If enacted, the bill would set rules for hemp growers and products, allow some growers to keep and treat lower-THC crops, and exempt qualifying hemp from a state tax.
The natural resources commissioner would set rules for growing, testing, and selling industrial hemp. Growers could receive notice and a chance to fix violations before stronger enforcement.
Registered growers could try to make hemp testing between 0.3% and 1% THC usable. Hemp above 1% THC would have to be destroyed.
Some growers whose registrations lapsed because of department action in 2024 or 2025 could apply to restore them without a renewal fee, if they held a valid registration during 2021–2025.
Compliant industrial hemp and products made from it would be exempt from the tax described in state law. Products must test at no more than 0.3% THC.
The natural resources commissioner would adopt rules for industrial hemp, including testing, sales, transportation, and enforcement. The rules cover industrial hemp production and may permit manufacturing and retail sales of hemp and hemp products. Rules would allow certain certified seed sources without department grow-out trials and could allow testing by accredited labs and samplers. The commissioner would set up steps for notice and a chance to fix a violation before escalating enforcement; rules could scale requirements by grower size and risk. The bill states that it would take effect July 1, 2026.
Registered growers could keep and recondition, remediate, or convert hemp testing between 0.3% and 1% THC. This applies to people registered under the industrial hemp program. THC levels are measured on a dry-weight basis. Growers who keep the hemp must recondition, remediate, or convert it; failing to do so would be a violation. Hemp testing above 1% THC would have to be destroyed and could not be transferred except to be destroyed. The bill states that it would take effect July 1, 2026.
Some growers whose registrations lapsed solely because of department action could apply to have them restored without a renewal fee. This option applies to industrial hemp registrants meeting the stated registration and lapse dates. Applicants must have held a valid registration at some point from January 1, 2021, through December 31, 2025, and their registration must have lapsed solely because of department action from January 1, 2024, through December 31, 2025. The department could not require destruction of qualifying hemp or hemp products if they meet the stated testing standards. The reinstatement option applies to registrations and department actions within the date ranges stated above.
The tax described in AS 43.61.010(a) would not apply to compliant industrial hemp or qualifying products made from it. The provision covers industrial hemp produced in compliance with the state hemp law and qualifying products made from that hemp. Hemp products qualify only if they contain no more than 0.3% delta-9 THC on a dry-weight basis, as determined by testing that meets the stated requirements. The bill states that it would take effect July 1, 2026.
No hearings or votes scheduled.