How to Open a Dispensary in Alaska

Overview

In 1998, 58% of Alaska voters approved Measure 8, a law which provides a legal defense to non-registered patients and those who can demonstrate adequate need to possess large quantities of medical marijuana. On November 4, 2014, 53% of voters approved Measure 2, also known as AS 17.38 or Alaska Marijuana Legalization Initiative, allowing for the regulation, production, sale, and use of marijuana for adult use. Alaska became the third state to legalize recreational marijuana. Measure 2 went into effect February 2015 and the first licensed recreational marijuana businesses were authorized to begin operations in Alaska in 2016.

Alaska’s Medical Marijuana program did not create provisions for medical dispensaries to be licensed or to operate legally.

Alaska’s Department of Health and Senior Services (DHSS) runs the Medical Marijuana Registry. For patients and/or caregivers, visit the DHSS website for application forms.

Available marijuana business License Types

The Marijuana Control Board does not limit the number of adult-use marijuana licenses it can issue at the state level. However, Measure 2, specifically, AS 17.38.110(b) states that local governments can restrict the time, place, manner and number of marijuana licenses. Check your local government to make sure of the local limit on where to open a dispensary or other marijuana business. Alaska’s adult-use marijuana industry includes six types of marijuana establishment licenses:

Standard Marijuana Cultivation Facilities
Limited Marijuana Cultivation Facilities
Marijuana Product Manufacturing Facilities
Marijuana Concentrate Manufacturing Facilities
Marijuana Testing Manufacturing Facilities
Retail Marijuana Store

Application Fees/Start up costs

Application Fees and Start up costs are listed on the Alcohol Marijuana Control Office (AMCO) website. AMCO accepts checks, cashier's checks and money orders for marijuana applications. Below you will find adult-use application fees and start up cost.

Adult-use Application and Admin Fees

New Application Fee- $1000
Transfer Application Fee- $1000
Renewal Application Fee- $600
Fingerprint Fee- $48.25 (per person)
Business Name Change Fee (MJ-13)- $250
Licensed Premises Diagram Change Fee (MJ-14)- $250
Operating Plan Change Fee (MJ-15)- $250
Proposed New Marijuana Product Fee (MJ-16)- $250 (per product)
Ownership Change Fee (MJ-17)- $250
Conversion Application Fee- $1000
Onsite Consumption Endorsement Application Fee- $1000
Onsite Consumption Endorsement Fee- $2000

Adult-use License Fees

Standard Marijuana Cultivation Facilities- $5,000
Limited Marijuana Cultivation Facilities- $1,000
Marijuana Product Manufacturing Facilities- $5,000
Marijuana Concentrate Manufacturing Facilities- $1,000
Marijuana Testing Manufacturing Facilities- $1,000
Retail Marijuana Store- $5,000

Adult-use Renewal Fees

Limited Marijuana Cultivation Facilities- $1,400
Marijuana Concentrate Manufacturing Facilities- $2,000
Marijuana Testing Facilities- $2,000
Standard Marijuana Cultivation Facilities- $7,000
Marijuana Product Manufacturing Facilities- $7,000
Retail Marijuana Store-$7,000

Get started today!

Required steps and supplemental forms need to be completed and submitted before the Alcohol & Marijuana Control Office will review, accept, and/or approve your application. View the required steps and supplemental forms here. Vertical integration is permitted. Only testing facility licensees may not hold other cannabis business licenses.

Licenses will be tied directly to the physical location for the business. Moving to a new location requires a new license application. There is no cap on the number of licenses that can be issued, or the number of licenses for a single individual or company. Alaska’s Medical Marijuana program did not create provisions for medical dispensaries to be licensed or to operate legally.

Alaska’s Medical Marijuana Industry

Qualifying Conditions

Alaska’s Department of Health and Senior Services (DHSS) runs the Medical Marijuana Registry. Patients must be diagnosed with one of the debilitating conditions below to qualify for medical marijuana use:

Cachexia, or wasting syndrome
Cancer
Chronic or severe pain
Glaucoma
HIV/AIDS
Multiple sclerosis
Persistent muscle spasms
Seizures, including those characteristic of epilepsy
Severe nausea

To apply, patients must obtain a signed physician’s statement and have received an examination in the 16 months prior to application. For patients and/or caregivers, visit the DHSS website for application forms.

History of Medical Marijuana in Alaska

Lieutenant Governor Kevin Meyer (R) signed the state’s approved regulations for onsite consumption on March 12, 2019. The laws went into effect April 11, 2019. The onsite consumption rules give each local government jurisdiction over its own county, and ability to decide its own onsite consumption regulations, such as prohibiting on-site use outright or to tighten restrictions, such as limiting consumption to vaporizing only.

Even though legalization of recreational marijuana occurred in 2014, Alaskans who have criminal histories pertaining to marijuana find themselves unable to currently get jobs, housing, or limitations in furthering their education. Senator Tom Begich (D) of Alaska introduced Senate Bill 8, last updated January 2019, which would make confidential the records of individuals who have been convicted of minor marijuana offenses, and no other type of offense or crime, limited to marijuana cases involving less than one ounce. In addition, the records would automatically be removed from courtviews and would also be removed from some background checks, if requested by the individuals, administered by the Department of Public Safety.

Before recreational marijuana became legal November 4, 2014, medical cannabis use was legalized in 1998 after voters approved the Alaska Medical Marijuana Initiative, or Measure 8, a bill that legalized medical cannabis use for qualifying individuals.

Alaska’s Department of Health and Senior Services (DHSS) runs the Medical Marijuana Registry. For patients and/or caregivers, visit the DHSS website for application forms. Alaska’s Medical Marijuana program did not create provisions for medical dispensaries to be licensed or to operate legally.

Estimated market size

The expected sales revenue is projected to hit $106,916,870 with an expected tax revenue of $23,789,003 by 2020. The forecast estimates marijuana sales to hit approximately 138 million U.S. dollars in Alaska in 2025.

how to start a marijuana business alaska

If you are just starting your marijuana business, the next best step is to start a Business Plan to help educate your team and be ready to apply for a marijuana business license. If you are ready to apply for a Marijuana Business License in Alaska, please Contact us or call our offices to set an appointment to get started. You can also select another State Opportunity, or fill out our Contact Form to discuss potential strategies such as Investment or Partnership Opportunities.