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2017-03-16 Work Session
Page Kodiak Island Borough Assembly Work Session Thursday, March 16, 2017, 6:30 p.m. Borough Conference Room Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 3-32 a. Otmeloi Way Reconstruction Project Otmeloi Way Reconstruction Prosect - Pdf 33-138 b. Review Of Proposed Changes To Titles 3 And 5 Relating To The Regulation Of Marijuana Businesses Marijuana Reqs Title 3 and 5 - Pdf 139-155 C. Discussion Of Resolution No. FY2017-35 Urging The Legislature To Adopt House Concurrent Resolution No. 8 To Maintain The Kodiak Seafood And Marine Science Center As An Important Resource In The State Resolution No. FY2017-35 KSMSC - Pdf 156-158 d. Discussion Of A Complaint Based System nA Complaint Based System Discussion - Pdf 3. PACKET REVIEW NEW BUSINESS CONTRACTS Contract No. FY2014-26B Amendment #2 To Contract No. FY2014-26 Professional Services Agreement With McCarty and Associates for Fisheries Analyst Consulting And Related Services (Joint Contract Of The Kodiak Island Borough and City of Kodiak With McCarty and Associates of Juneau, Alaska). Resolution No. FY2017-33 Advocating For the Establishment Of Consistent Communication Between The Kodiak Island Borough And The Kodiak Island Borough Board of Education For The Purposes Of Effective Governance Of Issues Such As, But Not Limited To, In -Kind Services, Facilities Upkeep And Maintenance, And Various Budgetary Items. Visit our website at www.facebook.com/Kodiakislandborough © @KodiakBorough www.kodiakak.us Page 1 of 158 Resolution No. FY2017-35 Urging The Legislature To Adopt House Concurrent Resolution No. 8 To Maintain The Kodiak Seafood And Marine Science Center As An Important Resource In The State. ORDINANCE FOR INTRODUCTION *Ordinance No. FY2017-28 Enacting A New Kodiak Island Borough Code Section 5.02.005, Local Regulatory Authority, To Designate The Borough Assembly As The Local Regulatory Authority For The Kodiak Island Borough, Pursuant To AS 17.38.210. OTHER ITEMS Appointment To The Prince William Sound Regional Citizens Council Kodiak Village Mayors Association Seat (Ms. Melissa Berns). Confirmation of the Assembly Appointments to the Citizens Equalization (Ms. Carrie Morton and Ms. Cheryl McNeil). EXECUTIVE SESSION Strategies In Negotiating The Hospital Lease. 4. MANAGER'S COMMENTS 5. CLERK'S COMMENTS 6. MAYOR'S COMMENTS 7. ASSEMBLY MEMBERS COMMENTS Advisory Board of Visit our website at www.facebook.com/Kodiakislandborough © @KodiakBorough www.kodiakak.us Page 2 of 158 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT MARCH 16. 2017 ASSEMBLY WORK SESSION SUBJECT: Otmeloi Way Reconstruction Project ORIGINATOR: Sara Mason RECOMMENDATION: Staff is requesting direction on how to proceed. DISCUSSION: On January 10, 2017, Borough staff held a public meeting at Bayside Fire Department to discuss DOT&PF's Otmeloi Way Reconstruction Project. Staff prepared a meeting summary memo on January 18th. On January 27, staff was able to discuss the meeting and the memo with the DOT&PF project manager. An additional memo dated February 9th has been provided as a summary of the discussion on January 27th. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 3 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #2. a. Page 4 of 158 Otmeloi Way Reconstruction Project Kodiak Island Borough Community Development Department ,�. 710 Mill Bay Road '- Kodiak, Alaska 99615 Phone(907)486-9363 Fax(907)486-9396 www.kodiakak.us Memorandum Date: February 9, 2017 To: Borough Mayor and Assembly Cc: Borough Manager From: Community Development Director RE: Summary Otmeloi Way Reconstruction Project Discussion With DOT&PF on January 28, 2017 As stated in a memo dated January 28, 2017, several questions and concerns were raised by the meeting's participants. These questions are presented again below. After several attempts at contacting one another, DOT&PF's project manager and the CDD director were able to spend several hours discussing this project via telephone on Januar 27, 2017. Responses to the community's questions and concerns are as follows -r.: 1) Can design waivers be requested for vertical site distancelgeometry to lessen impacts to property owners (e.g. eliminate the need for retaining walls or steeper driveways)? Given that this site does not have exceptional circumstances such as the presence of historic buildings, endangered species, etc. DOT&PF does not feel that design waivers from federal standards are warranted. 2) Can the project focus more on improving the intersections at Mallard Way and Peninsula Drive? DOT&PF was puzzled by this question. The project intends to address some issues at Peninsula Way. However, from a traffic and safety engineering perspective, the issues at this intersection have much more to do with vertical site distance than horizontal site distance. For this reason, DOT&PF is modifying the elevation of a portion of Otmelei Way between Monashka Bay Road and "Mom remmtsn are pmaphmud and we not vnbatim responses from DOT&PF. Page 4 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #2. a. Page 5 of 158 Otmeloi Way Reconstruction Project Peninsula Drive that should enhance the site distance in this area. More significant reductions in elevation variation were considered here. But, given the selected design speed of 25 MPH and the potentially significant impacts to property owners, only moderate elevation changes are being made. At Mallard Way, appropriate upgrades will be made to ensure optimal conditions for users of the roadway and the multi -use path. 3) Are there additional traffic calming measures that can be implemented to further enhance safety? In addition to the narrowing of the travel lanes to 11 feet, DOT&PF will be installing crosswalks, school zones signs, school zone lights, and multiple speed limit signs. 4) Can the road be moved into the existing right-of-way? The answer to this question is yes". Moving the roadway from its current location and placing it within the right-of-way is possible. However, even with the driving surface placed squarely within the existing fight -of -way, a portion of the toe slope will still be on the property at 3653 Otmeloi Way. Additionally, existing driveway access for the three properties across the street will need to be moved—likely resulting in the creation of additional right-of-way or access easements—and a large retaining wall will need to be built. Due to the additional right-of-way acquisition and size of the retaining wall, project costs will increase. One benefit to moving the road would be increased site distance (though it should be noted that the currently proposed site distances meet FHWA standards for a 25 MPH design speed). A second benefit would be that the owners of 3653 would have increased use of their property, as the road currently encroaches into their front yard. DOT&PF's currently proposed alternative identities a portion of 3653 Otmeloi Way's front yard to be acquired through the right-of-way purchasing process. 5) Organic matter beneath the existing roadway should be removed before a new roadway is constructed. DOT&PF indicated that Service Area No. 1 had shared this concern in the past. DOT&PF took this into consideration and had additional sites along the roadway drilled to identify the extent of the presence of organics. 6) A 4 foot base and 3 feet of asphalt was suggested by a representative of Road Service Area No. 1. DOT&PF stated that this request far surpasses the federal guidelines for roadway construction. (For some perspective: the pavement at Ted Stevens Anchorage International Airport is not this thick.) 7) A Kodiak Electric Association Board Member is interested in the potential light configuration and technology that may be used to provide energy efficiency and cost savings. Page 5 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #2.a. Page 6 of 158 Otmeloi Way Reconstruction Project The project manager will be including LED -type lighting in the design to provide both energy efficiency and cost savings, as well as to minimize light pollution. DOT&PF was amenable to limiting lighting to intersections along the corridor. After the public meeting, two property owners came to CDD to talk to the director about the project. Both reiterated their desire to see the road moved into the dedicated right- of-way and both were interested in the idea of moving the proposed multi -use path to the south side of the road. When asked about the possibility of moving the multi -use path, DOT&PF shared the following: Impacts to properties owners on the north side of Otmeloi Way would increase due to slope stabilization issues. ADA requirements that the State must meet would make this switch more difficult as well. Page 6 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #2.a. Page 7 of 158 Otmeloi Way Reconstruction Project Kodiak Island Borough Community Development Department 710 Mill Bay Road ._ A.. Kodiak, Alaska 99615 -`J Phone (907)486-9363 Fax(907)486-9396 _151 w .kodiakak.us Memorandum Date: January 18, 2017 To: Borough Mayor and Assembly Cc: Borough Manager From: Community Development Director RE: Olmeloi Way Reconstruction Project Public Meeting Summary On January 10, 2017 Community Development Department staff held a public meeting at Bayside Fire Department to discuss the Olmeloi Way Reconstruction Project. Twenty people attended the meeting, which began at 6:30 p.m. and ended at approximately 9:30 p.m. The goals of the meeting were to: • Present information on where ADOTBPF is in the project development process • Solicit feedback from community members on the pros and cons of the most feasible alternatives • Build consensus and develop a unified voice that the Borough can use in guiding the project forward in partnership with ADOTBPF The first goal was mel through the use of a PowerPoint presentation, which is attached to this memo. The second and third goals were met through the discussion following the presentation. The group did not need to go through each alternative, as a significant number of community members were already in agreeance on many of the key issues, such as the design speed, the need for non -motorized facilities, and the need for additional infrastructure to improve safety along the corridor. Consensus was gained on the following: • The roadway should be paved and the project is a priority for the community. • A design speed of 25 MPH is appropriate. • A non -motorized facility is needed in the corridor. • Lighting for the corridor should be limited to intersections. Collectively, the group had the following questions/concerns: • Can design waivers be requested for vertical site distancelgeometry to lessen Impacts to property owners (e.g. eliminate the need for retaining walls or steeper driveways)? Page 7 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #2. a. Page 8 of 158 Otmeloi Way Reconstruction Project • Can the project focus more on improving the intersections at Mallard Way and Peninsula Drive? • Are there additional traffic calming measures that can be implemented to further enhance safely? • Can the road be moved into the existing right-of-way? In addition, the following was mentioned by individual community members: • Organic matter beneath the existing roadway should be removed before a new roadway is constructed. • A 4 fool base and 3 feet of asphalt was suggested by a representative of Road Service Area #1. • A Kodiak Electric Association Board Member is interested in the potential light configuration and technology that may be used to provide energy efficiency and cost savings. Finally, the community members present believed very strongly that enhanced collaboration between project stakeholders will be key to the project's success and will make overcoming project challenges much easier. Related to this, the group voiced agreement that having a designated liaison in the Borough's office would be helpful to the community. The Borough will have two persons fulfilling this role: Michael Powers, Borough Manager, and Sara Mason, Community Development Director. Staff informed the group that this summary of the discussion would be shared with the Borough Assembly, as well as project staff from ADOTBPF, and that additional meetings/hearings/work sessions may be scheduled based on direction from the Borough Assembly. Page 8 of 158 Otmeloi Way Reconstruction Project F- U r. LU O Z O F- ° (,) Z FL O N J Z V LU U < O � < V O LU m cl:� AGENDA ITEM #2.a. Page 10 of 1 b Otmeloi Way Reconstruction Project AGENDA ITEM #2.a. Page 11 of 158 Otmeloi Way Reconstruction Project N. ^3 W � • ` O / } L N• aJ i s s O ai 3 3 x a) a) • � s s s s Page 11 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #2.a. 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Page 31 of 158 Otmeloi Way Reconstruction Project LA d o a� cJ 0)c� CD E � S m CO ,p O 7 L aLL n d 3 � � n O � d CLy N q C I N 0 o Vi C *� E D C i cn y cin f11 o `D U N r Ocr � N t0 O T O m a� � 3 O' w z 0 in U o ♦ 7^� IL y6 G \ > Page 31 of 158 Otmeloi Way Reconstruction Project c � Page 31 of 158 Otmeloi Way Reconstruction Project AGENDA ITEM #.a Page amel e Way Reconstruction Project w ) � \ @ f $ » CU y k � � � � w § / w/d a \ a A / � f2 » f kK � a)\ \ �\ �- k� k q . /LL /§ 0 OWJ0 a. gr£ e�E 2§� )� �Q ƒ� sCM/ k\ § Page amel e Way Reconstruction Project w ) � \ @ f $ » y k � � � � w § / w/d a \ a A / � » f � a)\ \ `°~ �- k q . @ of 158 AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT MARCH 16. 2017 ASSEMBLY WORK SESSION `r SUBJECT: Review Of Proposed Changes To Titles 3 And 5 Relating To The Regulation Of Marijuana Businesses ORIGINATOR: Sara Mason RECOMMENDATION: Provide staff with recommended changes. DISCUSSION: Ordinance No. FY2017-27 includes changes to Titles 3, 5, and 17 in order to regulate marijuana businesses in the Kodiak Island Borough. The Planning & Zoning Commission is currently conducting its review of the Title 17 changes. This work session item is being presented so the Assembly may concurrently begin its review of the proposed changes to Title 3 and 5. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION Kodiak Island Borough Page 33 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 34 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 1 Introduced by: 2 Drafted by: CDD Director 3 Introduced on: 4 Public Hearing Date: 5 Adopted on: 6 7 KODIAK ISLAND BOROUGH 8 ORDINANCE NO. FY2017-27 9 10 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING I1 KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, TITLE 5 BUSINESS 12 LICENSES AND REGULATIONS, AND TITLE 17 ZONING TO PROVIDE FOR 13 REGULATIONS RELATING TO MARIJUANA BUSINESSES 14 15 WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has 16 provided for the legalization of various marijuana -related activities on a specific timeline; and 17 18 WHEREAS, AS 17.38.110 provides for local government control not in conflict with state law; 19 and 20 21 WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 22 17.38.110; and 23 24 WHEREAS, the Kodiak Island Borough formed a Marijuana Task Force through the adoption 25 of Kodiak Island Borough Resolution No. FY2016-31; and 26 27 WHEREAS, the Marijuana Task Force developed recommendations for regulating marijuana 28 businesses in the Kodiak Island Borough; and 29 30 WHEREAS, in accordance with AS 29.40.020 the Planning and Zoning Commission 31 discussed the proposed changes to Title 17 (Zoning) at work sessions, regular meetings, or 32 special meetings on February 8, 2017, February 15, 2017, March 15, 2017, and March 23, 33 2017; and 34 35 WHEREAS, the Planning and Zoning Commission, following the public hearing at the March 36 23, 2017 regular meeting, voted to transmit recommendations as amended for revisions to Title 37 17 to the Borough Assembly; and 38 39 WHEREAS, the Borough Assembly discussed the proposed changes at work sessions and 40 regular meetings on March 30, 2017, April 6, 2017, April 13, 2017, and April 20, 2017; and 41 42 WHEREAS, the Borough Assembly, following the public hearing at the April 20, 2017 regular 43 meeting, voted to adopted Ordinance FY2017-27. 44 Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 1 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 34 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 35 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 45 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 46 BOROUGH THAT: 47 48 Section 1: This ordinance is of a general and permanent nature and shall become a part of the 49 Kodiak Island Borough Code of Ordinances. 50 51 Section 2: Titles 3, 5, and 17 of the Kodiak Island Borough Code of Ordinances are amended 52 to read as follows: 53 54 Chapter 3.70 55 EXCISE TAX ON MARIJUANA 56 57 3.70 010 Applicability, purpose and authority. 58 3.70.020 Definitions. 59 3.70.030 Excise tax on mariivana. 60 3.70.040 Exemptions. 61 3.70.050 Tax returns. 62 3 70 060 Involuntary returns. 63 3.70.070 Amended tax returns. 64 3 70 080 Application of payments. 65 3 70 090 Prohibited acts and penalties. 66 3.70.100 Civil fraud. 67 3.70.110 Tax lien. 68 3 70 120 Interest on unpaid tax. 69 3 70 130 Taxpayer, licensee or other person remedies. 70 3 70 140 Inspection and maintenance of documents and records. 71 3 70.150 Administrative regulations. 72 3 70 160 Confidentiality of records. 73 74 3 70 010 Applicability, purpose and authority. 75 A Applicability. Unless provided otherwise this chapter shall apply to the taxation of all 76 mariluana cultivated within the Borough for commercial or retail sale purposes Including 77 mariivana cultivated by a standard mariivana cultivation facility and a limited mariluana 78 cultivation facility. 79 80 B Purpose The purpose of this section is to provide for the levy of an excise tax on 81 mariivana cultivated within the Borough by any mariivana cultivation facility, and the 82 enforcement of such tax. 83 84 C Authority. This chapter and the regulations related to mariivana establishments herein 85 are adopted pursuant to the authority granted by AS 17 38 100 and 29.35 010161. 86 87 3.70.020 Definitions. 88 "Flower and bud" means the hairy, sticky, or crystal -covered Parts of mature female 89 mariluana plants generally harvested for their high Potency content Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 2 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 35 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 36 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 90 "Mariivana" has the meaning given in AS 17.38.900. 91 "Mariivana cultivation facility" has the meaning given in AS 17.38.900 and Includes both 92 a standard marijuana cultivation facility and a limited marijuana cultivation facility as 93 licensed under 3 AAC 306.300. 94 "Mariluana product manufacturing facility" has the meaning given in AS 17.3B.900. 95 "Mariivana testing facility" has the meaning given in AS 17.38.900. 96 "Ownership change" means: 97 1 If the licensee is a partnership including a limited partnership any change in the 98 Identity of the partners or in the ownership percentages held by any partners; 99 2 If the licensee is a limited liability company any change in the Identity of the members 100 or In the ownership percentage held by any member: or 101 3 If the licensee is a corporation any sale of corporate stocks to a person not currently 102 an owner, or any change of the percentage ownership of an existing shareholder. "Retail marijuana store" has the meaning given in AS 17.38.900. 103 104 'Transfer" means the exchange of mariivana as defined under AS 17.38 900. with or 105 without consideration or by barter, between mariivana establishments, or within 106 mariivana establishments possessing multiple permits for commercial purposes. 107 108 3.70.030 Excise tax on mariivana. 109 A The Borough hereby levies an excise tax on all mariivana cultivated in any facility 110 licensed pursuant to 3 AAC 306.300, including standard mariluana cultivation facilities. 111 and limited mariivana cultivation facilities. 112 113 B All nonexempt mariivana transferred from a mariivana cultivation facility shall be 114 taxed as follows: 115 116 1 Any part of the flower and bud as defined in 15 AAC 61.290 will be taxed, on a per ounce basis at a rate equal to twenty percent of any per -ounce excise tax 117 imposed by the State of Alaska on the date of transfer pursuant to AS 43.61.010. 118 or $10.00 per ounce whichever is greater: 119 120 2 All remaining portions of the plant not Included in subsection IBlftllal of this section will be taxed on a per -ounce basis at a rate equal to twenty percent of 121 any per -ounce excise tax Imposed by the State of Alaska on the date of transfer 122 pursuant to AS 43.61.010, or $3.00 per ounce whichever is greater. 123 124 125 C A mariluana cultivation facility that is also licensed as a mariivana product 126 manufacturing facility must pay tax on all mariivana transferred from the cultivation 127 facility to the product manufacturing facility for the month in which the mariluana was 128 transferred. 129 130 D A mariivana cultivation facility that Is also licensed as a retail mariivana store must 131 pay tax on all mariivana transferred from the cultivation facility to the retail mariivana 132 store for the month in which the mariivana was transferred. 133 134 3.70.040 Exemptions. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 3 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 36 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 37 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 135 A The tax Imposed under this chapter does not apply to marijuana if the state of Alaska 136 prohibits the levying of this tax under AS 17.38. 137 138 B Transfers to a licensed mariluana testing facility are exempt from the excise tax on 139 mariluana. 140 141 3.70.050 Tax returns. 142 A On or before the last day of each calendar month a licensee shall submit to the finance 143 director a tax return upon forms Provided by the finance director, for each license and 144 submit payment for the taxes due as prescribed by the finance director. 145 146 B The return shall be signed under penalty of pariury by the licensee or agent and shall 147 Include: 148 149 1 A copy of the tax return for that month submitted by the licensee to the Alaska Department of Revenue in accordance with 15 AAC 61.010: 150 151 2. The name and address of the licensee: 152 3 The name and address of the person filing the return, if different from the licensee: 153 154 4 The number of the zoning compliance permit issued under KIBC 17.15.060: 5 The name under which the marlivana cultivation facility is being operated: 155 fi A report setting forth the total amount of mariluana transferred from the 156 mariluana cultivation facility in ounces, with fractional ounces calculated to the 157 third decimal place, for the preceding month: 158 159 7. The amount of tax due; 160 8 Such other Information and supporting documentation which may be required by the finance director. 161 162 163 C A mariluana cultivation facility licensed under this chapter shall file a tax return each 164 month even if it did not cultivate or transfer any mariluana in the borough during the 165 preceding month. 166 167 D The taxes Imposed under this chapter and the return required by this section must be 168 received by the finance director, or postmarked on or before the last day of each 169 calendar month following the month covered by the return. 170 171 E A separate tax return must be filed for each location when a taxpayer is operating in 172 several locations within the borough. 173 174 3 70.060 Involuntary returns. 175 If a licensee fails to file a return as required by this chapter, or when the finance director 176 finds that a return is not supported by the records to be maintained pursuant to this 177 chapter, the finance director may prepare and file a return on behalf of the licensee. 178 Involuntary returns filed under this section may be premised upon any Information that Is 179 available to the finance director, including among other things, a copy of the materials Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 4 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 37 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 38 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 180 the applicant submitted to the Alaska Department of Revenue in accordance with 15 AAC 181 61.010, and comparative data for similar businesses A licensee for whom an involuntary 182 return is filed under this section shall be sublect to liability for the tax stated in the 183 return as well as sublect to the penalties and Interest provided for in this chapter. A 184 return prepared by the finance director is prima facie good and sufficient for all legal 185 purposes However, nothing prevents the licensee from presenting evidence on appeal to 186 rebut the presumed sufficiency of a return prepared by the finance director, nor does the 187 presumption of sufficiency alter the parties' respective burdens of proof once the 188 189 190 191 licensee has presented evidence to rebut that presumption. 3.70.070 Amended tax returns. A. Anv tax return filed hereunder may be amended by the licensee within one year after 192 the due date of the tax return being amended. No amendment by the licensee shall be 193 194 195 allowed after this one-year Period. B Any tax return prepared and filed by the finance director on behalf of the licensee may 196 be amended by the licensee within one year of the date filed by the finance director. No 197 198 199 200 amendment by the licensee shall be allowed after this one-year Period. 3.70.080 Application of payments. Any payment submitted to the finance director for any taxes Penalties. Interest, or cost 201 due under any provision of this chapter or any return or any finding or determination by 202 the finance director under this chapter shall be credited to the monthly tax period for 203 which it was remitted first to the Payment of costs and then to penalties. Interest, and 204 205 206 207 taxes in that order. 3.70.090 Prohibited acts and penalties. A No person shall operate a madivana cultivation facility within the borough without 208 209 210 complying with the provisions of this chapter. B A penalty of ten 1101 percent of the taxes due shall be Incurred automatically when a 211 person falls to pay the full amount of the tax due under this chapter within seven 212 213 214 215 216 217 218 219 220 221 222 calendar days following Its due date. 1 The penalty shall be computed on the unpaid balance of the tax liability as determined by the finance director. 2 Notice of the penalties Incurred and to be Incurred shall be given to the person responsible for payment of the taxes or for filing the return or report when such tax payment or return or report is delinquent for seven calendar days after Its due date. 3 The penalties provided for in this section shall be In addition to all other Penalties and interest for under this chapter. Kodiak Island Borough, Alaska ordinance No. f -Y2017-27 Deletion — Red, Strikeout Page 5 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 38 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 39 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 223 C If a properly filed amended return reduces the total tax liability or the tax required to 224 be paid or the determent reduces the tax Iiability, the related penalty will be reduced 225 accordingly. 226 227 D All penalties and remedies enumerated in this chapter are cumulative. 228 229 E Unless otherwise provided in this section any person who violates or fails to comply 230 with the provisions of this chapter shall be Personally liable for all costs, Interests. 231 penalties and taxes due under this chapter plus a penalty equal to 30 percent of the tax 232 due For good cause shown the finance director may waive or reduce all or part of any 233 penalty imposed under this subsection. 234 235 3.70.100 Civil fraud. 236 A A civil fraud Penalty may be assessed against a person in addition to a penalty for 237 failure to file or failure to pay. 238 239 B If it Is determined by the finance director that a tax deficiency or part of a tax 240 deficiency is due to fraud then a penalty will be added to the tax. The penalty is 50 241 percent of the deficiency due or $500.00, whichever is greater. The penalty is computed 242 on the total amount of the deficiency due. 243 244 C Fraud is the Intentional misrepresentation of a material fact with the Intent to evade 245 payment of tax which the person Is believed to owe. The person must have had 246 knowledge of its falsity and Intended that it be acted upon or accepted as the truth. 247 248 D To establish civil fraud the finance director must prove by clear and convincing 249 evidence that: 250 251 1. The tax liability was understated: and 252 2. The understatement was the result of an intent to evade tax. 253 254 E An intent to evade tax may be demonstrated by any relevant evidence. Including but 255 not limited to the following: 256 257 1 The person has provided false explanations regarding understated or omitted amounts of mariluana cultivated or transferred: 258 259 2 The person has provided falsified or incomplete source documents; 260 3 The person has not Iustified an omission or understatement of a significant amount of mariivana cultivated or transferred: 261 262 4 The person has substantially overstated a deduction and has failed to lustily the overstatement. 263 264 265 3.70.110 Tax lien. 266 A If any person who is liable to pay a tax or license fee under this chapter neglects or 267 refuses to pay the tax or licensee fee after demand the amount. including Interest. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 6 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 39 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 40 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 268 additional amounts or assessable penalty together with costs, is a Ilan in favor of the 269 borough upon all property and rights to property, real or personal belonging to that 270 271 272 person. B. The lien Imposed by this section arises upon delinquency and continues until the 273 amount is paid or a ludgment against the person arising out of the liability is satisfied 274 275 C A Ilan arising out of a tax due under this chapter, including the penalties and Interest 276 on the tax shall be prior, paramount and superior to all other liens mortgages 277 hypothecation, conveyances, and assignments upon all real and personal property of 278 the person liable for the tax and upon all the real and personal property used with the 279 280 281 permission of the owner to carry on the business which is sublect to the tax. D. The lien on personal and real Property may be enforced In a manner similar to the 282 provided by AS 29.45.300 through 29.45.480 for enforcement of real and Personal 283 284 285 286 property tax liens. 3.70.120 Interest on unpaid tax. In addition to any penalties Imposed by this chapter, Interest at the rate of twelve (121 287 288 289 290 percent per annum shall be charged on the unpaid balance of delinquent taxes. 3.70.130 Taxpayer, licensee, or other person remedies. A. Any person aggrieved by any action of the finance director in issuing, suspending. 291 revoking, or refusing to Issue any license under this chapter or in fixing the amount of 292 taxes penalties. Interest or costs under this chapter may apply to the borough clerk and 293 request a hearing within 30 days from the date the finance director malls the notice of the 294 finance director action. Upon timely application under this subsection or a hearing, the 295 assembly shall hold a hearing to determine whether a correction is warranted. Hearings 296 before the assembly under this subsection may, at the option of the assembly, be 297 conducted by an administrative hearing officer designated by the assembly. The hearing 298 officer shall conduct the hearing and prepare findings and conclusions. These findings 299 and conclusions must be forwarded to the assembly for adoption, resection, or 300 modification and issuance of a final order or decision by the assembly. An application for 301 a hearing must notify the borough clerk of the specific action complained of and amount 302 of tax. Interest. cost. or penalty contested and the reason it is contested. After receipt of 303 a written decision by the assembly, a person may appeal to the Superior Court of the 304 Third Judicial District in accordance with the Alaska Appellate Court rules. The person 305 shall be given access to the department's file in the matter for preparation of the appeal. 306 307 B. A request for appeal is filed on the date it is personally delivered, or is delivered to the 308 borough clerk by the United States Postal Service, the date of the postmark stamped on 309 the Properly addressed cover In which the request is mailed. If the due date falls on 310 Saturday. Sunday, or a borough observed holiday, the due date is the next working day. 311 A current mailing address must be provided to the borough clerk with the request for Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 7 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 40 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 41 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 312 appeal and any change in mailing address after the request for appeal is filed must be 313 314 315 reported to the borough clerk. C If the notice to the person pursuant to subsection (A) of this section shows an amount 316 due the uncontested portion of the amount due must be paid within 30 days after the 317 date of the notice If the uncontested amount is not Paid within 30 days, collection action 318 will be taken on that amount even if the person has filed a request for appeal. Payment of 319 the total amount due may be made any time before the hearing. If the finance director has 320 reason to believe that collection of the total amount due might ieopardize by delay. 321 Immediate payment of the total amount will be demanded and the finance director may 322 pursue any collection remedies provided by law. Payment in full does not affect the 323 324 325 person's right to a hearing. D If a Person requests a hearing and fails to appear at the hearing the assembly or 326 hearing officer may Issue a decision without taking evidence from that person. unless 327 that person shows reasonable cause for failure to appear within seven days after the 328 329 330 date scheduled for the hearing. E Taxes licenses fees Penalties and interest declared to be due in the final 331 administrative decision must be Paid within 30 days after the date of the decision, or a 332 bond must be filed with the court in accordance with the Alaska Court Rules of Appellate 333 334 335 336 Procedures. 3 70 140 Inspection and maintenance of documents and records. A Madluana cultivation facilities shall keep complete and accurate records to support 337 the Information to be Included in the monthly tax returns required by this chapter. 338 including Information regarding transfersThe records must Include an accounting that 339 Inventories live plants trimmings and any dried product on the first and last day of each 340 341 342 343 344 345 346 month including: 1 An Invoice sales receipt or other record memorializing the transfer of mariivana from a mariivana cultivation facility, which must separately state the amount of tax due after the sale or transfer. B Any person selling mariluana at a retail mariivana store who cannot produce records 347 showing taxes were paid on any mariivana In their possession are secondarily liable for 348 349 350 the unpaid tax on marijuana. C Persons subiect to the chapter shall keep such other documents and records as the 351 352 353 finance director prescribes. p The finance director may during business hoursenter the business premises of a 354 licensee under this chapter, so far as it may be necessary for the purpose of examining 355 356 such products and the related business records. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 0 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 41 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 42 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 357 3.70.150 Administrative regulations. 358 The finance director may adopt policies and procedures providing for the application and 359 Interpretation of this chapter and Provide forms for reporting and collecting the tax 360 Imposed by this chapter. 361 362 3.70.160 Confidentiality of records. 363 A All tax returns documents records, andlor reports fled with the borough pursuant to 364 this chapter and all data obtained from tax returns, documents records, andlor reports 365 are confidential as Provided by KIBC 2.40.100 and may not be released for Inspection by 366 any person except the mayor, treasurer, borough attorney, or the assembly provided 367 however, that such data may be released upon court order. 368 369 B It is the duty of the borough clerk to safely keep tax returns documents records 370 and/or reports and all data thereof secure from public and Private Inspection except as 371 provided by this chapter. 372 373 C This section does not prohibit the borough from compiling and publishing statistical 374 evidence concerning the data submitted• Provided that no Identification of Particular tax 375 returns documents records and/or reports is made. Nothing in this section shall be 376 deemed to prohibit the internal auditor from examining the tax returns documents. 377 records and/or reports: provided that no Information obtained from specific or identified 378 tax returns shall be made available to Persons other than those authorized to review 379 them under subsection (A) of this section. 380 381 Chapter 5.02 382 MARIJUANA BUSINESSES 383 384 , 385 2017- established by OWinannm rY 2046 47 ig hemby amended to ApFil 30, 294:7..—"* 386 387 388 The epeFatiOR Of MaFqUaAa ... .. Hiles,. 389 390 391 392 5 02 02D Enforcement 393 394 fine of $4,090, in add tion tq the surGhaFge FeqUiFRH LIFICIPF 'AS 4:2 65 039 r5aGh clay that a 395 396 397 398 the borough oF any pemeR aggrieved by a vialation Of this GhapleF may institute a Givil a6tion feF 399 400 ' 6A 2916' 401 Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion – Red, Strikeout Page 0 of 13 Insertion – Bold, Blue, Underlined Version 1 Page 42 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 43 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 402 5 02.010 Cooperation with State Marijuana Control Board. 403 5.02.020 State license renewal procedure. 404 5.02.030 New state license and transfer procedure. 405 5 02.040 Borough license for mariluana businesses—general. 406 5 02.050 Issuance of borough license for marijuana businesses. 407 5 02.060 Renewal of borough license for marijuana businesses. 408 5 02 070 Ownership change and transfer of borough license for marijuana businesses. 409 5.02 080 Suspension or revocation of license. 410 5.02.090 Fees. 411 412 5.02.010 Cooperation with State Mariluana Control Board. 413 It is declared the policy of the borough to cooperate with and aid the Mariluana Control 414 Board for the State of Alaska in determining the fitness of applicants requesting a 415 transfer, renewal or Issuance of a new mariluana business license. 416 417 5.02 020 State license renewal procedure. 418 A Upon receipt of notice from the Mariluana Control Board of the board's receipt of 419 Intent to approve the renewal of a marijuana business license: 420 421 1 The clerk shall Investigate to determine If the borough has an interest which can be protected by protesting the approval of the application for renewal: and 422 2 The clerk shall check with the state troopers on the number of trouble reports at 423 the place of business. 424 425 426 B If the clerk determines that the borough has no interest in protesting the renewal. the 427 clerk shall advise the Mariluana Control Board of continued nonobjection to renewal in 428 writing If it is determined that the renewal could be protested based on unpaid taxes or 429 trouble reports it shall be scheduled for review by the borough assembly. 430 431 5.02.030 New state license and transfer procedure. 432 A Upon receipt of notice from the Mariluana Control Board of the board's receipt of an 433 application or Intent to approve the transfer or Issuance of a new mariluana business 434 license: 435 436 1 The clerk shall Investigate to determine if the borough has an Interest which can be Protected by protesting the approval of the application for transfer or 437 Issuance of a new mariluana business license: 438 439 2 The clerk shall check with the state troopers on the number of trouble reports at the place of business: 440 441 3 The clerk shall duly advertise and place the matter of the application upon the agenda for the next meeting of the assembly in order that citizens may express 442 their desires as to whether or not the assembly should approve or protest the 443 transfer or Issuance of the mariluana business license: and 444 445 4 The notice of Intent to establish a new mariluana business license or transfer of location of an existing license shall be mailed to each landowner within 1.500 feet 446 Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion – Red, Strikeout Page 10 of 13 Insertion – Bokl, Blue, Underlined Version 1 Page 43 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 44 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 447 of the proposed location by the clerk A transfer from one person to another of a 448 mariluana business license even if the location stays the same, shall be 449 considered a request for a new mariluana business license by the Kodiak Island 450 Borough The applicant shall pay fees based on the adopted schedule of fees 451 452 B. The assembly, after public hearing shall determine by motion If a protest to the 453 application is to be lodged with the Alaska Mariluana Control Board. If a protest is 454 lodged the manager and attorney are authorized to use any document or evidence 455 necessary to effectively advance the position of the borough at any hearing before the 456 Alaska Mariivana Control Board. 457 458 5.02.040 Borough license for madivana businesses—general. 459 A A license required by this chapter is in addition to any other license required by law. 460 461 B. A license Issued by the borough shall Include: 462 463 1. The name and address of the licensee: 464 2. The type of business to be conducted: 465 3. The address at which the business Is conducted; 466 4. A license number: and 467 5. The year for which the license is Issued. 468 469 C The finance director may refuse to issue a license if there Is reasonable cause to 470 believe that the applicant has willfully withheld Information or if there is reasonable 471 cause to believe that Information submitted in the application is false, misleading, or 472 otherwise not made in good faith. 473 474 D A license issued under this chapter shall be prominently displayed at the licensee's 475 place of business. 476 477 E A business whose license is lost stolen, or defaced shall immediately file an 478 application with the finance department for reissuance of the license for the balance of 479 the unexpired year. 480 481 5 02 050 Issuance of borough license for mariluana businesses. 482 483 A Mariluana businesses are required to obtain a license from the borough finance 484 department In order to obtain this license an application must: 485 486 1 Complete a licensing application form provided by the finance department; 2 Provide proof of Initial zoning compliance issued per KIBC 17.15 060• 487 488 3 Provide a copy of the State of Alaska Mariluana Business license Issued by the Alaska Mariluana Control Board: 489 490 4 Provide a copy of the certificate(s) of registration for mariluana-specific taxes Imposed In applicable Jurisdictions: and 491 Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion – Red, Strikeout Page 11 of 13 Insertion – Bold, Blue, Underlined Version 1 Page 44 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 45 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 492 5. Pay licensing fee per KIBC 5.02.040. 493 494 5 02.060 Renewal of borough license for mariluana businesses. 495 496 A Mariluana businesses are reaulred to renew their mariluana business license annually 497 with the finance department In order to renew their license a mariluana business must: 498 499 1 Provide a copy of the State of Alaska mariluana business license renewal Issued by the Alaska Mariivana Control Board: and 500 501 2. Pay license renewal fee per KIBC 5.02.090. 502 503 B. Mariluana business license renewal must occur prior to August 31 each calendar year. 504 On or before June 30 each year, the finance director shall send written renewal notices to 505 licensees at the address on file with the finance department. 506 507 C. A licensee is not excused from filing a renewal application as required in this section. 508 even if the licensee fails to receive a renewal notice from the finance director. 509 510 D Exceptions to KIBC 5 02 060181 may be made on a case by case basis, based on the 511 status of the mariluana business' license renewal application with the Alaska Mariluana 512 Control Board. 513 514 5 02 070 Ownership change and transfer of borough license for mariivana businesses. 515 A. A license under this chapter is not transferrable and expires on the date of an 516 ownership change. 517 518 B Transferors must surrender all licenses not later than 5 days after the effective date of 519 an ownership change. 520 521 C Transferees must obtain a license per KIBC 5.02.050. Transferees must provide Proof 522 of conveyed interest. 523 524 5 02 080 Suspension or revocation of license. 525 A. A licensee shall surrender a license with 5 days after: 526 527 1. A revocation of license: 528 2. A cessation of business; 529 3. A change of ownership: or 530 4. A change of place of business. 531 532 B. The finance director may suspend or revoke a license under this chapter: 533 534 1. For violation of this chapter or a regulation of the borough adopted pursuant to this chapter: or 535 536 2. If a licensee ceases to act in the capacity for which the license was Issued. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 12 of 13 Insertion — Bold, Blue, Underlined Version 1 Page 45 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 46 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 537 538 C No mariluana business whose license is suspended or revoked shall operate during 539 suspension of revocation No disciplinary proceeding or action is barred or abated by 540 the expiration surrender, or renewal of a license Issued under this chapter. 541 542 D The borough clerk will Inform the Alaska Mariluana Control Board of a licensee's 543 failure to pay tax due or to file a return as required by KIBC 3.70.050 and will Initiate 544 license suspension or revocation proceedings by filing an accusation as provided in AS 545 17.38.090. 546 547 5.02.090 Fees. 548 549 A A part of the costs for processing mariivana business licenses shall be covered by a 550 fee payable to the borough and shall be Paid at the time of licensing These fees will be 551 established annually by resolution of the assembly. 552 553 B. The finance director shall not refund any license fee paid pursuant to this chapter 554 upon the surrender or revocation of a license after the beginning of the license year, with 555 the exception that upon application the finance director will refund a license fee shown 556 to have been paid or collected in error. 557 558 Title 17 559 ZONING 560 [PLACEHOLDER] 561 562 Effective Date: This ordinance lakes effect upon adoption. (Note: KIBC 2.30.070 stales an 563 ordinance takes effect upon adoption or at a later date specified in the ordinance.) 564 565 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 566 THIS DAY OF .2017. 567 568 KODIAK ISLAND BOROUGH ATTEST: 569 570 571 572 Daniel A. Rohrer, Mayor Nova M. Javier, MMC, Clerk 573 574 VOTES: 575 Ayes: 576 Noes: Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 13 of 13 Insertion — Bolo, Blue, Underlined Version 1 Page 46 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 47 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... "An Act to tax and regulate the production, sale, and use of marijuana." BE IT ENACTED BY THE PEOPLE OF THE STATE OF ALASKA: "Section 1. AS 17 is amended by adding a new chapter to read: Chapter 38. The regulation of marijuana Sec. 1738.010. Purpose and findings. (a) In the interest of allowing law enforcement to focus on violent and property crimes, and to enhance individual freedom, the people of the state of Alaska find and declare that the use of marijuana should be legal for persons 21 years of age or older. (b) In the interest of the health and public safety of our citizenry, the people of the state of Alaska further find and declare that the production and sale of marijuana should be regulated so that: (1) Individuals will have to show proof of age before purchasing marijuana; (2) Legitimate, taxpaying business people, and not criminal actors, will conduct sales of marijuana; and (3) Marijuana sold by regulated businesses will be labeled and subject to additional regulations to ensure that consumers are informed and protected. (c) The people of the state of Alaska further declare that the provisions of this Act are not intended to diminish the right to privacy as interpreted by the Alaska Supreme Court in Ravin v. State of Alaska. (d) Nothing in this Act proposes or intends to require any individual or entity to engage in any conduct that violates federal law, or exempt any individual or entity from any requirement of federal law, or pose any obstacle to federal enforcement of federal law. Sec. 1738.020. Personal use of marijuana. Notwithstanding any other provision of law, except as otherwise provided in this chapter, the following acts, by persons 21 years of age or older, are lawful and shall not be a criminal or civil offense under Alaska law or the law of any political subdivision orAlaska or be a basis for seizure or forfeiture of assets under Alaska law: (a) Possessing, using, displaying, purchasing, or transporting marijuana accessories or one ounce or less of marijuana; (b) Possessing, growing, processing, or transporting no more than six marijuana plants, with three or fewer being mature, flowering plants, and possession of the marijuana produced by the plants on the premises where the plants were grown; (c) Transferring one ounce or less of marijuana and up to six immature marijuana plants to a person who is 21 years of age or older without remuneration; (d) Consumption of marijuana, except that nothing in this chapter shall permit the consumption of marijuana in public; and (e) Assisting another person who is 21 years of age or older in any of the acts described in paragraphs (a) through (d) of this section. Sec. 1738.030. Restrictions on personal cultivation, penalty. (a) The personal cultivation of marijuana described in AS 17.38.020(6) is subject to the following terms: Page 47 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 48 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... (I) Marijuana plants shall be cultivated in a location where the plants are not subject to public view without the use of binoculars, airemft, or other optical aids. (2) A person who cultivates marijuana must take reasonable precautions to ensure the plants are secure from unauthorized access. (3) Marijuana cultivation may only occur on property lawfully in possession of the cultivator or with the consent of the person in lawful possession of the property. (b) A person who violates this section while otherwise acting in compliance with AS 17.38.020(6) is guilty of a violation punishable by a fine of up to $750. Sec. 1738.040. Public consumption banned, penalty. It is unlawful to consume marijuana in public. A person who violates this section is guilty of a violation punishable by a fine of up to S 100. See. 1738.050. False identification, penalty. (a) A person who is under 21 years of age may not present or offer to a marijuana establishment or the marijuana establishment's agent or employee any written or oral evidence of age that is false, fraudulent or not actually the person's awn, for the purpose of'. (1) Purchasing, attempting to purchase or otherwise procuring or attempting to procure marijuana or marijuana products; or (2) Gaining access to a marijuana establishment. (b) A person who violates this section is guilty of a violation punishable by a fine of up to $400. Sec. 1738.060. Marijuana accessories authorized. Notwithstanding any other prevision of law, it is lawful and shall not be an offense under Alaska law or the law of any political subdivision of Alaska or be a basis for seizure or forfeiture of assets under Alaska law for persons 21 years of age or older to manufacture, possess, or purchase marijuana accessories, or to distribute or sell marijuana accessories to a person who is 21 years of age or older. Sec. 1738.070. Lawful operation of marijuana -related facilities. (a) Notwithstanding any other provision of law, the following acts, when performed by a retail marijuana store with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a retail marijuana store, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Possessing, displaying, storing, or transporting marijuana or marijuana products, except that marijuana and marijuana products may not be displayed in a manner that is visible to the general public from a public right -or -way; (2) Delivering or transferring marijuana or marijuana products to a marijuana testing facility; (3) Receiving marijuana or marijuana products from a marijuana testing facility; (4) Purchasing marijuana from a marijuana cultivation facility; (5) Purchasing marijuana or marijuana products from a marijuana product manufacturing facility; and (6) Delivering, distributing, or selling marijuana or marijuana products to consumers. (b) Notwithstanding any other provision of law, the following acts, when performed by a marijuana cultivation facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana cultivation Page 48 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 49 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... facility, are lawful and shall act be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Cultivating, manufacturing, harvesting, processing, packaging, transporting, displaying, storing, or possessing marijuana; (2) Delivering or transferring marijuana to a marijuana testing facility; (3) Receiving marijuana from a marijuana testing facility; (4) Delivering, distributing, or selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; (5) Receiving or purchasing marijuana from a marijuana cultivation facility; and (6) Receiving marijuana seeds or immature marijuana plants from a person 21 years of age or older. (c) Notwithstanding any other provision of law, the following acts, when performed by a marijuana product manufacturing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana product manufacturing facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products; (2) Delivering or transferring marijuana or marijuana products to a marijuana testing facility; (3) Receiving marijuana or marijuana products from a marijuana testing facility; (4) Delivering or selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; (5) Purchasing marijuana from a marijuana cultivation facility; and (6) Purchasing of marijuana or marijuana products from a marijuana product manufacturing facility. (d) Notwithstanding any other provision of law, the following acts, when performed by a marijuana testing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana testing facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring or delivering marijuana; (2) Receiving marijuana or marijuana products from a marijuana cultivation facility, a marijuana retail store, a marijuana products manufacturer, or a person 21 years of age or older, and (3) Returning marijuana or marijuana products to a marijuana cultivation facility, marijuana retail store, marijuana products manufacturer, or a person 21 years of age or older. (e) Notwithstanding any other provision of law, it is lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law to lease or otherwise allow the use of property owned, occupied or controlled by any person, corporation or other entity for any of the activities conducted lawfully in accordance with paragraphs (a) through (d) of this section. (f) Nothing in this section prevents the imposition of penalties upon marijuana establishments for violating this chapter or rules adopted by the board or local governments pursuant to this chapter. (g) The provisions of AS 17.30.020 do not apply to marijuana establishments. Sec. 1738.080. Marijuana Control Board. Page 49 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.6. Page 50 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... At any time, the legislature may create a Marijuana Control Board in the Department of Commerce, Community, and Economic Development or its successor agency to assume the power, duties, and responsibilities delegated to the Alcoholic Beverage Control Board under this chapter. See. 1738.090. Rulemaking. (a) Not later than nine months after the effective date of this act, the board shall adopt regulations necessary for implementation of this chapter. Such regulations shall not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. Such regulations shall include: (1) Procedures for the issuance, renewal, suspension, and revocation of a registration to operate a marijuana establishment, with such procedures subject to all requirements of AS 44.62, the Administrative Procedure Act; (2) A schedule of application, registration and renewal fees, provided, application fees shall not exceed $5,000, with this upper limit adjusted annually for inflation, unless the board determines a greater fee is necessary to carry out its responsibilities under this chapter, (3) Qualifications for registration that are directly and demonstrably related to the operation of a marijuana establishment; (4) Security requirements for marijuana establishments, including for the transportation of marijuana by marijuana establishments; (5) Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under the age of 21; (6) Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment; (7) Health and safety regulations and standards for the manufacture of marijuana products and the cultivation of marijuana; (8) Reasonable restrictions on the advertising and display of marijuana and marijuana products; and (9) Civil penalties for the failure to comply with regulations made pursuant to this chapter. (b) In order to ensure that individual privacy is protected, the board shall not require a consumer to provide a retail marijuana store with personal information other than government -issued identification to determine the consumer's age, and a retail marijuana store shall not be required to acquire and record personal information about wnsumers. Sec. 1738.100. Marijuana establishment registrations. (a) Each application or renewal application for a registration to operate a marijuana establishment shall be submitted to the board. A renewal application may be submitted up to 90 days prior to the expiration of the marijuana establishment's registration. (b) The board shall begin accepting and processing applications to operate marijuana establishments one year after the effective date of this act. (c) Upon receiving an application or renewal application for a marijuana establishment, the board shall immediately forward a copy of each application and half of the registration application fee to the local regulatory authority for the local government in which the applicant desires to operate the marijuana establishment, unless the local government has not designated a local regulatory authority pursuant to AS 17.38.110(c). (d) Within 45 to 90 days after receiving an application or renewal application, the board shall issue an annual registration to the applicant unless the board finds the applicant is not in compliance with regulations enacted pursuant to AS 17.38.090 or the board is notified by the relevant local government that the applicant is not in compliance with ordinances and regulations made pursuant to AS 17.38.110 and in effect at the time of application. Page 50 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 51 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... (e) If a local government has enacted a numerical limit on the number of marijuana establishments and a greater number of applicants seek registrations, the board shall solicit and consider input from the local regulatory authority as to the local government's preference or preferences for registration. (f) Upon denial of an application, the board shall notify the applicant in writing of the specific reason for its denial. (g) Every marijuana establishment registration shall specify the location where the marijuana establishment will operate. A separate registration shall be required for each location at which a marijuana establishment operates. (h) Marijuana establishments and the books and records maintained and created by marijuana establishments are subject to inspection by the board. Sec. 1738.110. Local control. (a) A local government may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or by a voter initiative. (b) A local government may enact ordinances or regulations not in conflict with this chapter or with regulations enacted pursuant to this chapter, governing the time, place, manner and number of marijuana establishment operations. A local government may establish civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a marijuana establishment that may operate in such local government. (c) A local government may designate a local regulatory authority that is responsible for processing applications submitted for a registration to operate a marijuana establishment within the boundaries of the local government. The local government may provide that the local regulatory authority may issue such registrations should the issuance by the local government become necessary because of a failure by the board to adopt regulations pursuant to AS 17.38.090 or to accept or process applications in accordance with AS 17.38.100. (d) A local government may establish procedures for the issuance, suspension, and revocation of a registration issued by the local government in accordance with (f) of this section or (g) of this section. These procedures shall be subject to all requirements of AS 44.62, the Administrative procedure Act. (e) A local government may establish a schedule of annual operating, registration, and application fees for marijuana establishments, provided, the application fee shall only be due if an application is submitted to a local government in accordance with (f) of this section and a registration fee shall only be due if a registration is issued by a local government in accordance with (f) of this section or (g) of this section. (f) If the board does not issue a registration to an applicant within 90 days of receipt of the application filed in accordance with AS 17.38. 100 and does not notify the applicant of the specific, permissible reason for its denial, in writing and within such time period, or if the board has adopted regulations pursuant to AS 17.38.090 and has accepted applications pursuant to AS 17.38.100 but has not issued any registrations by 15 months after the effective date of this act, the applicant may resubmit its application directly to the local regulatory authority, pursuant to (c) of this section, and the local regulatory authority may issue an annual registration to the applicant. If an application is submitted to a local regulatory authority under this paragraph, the board shall forward to the local regulatory authority the application fee paid by the applicant to the board upon request by the local regulatory authority. (g) If the board does not adopt regulations required by AS 17.38.090, an applicant may submit an application directly to a local regulatory authority after one year after the effective date of this act and the local regulatory authority may issue an annual registration to the applicant. Page 51 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 52 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... (h) A local regulatory authority issuing a registration to an applicant shall do so within 90 days of receipt of the submitted or resubmitted application unless the local regulatory authority finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to (b) of this section in effect at the time the application is submitted to the local regulatory authority. The local government shall notify the board if an annual registration has been issued to the applicant (i) A registration issued by a local government in accordance with (f) of this section or (g) of this section shall have the same force and effect as a registration issued by the board in accordance with AS 17.38.100. The holder of such registration shall not be subject to regulation or enforcement by the board during the term of that registration. 0) A subsequent or renewed registration may be issued under (f) of this section on an annual basis only upon resubmission to the local government of a new application submitted to the board pursuant to AS 17.38.100. (k) A subsequent or renewed registration may be issued under (g) of this section on an annual basis if the board has not adopted regulations required by AS 17.38.090 at least 90 days prior to the date upon which such subsequent or renewed registration would be effective or if the [ward has adopted regulations pursuant to AS 17.38.090 but has not, at least 90 days after the adoption of such regulations, issued registrations pursuant to AS 17.38.100. (1) Nothing in this section shall limit such relief as may be available to an aggrieved party under AS 44.62, the Administrative procedure Act. Sec. 1738.120. Employers, driving, minors and control of property. (a) Nothing in this chapter is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees. (b) Nothing in this chapter is intended to allow driving under the influence of marijuana or to supersede laws related to driving under the influence of marijuana. (c) Nothing in this chapter is intended to permit the transfer of marijuana, with or without remuneration, to a person under the age of 21. (d) Nothing in this chapter shall prohibit a person, employer, school, hospital, recreation or youth center, correction facility, corporation or any other entity who occupies, owns or controls private property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property. Sec. 1738.130. Impact on medical marijuana law. Nothing in this chapter shall be construed to limit any privileges or rights of a medical marijuana patient or medical marijuana caregiver under AS 17.37. Sec. 1738.900. Definitions. As used in this chapter unless the context otherwise requires: (1) "Board" means the Alcoholic Beverage Control Board established by AS 04.06. (2) "Consumer" means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by persons 21 years of age or older, but not for resale to others. (3) "Consumption' means the act of ingesting, inhaling, or otherwise introducing marijuana into the human body. (4) "Local government" means both home rule and general law municipalities, including boroughs and cities of all classes and unified municipalities. Page 52 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 53 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... (5) "Local regulatory authority" means the office or entity designated to process marijuana establishment applications by a local government. (6) "Marijuana" means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. "Marijuana" does not include fiber produced from the stalks, oil, or calve made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products. (7) "Marijuana accessories" means any equipment, products, or materials of any kind which are used intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body. (8) "Marijuana cultivation facility" means an entity registered to cultivate, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. (9) "Marijuana establishment" means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store. (10) "Marijuana product manufacturing facility" means an entity registered to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers. (11) "Marijuana products" means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. (12) "Marijuana testing facility" means an entity registered to analyze and certify the safety and potency of marijuana (13) "Retail marijuana store" means an entity registered to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities, and to sell marijuana and marijuana products to consumers. (14) "Unreasonably impracticable" means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson. *See. 2. AS 43 is amended by adding a new chapter to read: Chapter 61. Excise tax on marijuana See. 43.61.010. Marijuana tax. (a) An excise tar is imposed on the sale or transfer of marijuana from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Every marijuana cultivation facility shall pay an excise tar at the rate of $50 per ounce, or proportionate pan thereof, on marijuana that is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Page 53 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 54 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... (b) The department may exempt certain parts of the marijuana plant from the excise tax described in (a) of this section or may establish a rate lower than $50 per ounce for certain parts of the marijuana plant. Sm. 43.61.020. Monthly Statement and Payments. (a) Each marijuana cultivation facility shall send a statement by mail or electronically to the department on or before the last day of each calendar month. The statement most contain an account of the amount of marijuana sold or transferred to retail marijuana stores and marijuana product manufacturing facilities in the state during the preceding month, setting out (1) the total number of ounces, including fractional ounces sold or transferred; (2) the names and Alaska address of each buyer and transferee; and (3) the weight of marijuana sold or transferred to the respective buyers or transferees. (b) The marijuana cultivation facility shall pay monthly to the department, all taxes, computed at the rates prescribed in this chapter, on the respective total quantities of the marijuana sold or transferred during the preceding month. The monthly return shall be riled and the tar paid on or before the last day of each month to cover the preceding month. Sec. 43.61.030. Administration and Enforcement of Tex. (a) Delinquent payments under this chapter shall subject the marijuana cultivation facility to civil penalties under AS 43.05.220. (b) If a marijuana cultivation facility fails to pay the tax to the state the marijuana cultivation facility's registration may be revoked in accordance with procedures established under AS 17.38.090(a)(1). *Sec. 3. The provisions of this Act are independent and severable, and, except where otherwise indicated in the text, shall supersede conflicting statutes, local charter, ordinance, or resolution, and other state and local provisions. If any provision of this Act, or the application thereof to any person or circumstance, is found to be invalid or unconstitutional, the remainder of this Act shall not be affected and shall be given effect to the fullest extent possible. Page 54 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 55 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.005 Co aasacs, Coxae =, um Ec. Dgv. 3 AAC 306.005 Chapter 306. Regulation of Marijuana Industry. Article 1. Ucca.ing Fete (3 MC 306.005 - 3 MC 30).[0)) 2. Ixml Optima (3 MC 306200 - 3 MC 306.260) 3. F.Lel Marijuam Smree (3 MC 306.300 - 3 MC 306.Me C 3080) C 305.0 - 8 M 6.4 4. m Marduana CultivtiFacilitin (3 M {0 5. Marijuana Pmdua Msnufact ring Facilitin (3 AAC 306500-3AAC 306.570) 6. hrmduana Taming Fa fiim(3MC30).60)-3MC30).675) 7. Opentivg RequiremmL f All Marijuem gxmbliabmmmf3MC30).T0)-3MC 30).7551 6.(3en. mea4 MC306900-3 AAC.99(h .8501 one(3AACZ113 9. Ccneml Prwbinna (3 MC 306-005 - 3MC 300.9901 Article 1. Licensing; Fees seeruan U 0). I.imma required 55. Comivxl jvetim ivformnuon ale m 05. 10. rntrtcanm mN a Lice. 16. I.immmatigna 611. ruby-ct by Imi nt 20. Applimtiaa 6w mw license tion 65. Public ry nidpeti M. A,APeUtion fo pox i 70, sea' Ire mint W. Pelitim far Smme in arm with no av Puy P ed LmitMnfi ate 76.PmmdumTbrac[ibnvnlicmeeapp0- mtian 40.APPIiarti,m6cnmewdafOrem.• 40. Ownrrxti change b rc lrenial bf Gxmee oPPlimtibn a a licd W. 45. Appin Por torn+f at a Iiame W. fakrmal mnf nm m vmther Prreav W. Fmmbl bearing tber W. 8lll tm bf iiomxrd Premiere net 95. lx F,-: nllbw,.f 10). M.�x; 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 activ- ities 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 - 3 AAC 306.755; (2) a marijuana cultivation facility license, as described in 3 AAC 306.405 and 3 AAC 306.410, granting authority for activities al- havvd under AS 17.38.070(b), and subject to the previsions of 3 AAC 306.400 - 3 AAC 306.480 and 3AAC 306.700 - 3 AAC 306.755; (3) a marpunna product manufacturing facility license, as de- scrilaxl in 3 AAC 306.505 and 3 AAC 306.515, granting authority far 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 nllowed under AS 17.38.070(d), and subject to the provi- sions of 3 AAC 306.600 - 3 AAC 306.675 and 3 AAC 306.700 - 3 AAC 306.755. (Eff. 2/21n016, ]register 217) 1133 Page 55 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 56 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 8 AAC 306.010 A1A9x/.Aanaasmx7 Carr 3 AAC 306.010 • AtAh.c tr AS 17:19.010 AS 1758.150 AS 17.38200 AS 1731.070 AS 1758.100 AS 17.98.800 AS 17:18.121 3 AAC 808.010. I.1conse, restrictions. (a) The hoard will not issue a marUunna establishment license if the licensed premises will be located within 500 0rot of a school ground, a recreation or youth center, a building in which religious services am regularly conducted, or a emmetional 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 premixes would be located to the outer boundaries of the school ground, the outer boundaries of the mereation or youth center, the main public entrance of the building in which religious services are regularly conducted, or the main public • entrance of the correctional facility. This auction does not prohibit the mnewal of an existing marijuana establishment license or the transfer ofan existing marounna establishment license to another person if the licuneed premises were in use before the school ground, recreation or youth center, the building in which religious services am regularly conducted, or a correctional facility began use are site within 500 fmt. If an existing marijuana establishment license for premises located within 500 fort of a school ground, a recreation or youth center, a building in which religious services am regularly conducted, or a correctional facility is revoked or expires, the board will not isms, another marijuana establishment license far the same premiers unless the school ground, the recreation or youth center, the building in which . religious servirce am regularly conducted, or the correctional facility no longer accupies the site within 500 Poet. (b) The board will not issu, a marijuana establishment license ifthe licensed promises will be located in a liquor license promises. le) 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 the applimnl's proposed licensed promises aro located in a place within the lora] government where a local zoning ordinance prohibits the marijuana establishment unless the local government has approved a variance from the local ordinance. (d) Tem board will not issue a marijuana establishment license to a person that • (l) is prohibited underAS 17.38.200(1) from receiving a marijuana establishment licena, 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 306.02016X2) is prohibited under AS 17.38.20011) from obtaining a license; in this pamgmph, 'mnviction of a felony' includes a sus- pended imposition of sentence; (2) has been found guilty of IA) selling alcohol without a license in violation ofAS 04.11.010; (B) selling alcohol to an individual under 21 years of age in violation of AS 04.16.051 or 04.16.052; or 1134 • Page 56 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 57 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.015 Coeuracs, Garnusrm, Asn Ec. Dw.. 3 AAC 306.015 (C) a misdemeanor crime involving a controlled substance, violence against a person, use of a weapon, or dishonesty within the preceding five years; or (3) has, within two years before submitting an application, been convicted ore clew A misdemeanor relating to selling, furnishing, or distributing marijuana or operating an establishment where mari- juana is consumed contrary to state law. (Efi: 21212016, Register 217) Authority: AS 17.96.010 AS 17.98.160 AS 17.90.200 AS 17.88.070 AS 17Sa190 AS 17.98.900 AS 17.98.121 3 AAC 300.015. License coaditfona. (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. (h) The board will not issue a marijuana establishment license to (1) an individual or a sole proprietorship unless lh6 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 com- pany 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 quali- Sed to do business in the state and each shareholder is a resident of the state. (c) The board will issue each license for a specific location identified on the license no the licensed premises. A marijuana establishment must have a right to possession of its Iicenxed premises at all times, and may not lease its licensed premises to mother 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 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 without obtaining a license for the now premises as required under 3 AAC 306.050. (d) The board will impose other conditions or restrictions an 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 lt9F Page 57 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 58 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.020 Ausxn Aismasnmrws Conn. 3 AAC 306.020 (i) rental charges on a graduated or percentage lease -rent agreement for teal estate leased to a licensee; or (ii) it consulting foe from a licensee for seRices that sat, allowed under this chapter, (2) "residentorthe 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 estab- lishment license under this chapter. (EB: 2/2112016, Register 217; add'1 stn 2/2112016, Register 217) Authnrit,o AS 17.98.010 AS 17.08.150 AS 17.39.200 AS 1758.070 AS 1758.190 AS 17x8.600 AS 1758.121 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, an a form the board prescribes, with the information and documents described to this section, along with the application fee and the annual license fee set out in 3 AAC 306.100, and the fingerprint cards and fires 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 appli- rmt will use for the proposed marijuana establishment, along with the applicant's state business license number issued underAS 43.70; (2) the name, mailing address, telephone number, and social security number ofeach proposed licensee and each affiliate of each proposed licensee; unless the context requires otherwise, "licensed" means each individual named in an npplitation that complies with this section; sn individual to be identified as a licensee under this section includes (A) if the applicant is are individual or a sole proprietor, the individual or sole proprietor, (B) if the applicant is a partnership, including a limited part- nership, each partner holding any interest in the partnership; (C) if the applicant is a limited liability company, each member holding my ownership interest; (D) if the applicant is a corporation, each owner of any of the corporations stock; and (E) if the applicant is a local government, an authorized official of the local government; (3) for each applicant that is not an individual, the applicable documents and information as follows: (A) for a partnership, including a limited partnership, the partnership agreement, the name of each general or managing 1136 Page 58 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 59 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.020 Cm asw:e, Co temarv, am Ec. Dsv. 3 AAC 306.020 partner, and a list of all partners with the 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 the 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 (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 (2) of this subsection who is responsible for (A) management of the marijuana establishment; and (B) compliance with state laws; (6) an electronic mail address at which the applicant agrees to receive any correspondence from the board before and after it receives a liconse; an applicant and a licensee must ensure that any electronic mail address provided to the board is current so that the board can contact the applicant or licensee at anv time; (7) the type of license the applicant is requesting, (8) the address of the premises to include global positioning system (GPS) coordinates wb,re the applicant intends to operate a marijuana establishment, and n detailed diagram of the proposed licensed premises; tho diagram must show all entrances and bound- aries of the premises, restricted access areae, and storage areas; (9) the title,lease, or other documentation showing the applicant's right to possession of the proposed licensed promises; (10) an affidavit xhowina when, 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 that the board requires as follows: (A) fur a retail marijuana store, the information required under 3 AAC 30G.315; (B) for a marijuana cultivation facility, the information re- quired under 3 AAC 306.420; (C) for a marijuana product manufacturing facility, the infor- mation requinvl under 3 AAC 306.620; (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 1137 Page 59 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 60 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.025 AL sKA Aammsnunrr Cane 3 AAC 306.025 (1) sentrity, (2) inventory truckingof all marijuana and marijuana products on the premises; (3) employee qualification end training, (4) waste disposal; (5) tremspartation and delivery of marijuana and marijuana prod- ucts' and (6) signage and advertising. (d) An application for a marjoram establishment license most be signed by (1) the applicant, if the applicant is an individual; (2) an authorized general partner if the applicant is a partner- ship, including a limited partnership; (3) 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. (a) Each person signing an application for a marijuana establish- ment license must declare under penalty or 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 requime in support of the application. (Ef. . 2/2L2016, Register 217) A dharitp M 1756.016 A9 17A6.16c AS 17.36200 - As 1756.076 As 1756.106 AS 1736566 AS 1736.121 Editor's vole Parma and insh n flans Internet address to for filing an appl"Han car a marijuana mw.rmmetm.alsaka.gwhreWabd and mUtWisleaent prams ran be obtained on. its of ne to at 650 Wrsl 7U3 Ave. suite Innalthahfarotana Corraliaard'a web 1600, Anchorage, AIL 08501. 7be board'a site or at the board's a na board's mlephune aumber is (007) 268-0350. 8 AAC 306.025. Application procedure. (a) An applicant most 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 must 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 preposed licensed premises; and (B) one other conspicuous location in the area of the proposed premises; (2) publishing an nnnotencement once a week for three consecu- tive weeks in a newspaper of general circulation in the area; in an 1138 Page 60 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 61 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.026 Coen¢sce, Co cumim•, nun Ec. Dev. 3 AAC 206.025 area where no newspaper circuiates, the applicant must arrange for broadcast announcements on a radio station serving the local area where the proposed licenses seeks to operate twice a week for three successive weeks during triple A advertising time; the newspaper or radio notice most state (A) the name of the applicant (B) the name and location of the proposed promises; (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 submit- ted to the board; and (3) submitting a copy of the application on the form the board prescribes to (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 must pay the application and licensing fees set out in 3 AAC 306.100. The applicant most then earn the board's electronic system to inform the board that the epplicnnt 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 estnhlialuneat 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) We local government with jurisdiction ever the applicants proposed licensed premises; (3) the community council if the proposed licensed premises am 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 islower. plate, the director shall notify the applicant by electronic mail at the address provided by the applicant and shall either (1) return an incomplete application in its entirety, or (2) request the applicant to provide additional identified items needed to complete the application. (p When the director informs an applicant that its application is incomplete as provided in (c) of this section, the applicant most complete the application not later than 90 days alter the date of the director's notice. If an applicant fails to complete its application during the 90 -day period after the directors notice, the applicant must file a 1139 Page 61 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 62 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.030 A1.ws.. Anuvj.,=.%Tn P. Com- 3 AAC 306.035 new npplication and pay a new npplication fee to obtain a marijuana establishment license (Eli. WIP2016, Register 217) Autborit, AS 17.38.010 AS 17.38.150 AS 17.38.200 AS 17.38.010 AS 17.38.100 AS 17.38.900 AS 1788.121 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 rrsiding within one mile of the proposed premises. (b) The board will not approve a new license in an area that is 50 miles or mom fere the boundary of a ]me] government unless the board receives n 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 past office station within a radius of five miles of the preposed licensed promises, the petition must be signed by two-thirds of the permanent residents residing within a five�mile radius of the proposed &caned premises. (c) Apetition authorized by this section must he on a form the board prescribes. The applicant must obtain the required signatures within the 00 -day period immediately before submitting the petition to the board. A signature may not be added to or removed from the petition after the board has approved the application. (d) In this section,'per nanent resident' means a person 21 years of age or older who has established a permanent place of abode. Apersen may be a permanent resident of only one place. (ER: 7121/2016, Register 217) Authority: AS 1738.010 AS 1788.150 AS 1738200 AS 17.38.010 AS 1738.100 AS 17.:18.900 AS 1738.121 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 most 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. In the notice the director shall include a hyperlink for the marjjums, 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 not later than Jane 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 1140 Page 62 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 63 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.035 Coaaoacx, Cor mma , nrm Ec. Dm 3 AAC 306.035 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 mnewal notice from the director. (b) A marijuana establishmenfe renewal application must (1) identify the license sought to he renewed by license number, license type, establishment name, and premises address; (2) provide the information required for a new license application under AAC 306.020(b)(1)—(8); (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; (C) the marijuana establishmenes operating plan; and (D) any new product a licensed marijuana product manufactur- ing 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 con- victed in the previous two calendar years; and ,B) any civil violation ofAS 04, AS 17.38, or this chapter in the previous two calendar years; and (6) declare under penalty of unworn 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 mm - plate, the director shall give written notice of a renewal application to (1) the applicant; (2) the local government in the area in which the applicant's proposed licensed premises are located; (3) the cemmunity council if the proposed licensed premises are located within the boundary of a mon aunity 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 fee, as required by 3 AAC 306.055(x). (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 the late renewal application fee under 3 AAC 306.100(b) with the renewal application. (f) On or befom August 15 of each year, the director shall deliver a notice orexpiralion to each marijuana establishment that has not filed 1141 Page 63 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 64 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.040 AjA Aaulmsrr"xtvs Coos 3 AAC 306.040 • a complete application for renewal or a license, along with any applicable affidavit and the required fee, unless the marijuana estab- lishment 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 pro- vided to the director. A marijuana establishment is not excused from filing a license renewal application not Inter than August 31 of each year even if the marUuana 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 that year. A holder of an expired license shall immediately surrender the license to the board. Any holder of an expired license that Seeks authority to operate must file a complete new applicatinn under 3 AAC 306.020, and 3 AAC 306.025, along with the required fees. (ER 2/21/2016, Register 217) Authority AS 1758.010 AS 172X.160 AS 1750.200 A.4 17. 070 AS 17.38.190 AS 17.38.900 AS 1758.121 3 AAC 306.040. Ownership change to be reported. (a) A It- censed marijuana establishment Shall, not later than 10 days ager an ownership change, report the change on a form prescribed by the board. (b) If any change required to be reported under this section will result in a change in controlling interest of the marijuana establish- ment license, the marijuana establishment must file an application for transfer of license to another person under 3 AAC 306.045. tc) In this section, "ownership change" means (1) if the licensee is a partnership, including a limited partner- ship, 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 13) 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. (ER 2121/2016, Register 217) Authority: AS 17MDIO AS 1720.1,50 As 1728500 AS 1758070 AS 17.38.190 AS 17.39.000 AS 175&121 1142 . Page 64 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 65 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.045 Comasnes, Cmemruanv, eao Rn Dao 3 AAC 306.045 3 AAC 306.045. Application for transfer of a license to m- other person. (a) A person may not receive or transfer a marijuana establishment license or a controlling interest in a marUmma cetab- lishment license issued to a partnership, including a limited partner- ship, 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 marUuana 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, most be filed in writing on a form the board prescribes, in compliance with the application procedure set out in 3 AAC 306.026. The application most name the current holder of the marijuana establishment license and the proposed tronaferee, including all per- sons 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 (1) the same information about each transferee as is required of an applicant far a new license under 3 AAC 306.020; (2) a statement, under oath, eaecuted by the current holder of the marijuana establishment license, listing all debts of the business, all fazes the business owes, current contact information for each cred. iter, and an affirmation that the current holder of the marijuana establishment license has submitted a copy of the transfer applica- tion to all creditors; and (3) any other information required by the board for the typo of marijuana 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 prem. bus arc located; (3) the community council if the licensed promisee are located within the boundary of a community council established by munic- ipal charter or ordinance; and (4) any nonprofit community organization that has requested notification in writing. (d) A current holder of a marijuana establishment license most 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 I. (Elf. 212=16, Register 217) 1143 Page 65 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 66 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.050 Au "Arunmam ova Gme 3 AAC 306.060 Authority: AS 1784010 AS 1784IW AS 1784250 AS 17.38.070 AS 17]9.100 AS 17.94900 AS 1788.121 3 AAC 306.050. Relocation of licensed premises not allowed. A marijuana establishment license may not be relocated to any other promises. Aholder are marijuana establishment licence that wishes to operate a marijuana establiebment at a different location most 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. (EM WIN016, Register 217) Authurit, AS 17.38.010 AS 17.94150 AS 17.38200 AS 1784070 AS 1784190 AS 1788.900 AS 17.98.121 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(6X2), most submit the persons fingerprints and the fees required by the Department of public Safety under AS 12.62.160 for criminal justice information. (b) The director shall submit the fingerprints to the Department of Public Safety to obtain a report of criminal justice information under A3 12.62. The board will use the information obtained under this section to determine if an applicant is qualified for a marijumm establishment license. (c) In this section, 'criminal justice information' has the meaning given in AS 12.62.900. (Eff. 2121=16, Register 217) Aatharity. AS 1788.010 AS 17.84.150 AS 1788250 AS 1784070 AS 1788.190 AS 17.94800 AS 17.98.121 3 AAC306.060. Protesthylocalgovernment.(a) Notlaterthan 60 days atter the director sends notice of an application for a new marijuana establishment license, renewal of a marijuana establish - meet license, or tnanafer 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 brown or for a transfer of a licence to another person, the board will deny the application unleas the board finds that the protest is arbitrary, capricious, and unreasonable. (b) A local government may recommend that the board approve m application for a new license, renewal of a license, or transfer of a licence 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 1144 Page 66 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 67 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.065 COYlirana, Coummmv, Anu Ec. Dev. 3 AAC 306.075 the board imposes a condition a local government recommends, the local government shall assume responsibility for monitoring compli- ance with the condition unless the board provides otherwise. (c) If a local government determines that a marUuana establish- ment has violated a prevision 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 shall prepare the determination as an =motion against the licensee under AS 44.62.360 and conduct proceedings to resolve the matter as pro- vided under 3 AAC 306.820. (EM 2/21/2016, Register 217) Authmityt AS 17.38.010 AS 17.8.160 AS 1738200 AS 17.38.070 AS 1738.1911 A9 1738.9110 AS 17.38.121 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 reevons for the objection to the board and the applicant not later than 30 days after notice of the application, but not 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 to conduct a public hearing under this section, an interested person may give oral testimony at the public hearing. (EH. 2(21/2016, Rrgistnr 217) Antharnr- AS 1738.010 AS 1738.1611 AS 17.38200 A9 173SWO AS 1739.190 AS 17.38.aW A9 17.38.121 3 AAC 3M070. nearing on public protest. The board may, on its own initiative or in response, to an objection or protest, hold a hearing to nacertain the reaction of the public or a local government to an application. The director shall send notice of a hearing under this auction as provided in AS 44.62.330 — 44.62.630 (Administrative Procedure Act). (Eft. 2/21/2016, Register 217) Au horny AS 17.3a0t0 AS 17Salw AS 17,58200 A9 17.38070 AS 17.38.190 AS 17.98.900 AS 17.38.121 3 AAC 306.075. Prucedure for action on license application. (a) The board will decide whether to grant or deny an application not later than 90 days ager 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 1145 Page 67 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 68 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.080 A1.,,s., Arwr ii, %Ti%T Coop. 3 AAC 306.080 (2) the time allowed for an objection under 3 AAC 306.065 has elap ed. (b) Not later than seven days before the date set for board action on an application for it new license, renewal of license, or transfer of a license to another person, the director shall post u meeting agenda listing the matters scheduled for action at that meeting. The board may review an application for a new license, renewal are license, or transfer of a license to nnother person, without additional notice to the applicant. (c) The board will consider any written objection, protest, suggested condition, or petition, and also will consider any testimony received at a hearing on public protest held under 3 AAC 306.070 when it considers the application. The director shall retain the written objec- tion, protest, or suggested condition or petition, and the hearing record as part or the permanent record of the board's review of ant application. (EIC 2/21/2016, Register 217) Aathoril, AS 17.96010 AS 1738.1:0 AS 1758-200 AS 17.98.070 AS 173s.190 AS 1738.910 AS 17.36.121 3 AAC 306.080. Dental of license application. (a) Afler review of the application, including the applicant's prepts" 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 applica- ble provisions of 3 AAC 306.020 — 3 AAC 306.055, or contains any false statement of material fact; (2) the license would violate any restriction in 3 AAC 306.010; (3) the license would violate any restriction applicable to the purtieular 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 17.38.210, 3 AAC 306.200, or 3 AAC 306.230; (5) the board finds that the operating plan does not adequately demonstrate that the applicant will comply with applicable pmvi- sions of this chapter, or (6) the license would not be in the best interests of the public. (b) After review of the application and all relevant information, the board will deny an application for renewal of a marijuana establish- ment 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 float operation of the licensed business. (c) After review of the application and all relevant information, the 1146 Page 68 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 69 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.085 Coueaace, Couaumr4 mm Er. Dw.. 3 AAC 306.090 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 te:ea satisfactory to the creditor or lazing 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 qualifica- tions of an original applicant required under this chapter. (d) If the board denies an application for a new license, renewal ora license, or transfer of a license to another person, the board will, not later than 15 days after the hoard meeting at which the application was denied, furnish a written stmtement of issues to the applicant, explaining the mason for the denial in clear and concise language, and identifying any statute or regulation on which the denial is based. In the notice of denial the board 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. (Eft. 2121/2016, Register 217) Authority: AS 17.99ata AS 1758.150 AS 17.98208 AS 175&070 AS 1758.190 AS 1758.900 AS 17.98,121 3 AAC 306.085. Informal conference. (a) Iran applicant for a new, license, renewal of a license, or transfer of a license to another person is aggrieved by an action of the hoard denying the application, the applicant may, not 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 doss not resolve the matter to the applicant's satisfaction, the applicant may, not later than 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 44.62.390(6). (Eft. 2121/2016, Register 217) Authodt, AS 1758.010 AS 1758.150 AS 1758208 AS 17.18.070 AS 1758.190 AS 17.38.900 AS 17.18.121 3 AAC 8118.090. Formal bearing. (a) If an applicant for a new license, renewal are license, or transfer of a license is aggrieved by an action of the board denying the npplication, the applicant may request 1147 Page 69 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 70 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.095 A1Asn:r AuMmtmvrrox Cour. 3 AAC 306.100 a formal hearing by filing a notice of defense in compliance with AS 44.62.390 not later than 15 days after the date ofthe written notice of the denial, or as provided in 3 AAC 306.0&5(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 board may request the office of administrative hearings to conduct the hearing in compliance with due process, AS 94.62.330 — AS 44.62.630 (Administrative procedure Act), and 2 AAC 64.100 — 2 AAC 64.990, as applicable. (Elf. 2121/2018, Register 217) Authority: AS 1738.010 AS 17.38.150 AS 17.39.200 AS 17.88.070 AS 17.38.190 AS 1739800 AS 17.38.121 3 AAC 306.096. Appeals. (a) An aggrieved applicant or marijuana establishment license holder may appeal to the board regarding any action of the director, or an employ" 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 ag- grieved by a final derision 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. (Etf. 2121/2016, Register 217) Aethorityr. AS 1739810 AS 17.88.150 AS 17.38200 AS 1739.070 AS 17.38.100 A9 1738.900 - AS 17.38121 3 AAC 306.100. Feeq refund. (a) The non-refundable application fee for a new marijuana establishment license or an application to transfer a license to another person is $1,000. (b) The non-refundable application fee for a license renewal appli- cation is $600. If a renewal application is late as provided under 3 AAC 306.035(e), an additional non-refundable late renewal applica- tion foe is $1,000. (c) The non-refundable fee to request board approval of a change in a licensed marquana establishment's business name, licensed prem- ises 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 retail marijuana store license, $5,000; (2) for a limited marijuana cultivation facility license, $1,000; (3) for a marijuana cultivation facility license, $5,000; 1148 Page 70 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 71 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.200 Ccau exce, Commumly, Axe Eu. Dal: 3 AAC 306.200 (4) for a marijuana concentrate manufacturing facility license, $1,000; (5) for a marijuana product manufacturing facility license, $5,000: (6) for a marijuana tasting facility license, $1,000. (e) The fee for a marijuana handler permit card is $50. (f) If the board denies as 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 atter the license has been issued. (g) Processing fees for late renewal after failure to pay taxes am 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 hoard's denial of a license renewal, but before the administrative hearing begins, $5,000; (4) if a bearers pays its delinquent tax after an administrative hearing that results in a hearing of mr recommendation to deny the license renewal, $10,000. (Eff. 2121/2016, Register 217) Authority AS 17.38.010 AS 17.38.150 AS 17.38200 AS 17.38.070 AS 17.38.100 AS 17.38.900 AS 17.38.121 Article 2. Local Options. eecNov Semi® 200. 1m1 options M. EfiS o0 5mvees of rnhiction m 210. Chsvxeufiswleptios sale 220. Beacon] or beat spam 260. Notim ofthe t®ulb ofs Imal option el i 230. Prov um fa best option election Sm 210. lidabitim of importation or Pur chvw ener erection 3 AAC 306.200. Local options. (a) If a majority of the persons voting on the question vote to approve the option, or if a local government's assembly or city council passes an ordinance to the some effect, the local government shall adopt a local option to prohibit (1) the sale or importation for sale of marijuana and any mari- juana product; (2) the operation of any marijusna establishment, including we or more of the following license types: (A) a retail marijuana store; (B) a marijuana cultivation facility; (C) a marijuana product manufacturing facility, (D) a marijuana testing facility. (h) A ballot question to adopt a local option under this section must 1149 Page 71 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 72 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 366.210 A1AsxAAmwNlarnAnve Cone 3 AAC 306.220 at least contain language substantially similar to: "Shall (name of local government) adopt a local option to prohibit (local option =der (a) of this section)? (yes or an)." (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 n local government dissolves under AS 29.06A60, my mari- juana 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. (I) Nothing in 3 AAC 306.200 — 3 AAC 306.260 procludes a local government from applying fnr a marijuana establishment license under other provisions of this chapter. (Eft 7121/2016, Register 217) Aatherft, AS 17.88.020 An 17:18:100 AS 17.39.000 AS 17,U190 AS 17=210 3 AAC soa.21o. Change of local optiam Ya majority of persona voting on the question vote to approve a local option different from one previously ndopted under 3 AAC 306200 and currently in effect, or if the local governments assembly or city council posses an ordinance to the seine effect, the local government shall change the local option to the newly approved option. A ballot question to change a local option under this amdonmust at imat contnin language substantially similar to: "Shall (name of local government) change the local option currently in effect, that prohibits (corset brcnl nptiont, and adopt in its place a local option to prohibit (proposed local option)? (yes or no)." (Etf. 2/212016, Register 217) Aulh.rar•. AS 17UM20 AS 1728.200 AS 17.39.900 AS 17.38.190 AS 17119.210 3 AAC 308.220. Removal of local option. (a) If u majority of the pennons Vining an the question vote to remove a local option previously adopted under 3 AAC 306.200 or 3 AAC 306.210 and currently in cirmt, or if a local gnvernmenCs assembly or city cauucil passes an ordinance to the same effect, that ]me] option is repealed effective the first day nfthe month after the electinn is certified. Aballot question to remove n local option under this section meet 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 govern- ment that has removed a local option, the board will give priority to any formerly licensed applicant whose license was not renewed be- muse of the results of the previous local option election. However, an 1160 Page 72 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 73 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.230 Cnuusace, Couu17ar1v, me Ec. Dsv. 3 AAC 306.240 applicant described in this subsection does not have a legal right to a license and the board is not required to approve the application. (Eff. 7121/2016, Register 217) Auduaitp AS 17.38.020 AS 1738200 AS 17.98.900 AS 17.96.100 AS 1728210 3 AAC 308.2.90. Procedure for local option election. When it receives a petition to adopt, change, or remove a local option under 3 AAC 306.200 — 3AAC 306.220, the local govermnent shall conduct the election in compliance with the initiative process under the local government's election ordinances and regulations and the applicable provisions of AS 29. (EH. 7!21/2016, Register 217) AuWorft r AS 1728.020 AS 1726200 A9 17.36.600 AS 1758.190 AS 1758210 3 AAC 308.240. Prohibition of importation or purchase after election. (a) If a majority of the voters vote to prohibit the importa- tion for sale of marijuana and any marijuana product under 3 AAC 306.200(aXl), 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 wiiWn 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.IlMa) 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 miginates and terminates in a place that does not prohibit importation and purchase of marijuana or a marijuana product. (d) In this section, (1) "bring7 means to carry or convey or to attempt or solicit to carry or convey, (2) "send" (A) means to cause to be taken or distributed or to attempt or solicit or cause to be taken or distributed; (B) includes use of the United States Postal Service; (3) "transport" (A) men. to ship by any method; (B) includes delivering or transferring or attempting or solicit- ing to deliver or transfer marijuana or marijuana products to be 1161 Page 73 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. 3 AAC 306.250 At ,w Auluammrne C-nw 3 AAC 306.260 shipped to, delivered to, or left or held far pickup by any person. (Eff. 2/2112016, Register 217) Authority: AS 19.38.020 AS 17.38200 AS 17.38900 AS 17.38.100 AS 17.38210 3 AAC 306260. Effect on licenses of restriction on sale. If a majority orthe 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 will not issue, renew, or transfer to another person a license for a marijuana establishment with premised located within the boundary of the local government or in the unincor- porated area within 10 miles of the boundaries of the local government. A license for a marijuana establishment within the boundary or the local government or in the unincorporated area within 10 miles of the boundary or 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 he extended until it is void under this section, by payment of a prorated portion of the annual license fee. Mr.. 212112016, Register 217) Amhneitn AS 17:18.030 AS 17.3x200 AS 1790800 AS 17.38.100 AS 17.30210 3 AAC 306260. Notice of the results of a local option election. 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 qty council pastes an ordinance to the same effect, the board i ill notify the Department of Law and the Department of Public Safety of the results of the election. (Eff. 212]/2016, Register 217) Authorit, AS 1798.020 AS 1798200 AS 17989W AS 1798.180 AS 1798210 Article 3. Retail 117arijuana Stores. Section Son Retail u injuann alms litems re- quired 305. Ratdl nariiuim sten Privilege. 310. Acs P"bun n! at n nn narbuina isre 315. Applinnti. rm retail nerijuam etas acerae 320. Mariioam haailer permit required 325. A. re.tricted at resell e a ii. ,tore aecuon 330. Sfirij. inonan" tracking .y. - tem 335. Health and,afety requmnaens No. 7lating• required 0u niry'uam and nadjuana produce, 345. Pat�a¢u�n and tabehug 350. IdmtiOeeUna unwoonot b r— vmt.ale to paean under 21 385. Limit an quantity add M. Revor"m on advensing of nari- jumn and nwriduam produoin 1152 Page 74 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 75 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.300 Couelsscs, Cotluunnv, um Ec. D".. 3 AAC 306.305 3 AAC 806.300. Retail marijuana atom 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 bas obtained a retail marijuana atom license from the board in compliance with this chapter, or is an employee or agent acting for a licensed retail marijuana atom operating in compliance with this chapter. A peraon seeking a retail marijuana store license most (1) submit an application for a retail marijuana atom license on a form the board prescribes, including the information act out under 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 (R) 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 am located. (b) A licensee of any retail marijuana store, or an employee or agent of a retm'1 marijuana atom, may not have an ownership interest in, or a direct or indirect financial interest in a licensed marijuana testing facility. (E2 2/21/2016, Register 217) . Autboritr. AS 173Bn10 AS 1739.160 AS 173 200 AS 17.98.010 A9 17.38.190 AS 17.38.900 AS 17.3x.1•!1 3 AAC 300.305. Retail mnrljunna atom privileges. (a) A li- eonsed mull marijuana amre is authorized to (1) sell marijuana purchased from a licensed marijuana cultiva- tion 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 o6 the licensed premises; (2) sell a marijuana product purchased from a licensed marijuana prr9luct manufacturing facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.665, and 3 AAC 306.570, in a quantity not exceeding the limit set out in 3 AAC 306.355, to an individual on the licensed premises for consumption off the licensed pmmises; (3) atom marijuana and marijuana products on the licensed premises in a manner consistent with 3 AAC 306.710 — 3 AAC 306.720; (4) with prior approval of the board, permit consumption of marijuana or a marijuana product purchased on the licensed prem- ises, in a designated area on the licensed premises. (b) This section dors not prohibit a licensed retail marijuana atom from refusing to sell marijuana or a marijuana product to a consumer. (Etf. 2(21/2016, Register 217) 1153 Page 75 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 76 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.310 AL gm An+mvvm n a CAme 3 AAC 306.315 Auth.cUr. AS 17.38.010 AS 17.36.150 A5 17.38-200 AS 17M.070 A9 17.3tl.390 A5 1756.D00 AS 17.98.121 3 AAC 306.310. Acts prohibited at retail marijuana store. (a) A licensed retail marijuana atom may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver, marijuana or a marijuana product (1) to a person under 21 years of age; (2) to a person that is under the influence ofan alcoholic beverage, inhalant, or controlled substance; (3) that is not labeled and packaged as required in 3 AAC 306.345 and (A) 3 AAC 306.470 and 3 AAC 306.475; or (B) 3 AAC 306.665 and 3 AAC 306.570; (4) in a quantity exceeding the limit set out in 3 AAC 306.355; (5) ever the Internet; o licansed retail marijuana atom may only sell marijuana or a marijuana product to a consumer who is physically present on the licensed premises; (6) after the expiration date shown on the labol of the marijuana or marijuana product (b) A licensed retail marijuana atom may not (1) conduct business on or allow a consumer to access the retail marijuana stores licensed premises between the hours of 6:00 a.m. and 8:00 a.m. each day; (2) allow a person to consume marijuana or a marijuana product on the retail marijuana stows licensed premises, except as provided in 3 AAC 306.305(u)(4); (3) offer or deliver to a consumer, as a marketing promotion or for any other reason, (A) Gee marijuana or marijuana product, including a sample; or (B) alcoholic beverages, free or for compensation. (Eff. WL12016, Register 217) Authority, AS 17.9&010 AS 1758.150 AS 17.98.200 AS 17.38.070 AS 17.98.1811 AS 17.38" AS 17.38.121 3 AAC 306.316. Application for retail marijuana store ti - cense. A person seeking a new retail marijuana amre license, must submit an application on a farm the board prescribes, including the information required under 3 AAC 306.020 and (1) a copy of the food safety permit required under 18 AAC 31.020(a); and (2) in the operating plan required under 3 AAC 306.020(c), a description of the way marijuana and marijuana products at the retail marijuana afore will be displayed and sold. (Eff. 2/2112016, Register 217) 1154 Page 76 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 77 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.320 Coa asnce, Coaausm; Ana Ec. Dm 3 AAC 306.330 Authority: AS 17.9&010 AS 17]9.150 AS 17.39200 AS 1739.070 AS 17.39.190 AS 17.39.000 AS 17.39.121 3 AAC 306.320. Marijuana handler permit required. A retail marijuana atom shall ensure that (1) each licensee, employee, or agent who is required or permitted to be physically present on the licensed premises at any time obtains a marijuana handler permit as provided in 3 AAC 306.700 before being licensed or employed at a retail marijuana atom; and (2) each licensee, employee, or agent has that person's marijuana handler permit card in that person's immediate possession, or a valid ropy on file on the premises, at all times when on the licensed premises of the retail marijuana atom. (Efi. 2/21/2016, Register 217) Authority: AS 1739.010 AS 1739.150 AS 17.39200 AS 17.38.070 AS 17.39.190 AS 17.309110 AS 17.38.121 3 AAC 306.325. Access restricted at retail marijuana store. (a) A person under 21 yearn of age 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 most 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 Stores licensed promises where marijuana or any marijuana product is stacked fur sale or dispensed for sale is a restricted access area. The retail marijuana store meat post signs, require identification, and escort visitors in compliance with 3 AAC 306.710. (E6. 212112016, Register 217) Authority: M 1738010 A3 1738.160 AS 17.38200 AS 17J8.070 AS 1738.190 AS 17.38900 AS 17.39.121 3 AAC 306.330. Marijuana inventory tracking system. (a) A retail marijuana store shall use a marijuana inventory tracking system as provided in 3 AAC 306.730 to ensure all marijuana and marijuana product in the retail marijuana stores pousessiun is identi- fied 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 marijuana from a marijuana cultivation facility or mari- juana product From a marijuana product manufacturing facility is delivered or transported to the lic,ased promises of retail marijuana alum, the retail marijuana atom shall immediately enter identification information fur that batch of marijuana or lot of marijuana product into the retail marijuana atoriA marijuana inventory tracking system. 1155 Page 77 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 78 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.335 AIA Anmlmnawms Cons 3 AAC 306.345 A retail marijuana store may not accept marijuana or a marijuana product that does not have a valid transport manifest generated from the marijuana inventory tracking system of the marijuana establish- ment that originated the delivery. (c) Aretail marijuana atom shall reconcile each transaction from the retail marijuana atom's point-of-sale system and current inventory to its marijuana 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 retail marijuana atom received and the quantity it sold, transferred, or disposed of. (E(f. 212112016, Register 217) Autlwrlty: AS 17.38A10 A9 17aa.150 A9 1].38200 AS 1738.m0 AS 17.38.190 AS 17.38.900 AS 17.38.121 3 AAC 306.335. Health and safety requirements. A retail mar- ijuana store shall comply with each applicable health and safety requirement set out in 3 AAC 306.735. (Eff. 2121/2016, Register 217) Autharino AS 17.38.010 AS 17.38.150 AS 17.39200 AS 17.38.070 AS 17.98.190 AS 1738.900 AS 17.38.121 3 AAC 306.340. '[f=eting required for marijuana and marl- juana products. A retail marijuana stop= may not sell, give, distrib- ute, deliver, or offer to sell, give, distribute, or deliver, marijuana or a 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. (Efi: 212112016, Register 217) Authority: AS 17MBIO AS 17.38.160 AS 1738.200 AS 1738.070 AS 17.38.190 AS 1738.900 AS 1733.121 3 AAC 306.345. Packaging and labeling. (a) A retail marijuana store shall assure that (1) marijuana sold on its licensed premises is packaged and labeled in compliance with 3 AAC 306.470 and 3 AAC 306.475; (2) any marijuana product sold on its licensed premises is pack- aged and labeled in compliance with 3 AAC 306.565 and 3 AAC 306.570; and (3) marijuana or a marijuana product sold is packaged in opaque, resealable, child -resistant packaging when the purchaser leaves the retail section of the licensed promises; the packaging most be designed or constructed to be significantly difficult for children under five years of age to open, but not normally difficult for adults to use properly. (b) In addition to labeling requirements provided in (a) of this 1156 Page 78 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 79 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.350 Co,azacz, Conauat7v, sao Ec. DW.. 3 AAC 305.355 section, a retell marijuana atom shall affix a label to each package of marijuana or marijuana product that (1) identifies the retail marijuana store selling the marijuana product by name or distinctive logo and marijuana establishment license number, (2) states the total estimated amount of THC in the labeled product; and (3) contains each of the following statements: (A) 'Marijuana has intoxicating effects and may be habit fram- ing and addictive."; (B) "Marijuana imPxira concentration, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence."; (C) 'There ere health risks associated with consumption of marijuana'; (D) 'For use only by adults twenty-one and older. Keep out of the reach of children."; (E) 'Marijunna should not be used by women who are pregnant or brsnst feeding.". (Eff. 2121MI% Register 217) Autamtt, AS 17.98010 AS 1728.1511 AS 17.38.200 AS 17.98070 AS 17.98.180 AS 17.38.800 AS 17.99.121 3 AAC 306.360. Identification requirement to prevent sale to person ander 21. (a) A retail marijuana atom shall refuse to sell marijuana or a marijuana product to a person who does not produce a form or valid photographic identification showing that person is 21 years of age or older. (b) A valid form of photographic identification includes (1) an unexpired, unaltered passport; (2) an unexpired. unaltered drivers license, instruction permit, or identification card of a state or territory, of the United States, the District of Columbia, or a province or territory of Canada; (3) an identification card issued by a federal or state agency authorized to issue a drivers license or identification card. (Eff. 2/2111016, Register 217) Authovlty AS 17.38.010 AS 17.38.190 AS 17.38200 AS 17.38M0 AS 1788.180 AS 17.38.900 AS 17.98.121 3 AAC 905.=. Limit on quantity sold. A retail marijuana store may not sell in a single transaction (1) mom than one ounce of usable marijuana; (2) mom than seven grams of marijuana concentrate for inhala- tion, or (3) marijuana or marijuana products if the total amount of mar- ijunna, marijuana products, or both marijuana and marijuana prod - 1157 Page 79 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 80 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.360 ALIgA%AmUNISM-MVE CODE 3 AAU 3U5.36U acts sold contains more than 5,600 milligrams of TIM fE(C 2121/2016, Register 217) Aut6orltyt AS 17.38.010 A5 17.3833 AS 17.38.200 AS 17.98.070 AS 17.38.190 AS 17.38.000 AS 17.38.121 3 AAC 308.360. Restriction on advertising of marijuana and marijuana products. (a) Am -tail marijuana store may have not more than three signs, visible to the general public from the public right-of- ight-o4way, way,that identify the retail marjryam store by its business name. A sign may be placed in the retail marijuana store's window or attached to the outside of the licensed premises. The size of each sign may not exceed 4,8011 square inches. (b) An advertisement for marijuana or a marjjuana product may not contain a statement or illustration that (1) is false or misleading, (2) promotes excessive consumption; (3) represents that the use ofmarijunnahas curative orthempeu- tic effects; (4) depicts a person under 21 years of age ransoming marijuana; or (5) includes an object or character, including a toy, a cartoon character, or any other depiction designed to appeal to a person under 21 years of age, 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 1,000feetoftheperimeterofanychild- nteredfadlity, including a school, a child care facility or other facility providing services to cluldren, a playground or recreation center, a public park, a library, or a game arcade that is open to persona under 21 years of age; (2) on or in a public transit vehicle or public transit shelter; (3) on or in a publicly owned or operated property; (4) within 1,000 feet are substance abuse or treatment facility; or (5) on a campus for postsecondary education. (d) A retail marjjuana store may not use giveaway coupons 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 marjjunna product must contain each of the following warnings: (1) "Marijuana has intoxicating effects and may be habit forming and addictive.'; (2) `Mnrijuana impairs concentration, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence.' (3) "There ars health risks associated with consumption of mari- juana."; 1158 Page 80 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. 3 AAC 306.400 Coaaeace, Commu ,, Aan Ee. thm 3 AAC 306.400 (4) "For use only by adults twenty-one and older. Keep out of the reach of children."; (6) "Marijuana should not be used by women who are pregnant or breast feeding.". (Eli. 2/21/2016, Register 217) Auleoety: AS 17.38.010 AS 17.38.150 A9 1758200 AS 17.38.070 AS 17.36190 AS 17.38.900 AS 1798.121 Article 4. Marijuana Cultivation Facilities. Section 400. M uirvauavinvati.n faceity!issue inquired 40.5. StandaMtgr magi vad ndtivedon fa- dlii ydvilegwandpro.H.n moa 430. Wailed-Hemem culWatod faal- Ipp privileges ed Prohibited acts 420. App muse !or mor0uava sultive- tion L d6ty limn.. 425. Madjusna hnmiler permit requimd 420. HntHAed serosa ams 435. Marham. Invenwry tra.kivg sys- We Seedon 440. Hush ,rod a afety tequiremenaa 445. Slvdsrda for ndavation and pmpe- ration 450. Pr dudiun of medjaana coomntrotc prohibited 455. Seq iml labamtary Lesnng 450. Samples 465. Random sampling 470. Paakagtng f.,u.. 475. ].baling ofmar0usna 480. M:,djuana l to M paid 3 AAC 306.400. Marijuana cultivation facility license re- quired. (a) Except as provided under AS 17.38.020, a person may not plant, propagate, cultivate, harvest, trim, dry, care, package, or label marijuana grown at a place under that persons control or self mari- juana grown at a place under that persons control to a 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 board will issue the following tylx's of marijuana cultivation facility licenses, with the privileges and aubject to the prohibitions set out in 3 AAC 306.405 and 3 AAC 306.410: (1) it 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 fiat under cultivation. (b) A person seeking a standard or limited marijuana cultivation facility license as provided in (n) or this section must (1) submit an application for the applicable marijuana cultivation facility license an a form the board prescribes, including the infor- mation set out under 3 AAC 306.020 and 3 AAC 306.420; and (2) demonstrate to the board's satisfaction that the applicant will operate in compliance with (A) each applicable prevision of 3 AAC 306.400 — 3 AAC 306.480 and 3 AAC 306.700 — 3 AAC 306.755; and (B) each applicable public health, fare, safety, and tax code and ordinance of the state and the local government in which the applicant's proposed Bcensed pmmtaes are located. 1159 Page 81 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 82 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.405 Al gxkfi mrmaTu7nve Com. 3 AAC 306.405 (c) A licensee of a 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 financial interest in a licensed marijuana testing facility. (Eff. 2I2L2016, R:gister 2171 Authoritr. AS 1795910 AS 1795.121 AS 1735200 AS 171a930 AS 17.25.160 AS 17.98.900 AS 1798.570 AS 17.35.190 3 AAC 306A05. Standard marijuana cultivation facintytpriv- ileges and prohibited acts. (a) A licensed standard marijuana cultivation facility is authorized to (1) propagate, cultivate. harvest, prepare, cam, package, atom, 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 facility for testing; (4) store inventory on the licensed premises; any stared inventory most be secured in a restricted access oma suit accounted for in the marijuana cultivation facility's marijuana 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 facili- ty'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 facil- ity that obtains any other marijuana establishment license shall (1) conduct any product manufacturing or retail marijuana store operation in a mom completely separated from the marijuana cultivation facility by a secure door when co -located; and (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 marijuana or a 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, appear- ance, weight, or odor of the marijuana; 1160 Page 82 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 83 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.410 Coaueacs, Costeusrn', Arm Ec. Day. 3 AAC 306.420 (4) except as permitted under a marijuana product manufactur- ing facility Because, extract marijuana concentrate, using any process described in 3 AAC 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 306.47.5. (Eff. 2121/2016, Register 217) Authority: A9 17.3a010 A9 ]798.150 AS 1T.98300 AS 17.99.070 AS 17.38.190 AS 17.36.800 AS 17.36.121 3 AAC 306.410. Limited marijuana cultivation facility: privi. leges and prohibited acts. A licensed limited marijuana cultivation facility (1) has the privileges set out in 3 AAC 305.405(x) and (b), except that it must have fewer than 500 square feet under cultivation; and (2) is subject to each prohibition set out in 3 AAC 306.405(0). (Eft. 221/2016, Register 217) Authorit, AS 17.36.010 AS 17.39.160 AS 17.39300 AS 1756.070 AS 179a190 AS 11.36900 A3 17.36.121 - 3 AAC 306.420. Application for marijuana cultivation facility license. An applicant fur a new standard marijuana cultivation facility license or a new limited marijuana cultivation facility license must file an application no a form the bard prescribes, including (1) the information required under 3 AAC 306.020; and (2) the proposed marijuana "Itivatien facility+s operating plan, including, in addition to the information Mnuired under 3 AAC 3GG.020(c), (A) the wise, of the spam intended to be under cultivntion; (R) the growing medium to be used: IC) fertilizers, chemicals, gasm, and delivery systems, includ- ing carb,m dioxide, management, to be used; (D) the irrigatinn and waste water systems to be used; (E) waste disposal arrangements; (F) odor content; and (G) the testing procedure and pmtocats the marijuana cultiva- tion facility will follow. (E6 2/21/2016, Register 217) Anthoritr. AS 1796.910 AS 1799.160 AS 1759900 AS 175 070 AS 17.36.190 AS 17.39.900 AS 17.36.121 Pditor a rate: 7ba form fur m xpplim- Sm,we u availablsanlirc u pmWded in tion fm a merijuma cultivation facility the editors nate under 3 AAC 300.020. 1161 Page 83 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 84 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.425 AIA KtAam.. Ivmvvnvs Cure 3 AAC 306.435 3 AAC 306.425. Marjjuana handler permit required. A mari- juana cultivation facility shall ensure that each licensee, employee, or agent who is required or permitted to be physically prevent on the licensed promises at any time (1) obtains a marijuana handler permit as provided in 3 AAC 306.700 before being present or employed at the marijuana cultiva- tion facility's licensed premises; and (2) bas the marijuana handler permit card in the person's imme- diate possession, or a valid ropy on file on the premises, at all times while on the marllvana cultivation facility's licensed premises. (E6 2/21/2016, Register 217) Authority: AS 1738.010 AS 1758.190 AS 17.36.200 AS 1736.070 AS 17.29.160 AS 1758.000 AS 17.38.121 3 AAC 306.430. Restricted access area. (a) A marqunna culti- vation facility shall conduct any operation in a restricted access 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 expense of open or cleared ground fully enclosed by a physical barrier. 7b obscure public view of the premises, outdoor production must be enclosed by a sight -obscuring wall or fence nt least six feet high. (c) Amarijuana cultivation facility shall ensure that say marijuana at the marijuana cultivation facility (1) cannot be observed by the public from outside the marijuana cultivation facility, and (2) does not emit an odor that is detectable by the public from outside the cultivation facility except as allowed by a local govern- ment 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 stared, or where marijuana waste is destroyed. (ER: 2/2141016, Register 217) Aathoritw A9 17.38.010 AS 17.38.150 AS 17.38.200 AS 173&070 AS 17.38.160 AS 17.38900 AS 1736.121 3 AAC 306.435. Marijuana inventory tracking system. (a) A marijuana cultivation facility shall use a marijuana 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 1162 Page 84 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 85 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.440 Cowusecs, Commmnrw,um Ec. Dsv 3 AAC 306.440 propagated through transfer to another licensed marijuana establish- ment or destruction. The marijuana cultivation facility shall assign a tracking number to each plant ever eight inches tall. When harvested, bud and flowers, clonal or cuttings, or leaves and trim may be combined in harvest batches of distinct strains, not exceeding five pounds. Each harvest batch most be given an inventory tracking number. Clones or cuttings most be limited to 60 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 need to provide a sample authorized under 3 AAC 306.460 for the purpose of negotiating sales, including (1) the nomeat of each sample; (2) the retail marijuana store or marijuana product mnnufactur- ing facility that received the sample; and (3) the disposal of any expired or outdated promotional sample returned to the marijuana cultivation facility. (EtL 227/2016, Reg- ister 217) AuthartW AS 17.98.010 A5 17.98.160 AS 17.36200 A9 17.38.070 A9 17.38.100 AS 17.34900 A9 1796121 3 AAC 806.440. Heatth and safety requirements. (a) A mari- jeans cultivation facility shall 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 licenser. employee, or agent who is present at the marqunna cultivation fncility and in contact with any marijuana (1) wean 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 than contamination; and (3) practices good sanitation and health habits. (Eft. WUP016, Register 217) Authority: A9 17.38.010 AS 17.38.150 AS 17.38.200 A9 173a070 AS 1738.190 AS 17.38.000 A9 17.38.121 1163 Page 85 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 86 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.445 N.c,:%A giver, alrt%T Caw 3 AAC 306.455 3 AAC 306.445. Standards for cultivation and preparation. A marijuana cultivation facility shall use registered scales in compliance with AS 45.75.030 and 3 AAC 306.745. (E(f. MU2016, Register 217) Audwrily: A6 1758.010 AS 17.39.100 A6 17.38.200 AS 17.38.070 AS 1738.100 AS 17.98.000 AS 1716.121 3 AAC306.450. Productienofmarijuanaconcentrateprohlh- ited. A marijuana cultivation facility may not produce or possess marijuana concentrate that was extracted using any process described in 3 AAC 306.455 on the marijuana cultivation facility's licensed premises unless the marijuana cultivation facility also has a mari- juana product manufacturing facility license. Any extraction or pro- duction of mnrljunna concentrate on the promises of a licensed mari- juana cultivation family must (1) he in a separate room that (A) is physically separated by a secure door from anyealtivation arca; and (B) has a sign that clearly identifies the room as a mnrijunna 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. (E0: 2121/2016, Register 217) Authority: AS 17.38.010 AS 17.38.150 AS 17.98.900 AS 17.38.070 AS 17.38.100 A9 17.38.000 AS 17.98.121 3 AAC 306.455. Required laboratory testing. (a) 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 under 3 AAC 306.645 has been completed. (h) 7b comply with (a) of this section, a marijuana cultivation facility shall (1) collect a random, homogenous sample for testing by segregat- ing harvested marijuana into batches of individual strains of bud and Hower, then selecting a random sample from each batch 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 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 306.765; and 1164 Page 86 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 87 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.460 Commence, Couuuarrr, Aso Ec. Dsv. 3 AAC 306.460 (3) transport the sample to the marijuana testing facility's It- censed premises in compliance with 3 AAC 306.750. (c) A marijuana cultivation facility shall segregate the entire batch from which the testingsample 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 sam- ple shall maintain the batch in a secure, coal, and dry location to prevent the marijuana from becoming contaminated or losing its efficacy. The marijuana cultivation 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 cultivatian facility that provided the sample. The marijuana cultivation facility shall maintain the testing results as part of its busineas books and records. (Eff. 2/21/2016, Register 217) Autlrorina AS 1759.910 AS 17.39.160 AS 17.38,200 AS 17.39.70 AS 17.38.190 AS 17.39.900 AS 17.39.141 3 AAC306.460. Samples.(a) Amarijuana cultivation facility may provide a free sample of marihuana to n retail marijuana store if packaged in a sample jar containing not more than three and one-half 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 marijuaae to a retail marijuana store or marijuana product manufac- turing facility as follows: (1) a sample provided for the purpose of negotiating a sale maybe not mom than one ounce; (2) a marijuana cultivation facility may not provide any one licensed retail marijuana store or marijuana product manufacturing facility with mom than one ounce of marijuana per month frce-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 marijuana cultivation facility that provided the sample; or (2) destroy the marijuana sample alter use and document the destruction in the retail marijuana stores marijuana inventory control system. (Eff. 2121/2016, Register 217) Authark , AS 1758.010 AS 175aIN A9 17.98400 AS 1759.070 AS 17.38.100 AS 17.39.900 A3 17.9.121 1165 Page 87 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 88 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.465 AtAssA AuueaMLIMP. Cnm' 3 AAC 306.470 3 AAC 306.465. Random sampling. (a) The board will or the director shall from time to time require a standard or Bmited mari- juana cultivation facility to provide samples of the growing medium, soil amendments, fertilizers, crop production aids, pesticides, or water for random compliance checks. The sample may be screened for pesticides and chemical residues, screened for unsafe levels of metals, and used for other laboratory teats 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 shall identify n licensed marijuana testing facility to perform the testing. The marijuana testing facility shall collect the test samples. The marijuana cultivation facility shall cooperate to facilitate the collection of samples. (Eff. 212112016, Regis- ter 217) AuthoAty. AS 17.98.010 AS 1738.150 AS 17.98.200 AS 17.98.070 AS 17.98.190 As 17.38.900 AS 1738.121 3 AAC 306.470. Packaging of marijuane.(a) A marijuana culti- vation facility shall package its marijuana bud and flower for sale (1) to a retail marijuana store, either (A) in a package not exceeding one ounce for resale to consum- ers without additional handling by the retail marijuana store except to add the retail marijuana store's own (i) identifying name or logo; and (ii) 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 (A) not exceeding five pounds; and (B) consisting of a single strain or a mixture of strains as identified on the label. (b) When a marijuana cultivation facility packages marijuana for a retail marijuana atom to sell to a consumer without repackaging, the packaging may not have any printed images, including cartoon than asters, that specifically target persons under 21 years of age. in addition, the packaging must protect the product from contamination and may not impart any toxic or damaging substance to the marijuana. (c) Each package prepared in compliance with this section must be identified by a tracking label generated far tracking by the marijuana cultivation facility's marijuana inventory tracking 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, 1166 Page 88 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 89 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.475 Cmacsxee, CmmuNrnt Atm Ec. Dee. 3 AAC 306.475 (2) affixing a label in compliance with 3 AAC 306.475 to the shipping container, and (3) generating a transport manifest from the marijuana cultiva- tion facility's marijuana inventory tracking system; the transport manifest most remain with the marijuana at all times while being transported, and a copy most be given to the licensed marijuana establishment that receives the shipment. (Eff. 2!21!2016, Register 217) AathsrUr AS 17.58.010 AS 17.38.150 AS 17.38200 AS 17.38.070 AS 17.38.190 AS 17.38900 AS 17.38.121 3 AAC 306.476. Labeling of marjjuana. (a) When a 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 each of the following statements: (1) "Marijuana has intoxicating effects and may be habit forming and addictive.' (2) `Marijuana impairs concentration, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence."; (3) `rhere am health risks associated with consumption of mari- juana."; (4) 'Far use only by adults twenty-one and older. Keep out of the reach of children."; (5) 'Marijuana should not be used by women who aro pregnant or boast feeding.". (b) With each harvest batch of marijuana sold, a marijuana cultiva- tion facility shall disclose in writing (1) each sail amendment, fertilizer, and other crop production aid applied to the growing medium or marijuana plant included in the batch, including any pesticide, herbicide, or fungicide that was used; and (2) the name of the licensed marijuana testing facility that per- formed any required laboratory teat and the results of each required laboratory test (c) A marijuana cultivation facility may not label marijuana As organic. (d) 1b each package of mar(jumna sold to another marijuana estab- lishment, a marijuana cultivation facility shall affix a label setting out. (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, (A) not including weight of the shipping container; and (B) using a standard of measure compatible with the marijuana cultivation facility's marijuana inventory tracking system; and 1167 Page 89 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 90 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.480 At ts"Anuaa vnvs COVE 3 AAC 306.480 (4) a complete list of all pesticides, fungicides, and herhicides used in cultivation of the marijuana. (e) If a marijuana cultivation facility transports wholesale mari- juana to another marijuana establishment for sale at retail or for use in manufacturing a marijuana product, a label most be affixed to the shipping container showing that a licensed marijuana testing facility line tested each harvest batch in the shipment as provided in 3 AAC 306.646. 7be label must report the test results, including (1) a cannabinoid potency profile expressed as a range of percent- ages that extends from the lowest percentage to highest percentage of concentration for each eannabinoid listed from every test con- ducted 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 under 3 AAC 306.645(6)(2); (3) a statement listing the results of residual solvent testing required under 3 AAC 306.645(b)(3), if applicable; and (4) a statement listing any contaminants for which the product was tested in addition to contaminants for which 3 AAC 306.645(6) requires testing; any additional tested contaminants include (A) molds, mildew, and filth; (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 tliat harvest hatch has not been tested. (B(f. 2121/2016, Register 217) Authority: As 17.38.010 As 17.38.160 As 17.38200 As 17.38.070 A8 17.38.180 As 1728.900 As 17.39.121 3 AAC 306A80. Marijuana tax to be paid. A marijuana cultiva- tion facility, including a standard marijuana cultivation facility and a limited marijuana cultivation facility, shall submit monthly reports to the Department of Revenue and pay the excise tax required under AS 43.61.010 and 43.61.020 on all marijuana sold or provided as a sample to a marijunna establishment. (Eff. 2/21/2016, Register 217) Authority: A 17.38.010 A 17.38.111 As 17.38200 AS 17.38.030 AS 17,38.160 AS 17.38.900 A3 17.88.070 AS 17,38.190 1168 Page 90 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 91 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.500 COMMENCE, Countmrtr, min Ec. Dm 3 AAC 306.505 Article 5. Mnrijuaua Product Manufacturing Facilities, aeaaov 6eetion 600. Marijuana pmdua ananc turiug 530. Marijuana handler Perna and food facility brenae no, d safety w.,ker traiumg 605 Mar vmn pr-d� ,r,,,-finx 636.Hrstrirtrd mews and atom1ra arena lecility privileem 610. 6,s, j.aoa InventarY no 9 eye. 610.A pmbibimd at marijuana produn. W. 11.1d, and wrety,sa ana manufaaurivg facility M. Ltequv d Iabommry tearing 515. Marijuana mnren4am manufadur- 555. Produrlion or maryunna renranuule ing faduty liretue M. Potmry Brow or serving end trans. 620. Applimti® for maryuano pendant actin for ddde marpuana prod- manufacmring farildy borne, ucta 525. Arprmal of mran alar and marl- 565. Pehaging of rU.- Prdom )nava prnd.rta 570. labeling.r anob.nna preduM 3 AAC 306.500. Marijuana product manufacturing facility license required. (a) A person may not extract mar{juana concen- trate for sale or formulate or manufacture any marijuana product for sale unless that person has obtained a marijuana product manufac. turing 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 licenae. (b) A person seeking any type of marijuana product manufacturing facility license most (1) submit an application for a mnrijuana product manufacturing facility license on a form the board prescribes, including the infor- mation set out under 3 AAC 306.020 and 3 AAC 306.520; and (2) demonstrate to the board's satisfaction that the applicant 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 306.756; 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 promises ore located. (c) A licensee of a marijuana product manufacturing facility, or an employee or agent of a marjjuam product manufacturing facility, may not have an ownership interest in or a direct or indirect financial interest in a licensed marijuana testing facility. (E6 =1=16, Reg. ister 217) Aatborltyr. AS 17.38010 AS 17.38.150 AS 17.38200 AS 17se.mo As 1730.190 M 172ssoo As 17.38.121 3 AAC 306.606. Marijuana product manufacturing facility privileges, Except as provided in 3 AAC 306.515, a licensed mari- 1169 Page 91 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 92 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.510 AL,�K.\Aa%uHvmumn C cur. 3 AAC 306.510 juana product manufacturing facility, including a marijuana concen- trate manufacturing facility, is authorized to (1) purchnse marijuana from a marijuana cultivation facility or from another marijuana product manufacturing tactility-,, (2) extract marijuana concentrate in meopliance with 3 AAC 306.655; (3) manufacture, refine, process, cook, package, label, and store marijume products approved under 3 AAC 306.525, including (A) murpunna concentrate; or (B) any product intended for mnsumplion or use on the body that is comprised of marjjuana 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 atom or to another limned marijunna product manufacturing facility; (5) provide and transport samples of marijuana concentrate or other marijuana product to a licensed marijuana testing facility for testing. (6) provide a sample of marijuana concentrate or a marijuana product approved under 3 AAC 306.525 to a licensed retail mari- juana atop: for the purpnse of negotiating a sale; (7) store inventory in a restricted access area on the licensed premises us provided in 3 AAC 306.635; (8) transport marijuana in compliance with 3 AAC 306.750; (9) conduct in-house testing for the marijuana product manufac- turing facility's own use. (Elf. 7121/2016, Register 217) AoM.rity: ns 17M.ato As 17.38.150 A3 17.38200 A9 173s.mo As 17.38.190 As 1738.000 As 17.38.121 3 AAC 306.510. Acta prohibited at marijuana product manu- facturing facility. (n) A licensed marijuana product manufacturing facility, including a licensed marijuana concentrate manufacturing facility, may not (1) sell, deliver, distribute, or transfer marijuana, marijuana conmramte, or a marijuana product directly to a ransomer, with or without mmpensation; (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 mnsume marijuana, marijuana concentrate, or a maruuana product on the licensed premises; (4) manufacture or sell any product that (A) is an adulterated food or drink; (B) closely resembles a familiar food or drink item including ready; or 1170 Page 92 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 93 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 305.515 CommzRcx, Ccnmi :vl -4 atm Ee. Dw.. 3 AAC 306.620 (C) is packaged to look like candy, or in bright colors or with cartoon character; or other pictures or images that would appeal to children. (b) A licensed 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 facility that provided the marijuana; and (2) a valid transport manifest showing the source and destination of the marijuana is attached to the shipment. (c) In this section, "closely resemble" or gook like" means the product or its parknging has a shape, color, markings, or decorative patterns that arc familiar to the public from a widely distributed branded food product, so that the marijuana product could reasonably be mistaken for that branded product, especially by children. (ER. 7J2ll2016, Register 217) Authorfty. AS 17.99.010 AS 17.39.150 AS 1719200 AS 179a070 AS 17.99.100 AS 17M son AS 17.99.121 3 AAC 306.515. Marijuana concentrate manufacturing facil. ity license. A licensed marijuana concentrate manufacturing facility has the privilegrs act out in 3 AAC 306.505, except that it may not (1) manufacture, refine, process, cook, package, label, or atone any marijuana product other than marijuana concentrate; (2) sell, distribute, or deliver a marijuana product other than marijuana concentrate to a retail marijuana stare or to another marijuana product manufacturing facility; (3) provide or transport a sample of a marijuana product other than marijuann concentrate to a licensed marijuana testing facility for testing; or (9) provide samples of a product other than marijuana cuncen- trota to a linmsed retail marijuana atom for purposes of negotiating a sale.(Eff. 7121)'016, Register 217) AuMnrUp Aa 17.38.010 A.S 17.79.1.50 A9 17.99200 AS 17.38.07n AS 17.39.190 AS 17.39900 AS 1719.121 3 AAC 306.520. Application for marijuana product manufac- turing facility license. An applicant for a marijuana product man- ufacturing facility license, including a marijuana concentrate manu- facturing facility license, must file an application on a form the board proscribes, and provide the infnrmation required under 3 AAC 306.020 and (1) a copy ofn food safety permit if required under 18 AAC 31.020 1171 Page 93 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 94 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.525 AI ssaAmammunvs Coor. 3 AAC 306.525 from the Department of Environmental Conservation or a munici- pality with authority delegated under AS 17.20.072 and 18 AAC 31.945; (2) a diagram of the proposed licensed premises required in 3 AAC 306.020(6), identifying the area where (A) in-house testing, if any, will occur, and (B) marijuana and any marijuana product, including marijuana concentrate, will be stared; (3) in the applicant's operating plan required under 3 AAC 306.020(c), a description of (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., ingrvdienL9 and standard productinn 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; (D) sample labels showing how the labeling information re- quired in 3 AAC 306.570 will be set out; and (E) the applicant's plan for disposal of waste. (Elf. 2/21/2016, Register 217) Authority: AS 17.38.010 AS 17.38.150 AS 17.33200 AS 17.3a.070 AS 17.38.190 AS 1758.900 AS 17.38.121 Editor's noir. The form for an awlim- trete mmufarturiog facility license u ties for a mmijuana produce manufactur- available online as pmeided in the editor's ing facility limvae or a marijuana mncem note under 3 AAC 306.M0. 3 AAC 306.525. Approval of concentrates and marijunna products (a) A marijuana product manufacturing facility, including a marijuana concentrate manufacturing facility, most obtain the boards approval for each product it will manufacture for este or transfer to another licensed marijuana establishment. The board will not approve a product that is prohibited under 3 AAC 306.510(aX4). (b) An applicant for a marijuana product manufacturing facility license may request the 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 ex- pected 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 the fee required under 3 AAC 306.100(c). (d) A licensed marijuana product manufacturing facility shall keep 1172 Page 94 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 95 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.530 Coulrst4, CelnlnaM,, Axa Ec. Dsv. 3 AAC 306.535 its ingredient list and potency limits for any food product containing marijuana an file at the marijuana product manufacturing facility's licensed premises. The ingredient list and potency limits for any product manufactured at the facility most be made available for inspection on request by the director, or an employee or agent of the board. (Etf. 2121/1016, Register 217) Author[W. AS 17.3&010 AS 27.33.150 AS 17.38200 AS 17.38.070 AS 21.38.290 AS 17.38.000 AS 17.38.121 3 AAC 306.530. Marijuana handler permit and food safety worker training. (a) A marijuana product manufacturing facility, including a marijuana concentrate manufacturing facility, shall ensure that each licen=ce, employee, or agent who is required or permitted to be pbynically present on the licensed promisee at any time (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 imme- diate possession, or a valid copy on file on the premises, at all times while an the marijuana product manufacturing facility's licensed premises. (b) A licensee, employee, or agent of a marijuana product manufao turing facility who handles marijunna at the facility shall obtain a final worker card in compliance with 18 AAC 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. (ER 2121/2016, Register 217) Authority. AS 17MO10 A9 17.38.150 AS 17.38.200 AS 17.38.070 AS 17.88.100 AS 17.38.000 AS MIS 121 3 AAC 306.635. Restricted access and storage aveaa. (a) A marijuana product manufacturing facility shall conduct any extraction or product manufacturing operation in a restricted occem area in compliance with 3 AAC 306.710. (b) A marijuana product manufacturing facility shall have full video surecillance of the licensed premises us provided in 3 AAC 306.720, including each area where (1) marijuana concentrate is produced; (2) any operation involved in manufacturing any product contain- ing marijuana occurs; (3) marijuana or a marijuana product is stared or stockpiled; or (4) marijuana waste is destroyed. (c) Any area where marijuana or a marijuana product is stared must be moisture- and temperatum-cantmIlled and protected from pests and vermin. (EIC 2/21/2016, Register 217) 1173 Page 95 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 96 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 300.540 Ai s"AummISTni Nl: Gnn: 3 AAC 306.545 Authndun AS 1738.010 AS 1739.100 AS 1739200 AS 17.98X70 AS 1739.190 AS 17.39900 AS 17.98.121 3 AAC 306.640. Marijuana Inventory tracking system. (a) A marijuana product manufacturing facility shall use a marijuana in- ventory tracking system as provided in 3 AAC 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 origi- nally received, or any marijuana product manufactured at that marijuana product manufacturing facility to another licensed mar- ijuana establishment; and (3) disposal of any expired or outdated marUunna or marijuana product that is not sold or transferred to another licensed marijuana establishment (b) When marijuana from a marijuana cultivation facility or a marijuana product from another marijuana product manufacturing facility is delivered or transported to the licensed promises of a marijumm product manufacturing facility, the marijuana product manufacturing facility shall immediately enter tracking information fm thnt marijuana ur marijuana producL into the marijuana inventory tracking system. A marijuana product manufacturing facility may not accept any marijunna 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 the marijuana product manufacturing facility's marijuana inventory tracking system at the class 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 sold, transferred, or disposed of. (EIC 2/212016, Register 217) Authnrttp AS 17.38.010 AS 17.98.160 AS 1738200 AS 17M.070 AS 1738.190 AS 1738.000 AS 17.98.121 3 AAC 306.645. 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, 18 AAC 31 (Alaska Food Code), 1174 Page 96 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 97 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.550 Commsaca, Comm ,, Asn Ec. Day. 3 AAC 306.550 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. 2121/2016, Register 217) Amhadtrr. AS 17.98.030 AS 17.38.150 AS 17.38.M AS 17.39.070 AS 1738.100 AS 17.38 .000 A9 17.38. 121 6 AAC 306.550. Required laboratory testing. (a) A marijuana product manufacturing facility shall provide a sample of each mari- juana product manufactured at the facility to a licensed marijuana testing facility, and may not sell or transport a marijuana product until all laboratory testing required under 3 AAC 306.645 has been com- pleted. (b) 7b comply with (a) of this section, a marijuana product n mu. faeturing facility shall (l) 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 randomly selected for testing, (D) 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 eamplo for testing, a mari- juana product manufacturing facility shall segregate the entire pro- duction lot from which the testing sample was selected until the marijuana testing facility reports the results from its teats. 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 marijuame product from becoming contaminated or losing its efficacy. The marijuana product manufaes Luring facility may not sell or transport nay marijuana product from the segregated lot until the marijuana testing facility has completed its testing and analysis and provided these 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 husiness records. (ELT. 2/11/2016, Register 217) 1175 Page 97 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 98 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.655 Al.v,&NAnaI.m mvrnvE Cone 3 AAC 366.5.55 Authority: AS 17,'1a.019 AS 1738.150 AS 17.381011 AS 17118.979 AS 17118.190 A5 !7.38.900 AS 17118.121 3 AAC 306.555. Production of marijuana concentrate. (a) Be - fare producing 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 mari- juana concentrates only at follows: (1) water-based marijuana concentrate may be produced by ex- tracting cannabinoids fcom marijuana by using only water, ice, or dry ice; (2) fmd-basedmarijuanamncentratemaybe produced byextract- ing cannabinoids from marijuana through the use of propylene glycol, glycerin, butter, olive oil, or other typical racking fate; infused dairy butter, oils, or fats derived from natural sources may be used to prepare infused edible products; infused dairy butter) oils, or fats may not he prepared as stand-alone edible products for sale; (3) solvent -bused marijuana concentrate may be produced using the hydrocarbons N -butane, isobutane, propane, or heptane or other solvents or gasps the !ward approves that exhibit low to minimal potential human health-related toxicity, approved solvents must be or at least 99 percent purity and must be used (A) in it professional grade closed-loop extraction system do - signed to recover the solvents; (B) in an environment with proper ventilation; and (C) with control of all sources of ignition if a flammable atmo- sphere is or may be present. (c) A marijuana product manufacturing facility using a professional grade closed-loop gas extraction system shall ensure that (1) each vessel is used in compliance with the manufacturers stated pressure ratings; (2) any carbon dioxide used is of at least 99 percent purity, (3) a person using a solvent or gas to extract marijuana concen- trate in the dosed -loop system is fully trained on how to use the system, has direct access to applicable material safety data sheets, and handles and stores 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; and (5) any professional grade closed-loop system, and other equip- ment and facilities used in the extraction process are approved for their use by the local fire code official and 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 1176 Page 98 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 99 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.560 Co ram. Conmuam, um Ec. Dw.. 3 AAC 306.565 (1) kieG (2) hashish; (3) bubble hash; (4) infused dairy butter, oils, or fats derived Gum natural sources; or (5) other extracts. (e) A marijuana product manufacturing facility may use food -grade glycerin, ethanol, and propylene glycol solvents to create extracts. All ethanal meet be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. (ER. 2121A2016, Register 217) Authority: A9 17M.010 Afi 17.39.150 A9 17.39.200 A3 17.99.070 A3 17.39.910 AS 17.39.900 A9 1709.121 3 AAC 806.560. Potency limits per serving and transaction for edible marijuana products. A marijuana product monufactur- ing facility may not prepare a marijuana product with potency levels exceeding the fallowing, as tested in compliance with 3 AAC 306.646: (1) for a single serving of a marijuana product, five milligrams of active tetrahydrocannabinol (THC) or Delta 9; (2) in a single packaged mit of marijuanp product to be eaten or swallowed, not more than 10 servings or 60 milligrams ofactive TRC or Delta 9; the THC motent must be homogenous, or evenly distributed threugbout the marijnana-infesed product. (ER. 2121/2016, Register 217) Authority: A6 17.39.010 A3 17.38.1:0 AS 17M9 W A6 17.3&W0 AS 170a.I90 0417.39000 AS 17.38.121 3 AAC 306.565. Packaging of marijuana products. (a) A mar- ijunna product manufacturing facility shall observe the potency limits set out in 3 AAC 306.660 in packaging each product for resale by a retail marijuana store. (b) A container or packaging for my edible marijuana product produced by a marijuana product manufacturing facility may not have any printed images, including cartoon charactrm, that specifically target individuals under 21 years of age. In addition, the packaging most (1) protect the product from contamination and may not impart any trade or damaging substance to the product; and (2) if the marijuana product contains multiple servings, be de- signed an that the marijuana product itself has markings or demar- cations clavly delineating each serving of the product; for liquid marijuana products with multiple servings, the packaging most indicate the number and size of individual servings. (c) A licensed marijuana product manufacturing facility may trans, 1177 Page 99 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 100 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAI: 300.670 At.vsm Amuse rwvrve Cane 3 AAC 808.670 fer marijuana products that are not edible marijuana products to another licensed marijuana product manufacturing facility in whole- sale packages not to exceed five pounds. (d) Barb packaged marijuana product most be identified by a tracking label generated by the marijuana product manufacturing faciliWe marijuana inventory tracking system. (e) A licensed marijuana product manufacturing facility shall pre- pare marijuana products for transfer to another marijuana establish- ment by (1) placing marijuana product, within a sealed, tamper -evident shipping container, (2) afluing 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 tracking system; the transport manifest must remain with the, marijuana products nt all times while being transported, and a copy must be given to the licensed marijuana establishment that receives the shipment. (Bfi: 2!212018, Register 217) Authority. A8 179aO10 AS 17.8&160 AS 1758500 AS 17.38.00 AS 1799.190 AS 175x.900 AS 177.121 3 AAC 308.570. Labeling of marijuana products. (a) With each production lot of marllusna product sold, a marijuana product manu- facturing facility shall 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. (c) To each package of martimma product sold to a retail marijuana store for resale to a consumer, a marijuana product manufacturing facility shall affix a label setting out (1) the name and license number of the marijuana product man- ufacturing 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, (A) not including weight or packaging, and (B) using a standard of measure compatible with the marijuana product manufacturing fac0iWs marijuana inventory tracking system; and (4) each of the following statements: (A) `Marijuana has intoxicating effects and may be habit form- ing and addictive°; (B) "Marijuana impairs concentration, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence"; (C) 'There are health risks associated with consumption of marijuana"; 1178 Page 100 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. 3 AAC 306.670 Commutes, Cotai rc, Atm Ee- Dhv. 3 AAC 306.570 (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.". (d) Amarijuana product manufacturing facility transporting a mar- ijuana product to a retail marijuana store shall air= a label to the shipping container showing that a licensed morijanna testing facility has tested each lot of marijuana product in the shipment and giving the test results, including (1) a cannabinoid potency profile expressed as a range of percent- ages that extends from the lowest percentage to highest percentage of concentration for each cannabinoid listed from every test con- ducted an 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 under 3 AAC 306.645(b)(2); (3) a statement listing the results of rcwidual solvent testing required under 3 AAC 306.645(6)(3), if applicable; and (4) a statement luting any contaminants for which the product was tested in addition to contaminants for which 3 AAC 306.645(b) requires testinr, any additional tested contaminants include (A) molds, mildew, and filth; (B) herbicides, pesticides, and fungicides; and (C) harmful chemicals. (e) If a marijuana product manufacturing facility ships wholesale marijuana product fmm a production lot of marijuana product that has not been tested for each mntaminmt luted in (d)(4) of this section, the label for that lot must include a statement identifying each contami- nant listed in (d)(4) of this section for which that lot has not been tested.(Eff- 2/21/2016, Register 217) Authnrtty. AS I UMN AS 17M.150 AS 17.86200 AS IT M me AS 17.08.100 M 17.38.90!1 AS 17.04121 Article S. Marijuana Testing Facilities. srctlan 6es6m 600. App0oh0ity M. wndar l opertting p dun a.- sea. sl.,61 ane testing facility 6rrn.e n, 616.!shammy tee[inx of merVuam asci MW pr,,Ute 610. toting f"Wore:minty 1Wvi- rye Chain of cvsinly imUcatidpnhihitiata M. pteriJuem inventory tacking syr 9I6. Alps far merijawe innng fa- tem licca miry li¢nw 660. YeOed material; nlexv 820. Aptaf fariliry 665.&�pPlenwntal mer6uene WelilY ccting PraITam 626. Yreficic6clenq an ta6ng 800. 6eiensf t 6a reri6mlion 70. meg 676, ntiryt mcthd., 7F alagiee 75. tendon 8RewtJe 1179 Page 101 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 102 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.600 Auo Anumlclrw E Qnw 8 AAC 306.606 8 AAC 806.600. Applicability. fa) Tl1e provisions of 3 AAC 306.600 —3 AAC 306.675 apply to a person offering a service testing, analyzing, or mrtifyfng patency, moisture content, pesticide or solvent residue, mold, mildew, bacteria, or other contaminants in marijuana or a marijuana product to another person including a marijunnn estab- lishment or a member of the public, whether for compensation or not, es a independent or third -party tenting facility. (b) The provisions of 3 AAC 306.600 — 3 AAC 806.675 do not apply to a 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 or retail products placed or offered for sale in its retail marijuana store. (Eff. 2(2L2016, Register 217) Aatbsritr AS 1728.010 AS MM.160 M 1728200 AS 17M.070 AS 1728.190 AS 17.98.900 A6 17.3s.191 3 AAC 306.605. Marijuana tenting facility license required. (a) A person may not oM,r or provide a marijuana testing service or Lost results unless the person has obtained a mar0juana testing facility license from the board in compliance with this chapter, or is an employee or agent acting far a licensed marijuana testing facility. (b) A person seeking a marijuana testing facility license most (1) submit an application for a marijuana testing facility license on a form the board prescribes, including the information set out under 3 AAC 306.020 and 3 AAC 306.615; and (2) demonstrate to the board's satisfaction that the applicant (A) will operate in compliance with each applicable provision of 3 AAC 306.600 — 3 AAC 306.675 and 8 AAC 306.700 — 3 AAC 06.765; (B) will operate in compliance with 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 prem - lass are located; (C) dean net hold a marijuana establishment license in this state other than a marijuana testing facility license, or have a financial interest in common with a person who is a licensee of a marijuana establishment in this state other than a marijuana 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 a 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 another licensed marijuana establishment. (Elf W2=16, Register 217) 1180 Page 102 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 103 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.610 Coauvxe, Couaunrn; A.w Fc. De .. 3 AAC 306.620 Authorltp AS 1738.010 AS 1738.150 AS 17.38" M 17.38,070 A9 17.38.100 AS 1738.000 M 17MA21 3 AAC 306.610. Marijuana testing facilities: privileges and prohibitions. (a) A licensed marijuana testing facility may have any amount of marijuana and marijuana products on its premises at any given time if the marijuana testing facility s marijuana inventory tracking system and other records document that all marqusna and marijuana products are on the premises only for the testing purposes descrihed in 3 AAC 306.600 — 3 AAC 06.675. (b) A licensed marijuana testing facility may not (1) have a licensee, employee, or agent who holds a type of marijuana establishment license other than a marijuana testing facility license issued under this chapter, (2) sell, deliver, distribute, or transfer marijuana or a marijuana product to a consumer, with or without compensation; or (3) allow a person to consume marijuana or a marijuana product on its licensed premises. (Eff. 7121/2016, Register 217) Aothoritp A5 17.9a010 As 17as.150 M 17:8.200 A6 17.38.070 A6 17.]8.100 AS 17.38.900 AS 17.38.131 3 AAC 306.615. Application for marijuana testing facility license. An applicant for anew marijuana testing facility license must file on 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, in- cluding, in addition to the information required under 3 AAC 306.026(c), (A) each test the marijuana testing facility will offer; (B) the marijuana testing facility's standard operating procr dura for each test the marijuana testing facility will oller:and (C) the aemptabie range of results for each test the marijuana testing facility will offer. (Elf. 2/21/1016, Register 217) Authority: A3 17.38.010 A 17.38.150 M 17.38.200 A3 17.38.070 A3 17.38.190 M 17.38.000 A3 17.38.131 3 AAC 306.620. Approval of testing facility. (a) A person seek- ing a marijuana testing facility license must first obtain the approval of the board by showing competence to perform each teat the licensee will Offer as an independent third -party testing locality, including tests to identify (1) TITC, Ti ICA. CBD, CDDA and CBN potency; (2) hnrmful miarnhials including Escherichia coli (E. Coli) or sahnmrella; 1161 Page 103 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 104 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.625 Cruz 3 AAC 3110.62.5 (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 beans 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 — 3 AAC 306.675, and 3 AAC 306.700 — 3 AAC 306.755, including (A) qualifications of personnel; (S) the standard operating procedure for each testing method- ology the marijuana testing fncilily, will use; (C) proficiency testing results; (D) quality central and quality assurance; (E) security; (F) chain or cua ndy, (G) specimen retention; (H) space; (1) records; and (J) reporting of results. <d The board will approve a marijuana testing facility license if, after the board or the board's contractor has examined the qualifica- tions and procedures of the marijuana testing facility license applicant, the board finds them generally in compliance with good laboratory practices. Nothing in AS 17.38 or this chapter constitutes a board guarantee that a licensed marijuana testing facility can or will protect the public from all potential hazards of marijuana including micmbials, poisons or toxins, residual solvents, pesticides, or other contaminants. (Efi: 2J21P2016, Register 217) Authority: A3 17.38.010 A3 17.39.150 AS 17.38200 A8 1738.070 A3 17.38.100 AS 17.38.900 AS 17.38.131 3 AAC 308.625. Proficiency testing program. (a) When en ac- credited 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 not earlier than 12 months before receiving n license. The proficiency testing program most require an applicant for a marijuana testing facility license or a participating licensed marijuana testing facility to analyze teat 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 is the positive 1182 Page 104 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 105 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.630 Comeaee, Colo , AS0 Be. DW.. 3 AAC 306.630 identification of 80 percent of the target analytes that the marijuana testing facility reports, and meet include quantitative results when applicable. Any false positive results reported constitute an unsatis- factory 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 seem in a proficiency testing program. (c) The acientific director employed under 3 AAC 306.630 and each testing analyst of an applicant for a marijuana testing facility license and a licensed marijuana testing facility that participated in a profi- ciency test shall sign a corresponding attestation statement The scientific director shall review and evaluate each proficiency teat result. (d) An applicant for a marqunna testing facility license, and a licensed marijuana testing facility participating in the proficiency testing progrnm, shall take and document remedial action when the applicant or the facility meets the standards of (a) of thhs section, but scores less than 100 percent in a proficiency test 7b take and document remedial sell=, the marijuana testing facilitye scientific director shall, at a minimum, review all samples tested and results reported atter the date of the marijuana testing facility's last successful pmfi- ciency test. (Eff. 2121/2016, Register 217) Aut6vrlt, AS 1788.010 AS 1758.160 AS 17.0a200 AS 17.38.070 AS 1758.180 AS 17.8&.800 AS 17.se.lxl 8 AAC SWAM. Scientific, director. (a) A marijuana testing fa- cility shall employ a scientific director who meet be responsible for (1) overseeing and directing the scientific methods of the labora- tory within the maRlunna testing facility; (2) ensuring that the laboratory achieves and maintains quality standards of practice; and (3) supervising nit staff or the laboratory. (b) The scientific director of a marijuana testing facility meet have (1) a doctorate degree in chemical or biological sciences from an accredited college or university and have at least two years of pest -degree laboratory experience; (2) a master's degree in chemical or biological sciences from an accredited college or university and have at least four years of post -degree laboratory experience; and (3) a bachelor's degree in chemical or biological sciences from an accredited college or university and have at least six years of post -degree laboratory experience. (Eff. 2121/2016, Register 217) 1183 Page 105 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 106 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 8 AAC 366.636 At sm Aiu murra% nv Cons 3 AAC 306.636 Aathoctyn AS 17.:8.010 AS 17.39.150 AS 1736.200 AS 17.36.070 AS 1736.190 AS 1736.900 AS 1736.121 8 AAC 306.686. Trsting methodologies. (a) An applicant for a marijuana testing facility license and a licensed marUmma testing facility shall (1) ase as guidelines or references for testing methodologies (A) the American Herbal Pharmacopoeias Cannabis Inflores- cence: Standards of Identity, Analysis, and Quality Contra{ Revi- sion 2014, adopted by reference; and (B) the United Nations Office on Drugs and Crimes Recom- mender) Methods (ar the Identification and Analysis of Cannabis and Cannabis Products: Manual for Use by National Drug Anal- ysis Laboratories, dated 2009 and adapted by reference; and (2) notify the board of any alternative scientifically valid testing methodology the marijuana testing facility proposes to use for any laboratory test it conducts; the board may require third -party validation of any monograph, peer-m%iewod scientific journal article, or analytical method the marUumm testing facility proposes to follow to ensure the methodology produces comparable and accurate re- sults. (b) An applicant for a marijuana testing facility license and the holder of a marijuana testing facility license shall observe good laboratory practices. (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 tenting facility that arc 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 marijuana testing facility's compliance with its quality program. The board may require random validation of a marijuana testing facility's execution of each testing methodology the facility uses- The marijuana testing facility shall pay all costs of validation. (EB 2/21/2016, Register 217) Authority[ AS 1739.010 AS 17.38.150 AS MU200 AS 1738.070 AS 17.39.190 AS 17.38.900 AS 17.89.121 Ediloh nota Canwbis (nAoruenre: Valle, Cali(omL 99067. ar st the Inlemot Smndnrdaefldentity.AnalYru. and Qud. add.. httpl/wnw.huhal-ohp.ord icy Contmi, Rechian 2014. published by The udtrd Nadona DBrean D., and the A.neeirnn Nnrhal Pharmompoeu, ad- Crimea Recommended Mreh.0 f tM pled by cerecenm in 3AAC 306.635. may tdentifcuUan and Arm(yau of Cannabis be obuu d Som the Mu.n a 11.1W aml Cannabu Pl d ru: Manuel hr Un Mm mompoeia, P.D. Sea states. Scetts by Nationd Drug A IYau (aborotonea. 1184 I Page 106 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 107 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.640 COMMLERM, COMMUNITY, sem Ec. Day. 3 AAC 306.645 MadCre3v09 available theInteIvncat h.9LL9p6,/u/ NAR -a Ebmmlg/pddafcumenWsrimOflrhT- 3 AAC 306.640. Standard operating procedure immortal. (a) An applicant for a marijuana testing facility license and a licensed marijuana testing facility shall have a written manual of standard operating procedures, 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 manual of standard operating procedures must be available to each employee of the marijuana testing facility at all times. The written manual of standard operating procedures must cover at least (1) sample preparation for each matrix that will be tested; (2) reagent, solution, and reference standard preparation; (3) instrument setup, if applicable; (4) standardization of volumetric reagent solutions, if applicable; (6) data acquisition; (6) calculation of results; (7) identification criteria; (6) quality central frequency; (9) quality control acceptance criteria; and (10) corrective action protocol. (b) The scientific director of a marijuana testing facility shall approve, sign, and date each standard Operating procedure, and each revision Worry standard operating procedure. (Efi: 7121/2016, Register 217) Authority: AS 17.99.010 AS 17x8.150 1t6 17.38.2W AS 17.38.00 AS 17.39.100 AS 17.39.900 as 17x9.121 3 AAC 306.645. Laboratory testing of mnrijunna and mari- juana products. (a) A marijuana testing facility shall use the general body or required laboratory tests as set out in this section far marf- jumm plant material, an aatract or roncenlmto of marijuana, and an edible marijuana pruducL Required tests may include potency analy- sis, moisture content, foreign matter inspection, microbial screening, other chemical residue, and metals screening, and residual pesticide, 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 prod- uct, nee as fellows: (ll potency testing is required on marijuana bud and Rower, marijuana concentrate, and a marijuana product, as follows: (A) the required cannabinoid potency test must at least deter- mine the concentration of THC, THCA, CBD, CBDA and CBN cannabinoids; a marijuana testing facility may test and report results for any additional cannabinoid if the test is conducted in compliance with a validated method; 1161 Page 107 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. 3 AAC 306.646 Ar ui gAtumlaranrnr. Com: 8 AAC 306.646 (B) amarijuana testing facility shall report potency test results as follows: (i) for a potency test on marijuana and marijuana concen- trate, the marijuana testing facility shall list for each required cannahinoid a single percentage concentration that represents on average of all samples within the tett batch; alternatively, the sets of THC and THCA may be reported as total THC; the num of CBD and CBDA may be reported na total CBD; (it) for a potency test an a marijuana product, whether conducted on each individual production lot or using process validation, the marijuana testing facility shall list far each cannabinoid the total number of milligrams contained withing a single retail marijuana product unit for sale; (iii) for testing whether the THC content is homagesaus, the marijuana testing facility shall report the THC content of each single serving in a multi -unit package; the reported content must be within 20 percent of the manufacturer's target; for es unple, in n 26 milligrams total THC package with five servings, each serving meet contain between four and six milligrams of THC; (C) the marijuana testing facility shall determine an edible marijuana product to have failed potency testing if (i) an individually packaged edible retail marijuana product contained within n test lot is determined to have more than 60 milligrams of THC within it; or (it) the THC content of an edible marijuana product is not homogenous; (2) microbial testing for the listed substances on the listed mari- juana products is required as follows: Ouhstmm table Us db Per Gess Prud.et to be Tssted Shiga -man gdurin{ les Nna I mlmy forming u.it dower, retail mediums Emgen4hr ret( (CF0/9) products; water and (BTEC) - borlMa fu.d lensed ....todes Salm Ua apedes - b than I colony farming unit bacteria (CM11) Agwrgtgm fusugatnr, los Nan r mimy formica uNl ,Lpnddlm lova+, (C /g) Arperglllm di.— gerFung s Fungus (3) testing for the listed residual solvents and metals on the listed marijuana products is required as follows: nabstsove tahb Unfit, Per Gram Product to be Tested butenee In. than Boa parts per millbn GTh" solvent -based conceo- Intra hepta.. ku Nan 600 turfs our miBwn (PPM) beme.e lea. then .025 parts per milli.. (PPM) 1186 Page 108 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. 3 AAC 306.650 Couueacs, Cogaumn, um Ec. Dsv. 3 AAC 306.655 8ubetavice le Lmlb Per Gram Product to he'Ihsled (ER: 21 2 112 0 1 6, Register 217) Autharttyt AS 1738.010 AS 17.98.150 A5 17.38200 AS 1739.070 A817.38.190 AS Masson A3 1728.121 3 AAC 306.650. Chain of custody. A marijuana testing facility shall establish an adequate chain or 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 integ- rity 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 marijuana testing facility; (4) documenting each person handling the original samples, aliquots, and extracts; m (5) documenting any transfer ofsaples, aliquots, and extracts to another marijuana testing facility for additional testing or at the request of the marijuana cultivation facility or marijuana product manufacturing facility that provided the testing sample; (6) maintaining a current list of authorized persons and mAricl- mg entry to the marijuana testing facility to those authorizedon peras; (7) securing the marijuana testing facility during non -working hours; (8) securing chert -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 stared appropriately; and (11) documenting the disposal of samples, aliquots, and extracts. (ER: 2I2ll2016, Register 217) Authocitr. AS 1739.010 AS 17.]9.150 A.5 17.38200 AS 1739.070 AS 1738.190 A9 1738.900 AS 17.29.121 3 AAC 306.666. Marijuana inventory tracking system. A mar- ijuana testing facility shall use a marijuana inventory tracking system as provided in 3 AAC 306.730 to ensure all marijuana transported to 1187 Wuene lea+ then I carts per million (PPhn harass Ina dein to wrta per m(Ilion tPPhll 7bu1 "I. (meta- len then t porta per million 'k., Page 109 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... wn'rylew. (PPM) oNwgletnl Page 109 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 110 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.660 Ai. %"Almme.-mAln'F Conr. 3 AAC 306.665 the marijuana testing facility's premises is identified and tracked from the time the marijuana arrives at the marijuana testing facility to the use and destruction of the marijuana in testing, or to disposal in compliance with 3 AAC 306.740. (Elf. 2/21/2016, Register 217) Authority, AS 17.08.010 AS 173a.150 AS 1728200 AS 17.26070 AS 17.35.190 AS 17.36900 AS 17.38.121 3 AAC 306.660. Failed materials; retests. (a) If a sample tested by a marijuana testing facility does not pass the required trtsts based on the standards set out in 3 AAC 306.646, the marijuana establish- ment 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 the marijuana establishments marijuana inventory tracking system. (b) If a sample of marijuana fails a requited test, any marijuana plant trim, leaf, and other usable material from the same plants automatically foil the required teat. The board may approve a request to allow a batch or marijuana that fails a required test to be used to ,eke a carbon diodde- or solvent -based extract. After processing, the carbon dioxide- or solvent -based extract most pass all required tests. (c) If a morijuana cultivation facility or a marijunna product a m- ufacturing facility petitions for a retest 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 shall pay all costs of retest. (Eff. 2/21/2016, Register 217) Authority: AS 17.88.010 AS 1738.110 AS 1798200 AS 172&070 AS 1731L100 AS 17:38.900 As 1738.121 3 AAC 306.666. Supplemental marijunna 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 testing, the board will or director shall 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 most be packaged in a manner that ensures the marijuana testing facility will be able to confirm that it has received and is testing the correct supplemental sample. (b) When a marijunna testing facility receives a sample for random supplemental testing under this section, the marijuana testing facility shall 1136 Page 110 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 111 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.670 Colmiulcs, Cammtmrrr, mr, Ec. Dw.. 3 AAC 306.670 (1) perform any required laboratory test the board or director requests; and (2) report its results to (A) the board or director, and (B) the facility that pmvided the sample. (c) A marijuana testing facility that conducts laboratory testing under this section shall bill all costs directly to the marijuana cultiva- tion facility or the marijuana product manufacturing facility that provided the samples for testing. (Eff. 2/21/2016, Register 217) Authority: AS 17.39.010 A9 17.88.160 A9 1799300 AS 17.38.070 As 17.39.190 AS 17.89.9x0 AS 17.38.121 3 AAC 306.670. Reporting, verification. (a) A marijuana testing facility shall report the result of each required laboratory test directly into its marijuana inventory tracking system not later than 24 hours atter the test is completed. A marijuana testing facility shall provide the final report (1) in a timely manner to the marijuana establishment that submitted the sample; and (2) to the director not later than 72 hours atter the marqunna testing facility determines that results of tested anmples exceed allowable levels. (b) A marijuana testing facility shall establish procedures to ensure that reported results are accurate, precise, and scientifically valid. 7b ensure reported results are valid, a marijuana testing facility shall Include in a final report (1) the name and location of the marijuana testing facility, (2) the unique sample identifier assigned by the marijuana test- ing facility; (3) the marijuana establishment or other person that submitted the testing sample; (4) the sample identifier provided by the marijuana establishment or other person that submitted the testing sample (6) the date the marijuana testing facility received the ample; (6) the chain of custody identifier, (7) the date of the report; (8) the type or marijuana or marijuana product tested; (9) tho test results; (10) the units of measure; and (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 cxmpt that test results may not be amended. (ER 2/2112016, Register 217) 1189 Page 111 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.8. Page 112 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.675 AI " Amasl.,r-nrve. Com'. 3 AAC 306.700 Authority: AS 1796.010 AS 17.39.150 A9 17.88200 AS 175am0 AS 17.3e.10o As 17M." AS 1759.121 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 306.75.5(alfl) include (1) test results; (2) quality control and quality assurance records; (3) standard operating procedures; (4) chainaf-custody records; (5) proficiency testing records; (6) analytical data to include printouts generated by the instru- mentation; (7) recission number (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) the identity of the analyst; and (13) the date of the analysis. (Ef. 2121=16, Register 217) Audlorhr. AS 1759.010 AS 1759.150 As 17.39200 A.3 175 070 AS 17.38.190 A3 17.38.900 AS 1799.121 Article 7. operating Requirements for All Marijuana Establishments. Stolon 6eod. me Maryaacu handlerpenadt 730. Marb.. Invenbry tmckia9 eye 705. Ue ..d premise; eaention tem 710. 14,driclal score scam 735. 1lealth eM safety emnd 715.6 dty eland ,vw. end lack 74a. Wute dlepawl etaaderda 745. Sutnd..d., d scalae 720. Video eurtullemn 750. 7famporWd. 775. Lopec4ao.f limoeed preatieee 755. Business eemrde 3 AAC 306.700. Marijuana handler permit. (a) A marijuana establishment and each licensee, employee, or agent of the marjjuana establishment who sella, cultivates, manuractums, tests, or transports marijuana or a marijuana product, or who checks the identification of a consumer or visitor, must obtain a marijuana handler permit from the board befare being licensed or beginning employment at a mari- juana establishment. (b) lb obtain a marijuana handler permit, a person must complete a marijuana handler permit education course approved by the board, pass a written test demonstrating an understanding of the course material, and obtain a certificate of course completion from the course 1190 Page 112 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 113 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.705 COMIAERM, (3raaenm, AND Ec. I)m 3 AAC 306.706 provider. The topics that an approved marijuana handler permit .duration courso covers must include (1) AS 17.37, AS 17.38, and this chapter, (2) the effects or consumption of marijuana and marijuana prod. nets; (3) how to identify a person impaired by consumption or mari- juana; (4) how to determine valid identification; (6) how to intervene to prevent unlawful marijuana consumption; and (6) the penalty for an unlawful act by a licenses, an employee, or an agent of a marijuana establishment. (c) 76 obtain a marijuana handler permit, a person who has com- pleted the marijuana handler permit education mum described under (b) of this section shall present the course completion certificate to the director. The director shall issue a marijuana handler permit mrd valid for three years from the date of issue. Aperson may renew a card issued under this section by passing a written test demonstrating an understanding of the mum 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 persods immediate possession or a valid mpy on file on the premises at all times when on the licensed premises of the marijuana establishment. (e) The board will review an approved marijuana handler permit education course at least once every three years, and may rescind approval of the mum if the board finds that the education manse mntenta are insufficient or inaccrvate. MIT 7121/2016, Register 217) Authority: AS 17.38.010 AS 17.38.180 AS 17M8 AS 17.08.070 AS MULIm AS 17.:8 am AS 17]8.121 3 AAC 306.706. Licensed premise: alteration. (a) A marijuana establishment license will be issued for specific licensed premises. Specific licensed premises must constitute a plam 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 fur its approved operations, including growing, manufacturing, processing, packaging, or storing marl. juana or marijuana products; and (2) be located end constructed to facilitate cleaning, maintenance, and proper operation (h) A marijuana establishment's licence must be posted in a conspic- uous plum 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 directors written approval. A 1191 Page 113 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 114 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.710 Austin Anaimsrwrws Cnnv. 3 AAC 306.716 marijuana establishment license holder seeking to change or modify the licensed premises must submit a request far approval cribs change on a form prescribed by the board, along with (1) the fee pr�acrihed in 3 AAC 306.100; (2) a drawing showing the proposed change; (3) evidence that the proposed change conforms to any local restrictions; and (9) evidence that the licensee has obtained any applicable local building permit. (Elf. 2121/2016, Register 217) Authorit, A5 1738.010 AS 173&150 AS 17.39.200 A3 17.98.070 AS 17.38.190 AS 1738900 AS 17.38.121 3 AAC 306.710. Restricted access areas. (a) Amarijuana estab- lishment 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 retail marijuana 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 orvisitom to not mom 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, a licensee, employee, or agent of the marijuana establishment shall wear a current identification badge bearing the person's phntograph. A person under 21 years of age may not enter d restricted access area. Any visitor to the restricted access area most (1) show identification as required in 3 AAC 306.350 to prove that person is 21 years of age or older, (2) obtain a visitor identification badge before entering the re- stricted access area; and (3) be escorted at all times by a licensee, employee, or agent ofthe marijuana establishment. (Elf. 212112016, Register 217) Authority: AS 1738.010 AS 1738.180 AS 17.38.200 AS 17.38.070 AS 1738.100 AS 17.38.000 AS 1739.121 3 AAC 306.716. 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 estab- lishment 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; 1192 Page 114 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 115 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.720 Coeuneacz, Cmncu m, Ase Ec. Dzv. 3 AAC 306.720 (2) a security alarm system on all exterior dears 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 luitering; (3) describe the use of any additional security device, such as a motion detector, pressure switch, and duress, panic, or hold-up alarm to enhanco security of 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 nhall use ecemmercial grade. non- residential door locks on all exterior entry points to the licensed premises. (Etf. 2121/2016, Register 217) Autharltr. AS 1729.U10 AS 17.99.150 AS 17.,38200 AS 17.39.070 AS 17.58.190 AS 1728.M AS 17.09.121 3 AAC 306.720. Video surveillance. (a) A marijuana e,tahlith- ment shall install and maintain a video surveillance and camera recording system as provided in this section. The video system must cover (1) each restricted aeras area and each entrance to a restricted access are. within the licensed promises; (2) each entrance to the exterior or the licensed promises; and (3) ench poiuL-.6sa1e oma. (h) 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 licenstd premises, or within 20 feet of each entrance to the licensed premises. Roth the interior and the exterior of each entrance to the facility rust be recorded by a video camera. (d Any area where marijuana is grown, cured, or manufactured, or where marijuana wnsto is destroyed, must have a camera placement in the mom hoeing the primary entry door, and in adequate fixed posi- tions, at a height that will pmvide a clear, unobstructed view of the regular activity without a sight blockatm from lighting hands, 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 remrdingequipment and videosurveillance records must be huumd in a lurked and secure area or in a lack box, cabinet, closet or other secure area that is accessible only to a marijuana establishment licensee or nuthorized employee, and to law rnforee- ment personnel including a pence officer or an agent of the heard. A 1193 Page 115 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 116 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.726 AussA Anumtsm nva Cenc. 3 AAC 306.730 marijuana establishment may use an offsite monitoring service and ofaito storage of video surveillance records if security requirements at the of me 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 that can be easily amessed for viewing. All recorded images most dearly 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. Atter 40 dny5, a mar(iumm establishment may cruse 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. 7!21/2010, Register 217) Aathoritp AS 17.38310 AS 1738.191 AS 17.99.200 AS 1735070 AS 1738.150 AS 17.9&900 AS 1738.121 AS 17.78.190 3 AAC 308.726. lnsr a tiou of licensed premises. (a) A mari- juana 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 hoard, or an officer charged with the enforcement oftive chapter. 711e board or the director may also request a local fire protection agency or any other state agency with health and safety responsibili- ties to inspect licensed premises or proposed licensed premises. (b) Inspection under this section includes inspection ofthe premises, facilities, qualifications of personnel, methods of operation, business and financial records, marijuana inventory tracking system, policies, and purposes of any marijunne establishment and of any applicant for a marijuana establishment license. (E6 712142016, Register 217) Aatharu, AS 17.38.010 AS 1738.131 AS 17.38100 AS !7.98.0/0 AS 17.38.160 AS 17.35900 A9 17.78]21 AS 1736.190 3 AAC 306.730. MarUunna inventory tracking system. (a) A marijuana establishment shall use a marijuana inventory tracking system cepable of sharing information with the system the (ward implements to ensure all marpuana cultivated and sold in the state, and each marijuana product processed and sold in the state, is identified and tracked from the time the maryuana is propagated from aced or cutting, through transfer to another licensed marijuana estab- lishment, or use in manufacturing a marijuana product, to a completed sale of marijuana or a marijuana product, or disposal of the harvest batch of marijuana or production lot of marijuana product. (b) Marijuana delivered to a marijuana establishment most be 1184 Page 116 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 117 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 308.735 Co�, Co» nrr, va, EL. Dm.. 3 AAC 306.735 weighed on a scale registered in compliance with 3 AAC 306.745. (ER. 2121/2016, Register 217) Authority: AS 17.98.010 AS 1759150 AS 17.38200 AS 175 070 AS 1758190 AS [7.38.900 AS 17.39.191 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 health or safety concerns are not present. (b) A marijuana establishment shall take all reasonable measures and precautions to ensure that (1) any person who has an illness, an open earn or infected wound, or other potential source of infection does not came in contact with marijuana or a marijuana product while the illness or source of infection persists; (2) the licensed promisee have (A) adequate and readily accessible toilet facilities that are maintained in good repair and sanitary condition; and (B) convenient handwashing facilities with running water at a suitable temperature; the marijuana establishment shall require employees to wash or sanitize their hands, and shall provide effective hand -cleaning, sanitizing preparations, and drying de- vices; (3) each person working in direct contact with marijuana or a marijuana product conforms 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 perrim a hands may have become soiled or contaminated; (4) litter, waste, and rubbish are properly removed; the waste disposal equipment meet be maintained and adequate to (A) avoid =laminating any area where marijuana or any marijuana product is stored, displayed, or sold; and (B) prevent causing Odom or attracting pests; (5) floors, wells, and ceilings are constructed to allow adequate cleaning, and are 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) each building, fixture, and other facility is maintained in sanitary canditfon; (9) each toxic cleaning compound, sanitizing agent, and pesticide chemical is identified and stared in a safe manner to protect against 1195 Page 117 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 118 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... :1 AAC 306.740 Ainrse Aumar-rnnm r: Gree 3 AAC 306.740 contamination of marijuana or a marijuana product and in compli- ance with any applicable local, state, or federal law; (10) adequate sanitation principles are used in receiving,inspect- ing, transporting, and storing marijuana or a marijuana product; and (11) marijuana or a marijuana product is held in a manner that prevents the growth of bacteria, microbes, or other undesirable microorganism. (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 On marketplace. In this subsection, "stored improperly" means being expo" to extremes in temperature, humidity, smoke, fumes, pressure, or radiation due to a natural disaster, fire, accident, or equipment failure. (d) If 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 oc- curred 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 sal- vaged marijuana or marijuana product in its marijuana inventory tracking system, including the name, lot number, and final disposi- tion. (Eff. 712L2016, Register 217) Authority- AS 17.98.010 AS 17.3a.1A0 AS 1].98200 AS 1738.070 AS 1739.190 AS 17.98900 AS 1738.121 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, pro - ceasing, testing, or retail sales, in compliance with applicable federal, state, and local statutes, ordinances, regulations, and other law (b) Marijuana waste must be rendered unusable for any purpose for which it was grown or produced before it leaves a marijuana esteb- lishmeat. Marijuana waste includes (1) marijuana plant waste, including roots, stalks, leaves, and stoma 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 hoard. (c) A marijuana establishment shall (1) in the marijuana inventory tracking system required under 1196 Page 118 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 119 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.745 Coualeacx, Comuuarrv, Ann Er.. Dw.. 3 AAC 306.745 3 AAC 306.730, give the board notice not later than three days before making the waste unusable and disposing of it; however, the director may authorize immediate disposal on an emergency basis; end (2) keep a record of the final destination ofmarijuana 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 mmpostable or non-compostable materials. A marijuana estab- lishment may use another method to make marijuana waste unusable if the board approves the method in advance. Material that may be mixed with the marijuana waste includes (1) compostable materials including food waste, yard waste, veg- etable based grease or oils, or other wastes approved by the board when the mixed material cert 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. (a) If marijuana or a marijuana product is found by, or surrendered to, a law enforcement officer including a peace officer or 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. 2/21/2016, Register 217) Aalharitr- AS 1749.010 AS 1748.150 AS 17.]a.20a AS 17.38.070 AS 17.38.190 AS 1749.900 AS 1748.121 3 AAC306.745. Standardized scales. A marijuana establishment shall use registered scales in compliance with AS 45.75,090 (Weights and Measures Act). A marijuana establishment shall (1) maintain registration and inspection reports of scales regis- tered under AS 45.75.080 and 17 AAC 90.920 — 17 AAC 90.935; and (2) upon request by the board or the director, provide a copy of the registration and inspection reports of the registered scales to the board or the director far review. (Eff. 7!21/2016, Register 217) Authority: AS 17.30.010 AS 1749.150 AS 17.38.200 AS 1239.070 AS 17.38.190 AS 17.38.900 AS 17.38-121 1197 Page 119 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 120 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.750 Al , Aaam arainvs C six 3 AAC 306.750 • 3 AAC 3110.750. Wnrisportation. (a) A marijuana establishment shall transport marijuana as follows: (1) a marijuana cultivation facility may transport marijuana to another marijuana cultivation facility, a marijuana product manu- lecturing facility, a marijuana testing facility, or a retail marijuana atom; (2) a marijuana product manufacturing facility may transport a mnrUuana product to another marijuana product manufacturing facility. a marijuana testing facility, or a marijuana retail store; (3) a marijuana testing fecility may transport marijunna or a marijuana product to the facility from which it received the mari- juana or another marijuana testing facility; (4) a retail marijunna atom may tmnsport mmijanna or a mari- • junna product to another retail marijuana atom. (b) A marijuana establishment from which a shipment of marijunna or mnrijunna product originates is responsible for preparing, packag- ing, and securing the marijuana or marijuana product during ship- ment, for recording the transfer in the marijuana inventory tracking system, and for preparing the transport manifest. An individual transporting marijuana in compliance with this section shall have a marijuana handler permit required under 3 AAC 306.700. (c) When marijuana or a marijuana product is transported, the marijuana establishment.thet originates the tmnsport shall use the marijuana inventory tracking system to record the type, amount and weight of marijuana or marijuana product being transported, the name of the transporter, the timeardeparture and expected dalivery, and the make, model, and license plate number of the transporting vehicle. A complete printed transport manifest on a form prearribed by the board meet be kept with the marijuana or marijuana product at all limas. (d) During transport. the marijuana or marijuana product most be in a sealed package or container and in a locked, safe, and secure storage compartment in the vehicle transporting the marijuana or marijunna product. 77ae scaled packnge may not be opened during transport. A vehicle transporting marijuana or a marijuana product must travel directly from the shipping marijuana establishment to the receiving marijuana establishment, and may not make unnecessary • steps in between except to deliver or pick up marijuann or a marijuana product at another licensed marijuana establishment. (c) When a marijuana establishment receives marijunna or a mar- ijuana product transported in compliance with this section, the torip. ient of the shipment shall use the marijunna inventory tracking system to report the type, amount, and weight of marijuana or marijuana product received. The recipient shall refuse to accept any shipment of marijuana or marijuana product that is not accompanied by the transport manifest. (D A marijuana establishment shall keep records oral] marijuana or marijuana products shipped from or received at that marijunna 1190 • Page 120 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 121 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.755 Co. t. Ce, Conimarn; A.vo EL. Dev. 3 AAC 306.755 establishment as required under 3 AAC 306.765. (EFl: 2/212016, Register 217) Amhadty. AS 17.8A010 AS 17.98.150 AS 1739200 AS 17.98.070 AS 77.38.190 AS 1738.900 AS 17.98.121 3 AAC 308.755. Business records. (a) A marijuana establish- ment shall maintain in a format that is readily understood by a reasonably prudent business person (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 an or off premiaes; (2) a current employee list setting out the full name and mari- juana 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 surveillonce systems and security alarm systems for the licensed promises; (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 fur all marijuana inventory activity from seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a ransomer, to another marijuana establishment, or de- stroyed; and (9) transpnrtation records for marijuana and marijuana products as required under 3 AAC 306.750(0. (b) A marijunna 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 most be provided to the board's employees not later than three business days after a request for the record. (c) A marijuana establishment shall exercise due diligence in pre- serving and maintaining all required recarda. lase of records mrd data, including electronically maintained records, does not excuse a viola. Lion orthis section. The board may determine a failure to retain records required under this section to be a license violation affecting public safety. (Eff. 71212016, Register 217) 1199 Page 121 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 122 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.800 Ai-tssntUaaacn.+rnr. Cene 3 AAC 306.805 Aulhoatp. AS 17.00.010 AS 17.8X.131 AS 172 AS 17.38.070 AS 1798.1w AS 17.38901 AS 17.38.121 AS 17.36.190 Article S. Enforcement, Civil Penalties. gectiou Section 600. baisctl and inveatigg�'�use 830. Seimrc or marijemm or marijasea M. napon ootimarviolatw. product 610. Suepnuioa or moe,uon orhi ' &15Hewing 615. Suepemion or mvoouan hued uo Mu* Civil fioee act ofempioree Bdb. Arla'al M. Ppnewv�dure far ace w, lir+ae cue- M. Su der w dcarucavc afial ti gumma wreaosi Pub &Li rr a et". b ai rano. tic brat W, xaf to w wafnm. 3 AAC 306.800. Inspection and investigation. (a) The director, an enforcement agent, an employee of the board, or a peace afficer noting in an official capacity, may (1) insped the licensod premises of a marijuana establishment, including any marfjunnu and marijuana product on the premises, equipment used in cultivating, processing, testing, or storing mari- juana, the marijuana ea41blisllmenCs marijuana 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 17.38.131, exercise peace officer pow- ers and take any other action the din•ctor determines is necessary. (b) Amarljuam 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 minted to marijuana, including (1) permitting entry upon end inspection ofthe 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. 2121/2016, &agister 217) Aatho lt, AS 1738.010 AS 1758.131 AS 1798300 AS 1758.mo AS 17.38.150 AS 17.38900 AS 1728.121 AS 17.38 IN 3 AAC 306.1305. 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 inspection report, an advisory report, or a notion of violation before taking action to suspend or revoke a marijuana establishment license. (b) An inspection report documents ce investigators inspection of licensed premises. An inspection report must be prepared on a form the board prescribes and include information prescribed under AS 17.38 or this chapter or that the board requires. 12(10 Page 122 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.6. Page 123 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.810 Colnrmce, Comaunm, Atm Ec. Day. 3 AAC 306.810 (c) The director, an enforcement agent, an employee of the board, or a peace o0icer acting in an official capacity 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 advi. eery 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 acting in an official rapacity may issue a notice of violation if 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 madjuam. The notice of violation most 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, not later than 10 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 es provided -under 3 AAC 308.810. (Eff. 2121M16, Register 217) Aathorit, AS 178&.010 AS 17.99.131 AS 1738. 00 AS 17.38MM AS 1-1 U.1W A.9 178&ao0 AS 17.38121 AS 1788.100 3 AAC 308.816. Suspension or revocation of license. (a) The beard will suspend or revoke a marijuana establishment hcenee issued under this chapter if any licensee is convicted of a felony or ors crime listedin3 AAC 306.010(dl(2)or(3), orif the board becomes aware that a licensee did not disclose a previous felony conviction or a conviction of a crime listed in 3 AAC 306.010(d)(2) or (3). (b) The beard 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 u mari- juana establishment license, or an affidavit, report, or signed state- ment under AS 17.38 or this chapter, or (2) is following any ]iractice or procedure that is contrary to the beat interests of the public, including (A) using any process not approved by the board for extracting or manufacturing marijuana concentrate or products; or (B) wiling "distributing any marijuana concentrate or product that has not been approved by the bard; (3) failed, within a reawnable 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, 1201 Page 123 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 124 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 106.815 ALRRd ANnuuu-re.am's Cuus 3 AAC 306.815 (B) a condition or restriction imposed by the board; or (C) other applicable law; (4) knowingly allowed an employe, 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 statute, ordinance, regulation, nr other law in the state; or (6) used the licensed premises for an 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 rendition or mstriction the baud has imposed an the marijuana establishment. Unless the (ward finds that the local gov- ernme ,Vs notice is arbitrary, capricious, and unn•asonahle, the direc- tor aball prepare the notice and supporting evidence as an accusation against the marijuana establishment under AS 44.62.360, and conduct proceedings to msolve the matter as described under 3 AAC 306.820. (Elf. 2/21/2016, Register 217) Authoritla A5 17.38.010 AS 17M 131 As M.U.200 A3 1798.070 A 17.39.150 A3 17.38900 A6 17.38.121 A6 1798.100 3 AAC 308.815. 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 on act that would justify suspension or revocation of the marijuana establishment's license if committed by a licence, the board may find that licensee knowingly allowed the act if (1) the licensee (A) was physically present when the violation occurred; (B) knew or should have known the violation was occurring; and (C) did not take action to stop the violation; (2) the licensee failed to adequately supervise the agent or em- ploye,; (3) the licensee failed to adequately train the agent or employee in the requirements ofAS 17.38 and this chapter relating to marijuana; or (4) the licensee was reckless or careless in hiring the agent or employee. (Elf. MM016, Register 217) 1202 Page 124 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 125 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.820 Caaasece, Couu ,, A v Ec. Dsv. 3 AAC 306.830 Aulharity: A9 17.3&010 AS 17.28.131 A9 17.312w AS 17.38.070 AS 17.38.150 AS 17.38.900 AS 17.38.121 AS 17.38.190 3 AAC 306.820. Procedure for action an 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 44.62.380, and conducted in com- pliance with AS 44.62.330 —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(bH6). The marijuana establishment is entitled to a hearing as provided under AS 44.62.390. (EtL 2/2112016, Register 217) Aulha Rr. AS 17.38.010 AS 17.38.121 A5 17.38200 AS 17.38.070 AS 17.38.150 AS 17.38.000 AS 17.3&121 AS 1728.190 3 AAC 306.826. Summary suspension to protect public health, safety, or welfare. (a) If the director finds that a person holding a marijusns 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 immediately give the marijuana establish- ment subject to the summary suspensinn order notice of the reasons for the summary suspension, and of the time and plow 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 not later than five days after the director gives notice of the reasons for the summary suspension and the scheduled hearing. Mr. 2J21/2016, Register 217) Aalhorlty, AS 17.38.010 AS 17.38.131 AS 17.382x0 AS 17.38.070 AS 17.38.150 AS 1?.38.900 AS 17.38.121 AS 1728.190 3 AAC 306.830. Seizure of marijuana or marijuana product. (a) The director, an enforcement agent, an employee of the (ward, or a peace offices acting in an official capacity, may seize marijuana or any marijuana product from a licensed or previously licensed marijuana establishment if the mariivana establishment has (1) any marijuana or marijuana product not properly logged into the marijuana establishment's marijuana inventory tracking sys- tem; 1203 Page 125 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 126 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 308.835 Ausan Aummsnu7rva Gme 3 AAC 306.835 (2) any adulterated marijuana food or drink product prohibited under 3 AAC 306.510(a)(0, (3) any marijuana or marijuana product that is not properly packaged and labeled as provided in (A) 3 AAC 306.470 and 3 AAC 306.475; or (8) 3 AAC 306.565 and 3 AAC 308.570; or (4) not renewed its license as required under 3 AAC 308.035. (b) Ifthe director, an enforcement agent, an employee arthe 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 emarre that the seized items aro sLor d in a reasonable manner. The director shell immediately 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 not later than 10 days after the director gives notice of the reasons for seizure and the scheduled hearing. If the seizure occurs in connec tion 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 atter 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, crush- ing, 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 Urfa section is of marijuana plants in place in a licensed standard or limited marjjusna cultivation facility, the seizure order may direct the marijuana cultivation facility to continue care of the plants until the hearing, but prohibit any transfer, sale, or other commercial activity related to the plants. (ER 7121/2016, Regis- ter 217) Aelherltr. AS 1738.010 AS 17.38.131 AS 17.39.200 AS 17.38.070 AS 1739.190 AS 17.89.900 AS 1735121 AS 17.38.190 3 AAC 808.835. Hearing. (a) Except as provided in 3 AAC 306.825 or 3 AAC 306.830, a 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 not later than 16 days atter receiving a written accusation. Failure to file a notice of defense as provided in this section constitutes a waiver or the right to a hearing. (b) When an aggrieved person requests a hearing under this section, the board may request the office of administrative hearings to conduct 1204 Page 126 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 127 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.840 Cannimm, Comvunrrr, Asa Ec. Ihv. 3 AAC 306.850 the hearing in compliance with due process, AS 44.62.330 — 44.62.630 (Administrative Procedure Act), and 2 AAC 64.100 — 2 AAC 64.990, as applicable. (ER. 221/2016, Register 217) Authority. AS 17.38.010 AS 17.88.131 AS 17.38.200 AS 1738.070 AS 17.88.160 AS 173&900 AS 17.38.121 AS 17.38.190 3 AAC 306.640. Civil tines. (a) The board may, in addition to any other penalties imposed ander this chapter, impose a civil fine on a marijuana establishment, licensee, or person that the board deter- mines 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. (E2 2/2M016, Register 217) " Authority AS 17.96.010 AS 17.38.131 AS 17.38100 AS 1738.070 AS 17.38.160 AS 17.38.900 AS 17.38.121 AS 17.38.190 3 AAC 306.845. Appeal. (a) An aggrieved party may appeal to the board regarding any 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. WE 712M016, Register 217) Authnritr. A4 1738.010 AS 17.78.131 AS 17.38200 AS 17.38.070 AS 17.38.150 As 17.88.900 AS 17.36.121 AS 17.38.190 3 AAC 306.850. 8mcrender or destruction of license. Alicense 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 se orders. A license issued under this chapter must be surrendered not later than 30 days atter the marijuana establishment Iowa or vacates the licensed premises. If a licence is destroyed, the marijuana establishment shall promptly notify the board. (EH. 7121MS. Register 217) 120. Page 127 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 128 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 308.905 Ateseu Amwon�r. Cam. 3 AAC 306.920 Authority: &q 17.33.010 AS 17.38133 AS 1799200 M 1798070 AS 17.39.150 AS 1].]0900 X917.!3.121 X517.39.190 Article 9. General Provisions. Section Section 309. pubes reconit 920. Ue 1F of lioness 910. Refusal b tell marijuana 090. O ftni0vnr 919. Srenitevfaut6wyb 3 AAC 30&906. Public records. Marijuana establishment appli- cations are public records. The board may, at the request of any applicant, designate materials confidential if they (1) contain proprietary information including trade secreta; or (2) arc required to be kept conOdential by any federal orstate law. (Eft 212112016, Register 217) Autharltir AS 17.33.010 AS 1738.150 AS 17.30.900 AS 17.39.070 AS 17.33.2110 AS 40.25.110 AS 17.30.121 3 AAC 300910. Refusal to sell marijuana. Nothing in this chapter prohibits a fimmee from refusing to sell marUmma or man. juana pnducts to any person unless that refusal is a violation of AS 18.80.210. (E¢ 2/21/2016, Register 217) AatForitp A317.38aW X51].39.150 X317.39200 AS 17.38.070 175 1798.190 Xq 17M1990U 179 V.38.321 3 AAC 306.915. Exercise of authority. Until a marijuana eatah- Iishment 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 maponsible and liable for the conduct of the business. Any individual exercising actual authority over the conduct of business on the licensed premises most 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. 2t2MO16, Register 217) Authorlb: X9 17.38.010 AS 1738.150 M 17.38200 X9 1799.070 AS 17.38.190 AS 17.39900 AS 17.30.123 3 AAC SO&920. Death of licensee. (a) Iran individual who is the sole licensee of a marijuana establishment dies, the marijuana estab- lishment shall cease operation. Apersenal representative appointed by the superior court for the estate ofthe deceased licensee may submit to the director a written request to reopen the business, along with a mpy 1206 Page 128 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 129 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.990 Cmcuzacs, Comanam, m, Aw Be. De .. 3 AAC 306.990 of the court order appointing the personal representative. If the licensed mar(jusm establishment is in good standing, and the per- sonal representative is not a person prohibited from holding a mari- juana establishment license under AS 17.38.200(i), the director shall grant permission to the personal representative to operate the busi- ness on the licensed premises subject to (b) of this seet(on. In this section, a marijuana establishment is in good standing if the mari- juana 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 most submit an application far a transfer of ownership to another person in compliance with 3 AAC 306.045 not later than 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 repre- sentatives application for transfer of license to another person. (Eff. 2/21=16, Register 217) Aalhorlty: AS 17.28010 A9 17.281x0 AS 17509x0 AS 17.2x070 AS 1750.190 AS 1739.900 AS 17.28,121 3 AAC 308.990. 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 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 persons primary residence; or (ii) a garage, shed, or similar place under the other persons control; (3) "delivering" (A) means handing to a person who purchases the product on licensed premises only, 1207 Page 129 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 130 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.990 Ar.. "Aoumat-m Tran Came 3 AAC 306.990 (B) does not include transferring or transporting to a consumer off licensed premises; (4) "flawerine means n 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) "in public' (A) means in a place ta which the public or a substantial group of people has access; (B) except as provided in (C) of this paragraph, includes high- ways, transportation facilities, schools, places of amusement or business, parka, playgrounds, prisons, and hallways, lobbies and other portions of apartment houses and hotels not constituting norms or apartments designed for actual residence; (C) does not include an arca on the premises are licensed retail marijuana stars designated for onsite consumption under 3 AAC 306.305; (7) '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; (C) growing marijuana planta for another person in a place other than (i) that other persona primary residence; or (ii) a garage, shed, or similar place under the other persona central; (8) "possess" mems having physical possession or control over property; (9) "registration' means licensure or license; (10) "transport" or'transrer' 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 n ari- 1208 Page 130 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 131 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.990 Com , Couwuanv, Iwo So. Day. 3 AAC 306.990 juana 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; (4) 'bud and flower' means the hairy, sti ft 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) 'CBD" means cannabidiol; (7) "CBDA" means CBD Acid; (8) "CBN" means cannabinol; (9) "clones" or "cuttings" means small starter planta (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, distributee, or delivers marijuana to another, (B) includes a cover charge, a delivery charge, and a packaging charge; (11) "concentrnte" or "marijuana concenlente" 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 u marijuana product; and (B) does not include a marijuana establishment that resells marijunna or incorporates marijuana into a manufactured prod- uct; (13) "contaminant" means one or more of the following. (A) harmful microbial', including Escherichia coli (E. coli). or Salmonella species; (B) residual solvents; (C) poisons or tnx. ; (D) hurmful chemicals, including pesticides; (E) dongerous 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 central as demonstrated by (i) making decisions for the corporstion without independent participation of other owners; (it) exercising day -today control over the corporation's of. faire; 1209 Page 131 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 132 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.990 Ar s"AmmNt4TP M. Com: 3 AAC 306.990 (iii) disregarding formal legal requirements; (iv) using corporation funds for personal expenses or invest- ments, or intermingling corporation finances with persannl 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 he consumed orally, 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 wafer -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 ora multi-serviug unit; (19) "individual' means a natural person; (20) 'in-house testing" (A) means laboratory testing as provided in 3 AAC 306.635 and that does not meet the requirements of 3 AAC 306.645; (B) dues not include consumption of any marijuana or mari- juana product on the licensed premises; (21) "licensed" (A) means holding a current and valid license that the board has issued under this cbapter, (B) does not include holding a formerly valid license that has expired or that the board has suspended or revoked; (22) ' icenseemeans each individual identified in 3 AAC 306.020 who most be listed in an application for a marijuana establishment license under this chapter, (23) 'licensed premises' means say or all designated portions of a building or structure, or roams or enclosures in the building or structure, at the specific address for which a marijuana establish- ment license is issued, and used, controlled, or operated by the marijuana establishment to carry out the business for which it is licensed; (24) got"or'productionlot"mesnsagmupofmarij a aproducts that were prepared at the same time from the same batch of marijuana, using the same recipe or process; (25) 'marijuana' has the meaning given in AS 17.38.900; (26) "murijuane cultivation facility" has the meaning given in AS 17.38.900; (27) "marijuana infused product" (A) means a product that contains marijuana or marijuana concentrate and is intended for human use; 1210 Page 132 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 133 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... 3 AAC 306.990 Comasuce, Casmunnv, mo Ec. Dsv. 3 AAC 306.990 (B) does not include bud and flower marijuana; (28) '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 photo- synthesis; (29) "marijuana product" has the meaning given in A8 17.38.900; (301 'marijuana product manufacturing facility" has the meaning given in AS 17.38.900; (31) "peam officer" has the meaning given in AS 01.10.060; (32) 'person" has the meaning given in AS 01.10.060; (33) "pmcese or"processing" means harvesting, curing, drying, or trimming of a marijuana plant; (34) "propagate" means to cause a marijuana plant to grow by planting clones or cuttings, and nurturing them into viable planta up to eight inches in height; (35) "recreation or youth center" means a building, structure, athletic playing field, or playground (A) run or treated by a local government or the state to provide athletic, recreational, or leisure activities for persons under 21 years of age; or ' (B) operated by a public or private organization licensed to provide shelter, training, or guidance for persons under 21 years of age; (36) "retail marijuana atone" has the meaning given in AS 17.38.900; (37) 'square feet under cultivation" (A) means an area of the licensed promises of a standard or limited marijuana cultivation facility that is used for growing marijuana, measured from the perimeter of the floor or growing opera 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; (38) 'THC" means tetrahydrocannabinol, the main psychoactive substance found in marijuana; (39) 'THCA" means THC Acid; (40) "transaction' means one single occurrenee in which mari- juana or a marijuana product not exceeding the limits set out in 3 AAC 306.356 in passed from a licensed marijuana establishment to another person. (Eff. 2/24/2015, Register 213; son 2121/2016, Register 217) 1211 Page 133 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. 3 AAC 306.890 A1w21uABetmtmu7 Cnnr. 3 AAC 306.990 Authorigt AS 1730.010 AS 17.30.121 AS 1730.2W AS t7.W.MO AS 17.30.150 AS 17.36.6W AS 1730070 Editor's votc 7Lede6nidm of mpub. OCletout ion Bane ee,ulorieinvllr the d tae tn. 3 AAC regulation wt gaff o 9 MC 90Felj p ), and. with an emeM�ye dere of alm ary 2r, as 3 C erne, 1I r egiz im appear ea3) 3019901b11v Register15). When 20161ea Regfster2lg(.fv192.. When U. emergenry regulaBm appeared ea n permanent regulation in Register215 (0c robe, 2015). the nmalatimu eBomry, in esmtdanm with AS 44.62125(bN6) teaa- signM the me wialmn In 3 MC WG -6W. 71. hietury of 3 MC 306900 rtRcte the .ffidlw duce of the Almhohe Beverege Control fieaeTs eme,rnt odoptim oftM defin6ion ofti pubW 1212 Page 134 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 135 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... U.S. Department of Justice Office of the Deputy Attorney General Te Dc y AvoiMy J1 tn,., RC MVO August 29, 2013 MEMORANDUM FOR ALL UNITED ST nS ATTORNEYS FROM: James M. Cole L Deputy Attome enerel SUBJECT: Guidance Guidance ReatudingMariivana EnforeementEnforcement In October 2009 and June 2011, the Department issued guidance to federal prosecutors concerning marijuana enforcement under the Controlled Substances Act (CSA). This memorandum updates that guidance in light of stale ballot initiatives that legalize under state law the possession of small amounts of marijuana and provide for the regulation of marijuana production, processing, and sale. The guidance set forth herein applies to all federal enforcement activity, including civil enforcement and criminal investigations and prosecutions, concerning marijuana in all states. As the Department noted in its previous guidance, Congress has detemtined that marijuana is a dangerous drug and that the illegal distribution and sale of marijuana is a serious crime that provides a significant source of revenueto large-scale criminal enterprises, gangs, and cartels. The Department of Justice is committed to enforcement of the CSA consistent with those determinations. The Department is also committed to using its limited investigative and prosecutorial resources to address the most significant threats in the most effective, consistent, and rational way. In furtherance of those objectives, as several states enacted laws relating to the use of marijuana for medical purposes, the Department in recent years has focused its efforts on certain enforcement priorities that are particularly important to the federal government: • Preventing the distribution of marijuana to minors; • Preventing revenue from the sale of marijuana from going to criminal enterprises, gangs, and cartels; • Preventing the diversion of marijuana from states where it is legal under state law in some form to other states; • Preventing state -authorized marijuana activity from being used as a cover or pretext for the trafficking of other illegal drugs or other illegal activity; Page 135 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 136 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... Memorandum for All United States Attorneys Page 2 Subject: Guidance Regarding Marijuana Enforcement • Preventing violence and the use of firearms in the cultivation and distribution of marijuana; • Preventing drugged driving and the exacerbation of other adverse public health consequences associated with marijuana use; • Preventing the growing of marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands; and • Preventing marijuana possession or use on federal property. These priorities will continue to guide the Department's enforcement of the CSA against marijuana -related conduct. Thus, this memorandum serves as guidance to Department attorneys and law enforcement to focus their enforcement resources and efforts, including prosecution, on persons or organizations whose conduct interferes with any one or more of these priorities, regardless of state law.] Outside of these enforcement priorities, the federal government has traditionally relied on states and local law enforcement agencies to address marijuana activity through enforcement of their own narcotics laws. For example, the Department of Justice has not historically devoted resources to prosecuting individuals whose conduct is limited to possession of small amounts of marijuana for personal use on private property. instead, the Department has left such lower -level or localized activity to state and local authorities and has stepped in to enforce the CSA only when the use, possession, cultivation, or distribution of marijuana has threatened to cause one of the harts identified above. The enactment of state laws that endeavor to authorize marijuana production, distribution, and possession by establishing a regulatory scheme for these purposes affects this traditional joint federal -state approach to narcotics enforcement. The Department's guidance in this memorandum rests on its expectation that states and local governments that have enacted laws authorizing marijuana -related conduct will implement strong and effective regulatory and enforcement systems that will address the threat those state laws could pose to public safety, public health, and other law enforcement interests. A system adequate to that task must not only contain robust controls and procedures on paper, it most also be effective in practice. Jurisdictions that have implemented systems that provide for regulation of marijuana activity ' These enforcement priorities are listed in general terms; each encompasses a variety of conduct that may merit civil or criminal enforcement of the CSA. By way of example only, the Department's interest in preventing the distribution of marijuana to minors would call for enforcement not just when an individual or entity sells or transfers marijuana to a minor, but also when marijuana trafficking takes place near an area associated with minors; when marijuana or marijuaua-infused products are marketed in a manner to appeal to minors; or when marijuana is being diverted, directly or indirectly, and purposefully or otherwise, to minors. Page 136 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 137 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... Memorandum for All United States Attorneys Page 3 Subject: Guidance Regarding Marijuana Enforcement must provide the necessary resources and demonstrate the willingness to enforce their laws and regulations in a manner that ensures they do not undermine federal enforcement priorities. In jurisdictions that have enacted laws legalizing marijuana in some form and that have also implemented strong and effective regulatory and enforcement systems to control the cultivation, distribution, sale, and possession of marijuana, conduct in compliance with those laws and regulations is less likely to threaten the federal priorities set forth above. Indeed, a robust system may affirmatively address those priorities by, for example, implementing effective measures to prevent diversion of marijuana outside of the regulated system and to other states, prohibiting access to marijuana by minors, and replacing an illicit marijuana trade that funds criminal enterprises with a tightly regulated market in which revenues are tracked and accounted for. In those circumstances, consistent with the traditional allocation of federal -state efforts in this area, enforcement of state law by state and local law enforcement and regulatory bodies should remain the primary means of addressing marijuana -related activity. If state enforcement efforts are not sufficiently robust to protect against the barms set forth above, the federal government may seek to challenge the regulatory structure itself in addition to continuing to bring individual enforcement actions, including criminal prosecutions, focused on those harms. The Department's previous memoranda specifically addressed the exercise of prosecutorial discretion in states with laws authorizing marijuana cultivation and distribution for medical use. In those contexts, the Department advised that it likely was not an efficient use of federal resources to focus enforcement efforts on seriously ill individuals, or on their individual caregivers. In doing so, the previous guidance drew a distinction between the seriously ill and their caregivers, on the one hand, and large-scale, for-profit commercial enterprises, on the other, and advised that the latter continued to be appropriate targets for federal enforcement and prosecution. In drawing this distinction, the Department relied on the common -seine judgment that the size of a marijuana operation was a reasonable proxy for assessing whether marijuana trafficking implicates the federal enforcement priorities set forth above. As explained above, however, both the existence of a strong and effective state regulatory system, and an operation's compliance with such a system, may allay the threat that an operation's sin poses to federal enforcement interests. Accordingly, in exercising prosecutorial discretion, prosecutors should not consider the size or commercial nature of a marijuana operation alone as a proxy for assessing whether marijuana trafficking implicates the Department's enforcement priorities listed above. Rather, prosecutors should continue to review marijuana cases on a case-by-case basis and weigh all available information and evidence, including, but not limited to, whether the operation is demonstrably in compliance with a strong and effective state regulatory system. A marijuana operation's large scale or for-profit nature may be a relevant consideration for assessing the extent to which it undermines a particular federal enforcement priority. The primary question in all cases — and in all jurisdictions —should be whether the conduct at issue implicates one or more of the enforcement priorities listed above. Page 137 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.b. Page 138 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... Memorandum for All United States Attorneys Page 4 Subject: Guidance Regarding Marijuana Enforcement As with the Department's previous statements on this subject, this memorandum is intended solely as a guide to the exercise of investigative and prosecutorial discretion. This memorandum does not alter in any way the Department's authority to enforce federal law, including federal laws relating to marijuana, regardless of state law. Neither the guidance herein nor any state or local law provides a legal defense to a violation of federal law, including any civil or criminal violation of the CSA. Even in jurisdictions with strong and effective regulatory systems, evidence that particular conduct threatens federal priorities will subject that person or entity to federal enforcement action, based on the circumstances. This memorandum is not intended to, does not, and may not be relied upon to create any rights, substantive or procedural, enforceable at law by any party in any matter civil or criminal. It applies prospectively to the cxercise of prosecutorial discretion in future cases and does not provide defendants or subjects of enforcement action with a basis for reconsideration of any pending civil action or criminal prosecution. Finally, nothing herein precludes investigation or prosecution, even in the absence of any one of the factors listed above, in particular circumstances where investigation and prosecution otherwise serves an important federal interest. cc: Mythili Raman Acting Assistant Attorney General, Criminal Division Loretta E. Lynch United States Attorney Eastern District of New York Chair, Attorney General's Advisory Committee Michele M. Leonhart Administrator Drug Enforcement Administration H. Marshall Jarrett Director Executive Office for United States Attorneys Ronald T. Hosko Assistant Director Criminal Investigative Division Federal Bureau of Investigation Page 138 of 158 Review Of Proposed Changes To Titles 3 And 5 Relating To The... AGENDA ITEM #2.c. KODIAK ISLAND BOROUGH STAFF REPORT MARCH 23. 2017 ASSEMBLY REGULAR MEETING SUBJECT: Resolution No. FY2017-35 Urging the Legislature To Adopt House Concurrent Resolution No. 8 To Maintain The Kodiak Seafood And Marine Science Center As An Important Resource In The State. ORIGINATOR: Larry LeDoux RECOMMENDATION: Adopt Resolution No. FY2017-35. DISCUSSION: This is for the Assembly to discuss adoption of Resolution No. FY2017-35 in support of House Concurrent Resolution No. 8. The Assembly have taken the following actions in the past: • October 30, 2015, A Joint Borough and City Letter was submitted to UA President James R. Johnsen urging the University of Alaska to reconsider the decision to close UAF's University of Alaska Fairbanks' Kodiak Seafood and Marine Science Center formerly, and in Alaska Statute (Title 16, Chapter 52), referred to as the Fishery Industrial Technology Center • November 5, 2015, Adopted Resolution No. FY2016-21 submitted to the Alaska Municipal League for consideration and adoption. AML membership adopted a resolution in November of 2015. • February 25, 2016, Resolution No. FY2016-28 was adopted and submitted to SWAMC for consideration and adoption. SWAMC adopted the resolution in support in 2016 and also in 2017. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 139 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2. c. Page 140 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... I Introduced by: KIB Assembly 2 Drafted by: Clerk 3 Introduced on:0312312017 4 Adopted on: 5 6 KODIAK ISLAND BOROUGH 7 RESOLUTION NO. FY2017-35 8 9 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND 10 BOROUGH URGING THE LEGISLATURE TO ADOPT CONCURRENT 11 RESOLUTION NO. 8 EXPRESSING STRONG SUPPORT FOR THE 12 KODIAK SEAFOOD AND MARINE SCIENCE CENTER; AND URGING 13 THE UNIVERSITY OF ALASKA TO MAINTAIN THE KODIAK SEAFOOD 14 AND MARINE SCIENCE CENTER AS AN IMPORTANT RESOURCE 15 FOR THE ENTIRE STATE OF ALASKA 16 17 WHEREAS, the Kodiak Seafood and Marine Science Center, known in Alaska Statute (Title 18 16 Chapter 52) as the Fisheries Industrial Technology Center (FITC), was created in Kodiak by 19 the Alaska Legislature as an applied science partnership between harvesters and processors 20 from the fishing Industry, coastal communities and the University to provide service, teaching 21 and research; and 22 23 WHEREAS, that service, leaching and research Is In support of the responsible 24 development of natural resources as well as jobs, industry and the economic vitality of the State 25 that the University of Alaska is charged to serve; and 26 27 WHEREAS, service, teaching and research conducted by KSMSC scientists, staff and 28 students has improved our understanding of natural resource communities, vulnerable marine 29 bird and mammal populations, as well as fishery processing technology, stock sustainability, 30 seafood safety, processing efficiency, food preservation and increased catch utilization across 31 the State of Alaska; and 32 33 WHEREAS, there is a strong support from Alaska Slate agencies, NGOs such as ASMI, 34 UFA and AFDF and Alaska's Seafood Industry as well as the Alaska Municipal League and the 35 Southwest Alaska Municipal Conference to find a solution that would keep the KSMSC 36 operating and stable; and 37 38 NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 39 BOROUGH, that the Alaska State Legislature is hereby urged by the Kodiak Island Borough to 40 adapt Concurrent Resolution No. 8 expressing strong support for the Kodiak Seafood and 41 Marine Science Center; and urging the University of Alaska to maintain the Kodiak Seafood and 42 Marine Science Center as an important resource for the entire State of Alaska. 43 44 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 45 THIS DAY OF , 2017. 46 47 KODIAK ISLAND BOROUGH ATTEST: 48 49 50 51 Daniel A. Rohrer, Mayor Nova M. Javier, MMC, Clerk Kodiak Island Borough, Alaska Resolution No. FY2017-35 Page 1 of 1 Page 140 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 141 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 30-LS0984�A HOUSE CONCURRENT RESOLUTION NO.8 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTIETI I LEGISLATURE - FIRST SESSION BY TBE HOUSE. SPECIAL C011MITTEE ON FISHERIES Wrudaced: 3/I/17 Referred: 1louse Special Comminee on Fisheries A RESOLUTION I Expressing the strong support of the Alaska State Legislature for the Kodiak Seafood 2 and Marine Science Center; and urging the University of Alaska to maintain the Kodiak 3 Seafood and Marine Science Center as an important resource in the state. 4 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5 WHEREAS the Alaska seafood industry employs more workers than any other 6 private sector industry in the state, employing 60,000 workers annually and providing those 7 workers with $1,600,000,000 in annual eamings; Bud 8 WHEREAS significant economic benefits accrue to the state directly from the 9 activities of the state's seafood industry; in 2014, the seafood had a harvest value of 10 $1,900,000,000 and a first wholesale value of $49200,000,000; Bud 1 I WHEREAS the number of seafood industryjobs in the state that require technical and 12 professional skill is increasing and the state is at a crossroads in its need to diversify and 13 expand its economy; and 14 WHEREAS, in 1974, a group of Alaskans from the coastal regions of the state 15 worked together to develop plans for a Fishery Industrial Technology Center that would HCRaaSS -1- HCR 8 New Text Underlined (DELETED =r BRACKETED) Page 141 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 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Page 142 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 30-LS0584tA I provide teaching, research, and services relating to the seafood industry, through the 2 University of Alaska, to citizens and businesses in the state; and 3 WHEREAS, in 1981, the Fishery Industrial Technology Center was established in 4 state statute as part of the University of Alaska; and 5 WHEREAS the statutory duties of the center include creating employment 6 opportunities in the state's fishing industry, providing training to citizens of the state in the 7 harvesting, processing, and conservation of the state's fishery resources, providing research 8 and development activities to enhance the effectiveness and economic viability of the state's 9 fishing industry, and encouraging joint projects between industry and government to use 10 industrial experience and government programs to enhance the productivity of the industry; 11 and 12 WHEREAS teaching, training, research, and technical assistance carried out at the 13 center serves all Alaskans, being primarily delivered by Alaska Sea Grant and fisheries 14 faculty who, in fiscal year 2016, provided workforce training to 265 industry members, 15 educational opportunities to 25 graduate and undergraduate students, and technical assistance 16 to over 70 seafood businesses, tribes, and communities; and 17 WHEREAS the Department of Environmental Conservation has designated the center 18 and its faculty as "process authorities" for the purposes of certifying the safety of the state's 19 seafood; and 20 WHEREAS the state built the Alfred Owen Building in 1991 to be the home for the 21 Fishery Industrial Technology Center using $10,800,000 from the state's settlement of the 22 criminal case originating from the Exxon Valdez Oil Spill, and, in 2011, the name of the 23 center was changed to the Kodiak Seafood and Marine Science Center, the facility is 20,000 24 square feet in size and has five dedicated laboratories, a pilot plant 5,000 square feet in size, 25 three freezers, and numerous offices and conference rooms; and 26 WHEREAS the state built the center on Near Island, on land that the City of Kodiak 27 donated to the University of Alaska; and 28 WHEREAS the activities of the center are guided by a seven -member Fishery 29 Industrial Technology Policy Council, composed of two members who represent the state's 30 seafood processing industry, two members who are commercial fishermen in the state, and 31 three public members who, together, assist the Board of Regents of the University of Alaska HCR 8 -2- HCROO8a New Tex[ anderiined tm;LS = BMci Tsn1 Page 142 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 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Page 143 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 30-LS0584tA I in preparing an annual report to the Alaska State Legislature on the center's activities; and 2 WHEREAS the center is a unique and well-positioned hub of knowledge, inquiry, 3 research, and work that serves many industry partners, including the Department of Fish and 4 Game, the Department of Environmental Conservation, the Department of Commerce, 5 Community, and Economic Development, the Department of Natural Resources, the Alaska 6 Fisheries Development Foundation, the Alaska Seafood Marketing Institute, the North Pacific 7 Fisheries Management Council, the National Marine Fisheries Service, the Department of 8 Education and Early Development, the Department of Labor and Workforce Development, 9 and other entities; and 10 WHEREAS the Alfred Owen Building is a key asset in delivering the opportunities 11 that the center is statutorily directed to provide and, in 2016, the legislative research services 12 described the building as continuing to be ready to meet the center's statutorily prescribed 13 duties; 14 BE IT RESOLVED that the Alaska State Legislature strongly supports the Kodiak 15 Seafood and Marine Science Center, formerly the Fishery Industrial Technology Center, as a 16 statewide hub for research, training, and technical assistance efforts to support fisheries across 17 the entire stale and urges the University of Alaska to find a solution that keeps the center 18 operating and stable. IIC11008a -3- 11CH 8 New Tex[ Underlined tDE=9D TEXT BR C"TSD] Page 143 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 144 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... �. . c�7` cZslwdB0� RR • � Db Kodiak Island Borough City of Kodiak 710 Mill Bay Road, Rm. 101 710 Mill Bay Road, Rm. 216 Kodiak, AK 99615 Kodiak, AK 99615 907.4BB.9310 907.486.8636 October 30, 2015 President James R. Johnsen University of Alaska Once of the President P.O. Box 755000 Fairbanks, AK 99775-5000 Dear President Johnsen: On behalf on the citizens of the City of Kodiak, the Kodiak Island Borough, and other Alaska communities engaged In commercial, sports and subsistence related fishing pursuits, we respectfully urge the University of Alaska to reconsider the decision to dose UAPs Kodiak Seafood and Marine Science Center, formerly, and in Alaska Statute (idle 16 Chapter 52), referred to as the Fishery Industrial Technology Center or FITC. The applied research conducted by faculty, staff, students, and visiting scientists at FITC has Improved fishery processing technology, seafood safety, and Increased catch utilization across the state. In addition, the work of FITC based scientists has brought better understanding to marine ecosystem energetics and the Interactions of marine mammals in the North Pacific Kodiak -based and visiting scientists use FITC facilities and its specialized equipment to further a deeper understanding of the complex ocean ecosystems: an understanding necessary to both develop and maintain sustainable Alaska fisheries policies. The sudden and unexpected decision by the University to close FITC at the end of the fiscal year, absent any community or Industry dialogue, suggests that the University of Alaska is preparing to abandon both a commitment to applied fisheries research as well as the close community and Industry partnerships that provide the foundation for a healthy university system. It is not our collective Intent to join the cacophony of voices demanding that local programs be spared the budget knife. Tough times require tough decisions. Our communities are also weathering the complex logistical and personnel challenges created when declining revenues test our commitment to mission and vision. However, we believe the key to an Page 144 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 145 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... President Johnsen October 30, 2015 Page 2 effective response to a fiscal crisis Is transparent and collaborative dialogue with our citizenry. It is In this spirit, that we invite the University to work collaboratively with our community to develop alternative sources for revenue to support the critical research conducted by FITC. Maintenance of FITC research, equipment, and staff through fiscal year 2017 will provide time to explore new sources of revenue while preserving the universities role In these applied fisheries related activities. The FRC facility and equipment are critical to achieving the mission. Transference of the Alfred Owen Building to another campus without underlining a requirement that it be used to support future applied fisheries research (as outlined In Alaska Statute Title 16 Chapter 52) will make it difficult to revitalize the program in the future. Plans to ship millions of dollars worth of specialized seafood processing equipment from the pilot plant and the dedicated laboratory equipment in the Organismal, Biochemistry, Chemistry, and Microbiology labs at the Alfred Owen Building to another site will be expensive and will also severely limit the potential for future productivity at the facility. Recent discussions to develop a maritime trades program by the local college are exciting and timely, but should not be used to Justify eliminating FITC. If anything, FRC can be a critical hub for teaming these trades. The University of Alaska is undergoing significant leadership changes with a new statewide president, UAF chancellor, and a new UAF School of Fisheries and Ocean Sciences dean. Delaying this potentially devastating decision for one fiscal year will provide sufficient time for leadership to review and evaluate the critical role FITC plays statewide. Because FITC was created by Alaska Statute with a continuing appropriation, k will be Important to consult with Legislative leaders before eliminating the program. Maintenance of even partial funding for a year will provide time for the scientific community, civic leaders, fishers, processors and those who see the value in applied fisheries research to explore other funding streams. Partnerships with other Sea Grant institutions, public and private grants or new fisheries research opportunities with Interested state or federal agencies are feasible, plentiful, and worthy of exploring. The decision and timing to dose FITC was made in the absence of community dialogue. once a decision is announced, the community is placed in a reactive or defensive posture rather than engaged in the positive and proactive process necessary for effective problem solving. The current fiscal crisis can represent an opportunity for the University to collaborate with stakeholders to Identify innovative strategies to renew and revitalize FITC. Or it can be used to cloak and Justify top down program cuts made In the absence of community dialog and without Input from the largest employment sector in the state. The University of Alaska was charged with supporting and maintaining the Fishery Industrial Technology Center, a vision of 24 citizens from coastal Alaska more than 30 years ago. It was brought to fruition by the Alaska Legislature with His mission and functions encoded in Page 145 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 146 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... President Johnsen October 30, 2015 Page 3 Slate Statute. Transferring the Alfred Owen Building's administrative home, moving faculty to different campuses and cannibalizing the equipment housed at FITC surely represents an abrogation of the responsibility the University accepted when the Alaska Slate Legislature created FITC. Alaska's fishing Industry cannot afford to stand Idly by while critical fisheries research programs wither away until their purpose, vitality and vision is no longer recognizable. We eagerly anticipate a professional discourse with University leadership to address and hopefully resolve this issue. Sincerely, 3W, r Jenol Friend, Mayor Pat Branson, Mayor Kodiak Island Borough City of Kodiak Cc: Governor Bill Walker Senator Gary Stevens Representative Louise Stutes Page 146 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 147 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 148 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 1 Inlroduced by: KIB Assembly 2 Requested by: KIB Assembly 3 Drs led by: Assembly members 4 LeDou%end Crow 5 Introduced on: 11/052015 Adopted on: 111052015 6 7 B KODIAK ISLAND BOROUGH 9 RESOLUTION NO. FY 2016-21 10 11 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 12 URGING THE UNIVERSITY OF ALASKA TO RECONSIDER THE DECISION 13 TO CLOSE THE UNIVERSITY OF ALASKA FAIRBANKS' KODIAK SEAFOOD 14 AND MARINE SCIENCE CENTER, FORMERLY, AND IN ALASKA STATUTE 15 (TITLE 16 CHAPTER 52), REFERRED TO AS THE FISHERY INDUSTRIAL 16 TECHNOLOGY CENTER (FITC) 17 1B WHEREAS, the State of Alaska is currently facing fiscal difficulties as a result of an 19 overdependence an oil prices and needs a more diversified base of income and, 20 21 WHEREAS, the Stale of Alaska has an abundance of other natural resources, including a 22 rich and robust abundance of fish that drives Alaska's largest economic employment sector, It is 23 Imperative that this resource is well managed to ensure it Is sustainably and safely harvested, -i 24 processed, marketed, and distributed to provide the maximum benefit and value to the State of 25 Alaska — 26 27 WHEREAS, the Kodiak Seafood and Marine Science Center, known In Alaska Statute as 28 the Fisheries Industrial Technology Center (FITC) in Kodiak, was created by the University In 29 response to a charge by the Alaska Legislature (Tile 16 Chapter 52) to represent an applied 30 science partnership between the fishing industry, coastal communities and the University where 31 members of the Alaska Seafood Industry (harvesters, processors and community members) 32 present the questions they need answered and scientists at FITC endeavor to answer them. 33 34 WHEREAS, academic research represents a core mission of UAF, applied research 35 supports the jobs, industry and economic vitality of the communities the University of Alaska is 36 charged to serve. 37 38 WHEREAS, Applied Seafood Research conducted by FITC scientists staff, students and 39 visiting scientists has improved fishery processing technology, stock sustainability, seafood 40 safety, processing efficiency, food preservation and increased catch utilization across the state; 41 and 42 43 WHEREAS, the University of Alaska Fairbanks (UAF) has announced the closure of the 44 Kodiak Seafood and Marine Science Center in Kodiak, the transfer of the Alfred Owen 45 Building's administrative home, the transfer of remaining faculty and the dismantling of the 46 seafood processing Pilot Plant; and Kodiak Island Borough Resolution No. FY2016-21 -- Page 1 oft Page 148 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. 47 48 WHEREAS, the decision to close the facility was copducted without consultation with FITC 49 staff, fishing communities, Industry or others dependent of the fishing industry; and 50 51 WHEREAS, the FITC facility and equipmeril are critical to achieving the mission; and 52 53 WHEREAS, the sudden and unexpected decision by the UAF to close the FITC at the end 54 of the fiscal year suggests that UAF is preparing to abandon both a commitment to applied 55 fisheries research as well as the close community and industry partnerships that provide the 56 foundation for a healthy University system; and 57 5B WHEREAS, the key to an effect response to a fiscal crisis Is transparent and collaborative 59 dialogue with the citizenry it serves; and Go 61 NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 62 BOROUGH, that the University of Alaska maintain FITC research, facilities, equipment and 63 staff through fiscal year 2017 to allow sufficient time for the University and Alaska's communities 64 to discuss challenges and opportunities related to the mission, operation and funding of the 65 FITC. 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 eB BE IT FURTHER RESOLVED that new university leaders in the offices of statewide system president, UAF chancellor and UAF School of Fisheries and Ocean Sciences dean engage in open dialogue with Alaska's fishing communities relative to the preservation of the FITC as a focus of the universities commitment to the critical need for applied fisheries research. BE IT FURTHER RESOLVED that upon adoption, this Resolution shall he submitted to the membership of the Alaska Municipal League for consideration and adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FIFTH DAY OF NOVEMBER 2005 ATT ST: Nova 12. Javier, MMC, 4ftmhlerk Kodiak Island Borough KODIAK ISLAND BOR GH rml Friend, Borough Mayor Resolution No. FY2016-21 Page 2 of 2 J Page 149 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 150 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... oxe�trw fkmn=UD 0 • Juneau, Alaska 99801 Tel (907) 586-1325 • Fax (907) 463-5480 • w .akml.otg ALASKA MUNICIPAL LEAGUE RESOLUTION #2016.10 A RESOLUTION URGING THE UNIVERSITY OF ALASKA TO RECONSIDER THE DECISION TO CLOSE THE UNIVERSITY OF ALASKA/FAIRBANKS' KODIAK SEAFOOD AND MARINE SCIENCE CENTER, FORMERLY KNOWN AS AND REFERRED TO IN ALASKA STATUTE (TITLE 16, CHAPTER 52) AS THE FISHERY INDUSTRIAL TECHNOLOGY CENTER (FITC) WHEREAS, the State of Alaska Is currently facing fiscal difficulties as a result of an overdependence on ail prices and needs a more diversified base of Income; and WHEREAS, the State of Alaska has an abundance of other natural resources, including a rich and robust abundance of fish that drives Alaska's largest economic employment sector, it Is Imperative that this resource Is well managed to ensure It Is sustainably and safely harvested, processed, marketed, and distributed to provide the maximum benefit and value to the State of Alaska; and WHEREAS, the Kodiak Seafood and Marine Science Center, known In Alaska Statute as the Fisheries Industrial Technology Center (FITC) in Kodiak, was created by the University in response to a charge by the Alaska Legislature (Title 16, Chapter 52) to represent an applied science partnership between the fishing Industry, coastal communities, and the University, where members of the Alaska seafood Industry (harvesters, processors and community members) present the questions they need answered and scientists at FITC endeavor to answer them; and WHEREAS, academic research represents a core mission of UAF, applied research supports the )obs, industry, and economic vitality of the communities the University of Alaska is charged to serve; and WHEREAS, applied seafood research conducted by FITC scientists, staff, students and visiting scientists has improved fishery processing technology, stock sustainability, seafood safety, processing efficiency, food preservation, and increased catch utilization across the state; and WHEREAS, the University of Alaska/Fairbanks (UAF) has announced the closure of the Kodiak Seafood and Marine Science Center In Kodiak, the transfer of the Alfred Owen Building's administrative home, the transfer of remaining faculty and the dismantling of the seafood processing Pilot Plant; and Member of the National League of Cities and the National Association of Counties Page 150 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 151 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... WHEREAS, the decision to close the faculty was conducted without consultation with FITC staff, fishing communities, industry or others dependent on the fishing industry; and WHEREAS, the FITC faculty and equipment are critical to achieving the mission; and WHEREAS, the sudden and unexpected decision by the UAF to close the FITC at the end of the fiscal year suggests that UAF is preparing to abandon both a commitment to applied fisheries research, as well as the close community and Industry partnerships that provide the foundation for a healthy University system; and WHEREAS, the key to an effective response to a fiscal crisis Is transparent and collaborative dialogue with the citizenry if serves. NOW, THEREFORE BE IT RESOLVED that the University of Alaska maintain FITC research, facilities, equipment and staff through fiscal year 2017 to allow sufficient time for the University and Alaska's communities to discuss challenges and opportunities related to the mission, operation, and funding of the FITC. BE IT FURTHER RESOLVED that new University leaders in the offices of statewide system President, UAF Chancellor and UAF School of Fisheries and Ocean Sciences Dean, engage in open dialogue with Alaska's fishing communities relative to the preservation of the FITC as a focus of the University's commitment to the critical need for applied fisheries research. PASSED AND APPROVED by the Alaska Municipal League on this 201° day of November, 2015. j /� 4 ll of Signed: Bob Harcharek, President, Alaska Municipal League Attest: Kathie Wasserman, Executive Director, Alaska Municipal League Page 151 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 152 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 1 Introduced by: KIB Assembly 2 Requested by: KIB Assembly 3 Member Skinner 4 Drafted by: Assembly members LeDoux and C. 5 Introduced on: 02/252016 6 Adopted on: 02252016 7 8 9 KODIAK ISLAND BOROUGH 10 RESOLUTION NO. FY 2016-28 11 12 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 13 URGING THE UNIVERSITY OF ALASKA TO RECONSIDER THE DECISION 14 TO CLOSE THE UNIVERSITY OF ALASKA FAIRBANKS' KODIAK SEAFOOD 15 AND MARINE SCIENCE CENTER, FORMERLY, AND IN ALASKA STATUTE 16 (TITLE 16 CHAPTER 52), REFERRED TO AS THE FISHERY INDUSTRIAL 17 TECHNOLOGY CENTER (FITC) AND UPON ADOPTION, SUBMITTING THIS 18 RESOLUTION TO THE SOUTHWEST ALASKA MUNICIPAL CONFERENCE 19 FOR CONSIDERATION AND ADOPTION 20 21 WHEREAS, the State of Alaska is currently facing fiscal difficulties as a result of an 22 overdependence on oil prices and needs a more diversified base of income and, 23 24 WHEREAS, the State of Alaska has an abundance of other natural resources, including a 25 rich and robust abundance of fish that drives Alaska's largest economic employment sector, it is 26 imperative that this resource is well managed to ensure It Is sustainably and safely harvested, 27 processed, marketed, and distributed to provide the maximum benefit and value to the State of 28 Alaska 29 30 WHEREAS, the Kodiak Seafood and Marine Science Center, known in Alaska Statute as 31 the Fisheries Industrial Technology Center (FITC) in Kodiak, was created by the University in 32 response to a charge by the Alaska Legislature (Title 16 Chapter 52) to represent an applied 33 science partnership between the fishing industry, coastal communities and the University where 34 members of the Alaska Seafood Industry (harvesters, processors and community members) 35 present the questions they need answered and scientists at FITC endeavor to answer them. 36 37 WHEREAS, academic research represents a core mission of UAF, applied research 38 supports the jobs, Industry and economic vitality of the communities the University of Alaska is 39 charged to serve. 40 41 WHEREAS, Applied Seafood Research conducted by FITC scientists staff, students and 42 visiting scientists has improved fishery processing technology, stock sustainability, seafood 43 safety, processing efficiency, food preservation and Increased catch utilization across the slate; 44 and 45 Kodiak Island Borough Resolution No. FY2016-26 Page 1 of 2 Page 152 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 153 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... 46 WHEREAS, the University of Alaska Fairbanks (UAF) has announced the closure of the 47 Kodiak Seafood and Marine Science Center in Kodiak, the transfer of the Alfred Owen 48 Building's administrative home, the transfer of remaining faculty and the dismantling of the 49 seafood processing Pilot Plant; and 50 51 WHEREAS, the decision to close the facility was conducted without consultation with FITC 52 staff, fishing communities, industry or others dependent of the fishing industry; and 53 54 WHEREAS, the FITC facility and equipment are critical to achieving the mission; and 55 56 WHEREAS, the sudden and unexpected decision by the UAF to close the FITC at the end 57 of the fiscal year suggests that UAF is preparing to abandon both a commitment to applied 58 fisheries research as well as the Gose community and industry partnerships that provide the 59 foundation for a healthy University system; and 60 61 WHEREAS, the key to an effect response to a fiscal crisis Is transparent and collaborative 62 dialogue with the citizenry it serves; and 63 64 NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND 65 BOROUGH, that the University of Alaska maintain FITC research, facilities, equipment and 66 staff through fiscal year 2017 to allow sufficient time for the University and Alaska's communities 67 to discuss challenges and opportunities related to the mission, operation and funding of the 6s FITC. 69 7o BE IT FURTHER RESOLVED that new university leaders in the offices of statewide system 71 president, UAF chancellor and UAF School of Fisheries and Ocean Sciences dean engage in 72 open dialogue with Alaska's fishing communities relative to the preservation of the FITC as a 73 focus of the universities commitment to the critical need for applied fisheries research. 74 75 BE IT FURTHER RESOLVED that upon adoption, this Resolution shall be submitted to the 76 membership of the Southwest Alaska Municipal Conference for consideration and adoption. 77 78 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 79 THIS TWENTY FIFTH DAY OF FEBRUARY, 2016 80 KODIAK ISLAND BOROU H j ATTEST: rtol rie ugh Mayor AUX 81 Nava M. Javier, Ii Borough Clerk Kodiak Island Borough Resolution No. FY2016-28 Page 2 of 2 Page 153 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 154 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... "� Akxka Peninsula Southwest Alaska Municipal Conference AkutWnChain 611sro� bay SWAN�i 4 3300M ReeWwrd. Suite 903 Asxhmage,AK995113 P. 907.562.7380 vwwswamcesg xodkk Iskna Pdbibf Isle s MEMBERSHIP RESOLUTION FY17-04 A RESOLUTION BY THE SOUTHWEST ALASKA MUNICIPAL CONFERENCE (SWAMC) MEMBERSHIP GIVING STRONG SUPPORT FOR THE KODIAK SEAFOOD AND MARINE SCIENCE CENTER AND URGING THE UNIVERSITY OF ALASKA TO MAINTAIN THE CENTER AS AN IMPORTANT RESOURCE FOR THE STATE WHEREAS, the Alaska seafood Industry employs mare workers than any other private sector industry In the state, employing 60,000 workers and providing those workers with $1.6 billion annual earnings; and WHEREAS, significant economic benefits accrue to Alaskans from activities of the state's seafood Industry; In 2014, seafood had a harvest value of $1.9 billion and a first wholesale value of $4.2 billion; and WHEREAS, the number of seafood industry Jobs In the state that require technical and professional skill is increasing and the state is at a crossroads In Its need to diversify and expand Its economy; and WHEREAS, the statutory duties of the Kodiak Seafood and Marine Science Center (KSMSC) Include creating employment opportunities In the state's fishing industry, providing training to citizens of the state In the harvesting, processing, and conservation of the state's fishery resources, providing research and development activities to enhance the effectiveness and economic viability of the state's fishing Industry, and encouraging Joint projects between Industry and government to use Industrial experience and government programs to enhance the productivity of the Industry; and WHEREAS, Alaska Sea Grant services focusing on teaching, training, research, and technical assistance carried out at KSMSC serves all Alaskans, and in fiscal year 2016 provided workforce training to 265 Industry members, educational opportunities to 25 graduate and undergraduate students, and technical assistance to over 70 seafood businesses, tribes, and communities; and WHEREAS the Department of Environmental Conservation has designated the center and Its faculty as "process authorities" for the purposes of certifying the safety of the state's seafood; and WHEREAS, the center Is a unique and well-positioned hub of knowledge, Inquiry, research, and work, serving Industry partners, state and federal agencies and commissions, and the Kodiak community; and WHEREAS, Sea Grant Is a key SWAMC Partner to the federally designated National Institute of Standards and Technology's Manufacturing Extension Program (NIST MEP), distributing up to $50O,DDO of funding annually and could compromise Alaska's effective management of the NIST MEP program without the services provided by Sea Grant at the KSMSC; and WHEREAS, KSMSC is a community asset, statutorily directed to provide support and opportunity. -MORE- Ecanoink development and advocacyforSouthwest Alaska Economic Development District (EDD) and Alaska Regional Development Organization (ARDOR) Page 154 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.c. Page 155 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... Board Resolution FY17-04 Page 2 ole NOW BE IT RESOLVED that the Southwest Alaska Municipal Conference Membership strongly supports the Kodiak Seafood and Marine Science Center as a statewide hub for research, training, and technical assistance efforts to support fisheries across the entire state and urges the State of Alaska and University of Alaska to adequately fund this vital center and find a solution that keeps the center operating and stable. PASSED AND ADOPTED by the Southwest Alaska Municipal Conference Membership this 3rd day of March, 2017. IN WITNESS THERETO: Rebecca Skinner, SWAMC President Doug Griffin, SWAMC Executive/Director Page 155 of 158 Discussion Of Resolution No. FY2017-35 Urging The Legislatur... AGENDA ITEM #2.d. KODIAK ISLAND BOROUGH STAFF REPORT MARCH 16. 2017 ASSEMBLY WORK SESSION SUBJECT: Discussion Of A Complaint Based System ORIGINATOR: Rebecca Skinner RECOMMENDATION: The discussion is for information gathering, understanding the baseline, and formulate more specific questions to move forward. DISCUSSION: This item was requested by Assembly member Skinner for Staff to first explain how the existing system works, address other options, and concerns regarding the existing system. Attached is a memo from staff. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Page 156 of 158 Discussion Of A Complaint Based System AGENDA ITEM #2.d. Page 157 of 158 Discussion Of A Complaint Based System Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Memorandum Date: March 15, 2017 To: Borough Mayor and Assembly Cc: Borough Manager From: Community Development Director RE: Current Code Enforcement System Overview On March 15, 2017 staff was asked to prepare a document outlining the current code enforcement system as the basis for discussion on the topic at the March 16, 2017 Work Session. Procedures The Borough's current code enforcement procedures were enacted through adoption of Resolution No. FY 91-20 and are summarized below. 1. Accept the Complaint • Review the Borough Code and determine if the complaint involves a land use violation. • Keep a log of all complaints. 2. Investigate the Complaint • Check all Borough property files for activities on the property relevant to the current complaint. • Perform on-site inspection and attempt contact with the alleged violator. • For valid violations—create an enforcement file for the property. • For invalid complaints—create a summary memo for inclusion in the general property file. 3. Enforcement Action • Contact the property owner (telephone/on-site) within 7 days. • Send letters based on severity of violation. • Administrative decisions may be appealed by the violator. 4. Follow Up • Inspect property to ensure abatement of violation Page 157 of 158 Discussion Of A Complaint Based System AGENDA ITEM #2.d. Page 158 of 158 Discussion Of A Complaint Based System o If abatement has not occurred, but progress or intentions of compliance have been expressed, the deadline for abatement may be extended. o If no apparent effort has been made or no Intentions of compliance have been expressed, authorization for legal action will be submitted. • One final time extension may be granted to the violator after legal action has been initiated. • Legal proceeding may occur. Policy In addition to these procedures, the following policy directives are also Included in Resolution No. FY 91-20. • Signed complaint forms, alleged violations brought up at public meetings or resulting from P&Z cases receive priority. Unsigned complaints or complaints received anonymously by telephone are pursued on a time available basis. • Staff may use discretion on the course of enforcement action based on the severity of the violation. o Immediate threats to health and safety may be issued stop -work orders and presented court Injunctions. o Nan-sedous violations will be sent non -certified letters of warning (Letter of Courtesy & Advisory) with a 15 -day deadline for abatement. o Serious or established violations will be sent certified administrative decisions (Notice of Violation). • Compliance deadlines set by administrative decisions are based on staffs discretion. a The general deadline is 30 days. o Involved violations may require 60 days or longer. • Appeals of administrative decisions must be made within 10 days of receipt of said decision. o An appeal stays any administrative decision until the Planning & Zoning Commission affirms or reverses the decision in whole or in part. o If no relief is granted, the deadline for abatement is reestablished. • In order to be granted one final time extension after legal action has been initiated, a violator must execute a "confession of judgement" offering an appropriate abatement schedule. Staff Comments The Borough's cede enforcement system has been characterized as a "complaint -based system", and the policies and procedures laid out in Resolution No. FY 91-20 focus on receiving and investigating complaints. However, there is nothing In this resolution prohibiting the code enforcement officer—other any other Borough staff --from acting as a complainant Further, KIBC 17.210 gives the [code enforcement] officer broad enforcement powers with no restrictions based on method of Initiation for investigation or enforcement of land use violations. Related to complaints, Resolution No. 98-22 identifies "the name, address, telephone number or other Identifying Information about complainants in actions to enforce borough ordinances" as records which are not to be disclosed under the Alaska Public Records Act. 2 Page 158 of 158 Discussion Of A Complaint Based System From: Kyle Crow rmailto•kvle.crow@kibassemblv.orgI Sent: Thursday, March 16, 2017 12:22 PM To: Dan Rohrer; Larry LeDoux; Nova Javier; Michael Powers Subject: Complaint issue materials for work session packet I'm not sure who to ask so have included the four of you on this e-mail. I've attached copies of the information I've previously submitted for review (draft ordinance and suggested wording for the proposed code change related to the "anonymous complaint" issue) and I think it would be worthwhile to include these materials in the meeting packet so that everyone has a copy to refer to during our discussion. Thanks Kyle 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Introduced by: Requested by: Drafted by: Introduced: Public Hearing: Amended: Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. XXXXX Assemblymember Crow Assemblymember Crow Assemblymember Crow AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH TO DIRECT THE PLANNING AND ZONING COMMISSION TO AMEND TITLE 17 ZONING CODE TO IDENTIFY COMPLAINANTS. WHEREAS, The Kodiak Island Borough Title 17 Zoning Ordinance has not been comprehensively updated since the late 1960's. WHEREAS, Beginning in 2010, the Kodiak Island Borough Planning Department undertook an effort to produce a comprehensively update to of Titles 16, 17 and 18; and WHEREAS, The Assembly appointed a Project Advisory Committee (PAC) and contracted with a consultant to provide guidance and assist the Community Development Department in this effort. The PAC met some 19 times and their final recommendations were transmitted to the Planning and Zoning Commission (Commission). The Commission then held 29 work sessions or special meetings to review the draft code revisions. During late 2014 and early 2015 several public hearings were held, and the draft codes were rejected and indefinitely tabled due to overwhelming negative public sentiment. And WHEREAS, T he public sentiment expressed at the hearings, and as supported by the Commission, was that while the proposed draft codes did provide some public benefits and improvements over the existing codes, in total they went much further than what was desired or needed and during a Special Meeting held on February 4, 2015, the Commission unanimously voted to modify the existing Code "to improve the ease of use, to give clarity, to maximize freedom of private property use, and to limit control of local government power; and WHEREAS, One of the deficiencies of the current code is the enforcement of violations through anonymous complaints; and WHEREAS, These complaints can often be arbitrary and unfairly single out individuals that may be doing something that their neighbors, and even the complainant may be doing with impunity. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Kodiak Island Borough, Alaska Ordinance No. 88-13 Page 1 of 2 50 51 52 53 54 55 56 57 58 59 Section 1: The Planning and Zoning Commission shall expeditiously hold hearings and seek public comments and amend the Title 17 Zoning Code, to appropriately address and resolve this issue in a manner that the citizens of this community desire, using as a general guide, the attached suggested language provided by Assembly member Crow. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS FOURTH DAY OF XXXXXXX ATTEST: 74 Borough Clerk Kodiak Island Borough, Alaska KODIAK ISLAND BOROUGH Ordinance No. 98-13 Page 2 of 2 17.210.010 Administrative enforcement action. A. The zoning officer may order: 1. The discontinuation of unlawful uses of land or structures; 2. The removal or abatement of unlawful structures, or any unlawful additions or alterations thereto; 3. The discontinuation of construction or other preparatory activity leading to an unlawful structure or an unlawful use of a land or structure; 4. When necessary to ensure compliance with this title, the suspension or revocation of building permits, variances, or other borough land use entitlements. Upon complaint by a citizen, or upon his own initiative, the zoning officer may, after investigation, initiate criminal proceedings against any person for the violation of this title. Except for prosecutions for failing to comply with an order issued under subsection A of this section, the zoning officer shall give at least 30 days' written notice of intent to prosecute, and may initiate criminal proceedings only if the violation is not cured within the notice period. [Ord. 83-59-0 §1, 1983; Ord. 81-12-0 §6, 1981; Ord. 80-24-0 §3, 1980. Formerly §17.75.010]. 1. Complaints Any person may file a signed written complaint with the Zoning Enforcement Agent and/or Code Compliance Specialist addressing a violation of these Regulations. The complaint shall fully describe the facts supporting the complaint. Upon receipt of a written signed complaint the Zoning Enforcement Agent and/or Code Compliance Specialist shall record and investigate the complaint, and determine if a violation exists. If the Zoning Enforcement Agent and/or Code Compliance Specialist determine a violation exists, then they shall take appropriate action to resolve the violation. The name of the person filing the complaint shall remain confidential until the violation is resolved and/or there is a public hearing on the matter. Upon receipt of an anonymous or verbal complaint the Zoning Enforcement Agent and/or Code Compliance Specialist may take appropriate action as time permits. 17.210.020 Administrative Inspections. In accordance with this section, the zoning officer may make inspections necessary to enforce the provisions of this title. When the zGRiAg effiEeFb" Feasenable cause `e belie' The Zoning Enforcement Agent and/or Code Compliance Specialist shall review these Regulations and other applicable public information regarding an observed, perceived, or an alleged violation. The Zoning Enforcement Agent and/or Code Compliance Specialist maV perform an inspection of an alleged violation from a public road or from a neighboring property where permission has been granted for access. The Zoning Enforcement Agent and/or Code Compliance Specialist may also notify the alleged violator, and request access for an inspection If access is denied the investigator maV seek an administrative warrant. Permission for access is assumed in the event an alleged violator has a pending permit application on file with the Planning Department The investigator shall document the inspection with written notes and/or photographs as appropriate When the zoning officer has reasonable cause to believe there exists anV violation of this title, and permission to enter a property or premises is denied by the owner, where the Constitution of the United States or the state of Alaska requires that the zoning officer obtain a search warrant before making an inspection, he shall not make the inspection until authorized to do so by a search warrant issued by a court of competent jurisdiction. ml ,__.M The Zoning Enforcement Agent and/or Code Compliance Specialist shall review these Regulations and other applicable public information regarding an observed, perceived, or an alleged violation. The Zoning Enforcement Agent and/or Code Compliance Specialist maV perform an inspection of an alleged violation from a public road or from a neighboring property where permission has been granted for access. The Zoning Enforcement Agent and/or Code Compliance Specialist may also notify the alleged violator, and request access for an inspection If access is denied the investigator maV seek an administrative warrant. Permission for access is assumed in the event an alleged violator has a pending permit application on file with the Planning Department The investigator shall document the inspection with written notes and/or photographs as appropriate When the zoning officer has reasonable cause to believe there exists anV violation of this title, and permission to enter a property or premises is denied by the owner, where the Constitution of the United States or the state of Alaska requires that the zoning officer obtain a search warrant before making an inspection, he shall not make the inspection until authorized to do so by a search warrant issued by a court of competent jurisdiction. From: Sara Mason Sent: Thursday, March 16, 2017 3:21 PM To: Michael Powers; Nova Javier; Kyle Crow; Dan Rohrer; Larry LeDoux Subject: RE: Complaint issue materials for work session packet Hi all, The code enforcement complaint system isn't codified. It's structure was enacted by resolution in the early 90s; Resolution No. FY 1991-20. The definitive protection for complainants comes from language found in Resolution No. FY 1998-22, pertaining to the Alaska Public Records Act. Both of these are attached for reference. As far as additional code citations go, there are a number of other places where the terms "enforcement officer", "zoning officer", and "peace officer" show up. 6.04.030 and 6.04.230 (Animal Control) 8.25.230 and 8.25.240 (Health and Safety) 9.20 (Public Peace, Morals, and Welfare) I don't know that they need to be included in the packet for tonight's introductory discussion, but it might be good for everyone to know they're out there. Just my two cents. See you this evening, Sara Sana Afman Director Community Development Department 710 Mill Bay Road Kodiak, Alaska 90615 P:(907)486-0360 F:(9o7)486-9396 Email Introduced by: Mayor Selby Recommended by: Planning & Zoning Commission Introduced: 06/20/91 Adopted: 06/20/91 KODIAK ISLAND BOROUGH RESOLUTION NO. 91-20 A RESOLUTION ESTABLISHING A ZONING ENFORCEMENT PROCEDURE WHEREAS, Chapter 29.40 of the Alaska Statutes establishes the authority for planning and describes municipal planning powers in Alaska; and requires that first and second class boroughs provide for planning, platting and land use regulation on an areawide basis in accordance with a comprehensive plan; and WHEREAS, one of the most important tools for implementing the Kodiak Island Borough's comprehensive plan is Title 17 Zoning, of the Borough Code; and WHEREAS, an important aspect of implementing the Borough's zoning regulations is zoning enforcement; and WHEREAS, the Kodiak Island Borough Assembly adopted Resolution No. 90-26 in April of 1990 which established a Zoning Enforcement Policy; and WHEREAS, the Kodiak Island Borough Planning and Zoning Commission has recommended that the Kodiak Island Borough Assembly adopt the Zoning Enforcement Procedure, dated January 1991, to implement the Zoning Enforcement Policy; NOW, THEREFORE, BE IT RESOLVED BY THE KODIAK ISLAND BOROUGH ASSEMBLY that the Zoning Enforcement Procedure for the Kodiak Island Borough is as follows: KODIAK ISLAND BOROUGH ZONING ENFORCEMENT PROCEDURES January 1991 ACCEPT Ti r�rE COMPLAINT iN T A. Determine if the complaint involves a land use violation. (If not, refer the complainant to the Building Official, Department of Environmental Conservation, Corps of Engineers, or other appropriate agency.) Kodiak Island Borough, Alaska Resolution No. 91-20 Page 1 of 5 B. Review the Borough Code. If there appears to be a land use violation, assist the complainant in filling out a violation complaint form. Signed complaint forms receive priority. C. If the complainant declines to fill out a violation complaint form, staff should fill out the form as completely as possible from the information provided by the complainant. Signed complaints and alleged violations brought up at public meetings or resulting from Planning and Zoning Commission cases receive priority. Unsigned complaints or complaints received anonymously by telephone are pursued on a time available basis. D. Each violation complaint should be noted in the violation database and the current status of the violation kept up to date. Complaints that are determined to be invalid or are referred to another agency should also be entered into the database with the appropriate determination. 2. INVESTIGATE THE COMPLAINT A. Check the department property files to see if there have been previous complaints or building activity on the property that are relevant to the current complaint. B. Check Assessing Department and Building Department files to see if they contain information, permits, photos, or other data relevant to the complaint. C. Make an on-site inspection to become familiar with the conditions on the property, documenting with photos the alleged violations and making personal contact, if possible, with the property owner and/or violator to explain the complaint and violation. D. If the violation is determined to be valid, reopen the violation file for the property in question if one exists, or set up a violation (red -label) file if one doesn't already exist. If the complaint is not valid and no zoning violation exists, or if it is ultimately referred to another agency, place a memo to this effect in the general (green -label) property file. 3. ENFORCEMENT ACTION A. Contact the Property Owner: Personal contact (telephone/on-site) should be made with the violator and/or property owner within seven (7) calendar g rade uaya of re�cIVI a is wiTipial k oxpiainln 1 U E at � re � � section) and indicating how and when it should be corrected. A letter will be sent to the property owner, and/or any violator, within seven (7) calendar days of contact. The seriousness of the violation and whether or not personal contact has been made will dictate whether this letter is sent Kodiak Island Borough, Alaska Resolution No. 91-20 Page 2 of 5 certified mail. Any violation, regardless of the degree of seriousness, in which personal contact with the violator or property owner is not made after three (3) documented attempts within seven calendar days will result in an administrative decision sent by certified mail to the property owner. If a violation is potentially hazardous and presents an immediate threat to health and welfare, a stop -work order will be issued and hand -delivered on site to whomever is engaged in the activity. A court injunction will be sought to ensure that the activity is not continued until the health threat is resolved and the zoning violation abated. A copy of the stop -work order will be mailed certified to the property owner, if different from the person to whom the order was hand delivered on site. 2. If the violation is "non -serious" in nature (i.e. signs, small amounts of fishing gear, mobile illegal dwelling, non -permitted home occupations) and just beginning, as opposed to established and getting worse, and personal contact has been made, a non -certified warning letter will be sent setting a fifteen (15) calendar day deadline for abatement. This letter will state that failure to meet the deadline will result in a final administrative decision and further enforcement action. A site inspection will be conducted to verify compliance with the deadline. 3. If the violation is serious and established, personal contact will be followed with a certified letter setting a compliance deadline by administrative decision. B. Administrative decisions: Administrative decisions will generally establish a thirty (30) calendar day compliance deadline. For more entrenched, longstanding violations requiring major structural alteration, large-scale clean-up, or displacement of occupants, a sixty (60) calendar day --or longer --deadline will generally be established, at staffs discretion. The administrative decision will also indicate that the decision is final unless appealed to the Planning and Zoning Commission within ten (10) days of receipt of the letter, list the penalties specified by Code for failure to appeal or comply, and state that further enforcement will be in the form of legal action. Copies of the letter will go to the file, complainant, violator and/or property owner, Planning and Zoning Commission, Borough Attorney, appropriate lending institution and other departments as relevant. C. Appeals: An appeal of an administrative decision to the Planning and Zoning Commission is valid only if filed in writing with the Community Development Department within ten (10) days of receipt of the certified letter giving notice of the administrative decision. When an enforcement Kodiak Island Borough, Alaska Resolution No. 91-20 Page 3 of 5 case is appealed to the Planning and Zoning Commission, a new P & Z case file is created, An appeal stays any administrative decision until the Commission either affirms or reverses the decision in whole or in part. If the administrative decision is affirmed and no relief is granted, the original time period setting a compliance deadline is reestablished. Therefore, if a 30 -day deadline was originally established to abate the zoning violation, the 30 -day clock starts ticking on the date of the Planning and Zoning Commission's affirmation of the administrative decision, unless some other deadline is established by the Commission. A site inspection will be scheduled to verify compliance with any deadline. Should the Commission's affirmation or reversal be further appealed to the City Council or Borough Assembly, this same guideline will apply. Noncompliance by a final deadline will result in an Authorization -To -Seek -Legal -Opinion being filled out and submitted as outlined in 4C. 4. FOLLOW UP A. Inspect the property to ensure that the violation has been abated. If the issue has been resolved and the violation abated, the "case will be closed" with a memo to the file and/or a letter of acknowledgement to the property owner and/or violator, and a copy to the complainant. The file is then returned to the Department's general property files and the compliance date entered into the database. B. If the violation has not been abated but obvious progress has been made and the property owner and/or violator has personally expressed the intention of complying, the deadline may be extended for a time period appropriate to the circumstances (i.e. a fisherman in the Bering Sea). This extension, in most cases, will not exceed 20 calendar days, and should be confirmed by phone or personal contact with the property owner and/or violator and followed up with a note to the file. The intention, here, is to be consistent with the philosophy underlying the Zoning Enforcement Policy of focusing on elimination of the violation, not punishment of the violator. C. If a site inspection on the deadline reveals that the violation continues with no apparent effort made to correct it, and that the property owner and/or violator has chosen to ignore the deadline and the directive to abate the violation, a standard Authorization -To -Seek -Legal -Opinion form will be filled out and submitted for signatures authorizing legal action. D. If.after leaal action has been initiated, the property owner and/or violator asks for additional time in order to comply with the administrative decision, the property owner and/or violator may receive one final extension if a "confession of judgment" offering an appropriate schedule to abate the violation is executed. Kodiak Island Borough, Alaska Resolution No. 91-20 Page 4 of 5 PASSED AND APPROVED THIS 20th DAY OF JUNE, 1991. KODIAK ISLAND BOROUGH Borough -M or Pres ing Offic7 ATTEST: _i-' rnbl la /..t1 LCA Borough Clerk Kodiak Island Borough, Alaska Resolution No. 91-20 Page 5 of 5 Introduced by: Assemblymember Bonney Requested by: Assemblymember Bonney Drafted by: Borough Clerk and Borough Attorney Introduced: 06/18/98 Adopted: 06/18/98 KODIAK ISLAND BOROUGH RESOLUTION NO. 98-22 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ESTABLISHING POLICY FOR A REASONABLE COURSE OF ACTION WITH RESPECT TO ANY REQUEST FOR INFORMATION BROUGHT UNDER THE ALASKA PUBLIC RECORDS ACT WHEREAS, it is deemed sound public policy for citizens to be able to monitor government activities with meetings of governing bodies open to the public and government records open to public inspection; and WHEREAS, in 1990 the Alaska Legislature modified the Alaska Public Records Act to make it applicable to municipalities and recognize that public access to government information is a fundamental right that operates to check and balance the actions of elected and appointed officials and to maintain citizen control of government; and WHEREAS, to protect the public's right to know, public records must be available at nominal cost consistent with the Kodiak Island Borough fee schedule set by resolution of the assembly; and WHEREAS, it is advisable to describe those records which are not to be disclosed and those records consist of 1) communications between any borough department, assembly, board, commission, or committee and an attorney concerning pending or actual litigation; 2) files maintained by the borough attorney's office concerning pending or actual litigation, or any document prepared in the provision of legal services or legal advice to the borough or the assembly, or any of its departments, boards, commissions, subdivisions, officers, or employees by the borough attorney's office; 3) personnel, payroll, medical files or other files which reveal the personal, financial or medical status of any specific individual other than gross pay and average cost of benefits allocated in the budget except upon the specific written authorization of the individual concerned; 4) the name, address, telephone number or other identifying information about complainants in actions to enforce borough ordinances; 5) records of engineering or other technical data which if released would provide a competitive advantage to any person or corporation engaged in similar or related activities; 6) proprietary information which a manufacturer, consultant, or provider reasonably requires to be kept privileged or confidential to protect the property interests of persons providing the information or data; 7) information used for municipal governments to engage in collective bargaining considered to be privileged or confidential for purposes of successful collective bargaining; 8) information obtained by and in the custody of insurance carriers insuring the borough, and their attorneys and agents, regarding possible and pending claims against the borough, and records Kodiak Island Borough, Alaska Resolution No. 98-22 Page 1 of 2 maintained in the borough regarding such claims; 9) health, mental health, medical or juvenile information obtained or prepared by the borough with respect to any person for whom treatment or services were provided; 10) personal information given to the borough with the legitimate expectation of privacy in conjunction with borough services; 1 1) records disclosing individual reserve levels on claims against the borough, or records or documents pertaining to any claims against the borough or school district, including, but not limited to, risk management files under any insurance or self-insurance program, and 12) any records, nondisclosure of which is authorized by a valid Alaska or federal statute or regulation, or by a privilege, exemption or principal recognized by the courts, or by a protective order authorized by law; and WHEREAS, a period of ten days is reasonable for the borough to respond to a request for information unless unusual circumstances exist; and WHEREAS, any person in the Kodiak Island Borough should be able to make a request for information; NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that public policy for obtaining records of the Kodiak Island Borough is implemented, to be in compliance with the Alaska Public Records Act, by responding to requests by any person for information that is open to public inspection within ten days, unless unusual circumstances exist that may take an additional ten days. NOW, THEREFORE, BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the fees that can be charged for responding to a request be limited to the actual cost of search, copying, and review as established by resolution of the assembly. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS EIGHTEENTH DAY OF JUNE, 1998 ATTEST: rl7vn.a���yl�� Donna a F. Smith, CMC/AAE, Borough Clerk Kodiak Island Borough, Alaska KODIAK ISLAND BOROUGH Stevens, Presiding Officer Resolution No. 98-22 Page 2 of 2 Code Enforcement Complaints FY14-FY17 Type of Complaint Year Trespass Junk Building Land Use/Other Total FY 2014 1 1 6 6 14 FY 2015 1 7 4 14 26 FY 2016 2 14 8 22 46 FY 2017 2 12 1 14 29 Total 6 34 1 19 56 115 . Average of 29 complaints annually. • 2 complaints in FY 2015, 2 in FFY 2016, and 4 in FY 2017 are related to chickens. • 4 complaints in FY 2014, 3 in FY 2015, and 1 in FY 2016 are related to illegal ADUs. . Approximately 40 (35%) enforcement cases have reached compliance. KODIAK ISLAND BOROUGH WORK SESSION Work Session of: o -V o Please PRINT your name Please PRINT your name nom- (Ar- IF�YJ��DA��� i4Uls L U0V1V1 C%