How Alaska's Legislature Works

Alaska's legislature meets annually, with regular sessions typically running from January through May. Cannabis bills can be introduced in any session. Between sessions, the Marijuana Control Board (MCB) handles regulatory changes through amendments to 3 AAC 306. The MCB also engages with the legislative process directly — the Board may submit letters of support or opposition on cannabis-related bills.

Active Cannabis Bills

Several cannabis-related bills have been introduced in the current legislative session. As of March 2026, all remain in committee without having reached a floor vote.

HB 81 — Record Privacy

HB 81 addresses privacy protections for cannabis-related records. The bill aims to strengthen privacy safeguards for individuals whose records may include cannabis-related offenses, aligning Alaska's approach with the evolving legal status of cannabis in the state. The bill addresses concerns that prior cannabis records can still affect employment, housing, and other opportunities despite legalization.

Status: Stalled in committee.

HB 91 — Retail Tax to Replace Excise Tax

HB 91 proposes the most significant change to Alaska's cannabis tax structure since legalization: replacing the current $50/oz cultivator excise tax with a 6% retail tax collected at the point of sale. Proponents argue that:

• A retail percentage tax scales naturally with market conditions — if prices drop, the tax burden adjusts proportionally
• The current weight-based excise creates cash flow challenges for cultivators, who must pay tax on product before it generates retail revenue
• A retail tax is simpler to administer and more transparent to consumers
• Most other legal cannabis states use retail-level taxes

Critics are concerned that a 6% retail rate might generate less revenue than the current excise system, and that the shift could disrupt established business planning.

Status: Stalled in Finance Committee.

HB 94 / SB 73 — Tax Reform Companions

HB 94 and its Senate companion SB 73 are additional tax reform bills that align with the goals of HB 91. These bills have received notable support from the Marijuana Control Board, which sent a formal support letter in February 2025. The MCB's endorsement reflects the Board's recognition that the current tax structure creates operational challenges for the industry it regulates.

Status: Stalled in Finance Committee.

The Absent Expungement Process

One of the most significant gaps in Alaska's cannabis reform is the lack of an expungement process for prior cannabis offenses. Despite recreational legalization in 2014, Alaskans convicted of cannabis offenses before legalization have no formal pathway to clear those records.

This stands in contrast to states like Nevada (which approved mass pardons in 2020), Illinois (which tied expungement to its legalization law), and several other states that have created automatic or petition-based expungement processes. In Alaska, individuals with prior cannabis convictions must navigate the standard clemency process through the Governor's office, with no cannabis-specific provisions.

The absence of expungement is particularly notable given that 50% of Alaska's cannabis tax revenue is directed to recidivism reduction programs — the state funds programs to reduce repeat offenses while providing no mechanism to clear the records of people convicted for conduct that is now legal.

Federal Developments

Trump Rescheduling Executive Order (December 2025)

In December 2025, President Trump signed an executive order directing the rescheduling of cannabis under the Controlled Substances Act. While the details and implementation timeline remain uncertain, rescheduling could have significant implications for Alaska's cannabis industry:

• Banking access: Rescheduling could open traditional banking services to cannabis businesses, reducing the cash-heavy operations that create security risks
• Federal tax treatment: Section 280E of the Internal Revenue Code currently prevents cannabis businesses from deducting normal business expenses — rescheduling could eliminate this punitive tax treatment
• Federal land: With approximately 60% of Alaska being federal land, any change in federal cannabis status would have outsized impact in the state

As of March 2026, the rescheduling process is ongoing and no final rule has been implemented.

Regulatory Changes (MCB/AMCO)

Between legislative sessions, the Marijuana Control Board continues to refine regulations through the 3 AAC 306 amendment process. Recent and ongoing regulatory priorities include:

• Consumption endorsement operational requirements
• Testing standards and laboratory oversight
• Packaging and labeling compliance
• Metrc tracking system updates
• Handler permit education course requirements

MCB regulatory changes follow the standard Alaska Administrative Procedure Act process, including public notice and comment periods. Meeting schedules and proposed regulations are posted on the AMCO website.

What to Watch

Key issues likely to drive future cannabis legislation in Alaska include:

• Tax reform: The push to replace the cultivation excise with a retail percentage tax is supported by the industry and the MCB, and is likely to be reintroduced if current bills do not advance
• Expungement: Growing national momentum for cannabis record clearing may eventually prompt Alaska to create a formal expungement process
• Federal rescheduling impact: The outcome of the December 2025 executive order will shape banking access, tax treatment, and the federal land question that is uniquely critical in Alaska
• Municipal restrictions: Ongoing debates about whether municipalities should be able to prohibit legal cannabis businesses, and whether opt-out communities miss out on economic benefits

Active cannabis bills include HB 81 (record privacy), HB 91 (6% retail tax to replace excise), and HB 94/SB 73 (tax reform companions with MCB support letter February 2025). All remain stalled in committee. Alaska has no expungement process for prior cannabis offenses.

Alaska Legislature & AMCO Records