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HB0325b -1- CSHB 325(L&C)
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CS FOR HOUSE BILL NO. 325(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Offered: 5/4/26
Referred: Judiciary
Sponsor(s): REPRESENTATIVES MCCABE, Tomaszewski
A BILL
FOR AN ACT ENTITLED
"An Act relating to industrial hemp; and providing for an effective date." 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2
* Section 1. AS 03.05.010(a) is amended to read: 3
(a) The commissioner of natural resources shall 4
(1) direct, administer, and supervise promotional and experimental 5
work, extension services, and agricultural projects for the purpose of promoting and 6
developing commercial and noncommercial agricultural industry in the state, 7
including horticulture, dairying, cattle raising, fur farming, grain production, vegetable 8
production, and agricultural products; 9
(2) procure and preserve all information pertaining to developing the 10
agricultural industry in the state and disseminate that information to the public; 11
(3) assist prospective settlers and others to engage in the agricultural 12
industry in the state by providing information about activities and programs essential 13
to developing the agricultural industry and areas in the state that are suitable for 14
agriculture; 15
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(4) review the marketing, financing, transportation, and development 1
of agricultural products in the state, with special emphasis on local production, and 2
negotiate for the marketing of agricultural products of the state with federal and state 3
agencies operating in the state; 4
(5) regulate and control the entry in the state and the transportation, 5
sale, or use in the state of plants, seeds, vegetables, shell eggs, fruits and berries, 6
nursery stock, animal feeds, remedies and mineral supplements, fertilizers, and 7
agricultural chemicals to prevent the spread of pests, diseases, or toxic substances 8
injurious to the public interest and protect the agricultural industry against fraud, 9
deception, and misrepresentation; for purposes of this paragraph, the commissioner 10
may require registration, inspection, and testing and may establish procedures and 11
fees; 12
(6) regulate the farming of elk in a manner similar to the manner in 13
which the commissioner regulates domestic animals and livestock, to the extent that is 14
appropriate; 15
(7) adopt regulations relating to industrial hemp, including regulations 16
that 17
(A) specify approved sources or varieties of hemp seed or 18
propagation material to be grown, sold, or offered for sale by an individual 19
registered to produce industrial hemp, including material certified under a 20
federally approved hemp program, federally certified seed scheme, or 21
recognized third-party certifier, without requiring grow-out trials 22
conducted by the department; 23
(B) require testing, paid for by the registrant, for delta-9-24
tetrahydrocannabinol concentration following harvest of the industrial hemp, 25
allowing for independently accredited laboratories and samplers; 26
(C) provide for general production practices to avoid the 27
unintended distribution of industrial hemp seeds by registrants into 28
nonagricultural land; 29
(D) establish an isolation distance [DISTANCES] for the 30
production of industrial hemp grown for certified or seed-purity production 31
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of at least 1,000 meters, and recommend isolation distances for the 1
production of other industrial hemp; in this subparagraph, "isolation 2
distance" means the minimum separation required between two or more 3
varieties of the plant (genus) Cannabis for the purpose of keeping the seed 4
pure; 5
(E) permit manufacturing and retail sale of industrial hemp and 6
products made from industrial hemp; 7
(F) establish a registration and renewal procedure for a 8
participant in the industrial hemp program developed under AS 03.05.076; 9
(G) establish a tiered testing frequency based on risk 10
categories developed in regulation that considers crop history and past 11
compliance; 12
(H) allow a harvest window of not more than 30 days after 13
sample collection, with permissible extensions for weather or other good 14
cause; 15
(I) establish tiered grower categories, including a micro-16
grower category, with scaled reporting, inspection, testing, and fee 17
requirements; 18
(J) eliminate permits for in-state transportation of 19
industrial hemp between registered parties when a shipment is 20
accompanied by a certificate of analysis or other approved shipping 21
documentation; 22
(K) establish corrective-action-plan procedures to enforce 23
an industrial hemp violation that prioritize compliance, include a written 24
notice of the registrant's noncompliance, provide an opportunity for the 25
registrant to cure the noncompliance, and establish objective criteria for 26
escalation, including civil penalties, suspension, or revocation; 27
(8) submit a list of individuals registered to produce industrial hemp 28
under AS 03.05.076 and the expiration dates of the registrations to the Marijuana 29
Control Board and the Department of Public Safety; 30
(9) regulate the labeling of seed that does not comply with the 31
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requirements of AS 03.20.130. 1
* Sec. 2. AS 03.05.010(c) is amended to read: 2
(c) The commissioner of natural resources shall notify the Marijuana Control 3
Board and the Department of Public Safety of a person's repeated or knowing 4
violations of state statutes or regulations relating to industrial hemp. Industrial 5
hemp shall be tested using a federally compliant testing method that accounts for 6
measurement uncertainty. Noncompliant industrial hemp is industrial hemp that 7
tests above 0.3 percent delta-9 tetrahydrocannabinol on a dry-weight basis 8
[WHEN THE COMMISSIONER ISSUES A STOP ORDER]. The commissioner of 9
natural resources shall 10
(1) [SHALL] issue a stop order to a person 11
[(A) NOT REGISTERED UNDER AS 03.05.076 WHO IS 12
FOUND TO BE PRODUCING A PLANT WITH DELTA-9-13
TETRAHYDROCANNABINOL; OR 14
(B)] registered under AS 03.05.076 who is found to be 15
producing a plant with delta-9-tetrahydrocannabinol over one percent; and 16
(2) allow [MAY ISSUE A STOP ORDER TO] a person registered 17
under AS 03.05.076 who is found to be producing a plant with delta-9-18
tetrahydrocannabinol between 0.3 percent and one percent to retain and recondition, 19
remediate, or convert the plant to a nonintoxicating industrial use before issuing 20
a stop order requiring destruction of the plant. 21
* Sec. 3. AS 03.05.010 is amended by adding a new subsection to read: 22
(e) The commissioner of natural resources may issue enforcement actions for 23
an industrial hemp violation using the corrective-action plan developed under 24
(a)(7)(K) of this section. 25
* Sec. 4. AS 03.05.076(a) is amended to read: 26
(a) Industrial hemp is an agricultural crop in the state. An individual who 27
produces industrial hemp shall apply to the department for registration under this 28
section. Registration is valid for one year but may be renewed. An application for 29
registration or renewal must be on a form prescribed by the department that includes 30
(1) the name and address of the applicant; 31
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(2) the address and global positioning system coordinates of the area to 1
be used for the production of industrial hemp; and 2
(3) the applicant's acreage or estimated plant count sufficient to 3
determine the applicant's tiered grower category under AS 03.05.010(a)(7)(I) [A 4
SIGNED STATEMENT BY THE APPLICANT, MADE UNDER THE PENALTY 5
OF PERJURY, AFFIRMING THAT THE APPLICANT 6
(A) HAS NOT BEEN CONVICTED OF A FELONY 7
RELATED TO A CONTROLLED SUBSTANCE IN THIS OR ANOTHER 8
JURISDICTION WITHIN THE 10 YEARS IMMEDIATELY PRECEDING 9
THE DATE OF APPLICATION; OR 10
(B) WAS LAWFULLY GROWING HEMP BEFORE 11
DECEMBER 20, 2018, AND WAS NOT CONVICTED OF A FELONY 12
RELATED TO A CONTROLLED SUBSTANCE IN THIS OR ANOTHER 13
JURISDICTION AFTER THAT DATE]. 14
* Sec. 5. AS 03.05.076(b) is amended to read: 15
(b) An individual registered under this section may 16
(1) produce industrial hemp, including growing, harvesting, 17
possessing, transporting, processing, selling, or buying industrial hemp; 18
(2) use any propagation method, including planting seeds or starts or 19
using clones or cuttings to produce industrial hemp; 20
(3) retain industrial hemp seeds for the purpose of propagating 21
industrial hemp in future growing seasons [YEARS]; 22
(4) retain and recondition, remediate, or convert any industrial hemp 23
that tests between 0.3 percent and one percent delta-9-tetrahydrocannabinol on a dry-24
weight basis. 25
* Sec. 6. AS 03.05.076(c) is amended to read: 26
(c) An individual registered under this section shall 27
(1) comply with testing standards and procedures established by the 28
commissioner of natural resources by regulation; 29
(2) maintain, for at least three years following the sale or transfer of 30
industrial hemp, records showing 31
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(A) the name and address of the person that received the 1
industrial hemp; 2
(B) the amount of industrial hemp transferred; 3
(3) make the records required under (2) of this subsection available for 4
inspection by the department during normal business hours if the department provides 5
at least 10 [THREE] days' notice before inspecting the records. 6
* Sec. 7. AS 03.05.076(d) is amended to read: 7
(d) The department shall 8
(1) establish fee levels for application, registration, and renewal of 9
registration so that the total amount of fees collected under this section approximately 10
equals the regulatory costs for regulating the industrial hemp industry, with reduced 11
or waived fees for micro-growers; 12
(2) annually review each fee level to determine whether the regulatory 13
cost of industrial hemp is approximately equal to the fees collected; 14
(3) notify the Marijuana Control Board and the Department of Public 15
Safety when the department issues a notice for a repeated or knowing [A STOP-16
SALE ORDER AND ISSUES A] violation [NOTICE] under this section; 17
(4) require an individual registered under this section whose industrial 18
hemp tests over one percent delta-9-tetrahydrocannabinol to destroy the product so 19
that it cannot be used for the purpose of reconditioning other hemp crops or gifted or 20
transferred to another individual other than for the purpose of having the industrial 21
hemp destroyed in full form; 22
(5) issue a notice to an individual for a repeated or knowing 23
violation of state statutes or regulations relating to industrial hemp. 24
* Sec. 8. AS 03.05.076(e) is amended to read: 25
(e) The department may 26
(1) [SHALL] issue a stop-sale order and issue a violation notice to a 27
person who is producing industrial hemp without a current registration; 28
(2) [MAY] adopt regulations regarding approved shipping 29
documentation for the transportation of industrial hemp and eliminate permits for in-30
state transportation between registered parties; 31
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(3) [MAY] conduct random tests and inspections of industrial hemp 1
for delta-9-tetrahydrocannabinol concentration produced by an individual registered 2
under this section; random tests and inspections under this paragraph may use 3
risk-based tiers with reduced frequency for low-risk growers, products, or 4
production or testing methods approved by the department in regulation. 5
* Sec. 9. AS 03.05.079 is amended to read: 6
Sec. 03.05.079. Production in violation of delta-9-tetrahydrocannabinol 7
limit. (a) Notwithstanding AS 11.71.040 - 11.71.060, an individual registered under 8
AS 03.05.076 to produce industrial hemp whose product has a delta-9-9
tetrahydrocannabinol content between 0.3 percent and one percent may retain and 10
recondition, remediate, or convert the product as provided in AS 03.05.076(b)(4). 11
(b) An individual who retains but fails to recondition, remediate, or convert 12
an industrial hemp product described in (a) of this section is guilty of a violation. 13
* Sec. 10. AS 03.05.100 is amended by adding a new paragraph to read: 14
(6) "micro-grower" means an individual registered under AS 03.05.076 15
to produce industrial hemp whose product is cultivated on less than one-quarter of an 16
acre or who has fewer than 200 plants, including indoor or greenhouse production. 17
* Sec. 11. AS 43.61.010 is amended by adding a new subsection to read: 18
(g) The tax imposed by (a) of this section does not apply to industrial hemp 19
produced in compliance with AS 03.05.076, or to a product made from industrial 20
hemp if the product contains not more than 0.3 percent delta-9-tetrahydrocannabinol 21
content on a dry-weight basis as determined by testing that complies with the 22
requirements of AS 03.05.010(c). 23
* Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 24
read: 25
TRANSITION: REGISTRANTS. (a) An individual who held a valid registration 26
under AS 03.05.076 during the period between January 1, 2021, and December 31, 2025, and 27
whose registration lapsed solely as a result of regulatory action by the Department of Natural 28
Resources during the period between January 1, 2024, and December 31, 2025, is eligible for 29
reinstatement following application without paying a renewal of registration fee. 30
(b) The Department of Natural Resources may not require the destruction of industrial 31
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hemp or a product made from industrial hemp that is lawfully held by a registrant under (a) of 1
this section if the industrial hemp or product made from industrial hemp satisfies the testing 2
standards in AS 03.05.076(c), as amended by sec. 6 of this Act. 3
* Sec. 13. This Act takes effect July 1, 2026. 4