State of Alaska
Fiscal Note
Bill Version: HB 273
2018 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 2/28/2018
Identifier: HB273-DCCED-AMCO-02-16-2018 Department: Department of Commerce, Community and
Title: EXTEND: MARIJUANA CONTROL BOARD Economic Development
Sponsor: KITO Appropriation: Alcohol and Marijuana Control Office
Requester: (H) FINANCE Allocation: Alcohol and Marijuana Control Office
OMB Component Number: 3119
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2019 Governor's
Appropriation FY2019 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2019 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Personal Services 765.5 765.5 765.5 765.5 765.5 765.5
Travel 73.5 73.5 73.5 73.5 73.5 73.5
Services 750.0 750.0 750.0 750.0 750.0 750.0
Commodities 71.6 71.6 71.6 71.6 71.6 71.6
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 0.0 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6
Fund Source (Operating Only)
1004 Gen Fund (UGF) 532.8
1005 GF/Prgm (DGF) 1,127.8 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6
Total 0.0 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6
Positions
Full-time 8.0 8.0 8.0 8.0 8.0 8.0
Part-time
Temporary
Change in Revenues
1005 GF/Prgm (DGF) 1,127.8 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6
1250 UGF Rev (UGF) 532.8
Total 0.0 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6 1,660.6
Estimated SUPPLEMENTAL (FY2018) cost: 0.0 (separate supplemental appropriation required)
(discuss reasons and fund source(s) in analysis section)
Estimated CAPITAL (FY2019) cost: 0.0 (separate capital appropriation required)
(discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
Updated to correct operating expenditures and program receipts, and to expand the bill analysis.
Prepared By: Erika McConnell, Executive Director Phone: (907)269-0351
Division: Alcohol and Marijuana Control Office Date: 02/16/2018
Approved By: Catherine Reardon, Director Date:
OUT OF
02/16/18
Agency: Division of Administrative Services, DCCED REPORTED
Printed 2/27/2018 Page 1 of 2 HFC 02/27/2 018
Control Code: oLvHt
 HB 273 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. HB273
2018 LEGISLATIVE SESSION
Analysis
HB 273 extends statutory authorization for the existing Marijuana Control Board (MCB) through June 30, 2024.
With the establishment of the Marijuana Control Board (MCB) in 2015 through HB 123, the Alcohol and Marijuana Control
Office was assigned to develop and oversee the regulatory requirements, licensing process, and enforcement of
commercial marijuana establishments.
The Marijuana Control Board's mission is to control the the cultivation, manufacture, and sale of marijuana and marijuana
products in the state. To date there are 174 licensed marijuana businesses operating within the state of Alaska. An
additional 103 businesses have been approved by the board and are preparing to become operational. Operating licenses
must be renewed annually.
The AMCO Executive Director supervises 20 positions in three units. The licensing unit is managed by a program
coordinator and has one records and licensing supervisor, five licensing examiners, one administrative assistant, and one
local government specialist. The enforcement unit is managed by a supervisor and has seven special investigators and one
criminal justice technician. The administrative unit is overseen by an administrative officer and has one administrative
assistant.
Should the Marijuana Control Board not be extended, AMCO staff would be reduced by eight positions: three
investigators, two licensing examiners, the records and licensing supervisor position, the criminal justice technician, and an
administrative assistant.
If the bill passes the following expenses will continue to be incurred:
Personal Services: $765.5 (eight fulltime agency staff: 3 Special Investigator I, Records and Licensing Supervisor, 2
Occupational Licensing Examiner, Administrative Assistant I, Criminal Justice Technician I)
Travel: $73.5 (board members attend at least five board meetings per year; board is required to meet in
each judicial district at least once per year; agency director and occasionally board chair or other
agency management staff travel for conferences and/or training; enforcement staff travel
throughout state for inspections and investigations)
Services: $750.0 (includes information technology and department support for deleted positions; support from the
Department of Law; hearing services; building leases; meeting advertising; meeting space rental; and other
reimbursable services agreements with other agencies)
Commodities: $71.6 (supplies including printing statute/regulation books; ammunition and other enforcement training
supplies; office supplies)
The MCB's work is funded by a combination of general funds and program receipts from licensing fees in FY2019. In
FY2020, marijuana regulation will be fully funded by licensing fees.
(Revised 9/26/17 OMB/LFD) Page 2 of 2
HB273-DCCED-AMCO-02-16-2018 Page 2 of 2 Control Code: oLvHt


Statutes affected:
HB0273A, AM HB 273, introduced 01/16/2018, passed House 03/14/2018, passed Senate 04/15/2018: 44.66.010
HB0273Z, AM Enrolled HB 273, introduced 04/15/2018: 44.66.010