3 AAC 306.830 - Seizure of or administrative hold on marijuana or marijuana products
(a) The
director, an enforcement agent, an employee of the board, or a peace officer
acting in an official capacity may seize or place an administrative hold on
marijuana or any marijuana product from a licensed or previously licensed
marijuana establishment
(1) if the marijuana
establishment has any marijuana or marijuana product not properly logged into
the marijuana establishment's marijuana inventory tracking system;
(2) if the marijuana establishment has any
adulterated marijuana food or drink product prohibited under
3
AAC 306.510(a)(4);
(3) if the marijuana establishment has any
marijuana or marijuana product that is not properly packaged and labeled as
provided in
(4) if the marijuana establishment has not
renewed its license as required under
3
AAC 306.035 or if the board has denied renewal of the
marijuana establishment's license under
3
AAC 306.080(b);
(5) upon the development of reasonable
grounds to believe that any marijuana or marijuana product
(A) constitutes evidence of a violation of a
state statute or regulation; or
(B)
poses an immediate threat to worker or public health, safety, or welfare;
or
(6) if the marijuana
establishment has engaged or attempted to engage in
(A) the diversion of marijuana or a marijuana
product; or
(B) a crime on the
establishment's licensed premises; in this subparagraph, "crime" has the
meaning given in
AS
11.81.900(b).
(b) The director, an enforcement agent, an
employee of the board, or a peace officer acting in an official capacity may
choose, for a reason set out in (a) of this section, whether to place an
administrative hold on marijuana or a marijuana product or seize the marijuana
or marijuana product. The director may change an administrative hold to a
seizure. The director shall update the marijuana inventory control tracking
system to reflect the administrative hold or seizure or a change from an
administrative hold to a seizure.
(c) If marijuana or a marijuana product is
placed on an administrative hold, the marijuana establishment shall
(1) physically separate the marijuana or
marijuana product from the public and store it in a secured and
restricted-access area of the establishment's licensed premises; and
(2) receive the express written consent of
the director to sell, move, transfer, or engage in any other commercial
activity relating to the marijuana or marijuana product
(A) after the conclusion of the investigation
of the reason for the administrative hold, the payment of any civil fine, the
lifting of any suspension, and the conclusion of any informal conference, any
formal hearing, and any hearing under
AS
44.62.330 -
44.62.630 (Administrative
Procedure Act) and, if applicable,
2
AAC 64.100 -
2
AAC 64.990;
(B) if seizure of the marijuana or marijuana
product has not been ordered under (d) of this section; and
(C) if destruction of the marijuana or
marijuana product has not been ordered under (j) of this
section.
(d) If
the director, an enforcement agent, an employee of the board, or a peace
officer acting in an official capacity seizes marijuana or a marijuana product
under this section, the director shall ensure that the items physically removed
from the establishment's licensed premises are stored in a reasonable
manner.
(e) The director shall
immediately give the marijuana establishment at which the marijuana or
marijuana product was placed on administrative hold or from which the item was
seized notice of whether the action is an administrative hold or seizure and
the reasons for the administrative hold or seizure. In the notice, the director
shall state that the marijuana establishment may request, not later than 15
days after receiving the notice,
(1) an
informal conference, before either the director or the board, if the
establishment is aggrieved by an administrative hold; the director shall also
state in the notice that selection of an informal conference does not affect
the establishment's right to request a formal hearing from the administrative
hold; or
(2) a formal hearing
before the board from an administrative hold or seizure; in the notice, the
director shall schedule a date and time for a formal hearing that is not later
than 15 days after the establishment receives the notice, unless the
establishment requests a delay.
(f) If a marijuana establishment aggrieved by
an administrative hold selects an informal conference
(1) with the director, the informal
conference must be held at a time and place convenient to the establishment and
the director, but not later than 15 days after the establishment receives
notice of the administrative hold, unless the establishment elects a later time
for the conference; an informal conference with the director may be conducted
telephonically; or
(2) with the
board, the informal conference must be held at a time and place convenient to
the establishment and the board, but not later than the next scheduled meeting
of the board; an informal conference with the board may be conducted
telephonically.
(g) If an
informal conference does not resolve the matter of an administrative hold to
the satisfaction of a marijuana establishment, the establishment, not later
than 15 days after the last day of the informal conference, may request a
formal hearing. The hearing will be held not later than 15 days after the
director's receipt of the request for a formal hearing.
(h) If a marijuana establishment's request
for a formal hearing is from an informal conference regarding an administrative
hold, the director shall send the establishment a notice with the date and time
of the formal hearing, scheduled as described in (g) of this section, unless
the establishment has requested a delay. If the request for the formal hearing
is from an administrative hold or seizure, and the establishment did not
request an informal conference, the formal hearing will be held on the date and
time scheduled in the notice sent under (e)(2) of this section, unless the
establishment has requested a delay. If the administrative hold or seizure
occurs in connection with a summary suspension under
3
AAC 306.825, the hearing will be combined with a
hearing on the summary suspension.
(i) If an administrative hold is on marijuana
plants in a licensed standard or limited marijuana cultivation facility, the
order setting the administrative hold must
(1)
direct the facility to continue care of the plants until the conclusion of any
informal conference, any formal hearing, and any hearing under
AS
44.62.330-44.62.630 (Administrative
Procedure Act) and, if applicable,
2
AAC 64.100 -
2
AAC 64.990; and
(2) prohibit any transfer, sale, or
commercial activity related to the plants, until the conclusion of any informal
conference, any formal hearing, and any hearing under
AS
44.62.330 -
44.62.630 (Administrative
Procedure Act) and, if applicable,
2
AAC 64.100-2 AAC
64.990.
(j) If after a formal hearing the
administrative hold or seizure is upheld as justified, the marijuana
establishment at or from which the marijuana or marijuana product was placed on
administrative hold or seized may request a hearing under
AS
44.62.330-44.62.630 and, if applicable,
2
AAC 64.100 -
2
AAC 64.990.
(k) If a marijuana establishment from which
marijuana or marijuana product was placed on administrative hold or seized does
not contest the seizure or hold, or if after any informal conference and any
final hearing the administrative hold on or seizure of the marijuana or
marijuana product is upheld as justified, the board may order the destruction
of the marijuana or marijuana product, in addition to or in place of any fines
or civil remedies. The marijuana or marijuana product must be destroyed by
burning, crushing, or mixing with other material to make the marijuana or
marijuana product unusable as provided in
3
AAC 306.740.
(l) The board will not consider marijuana or
marijuana product placed on administrative hold or seized to be part of a
marijuana establishment's physical inventory until the administrative hold is
lifted or the marijuana or marijuana product is removed from seizure. The
director shall notify, for information purposes, local governments and taxing
authorities with jurisdiction over a marijuana establishment subject to the
administrative hold and seizure not later than 30 days after the administrative
hold or seizure is put in place or lifted.
Notes
Authority:AS 17.38.010
AS 17.38.070
AS 17.38.121
AS 17.38.131
AS 17.38.150
AS 17.38.190
AS 17.38.200
AS 17.38.900
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