Jun 2022
3 min

Alaska Dispensary Ownership Rules


In Alaska, individuals must meet the following criteria in order to qualify as a cannabis business license holder:

  • Clean Criminal History

Owners must not have been found guilty of crimes including selling alcohol without a license, selling alcohol to an individual under 21 years of age, a misdemeanor crime involving a controlled substance, violence against a person, use of a weapon, or dishonesty within the preceding five years, has, within two years before submitting an application, been convicted of a class A misdemeanor relating to selling, furnishing, or distributing marijuana or operating an establishment where marijuana is consumed illegally.

  • Qualified Ownership Entities

Owners may be individual, LLC, LLP, Corporation, partnership or local government.

  • Proof of Residency

All owners must be residents of the state of Alaska

  • Disclose Financial Interests

Anyone with a direct or indirect financial interest in the cannabis license must be listed as an owner and complete the application procedures required for ownership.

Owners must also provide the information required on dispensary license application forms in Alaska

  • Fingerprints
  • Name
  • Mailing Address
  • Social Security Number
  • Telephone Number
  • Business Name the applicant will use for the proposed cannabis business
  • At least 21 years of age

Why is this important?

It's important to know the requirements for ownerships of a cannabis dispensary in Alaska so that you can put together a team of owners who qualify for licensing.  Having a team member who does not qualify for licensing could cause denial of licensure and delays in your license application.

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Regulatory Citations for This Article

3 AAC 306.015. License conditions
(a) The board will issue each marijuana establishment license to a specific individual, to a partnership, including a limited partnership, to a limited liability company, to a corporation, or to a local government. A person other than a licensee may not have a direct or indirect financial interest in the business for which a marijuana establishment license is issued.

(b) Except as allowed in 3 AAC 306.035(h), the board will not issue, renew, or transfer a marijuana establishment license to

(1) an individual or a sole proprietorship unless the individual or proprietor is a resident of the state;

(2) a partnership unless each partner is a resident of the state;

(3) a limited liability company unless the limited liability company is qualified to do business in the state and each member of the limited liability company is a resident of the state; or

(4) a corporation unless the corporation is incorporated or qualified to do business in the state and each shareholder is a resident of the state.

(c) The board will issue each license for a specific location identified on the license as the licensed premises. A marijuana establishment must have a right to possession of its licensed premises at all times, and may not lease its licensed premises to another person for any reason. If a marijuana establishment wishes to reduce or expand the area of the licensed premises used for a marijuana establishment, the marijuana establishment must submit a new line drawing showing the proposed changes to the premises, and must obtain the board’s written approval. A marijuana establishment may not relocate its licensed premises to a different place without obtaining a license for the new premises as required under 3 AAC 306.050.

(d) The board will impose other conditions or restrictions on a license or endorsement issued under this chapter when it finds that it is in the interests of the public to do so.

(e) In this section,
(1) "direct or indirect financial interest" means

           (A) a legal or equitable interest in the operation of a business licensed under this chapter;

           (B) does not include a person's right to receive
                       (i) rental charges on a graduated or percentage lease-rent agreement for real estate leased to a licensee; or
                       (ii) consulting fee from a licensee for services that are allowed under this chapter;

(2) "resident of the state" means a person who is eligible at the time of application for the most recent permanent fund dividend under AS 43.23. (Eff. 2/21/2016, Register 217; add'l am 2/21/2016, Register 217; am 2/21/2019, Register 229; am 4/11/2019, Register 230)

3 AAC 306.020. Application for new license

(a) An applicant for a new marijuana establishment license must file an application as provided in 3 AAC 306.025, on a form the board prescribes, with the information and documents described in this section, along with the application fee and the annual license fee set out in 3 AAC 306.100, and the fingerprint cards and fees required by 3 AAC 306.055(a). The application must be initiated electronically; the completed application and fees may be filed electronically, or mailed or delivered to the director at the office of the board.

(b) An application for a new marijuana establishment license must include
           (1) the name of the applicant and any business name the applicant will use for the

           proposed marijuana establishment, along with the applicant's state business license number issued under AS 43.70;

           (2) the name, mailing address, telephone number, and social security number of each proposed licensee