C C C C C C C C C N P C C P Cabin Rentals C C N C N N N P P P C N P P C P Cemeteries C C N C N N N N C C C N C C N N Communications Towers & Antenna(s), Radio/TV Transmitters/ Cell Sites** 28 P C N C C C C P P P P P C C C C Crematories/Funeral Homes N C N C N N C C C C C N C C C C Day Care Centers12 C C C29 C C C C P P P C C C C P P Dormitories/Boarding Houses C C N C C C P P21 S C P P23 C C C P Essential Services P P P P P P P P P P P P P P P P Farming/General Agriculture*** P P N N N N N N N N P N P N N N 26 New Text Underlined; [DELETED TEXT BRACKETED] LAND USE TABLE KEY: P = Principal Permitted Use C = Conditional Use S = Secondary Use N = Not Permitted NOTE: Reference footnotes on following pages for additional restrictions ZONING DISTRICTS LAND USES C RR RR1 RS RS1 RS2 RU CC CG IL IH ED R TSH LC CMU Fraternal Organizations/Private Clubs/Social Halls and Union Halls N C N C C C C P P P C N C P C P Greenhouses/Tree Nurseries13 C C N C C C C P P P C N C C C P Gunsmithing, Taxidermy N C N C C C C P P P P N C P P P Nursing, Convalescent or Rest Homes N C N C C C C P P C C C C C C P Parking, Public Lots12 C C N C C C C C C C C C C C C C Personal Services25 C C N C C C C P P P P C C P P/C27 P Recreational Vehicle Parks C C N C N N C C C C C N C C N C Subsurface Extraction of Natural Resources16 C C C C C C C C C C C N C N N N Surface Extraction of Natural Resources17 C C N C N N C N C C C N C N N N * See 42 USCA Sec. 2000cc (Religious Land Use and Institutionalized Persons Act of 2000) ** See 42 Telecommunications Act of 1996, Sec. 704(a) *** See, however, the limitations imposed under KMC 3.10.070 27 New Text Underlined; [DELETED TEXT BRACKETED] Footnotes: 1. Allowed as a secondary use except on the ground floor of the part of the building fronting on collector streets and major highways. Commercial or industrial which falls under the landscaping/site plans requirements of KMC 14.25 shall include any secondary uses in the landscaping and site plans. 2. One (1) single-family residence per parcel, which is part of the main building. 3. Allowed as a conditional use, subject to satisfying the following conditions: a. The usable area per dwelling unit shall be the same as that required for dwelling units in the RS zone; b. The site square footage in area must be approved by the Commission; c. Yards around the site, off-street parking, and other development requirements shall be the same as for principal uses in the RR zone; d. Water and sewer facilities shall meet the requirements of all applicable health regulations; e. The proposed dwelling group will constitute a residential area of sustained desirability and stability, will be in harmony with the character of the surrounding neighborhood, and will not adversely affect surrounding property values; f. The buildings shall be used only for residential purposes and customary accessory uses, such as garages, storage spaces, and recreational and community activities; g. There shall be provided, as part of the proposed development, adequate recreation areas to serve the needs of the anticipated population; h. The development shall not produce a volume of traffic in excess of the capacity for which the access streets are designed; i. The property adjacent to the proposed dwelling group will not be adversely affected. 4. See “Townhouses” section. 5. See “Mobile Homes” section. 6. Allowed as a conditional use, subject to “Mobile Homes” section and provided that any mobile home park meets the minimum Federal Housing Authority requirements. 7. See “Planned Unit Residential Development” section. 8. Allowed as a conditional use, provided that the proposed location and the characteristics of the site will not destroy the residential character of the neighborhood. 9. Allowed as a conditional use, provided that all applicable safety and fire regulations are met. 10. Provided that no part of any building is located nearer than thirty (30) feet to any adjoining street or property line. 11. Allowed as a conditional use, provided that no part of any building is located nearer than thirty (30) feet to any adjoining street or property line and provided further that the proposed location and characteristics of the use will not adversely affect the commercial development of the zone. 12. Allowed as a conditional use, provided that the following conditions are met: a. The proposed location of the use and the size and characteristic of the site will maximize its benefit to the public; b. Exits and entrances and off-street parking for the use are located to prevent traffic hazards on public streets. 28 New Text Underlined; [DELETED TEXT BRACKETED] 13. Allowed as a conditional use, provided that setbacks, buffer strips, and other provisions are adequate to assure that the use will not be a nuisance to surrounding properties. The Commission shall specify the conditions necessary to fulfill this requirement. Animal boarding and commercial kennels require a kennel license (see KMC Chapter 3.15). 14. Allowed as a conditional use, provided that no indication of said use is evident from the exterior of the mortuary. 15. Allowed, provided that the following conditions are met: a. An uncleared buffer strip of at least thirty (30) feet shall be provided between said use and any adjoining property in a residential zone. b. Exits and entrances and off-street parking for the use shall be located to prevent traffic hazards on the public streets. 16. See “Conditional Uses” section. 17. See “Conditional Use Permit for Surface Extraction of Natural Resources” section. 18. Conditional Use allowed only on privately held property. Not allowed on government lands. 19. Reserved. 20. The airport related uses allowed under this entry are aircraft approach zones per KMC 14.20.070(a), except that for properties contained inside the airport perimeter fence or having access to aircraft movement areas, ramps, taxiways or parking aprons, FAA authorized uses are allowed. 21. Developments for use shall be the same as those listed in the “Development Requirements Table” for the RU/TSH zones. 22. Allowed as a conditional use in conjunction with a permitted use in the ED zone. For example, housing for teachers or students for a school in the zone. 23. Allowed as an accessory use in conjunction with a permitted use in the ED zone. For example, a dormitory used to house students for a school or educational facility. 24. Retail businesses allowed as a secondary use in conjunction with the primary use (e.g., a gift shop or coffee shop within another business). 25. Art studios, barbers, beauticians, tattoo parlors, dressmakers, dry cleaners and self-service laundries, fitness centers, photographic studios, tailors, tanning salons and massage therapists. 26. Food services are allowed on a temporary or seasonal basis of not more than four (4) months per year. 27. Limited Commercial Zone Personal Services Permitted(P) Conditional Use(C) Art Studios X Barbers X Beauticians X Dressmakers X Dry Cleaners X Fitness Centers X Massage Therapist X 29 New Text Underlined; [DELETED TEXT BRACKETED] Photographic Studios X Self-Service Laundries X Tailors X Tanning Salons X Tattoo Parlors X Personal services not set forth in the above matrix are conditional uses. 28. Communications tower/antenna(s) allowed as a principal permitted (P) use if the applicable conditions set forth in KMC 14.20.255 are met or a conditional use (C) if the applicable conditions set forth in KMC 14.20.255 and 14.20.150 are met. 29. Use allowed only for those parcels that abut the Kenai Spur Highway. The access to any such parcel must be either from: (a) driveway access on the Kenai Spur Highway; or (b) driveway access from a dedicated right-of-way and that driveway access is not more than two hundred seventy-five (275) feet as measured from the constructed centerline of the Kenai Spur Highway to the center of the driveway access as shown on an as-built drawing/survey of the parcel. 30. See Kenai Municipal Code Chapter 12.50 - Marijuana Regulations, Section 14.20.230 – Home Occupations, Section 14.20.320 – Definitions, Section 14.20.330 – Standards for Commercial Marijuana Establishments. Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 7. Effective Date: That pursuant to Kenai Municipal Code Section 1.15.070(f), this ordinance shall take effect 30 days after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2015. ______________________________________ PAT PORTER, MAYOR ATTEST: ___________________________________ Sandra Modigh, City Clerk Introduced: *, 2015 Adopted: *, 2015 Effective: *, 2015 30 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 1 3 AAC is amended by adding a new chapter to read: Chapter 306. Regulation of Marijuana Industry. Article beginning page 1. Licensing, Fees (3 AAC 306.005 - 3AAC 306.100) 1 2. Local Options (3 AAC 306.200 - 3AAC 306.260) 28 3. Retail Marijuana Stores (3 AAC 306.300 - 3AAC 306.360) 34 4. Marijuana Cultivation Facilities (3 AAC 306.400 - 3AAC 306.480) 44 5. Marijuana Product Manufacturing Facilities (3 AAC 306.500 - 3AAC 306.570) 63 6. Marijuana Testing Facilities (3 AAC 306.600 - 3AAC 306.675) 80 7. Operating Requirements for All Marijuana Establishments (3 AAC 306.700 - 3AAC 306.755) 97 8. Enforcement, Civil Penalties (3 AAC 306.800 - 3AAC 306.850) 112 9. General Provisions (3 AAC 306.900 - 3AAC 306.990) 122 Article 1. Licensing, Fees. Section 05. License required 10. License restrictions 15. License conditions 20. Application for new license 25. Application procedure 30. Petition for license in area with no local government 35. Application for renewal of license 31 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 2 40. Ownership change to be reported 45. Application for transfer of a license to another person 50. Relocation of licensed premises not allowed 55. Criminal justice information and records 60. Protest by local government 65. Public participation 70. Hearing on public protest 75. Procedure for action on license application 80. Denial of license application 85. Informal conference 90. Formal hearing 95. Appeals 100. Fees, refund 3 AAC 306.005. License required. A marijuana establishment may not operate in the state unless it has obtained the applicable marijuana establishment license from the board. The board will issue the following marijuana establishment licenses under this chapter: (1) a retail marijuana store license, granting authority for activities allowed under AS 17.38.070(a), and subject to the provisions of 3 AAC 306.300 - 3 AAC 306.360 and 3 AAC 306.700 - 3AAC 306.755; (2) a marijuana cultivation facility license, as described in 3 AAC 306.405 – 3 AAC 306.415, granting authority for activities allowed under AS 17.38.070(b), and subject to the provisions of 3 AAC 306.400 - 3 AAC 306.480 and 3 AAC 306.700 - 3AAC 306.755; (3) a marijuana product manufacturing facility license, as described in 3 AAC 32 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 3 306.505 and 3 AAC 306.515, granting authority for activities allowed under AS 17.38.070(c), and subject to the provisions of 3 AAC 306.500 - 3 AAC 306.570 and 3 AAC 306.700 – 3 AAC 306.755; and (4) a marijuana testing facility license, granting authority for activities allowed under AS 17.38.070(d), and subject to the provisions of 3 AAC 306.600 - 3 AAC 306.675 and 3 AAC 306.700 - 3AAC 306.755. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.010. License restrictions. (a) The board will not issue a marijuana establishment license if the licensed premises will be located within 500 feet of a school, a recreation or youth center, a building in which religious services are regularly conducted, or a correctional facility. The distance specified in this subsection must be measured by the shortest pedestrian route from the public entrance of the building in which the licensed premises would be located to the outer boundaries of the school, recreation or youth center, or the main public entrance of the building in which religious services are regularly conducted, or the correctional facility. This section does not prohibit the renewal of an existing marijuana establishment license or the transfer of an existing marijuana establishment license to another person if the licensed premises were in use before the school, recreation or youth center, the building in which religious services are regularly conducted, or the correctional facility began use of a site within 500 feet. If an existing marijuana establishment license for premises located within 500 feet of a school, a recreation or youth center, a building in which religious services are regularly conducted, or a correctional facility is revoked, or expires, the board will not issue another 33 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 4 marijuana establishment license for the same premises unless the school, the recreation or youth center, the building in which religious services are regularly conducted, or the correctional facility no longer occupies the site within 500 feet. (b) The board will not issue a marijuana establishment license when a local government protests an application under 3 AAC 306.060 on the grounds that that the applicant’s proposed licensed premises are located in a place within the local government where a local zoning ordinance prohibits the marijuana establishment, unless the local government has approved a variance from the local ordinance. (c) The board will not issue a marijuana establishment license to a person that (1) is prohibited under AS 17.38.100(i) from receiving a marijuana establishment license because of a conviction of a felony; if the applicant is a partnership, limited liability company, or corporation, the board will not issue a license if any person named in 3 AAC 306.020(b)(2) is prohibited under AS 17.38.100(i) from obtaining a license; in this paragraph, “conviction of a felony” includes a suspended imposition of sentence; (2) has been found guilty of (A) selling alcohol without a license in violation of AS 04.11.010; or (B) selling alcohol to a minor in violation of AS 04.16.051 or AS 04.16.052; or (3) operated a marijuana delivery service, a marijuana club, or a marijuana establishment illegally without a license issued under this chapter, or otherwise violated AS 17.38, during the two years before the date the person files the application, unless the board finds that person has diligently worked with the board to comply with all current laws and regulations relating to marijuana. (Eff. ___/___ /____, Register ____) 34 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 5 Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.015. License conditions. (a) The board will issue each marijuana establishment license to a specific individual, to a partnership, including a limited partnership, to a limited liability company, to a corporation, or to a local government. A person other than a licensee may not have a direct or indirect financial interest in the business for which a marijuana establishment license is issued. (b) The board will not issue a marijuana establishment license to (1) an individual or a sole proprietorship unless the individual or proprietor is a resident of the state; (2) a partnership unless each partner is a resident of the state; (3) a limited liability company unless the limited liability company is qualified to do business in the state, and each member of the limited liability company is a resident of the state; or (4) a corporation unless the corporation is incorporated or qualified to do business in the state, and each shareholder who owns the corporation’s shares is a resident of the state. (c) The board will issue each license for a specific location identified on the license as the licensed premises. A marijuana establishment must have a right to possession of its licensed premises at all times, and may not lease its licensed premises to another person for any reason. If a marijuana establishment wishes to reduce or expand the area of the licensed premises used for a marijuana establishment, the marijuana establishment must submit a new line drawing showing 35 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 6 the proposed changes to the premises, and must obtain the board’s written approval. A marijuana establishment may not relocate its licensed premises to a different place. A marijuana establishment that proposes to operate in any new premises must apply for a new marijuana establishment license. (d) The board will impose other conditions or restrictions on a license issued under this chapter when it finds that it is in the interests of the public to do so. (e) In this section, (1) "direct or indirect financial interest" means (A) a legal or equitable interest in the operation of a business licensed under this chapter; (B) does not include a person’s right to receive (i) rental charges on a graduated or percentage lease-rent agreement for real estate leased to a licensee; or (ii) a consulting fee from a licensee for services that are allowed under this chapter; (2) “resident of the state” means a person who meets the residency requirement under AS 43.23 for a permanent fund dividend in the calendar year in which that person applies for a marijuana establishment license under this chapter. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.020. Application for new license. (a) An applicant for a new marijuana establishment license must file an application as provided in 3 AAC 306.025, on a form the 36 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 7 board prescribes, with the information and documents described in this section, along with the application fee and the annual license fee set out in 3 AAC 306.100, and the fingerprint cards and fees required by 3 AAC 306.055(a). The application must be initiated electronically; the completed application and fees may be filed electronically, or mailed or delivered to the director at the office of the board. (b) An application for a new marijuana establishment license must include (1) the name of the applicant and any business name the applicant will use for the proposed marijuana establishment, along with the applicant’s state business license number issued under AS 43.70 and the federal employer identification number (EIN) for the proposed marijuana establishment; (2) the name, mailing address, telephone number, and social security number of each proposed licensee and each affiliate of each proposed licensee; unless the context indicates otherwise, “licensee” means each individual named in an application that complies with this section; an individual to be identified as a “licensee” under this section includes (A) if the applicant is an individual or a sole proprietor, the individual or sole proprietor; (B) if the applicant is a partnership, including a limited partnership, each partner holding any interest in the partnership; (C) if the applicant is a limited liability company, the limited liability company’s registered agent, and each member holding any ownership interest; and (D) if the applicant is a corporation, each owner of any of the corporation’s stock (E) if the applicant is a local government, an authorized official of the 37 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 8 local government. (3) for each applicant that is not an individual, the applicable document and information as follows: (A) for a partnership, including a limited partnership, the partnership agreement, the name of each general or managing partner, and a list of all partners with percentage of ownership of each partner; (B) for a limited liability company, the limited liability company agreement, and a list of all members with the percentage of ownership of each member; (C) for a corporation, the certificate of incorporation, the name of each corporate officer, and a list of all shareholders with percentage of ownership of each shareholder; (D) for a local government, a resolution of the governing body approving the application and designating an official responsible for the proposed marijuana establishment. (4) for each person listed in compliance with paragraph (2) of this subsection, a statement of financial interest on a form the board prescribes; (5) for each applicant that is not an individual, the name of the individual licensee or designated government official listed in the application under paragraph (2) of this subsection who is responsible for (A) management of the marijuana establishment; and (B) compliance with all applicable laws; (6) an electronic mail address at which the applicant agrees to receive any correspondence from the board before and after it receives a license; an applicant and a licensee must ensure that any electronic mail address provided to the board is current so that the board 38 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 9 can contact the applicant or licensee at any time; (7) the type of license the applicant is requesting; (8) the address of the premises where the applicant intends to operate a marijuana establishment; and a detailed diagram of the proposed licensed premises; the diagram must show all entrances and boundaries of the premises, restricted access areas, and storage areas; (9) the title, lease, or other documentation showing the applicant’s right to possession of the proposed licensed premises; (10) an affidavit showing where and when the applicant posted notice of the application; and proof of advertising as required in 3 AAC 306.025(b); and (11) additional information required by the board as follows: (A) for a retail marijuana store, the information required under 3 AAC 306.315; (B) for a marijuana cultivation facility, the information required under 3 AAC 306.420; (C) for a marijuana product manufacturing facility, the information required under 3 AAC 306.520; and (D) for a marijuana testing facility, the information required under 3 AAC 306.615. (c) A marijuana establishment license application must include the applicant’s operating plan, in a format the board prescribes, describing, to the board’s satisfaction, the proposed marijuana establishment’s plans for (1) security; (2) inventory tracking of all marijuana and marijuana product on the premises; 39 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 10 (3) employee qualification and training; (4) waste disposal; (5) transportation and delivery of marijuana and marijuana products; and (6) signage and advertising. (d) An application for a marijuana establishment license must be signed by (1) the applicant, if the applicant is an individual; (2) an authorized general partner if the applicant is a partnership, including a limited partnership; (3) the registered agent or a member who owns at least 10 percent of the limited liability company if the applicant is a limited liability company; (4) the authorized officers of the corporation if the applicant is a corporation; or (5) a designated official if the applicant is a local government. (e) Each person signing an application for a marijuana establishment license must declare under penalty of unsworn falsification that (1) the application is true, correct, and complete; (2) the applicant has read and is familiar with AS 17.38 and this chapter; and (3) the applicant will provide all information the board requires in support of the application. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 Editor’s note: Forms and instructions for filing an application for a marijuana establishment license can be obtained online at the Marijuana Control Board’s website or at the board’s office. The board’s Internet address is www commerce.alaska.gov/web/abc/ and its office is at 550 West 7th Ave. Suite 1600, Anchorage, AK 99501. The board’s telephone 40 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 11 number is (907)269-0350. 3 AAC 306.025. Application procedure. (a) An applicant shall initiate a new marijuana establishment license application on a form the board prescribes, using the board’s electronic system. (b) As soon as practical after initiating a new marijuana license application, the applicant shall give notice of the application to the public by (1) posting a copy of the application, on the form the board prescribes, for 10 days at (A) the location of the proposed licensed premises; and (B) one other conspicuous location in the area of the proposed premises; and (2) publishing an announcement once a week for three consecutive weeks in a newspaper of general circulation in the area; in an area where no newspaper circulates, by announcements on a radio station serving the local area where the proposed licensee seeks to operate twice a week for three successive weeks during triple A advertising time; the newspaper or radio notice must state (A) the name of the applicant; (B) the name and location of the proposed premises; (C) the type of license applied for along with a citation to a provision of this chapter authorizing that type of license; and (D) a statement that any comment or objection may be submitted to the board; and (3) submitting a copy of the application on the form the board prescribes to 41 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 12 (A) the local government; and (B) any community council in the area of the proposed licensed premises. (c) After the applicant completes the notice requirements in (b) of this section and submits each remaining application requirement listed in 3 AAC 306.020, the applicant shall pay the application and licensing fees set out in 3 AAC 306.100. The applicant must then use the board’s electronic system to inform the board that the applicant has submitted a complete application. (d) When the director receives an application for a marijuana establishment license, the director shall determine if the application is complete. Any application for a marijuana establishment license that the director receives without the application fee is incomplete. If the director determines the application is complete, the director shall immediately give written notice to (1) the applicant; (2) the local government in the area in which the applicant’s proposed licensed premises are located; (3) the community council if the proposed licensed premises are located within the boundary of a community council established by municipal charter or ordinance; and (4) any nonprofit community organization that has requested notification in writing. (e) If an application for a marijuana establishment license is incomplete, the director shall notify the applicant, and will either (1) return an incomplete application in its entirety; or (2) request the applicant to provide additional, identified items needed to 42 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 13 complete the application. (f) When the director informs an applicant that its application is incomplete as provided in (e) of this section, the applicant must complete the application not later than 90 days after the date of the director’s notice. If an applicant fails to complete its application during the 90 day period after the director’s notice, the applicant shall file a new application and pay a new application fee to obtain a marijuana establishment license. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.030. Petition for license in area with no local government. (a) The board will not approve a new license in an area outside, but within 50 miles of, the boundary of a local government unless the board receives a petition to issue the license signed by a majority of the permanent residents residing within one mile of the proposed premises. (b) The board will not approve a new license in an area that is 50 miles or more from the boundary of a local government unless the board receives a petition to issue the license containing the signatures of two-thirds of the permanent residents residing within a radius of five miles of the United States post office station nearest to the proposed licensed premises. If there is no United States post office station within a radius of five miles of the proposed licensed premises, the petition must be signed by two-thirds of the permanent residents residing within a five mile radius of the proposed licensed premises. (c) A petition authorized by this section must be on a form the board prescribes. The applicant must obtain the required signatures within the 90 day period immediately before submitting the petition to the board. A signature may not be added to or removed from the 43 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 14 petition after the board has approved the application. (d) In this section, "permanent resident" means a person 21 years of age or older who has established a permanent place of abode. A person may be a permanent resident of only one place. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.035. Application for renewal of license. (a) On or before May 1 of each year, the director shall send notice that a marijuana establishment must file a renewal application not later than June 30 of the current year. The director shall send the notice to the marijuana establishment’s electronic mailing address on file with the board. The notice will include a hyperlink for the marijuana establishment to access the electronic renewal application by means of the internet, along with instructions on using and submitting the form. The marijuana establishment must submit the completed renewal application electronically, along with the license renewal fee, to the director no later than June 30 of each year; if June 30 falls on a Saturday or Sunday, the deadline is extended to 4:30 p.m. on the first business day following June 30. A marijuana establishment must maintain a current electronic mailing address on file with the director. A marijuana establishment is not excused from filing a renewal application as required in this section even if the marijuana establishment fails to receive a renewal notice from the director. (b) A marijuana establishment’s renewal application must (1) identify the license sought to be renewed by license number, license type, establishment name, and premises address; 44 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 15 (2) provide the information required for a new license application under 3 AAC 306.020(b)(1)-(9); (3) report any change from the marijuana establishment’s new license application or last renewal application, and pay the fee as provided in 3 AAC 306.100 for board review of any change in (A) the name of the marijuana establishment business; (B) the licensed premises from the last diagram submitted; and (C) the marijuana establishment’s operating plan; (D) any new product a licensed marijuana product manufacturing facility wishes to produce; (4) report, for each licensee listed in 3 AAC 306.020(b)(2), (A) any criminal charge on which that licensee has been convicted in the previous two calendar years; and (B) any civil violation of AS 04, AS 17.38, or this chapter in the previous two calendar years; and (5) declare under penalty of unsworn falsification that (A the application is true, correct and complete; (B) the applicant has read and is familiar with AS 17.38 and this chapter; and (C) the applicant will provide all information the board requires in support of the renewal application. (c) If the director determines that the renewal application is complete, the director shall immediately give written notice of a renewal application to 45 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 16 (1) the applicant; (2) the local government in the area in which the applicant’s proposed licensed premises are located; (3) the community council if the proposed licensed premises are located within the boundary of a community council established by municipal charter or ordinance; and (4) any nonprofit community organization that has requested notification in writing. (d) The director may require an applicant for renewal of a license under this chapter to submit fingerprints and pay fees as required by 3 AAC 306.055(a). (e) A licensee that does not deliver a renewal application to the director on or before June 30 of each year is delinquent, and must pay a non-refundable $1,000 late renewal application fee with the renewal application. (f) On or before August 15 of each year, the director shall deliver a notice of expiration to each marijuana establishment that has not filed a complete application for renewal of a license, along with any applicable affidavit and the required fee, unless the marijuana establishment has notified the director that it does not intend to seek a renewal of its license. The director shall deliver the notice of expiration to the electronic mail address the marijuana establishment has provided to the director. A marijuana establishment is not excused from filing a license renewal application not later than August 31 of each year even it the marijuana establishment does not receive the notice of expiration described in this section. (g) If a marijuana establishment fails to deliver a complete license renewal application, or fails to pay the required renewal fee and the late renewal application fee on or before August 31 of each year, that marijuana establishment license expires at 12:00 midnight on August 31 of 46 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 17 that year. A holder of an expired license shall immediately return the license to the board. Any holder of an expired license that seeks authority to operate must file a complete new application under 3 AAC 306.020, and 3 AAC 306.025, along with the required fees. The board will not issue a new license for the same premises to the holder of an expired license unless the expired license holder’s new application contains proof satisfactory to the board of good cause for the failure to file a license renewal application. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.040. Ownership change to be reported. (a) A licensed marijuana establishment shall, not later than 10 days after an ownership change as described in this section, report the change on a form prescribed by the board. In this section, an ownership change means (1) if the licensee is a partnership, including a limited partnership, any change in the identity of the partners, or in the ownership percentages held by any partners; (2) if the licensee is a limited liability company, any change in the identity of the members, or in the ownership percentage held by any member; or (3) if the licensee is a corporation, any sale of corporate stock to a person not currently an owner, or any change of the percentage ownership of an existing shareholder. (b) If any change required to be reported under this section will result in a change in controlling interest of the marijuana establishment license, the marijuana establishment must file an application for transfer of license to another person under 3 AAC 306.045. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 47 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 18 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.045. Application for transfer of a license to another person. (a) A person may not receive or transfer a marijuana establishment license or a controlling interest in a marijuana establishment license issued to a partnership, including a limited partnership, a limited liability company, a corporation or a local government, without applying for and receiving the written consent of the board. Transfer of a license includes a sale of all or part of the interest of an individual owner. (b) An application for transfer of a marijuana establishment license, or of a controlling interest in a marijuana establishment license issued to a partnership, a limited liability company, a corporation or a local government, must be filed in writing on a form the board prescribes, in compliance with the application procedure set out in 3 AAC 306.025. The application must name the current holder of the marijuana establishment license and the proposed transferee, including all persons listed in 3 AAC 306.020 if the transferee is a partnership, limited liability company, a corporation, or a local government. The application must contain the following information: (1) the same information about each transferee as is required of an applicant for a new license under 3 AAC 306.020; (2) a statement, under oath, executed by the current holder of the marijuana establishment license, listing all debts of the business, all taxes the business owes, current contact information for each creditor, and an affirmation that the current holder of the marijuana establishment license has submitted a copy of the transfer application to all creditors; and (3) any other information required by the board for the type of marijuana 48 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 19 establishment license sought to be transferred. (c) When the board receives a complete application for transfer of a license to another person, the director shall immediately send written notice of the proposed transfer to (1) each listed creditor of the current holder of the marijuana establishment license, along with the amount shown as owed to that creditor; (2) the local government in the area in which the licensed premises are located; (3) the community council if the licensed premises are located within the boundary of a community council established by municipal charter or ordinance; and (4) any nonprofit community organization that has requested notification in writing. (d) A current holder of a marijuana establishment license must submit a license renewal application before or at the same time as an application for a transfer of a marijuana establishment license that is submitted after April 30 and before July 1. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.050. Relocation of licensed premises not allowed. A marijuana establishment license may not be relocated to any other premises. A holder of a marijuana establishment license that wishes to operate a marijuana establishment at a different location must submit a new application for any new premises, and must surrender an existing license for any premises where the marijuana establishment does not intend to continue its operation. (Eff. ___/___ /____, Register ____) 49 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 20 Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.055. Criminal justice information and records. (a) When filing an application for a new marijuana establishment license or transfer of a license, the applicant, including each individual listed in 3 AAC 306.020(b)(2), must submit the person’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. (b) The director shall submit the fingerprints 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. The board will use the information obtained under this section to determine if an applicant is qualified for a marijuana establishment license. (c) In this section, "criminal justice information" has the meaning given in AS 12.62.900. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.060. Protest by local government. (a) Not later than 60 days after the director sends notice of an application for a new marijuana establishment license, renewal of a marijuana establishment license, or transfer of a marijuana establishment license to another person, a local government may protest the application by sending the director and the applicant a written protest and the reasons for the protest. The director may not accept a protest received after the 60-day period. If a local government protests an application for a new or renewal 50 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 21 license or for a transfer of a license to another person, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. (b) A local government may recommend that the board approve an application for a new license, renewal of a license, or transfer of a license to another person subject to a condition. The board will impose a condition a local government recommends unless the board finds the recommended condition is arbitrary, capricious, and unreasonable. If the board imposes a condition a local government recommends, the local government shall assume responsibility for monitoring compliance with the condition unless the board provides otherwise. (c) If a local government determines that a marijuana establishment has violated a provision of AS 17.38, this chapter, or a condition the board has imposed on the licensee, the local government may notify the board. Unless the director finds that the local government's notice is arbitrary, capricious, and unreasonable, the director will prepare the determination as an accusation against the licensee under AS 44.62.360 and conduct proceedings to resolve the matter as provided under 3 AAC 306.820. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.065. Public participation. A person may object to an application for a new license, renewal of a license, or transfer of a license to another person by submitting a written statement of reasons for the objection to the board and the applicant not later than 30 days after notice of the application, but no later than the deadline for objections stated in a posted or published notice of the application. The objection must be sent to the applicant at the mailing address or electronic mail address provided in the notice of application. If the board determines 51 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 22 to conduct a public hearing under this section, an interested person may give oral testimony at the public hearing. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.070. Hearing on public protest. The board may, on its own initiative or in response to an objection or protest, hold a hearing to ascertain the reaction of the public or a local government to an application. The director will send notice of a hearing not later than 20 days before the hearing date to each person that has filed an objection, to each local government that has filed a protest, to each community council in the area of the proposed premises, and to any nonprofit community organization that has requested notice. Any interested person may be heard at a hearing under this subsection. Unless the applicant and the board waive this requirement, the board will hold the hearing in the area where the proposed licensed premises are located, or will arrange for telephonic appearances. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.075. Procedure for action on license application. (a) The board will decide whether to grant or deny an application not later than 90 days after receiving the complete application. However, the board will not grant or deny the application before (1) the time allowed for a protest under 3 AAC 306.060, unless the local government waives its right to protest; or (2) the time allowed for an objection under 3 AAC 306.065 has elapsed. 52 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 23 (b) Not later than 7 days before the date set for board action on an application for a new license, renewal of a license, or transfer of a license to another person, the director will post a meeting agenda listing the matters scheduled for action at that meeting. The board may review an application for a new license, renewal of a license, or transfer of a license to another person, without additional notice to the applicant. (c) The board will consider any written objection, protest, suggested condition, or petition, and any testimony received at a hearing on public protest held under 3 AAC 306.070 when it considers the application. The director will retain the written objection, protest, or suggested condition or petition, and the hearing record as part of the permanent record of the board’s review of an application. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.080. Denial of license application. (a) After review of the application, including the applicant’s proposed operating plan and all relevant information, the board will deny an application for a new license if the board finds that (1) the application is not complete as required under the applicable provisions of 3 AAC 306.020 - 3 AAC 306.055, or contains any false statement of material fact; or (2) the license would violate any restriction in 3 AAC 306.010; or (3) the license would violate any restriction applicable to the particular license type authorized under this chapter; (4) the license is prohibited under this chapter as a result of an ordinance or election conducted under AS 17.38.110, 3 AAC 306.200, or 3 AAC 306.230; 53 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 24 (5) the board finds that the operating plan does not adequately demonstrate that the applicant will comply with applicable provisions of this chapter; or (6) the license would not be in the interest of the public. (b) After review of the application and all relevant information, the board will deny an application for renewal of a marijuana establishment license if the board finds (1) any cause listed in (a) of this section; (2) that the license has been revoked for any cause; (3) that the license has been operated in violation of a condition or restriction the board previously imposed; or (4) that the applicant is delinquent in the payment of taxes due in whole or in part from operation of the licensed business. (c) After review of the application and all relevant information, the board will deny an application for transfer of license to another person if the board finds (1) any cause listed in (a) of this section; (2) that the transferor has not paid all debts or taxes arising from the operation of the business licensed under this chapter unless the transferor gives security for the payment of the debts or taxes satisfactory to the creditor or taxing authority; (3) that transfer of the license to another person would result in violation of the provisions of this chapter relating to identity of licensees and financing of licensees; or (4) that the prospective transferee does not have the qualifications of an original applicant required under this chapter. (d) If the board denies an application for a new license, renewal of a license, or transfer of a license to another person, the board will, not later than 15 days after the board meeting at 54 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 25 which the application was denied, furnish a written statement of issues to the applicant, explaining the reason for the denial in clear and concise language, and identifying any statute or regulation on which the denial is based. The notice of denial will inform the applicant of the right to an informal conference under 3 AAC 306.085, and to a formal hearing under 3 AAC 306.090. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.085. Informal conference. (a) An applicant for a new license, renewal of a license, or transfer of a license to another person that is aggrieved by an action of the board denying the application may, no later than 15 days after the date of the written notice of denial, request an informal conference with the director or the board. An informal conference requested under this section must be held at a time and place convenient to the applicant and the board, but not later than the next scheduled meeting of the board. An informal conference may be conducted telephonically. (b) If the informal conference does not resolve the matter to the applicant’s satisfaction, the applicant may, within 15 days after the last day of the informal conference, request a formal hearing under 3 AAC 306.090 by filing a notice of defense in compliance with AS 44.62.380(b). (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.090. Formal hearing. An applicant for a new license, renewal of a license, 55 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 26 or transfer of a license that is aggrieved by an action of the board denying the application may request a formal hearing by filing a notice of defense in compliance with AS 44.62.380 within 15 days after the date of the written notice of the denial, or as provided in 3 AAC 306.085(b) if the applicant requested and participated in an informal conference. Failure to file a notice of defense as provided in this section constitutes a waiver of the right to a formal hearing. (b) When an aggrieved person requests a hearing under the section, the Office of Administrative Hearings will conduct the hearing in compliance with due process, the Alaska Administrative Procedure Act, AS 44.62.330 – AS 44.62.630, and the applicable regulations adopted by the Office of Administrative Hearings at 2 AAC 64.100 - 2 AAC 64.990. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.095. Appeals. (a) An aggrieved applicant or marijuana establishment license holder may appeal to the board regarding any action of the director, or an employee or agent of the board regarding an application for a new license, a license renewal, or a transfer of license to another person. (b) An applicant or marijuana establishment license holder aggrieved by a final decision of the board regarding an application for a new license, a license renewal, or a transfer of license to another person may appeal to the superior court under AS 44.62.560. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 56 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 27 AS 17.38.084 3 AAC 306.100. Fees, refund. (a) The non-refundable application fee for a new marijuana establishment license or an application to transfer a license to another person is $1000. (b) The non-refundable application fee for a license renewal application is $600; if a renewal application is late as provided under 3 AAC 306.035(e), an additional late renewal application fee is $1000. (c) The nonrefundable fee to request board approval of a change in a licensed marijuana establishment’s business name, licensed premises diagram, operating plan, or proposed new marijuana product is $250; a change fee does not apply to an application for transfer of a license to another person. (d) The annual license fee, to be paid with each application for a new marijuana establishment facility license and each license renewal application is (1) for a marijuana retailer license, $5000; (2) for a limited marijuana cultivation facility license, $1000; (3) for a marijuana cultivation facility license, $5000; (4) for a marijuana cultivator’s broker license, $5000; (5) for a marijuana extract only manufacturing facility license, $1000; (6) for a marijuana product manufacturing facility license, $5000; (7) for a marijuana testing facility license, $1000. (e) The fee for a marijuana handler permit card is $50. (f) If the board denies an application for a license or for renewal of a license, the board will refund the annual license fee. The board will not refund a license fee after the license has been issued. 57 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 28 (g) Processing fees for late renewal after failure to pay taxes are as follows: (1) if a licensee pays its delinquent tax after a local government protests renewal of the license, but before the board denies license renewal, $200; (2) if a licensee pays its delinquent tax after appealing the board’s denial of a license renewal, but before a hearing officer is appointed to hear the applicant’s appeal, $500; (3) if a licensee pays its delinquent tax after appealing the board’s denial of a license renewal, but before the administrative hearing begins, $5000; and (4) if a licensee pays its delinquent tax after an administrative hearing that results in a hearing officer recommendation to deny the license renewal, $10,000. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 Article 2. Local Options. 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. 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 58 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 29 vote to approve the option, or if a local government’s assembly or city council passes an ordinance to the same effect, the local government shall adopt a local option to prohibit (1) the sale of marijuana and any marijuana product; (2) the operation of any marijuana establishment, including one or more of the following license types: (A) a retail marijuana store; (B) a marijuana cultivation facility; (C) a marijuana product manufacturing facility; or (D) a marijuana testing facility; (3) the sale or importation for sale of marijuana and any marijuana product. (b) A ballot question to adopt a local option under this section must at least contain language substantially similar to: "Shall (name of local government) adopt a local option to prohibit (local option under (a) of this section)? (yes or no)." (c) The ballot for an election on the options set out in (a)(2) of this section must include a brief explanation of the activity that each license type on the ballot may carry out. (d) If a local government dissolves under AS 29.06.450, any marijuana establishment license issued to that local government expires when the local government dissolves. (e) A local government may not prohibit the personal use and possession of marijuana and marijuana products as authorized under AS 17.38.020. (f) Nothing in 3 AAC 306.200 – 3 AAC 306.260 precludes a local government from applying for a marijuana establishment license under other provisions of this chapter. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.020 AS 17.38.100 AS 17.38.900 59 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 30 AS 17.38.090 AS 17.38.110 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 local government’s assembly or city council passes an ordinance to the same effect, the local government 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 local government) 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 17.38.020 AS 17.38.100 AS 17.38.900 AS 17.38.090 AS 17.38.110 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 a local government’s assembly or city council passes an ordinance to the same effect, that local option is repealed effective the first day of the month after the election is certified. A ballot question to remove a local option under this section must at least contain language substantially similar to: "Shall (name of local government) 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 within the boundaries of a local government 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 60 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 31 to approve the application. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.020 AS 17.38.100 AS 17.38.900 AS 17.38.090 AS 17.38.110 3 AAC 306.230. Procedure for local option election. (a) When a local government receives a petition to adopt, change, or remove a local option, and the petition is signed by a number of registered voters equal to 25 percent or more of the number of votes cast at the last regular municipal election, the local government 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 government shall conduct the election in compliance with its election ordinance. (b) In a general law local government, AS 29.26.110 – AS 29.26.160 apply to a petition under (a) of this section except that (1) 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(b), 3 AAC 306.210, or 3 AAC 306.220(a) rather than language of an ordinance or resolution; (2) a petition must at least contain language substantially similar to the questions set out under 3AAC 306.200(b), 3 AAC 306.210, or 3 AAC 306.220(a) rather than material required under AS 29.26.120(a)(1) and (2). (c) Notwithstanding any other provisions of law, a local government 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, except that if an original prohibition was passed by ordinance, an election as set forth in this article to change the ordinance may be conducted within the 36 month period following the passage of the ordinance. 61 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 32 (d) 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 the local government has passed an ordinance to the same effect. Only one local option question may be presented in an election. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.020 AS 17.38.100 AS 17.38.900 AS 17.38.090 AS 17.38.110 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 any marijuana product under 3 AAC 306.200(a)(3), or if the local government’s assembly or city council passes an ordinance to the same effect, a person, beginning on the first day of the month after the results of the election are certified, may not knowingly bring, send, or transport marijuana or marijuana products for sale into the area within the boundary of the local government. (b) A person who resides within the boundary of a local government that has adopted a local option under 3 AAC 306.200(a) may not purchase marijuana or a marijuana product from another person that has brought, sent, or transported marijuana or a marijuana product into the local government for sale in violation of the local option. (c) Notwithstanding (a) or (b) of this section, a licensed marijuana establishment may transport marijuana or any marijuana product through the boundaries of a local government that has prohibited importation or purchase of marijuana if the marijuana or marijuana product is shipped with an attached transport manifest created in compliance with 3 AAC 306.750 and documenting that the shipment originates and terminates in a place that does not prohibit importation and purchase of marijuana or a marijuana product. 62 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 33 (d) In this section, (1) "bring" means to carry or convey or to attempt or solicit to carry or convey; (2) "send" means to cause to be taken or distributed or to attempt or solicit or 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 17.38.020 AS 17.38.100 AS 17.38.900 AS 17.38.090 AS 17.38.110 3 AAC 306.250. Effect on licenses of restriction on sale. If a majority of the voters vote under 3 AAC 306.200(a) 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 to another person, a license for a marijuana establishment with premises located within the boundary of the local government or in the unincorporated area within ten miles of the boundaries of the local government. A license for a marijuana establishment within the boundary of the local government or in the unincorporated area within ten miles of the boundary of the local government is void 90 days after the results of the election are certified. A license that expires during the 90 days after the certification of a local option election 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 17.38.020 AS 17.38.100 AS 17.38.900 AS 17.38.090 AS 17.38.110 63 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 34 3 AAC 306.260. 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 local government 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; (2) the local government shall post public notice of the prohibition in a central location within the boundary of the local government 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 17.38.020 AS 17.38.100 AS 17.38.900 AS 17.38.090 AS 17.38.110 Article 3. Retail Marijuana Stores. Section 300. Retail marijuana store license required 305. Retail marijuana store privileges 310. Acts prohibited at retail marijuana store 315. Application for retail marijuana store license 320. Marijuana handler permit required 325. Access restricted at marijuana retail store 330. Marijuana inventory tracking system 64 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 35 335. Health and safety requirements 340. Testing required for marijuana and marijuana products 345. Packaging and labeling 350. Identification requirement to prevent sale to person under 21 355. Limit on quantity sold 360. Restriction on advertising of marijuana and marijuana products 3 AAC 306.300. Retail marijuana store license required. (a) Except as permitted under AS 17.38.020, a person may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver marijuana or any marijuana product to a consumer unless the person has obtained a retail marijuana store license from the board in compliance with this chapter, or is an employee or agent acting for a licensed retail marijuana store operating in compliance with this chapter. A person seeking a retail marijuana store license must (1) submit an application for a retail marijuana store license on a form the board prescribes, including the information set out at 3 AAC 306.020 and 3 AAC 306.315; and (2) demonstrate, to the board’s satisfaction, that the applicant will operate in compliance with (A) each applicable provision of 3 AAC 306.300 - 3 AAC 306.360 and 3 AAC 306.700 - 3 AAC 306.755; and (B) each applicable public health, fire, safety, and tax code and ordinance of the state and the local government in which the applicant’s proposed licensed premises are located. (b) A licensee of any retail marijuana store, or an employee or agent of a retail marijuana store, may not have an ownership interest in, or a direct or indirect financial interest in any 65 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 36 licensed marijuana testing facility. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.305. Retail marijuana store privileges. (a) A licensed retail marijuana store is authorized to (1) sell marijuana purchased from a licensed marijuana cultivation facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.470, and 3 AAC 306.475 in an amount not exceeding the limit set out in 3 AAC 306.355, to an individual on the licensed premises for consumption off the licensed premises; (2) sell a marijuana product purchased from a licensed marijuana product manufacturing facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.565, and 3 AAC 306.570, in an amount not exceeding the limit set out in 3 AAC 306.355, to an individual on the licensed premises for consumption off the licensed premises; (3) store marijuana and marijuana products on the licensed premises in a manner consistent with 3 AAC 306.710 – 3 AAC 306.720. (b) This section does not prohibit a licensed retail store from refusing to sell marijuana or marijuana product to any consumer. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.310. Acts prohibited at retail marijuana store. (a) A licensed retail marijuana store may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver, 66 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 37 marijuana or any marijuana product (1) to any person under the age of 21; (2) that is not labeled and packaged as required in 3 AAC 306.345, and in 3 AAC 306.470 and 3 AAC 306.475 or 3 AAC 306.565 and 3 AAC 306.570; (3) in a quantity exceeding the limit set out in 3 AAC 306.355; (4) over the internet; a licensed retail marijuana store may only sell marijuana or marijuana product to a consumer who is physically present on the licensed premises; (5) after the expiration date shown on the label of the marijuana or marijuana product. (b) A licensed retail marijuana store may not (1) conduct any business on, or allow any consumer to access, the retail marijuana store’s licensed premises between the hours of 5:00 a.m. and 8:00 a.m. each day; (2) allow any person to consume marijuana or any marijuana product on the retail marijuana store’s licensed premises; (3) offer or deliver to a consumer, as a marketing promotion or for any other reason: (A) free marijuana or marijuana product, including a sample; or (B) a consumable product other than marijuana, including cigarettes, tobacco products, alcoholic or non alcoholic beverages, or food, free or for compensation. (c) A retail marijuana store may not purchase any marijuana or marijuana product for resale without a certificate showing the tax due under AS 43.61.010 has been paid to the state. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 67 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 38 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.315. Application for retail marijuana store license. A person seeking a new retail marijuana store license must submit an application on a form the board prescribes including the information required under 3 AAC 306.020, and the following (1) a copy of the food safety permit required under 18 AAC 31.020(a); (2) in the operating plan required under 3 AAC 306.020(c), a description of the way marijuana and marijuana products at the retail store will be displayed and sold. (Eff. ___/___ /____, Register____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.320. Marijuana handler permit required. A retail marijuana store shall ensure that (1) each licensee, employee, or agent obtains a marijuana handler permit as provided in 3 AAC 306.700 before being licensed or employed at a retail marijuana store; and (2) each licensee, employee, or agent has that person’s marijuana handler permit card in that person’s immediate possession when on the licensed premises of the retail marijuana store. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.325. Access restricted at retail marijuana store. (a) A person under the 68 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 39 age of 21 may not enter a retail marijuana store. (b) Each entry to a retail marijuana store must be posted with a sign that says “No one under 21 years of age allowed.” The sign must be not less than 12 inches long and 12 inches wide, with letters at least one half inch in height in high contrast to the background of the sign. (c ) An area of a retail marijuana store’s licensed premises where marijuana or any marijuana product is stocked for sale, or dispensed for sale, is a restricted access area. The retail marijuana store must post signs, require identification, and escort visitors in compliance with 3 AAC 306.710. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.330. Marijuana inventory tracking system. (a) A retail marijuana store shall use an inventory tracking system as provided in 3 AAC 306.730 to ensure all marijuana and marijuana product in the store’s possession is identified and tracked from the time the retail marijuana store receives any batch of marijuana or lot of marijuana product through the sale, transfer to another licensed marijuana establishment, or disposal of the batch of marijuana or lot of marijuana product. (b) When any marijuana from a marijuana cultivation facility or marijuana product from a marijuana product manufacturing facility is delivered or transported to the licensed premises of a retail marijuana store, the retail marijuana store shall immediately enter identification information for that batch of marijuana or lot of marijuana product into the retail marijuana store’s inventory tracking system. A retail marijuana store may not accept any marijuana or marijuana product that does not have a valid transport manifest generated from the inventory 69 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 40 tracking system of the marijuana establishment that originated the delivery. (c) A retail marijuana store shall reconcile each transaction from the store’s point of sale system and current inventory to its inventory tracking system at the close of business each day. (d) A retail marijuana store shall account for any variance in the quantity of marijuana or marijuana product the store received and the quantity the store sold, transferred, or disposed of. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.335. Health and safety requirements. A retail marijuana store must comply with each applicable health and safety requirement set out in 3 AAC 306.735. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.340. Testing required for marijuana and marijuana products. (a) A retail marijuana store may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver, marijuana or any marijuana product until all laboratory testing required under 3 AAC 306.645 has been completed, and the label required under 3 AAC 306.475 or 3 AAC 306.570 is affixed. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 70 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 41 3 AAC 306.345. Packaging and labeling. (a) A retail marijuana store shall assure that (1) any marijuana sold on its licensed premises is packaged and labeled in compliance with 3 AAC 306.470 and 3 AAC 306.475, except that 3 AAC 306.470(b)(2) does not apply to the packaging of wholesale flower and bud sold by weight to a consumer; and (2) any marijuana product sold on its licensed premises is packaged and labeled in compliance with 3 AAC 306.565 and 3 AAC 306.570, except that 3 AAC 306.565(b)(2) does not apply to the packaging of wholesale marijuana products that are not edible marijuana products. (b) In addition to labeling requirements provided in (a) of this section, a retail marijuana store shall affix a label to each package of marijuana or marijuana product that (1) identifies the marijuana retail store selling the marijuana product by name or distinctive logo and marijuana establishment license number; and (2) contains the following statements: (A) "Marijuana has intoxicating effects and may be habit forming;" (B) "Marijuana can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under its influence;" (C) "There may be health risks associated with consumption of marijuana;” and (D) "For use only by adults twenty-one and older. Keep out of the reach of children" (E) “Marijuana should not be used by women who are pregnant or breast feeding.” (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 71 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 42 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.350. Identification requirement to prevent sale to person under 21. (a) A licensed retail marijuana store shall refuse to sell marijuana or a marijuana product to any person who does not produce a form of valid identification showing that person is 21 years of age or older. (b) A valid form of identification includes: (1) an unexpired, unaltered passport; (2) an unexpired, unaltered driver's license; instruction permit, or identification card of any state or territory of the United States, the District of Columbia, or a province of Canada; (3) an identification card issued by a federal or state agency authorized to issue a driver's license or identification card. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.355. Limit on quantity sold. (a) A licensed retail marijuana store shall not sell more than the following quantity of marijuana or marijuana product in a single transaction: (1) one ounce of usable marijuana; (2) sixteen ounces of marijuana-infused product in solid form; (3) seven grams of marijuana-infused extract for inhalation, or (4) seventy-two ounces of marijuana-infused product in liquid form. (Eff. ___/___ /____, Register ____) 72 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 43 Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.360. Restriction on advertising of marijuana and marijuana products. (a) A retail marijuana store may have no more than three signs, visible to the general public from the public right of way, that identify the store by its business name. A sign may be placed in the store’s window or attached to the outside of the licensed premises. The size of each sign may not exceed 4800 square inches. (b) An advertisement for marijuana or marijuana product may not contain any statement or illustration that (1) is false or misleading; (2) promotes excessive consumption; (3) represents that the use of marijuana has curative or therapeutic effects; (4) depicts a person under the age of 21 consuming marijuana; or (5) includes an object or character, including a toy, a cartoon character, or any other depiction designed to appeal to a child or other person under the age of 21, that promotes consumption of marijuana. (c) A retail marijuana store may not place an advertisement for marijuana or a marijuana product, except as provided in (a) of this section, (1) within one thousand feet of the perimeter of any child-centered facility, including a school, daycare or other facility providing services to children, a playground or recreation center, a public park, a library, or a game arcade that is open to persons under the age of 21; 73 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 44 (2) on or in a public transit vehicle or public transit shelter; or (3) on or in a publicly owned or operated property; ` (4) within 1000 feet of a substance or treatment facility; or (5) on a college campus. (d) A retail marijuana store may not use giveaway coupons, or distribute branded merchandise as promotional materials, or conduct promotional activities such as games or competitions to encourage sale of marijuana or marijuana products. (e) All advertising for marijuana or any marijuana product must contain the following warnings: (1) "Marijuana has intoxicating effects and may be habit forming;" (2) "Marijuana can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under its influence;" (3) "There may be health risks associated with consumption of marijuana;” and (4) "For use only by adults twenty-one and older. Keep out of the reach of children" (5) “Marijuana should not be used by women who are pregnant or breast feeding.” (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 Article 4. Marijuana Cultivation Facilities. Section 74 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 45 400. Marijuana cultivation facility license required 405. Standard marijuana cultivation facility: privileges and prohibited acts 410. Limited marijuana cultivation facility: privileges and prohibited acts 415. Marijuana cultivation broker facility: privileges and prohibited acts 420. Application for marijuana cultivation facility license 425. Marijuana handler permit required 430. Restricted access area 435. Marijuana inventory tracking system 440. Health and safety requirements 445. Standards for cultivation and preparation 450. Production of marijuana concentrate prohibited 455. Required laboratory testing 460. Samples 465. Random sampling 470. Packaging of marijuana 475. Labeling of marijuana 480. Marijuana tax to be paid 3 AAC 306.400. Marijuana cultivation facility license required. (a) Except as provided under AS 17.38.020, a person may not plant, propagate, cultivate, harvest, trim, dry, cure, or package, label, or sell marijuana grown at a place under that person’s control, directly or through a marijuana cultivation broker facility, to any marijuana establishment unless the person has obtained a marijuana cultivation facility license from the board in compliance with this chapter, or is an employee or agent acting for a licensed marijuana cultivation facility. The 75 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 46 board will issue the following types of marijuana cultivation facility licenses, with the privileges and subject to the prohibitions set out in sections 3 AAC 306.405 - 3 AAC 306.415: (1) a standard marijuana cultivation facility license; (2) a limited marijuana cultivation facility license to a person operating a marijuana cultivation facility with fewer than 500 square feet under cultivation; and (3) a marijuana cultivation broker facility license for a person providing essential business functions of a limited marijuana cultivation facility, including storing marijuana, purchasing or arranging the purchase of the limited marijuana cultivation facility’s marijuana crop, arranging testing and transportation of marijuana, and filing the reports and paying the marijuana excise tax required under AS 43.61.010 and AS 43.61.020. (b) A person seeking any type of marijuana cultivation facility license as provided in (a) of this section must (1) submit an application for the applicable marijuana cultivation facility license on a form the board prescribes, including the information set out at 3 AAC 306.020 and 3 AAC 306.420; and (2) demonstrate to the board’s satisfaction that it will operate in compliance with (A) each applicable provision of 3 AAC 306.400 - 3 AAC 306.480 and 3 AAC 306.700 - 3 AAC 306.755; and (B) each applicable public health, fire, safety, and tax code and ordinance of the state and the local government in which the applicant’s proposed licensed premises are located. (c) A licensee of any marijuana cultivation facility, or an employee or agent of a marijuana cultivation facility, may not have an ownership interest in, or a direct or indirect 76 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 47 financial interest in any licensed marijuana testing facility. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.030 AS 17.38.090 AS 17.38.900 AS 17.38.070 3 AAC 306.405. Standard marijuana cultivation facility: privileges and prohibited acts. (a) A licensed standard marijuana cultivation facility is authorized to (1) propagate, cultivate, harvest, prepare, cure, package, store and label marijuana; (2) sell marijuana only to a licensed retail marijuana store, to another licensed marijuana cultivation facility, or to a licensed marijuana product manufacturing facility; (3) provide samples to a licensed marijuana testing lab for testing; (4) store inventory on the licensed premises; any stored inventory must be secured in a restricted access area and accounted for in the marijuana cultivation facility’s inventory tracking system as required under 3 AAC 306.730; (5) transport marijuana in compliance with 3 AAC 306.750; (6) conduct in-house testing for the marijuana cultivation facility’s own use; (7) provide marijuana samples to a licensed retail marijuana store or marijuana product manufacturing facility for the purpose of negotiating a sale. (b) A licensed standard marijuana cultivation facility may also apply for a marijuana product manufacturing facility license and a retail marijuana store license. A standard marijuana cultivation facility that obtains any other marijuana establishment license shall (1) conduct any product manufacturing or retail marijuana store operation in a room completely separated from the cultivation facility by a secure door when co-located; and 77 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 48 (2) comply with each provision of this chapter that applies to any other type of marijuana establishment license that the standard marijuana cultivation facility licensee obtains. (c) A licensed standard marijuana cultivation facility may not (1) sell, distribute, or transfer any marijuana or marijuana product to a consumer, with or without compensation; (2) allow any person, including a licensee, employee, or agent, to consume marijuana or a marijuana product on the licensed premises or within 20 feet of the exterior of any building or outdoor cultivation facility on the licensed premises; (3) treat or otherwise adulterate marijuana with any organic or nonorganic chemical or other compound to alter the color, appearance, weight, or odor of the marijuana; (4) except as permitted under a marijuana product manufacturing facility license, extract marijuana concentrate, using any process described in 3AAC 306.555, at the licensed premises; (5) sell marijuana that is not packaged and labeled in compliance with 3 AAC 306.470 and 3 AAC 306.475; or (6) sell marijuana that has not been reported to the Department of Revenue with excise tax paid as required under AS 43.61.010 and AS 43.61.020. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.410. Limited marijuana cultivation facility: privileges and prohibited acts. (a) A licensed limited cultivation facility is authorized to (1) propagate, cultivate, harvest, and prepare marijuana for sale in a marijuana 78 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 49 cultivation facility with fewer than 500 square feet under cultivation; (2) provide marijuana samples to a licensed marijuana cultivation broker facility for the purpose of negotiating a sale; (3) sell marijuana only to a licensed marijuana cultivation broker facility with which the limited cultivation facility has a written agreement that (A) assigns responsibility for (i) arranging transportation and testing by a licensed marijuana testing facility; and for (ii) other services as agreed between the parties; and (B) requires the marijuana cultivation broker facility to file reports and pay the excise tax as required under AS 43.61.010 and AS 43.61.020 for all marijuana the marijuana cultivation broker facility purchases from the limited marijuana cultivation facility; (4) if a written agreement as provided in paragraph (a)(3) of this section does not provide for the marijuana cultivation broker facility to provide these services: (A) arrange for testing by a licensed marijuana testing facility; and (B) transport marijuana to a licensed marijuana testing facility or the marijuana cultivation broker facility with which the limited marijuana cultivation facility has an agreement under (a)(3) of this section. (b) A licensed limited marijuana cultivation facility may not (1) do any act prohibited under 3 AAC 306.405(c); (2) hold any other type of marijuana establishment license; (3) sell directly to a consumer, 79 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 50 (4) sell to any marijuana establishment except through a marijuana cultivation broker facility; and (5) sell marijuana to a marijuana cultivation broker facility without a written agreement in which the marijuana cultivation broker facility agrees to file each report and pay the excise tax required under AS 43.61.010 and AS 43.61.020. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.090 AS 43.61.010 AS 17.38.070 AS 17.38.100 AS 43.61.020 AS 17.38.084 AS 17.38.900 3 AAC 306.415. Marijuana cultivation broker facility: privileges and prohibited acts. (a) A licensed marijuana cultivation broker facility is authorized to (1) purchase marijuana from any number of licensed limited marijuana cultivation facilities; (2) sell marijuana only to a licensed retail marijuana store, to another licensed marijuana cultivation facility, or to a licensed marijuana product manufacturing facility; (3) arrange laboratory testing of marijuana obtained from a limited cultivation facility, and provide the necessary testing samples to a licensed marijuana testing facility; (4) arrange transportation of marijuana to a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store; and (5) submit to the Department of Revenue the monthly statements and pay the excise tax specified under AS 43.61.010 and AS 43.61.020 on all marijuana the marijuana cultivation broker facility purchases from a limited marijuana cultivation facility. (b) A licensed marijuana cultivation broker facility may apply for a marijuana product 80 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 51 manufacturing facility license and a retail marijuana store license. A marijuana cultivation broker facility that obtains any other marijuana establishment license shall (1) conduct any product manufacturing and retail marijuana store operation in a room completely separated from the cultivation broker facility by a secure door; and (2) comply with each provision of this chapter that applies to any other type of marijuana establishment license that the cultivation broker facility has obtained. (c) A licensed marijuana cultivation broker facility may not (1) do any act prohibited under 3 AAC 306.405(c); (2) grow marijuana; (3) extract concentrate from marijuana unless the broker facility has obtained a marijuana manufacturing facility license; (4) sell marijuana that is not packaged and labeled in compliance with 3 AAC 306.470 and 3 AAC 306.475; or (5) sell marijuana that has not been reported to the Department of Revenue with excise tax paid as required under AS 43.61.010 and AS 43.61.020. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.090 AS 43.61.010 AS 17.38.070 AS 17.38.100 AS 43.61.020 AS 17.38.084 AS 17.38.900 3 AAC 306.420. Application for marijuana cultivation facility license. (a) An applicant for a new standard marijuana cultivation facility license or a new limited marijuana cultivation facility shall file an application on a form the board prescribes, including (1) the information required under 3 AAC 306.020; and 81 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 52 (2) the proposed marijuana cultivation facility’s operating plan, including, in addition to the information required under 3 AAC 306.020(c): (A) the size of the space intended to be under cultivation; (B) the growing medium to be used; (C) fertilizers, chemicals, gases, and delivery systems, including CO2 management, to be used; (D) the irrigation and waste water systems to be used; (E) waste disposal arrangements; (F) odor control; and (G) the testing procedure and protocols the marijuana cultivation facility will follow. (b) An applicant for a limited marijuana cultivation facility license must submit the information required for a new marijuana establishment license set out in 3 AAC 306.020, and (a)(2) of this section. (c) An applicant for a marijuana cultivation broker facility license must (1) submit the information required for a new marijuana establishment license under 3 AAC 306.020; (2) agree to submit the monthly reports and pay the excise tax specified under AS 43.61.010 and AS 43.61.020 on all marijuana it purchases; and (3) provide other services the marijuana cultivation broker facility offers to a limited marijuana cultivation facility. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 82 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 53 Editor’s note: The form for an application for a marijuana cultivation facility license or a marijuana cultivation broker facility license is available online as provided in the editor’s note under 3 AAC 306.020. 3 AAC 306.425. Marijuana handler permit required. A marijuana cultivation facility must ensure that each licensee, employee, or agent (1) obtains a marijuana handler permit as provided in 3 AAC 306.700 before being present or employed at the marijuana cultivation facility’s licensed premises; and (2) has the marijuana handler permit card in the person’s immediate possession at all times while on the marijuana cultivation facility’s licensed premises. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.430. Restricted access area. (a) A marijuana cultivation facility shall conduct any operation in a restricted area in compliance with 3 AAC 306.710 and this section. (b) A marijuana cultivation facility shall conduct any marijuana growing operation within a fully enclosed secure indoor facility or greenhouse with rigid walls, a roof, and doors. Where not prohibited by local government, outdoor production may take place in non-rigid greenhouses, other structures, or an expanse of open or cleared ground fully enclosed by a physical barrier. To obscure public view of the premises, outdoor production must be enclosed by a sight obscuring wall or fence at least six feet high. (c) A marijuana cultivation facility shall ensure that any marijuana at the cultivation facility (1) cannot be observed by the public from outside the cultivation facility; and (2) does not emit an odor that is detectable by the public from outside the 83 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 54 cultivation facility except as allowed by a local government conditional use permit process. (d) A marijuana cultivation facility shall have full video surveillance of the licensed premises as required under 3 AAC 306.720, including any area where marijuana is grown, processed, packaged, or stored, or where marijuana waste is destroyed. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.435. Marijuana inventory tracking system. (a) A marijuana cultivation facility shall use an inventory tracking system in compliance with 3 AAC 306.730 to ensure all marijuana propagated, grown, or cultivated on the marijuana cultivation facility’s premises is identified and tracked from the time the marijuana is propagated through transfer to another licensed marijuana establishment or destruction. The marijuana cultivation facility must assign a tracking number to each plant over 8 inches tall. When harvested, bud and flowers, clones or cuttings, or leaves and trim may be combined in harvest batches of distinct strains, not exceeding five pounds; each harvest batch must be given an inventory tracking number. Clones or cuttings must be limited to 50 or fewer plants and identified by a batch tracking number. (b) A marijuana cultivation facility shall record each sale and transport of each batch in its marijuana inventory tracking system, and shall generate a valid transport manifest to accompany each transported batch. (c) A marijuana cultivation facility shall record in its marijuana inventory tracking system all marijuana used to provide a sample authorized under 3 AAC 306.460 for the purpose of negotiating sales, including (1) the amount of each sample; 84 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 55 (2) the retail marijuana store or marijuana product manufacturing facility that received the sample; and (3) the disposal of any expired or outdated promotional sample returned to the marijuana cultivation facility. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.440. Health and safety requirements. (a) A marijuana cultivation facility must comply with all applicable health and safety requirements set out in 3 AAC 306.735, and the additional requirements set out in this section. (b) A marijuana cultivation facility shall ensure that any licensee, employee, or agent who is present at the marijuana cultivation facility and in contact with any marijuana (1) wears clean clothing appropriate for the duties that person performs; (2) wears protective apparel, such as head, face, hand and arm coverings, as necessary to protect marijuana from contamination; and (3) practices good sanitation and health habits. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.445. Standards for cultivation and preparation. A marijuana cultivation facility shall use certified scales in compliance with AS 45.75.080 and 3 AAC 306.745. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 85 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 56 3 AAC 306.450. Production of marijuana concentrate prohibited. A marijuana cultivation facility may not produce or possess marijuana concentrate that was extracted using any process described in 3 AAC 306.455 on its licensed premises unless the marijuana cultivation facility also has a marijuana product manufacturing facility license. Any extraction or production of marijuana concentrate on the premises of a licensed marijuana cultivation facility must (1) be in a separate room that (A) is physically separated by a secure door from any cultivation area; and (B) has a sign that clearly identifies the room as a marijuana concentrate production area, and warns unauthorized persons to stay out; and (2) comply with all applicable provisions of 3 AAC 306.500 - 3 AAC 306.570. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.455. Required laboratory testing. (a) Except as provided in (d) of this section, a marijuana cultivation facility shall provide a sample of each harvest batch of marijuana produced at the facility to a marijuana testing facility, and may not sell or transport any marijuana until all laboratory testing required by 3 AAC 306.645 has been completed. (b) To comply with (a) of this section, a marijuana cultivation facility shall (1) collect a random, homogenous sample for testing by segregating harvested marijuana into batches of individual strains of bud and flower, then selecting a random sample from each batch in an amount required by the marijuana testing facility; 86 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 57 (2) designate an individual responsible for collecting each sample; that individual shall (A) prepare a signed statement showing that each sample has been randomly selected for testing; (B) provide the signed statement to the marijuana testing facility; and (C) maintain a copy as a business record under 3 AAC 306.755; (3) transport the sample to the marijuana testing facility’s licensed premises in compliance with 3 AAC 306.750. (c) A marijuana cultivation facility shall segregate the entire batch from which the testing sample was selected until the marijuana testing facility reports the results from its tests. During this period of segregation, the marijuana cultivation facility that provided the sample shall maintain the batch in a secure, cool, and dry location to prevent the marijuana from becoming contaminated or losing its efficacy. The facility that provided the sample may not sell or transport any marijuana from the segregated batch until the marijuana testing facility has completed its testing and provided those results, in writing, to the marijuana cultivation facility that provided the sample. The marijuana cultivation facility shall maintain the testing results as part of its business books and records. (d) A limited marijuana cultivation facility may contract with a marijuana cultivation broker facility to arrange the laboratory testing required in this section, and transportation of marijuana to the marijuana testing facility. A marijuana cultivation broker facility’s contract to perform these services must be in writing and must be maintained in the limited marijuana cultivation facility’s business records. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 87 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 58 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.460. Samples. (a) A marijuana cultivation facility may provide a free sample of marijuana to a retail marijuana store if packaged in a sample jar containing no more than 3 1/2 grams of marijuana and protected by a plastic or metal mesh screen to allow customers to smell the product before purchase. (b) A marijuana cultivation facility may provide a free sample of marijuana to a retail marijuana store or marijuana product manufacturing facility as follows: (1) a sample provided for the purpose of negotiating a sale may be no more than one ounce; (2) a marijuana cultivation facility may not provide any one licensed retail marijuana store or marijuana product manufacturing facility with more than one ounce of marijuana per month free of charge for the purpose of negotiating a sale. (c) A retail marijuana store that receives a marijuana sample may not sell the marijuana sample to a customer; and shall either (1) return the marijuana sample to the cultivation facility that provided the sample; or (2) destroy the marijuana sample after use and document the destruction in its marijuana inventory control system. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.465. Random sampling. (a) The board or the director will from time to time require a standard or limited marijuana cultivation facility to provide samples of the growing medium, soil amendments, fertilizers, crop production aids, pesticides, or water for 88 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 59 random compliance checks. The sample may be screened for pesticides and chemical residues, unsafe levels of metals, and used for other laboratory tests the director finds to be in the interests of the public. The marijuana cultivation facility shall bear all costs of testing under this subsection. (b) When the board or the director orders random sampling under this section, the director will identify a licensed marijuana testing facility to perform the testing. The marijuana testing facility will collect the test samples; the marijuana cultivation facility shall cooperate to facilitate the collection of samples. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.470. Packaging of marijuana. (a) A licensed marijuana cultivation facility, including a marijuana cultivation broker facility, shall package its marijuana bud and flower for sale as follows: (1) to a retail marijuana store, either (A) in a package not exceeding one ounce for resale to consumers without additional handling by the retail marijuana store except to add the retail marijuana store’s own identifying name or logo and license number; or (B) in a wholesale package not exceeding five pounds for re - packaging by the retail marijuana store; or (2) to a marijuana product manufacturing facility in a wholesale package not exceeding five pounds, consisting of a single strain or a mixture of strains as identified on the label. (b) When a licensed marijuana cultivation facility packages marijuana for a retail 89 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 60 marijuana store to sell to a consumer without re-packaging, the packaging must be designed or constructed in compliance with 16 C.F.R. 1700.01 – 1700.20, as amended Dec.30, 1983 to be significantly difficult for children under five years of age to open; but not normally difficult for adults to use properly. The packaging may not have any printed images, including cartoon characters, that specifically target individuals under the age of 21. In addition, the packaging must (1) protect the product from contamination and must not impart any toxic or damaging substance to the marijuana; (2) be four mil or greater thickness plastic, heat sealed, and with no easy-open corner, dimple or flap; (3) be opaque so that the product cannot be seen without opening the packaging material. (c) Each package prepared in compliance with this section must be identified by a tracking label generated for tracking by the marijuana cultivation facility’s marijuana inventory control system. (d) A marijuana cultivation facility shall prepare marijuana for transport or transfer to another marijuana establishment by (1) placing marijuana packaged in compliance with (a) - (c) of this section within a sealed, tamper-evident shipping container; (2) affixing a label in compliance with 3 AAC 306.475 to the shipping container; and (3) generating a transport manifest from the marijuana cultivation facility’s marijuana inventory system; the transport manifest must remain with the marijuana at all times 90 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 61 while being transported, and a copy must be given to the licensed marijuana establishment that receives the shipment. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.475. Labeling of marijuana. (a) When a licensed marijuana cultivation facility packages marijuana for a retail marijuana store to sell to a consumer without re- packaging, the marijuana cultivation facility shall affix a label to each package of marijuana or marijuana product that contains the following statements: (1) "Marijuana has intoxicating effects and may be habit forming;" (2) "Marijuana can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under its influence;" (3) "There may be health risks associated with consumption of marijuana;” and (4) "For use only by adults twenty-one and older. Keep out of the reach of children" (5) “Marijuana should not be used by women who are pregnant or breast feeding.” (b) With each harvest batch of marijuana sold, a marijuana cultivation facility must disclose in writing (1) each soil amendment, fertilizer, and other crop production aid applied to the growing medium or marijuana plant included in the batch; and (2) the name of the licensed marijuana testing facility that performed any required laboratory test and the results of each required laboratory test. (c) A marijuana cultivation facility may not label marijuana as organic unless permitted by the United States Department of Agriculture in accordance with 7 U.S.C. 6501 (Organic 91 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 62 Foods Production Act of 1990). (d) A marijuana cultivation facility shall affix a label containing the following information to each package of marijuana sold to another marijuana establishment. (1) the name and license number of the marijuana cultivation facility where the marijuana was grown; (2) the harvest batch number assigned to the marijuana in the package; (3) the net weight of the marijuana in the package, not including weight of the shipping container, using a standard of measure compatible with the inventory tracking system; and (4) a complete list of all pesticides, fungicides, and herbicides used in cultivation of the marijuana. (e) If a marijuana cultivation facility transports wholesale marijuana to another marijuana establishment for sale at retail or for use in manufacturing a marijuana product, then a label must be affixed to the shipping container showing that a licensed marijuana testing facility has tested each harvest batch in the shipment as provided in 3 AAC 306.645. The label must report the test results, including the following information: (1) a cannabinoid potency profile expressed as a range of percentages that extends from the lowest percentage to highest percentage of concentration for each cannabinoid listed from every test conducted on that strain of marijuana from the same marijuana cultivation facility within the last three months; (2) a statement listing the results of microbial testing required by 3 AAC 306.645(b)(2); (3) a statement listing the results of residual solvent testing required by 3 AAC 92 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 63 306.645(b)(3), if applicable; (4) a statement listing any of the following contaminants for which the product was tested: (A) molds, mildew and filth, in addition to the testing required by 3 AAC 306.645(b)(2); (B) herbicides, pesticides, and fungicides; and (C) harmful chemicals. (f) If a marijuana cultivation facility ships wholesale marijuana from a harvest batch that has not been tested for each contaminant listed in (e)(4) of this section, the label for that batch must include a statement identifying each contaminant listed in (e)(4) of this section for which that harvest batch has not been tested. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.480. Marijuana tax to be paid. (a) A standard marijuana cultivation facility shall submit monthly reports to the Department of Revenue and pay the excise tax required under AS 43.61.010 and AS 43.61.020 on all marijuana sold, or provided as a sample to any marijuana establishment. (b) A marijuana cultivation broker facility shall submit monthly reports to the Department of Revenue and pay the excise tax required under AS 43.61.010 and AS 43.61.020 on all marijuana it has obtained from a limited marijuana cultivation facility, including any sample provided to any other marijuana establishment. The broker shall agree to comply with this section in a written agreement with each limited marijuana cultivation facility from which it purchases marijuana, and shall provide a copy of the monthly report required under AS 93 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 64 43.61.020 to each limited marijuana cultivation facility from which it purchases marijuana. If a marijuana cultivation broker facility fails to pay the required tax, the limited marijuana cultivation facility shall pay the required tax. (c) When a marijuana cultivation facility, including a marijuana cultivation broker facility, sells or distributes any marijuana to a retail marijuana store or a marijuana product manufacturing facility, the marijuana cultivation facility or marijuana cultivation broker must provide verification of tax payment to the purchaser. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.900 AS 17.38.030 AS 17.38.090 AS 43.61.010 AS 17.38.070 AS 17.38.100 AS 43.61.020 Article 5. Marijuana Product Manufacturing Facilities. Section 500. Marijuana product manufacturing facility license required 505. Marijuana product manufacturing facility privileges 510. Acts prohibited at marijuana product manufacturing facility 515. Marijuana concentrate manufacturing facility license 520. Application for marijuana product manufacturing facility license 525. Approval of concentrates and marijuana products 530. Marijuana handler permit and food safety worker training 535. Restricted access and storage areas 540. Marijuana inventory tracking system 545. Health and safety standards 94 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 65 550. Required laboratory testing 555. Production of marijuana concentrate 560. Potency limits per serving and transaction for edible marijuana products 565. Packaging of marijuana products 570. Labeling of marijuana products 3 AAC 306.500. Marijuana product manufacturing facility license required. (a) A person may not extract marijuana concentrate for sale, or formulate or manufacture any marijuana product for sale unless that person has obtained a marijuana product manufacturing facility license from the board in compliance with this chapter, or is an employee or agent acting for a licensed marijuana product manufacturing facility. The board will issue (1) a standard marijuana product manufacturing facility license; and (2) a marijuana concentrate manufacturing facility license. (b) A person seeking any type of marijuana product manufacturing facility license must (1) submit an application for a marijuana product manufacturing facility license on a form the board prescribes, including the information set out at 3 AAC 306.020 and 3 AAC 306.520; and (2) demonstrate to the board’s satisfaction that it will operate in compliance with (A) each applicable provision of 3 AAC 306.500 - 3 AAC 306.570 and 3 AAC 306-700 - 3 AAC 306.755; and (B) each applicable public health, fire, safety, and tax code and ordinance of the state and the local government in which the applicant’s proposed licensed premises are located. (c) A licensee of any marijuana product manufacturing facility, or an employee or agent 95 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 66 of a marijuana product manufacturing facility, may not have an ownership interest in, or a direct or indirect financial interest in any licensed marijuana testing facility. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.505. Marijuana product manufacturing facility privileges. (a) Except as provided in 3 AAC 306.515, a licensed marijuana product manufacturing facility, including a marijuana concentrate manufacturing facility, is authorized to (1) purchase marijuana from a marijuana cultivation facility including a marijuana cultivation broker facility, or from another marijuana product manufacturing facility; (2) extract marijuana concentrate in compliance with 3 AAC 306.555; (3) manufacture, refine, process, cook, package, label, and store marijuana products approved under 3 AAC 306.525, including (A) marijuana concentrate; or (B) any product intended for consumption or use on the body that is comprised of marijuana and other ingredients, including edible products, ointments, salves, patches, or tinctures; (4) sell, distribute, or deliver marijuana extract or any marijuana product only to a licensed retail marijuana store or to another licensed marijuana product manufacturing facility; (5) provide and transport samples of marijuana concentrate or other marijuana product to a certified marijuana testing lab for testing; (6) provide a sample of marijuana concentrate or a marijuana product approved under 3 AAC 306.525 to a licensed retail marijuana store for the purpose of negotiating a sale; 96 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 67 (7) store inventory in a restricted access area on the licensed premises as provided in 3 AAC 306.535; and (8) transport marijuana in compliance with 3 AAC 306.750; or (9) conduct in-house testing for the marijuana product manufacturing facility’s own use. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.510. Acts prohibited at marijuana product manufacturing facility. (a) A licensed marijuana product manufacturing facility, including a licensed marijuana concentrate manufacturing facility, may not (1) sell, deliver, distribute, or transfer marijuana, marijuana concentrate, or a marijuana product directly to a consumer, with or without compensation; (2) sell marijuana, marijuana concentrate, or a marijuana product that is not manufactured, packaged, and labeled in compliance with 3 AAC 306.500 – 3 AAC 306.570; (3) allow any person, including a licensee, employee, or agent, to consume marijuana, marijuana concentrate, or a marijuana product on its licensed premises; (4) manufacture or sell any product that (A) is an adulterated food or drink; (B) is a marijuana product containing any food that requires temperature- controlled storage to keep it safe for human consumption; (C) closely resembles any familiar food or drink item including candy; or (D) is packaged to look like candy, or in bright colors or with cartoon characters or other pictures or images that would appeal to children; and 97 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 68 (5) operate in a location that is a retail or wholesale food establishment. (b) In this section, “closely resemble” or “look like” means the product or its packaging has a shape, color, markings, or decorative patterns that are familiar to the public from a widely distributed branded food product, so that the marijuana product could easily be mistaken for that branded product, especially by children. (c) A marijuana product manufacturing facility may not accept any marijuana from a marijuana cultivation facility or another marijuana product manufacturing facility unless (1) all marijuana in the shipment is properly identified with a label generated in the marijuana inventory tracking system of the licensed marijuana establishment that provided the marijuana; and (2) a valid transport manifest showing the source and destination of the marijuana is attached to the shipment. (d) A marijuana product manufacturing facility may not purchase or receive any marijuana from a marijuana cultivation facility, or another marijuana product manufacturing facility unless it receives evidence that tax due under AS 43.61.010 has been paid. If a marijuana product manufacturing facility has marijuana on its premises without a certificate showing the excise tax imposed under AS 43.61.010 has been paid on that marijuana, the marijuana product manufacturing facility is liable for payment of the tax. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.090 AS 17.38.900 AS 17.38.070 AS 17.38.100 AS 43.61.010 AS 17.38.084 3 AAC 306.515. Marijuana concentrate manufacturing facility license. A licensed marijuana concentrate manufacturing facility has the privileges set out in 3 AAC 306.505, except 98 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 69 that it may not (1) manufacture, refine, process, cook, package, label or store any marijuana product other than marijuana concentrate; (2) sell, distribute, or deliver any marijuana product other than marijuana concentrate to a retail marijuana store or to another marijuana product manufacturing facility; (3) provide and transport a sample of any marijuana product other than marijuana concentrate to a licensed marijuana testing lab for testing; or (4) provide samples of any product other than marijuana concentrate to a licensed retail marijuana store for purposes of negotiating a sale. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.520. Application for marijuana product manufacturing facility license. An applicant for a marijuana product manufacturing facility license, including a marijuana concentrate manufacturing facility, must file an application on a form the board prescribes, and provide the information required under 3 AAC 306.020 and the following: (1) a copy of a food safety permit if required under 18 AAC 31.020; (2) a diagram of the proposed licensed premises required in 3 AAC 306.020(b), identifying the area where (A) in-house testing, if any, will occur; and (B) marijuana and any marijuana product, including marijuana concentrate, will be stored; (3) in the applicant’s operating plan required under 3 AAC 306.020(c), a description of 99 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 70 (A) the equipment and solvents, gases, chemicals, and other compounds used to create concentrates and the processes to be used; (B) each marijuana product the applicant intends to process at this location; the product description must include the color, shape, texture, ingredients and standard production procedure to be used and the additional information required for product approval in 3 AAC 306.525; (C) the packaging to be used for each type of product; and (D) sample labels showing how the labeling information required in 3 ÅAC 306.570 will be set out; and (E) the applicant’s plan for disposal of waste. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 Editor’s note: The form for an application for a marijuana product manufacturing facility license or a marijuana concentrate manufacturing license is available online as provided in the editor’s note under 3 AAC 306.020. 3 AAC 306.525. Approval of concentrates and marijuana products. (a) A marijuana product manufacturing facility, including a marijuana concentrate manufacturing facility, must obtain the board’s approval for each product it will manufacture for sale or transfer to another licensed marijuana establishment. The board will not approve (1) any marijuana concentrate or product intended for sale directly to a consumer if the concentrate or product will have THC potency equal to or greater than 76 percent; or (2) any product that is prohibited under 3 AAC 306.510(a)(4). (b) An applicant for a marijuana product manufacturing facility license may request the 100 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 71 board’s approval of its intended products with a new license application by including, in its operating plan (1) a photograph, drawing, or graphic representation of the expected appearance of each final product; and (2) the proposed standard production procedure and detailed manufacturing process for each product. (c) A licensed marijuana product manufacturing facility may at any time submit a new product approval request to the board on a form the board prescribes along with a fee of $250. (d) A licensed marijuana product manufacturing facility shall keep its ingredient list and potency limits for any food product containing marijuana on file at the marijuana product manufacturing facility’s licensed premises. The ingredient list and potency limits for any product manufactured at the facility must be made available for inspection on request by the director, or an employee or agent of the board. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.530. Marijuana handler permit and food safety worker training. (a) A marijuana product manufacturing facility shall ensure that each licensee, employee, or agent (1) obtains a marijuana handler permit as provided in 3 AAC 306.700 before being present or employed at the marijuana product manufacturing facility’s licensed premises; and (2) has the marijuana handler permit card in the person’s immediate possession at all times while on the marijuana product manufacturing facility’s licensed premises. (b) A licensee, employee, or agent of a licensed marijuana product manufacturing 101 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 72 facility who handles marijuana at the facility shall obtain a food safety worker card in compliance with AS 18.31.330, and keep that card in that person’s possession at all times while on the licensed premises of the marijuana product manufacturing facility. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.535. Restricted access and storage areas. (a) A marijuana product manufacturing facility shall conduct any extraction or product manufacturing operation in a restricted area in compliance with 3 AAC 306.710. (b) A marijuana product manufacturing facility shall have full video surveillance of the licensed premises as provided in 3 AAC 306.720, including any area where (1) marijuana concentrate is produced; (2) any operation involved in manufacturing any product containing marijuana occurs, (3) marijuana or a marijuana product is stored or stockpiled; or (4) marijuana waste is destroyed. (c) Any area where marijuana or a marijuana product is stored must be moisture and temperature controlled and protected from pests and vermin. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.540. Marijuana inventory tracking system. (a) A marijuana product manufacturing facility shall use a marijuana inventory tracking system as provided in 3 AAC 102 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 73 306.730 to ensure that the marijuana product manufacturing facility identifies and tracks any marijuana or marijuana product from the time the marijuana or marijuana product is received, through (1) use of the marijuana or marijuana product in manufacturing any other marijuana product; (2) sale or transfer of the marijuana or marijuana product originally received, or any marijuana product manufactured at that marijuana product manufacturing facility to another licensed marijuana establishment; and (3) disposal of any expired or outdated marijuana or marijuana product that is not sold or transferred to another licensed marijuana establishment. (b) When marijuana from a marijuana cultivation facility or marijuana product from another marijuana product manufacturing facility is delivered or transported to the licensed premises of a marijuana product manufacturing facility, the marijuana product manufacturing facility shall immediately enter tracking information for that marijuana or marijuana product into the inventory tracking system. A marijuana product manufacturing facility may not accept any marijuana or marijuana product that does not have a valid transport manifest generated from the marijuana inventory tracking system of the licensed marijuana establishment that supplies the marijuana or marijuana product. (c) A marijuana product manufacturing facility shall track any received marijuana or marijuana product to its use in a marijuana product, and shall reconcile each transaction to its inventory tracking system at the close of business each day. (d) A marijuana product manufacturing facility shall account for any variance in the quantity of marijuana or marijuana product the facility received, and the quantity the facility 103 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 74 sold, transferred, or disposed of. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.545. Health and safety standards. (a) A marijuana product manufacturing facility shall comply with the health and safety standards set out in 3 AAC 306.735, the Alaska Food Safety Code, 18 AAC 31, if applicable, and any local kitchen-related health and safety standards for retail food establishments. (b) In addition to inspection by the director or an employee or agent of the board, a marijuana product manufacturing facility is subject to inspection by local safety officials, including a local fire department, building inspector, or code enforcement officer. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.550. Required laboratory testing. (a) A marijuana product manufacturing facility shall provide a sample of each marijuana product manufactured at the facility to a licensed marijuana testing facility, and may not sell or transport any marijuana product until all laboratory testing required by 3 AAC 306.645 has been completed. (b) To comply with (a) of this section, a marijuana product manufacturing facility shall (1) collect a random sample for testing by selecting a product from each production lot in an amount required by the marijuana testing facility; (2) designate an individual responsible for collecting each sample; that individual shall (A) prepare a signed statement showing that each sample has been 104 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 75 randomly selected for testing; (B) provide the signed statement to the marijuana testing facility; and (C) maintain a copy as a business record under 3 AAC 306.755, and (3) transport the sample to the marijuana testing facility in compliance with 3 AAC 306.750. (c) After collecting and transporting a sample for testing, a marijuana product manufacturing facility shall segregate the entire production lot from which the testing sample was selected until the marijuana testing facility reports the results from its tests. During this period of segregation, the marijuana product manufacturing facility that provided the sample shall maintain the production lot in a secure, cool, and dry location to prevent the marijuana product from becoming contaminated or losing its efficacy. The marijuana product manufacturing facility may not sell or transport any marijuana product from the segregated lot until the marijuana testing facility has completed its testing and analysis and provided those results, in writing, to the marijuana product manufacturing facility that provided the sample. The marijuana product manufacturing facility shall maintain the testing results as part of its business records. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.555. Production of marijuana concentrate. (a) Before producing any marijuana concentrate for sale, a marijuana product manufacturing facility shall develop standard operating procedures, good manufacturing practices, a safety plan, and a training plan for each individual employed in an extraction process. (b) A marijuana product manufacturing facility may create marijuana concentrates only 105 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 76 as follows: (1) water-based marijuana concentrate may be produced by extracting cannabinoids from marijuana by using only water, ice or dry ice; (2) food-based marijuana concentrate may be produced by extracting cannabinoids from marijuana through the use of propylene glycol, glycerin, butter, olive oil, or other typical cooking fats; infused dairy butter and oils or fats derived from natural sources may be used to prepare infused edible products, but may not be prepared as stand-alone edible products for sale; (3) solvent-based marijuana concentrate may be produced using the hydrocarbons N-butane, isobutane, propane, or heptane or other solvents or gases the board approves that exhibit low to minimal potential human health-related toxicity; approved solvents must be of at least ninety-nine percent purity and must be used (A) in a professional grade closed loop extraction system designed to recover the solvents; (B) in an environment with proper ventilation; and (C) with control of all sources of ignition if a flammable atmosphere is or may be present. (c) A marijuana product manufacturing facility using a professional grade closed loop gas extraction system must ensure that (1) every vessel is used in compliance with the manufacturer’s stated pressure ratings; (2) any CO2 used is of at least ninety-nine percent purity; (3) any person using a solvent or gas to extract marijuana concentrate in the 106 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 77 closed looped system must be fully trained on how to use the system, have direct access to applicable material safety data sheets, and handle and store the solvent and gas safely; (4) a licensed engineer has certified that the professional grade closed loop system was commercially manufactured, is safe for its intended use, and is built to codes of recognized and generally accepted engineering practices; (5) any professional grade closed loop system, and other equipment and facilities used in the extraction process must be approved for their use by the local fire code official and must meet any applicable fire, safety, and building code requirements. (d) A marijuana product manufacturing facility may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create kief, hashish, bubble hash, infused dairy butter, or oils or fats derived from natural sources, and other extracts. (e) A marijuana product manufacturing facility may use food grade glycerin, ethanol, and propylene glycol solvents to create extracts. All ethanol must be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.560. Potency limits per serving and transaction for edible marijuana products. (a) A marijuana product manufacturing facility may not prepare any product with potency levels exceeding the following, as tested in compliance with 3 AAC 306.645: (1) for a single serving of marijuana product, five milligrams active tetrahydrocannabinol (THC) or Delta 9; 107 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 78 (2) in a single packaged unit of marijuana product to be eaten or swallowed, not more than ten servings, or fifty milligrams of active THC or Delta 9; the THC content must be homogenous, or evenly distributed throughout the marijuana infused product. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.565. Packaging of marijuana products. (a) A marijuana product manufacturing facility shall observe the potency limits set out in 3 AAC 306.560 in packaging each product for resale by a retail marijuana store. (b) A container or packaging for any edible marijuana product produced by a marijuana product manufacturing facility must be designed or constructed in compliance with 16 C.F.R. 1700.01 – 1700.20, as amended Dec. 30, 1983 to be significantly difficult for children under five years of age to open; but not normally difficult for adults to use properly. The container or packaging may not have any printed images, including cartoon characters, that specifically target individuals under the age of 21. In addition, the packaging must (1) protect the product from contamination and not impart any toxic or damaging substance to the product; (2) be four mil or greater thickness plastic, heat sealed and with no easy-open corner, dimple or flap; marijuana product in liquid form may also be sealed using a metal crown product; (3) be opaque so that the product cannot be seen without opening the packaging material; (4) if the marijuana package contains multiple servings or is intended for more 108 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 79 than a single use, the packaging must be resealable to childproof standards in compliance with C.F.R. 1700.01 – 1700.20, as amended Dec. 30, 198; and (5) if the marijuana product contains multiple servings, the product itself must have markings or demarcations clearly delineating each serving of the product. For liquid marijuana products with multiple servings the packaging must indicate the number and size of individual servings. (c) A licensed marijuana product manufacturing facility may transfer marijuana products that are not edible marijuana products to another licensed facility in wholesale packages not to exceed 5 pounds. (d) Each packaged marijuana product must be identified by a tracking label generated by the marijuana product manufacturing facility’s marijuana inventory control system. (e) A licensed marijuana product manufacturing facility shall prepare marijuana products for transfer to another marijuana establishment by (1) placing marijuana products within a sealed, tamper-evident shipping container; (2) affixing a label that complies with 3 AAC 306.570(d) to the shipping container; and (3) generating a transport manifest from the marijuana product manufacturing facility’s marijuana inventory system; the transport manifest must remain with the marijuana products at all times while being transported, and a copy must be given to the licensed marijuana establishment that receives the shipment. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 109 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 80 3 AAC 306.570. Labeling of marijuana products. (a) With each production lot of marijuana product sold, a marijuana product manufacturing facility must disclose in writing the name of the licensed marijuana testing facility that performed any required test and the results of each required test. (b) A marijuana product may not be labeled as organic unless permitted by the United States Department of Agriculture in compliance with 7 U.S.C. 6501 (Organic Foods Production Act of 1990). (c) A marijuana product manufacturing facility shall affix a label containing the following information to each package of marijuana product sold to a retail store for resale to a consumer: (1) the name and license number of the marijuana product manufacturing facility where the marijuana product was prepared; (2) the production lot number assigned to the product in the package; (3) the net weight of the product in the package, not including weight of packaging, using a standard of measure compatible with the inventory tracking system; (4) a label containing the following statements: (A) "Marijuana has intoxicating effects and may be habit forming;" (B) "Marijuana can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under its influence;" (C) "There may be health risks associated with consumption of marijuana;” and (D) "For use only by adults twenty-one and older. Keep out of the reach of children" 110 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 81 (E) “Marijuana should not be used by women who are pregnant or breast feeding.” (d) A marijuana product manufacturing facility transporting marijuana product to a retail marijuana store shall affix a label to the shipping container showing that a licensed marijuana testing facility has tested each lot of marijuana product in the shipment and giving the test results, including the following information: (1) a cannabinoid potency profile expressed as a range of percentages that extends from the lowest percentage to highest percentage of concentration for each cannabinoid listed from every test conducted on that production lot from the same marijuana product manufacturing facility within the last three months; (2) a statement listing the results of microbial testing required by 3 AAC 306.645(b)(2); (3) a statement listing the results of residual solvent testing required by 3 AAC 306.645(b)(3), if applicable; (4) a statement listing any of the following contaminants for which the product was tested: (A) molds, mildew and filth, in addition to the testing required by 3 AAC 306.645(b)(2); (B) herbicides, pesticides, and fungicides, and (C) harmful chemicals. (e) If a marijuana product manufacturing facility ships wholesale marijuana product from a production lot of marijuana product that has not been tested for each contaminant listed in (d)(4) of this section, the label for that lot must include a statement identifying each contaminant 111 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 82 listed in (d)(4) of this section for which that lot has not been tested. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 Article 6. Marijuana Testing Facilities. Section 600. Applicability 605. Marijuana testing facility license required 610. Marijuana testing facilities: privileges and prohibitions 615. Application for marijuana testing facility license 620. Approval of testing facility 625. Proficiency testing program 630. Scientific director 635. Testing methodologies 640. Standard operating procedure manual 645. Laboratory testing of marijuana and marijuana products 650. Chain of custody 655. Marijuana inventory tracking system 660. Failed materials, retests 665. Supplemental marijuana quality testing 670. Reporting, verification 675. Records retention 112 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 83 3 AAC 306.600. Applicability. (a) The provisions of 3 AAC 306.600 - 3 AAC 306.675 apply to any person offering any service testing, analyzing, or certifying potency, moisture content, pesticide or solvent residue, mold, mildew, bacteria, or other contaminant in marijuana or any marijuana product to any other person including a marijuana establishment or any member of the public, whether for compensation or not, as a independent or third party testing facility. (b) The provisions of 3 AAC 306.600 - 3 AAC 306.675 do not apply to any licensed marijuana establishment that controls marijuana testing equipment used solely for its own in- house testing of its own cultivated crop, of products produced or manufactured at its own facility, or of retail products placed or offered for sale in its marijuana retail store. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.605. Marijuana testing facility license required. (a) A person may not offer or provide any marijuana testing service or test results unless the person has obtained a marijuana testing facility license from the board in compliance with this chapter, or is an employee or agent acting for a licensed marijuana testing facility. (b) A person seeking a marijuana testing facility license must (1) submit an application for a marijuana testing facility license on a form the board prescribes, including the information set out at 3 AAC 306.020 and 3 AAC 306.615; and (2) demonstrate to the board’s satisfaction that the applicant will operate in compliance with (A) each applicable provision of 3 AAC 306.600 – 3 AAC 306.675, and 113 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 84 3 AAC 306.700 - 3 AAC 306.755; and (B) each applicable public health, fire, safety, and tax code and ordinance of the state and the local government in which the applicant’s proposed licensed premises are located. (C) does not hold any marijuana establishment license in Alaska other than a testing facility license, or have any financial interest in common with any person who is a licensee of a marijuana establishment in Alaska other than a testing facility license; and (D) meets the board’s standards for approval as set out in 3 AAC 306.620 - 3 AAC 306.625. (c) A licensee of any marijuana testing facility, or an employee or agent of a licensed marijuana testing facility may not have an ownership interest in, or a direct or indirect financial interest in any other licensed marijuana establishment. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.610. Marijuana testing facilities: privileges and prohibitions. (a) A licensed marijuana testing facility may have any amount of marijuana and marijuana product on its premises at any given time provided that the testing facility’s marijuana inventory tracking system and other records document that all marijuana and marijuana products are on the premises only for the testing purposes described in 3 AAC 306.600 – 3 AAC 3306.675. (b) A licensed marijuana testing facility may not (1) have any licensee, employee, or agent who holds any type of marijuana establishment license other than a marijuana testing facility license issued under this chapter; 114 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 85 (2) sell, deliver, distribute, or transfer any marijuana or marijuana product to a consumer, with or without compensation; or (3) allow any person to consume marijuana or marijuana product on its licensed premises. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.615. Application for marijuana testing facility license. An applicant for a new marijuana testing facility license must file an application on a form the board prescribes, including (1) the information required under 3 AAC 306.020; and (2) the proposed marijuana testing facility’s operating plan, including, in addition to the information required under 3 AAC 306.020(c), the following: (A) each test the marijuana testing facility will offer; (B) the facility’s standard operating procedure for each test the facility will offer; and (C) the acceptable range of results for each test the facility will offer. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.620. Approval of testing facility. (a) A person seeking a marijuana testing facility license must first obtain the approval of the board or the board’s contractor by showing competence to perform each test the licensee will offer as an independent third party testing facility, including tests to identify 115 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 86 (1) THC, THCA, CBD, CBDA and CBN potency; (2) harmful microbials including E. coli or salmonella; (3) residual solvents; (4) poisons or toxins; (5) harmful chemicals; (6) dangerous molds, mildew or filth; (7) pesticides. (b) In evaluating whether a person has shown competence in testing under this section, the board or the board’s contractor may (1) conduct an on-site inspection of the applicant’s premises; (2) require the applicant to demonstrate proficiency in testing; and (3) examine compliance with any applicable requirement of 3 AAC 306.630 - 3AAC 306.675, and 3 AAC 306.700 - 3AAC 306.755, including (A) qualifications of personnel; (B) standard operating procedure for each testing methodology the facility will use; (C) proficiency testing results; (D) quality control and quality assurance; (E) security; (F) chain of custody; (G) specimen retention; (H) space; (I) records; and 116 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 87 (J) reporting of results. (c) In this section, “approval” means the board or its contractor has examined the qualifications and procedures of the marijuana testing facility license applicant and found them generally in compliance with good laboratory practices; “approval” does not mean the board guarantees that the testing facility can or will protect the public from all potential hazards of marijuana including microbials, poisons or toxins, residual solvents, pesticides, or other contaminants. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.625. Proficiency testing program. (a) When an accredited proficiency testing program becomes available in the state, the board may require an applicant for a marijuana testing facility license to participate successfully in a proficiency testing program within 12 months before receiving a license. The proficiency testing program must require an applicant for a marijuana testing facility license or a participating licensed marijuana testing facility to analyze test samples using the same procedures with the same number of replicate analyses, standards, testing analysts, and equipment that will be used for product testing. Successful participation means the positive identification of 80 percent of the target analytes that the testing facility reports, and must include quantitative results when applicable. Any false positive results reported will be considered an unsatisfactory score for the proficiency test. (b) Before renewing the license of a marijuana testing facility, the board may require the facility to participate in a proficiency testing program with documentation of continued performance satisfactory to the board. The license of a marijuana testing facility may be limited, suspended, or revoked if the facility fails to participate and receive a passing score in a 117 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 88 proficiency testing program. (c) The scientific director and each testing analyst of an applicant for a marijuana testing facility license and a licensed marijuana testing facility that participated in a proficiency test shall sign a corresponding attestation statement. The scientific director must review and evaluate each proficiency test result. (d) An applicant for a marijuana testing facility license, and a licensed marijuana testing facility participating in the proficiency testing program, shall take and document remedial action when the applicant or the facility meets the standards of (a) of this section, but scores less than 100 percent in a proficiency test. “Remedial action” means the marijuana testing facility’s scientific director shall, at a minimum, review all samples tested and results reported after the date of the marijuana testing facility’s last successful proficiency test. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.630. Scientific director. (a) A marijuana testing facility must employ a scientific director who must be responsible for (1) overseeing and directing the laboratory’s scientific methods; (2) ensuring that the laboratory achieves and maintains quality standards of practice; and (3) supervising all staff of the laboratory. (b) The scientific director of a marijuana testing facility must have the following qualifications: (1) a doctorate degree in chemical or biological sciences from an accredited 118 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 89 college or university and have at least 2 years of post-degree laboratory experience; (2) a master’s degree in chemical or biological sciences from an accredited college or university and have at least 4 years of post-degree laboratory experience; or (3) a bachelor’s degree in chemical or biological sciences from an accredited college or university and have at least 6 years of post-degree laboratory experience. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.635. Testing methodologies. (a) An applicant for a marijuana testing facility license and a licensed marijuana testing facility shall (1) use the following materials, which are hereby adopted by reference, as guidelines or references for testing methodologies: (A) Cannabis Inflorescence: Standards of Identity, Analysis, and Quality Control, Revision 2014 published by the American Herbal Pharmacopoeia; and (B) United Nations Office on Drugs and Crime: Recommended methods for the identification and analysis of cannabis and cannabis products: Manual for use by national drug analysis laboratories (2009). (2) notify the board of any alternative scientifically valid testing methodology the facility proposes to use for any laboratory test it conducts; the board may require third-party validation of any monograph, peer reviewed scientific journal article, or analytical method the marijuana testing facility proposes to follow to ensure the methodology produces comparable and accurate results. (b) An applicant for a marijuana testing facility license and the holder of a marijuana 119 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 90 testing facility license must be familiar with, and to the extent possible, integrate into the facility’s operations the good laboratory practices set out in the following materials, hereby adopted by reference (1) 21 C.F.R. 58, as revised as of Dec. 22, 1978; and (2) Principles of Good Laboratory Practice and Compliance Monitoring published by the Organization for Economic Co-operation and Development (OECD), as revised as of 1999. (c) The board or the board’s contractor may inspect the practices, procedures, and programs adopted, followed, and maintained by the applicant or the licensed marijuana testing facility; and may examine all records of the applicant or the licensed marijuana testing facility that are related to the inspection. The board may require an applicant or a licensed marijuana testing facility to have an independent third party inspect and monitor laboratory operations to assess testing competency and the facility’s compliance with its quality program. The board may require random validation of a marijuana testing facility’s execution of all testing methodologies the facility uses. The marijuana testing facility must pay all costs of validation. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 Editor’s note: Cannabis Inflorescence: Standards of Identity, Analysis, and Quality Control, Revision 2014, published by the American Herbal Pharmacopoeia may be obtained from the American Herbal Pharmacopoeia, P.O. Box 66809, Scotts Valley, California 95067, or at the Internet address http://www.herbal-ahp.org/ United Nations Office on Drugs and Crime: Recommended methods for the identification and analysis of cannabis and cannabis products: Manual for use by national drug analysis laboratories (2009).is available at the internet address https://www.unodc.org/documents/scientific/ST-NAR-40-Ebook.pdf 120 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 91 OECD Principles of Good Laboratory Practice and Compliance Monitoring published by the Organisation for Economic Co-operation and Development as revised as of 1997 is available at the internet address 3 AAC 306.640. Standard operating procedure manual. (a) An applicant for a marijuana testing facility license and a licensed marijuana testing facility must have a written procedures manual with detailed instructions explaining how to perform each testing method the applicant or marijuana testing facility uses, and minimum standards for each test. The written procedures manual must be available to each employee of the marijuana testing facility at all times. A standard operating procedures manual must cover at least the following procedures: (1) sample preparation; (2) reagent, solution, and reference standard preparation; (3) instrument setup, where applicable; (4) standardization of volumetric reagent solutions, as applicable; (5) data acquisition; and (6) calculation of results. (b) The scientific director of a licensed marijuana testing facility shall approve, sign, and date each standard operating procedure, and each revision to any standard operating procedure. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.645. Laboratory Testing of Marijuana and Marijuana Products. (a) A licensed marijuana testing facility must use the general body of required laboratory tests for marijuana plant material, any extract or concentrate of marijuana, and any edible marijuana products as listed in the tables in this section. Required tests may include potency analysis, 121 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 92 moisture content, foreign matter inspection, microbial screening, pesticide, other chemical residue, and metals screening, and residual solvents levels. A marijuana testing facility shall establish a schedule of fees and sample size required for each test it offers. (b) The tests required for each marijuana type or marijuana product, are as follows: (1) potency testing is required on marijuana bud and flower, marijuana concentrate, and marijuana product, and is subject to the following rules: (A) required cannabinoid potency test must at least determine the concentration of THC, THCA, CBD, CBDA and CBN cannabinoids; a marijuana testing facility may test and report results for any additional cannabinoid provided the test is conducted in compliance with a validated method; (B) a marijuana testing facility shall report potency test results as follows: (i) for a potency test on marijuana and marijuana concentrate, by listing for each required cannabinoid a single percentage concentration that represents an average of all samples within the test batch; alternatively, the sum of THC + THCA may be reported as total THC; the sum of CBD + CBDA may be reported as total CBD; (ii) for a potency test on a marijuana product, whether conducted on each individual production lot or using process validation, by listing for each cannabinoid the total number of milligrams contained within a single retail marijuana product unit for sale; and (iii) for testing whether the THC content is homogenous, the THC content of each single serving in a multi-unit package must be reported, and must be within 20% of the manufacturer’s target; for example, in a 25 mg total THC 122 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 93 package with 5 servings, each serving must contain between 4 and 6 mg of THC; (C) edible marijuana products will be considered to have failed potency testing if: (i) an individually packaged edible retail marijuana product contained within a test lot is determined to have more than 50 mg of THC within it, then the test batch is considered to have failed potency testing; (ii) if the THC content of an edible marijuana product is not homogenous, then it is considered to have failed potency testing; (2) microbial testing for the listed substances on the listed marijuana products is required as follows: Substance Acceptable Limits Per Gram Product to be Tested –Shiga-toxin producing Escherichia coli (STEC)*- Bacteria < 1 Colony Forming Unit (CFU/g) Flower; Retail Marijuana Products; Water- and Food- Based Concentrates Salmonella species* – Bacteria < 1 Colony Forming Unit (CFU/g) Aspergillus fumigatus, Aspergillus flavus, Aspergillus niger - Fungus < 1 Colony Forming Unit (CFU/g) (3) testing for the listed residual solvents and metals on the listed marijuana products is required as follows: Substance Acceptable Limits Per Gram Product to be Tested Butanes < 800 Parts Per Million (PPM) Solvent-Based Concentrates Heptanes < 500 Parts Per Million (PPM) Benzene** < 1 Parts Per Million (PPM) Toluene** < 1 Parts Per Million (PPM) Hexane** < 10 Parts Per Million (PPM) Total Xylenes (m,p, o-xylenes)** < 1 Parts Per Million (PPM) Any solvent not permitted for use pursuant to Rule R 605. None Detected (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.650. Chain of custody. A marijuana testing facility must establish an 123 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 94 adequate chain of custody and sample requirement instructions that include (1) issuing instructions for the minimum sample requirements and storage requirements; (2) documenting the condition of the external package and integrity seals utilized to prevent contamination of, or tampering with, the sample; (3) documenting the condition and amount of sample provided at the time the sample is received at the facility; (4) documenting each person handling the original samples, aliquots, and extracts; (5) documenting any transfer of samples, aliquots, and extracts to another marijuana testing facility for additional testing or at the request of the marijuana cultivation facility or marijuana product manufacturer that provided the testing sample; (6) maintaining a current list of authorized personnel and restricting entry to the facility to those authorized persons; (7) securing the facility during non-working hours; (8) securing short-term and long-term storage areas when not in use; (9) using a secured area to log in and aliquot samples; (10) ensuring samples are stored appropriately; and (11) documenting the disposal of samples, aliquots, and extracts. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.655. Marijuana inventory tracking system. (a) A marijuana testing 124 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 95 facility shall use an inventory tracking system as provided in 3 AAC 306.730 to ensure all marijuana transported to the marijuana testing facility’s premises is identified and tracked from the time the marijuana arrives at the testing facility to the use and destruction of the marijuana in testing, or disposal in compliance with 3 AAC 306.740. (b) When a marijuana testing facility completes any testing, use, or research, it shall immediately dispose of any sample received under this section. If a marijuana testing facility disposes of a sample received under this section, the testing facility shall document the disposal of the sample using its inventory control system. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.660. Failed materials, retests. (a) If a sample tested by a marijuana testing facility does not pass the required tests based on the standards set out in 3 AAC 306.645, the facility that provided the sample shall (1) dispose of the entire harvest batch or production lot from which the sample was taken; and (2) document the disposal of the sample using its marijuana inventory control system. (b) If a sample of marijuana fails a required test, any marijuana plant trim, leaf, and other usable material from the same plants automatically fails the required test. The board may approve a request to allow a batch of marijuana that fails a required test to be used to make a CO2 or solvent-based extract. After processing, the CO2 or solvent-based extract must pass all required tests. (c) If a marijuana cultivation facility or a marijuana product manufacturing facility 125 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 96 petitions for a re-test of marijuana or a marijuana product that failed a required test, the board may authorize a retest to validate the test results. The marijuana cultivation facility or a marijuana product manufacturing facility must pay all costs of a retest. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.665. Supplemental marijuana quality testing. (a) The board or director may at any time determine that the interests of the public require random supplemental testing of marijuana or a marijuana product. When the board or director requires random supplemental marijuana testing, the board or director will direct the marijuana cultivation facility that produced the marijuana, or the marijuana product manufacturing facility that manufactured the product, to submit a specified sample, batch, or packaged product to a designated marijuana testing facility. The material must be packaged in a manner that ensures the testing facility will be able to confirm that it has received and is testing the correct supplemental sample. (b) When a marijuana testing facility receives a sample for supplemental laboratory testing under this section, the marijuana testing facility shall (1) perform any required laboratory test the board requests; and (2) report its results to the board or director and the facility that provided the sample. (c) A marijuana testing facility that conducts laboratory testing under this section shall bill all costs directly to the marijuana cultivation facility or the marijuana product manufacturing facility that provided the samples for testing. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 126 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 97 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.670. Reporting, verification. (a) A marijuana testing facility must report the result of each required laboratory test directly into its marijuana inventory control system within twenty-four hours after the test is completed. A marijuana testing facility must provide the final report (1) to the facility that submitted the sample in a timely manner; and (2) to the director within 72 hours when results of tested samples exceed allowable levels. (b) A marijuana testing facility shall establish procedures to ensure that reported results are accurate, precise, and scientifically valid. To ensure reported results are valid, a marijuana testing facility must include in all final reports: (1) the name and location of the marijuana testing facility; (2) the unique sample identifier assigned by the testing facility; (3) the marijuana establishment or other person that submitted the testing sample; (4) the sample identifier provided by the person that submitted the testing sample; (5) the date the facility received the sample; (6) the chain of custody identifier; (7) the date of report; (8) the type of product tested; (9) the test results; (10) the units of measure; and 127 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 98 (11) any other information or qualifiers needed for interpretation of the test method and the results being reported, including any identified and documented discrepancy. (c) A marijuana testing facility may amend a final report for clerical purposes except that test results may not be amended. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.675. Records retention. A marijuana testing facility shall maintain the business records required under 3 AAC 306.755 for the period of time specified in that section. The books and records required under 3 AAC 306.755(a)(1) include: (1) test results; (2) quality control and quality assurance records; (3) standard operating procedures; (4) chain of custody records; (5) proficiency testing records; (6) analytical data to include printouts generated by the instrumentation; (7) accession numbers; (8) specimen type; (9) raw data of calibration standards and curves, controls and subject results; (10) final and amended reports; (11) acceptable reference range parameters; (12) identity of analyst; and (13) date of analysis. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 128 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 99 AS 17.38.070 AS 17.38.090 AS 17.38.900 Article 7. Operating Requirements for All Marijuana Establishments. Section 700. Marijuana handler permit 705. Licensed premises, alteration 710. Restricted access areas 715. Security alarm systems and lock standards 720. Video surveillance 725. Inspection of licensed premises 730. Marijuana inventory tracking system 735. Health and safety standards 740. Waste disposal 745. Standardized scales 750. Transportation 755. Business records 3 AAC 306.700. Marijuana handler permit. (a) A marijuana establishment and each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures, tests, or transports marijuana or a marijuana product, or who checks the identification of a consumer or visitor, shall obtain a marijuana handler permit from the board before being licensed or beginning employment at a marijuana establishment. (b) To obtain a marijuana handler permit, a person shall complete a marijuana handler permit education course approved by the board, pass a written test demonstrating an 129 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 100 understanding of the course material, and obtain a certificate of course completion from the course provider. An approved marijuana handler permit education course must cover at least the following topics: (1) AS 17.37, AS 17.38, and this chapter; (2) the effects of consumption of marijuana and marijuana products; (3) how to identify a person impaired by consumption of marijuana; (3) how to determine valid identification; (4) how to intervene to prevent unlawful marijuana consumption; and (5) the penalty for an unlawful act by a licensee, an employee, or an agent of a marijuana establishment. (c) To obtain a marijuana handler permit, a person who has completed the marijuana handler permit course described under (b) of this section shall present the course completion certificate, along with a report of criminal justice information obtained from the Department of Public Safety under AS 12.62.160 to the director. The director shall issue a marijuana handler permit card valid for three years from the date of issue. A person may renew a card issued under this section by passing a written test demonstrating an understanding of the course subjects. (d) A licensee, employee, or agent of a marijuana establishment shall keep the marijuana handler permit card described in (c) of this section in that person’s immediate possession when on the licensed premises of the retail marijuana store. (e) The board will review an approved marijuana handler permit education course at least once every three years, and may rescind approval of the course if the board finds that the education course contents are insufficient or inaccurate. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 130 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 101 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.705. Licensed premises, alteration. (a) A marijuana establishment license will be issued for a specific licensed premises, which is a place clearly designated in a license application and described by a line drawing submitted with the license application. The licensed premises must (1) have adequate space for its approved operations, including growing, manufacturing, processing, packaging, or storing marijuana or marijuana products; and (2) be located and constructed to facilitate cleaning, maintenance, and proper operation. (b) A marijuana establishment’s license must be posted in a conspicuous place within the licensed premises. (c) A holder of a marijuana establishment license may not alter the functional floor plan or reduce or expand the area of the licensed premises without first obtaining the director’s written approval. A marijuana establishment license holder seeking to change or modify the licensed premises shall submit a request for approval of the change on a form prescribed by the board, along with (1) the fee prescribed in 3 AAC 306.100; (2) a drawing showing the proposed change; (3) evidence that the proposed change conforms to any local restrictions; and (4) evidence that the licensee has obtained any applicable local building permit. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 131 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 102 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.710. Restricted access areas. (a) A marijuana establishment shall restrict access to any part of the licensed premises where marijuana or a marijuana product is grown, processed, tested, stored, or stocked. (b) Except as provided in 3 AAC 306.325 for a marijuana retail store, each entrance to a restricted access area must be marked by a sign that says “Restricted access area. Visitors must be escorted.” A marijuana establishment shall limit the number of visitors to not more than five visitors for each licensee, employee, or agent of the licensee who is actively engaged in supervising those visitors. (c) In a restricted access area, any licensee, employee, and agent of the marijuana establishment shall wear a current identification badge bearing the person’s photograph. A person under the age of 21 may not enter any restricted access area. Any visitor to the restricted area must (1) show identification as required in 3 AAC 306.350 to prove that person is not under the age of 21; (2) obtain a visitor identification badge before entering the restricted access area; and (3) be escorted at all times by a licensee, or an employee or an agent of the marijuana establishment. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 132 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 103 3 AAC 306.715. Security alarm systems and lock standards. (a) Each licensee, employee, or agent of a marijuana establishment shall display an identification badge issued by the marijuana establishment at all times when on the marijuana establishment’s licensed premises. (b) The licensed premises of a marijuana establishment must have (1) exterior lighting to facilitate surveillance; (2) a security alarm system on all exterior doors and windows; and (3) continuous video monitoring as provided in 3 AAC 306.720. (c) A marijuana establishment shall have policies and procedures that (1) are designed to prevent diversion of marijuana or marijuana product; (2) prevent loitering; (3) describe the use of any additional security device, such as a motion detector, pressure switch, and duress, panic, or hold-up alarm to enhance security of its licensed premises; and (4) describe the actions to be taken by a licensee, employee, or agent of the marijuana establishment when any automatic or electronic notification system alerts a local law enforcement agency of an unauthorized breach of security. (d) A marijuana establishment must use commercial grade, non-residential door locks on all exterior entry points to the licensed premises. Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.720. Video surveillance. (a) A marijuana establishment shall install and 133 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 104 maintain a video surveillance and camera recording system as provided in this section. The video system must cover (1) each restricted access area and each entrance to a restricted access area within the licensed premises; (2) each entrance to the exterior of the licensed premises; (3) each point-of-sale (POS) area. (b) At a marijuana establishment, a required video camera must be placed in a way that produces a clear view adequate to identify any individual inside the licensed premises, or within 20 feet of each entrance to the licensed premises. Both the interior and the exterior of each entrance to the facility must be recorded by a video camera. (c) Any area where marijuana is grown, cured, or manufactured, or where marijuana waste is destroyed, must have a camera placement in the room facing the primary entry door, and in adequate fixed positions, at a height which will provide a clear, unobstructed view of the regular activity without a sight blockage from lighting hoods, fixtures, or other equipment, in order to allow for the clear and certain identification of any person and activity in the area at all times. (d) Surveillance recording equipment and video surveillance records must be housed in a locked and secure area or in a lock box, cabinet, closet or other secure area that is accessible only to a marijuana establishment licensee or authorized employee, and to law enforcement personnel including an agent of the board. A marijuana establishment may use an offsite monitoring service and offsite storage of video surveillance records as long as security requirements at the offsite facility are at least as strict as onsite security requirements as described in this section. (e) Each surveillance recording must be preserved for a minimum of 40 days, in a format 134 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 105 that can be easily accessed for viewing. All recorded images must clearly and accurately display the time and date, and must be archived in a format that does not permit alteration of the recorded image, so that the images can readily be authenticated. After 40 days, a marijuana establishment may erase video recordings, unless the licensee knows or should know of any pending criminal, civil, or administrative investigation for which the video recording may contain relevant information. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.725. Inspection of licensed premises. (a) A marijuana establishment or an applicant for a marijuana establishment license under this chapter shall, upon request, make the licensed premises or the proposed licensed premises, including any place for storage, available for inspection by the director, an employee or agent of the board, or an officer charged with the enforcement of this chapter. The board or the director may also request a local fire protection agency or any other state agency with health and safety responsibilities to inspect licensed premises or proposed licensed premises. (b) Inspection under this section includes inspection of the premises, facilities, qualifications of personnel, methods of operation, business and financial records, marijuana inventory tracking system, policies, and purposes of any marijuana establishment and of any applicant for a marijuana establishment license. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 135 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 106 3 AAC 306.730. Marijuana inventory tracking system. (a) A marijuana establishment shall use a marijuana inventory tracking system capable of sharing information with the system the board implements to ensure all marijuana cultivated and sold in the state, and each marijuana product processed and sold in the state, is identified and tracked from the time the marijuana is propagated from seed or cutting, through transfer to another licensed marijuana establishment, or use in manufacturing a product, to a completed sale of marijuana or marijuana product, or disposal of the harvest batch of marijuana or production lot of marijuana product. (b) All marijuana delivered to a marijuana establishment must be weighed on a scale certified in compliance with 3 AAC 306.745. (Eff. ___/___ /____, Register ____) (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.735. Health and safety standards. (a) A marijuana establishment is subject to inspection by the local fire department, building inspector, or code enforcement officer to confirm that no health or safety concerns are present. (b) A marijuana establishment shall take all reasonable measures and precautions to ensure that (1) any person who has an illness, an open sore or infected wound, or other potential source of infection may not come in contact with marijuana or a marijuana product while the illness or source of infection persists; (2) the licensed premises have (A) adequate and readily accessible toilet facilities that are maintained in 136 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 107 good repair and sanitary condition; and (B) convenient hand-washing facilities with running water at a suitable temperature; the marijuana establishment shall require employees to wash or sanitize their hands, and must provide effective hand-cleaning, sanitizing preparations, and drying devices; (3) each person working in direct contact with marijuana or a marijuana product shall conform to good hygienic practices while on duty, including (A) maintaining adequate personal cleanliness; and (B) washing hands thoroughly in an adequate hand-washing area before starting work, after using toilet facilities, and at any other time when the person’s hands may have become soiled or contaminated; (4) litter, waste, and rubbish are properly removed; the waste disposal equipment must be maintained and adequate to (A) avoid contaminating any area where marijuana or any marijuana product is stored, displayed, or sold; and (B) prevent causing odors or attracting pests; (5) floors, walls, and ceilings must be constructed to allow adequate cleaning, and must be kept clean and in good repair; (6) adequate lighting is installed in any area where marijuana or a marijuana product is stored, displayed, or sold, and where any equipment or utensil is cleaned; (7) screening or other protection adequately protects against the entry of pests; (8) any building, fixture, and other facility is maintained in sanitary condition; (9) any toxic cleaning compound, sanitizing agent, and pesticide chemical must 137 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 108 be identified and stored in a safe manner to protect against contamination of marijuana or marijuana product and in compliance with any applicable local, state, or federal law; (10) adequate sanitation principles are used in any receiving, inspecting, transporting, and storing of marijuana or marijuana product; and (11) any marijuana or marijuana product must be held in a manner that prevents the growth of bacteria, microbes, or other undesirable microorganisms. (c) A marijuana establishment shall ensure that any marijuana or marijuana product that has been stored beyond its usable life, or was stored improperly, is not salvaged and returned to the marketplace; in this section, “stored improperly” means being exposed to extremes in temperature, humidity, smoke, fumes, pressure, or radiation due to a natural disaster, fire, accident, or equipment failure. (d) If a marijuana establishment does not have reliable information about the age or storage conditions of marijuana or a marijuana product in its possession, the marijuana establishment may salvage the marijuana only if: (1) a licensed marijuana testing facility determines from quality assurance testing that the marijuana or marijuana product meets all applicable standards of moisture, potency, and contaminants; (2) inspection of the premises where a disaster or accident occurred shows that the marijuana or marijuana product stored there was not adversely affected by the disaster or accident; and (3) the marijuana establishment maintains a record of the salvaged marijuana or marijuana product in its marijuana inventory tracking system, including the name, lot number and final disposition. (Eff. ___/___ /____, Register ____) 138 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 109 Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.740. Waste disposal. (a) A marijuana establishment shall store, manage, and dispose of any solid or liquid waste, including wastewater generated during marijuana cultivation production, processing, testing, or retail sales, in compliance with applicable federal, state, and local laws and regulations. (b) Marijuana waste must be rendered unusable for any purpose for which it was grown or produced before it leaves a marijuana establishment. Marijuana waste includes: (1) marijuana plant waste, including roots, stalks, leaves, and stems that have not been processed with solvent; (2) solid marijuana sample plant waste in the possession of a marijuana testing facility; and (3) other waste as determined by the board. (c) A marijuana establishment shall (1) give the board at least 3 days notice in the marijuana inventory tracking system required under 3 AAC 306.730 before making the waste unusable and disposing of it; except that the director may authorize immediate disposal on an emergency basis; and (2) keep a record of the final destination of marijuana waste made unusable. (d) Marijuana plant waste must be made unusable by grinding the marijuana plant waste and mixing it with at least an equal amount of other compostable or non-compostable materials. A marijuana establishment may use other methods to make marijuana waste unusable if the board approves the method in advance. Material that may be mixed with the marijuana waste 139 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 110 includes (1) compostable materials including food waste, yard waste, vegetable based grease or oils, or other wastes approved by the board when the mixed material can be used as compost feedstock or in another organic waste method such as an anaerobic digester with approval of any applicable local government entity; or (2) non-compostable materials including paper waste, cardboard waste, plastic waste, oil, or other wastes approved by the board when the mixed material may be delivered to a permitted solid waste facility, incinerator, or other facility with approval of any applicable local government entity. (e) When marijuana or a marijuana product is found by, or surrendered to, a law enforcement officer including an airport security officer, the officer may dispose of the marijuana or marijuana product as provided in this section or by any method that is allowed under any applicable local ordinance. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.745. Standardized scales. A marijuana establishment shall use certified scales in compliance with AS 45.75.080, the Alaska Weights and Measures Act. A marijuana establishment shall (1) maintain registration and inspection reports of certified scales; and (2) upon request by the board or the director, provide a copy of the registration and inspection reports of the certified scales to the board or the director for review. (Eff. ___/___ /____, Register ____) 140 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 111 Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 AS 17.38.084 3 AAC 306.750. Transportation. (a) A licensed marijuana establishment shall transport marijuana as follows: (1) a marijuana cultivation facility may transport marijuana to a marijuana cultivator’s broker, another marijuana cultivation facility, a marijuana product manufacturing facility, a marijuana testing facility, or a marijuana retail store; (2) a marijuana broker may transport marijuana to the broker’s own storage area, a marijuana product manufacturing facility, a marijuana testing facility, or a marijuana retail store; (3) a marijuana product manufacturing facility may transport a marijuana product to another marijuana product manufacturing facility, a marijuana testing facility, or a marijuana retail store; (4) a marijuana testing facility may transport marijuana or a marijuana product to the facility from which it received the marijuana or another marijuana testing facility; and (5) a marijuana retail store may transport marijuana or a marijuana product to another marijuana retail store. (b) A marijuana establishment from which a shipment of marijuana or marijuana product originates is responsible for preparing, packaging, and securing the marijuana or marijuana product during shipment, for recording the transfer in the marijuana inventory tracking system, and for preparing the transport manifest. Any individual transporting marijuana in compliance with this section shall have a marijuana handler permit required under 3 AAC 306.700. 141 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 112 (c) When any marijuana or marijuana product is transported, the marijuana establishment that originates the transport shall use the marijuana tracking system to record the type, amount and weight of marijuana or marijuana product being transported, the name of the transporter, the time of departure and expected delivery, and the make, model and license plate number of the transporting vehicle. A complete printed transport manifest on a form prescribed by the board must be kept with the marijuana or marijuana product at all times. (d) During transport, any marijuana or marijuana product must be in a sealed package or container in a locked, safe and secure storage compartment in the vehicle transporting the marijuana or marijuana product. The sealed package may not be opened during transport. Any vehicle transporting marijuana or marijuana product must travel directly from the shipping marijuana establishment to the receiving marijuana establishment, and must not make any unnecessary stops in between except to deliver or pick up marijuana or marijuana product at any other licensed marijuana establishment. (e) When a marijuana establishment receives marijuana or a marijuana product transported in compliance with this section, the recipient of the shipment shall use the marijuana inventory tracking system to report the type, amount, and weight of marijuana or marijuana product received. The licensed recipient shall refuse to accept any shipment of marijuana or marijuana product that is not accompanied by the transport manifest. (f) A marijuana establishment must keep records of all marijuana or marijuana product shipped from or received at that marijuana establishment as required under 3 AAC 306.755. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.087 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 142 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 113 AS 17.38.084 3 AAC 306.755. Business records. (a) A marijuana establishment shall maintain, in a format that is readily understood by a reasonably prudent business person, the following information: (1) all books and records necessary to fully account for each business transaction conducted under its license for the current year and three preceding calendar years; records for the last six months must be maintained on the marijuana establishment’s licensed premises; older records may be archived on or off premises; (2) a current employee list setting out the full name and marijuana handler permit number of each licensee, employee, and agent who works at the marijuana establishment; (3) the business contact information for vendors that maintain video surveillance systems and security alarm systems for the licensed premises; (4) records related to advertising and marketing; (5) a current diagram of the licensed premises including each restricted access area; (6) a log recording the name, and date and time of entry of each visitor permitted in a restricted access area; (7) all records normally retained for tax purposes; (8) accurate and comprehensive inventory tracking records that account for all marijuana inventory activity from seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a consumer, to another marijuana establishment, or destroyed; and (9) transportation records for marijuana and marijuana product as required under 3 AAC 306.750(f). 143 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 114 (b) A marijuana establishment shall provide any record required to be kept on the licensed premises to an employee of the board upon request. Any record kept off premises must be provided to the board’s employees within three business days after a request for the record. (c) A marijuana establishment is required to exercise due diligence in preserving and maintaining all required records. Loss of records and data, including electronically maintained records, will not be considered an excuse for a violation of this rule. Failure to retain records required under this section may be interpreted by the board as a license violation affecting public safety. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 Article 8. Enforcement and Civil Penalties. Section 800. Inspection and investigation 805. Report or notice of violation 810. Suspension or revocation of license 815. Suspension or revocation based on act of employee 820. Procedure for action on license suspension or revocation 825. Summary suspension to protect public health, safety, or welfare. 830. Seizure of marijuana or marijuana product 835. Hearing 840. Civil fines 144 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 115 845. Appeal 850. Surrender or destruction of license 3 AAC 306.800. Inspection and investigation. (a) The director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, may (1) inspect the licensed premises of any marijuana establishment, including any marijuana and marijuana product on the premises, equipment used in cultivating, processing, testing, or storing marijuana, the marijuana establishment’s inventory tracking system, business records, and computers, at any reasonable time and in a reasonable manner; (2) issue a report or notice as provided in 3 AAC 306.805; and (3) as authorized under AS 17.38.085, exercise peace officer powers and take any other action the director determines is necessary. (b) A marijuana establishment, and any licensee, employee, or agent in charge shall cooperate with the director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, to enforce the laws related to marijuana, including (1) permitting entry upon and inspection of the licensed premises; and (2) providing access to business records at reasonable times when requested by the director, an enforcement agent, an employee of the board, or a peace officer. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.805. Report or notice of violation. (a) The director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, may issue an 145 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 116 inspection report, an advisory report, or a notice of violation before taking action to suspend or revoke a marijuana establishment license. (b) An inspection report documents an investigator’s inspection of licensed premises. An inspection report must be prepared on a form the board prescribes and include information prescribed by statute, regulation, or the board. (c) The director, an enforcement agent, an employee of the board, or a peace officer may issue an advisory notice when an incident occurs or a defect is noted that could result in a violation of a statute, regulation, or municipal ordinance. An advisory notice may result from an inspection report, but is not a basis for administrative action unless the incident or defect continues or is not corrected. (d) The director, an enforcement agent, an employee of the board, or a peace officer may issue a notice of violation when an inspection report or other credible information shows a marijuana establishment is in violation of AS 17.38, this chapter, or other law relating to marijuana. The notice of violation must be delivered to the marijuana establishment at its licensed premises, and to the board. The notice must describe any violation, and cite the applicable statute, regulation, or order of the board. A marijuana establishment that receives a notice of violation may respond to the notice orally or in writing, and may, within ten days after receiving the notice, request an opportunity to appear before the board. A notice of violation may be the basis of a proceeding to suspend or revoke a marijuana establishment’s license as provided under 3 AAC 306.810. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 146 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 117 3 AAC 306.810. Suspension or revocation of license. (a) The board will suspend or revoke a marijuana establishment license issued under this chapter if any licensee is convicted of a felony, or if the board becomes aware that a licensee did not disclose a previous felony conviction. (b) The board may suspend or revoke a license issued under this chapter, refuse to renew a license, or impose a civil fine, if the board finds that a licensee for any marijuana establishment (1) misrepresented a material fact on an application for a marijuana establishment license, or an affidavit, report, or signed statement under AS 17.38 or this chapter; or (2) is following any practice or procedure that is contrary to the best interests of the public, including (A) using any process not approved by the board for extracting or manufacturing marijuana concentrate or products; or (B) selling or distributing any marijuana concentrate or product that has not been approved by the board; (3) failed, within a reasonable time after receiving a notice of violation from the director, to correct any defect that is the subject of the notice of violation of (A) AS 17.38 or this chapter; (B) a condition or restriction imposed by the board; or (C) other applicable law; (4) knowingly allowed an employee or agent to violate AS 17.38, this chapter, or a condition or restriction imposed by the board; (5) failed to comply with any applicable public health, fire, safety, or tax law or regulation in the state; or 147 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 118 (6) used the licensed premises for any illegal purpose including gambling, possession or use of narcotics other than marijuana, prostitution, or sex trafficking. (c) A local government may notify the director if it obtains evidence that a marijuana establishment has violated a provision of AS 17.38, this chapter, or a condition the board has imposed on the marijuana establishment. Unless the board finds that the local government’s notice is arbitrary, capricious, and unreasonable, the director will prepare the notice and supporting evidence as an accusation against the marijuana establishment under AS 44.62.360, and conduct proceedings to resolve the matter as described under 3 AAC 306.820. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.815. Suspension or revocation based on act of employee. If , in a proceeding to suspend or revoke a marijuana establishment license under 3 AAC 306.810 and 3 AAC 306.820, evidence shows that an employee or agent of a licensed marijuana establishment was responsible for an act that would justify suspension or revocation of the marijuana establishment’s license if committed by a licensee, the board may find that licensee knowingly allowed the act if (1) the licensee was physically present when the violation occurred, and knew or should have known, the violation was occurring and took no action to stop it; (2) the licensee failed to adequately supervise the agent or employee; (3) the licensee failed to adequately train the agent or employee in the requirements of AS 17.38 and this chapter relating to marijuana; or 148 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 119 (4) the licensee was reckless or careless in hiring the agent or employee. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.820. Procedure for action on license suspension or revocation. A proceeding to suspend or revoke a license must be initiated by service of an accusation on the marijuana establishment in compliance with AS 44.62.360 and AS 44.62.380, and conducted in compliance with AS 44.62.330 – AS 44.62.630. The accusation must be served at the address of the licensed premises, or at the address of the licensee who is responsible for management and compliance with laws as listed in the marijuana establishment license application in compliance with 3 AAC 306.020(b)(5). The marijuana establishment is entitled to a hearing as provided under AS 44.62.390. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.825. Summary suspension to protect public health, safety, or welfare. (a) If the director finds that a person holding a marijuana establishment license has acted and appears to be continuing to act in a way that constitutes an immediate threat to the public health, safety or welfare, the director may issue an order immediately suspending the license of that person, and ordering an immediate stop to the activity that constitutes the threat to the public health, safety, or welfare. (b) When the director issues a summary suspension under this section, the director shall 149 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 120 immediately give the marijuana establishment subject to the summary suspension order notice of the reasons for the summary suspension, and of the time and place for an expedited hearing before the board. Unless the marijuana establishment subject to the summary suspension order requests a delay, the hearing will be held within five days after the director gives notice of the reasons for the summary suspension and the scheduled hearing. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.830. Seizure of marijuana or marijuana product. (a) The director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, may seize marijuana or any marijuana product from a licensed marijuana establishment if the marijuana establishment has (1) any marijuana or marijuana product not properly logged into the marijuana establishment’s marijuana inventory tracking system; (2) any adulterated marijuana food or drink product forbidden under 3 AAC 306.510(a)(4); or (3) any marijuana or marijuana product that is not properly packaged and labeled as provided in 3 AAC 306.465 and 3 AAC 306.470 or 3 AAC 306.565 and 3 AAC 306.570. (b) If the director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, seizes marijuana or a marijuana product under this section, the director shall update the marijuana inventory control tracking system to reflect the seizure and ensure that the seized items are stored in a reasonable manner. The director shalltimmediately 150 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 121 give the marijuana establishment from which the marijuana or marijuana product was seized notice of the reasons for the seizure and the time and place of a hearing before the board. Unless the marijuana establishment from which the marijuana or marijuana product was seized requests a delay, the hearing will be held within ten days after the director gives notice of the reasons for seizure and the scheduled hearing. If the seizure occurs in connection with a summary suspension under 3 AAC 306.825, the hearing will be combined with a hearing on the summary suspension. (c) If the marijuana establishment from which the marijuana or marijuana product was seized does not request or participate in a hearing under this section, or if, after a hearing the board finds that seizure of the marijuana or marijuana product was justified, the marijuana or marijuana product will be destroyed by burning, crushing, or mixing with other material to make the marijuana or marijuana product unusable as provided in 3 AAC 306.740. (d) If a seizure under this section is of marijuana plants in place in a licensed standard or limited marijuana cultivation facility, the seizure order may direct the cultivation facility to continue care of the plants until the hearing, but prohibit any transfer, sale, or other commercial activity related to the plants. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.835. Hearing. (a) Except as provided in 3 AAC 306.825 or 3 AAC 306.830, any person aggrieved by an action of the director, an enforcement agent, or an employee of the board, may request a hearing in compliance with AS 44.62.390 by filing a notice of defense within 15 days after receiving a written accusation. Failure to file a notice of 151 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 122 defense as provided in this section constitutes a waiver of the right to a hearing. (b) The Office of Administrative Hearings will conduct the hearing in compliance with due process, the Alaska Administrative Procedure Act, AS 44.62.330 – AS 44.62.630, and the applicable regulations adopted by the Office of Administrative Hearings at 2 AAC 64.100 - 2 AAC 64.990. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.840. Civil fines. (a) The board may, in addition to any other penalties imposed under this title, impose a civil fine on a marijuana establishment, licensee, or person that the board determines has violated a provision of AS 17.38 or this chapter. (b) In a proceeding under 3 AAC 306.810 – 3 AAC 306.830, the board may impose a civil fine, not to exceed the greater of (1) an amount that is three times the monetary gain realized by the marijuana establishment, licensee, or person as a result of the violation, as determined by the board; (2) $10,000 for the first violation; (3) $30,000 for the second violation; or (4) $50,000 for the third or subsequent violation. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.845. Appeal. (a) An aggrieved party may appeal to the board regarding any 152 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 123 action of the director, an enforcement agent, or an employee of the board charged with enforcing AS 17.38 or this chapter, including suspending or revoking a license, seizing marijuana or a marijuana product, or imposing a civil fine. (b) A person aggrieved by a final decision of the board suspending or revoking a license under this chapter, or imposing a civil fine may appeal to the superior court under AS 44.62.560. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 3 AAC 306.850. Surrender or destruction of license. A license issued under this chapter must be surrendered to the director, an enforcement agent, or an employee of the board on demand if the director or board so orders. A license issued under this chapter must be surrendered within 10 days after the marijuana establishment loses or vacates the licensed premises. If a license is destroyed, the marijuana establishment shall promptly notify the board. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.085 AS 17.38.100 AS 17.38.070 AS 17.38.087 AS 17.38.900 AS 17.38.084 AS 17.38.090 Article 9. General Provisions. Section 900. Marijuana clubs prohibited 905. Public records 153 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 124 910. Refusal to sell marijuana 915. Exercise of authority 920. Death of licensee 990. Definitions 3 AAC 306.900. Marijuana clubs prohibited. (a) A person may not maintain a place where marijuana or marijuana products are received or kept, or to which marijuana or marijuana products are brought for consumption by the public or by members of a club, association, or corporation unless the person is authorized to do so under this title. (b) A person may not maintain, operate, or lease premises for the purpose of providing a place for consuming marijuana or marijuana products for consideration by members of the public or other persons, unless the person is authorized to do so under this title. (c) In this section, "consideration" includes a membership fee, a cover charge, the sale of food, ice, mixers, or other drinks, or the furnishing of marijuana accessories for use in the consumption of marijuana or any marijuana product. (d) A person violating this section is subject to a civil fine as provided in 3 AAC 306.840. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.905. Public records. Marijuana establishment applications are public records. The board may, at the request of any applicant, designate materials confidential if they (1) contain proprietary information including trade secrets; or (2) are required to be kept confidential by any federal or state law or regulation. (Eff. ___/___ /____, Register ____) 154 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 125 Authority: AS 17.38.010 AS 17.38.090 AS 17.38.900 AS 17.38.070 AS 17.38.100 AS 40.25.110 AS 17.38.084 3 AAC 306.910. Refusal to sell marijuana. Nothing in this chapter prohibits a licensee from refusing to sell marijuana or marijuana products to any person unless that refusal is a violation of AS 18.80.210. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.915. Exercise of authority. Until a marijuana establishment surrenders its license to the board, and so long as business is conducted under the license on the licensed premises, the person holding the license, whether an individual, a partnership, a limited liability company, a corporation, or a local government, is responsible and liable for the conduct of the business. Any individual exercising actual authority over the conduct of business on the licensed premises must be the holder of the marijuana establishment license, or an agent or employee of that person unless the board has approved a transfer of the license to a different person. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.920. Death of licensee. (a) If an individual who is the sole licensee of a marijuana establishment dies, the marijuana establishment shall cease operation. A personal representative appointed by the superior court for the estate of the deceased licensee may submit to the director a written request to reopen the business, along with a copy of the court order appointing the personal representative. If the licensed marijuana establishment is in good 155 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 126 standing, and the personal representative is not a person prohibited from holding a marijuana establishment by AS 17.38.100(i), the director shall grant permission to the personal representative to operate the business on the licensed premises subject to (b) of this section. In this section, “good standing” means the marijuana establishment (1) has a valid current license; (2) has paid all fees due under this chapter, and all local taxes due; and (3) has no unresolved suspension or revocation proceedings against it. (b) A personal representative authorized to operate a marijuana establishment under (a) of this section must submit an application for a transfer of ownership to another person in compliance with 3 AAC 306.045 within 90 days after obtaining the director’s approval to operate. The board may extend the time allowed in this section for another 90 days if the personal representative requests the additional time. (c) This section does not authorize the transfer of a marijuana establishment license unless the board approves the personal representative’s application for transfer of license to another person. (Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.084 AS 17.38.100 AS 17.38.070 AS 17.38.090 AS 17.38.900 3 AAC 306.990. Definitions. (a) In AS 17.38 and this chapter, (1) "affiliate" means a person that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, a partnership, limited liability company, or corporation subject to this chapter; (2) “assisting” does not include (A) using, displaying, purchasing, or transporting marijuana in excess of 156 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 127 the amount allowed in AS 17.38.020; (B) possessing, growing, processing, or transporting marijuana plants in excess of the number allowed in AS 17.38.020; (C) growing marijuana plants for another person in a place other than (i) that other person's primary residence; or (ii) a garage, shed, or similar place under the other person's control; (3) "delivering" (A) means handing to a person who purchases the product on licensed premises only; (B) does not include transferring or transporting to a consumer off licensed premises; (4) “flowering” means a marijuana plant that has visible crystals, buds, or flowers, or for which the exposure to light is scheduled with the intent to produce crystals, buds, or flowers; (5) “immature” means a marijuana plant with no visible crystals, buds, or flowers, and in which the exposure to light is scheduled with the intent to prevent formation of crystals, buds, or flowers; (6) “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 number allowed in AS 17.38.020; 157 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 128 (C) growing marijuana plants for another person in a place other than (i) that other person's primary residence; or (ii) a garage, shed, or similar place under the other person’s control; (7) “possess” means having physical possession or control over property; (8) “registration” means “licensure,” or “license;” (9) “transport” or “transfer” means to deliver between licensed marijuana establishments as provided in 3 AAC 306.750. (b) In this chapter, unless the context requires otherwise, (1) "adulterated food or drink product" (A ) means a product that is intended to be consumed orally and that existed without marijuana in a form ready for consumption before marijuana was added by any process; (B) does not include raw ingredients that are combined with marijuana in a manufacturing process; (2) “agent” (A) means a representative who is authorized to act for a licensee, the board, or the director; (B) includes a contractor or subcontractor; (3) “batch” or ”harvest batch” means a specifically identified quantity of plant trim, leaf, and other usable product from marijuana plants that are uniform in strain, cultivated in one place and under the same conditions, using the same medium and agricultural chemicals including pesticides and fungicides, and harvested at the same time; 158 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 129 (4) “bud and flower” means the hairy, sticky, or crystal-covered parts of mature female marijuana plants generally harvested for their high potency content; (5) “business day” means a day other than a Saturday, Sunday, or a state holiday; (6) “CBN” means cannabinol; (7) “CBD” means cannabidiol; (8) “CBDA” means CBD Acid; (9) “clones” or “cuttings” means small starter plants (A) shorter than eight inches tall; and (B) used to propagate marijuana plants; (10) “compensation” (A) means money, bartered objects or services, or anything else of value, whether given as payment or voluntarily as a donation, when accepted by a person who gives, distributes, or delivers marijuana to another; (B) includes a cover charge, a delivery charge, and a packaging charge; (11) “concentrate” or "marijuana concentrate" means resin, oil, wax, or any other substance produced by extracting or isolating cannabinoids, THC, or other components from a marijuana plant or from materials harvested from a marijuana plant; (12) “consumer” (A) means an individual who purchases and uses marijuana or a marijuana product; and (B) does not include any marijuana establishment that re-sells marijuana or incorporates marijuana into a manufactured product; (13) “contaminant” means one or more of the following: 159 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 130 (A) harmful microbials, including Escherichia coli (E. coli). or Salmonella species; (B) residual solvents; (C) poisons or toxins; (D) harmful chemicals, including pesticides; (E) dangerous molds, mildew, or filth; (14) “controlling interest” means ownership or control of (A) 50 percent or more of the ownership interest or voting shares of a corporation; or (B) less than 50 percent if a person and family members jointly exert actual control as demonstrated by (i) making decisions for the corporation without independent participation of other owners; (ii) exercising day-to-day control over the corporation's affairs; (iii) disregarding formal legal requirements; (iv) using corporation funds for personal expenses or investments, or intermingling corporation finances with personal finances; or (v) taking other actions that indicate the corporation is a mere instrumentality of the individual; (15) “distribute” means spread out or pass out among several or many members of a group; (16) "edible" and "edible marijuana product" (A) means a marijuana product that is intended to be consumed orally, 160 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 131 whether as food or drink; (B) does not include an adulterated food or drink product; (17) “extraction” or “marijuana extraction” means production of marijuana concentrate by any water-based, food-based, or solvent-based method; (18) “homogenous” means a component or quality, such as THC, is spread evenly throughout the product, or can be found in equal amounts in each part of a multi-serving unit; (19) “individual” means a natural person; (20) “in-house testing” (A) means laboratory testing as provided in 3 AAC 306.635; (B) does not include consumption of any marijuana or marijuana product on the licensed premises; (20) "licensed" (A) means holding a current and valid license that the board has issued under this chapter; (B) does not include holding a formerly valid license that has expired or that the board has suspended or revoked; (21) “licensee” means each individual identified in 3 AAC 306.020 who must be listed in an application for a marijuana establishment license under this chapter; (22) “licensed premises” means any or all designated portions of a building or structure, or rooms or enclosures in the building or structure, at the specific address for which a marijuana establishment license is issued, and used, controlled, or operated by the marijuana establishment to carry out the business for which it is licensed; 161 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 132 (23) “lot” or “production lot” means a group of marijuana products that were prepared at the same time from the same batch of marijuana, using the same recipe or process; (24) "marijuana" has the meaning given in AS 17.38.900; (25) "marijuana cultivation facility'' has the meaning given in AS 17.38.900; (26) “marijuana plant” means a living organism of the genus Cannabis capable of absorbing water and inorganic substances through its roots, and synthesizing nutrients in its leaves by photosynthesis; (27) "marijuana product" has the meaning given in AS 17.38.900; (28) "marijuana product manufacturing facility" has the meaning given in AS 17.38.900; (29) “peace officer” has the meaning given in AS 01.10.060; (30) “person” has the meaning given in AS 01.10.060; (31) “process” or “processing” means harvesting, curing, drying, trimming of a marijuana plant; (32) “propagate” means to cause a marijuana plant to grow by planting clones or cuttings, and nurturing them into viable plants up to 8 inches in height; (33) “recreation or youth center” means a building, structure, athletic playing field, or playground (A) run or created by a local government or the state to provide athletic, recreational, or leisure activities for minors; or (B) operated by a public or private organization licensed to provide shelter, training, or guidance for minors; (34) "retail marijuana store" has the meaning given in AS 17.38.900; 162 Register , 2016 COMMERCE, COMMUNITY, AND EC. DEV. 10/1/2015 133 (35) "square feet under cultivation" (A) means an area of the licensed premises of a standard or limited marijuana cultivation facility that is used for growing marijuana, measured from the perimeter of the floor or growing space for marijuana; (B) does not include a processing or storage area, an equipment storage area, an office, a hallway, or another area, if that area is not used for growing marijuana; (36) “THC” means tetrahydrocannabinol, the main psychoactive substance found in marijuana; (37) “THCA” means THC Acid; (38) “transaction” means one single occurrence in which marijuana or a marijuana product not exceeding the limits set out in 3 AAC 306.355 is passed from a licensed marijuana establishment to another person. Eff. ___/___ /____, Register ____) Authority: AS 17.38.010 AS 17.38.070 AS 17.38.084 AS 17.38.090 AS 17.38.100 AS 17.38.900 163