Alaska Cannabis Laws

Alaska's cannabis laws, overseen by the Alcohol and Marijuana Control Board (AMCO), provide a comprehensive framework for the legal operation of dispensaries. Key regulations include strict licensing requirements, precise packaging and labeling standards, and defined purchase limits of up to one ounce of marijuana or 5,600 milligrams of THC per day.

Every Dispensary Must Know

Alaska Marijuana Laws at a Glance

Medical cannabis use was legalized in 1998 via the Alaska Medical Marijuana Initiative (Measure 8).
Recreational cannabis use was legalized via the passage of Measure 2 in 2014.
The Alcohol and Marijuana Control Office (AMCO) is the regulatory agency responsible for overseeing the Alaska cannabis industry.
Alaska’s track-and-trace system is Metrc.
Cannabis delivery is currently not permitted in Alaska.

Marijuana stores can sell only 1 ounce, 7 grams of marijuana concentrate for inhalation, or 5,600 milligrams of THC in combined sales.
Onsite consumption is legal in Alaska, pending approval and all regulations are met.

Next, we’ll delve into the specifics of each law to help you stay compliant with Alaska’s cannabis regulations.

Licensing

Law: 3 AAC 306.020. Application for New License

Requirements:

Application Submission:
- Applicants must submit their applications electronically, including the application fee and the annual license fee as stipulated in 3 AAC 306.100.
- Fingerprint cards and fees as required by 3 AAC 306.055(a) must also be included.
Applicant Information:
- The applicant’s name, business name, and state business license number.
- The names, mailing addresses, telephone numbers, social security numbers, and financial interest statements of each proposed licensee and affiliate.
Premises Details:
- The premises’ address, including GPS coordinates.
- A detailed diagram of the proposed licensed premises, showing entrances, boundaries, restricted access areas, and storage areas.
- Title, lease, or other documentation showing ownership or right to possession of the premises.
Public Notice:
- An affidavit showing when and where the applicant posted notice of the application, with proof of advertising as required by 3 AAC 306.025(b).
Operating Plan:
- Security measures.
- Inventory tracking of all marijuana and marijuana products.
- Employee qualification and training.
- Waste disposal.
- Transportation and delivery of marijuana and marijuana products.
- Signage and advertising.
Signatures and Declarations:
- The application must be signed by the applicant and any partners, declaring under penalty of unsworn falsification that the application is true, correct, and complete.
- Applicants must acknowledge familiarity with AS 17.38 and the relevant chapter, and agree to provide any additional information the board requires.

Explanation: To obtain a marijuana establishment license in Alaska, applicants must provide comprehensive information and documentation, including details about their business, the premises, and their operational plans. Public notice of the application must be provided, and security measures, inventory tracking, and employee training plans must be included. The application process ensures that all marijuana establishments operate within the regulatory framework set by the Alaska Alcohol and Marijuana Control Office (AMCO).

Retail Dispensary Privileges

Law: 3 AAC 306.305. Retail Marijuana Store Privileges

Privileges:

Authorized Sales:
- Marijuana: Retail marijuana stores can sell marijuana purchased from licensed marijuana cultivation facilities, packaged and labeled according to regulations.
- Marijuana Products: They can also sell marijuana products purchased from licensed marijuana product manufacturing facilities, packaged and labeled as required.
- Storage: Marijuana and marijuana products can be stored on the licensed premises in accordance with state regulations.
- Onsite Consumption: With prior board approval, retail stores can allow onsite consumption of marijuana or marijuana products purchased on the premises in a designated area.
Operational Flexibility:
- Refusal Rights: Retail stores can refuse to sell marijuana or marijuana products to any consumer.
- Additional Licenses: Retail store licensees can apply for a marijuana cultivation facility license, a marijuana product manufacturing facility license, or both. These operations must be conducted in separate rooms from the retail area, with secure doors separating each.
Prohibited Actions:
- Underage and Intoxicated Sales: Selling or distributing marijuana to persons under 21 years of age or to individuals under the influence of alcohol or controlled substances is prohibited.
- Packaging and Labeling Compliance: All marijuana and marijuana products must be properly packaged and labeled.
- Internet Sales: Retail stores cannot sell marijuana or marijuana products over the internet; sales must occur in person at the licensed premises.
- Free Samples and Promotions: Giving away free marijuana or marijuana products, including as part of a marketing promotion, is not allowed.
- Operating Hours: Retail marijuana stores cannot conduct business or allow customer access between 5:00 AM and 8:00 AM.
Inventory Tracking:
- Retail stores must use a marijuana inventory tracking system to identify and track all marijuana and marijuana products from the time they are received until they are sold, transferred, or disposed of.
- Reconciliation of inventory must be performed at the close of business each day, ensuring accuracy between the point-of-sale system and current inventory.

Explanation: Retail marijuana stores in Alaska have specific privileges and responsibilities under state law. They are authorized to sell and store marijuana and marijuana products, but must adhere to strict packaging, labeling, and inventory tracking requirements.

Onsite consumption of marijuana is allowed in designated areas with prior approval, and stores have the flexibility to refuse sales. However, internet sales, free samples, and sales to underage or intoxicated individuals are prohibited. Compliance with these regulations ensures the safe and legal operation of retail marijuana stores in Alaska.

Packaging and Labeling

Law: 3 AAC 306.345. Packaging and Labeling

Requirements:

Packaging:
- Child-Resistant: All marijuana and marijuana products sold must be in opaque, resealable, child-resistant packaging. This packaging must be designed to be significantly difficult for children under five years of age to open, but not difficult for adults to use properly.
- Resealable and Opaque: The packaging should be resealable and opaque to ensure product safety and integrity.
Labeling:
- Retail Store Identification: Each package must have a label identifying the retail marijuana store selling the product, either by name or distinctive logo, and include the marijuana establishment license number.
- THC Content: Labels must state the estimated amount of total THC in the product.
- Health Warnings: Each package must contain 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.”

Explanation: To ensure the safety and proper use of marijuana products, Alaska requires that all products be packaged in child-resistant, resealable, and opaque containers. This prevents accidental ingestion by children and maintains product integrity.

Furthermore, labeling must clearly identify the retail store, state the THC content, and include several health warnings. These warnings are intended to inform consumers of the potential risks associated with marijuana use, ensuring they are aware of the effects and legal restrictions.

Purchase Limits

Law: 3 AAC 306.355. Limit on Quantity Sold

Requirements:

Daily Purchase Limits:
- Usable Marijuana: A retail marijuana store may not sell more than one ounce of usable marijuana to any one person per day.
- Marijuana Concentrate for Inhalation: The limit is seven grams per day.
- THC in Combined Sales: The total THC limit for combined sales of marijuana and marijuana products is 5,600 milligrams per day.
Onsite Consumption:
- These purchase limits also apply to marijuana or marijuana products sold for onsite consumption.

Explanation: Alaska imposes strict daily limits on the amount of marijuana and marijuana products that can be

sold to a single individual to ensure responsible consumption and reduce the risk of overuse. These limits are designed to control the quantity of psychoactive substances that consumers can purchase, promoting safe and legal use within the state.

Taxes

Law: Alaska Cannabis Tax Regulations

Requirements:

Tax Collection:
- Taxes are collected from licensed marijuana cultivation facilities when marijuana is sold or transferred to a retail marijuana store or marijuana product manufacturing facility.
Tax Rates:
- Mature Bud/Flower: $50 per ounce
- Immature or Abnormal Bud: $25 per ounce
- Trim: $15 per ounce
- Clones: $1 per clone
Municipal Taxes:
- While Alaska does not impose statewide excise taxes, certain municipalities have their specific excise taxes.
- For instance, Anchorage imposes a 5% sales tax on the retail sales of marijuana and marijuana products.

Explanation: Alaska’s cannabis tax structure ensures that revenue is collected at the cultivation stage, simplifying

the taxation process for retail stores and manufacturers. The differentiated tax rates for various parts of the marijuana plant reflect their market value and usage. Additionally, local municipalities have the authority to impose their own sales taxes, adding another layer of revenue generation and regulation at the local level.

Required Consumer Notices for Retailers

Law: 3 AAC 306.365 – Required Consumer Notices for Retail Marijuana Stores

Requirements:

Mandatory Notices:
- Retail marijuana stores must post the following notices in a conspicuous location visible to customers:
  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.”
Sign Specifications:
- Notification signs must be at least 11 inches by 14 inches in size.
- Lettering must be at least one-half inch in height.
- The text must be in colors that contrast with the background.

Explanation: These required consumer notices are essential for ensuring that customers are aware of the legal restrictions surrounding the consumption, transportation, and distribution of marijuana products. The specified size and format of the signs help ensure that the information is clearly visible and easily readable, thereby promoting compliance and awareness among consumers.

Onsite Consumption

Law: 3 AAC 306.370 – Onsite Consumption Endorsement for Retail Marijuana Stores

Requirements:

General Authorization:
- The Alcohol and Marijuana Control Office (AMCO) can approve an onsite consumption endorsement for licensed retail marijuana stores. This endorsement allows consumers to consume marijuana on the store premises in a designated area, provided it meets specific requirements.
Consumption Limits:
- Edible products: Up to 25 milligrams of THC per person per day.
- Marijuana bud/flower: Up to one gram per person per day.
- Vaping: Up to 0.3 grams of marijuana concentrate per person per day.
Designated Areas:
- Consumption areas must be isolated from other areas of the retail store, separated by walls, and have secure access.
- Indoor consumption areas for smoking must have a ventilation system that is separate from other areas and directs air outside through a filtration system.
Additional Provisions:
- Licensed retailers with onsite consumption endorsements can sell non-marijuana food and beverages.
- Retailers cannot allow the consumption of tobacco products in the designated consumption area.
- Retailers must provide written materials containing dosage and safety information for each type of marijuana or marijuana product sold for consumption.
- Unconsumed marijuana left in the consumption area must be destroyed according to regulations.
Prohibited Activities:
- Retailers cannot allow employees to consume marijuana products during their work shift.
- Retailers cannot offer or deliver marijuana products at a price lower than the regular price, nor can they conduct contests or games involving the consumption of marijuana.

Explanation: These regulations ensure that onsite consumption areas are secure and that consumers have access to safe and controlled environments for consuming marijuana products. The limitations on consumption amounts, combined with strict security and ventilation requirements, help maintain public safety and compliance with state laws.