Section 3 AAC 306.080 - Denial of license or endorsement application(a) After review of the application, including the applicant's proposed operating plan and all relevant information, the board will deny an application for a new license or new onsite consumption endorsement if the board finds that (1) the application is not complete as required under the applicable provisions of 3 AAC 306.020 - 3 AAC 306.055, or contains any false statement of material fact;(2) the license or endorsement would violate any restriction in 3 AAC 306.010 or 3 AAC 306.015;(3) the license or endorsement would violate any restriction applicable to the particular license type authorized under this chapter;(4) the license or endorsement is prohibited under this chapter as a result of an ordinance or election conducted under AS 17.38.210, 3 AAC 306.200, or 3 AAC 306.230;(5) the applicant's actions or the operating plan does not adequately demonstrate that the applicant will comply with applicable provisions of this chapter;(6) the license or endorsement would not be in the best interests of the public; or(7) a protest by the local government is not arbitrary, capricious, and unreasonable.(b) After review of the application and all relevant information, the board will deny an application for renewal of a marijuana establishment license if the board finds (1) any cause listed in (a) of this section;(2) that the license or endorsement has been operated in violation of a condition or restriction the board previously imposed;(3) that the applicant is delinquent in the payment of taxes due in whole or in part from operation of the licensed business;(4) that a protest by the local government is not arbitrary, capricious, and unreasonable; or(5) that the applicant has lost right to possession of the applicant's licensed premises.(c) After review of the application and all relevant information, the board will deny an application for reinstatement of license due to failure to submit a timely renewal if the board finds (1) any cause listed in (a) or (b) of this section;(2) violation of any terms of an administrative hold an or seizure of marijuana or any marijuana product as described in 3 AAC 306.830;(3) the application was submitted later than September 30 of the given applicable year;(4) the applicant has had an application for reinstatement granted during the five years before application submittal; or(5) the failure to submit a timely renewal application is due to inexcusable oversight; inexcusable oversight includes failure to submit a renewal application, if the director proves that the licensee(A) was sent communications by the director that an application was due but ignored the notice; or(B) engaged in other conduct evidencing bad faith or disregard of the application requirements.(d) After review of the application and all relevant information, the board will deny an application for transfer of license to another person if the board finds (1) any cause listed in (a) of this section;(2) that the transferor has not paid all debts or taxes arising from the operation of the business licensed under this chapter unless(A) the transferor gives security for the payment of the debts or taxes satisfactory to the creditor or taxing authority; or(B) the transfer is under a promise given as collateral (i) by the transferor to the transferee in the course of an earlier transfer of the license; and(ii) that obliges the transferor to transfer the license back to the transferee in the event of default in payment for property conveyed as part of the earlier transfer of the license;(3) that transfer of the license to another person would result in violation of the provisions of this chapter relating to identity of licensees and financing of licensees;(4) that the prospective transferee does not have the qualifications of an original applicant required under this chapter; or(5) that a protest by the local government is not arbitrary, capricious, and unreasonable.(e) If the board denies an application for a new marijuana establishment license, renewal of a marijuana establishment license, license conversion, transfer of a marijuana establishment license to another person, or transfer of a marijuana establishment license to another location, the board will, not later than 15 days after the board meeting at which the application was denied, furnish a written statement of issues to the applicant, explaining the reason for the denial in clear and concise language, and identifying any statute or regulation on which the denial is based. In the notice of denial, the board will inform the applicant of the right to an informal conference under 3 AAC 306.085 and to a formal hearing under 3 AAC 306.090. (1) the application contains any false statement of material fact;(2) the license would violate any restriction applicable to the particular license type authorized under this chapter;(3) the license is prohibited under this chapter as a result of an ordinance or election conducted under AS 17.38.210, 3 AAC 306.200, or 3 AAC 306.230;(4) the applicant's actions or the application does not adequately demonstrate that the applicant will comply with applicable provisions of this chapter;(5) a protest by the local governing body is not arbitrary, capricious, and unreasonable (6) the license conversion would not be in the best interests of the public.(f) After review of the application and all relevant information, the board will deny an application for license conversion if the board finds that(1) the application contains any false statement of material fact;(2) the license would violate any restriction applicable to the particular license type authorized under this chapter;(3) the license is prohibited under this chapter as a result of an ordinance or election conducted under AS 17.38.210, 3 AAC 306.200, or 3 AAC 306.230;(4) the applicant's actions or the application does not adequately demonstrate that the applicant will comply with applicable provisions of this chapter;(5) a protest by the local government is not arbitrary, capricious, and unreasonable; or(6) the license conversion would not be in the best interest of the public.(g) After review of the application and all relevant information, the board will deny an application for a transfer of a marijuana establishment license to another location if the board finds that (1) the application contains any false statement of material fact;(2) the application is not complete as required under the applicable provisions of 3 AAC 306.020 - 3 AAC 306.055;(3) the license or endorsement would violate any restriction in 3 AAC 306.010 or 3 AAC 306.015;(4) the license or endorsement would violate any restriction applicable to the particular license type authorized under this chapter;(5) the license or endorsement is prohibited under this chapter as a result of an ordinance or election conducted under AS 17.38.210 and 3 AAC 306.200 - 3 AAC 306.250;(6) the applicant's actions or the operating plan does not adequately demonstrate that the applicant will comply with applicable provision of AS 17.38 and this chapter;(7) the license or endorsement would not be in the best interest of the public;(8) a protest by the local government is not arbitrary, capricious, and unreasonable;(9) a protest by the current local government in the case of a transfer of location of the license to a different local government is based on taxes owed to the current local government; or(10) that the licensee has not paid all debts or taxes arising from the operation of the business licensed under this chapter unless the transferor gives security for the payment of the debts or taxes satisfactory to the creditor or taxing authority.Eff. 2/21/2016, Register 217, April 2016; am 2/21/2019, Register 229, April 2019 ; am 8/21/2019, Register 231, July 2019; am 8/7/2021, Register 239, October 2021; am 7/30/2022, Register 243, October 2022; am 1/22/2023, Register 245, April 2023; am 3/22/2024, Register 249, April 2024Authority:AS 17.38.010
AS 17.38.070
AS 17.38.121
AS 17.38.150
AS 17.38.190
AS 17.38.200
AS 17.38.900