7 Alaska Cannabis Laws You Must Know

In 2014, Alaska became the third state to legalize recreational cannabis with the passage of Measure 2. Medical use in Alaska was legalized in 1998 when voters approved the Alaska Medical Marijuana Initiative (Measure 8).

In this post, we’re covering the top 7 Alaska cannabis laws you need to know to stay compliant in Alaska. You can read the full list of regulations here.

Law #1: Licensing

Law: 3 AAC 306.020. Application for new license (a) An applicant for a new marijuana establishment license must file an application as provided in 3 AAC 306.025, on a form the board prescribes, with the information and documents described in this section, along with the application fee and the annual license fee set out in 3 AAC 306.100, and the fingerprint cards and fees required by 3 AAC 306.055(a). The application must be initiated electronically; the completed application and fees may be filed electronically, or mailed or delivered to the director at the office of the board. (b) An application for a new marijuana establishment license must include (1) the name of the applicant and any business name the applicant will use for the proposed marijuana establishment, along with the applicant's state business license number issued under AS 43.70; (2) the name, mailing address, telephone number, and social security number of each proposed licensee and each affiliate of each proposed licensee; unless the context requires otherwise, "licensee" means each individual named in an application that complies with this section; an individual to be identified as a licensee under this section includes (A) if the applicant is an individual or a sole proprietor, the individual or sole proprietor; (B) if the applicant is a partnership, including a limited partnership, each partner holding any interest in the partnership; (C) if the applicant is a limited liability company, each member holding any ownership interest; (D) if the applicant is a corporation, each owner of any of the corporation's 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 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 license; 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 any time; (7) the type of license the applicant is requesting; (8) the address of the premises to include global positioning system (GPS) coordinates where the applicant intends to operate a marijuana establishment, and a detailed diagram of the proposed licensed premises; the diagram must show all entrances and boundaries of the premises, restricted access areas, and storage areas; (9) the title, lease, or other documentation showing the applicant's right to possession of the proposed licensed premises; (10) an affidavit showing where and when the applicant posted notice of the application, and proof of advertising as required in 3 AAC 306.025(b); and (11) additional information that the board requires as follows: (A) for a retail marijuana store, the information required under 3 AAC 306.315; (B) for a marijuana cultivation facility, the information required under 3 AAC 306.420; (C) for a marijuana product manufacturing facility, the information required under 3 AAC 306.520; (D) for a marijuana testing facility, the information required under 3 AAC 306.615. (c) A marijuana establishment license application must include the applicant's operating plan, in a format the board prescribes, describing to the board's satisfaction the proposed marijuana establishment's plans for (1) security; (2) inventory tracking of all marijuana and marijuana products on the premises; (3) employee qualification and training; (4) waste disposal; (5) transportation and delivery of marijuana and marijuana products; and (6) signage and advertising. (d) An application for a marijuana establishment license must be signed by (1) the applicant, if the applicant is an individual; (2) an authorized general partner if the applicant is a partnership, including a limited partnership; (3) a member who owns at least 10 percent of the limited liability company if the applicant is a limited liability company; (4) the authorized officers of the corporation if the applicant is a corporation; or (5) a designated official if the applicant is a local government. (e) Each person signing an application for a marijuana establishment license must declare under penalty of unsworn falsification that (1) the application is true, correct, and complete; (2) the applicant has read and is familiar with AS 17.38 and this chapter; and (3) the applicant will provide all information the board requires in support of the application.

Explained:

Applications must include:

• The applicant's name, business name, and state business license number.
• The name, mailing address, telephone number, a statement of financial interest on a form the board prescribes, and social security number of each proposed licensee.
• The applicant’s mail address.
• The type of license being requested.
• The address of the premises, with GPS coordinates that show where the applicant will operate the marijuana establishment.
• Title, lease, and other documentation showing ownership of the premises.
• An affidavit showing when and where the applicant posted notice of the application to the public, along with proof of advertising.
• A diagram of the premises, as well as an operating plan for the marijuana establishment showing plans for:
  • Security
  • Inventory tracking
  • Employee qualification and training
  • Waste disposal
  • Transportation and delivery of marijuana products
  • Signage and advertising
  • Applications must be signed by the applicant and any partners.

Start writing your dispensary business plan now!

Law #2: Retail dispensary privileges

Law: 3 AAC 306.305. Retail marijuana store privileges (a) A licensed retail marijuana store is authorized to (1) sell marijuana purchased from a licensed marijuana cultivation facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.470, and 3 AAC 306.475 in an amount not exceeding the limit set out in 3 AAC 306.355, to an individual on the licensed premises or as permitted under 3 AAC 306.995 for consumption off the licensed premises; (2) sell a marijuana product purchased from a licensed marijuana product manufacturing facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.565, and 3 AAC 306.570, in a quantity not exceeding the limit set out in 3 AAC 306.355, to an individual on the licensed premises or as permitted under 3 AAC 306.995 for consumption off the licensed premises; (3) store marijuana and marijuana products on the licensed premises in a manner consistent with 3 AAC 306.710 - 3 AAC 306.720; (4) with prior approval of the board, permit consumption of marijuana or a marijuana product purchased on the licensed premises, in a designated area on the licensed premises. (b) This section does not prohibit a licensed retail marijuana store from refusing to sell marijuana or a marijuana product to a consumer. (c) A licensee of a retail marijuana store may also apply for a marijuana cultivation facility license, marijuana product manufacturing facility license, or both. A licensee of a retail marijuana store who obtains a marijuana cultivation facility license, marijuana product manufacturing facility license, or both shall (1) conduct any marijuana cultivation operation in a room separate from any other operation and the retail marijuana store, and shall conduct any marijuana product manufacturing operation in a room separate from any other operation and the retail marijuana store; if the rooms are connected and co-located, a secure door must separate the rooms from each other; a secure door must separate any room connected to and co-located with the retail marijuana store, and (2) comply with each provision of this chapter that applies to any other type of marijuana establishment license that the licensee of a retail marijuana store obtains. 3 AAC 306.310. Acts prohibited at retail marijuana store (a) A licensed retail marijuana store may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver, marijuana or a marijuana product (1) to a person under 21 years of age; (2) to a person that is under the influence of an 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 306.565 and 3 AAC 306.570; (4) in a quantity exceeding the limit set out in 3 AAC 306.355; (5) unless permitted under 3 AAC 306.995, over the Internet; a licensed retail marijuana store may only sell marijuana or a marijuana product to a consumer who is physically present on the licensed premises or who is physically present at the location designated for exterior window or curbside pickup as described and permitted under 3 AAC 306.995; (6) after the expiration date shown on the label of the marijuana or marijuana product. (b) A licensed retail marijuana store may not (1) conduct business on or allow a consumer to access the retail marijuana store's licensed premises between the hours of 5:00 a.m. and 8:00 a.m. each day; (2) allow a person to consume marijuana or a marijuana product on the retail marijuana store's licensed premises, except as provided in 3 AAC 306.305(a)(4); (3) offer or deliver to a consumer, as a marketing promotion or for any other reason, (A) free marijuana or marijuana product, including a sample; or (B) alcoholic beverages, free or for compensation; or (4) allow intoxicated or drunken persons to enter or to remain on the licensed premises. 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 to ensure all marijuana and marijuana product in the retail marijuana store's possession is identified and tracked from the time the retail marijuana store receives any batch of marijuana or lot of marijuana product through the sale, transfer to another licensed marijuana establishment, or disposal of the batch of marijuana or lot of marijuana product. (b) When marijuana from a marijuana cultivation facility or marijuana product from a marijuana product manufacturing facility is delivered or transported to the licensed premises of a retail marijuana store, the retail marijuana store shall immediately enter identification information for that batch of marijuana or lot of marijuana product into the retail marijuana store's marijuana inventory tracking system. 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 establishment that originated the delivery. (c) A retail marijuana store shall reconcile each transaction from the retail marijuana store'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 store received and the quantity it sold, transferred, or disposed of.

Explained:

• Retail marijuana stores are authorized to:
  • Sell marijuana purchased from licensed marijuana cultivation facilities, packaged and labeled as required.
  • Store marijauana products on the licensed premises.
  • Permit consumption of marijuana products purchased on the licensed premises in a designated area of the retail establishment (This requires the approval of the board).
  • Retailers can refuse to sell marijuana to a consumer.
  • Retail marijuana store licensee’s can also apply for a cultivation facility license, a marijuana product manufacturing license, or both.
    • In this case, cultivation and product manufacturing must operate in their own separate rooms away from the retail space.
• Retail marijuana stores can’t sell marijuana products to consumers under 21 years of age or those under the influence of alcohol or controlled substances.
• Stores may only sell product to a consumer who is physically present on the licensed premises or who is physically present.
• Consumers may not enter the retail space between 5am and 8am.
• Stores cannot sell product after the expiration date shown on the label of the marijuana product.
• Delivery is not permitted.
• Marijuana products cannot be given away for free.

Law #3: Packaging and labeling

Law: 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 packaged 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 premises; the packaging must 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 section, a retail marijuana store 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 estimated amount of total THC in the labeled product; and (3) contains each of the following statements: (A) "Marijuana has intoxicating effects and may be habit forming and addictive."; (B) "Marijuana impairs concentration, coordination, and judgment. Do not operate a vehicle or machinery under its influence."; (C) "There are 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) "Marijuana should not be used by women who are pregnant or breast feeding."

Explained:

• Packaging must be opaque, resealable, and child-resistant.
• A label must be attached that includes:
  • The name or logo and marijuana establishment license number.
  • The estimated amount of THC in the product.
  • The following statements:
    • "Marijuana has intoxicating effects and may be habit-forming and addictive."
    • "Marijuana impairs concentration, coordination, and judgment. Do not operate a vehicle or machinery under its influence."
    • "There are health risks associated with consumption of marijuana."
    • "For use only by adults twenty-one and older. Keep out of the reach of children."
    • "Marijuana should not be used by women who are pregnant or breastfeeding."

Law #4: Purchase limits

Law: 3 AAC 306.355. Limit on quantity sold (a) A retail marijuana store may not sell to any one person per day (1) more than one ounce of usable marijuana; (2) more than seven grams of marijuana concentrate for inhalation; or (3) more than 5,600 milligrams of THC in combined sales of marijuana and marijuana products. (b) The limits set out in (a) of this section include marijuana or marijuana product sold for onsite consumption under 3 AAC 306.370.

Explained:

Marijuana stores can sell only 1 ounce, 7 grams of marijuana concentrate for inhalation, or 5,600 milligrams of THC in combined sales.

Law #5: Taxes

Per Alaska's State Page: "Ballot Measure 2, the act to tax and regulate the production, sale, and use of marijuana, was passed on Nov. 4, 2014. Pursuant to the ballot measure, Alaska will levy a tax on the marijuana sold in Alaska. The Tax Division will collect the marijuana tax from licensed marijuana cultivation facilities.

The marijuana tax is imposed when marijuana is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. The intial tax was $50 per ounce of marijuana.

Effective Jan. 1, 2019, sales and transfers of marijuana are subject to new tax rates. Mature bud/flower are taxed at $50 per ounce; immature or abnormal bud is taxed at $25 per ounce; trim is taxed at $15 per ounce; and clones are taxed at a flat rate of $1 per clone."

Explained:

• Taxes are collected from cultivators.
• Mature bud/flower are taxed at $50 per ounce, immature bud is taxed at $25 per ounce, trim is taxed at $15 per ounce, and clones are taxed at a flat rate of $1 per clone.
• While Alaska doesn’t have statewide excise taxes, certain municipalities have specific excise taxes. Anchorage imposes a 5% sales tax on the retail sales of marijuana and marijuana products.

Law #6: Required consumer notices for retailers

Law: 3 AAC 306.365. Required consumer notices for retail marijuana stores (a) A retail marijuana store shall post, in a conspicuous location visible to customers, the following notices: (1) “Consumption of marijuana in public is prohibited by law.”; (2) “Transportation or carriage of marijuana or marijuana products on Alaska waterways, including cruise ships, or by air carrier is prohibited by federal law.”; (3) “Transportation or shipment of marijuana or marijuana products outside the State of Alaska is prohibited by federal law.”; (4) “Providing marijuana to persons under 21 years of age is prohibited by law.”. (b) Notification signs required under (a) of this section must be at least 11 inches by 14 inches in size. Lettering must be at least one-half inch in height and in colors that contrast with the background. (Eff. 7/22/2017, Register 223)

Explained:

• Retail marijuana stores must post the following notices in conspicuous places visible to their customers:
  • “Consumption of marijuana in public is prohibited by law.”
  • “Transportation or carriage of marijuana or marijuana products on Alaska waterways, including cruise ships, or by air carrier is prohibited by federal law.”
  • “Transportation or shipment of marijuana or marijuana products outside the State of Alaska is prohibited by federal law.”
  • “Providing marijuana to persons under 21 years of age is prohibited by law.”
• Required notices must be printed in a font at least ½ inch tall and in a color that contrasts with the background. Signs must be at least 11 by 14 inches in size

Law #7: Onsite consumption endorsement for retail stores

Law: 3 AAC 306.370. Onsite consumption endorsement for retail marijuana stores (a) Unless prohibited by local or state law, the board may approve an onsite consumption endorsement for a licensed retail marijuana store for consumption, on the marijuana retail store premises, (1) of edible marijuana product only, in compliance with this section, in an indoor or outdoor area, regardless of whether the licensed retail marijuana store is freestanding; (2) by any method, in compliance with this section, in an indoor or outdoor area of a freestanding licensed retail marijuana store. (b) A licensed retail marijuana store with an approved onsite consumption endorsement is authorized to sell, for consumption at the time of purchase and only in an area designated as the marijuana consumption area, (1) marijuana bud or flower, in quantities not to exceed one gram to any one person per day; (2) edible marijuana products in quantities not to exceed 25 milligrams of THC to any one person per day; and (3) a vaping device that contains not more than 0.3 grams of marijuana concentrate to any one person per day; a person may not consume marijuana concentrate onsite by a means other than vaping as described in this paragraph. (c) A licensed retail marijuana store with an approved onsite consumption endorsement may (1) sell food or beverages not containing marijuana or alcohol; and (2) allow a person to remove from the licensed premises marijuana or marijuana products that have been purchased on the licensed premises for consumption under this section, if they are packaged in accordance with 3 AAC 306.345. (d) A licensed retail marijuana store with an approved onsite consumption endorsement may not (1) allow any licensee, employee, or agent of a licensee to consume marijuana or marijuana products, including marijuana concentrate, during the course of a work shift; (2) allow a person to consume tobacco or tobacco products in the marijuana consumption area; (3) allow a person to bring into or consume in the marijuana consumption area any marijuana or marijuana product that were not purchased at the licensed retail marijuana store; (4) sell, offer to sell, or deliver marijuana or marijuana products at a price less than the price regularly charged for the marijuana or marijuana products during the same calendar week; (5) sell, offer to sell, or deliver an unlimited amount of marijuana or marijuana products during a set period of time for a fixed price; (6) sell, offer to sell, or deliver marijuana or marijuana products on any one day at prices less than those charged the general public on that day; (7) encourage or permit an organized game or contest on the licensed premises that involves consuming marijuana or marijuana products or the awarding of marijuana or marijuana products as prizes; or (8) advertise or promote in any way, either on or off the licensed premises, a practice prohibited under this section. (e) A marijuana consumption area must have the following characteristics: (1) the marijuana consumption area must be isolated from the other areas of the retail marijuana store, must be separated by walls and secure door, and must have access only from the retail marijuana store; (2) the licensed marijuana retail store must provide a smoke-free area for employees to monitor the marijuana consumption area; (3) a marijuana consumption area that is indoors and in which smoking is permitted must have a ventilation system (A) that is separate from the ventilation system of the other areas of the licensed retail marijuana store or other licensed marijuana establishments in a freestanding building; and (B) that directs air from the marijuana consumption area to the outside of the building through a filtration system sufficient to remove visible smoke, consistent with all applicable building codes and ordinances, and adequate to eliminate odor at the property line; (4) if outdoors, the marijuana consumption area must be found by the board to be compatible with uses in the surrounding area through evaluation of (A) neighboring uses; (B) the location of air intake vents on neighboring buildings, if consumption by smoking is permitted; (C) a sight-obscuring wall or fence around the outdoor marijuana consumption area; (D) objections of property owners, residents, and occupants within 250 linear feet or the notification distance required by the local government, whichever is greater; and (E) any other information the board finds relevant. (f) An applicant for an onsite consumption endorsement must file an application on a form the board prescribes, including the endorsement fee set out in 3 AAC 306.100, and (1) the applicant’s operating plan, in a format the board prescribes, describing the retail marijuana store’s plan for (A) security, in addition to what is required for a retail marijuana store, including (i) doors and locks; (ii) windows; (iii) measures to prevent diversion; and (iv) measures to prohibit access to persons under 21 years of age; (B) ventilation, if consumption by smoking is to be permitted in an indoor area; ventilation plans must be (i) signed and approved by a licensed mechanical engineer; (ii) sufficient to remove visible smoke; and (iii) consistent with all applicable building codes and ordinances; (C) monitoring overconsumption; (D) unconsumed marijuana, by disposal or by packaing in accordance with 3 AAC 306.345; and (E) preventing introduction into the marijuana consumption are of marijuana or marijuana products not sold by the retail marijuana store, and marijuana or marijuana products not sold specifically for onsite consumption; (2) the applicant’s detailed diagram of the marijuana consumption area which must show the location of (A) the licensed premises of the retail marijuana store; (B) the serving area or areas; (C) ventilation exhaust points, if applicable; (D) the employee monitoring area; (E) doors, windows, or other exits; and (F) access control points; (3) the title, lease, or other documentation showing the applicant’s sole right of possession of the proposed marijuana consumption area, if the area is not already part of the approved licensed premises for the retail marijuana store; and (4) for an outdoor marijuana consumption area, (A) an affidavit that notice of an outdoor marijuana consumption area has been mailed to property owners, residents, and occupants of properties within 250 linear feet of the boundaries of the property on which the onsite consumption endorsement is proposed, or the notification distance required by the local government, whichever is greater. (g) The retail marijuana store holding an onsite consumption endorsement under this chapter shall (1) destroy all unconsumed marijuana left abandoned or unclaimed in the marijuana consumption area in accordance with the operating plan and 3 AAC 306.740; (2) monitor patrons in the marijuana consumption area at all times, specifically for overconsumption; (3) display all warning signs required under 3 AAC 306.360 and 3 AAC 306.365 within the marijuana consumption area, visible to all consumers; (4) provide, at no cost to patrons, written materials containing marijuana dosage and safety information for each type of marijuana or marijuana product sold for consumption in the marijuana consumption area; (5) package and label all marijuana or marijuana products sold for consumption on the premises as required in 3 AAC 306.345; and (6) comply with any conditions set by the local government or placed on the endorsement by the board. (h) The holder of an onsite consumption endorsement must apply for renewal annually at the time of renewal of the underlying retail marijuana store license.

Explained:

• The board can approve an onsite consumption endorsement for licensed retail marijuana store premises.
• For onsite consumption, edible products must be purchased for immediate consumption in a designated area.
• Below are the purchase limits for onsite consumption:
  • 1 marijuana bud or flower (no more than 1 gram per person per day).
  • Edible marijuana products in quantities within 25 milligrams of THC to any one person per day.
  • Vaping device containing no more than 0.3 grams of marijuana per person per day (marijuana concentrate can only be consumed onsite by vaping).
• Licensed retailers with approved onsite consumption endorsements can sell food and beverages, but cannot allow the consumption of tobacco products in the designated consumption area.
• Employees can’t consume marijuana products during a work shift.
• Marijuana not purchased at the retail location can’t be brought into the designated consumption area.
• Contests and organized games that involve consumption of marijuana are not allowed.
• Consumption areas must be isolated from other areas in the retail store, separated by walls and a secure door must have a smoke-free area for employees to monitor the marijuana consumption area and must have an indoor smoking area with a filtered ventilation system.
• Outdoor consumption areas must be concealed with a wall or fence.
• Security measures required for onsite consumption include doors and locks, windows, measures to prevent diversion, measures to prohibit access for minors, ventilation plans approved by a mechanical engineer, monitoring overconsumption.
• Marijuana abandoned in the consumption area must be destroyed.
• Written materials listing marijuana dosage and safety information must be provided to patrons at no cost.

Disclaimer: The material contained on this website and any attached or referenced pages has been compiled by Flowhub for informational purposes only. It is not intended to be and is not considered to be legal advice. This post is current as of 9/21/2021. Cannabis regulations are rapidly changing, and legal advice of any nature should be sought from legal counsel.