Alaska: 4:30 PM Deadline for Comments on 5 Proposed Rules: Inventory Tracking, Inspections of Business Operations, Permit Card Renewal Fee, Sample Jar, and Business Operations

The comment period for five (5) rules proposed by the Alaska Marijuana Control Board (MCB) will close today at 4:30 pm. The rule changes will provide the MCB with the authority and information that is needed to adequately oversee the marijuana industry. Marijuana establishments will be required to ensure that employees follow approved operating procedures and processes. A summary of the rules proposals, the impact on marijuana establishments and recommended changes are provided below.

Marijuana Establishment Inspections:
- Entities Impacted: All Marijuana Establishments
- Summary of Change: The rule proposal amends current rule 3 AAC 306.725(a) to expand the MCB’s ability to inspect not only storage areas, but also waste disposal and other elements of business operations.
- Impact of Change: The rule amendment will provide the MCB with authority to perform complete inspections of a marijuana establishment.
- Compliance Enhancements: Marijuana establishments should review waste disposal areas and processes for adherence to the operating plan.
Acting in Accordance with Operating Plan Approved by MCB:
- Entities Impacted: All Marijuana Establishments
- Summary of Change: The rule proposal amends 3 AAC 306.703 to provide that marijuana establishments must follow the operating plan that was approved by the MCB. Marijuana establishments must also obtain approval the MCB’s prior to changing the operating plan.
- Impact of Change: The proposal increases enforcement risk for all marijuana establishments. The amendments fail to provide a materiality standard against which adherence to the operating plan can be measured. Without such a standard, the MCB could determine that any failure to follow the operating plan, regardless of the materiality, is a rule violation.
- Compliance Enhancements: Marijuana establishments should also implement a supervisory checklist process and a periodic testing program to demonstrate adherence to the operating plan. Employees should trained on the new requirements.
Marijuana Handler Permit Card Renewal Fee:
- Entities Impacted: All Marijuana Establishments
- Summary of Change: The rule proposal clarifies that a $50 fee will be charged for new and renewed marijuana handler permit cards.
- Impact of Change: The change increases operating costs by implementing renewal fees. It is unclear whether a fee is charged for the replacement of a lost marijuana handler permit card.
Inventory Tracking and Harvest Grading:
- Entities Impacted: Cultivators
- Summary of Change: The rule proposal requires cultivators to include assign identification numbers to seeds for tracking in the inventory tracking system under 3 AAC 306.435(a). The rule proposal also cleans up the definition of harvest batch, and increases the harvest size to 10 lbs.
- Impact of Change: Cultivators will need to input seeds into the tracking and trading system, and ensure that all plants and seeds are transported using a shipping manifest and entered into the inventory tracking system. Cultivators should ensure that the rule language provides enough clarity around the initial entry of a seed inventory into the tracking system. The MCB should also clarify how cultivators should record the sale and transport of plants that are shorter than 8 inches under 3 AAC 306.435(b) as cultivators are not required to assign an identification number to these plants under 3 AAC 306.435(a).
- Compliance Enhancements: Marijuana cultivators should review operating plans and procedures to incorporate the additional requirements. In addition, marijuana cultivators should train employees on the new requirements and procedures.
Sample in a Jar:
- Entities Impacted: Retail Marijuana Stores
- Summary of Change: The proposal allows retail marijuana stores to provide a sample jar to customers to smell a marijuana product prior to purchase.
- Impact of Change: The rule amendment under 3 AAC 306.325(d) provides that “the jar must remain in the monitored custody of the retail marijuana store during consumer inspection.” The MCB should provide clarity around the requirements for monitoring custody and address situations in which a video may be obstructed by the sales person or consumer.
- Compliance Enhancements: Marijuana retailers should review their operating plan and procedures to incorporate the additional requirements. In addition, marijuana retailers should review the video surveillance angles and coverage.