Dunleavy establishes Recreational Marijuana Task Force

Last week, Gov. Mike Dunleavy established the Governor’s Advisory Task Force on Recreational Marijuana (Task Force).

The Task Force will be comprised of 13 voting members, with backgrounds ranging from three State of Alaska officials identified as the Commissioner of the Department of Revenue, the Commissioner of the Department of Commerce, Community and Economic Development, and the Director of the Department of Natural Resources, Division of Agriculture. The Commissioners have the option to submit designees in their place.

There will also be 10 members, who are not state officials, including a member from the Alaska Marijuana Control Board; 1member who represents a city, borough, or municipality that allows recreational marijuana businesses within its jurisdictional boundaries; several members who are currently licensed within Alaska to cultivate, manufacture product, sell and operate within the marijuana industry. There will also be a member of the general public serving on the Task Force.

The Task Force will review the current marijuana tax and fee structures, and regulations applicable to marijuana operators, and provide recommendations for improvement to the Office of the Governor.

Alaska made cultivating, selling and using marijuana state law in 2014, after voters approved an initiative make it legal. The initiative imposed a $50 per ounce excise tax on the sale of marijuana from warehouses to retailers and took effect in February 2015.

Since that time, the marijuana industry has grown in the Mat-Su Borough and across Alaska, from a niche market into a full-blown industry, that in fiscal year 2021, the Alaska Department of Revenue collected $30 million in marijuana taxes, three-times the amount collected in 2018.

Seven years later, now is an appropriate time to evaluate its provisions, including provisions now codified in AS 43.61.

In a statement, Governor Dunleavy said, “In the past seven years Alaska’s marijuana industry has flourished but is still considered a new and evolving industry in Alaska. As we would expect to see with any new industry, concerns have been raised about the structure the industry has been operating under.”

He went on to say that a foundational commitment from his administration has been to review regulations that may be labeled as unnecessary or burdensome to business, but also wanting to safeguard oversight to protect the health, life, and safety of all Alaskans.

“It is my hope that with the formation of the Governor’s Advisory Task Force on Recreational Marijuana, we can bring together a variety of voices and perspectives to evaluate existing provisions and consider recommendations to improve the viability of the industry.”

The Governor’s announcement has so far been met with support from the Alcohol and Marijuana Control office (AMCO), as AMCO Director Joan Wilson responded:

“Governor Dunleavy’s issuance of this administrative order is a wise first step to bringing forward solutions that could assist the recreational cannabis industry to thrive at the same time we continue to protect public health and public safety in our communities. After many discussions with diverse stakeholders, I am certain the State and the industry will benefit from this in-depth review, especially when it comes to addressing a stagnant excise tax rate that does not alter based on market price.”

Meanwhile, the Alaska Marijuana Industry Association has also expressed their support:

“I’d like to thank Governor Dunleavy for making the Task Force on Recreational Marijuana a priority. This is welcomed news by the marijuana industry as it has been a priority for the past five years,” said Ryan Tunseth, Alaska Marijuana Industry Association President. “We greatly look forward to the conversations that will take place in the coming months and will play a vital role in creating longevity in the industry.”

Once the Governor names appointments to the Task Force, it will meet monthly and submit a report of findings and recommendations by January 13, 2023.

Alaskans interested in serving on the Governor’s Advisory Task Force on Recreational Marijuana may apply at gov.alaska.gov/apply.