As Alaska's Marijuana Control Board continues accepting written comments on the legal system that is taking shape, Tristan wonders, "Will people with criminal records be allowed to participate in the cannabis industry?"
So far, the answer is yes, but that depends on what we mean by "participate," and what kind of criminal record we're talking about.
With the passage of House Bill 123 last session, which among other things created the MCB, the Alaska Legislature added a new paragraph to the initiative-created Alaska Statute 17.38.100, one that restricts people convicted of a felony within the past five years from being involved in a registered cannabis-related business.
The new bit, AS 17.38.100(i), reads thusly:
A marijuana establishment may not be registered under this chapter if a person who is an owner, officer, or agent of the marijuana establishment has been convicted of a felony and either (1) less than five years have elapsed from the time of the person's conviction; or (2) the person is currently on probation or parole for that felony.
That statute is referred to in proposed regulations on license restrictions, 3 AAC 306.010(d)1, as grounds for not issuing a cannabis license, both to individuals and partnerships that include someone who doesn't meet that test. That proposed regulation also clarifies that a felony conviction counts even if the sentence was suspended.
That statute does not mention "employees," as do several places in the rest of proposed regulations, so it appears that the term "agent" does not necessarily mean all classes of employees. After all, there are plenty of jobs in the industry that don't fit the classic definition of an agent. Bud trimmers and edibles makers, for example.
Read more Highly Informed: Seeking answers to Alaska's cannabis questions
I've asked ABC Board Director Cynthia Franklin for additional clarification on whether the no-felons rule would apply to employees as well as owners, officers and agents, and I will update this space if she makes further comment. She did note in an email that the original amendment to HB 123 that created the above statute included the word "employees," but the version that was passed cut it. That indicates to me that legislative intent was to not include all employees in the rules against felons, just folks with a formal legal connection to a licensee.
Paragraph 2 of that proposed regulation on issuing licenses would deny a marijuana establishment license application from a person "who operated a marijuana delivery service, a marijuana club, or a marijuana establishment illegally without a license within the two years before the effective date of this section, or has been found guilty of a criminal act or violation of AS 04, or a violation of AS 17.38, unless the board finds that person has diligently worked with the board to comply with all current laws relating to marijuana."
That provision seems tailored to exclude owners of cannabis-related businesses that have defied warnings to shut down operations started prior to established regulations. At this writing, no criminal charges have been filed against owners or operators who have defied the warnings, but the way the proposed regulation is written above, they could be excluded even without a conviction.
As for criminal convictions affecting a cannabis license held after the system is in place, regulations proposed in 3 AAC 306.810 hold that "the board will suspend or revoke a marijuana establishment license issued under this chapter when any licensee is convicted of a felony, or the board becomes aware that a licensee did not a disclose a previous felony conviction."
And because I know people will wonder, no, restrictions like those don't exist in AS 04.11.320, the section of state law governing the denial of new liquor licenses or permits, or the section governing the renewal, suspension or revocation of those already held. Alcoholic Beverage Control Board administrative codes (Title 3, chapter 304) don't mention recent felonies as grounds for denying applications for alcohol licenses either.
Proposed regulations for cannabis and those existing for alcohol are similar, however, in that violation by an owner, operator, agent or employee of the codes governing the whole range of sales production or distribution is grounds for denial, suspension or revocation of a cannabis license or permit.
There's also a provision in proposed code 3 AAC 306.030(b)A and B that would require notice in a license renewal application of "any criminal charge" in the previous two calendar years and of "any civil violation of AS 04, AS 17.38, or this chapter" in the previous two calendar years.
Proposed cannabis regs and existing ones for alcohol are also similar regarding requirements of employees. The alcohol industry requires servers and other kinds of workers to be certified in the law and many aspects of serving a regulated substance. The same will hold for people who work with cannabis if regulations are approved as currently proposed.
A proposed provision would direct the creation of a marijuana handler permit course, which looks like it'll be the cannabis industry equivalent of an alcohol-related TAP certification. The proposal holds that passing the test will require knowledge of cannabis statutes, regulations and various other things related to consumption. That section of proposed regulations doesn't specifically bar people with criminal records from being employees of a licensed cannabis establishment.
So, summing up, people with a few misdemeanors are fine if they want to work in any role for the cannabis industry once it gets off the ground. But a felony less than 5 years ago or current parole or probation, and they're out of luck as an owner, operator or agent. Pending further clarification, it appears that some level of employment will be permitted no matter what someone's record is.
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