Alaska’s Leadership in Cannabis Policy
Alaska has been at the forefront of cannabis policy reform. In 1998, voters approved medical cannabis legalization, making Alaska the second state (tied with Washington and Oregon) to do so. However, there was no legal avenue for patients to purchase it. In 2014, Alaska again made history by becoming the third state (tied with Oregon) to legalize adult-use cannabis.
On November 4, 2014, 53% of Alaskan voters passed Ballot Measure 2, legalizing cannabis for adults. Residents aged 21 and older can now grow up to six plants at home and legally purchase up to one ounce of flower or seven grams of concentrate. However, gaps remain in the law. Patients under 21 still lack access to medical cannabis, and those over 21 are not exempt from cannabis taxes. Additionally, Alaska remains one of only two legalization states without an expungement process for past cannabis-related convictions. Protections against discrimination and reparative justice initiatives are also lacking.
While some municipalities have banned retail sales, cities like Anchorage, Juneau, and Fairbanks have embraced retail cannabis businesses.
Alaska’s Consideration of Cannabis Tax Reform
On September 21, 2022, Governor Mike Dunleavy (R) established a Governor’s Advisory Task Force on Recreational Cannabis to assess the state’s cannabis tax structure and regulations. Despite generating nearly $30 million in revenue in 2022, the state’s $50-per-ounce excise tax on cultivators has become a growing concern, as it constitutes an increasingly large portion of the final sales price.
The task force proposed key changes:
- Short-term: Reduce the current weight-based tax to 25% of its original rate.
- Long-term: Shift from weight-based taxation to a standard sales tax, initially proposed at 3%, later adjusted to 10%, set to take effect on January 1, 2025.
These changes aim to streamline tax collection, foster product innovation, and potentially maintain or increase revenue for the state.
The task force also recommended distributing cannabis tax revenue as follows:
- 50% toward recidivism reduction programs
- 25% to the state’s general fund
- 25% to substance abuse treatment programs
However, the legislature has yet to act on these recommendations.
On May 13, 2024, the Alaska House of Representatives passed House Bill 119, a cannabis tax reform bill seeking to lower the tax rate from the $50-per-ounce excise tax to a 7% sales tax. While this aimed to increase market competitiveness, the bill ultimately died in committee.
Alaska Pioneered On-Site Cannabis Consumption
In 2019, Alaska became the first state to permit on-site cannabis consumption when the Marijuana Control Board approved business licenses allowing on-site use. At least two retailers—Good Titrations in Fairbanks and Cannabis Corner in Ketchikan—offer on-site consumption.
Retailers must apply for a special on-site use endorsement and comply with security, ventilation, and operational standards set by the Marijuana Control Board. Local governments have the authority to object to these endorsements and can restrict or prohibit on-site use through municipal ordinances or public votes.
Alaska’s Cannabis Policies Lag Behind Other States
Despite progress, Alaska’s cannabis policies fall short in comparison to other states. Employment protections for cannabis consumers are absent, whereas states like California, New Jersey, and New York offer such safeguards. Nearly half of the 37 medical cannabis states provide employment protections, but in Alaska, both medical and recreational users can still face termination for off-hours cannabis use, even if they test positive days or weeks later.
Expungement of past cannabis convictions is another area where Alaska lags. Unlike other states that have moved to clear prior convictions, Alaska has yet to implement such measures.
On April 20, 2022, the Alaska House of Representatives passed HB246, which would have removed simple cannabis possession records from the public online database. The bill also sought to reclassify possession for 18–20-year-olds as a fine-only violation instead of a jailable misdemeanor. However, the Senate did not pass the bill, and it ultimately died in committee.
Anchorage Assembly Modernizes Drug Testing Policies
On October 11, 2023, the Anchorage Assembly enacted a significant reform to municipal drug testing policies for city employees. This change allows most employees to legally consume cannabis under state laws.
Key aspects of the reform include:
- Equal treatment to alcohol: Most employees can consume cannabis off-duty, similar to alcohol use.
- Workplace safety measures: Employees must refrain from cannabis use at least eight hours before work.
- Impairment-based testing: Drug tests now focus on identifying active impairment rather than detecting past cannabis use.
- Emphasis on support over punishment: Failing a drug test no longer results in automatic termination. Instead, employees may enter a progressive discipline process, which includes education, assessment, and potential treatment referrals.
To stay updated on efforts to improve Alaska’s cannabis laws—including employment protections, expungement of past convictions, and reduced penalties for those under 21—visit Marijuana Dispensary for updates and alerts.