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AlaskaSB 20834th Legislature (2025-2026)SenateWALLET

AGRICULTURAL LAND; HEMP; STATE VEGETABLE

Sponsored By: Jesse Bjorkman (Republican)

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 3 benefits, 2 costs, 6 mixed.

New farm leases with plan requirements

Beginning July 1, 2026, Alaska offers agricultural leases lasting up to 20 years, with rent that may be below market. Applicants must provide farm and conservation plans, production timelines, proposed improvements, financial information, and qualifications. Leases must allow farmer and farm-worker housing that fits the approved plan. Renewals may last up to 20 years when leases remain in good standing and renewal serves the state’s interests. The director must give notice of renewal decisions. These leases are exempt from general auction or sealed-bid requirements; related state-land leases follow the new farm-lease rules and nonconflicting general disposal rules.

Farm tenants get a purchase option

Beginning July 1, 2026, qualifying farm tenants get the first option to buy when the state decides to sell. Tenants must have farmed the land for at least seven years and followed their lease. The state must also create a lease-purchase program. That program may credit part of lease payments toward the price for tenants who farmed during their tenancy. The law sets no credit amount and does not guarantee a sale.

Former hemp registrants get targeted relief

Beginning July 1, 2026, eligible former hemp registrants may apply for reinstatement without paying a renewal fee. They must have held valid registration between January 1, 2021, and December 31, 2025. Their registration must have lapsed solely because of state regulatory action between January 1, 2024, and December 31, 2025. The state cannot require these eligible people to destroy lawfully held hemp or hemp products that meet the amended testing standards.

Farm landowners face stronger covenant enforcement

Beginning January 1, 2027, Alaska can enforce permanent agricultural land covenants through civil lawsuits and fines. Fines may apply for failing to cooperate with a conservation district or prepare and carry out a required farm-development schedule. Violating a covered covenant can also trigger a fine. The state, a municipality, or a resident may bring a civil action, subject to notice and a six-year filing limit. Regulations set fine amounts; the law does not specify them.

Farm lease violations risk fines and cancellation

The commissioner may cancel a grazing lease when the land is not used for its authorized purpose. New agricultural leases may also be canceled when the land is not used for agriculture. Beginning July 1, 2026, the director may impose civil fines for violations of the agricultural leasing rules. Regulations must set fine amounts and enforcement procedures; the law gives no dollar amount.

Farmers can apply to buy state land

Alaska may invite applications to buy state farmland after a written finding that selling serves the state’s interests and public notice. The commissioner may set regional per-acre prices below market value. Applicants must provide farm, conservation, financial, and marketing plans, plus their qualifications. The state scores proposals for feasibility, value, stewardship, qualifications, and finances, and publishes applications, supporting materials, and evaluations. Sales are not guaranteed; an aggrieved applicant has 20 days after receiving notice of the finding to appeal.

Hemp growers can salvage some noncompliant crops

Hemp testing must follow federal methods and account for measurement uncertainty. Crops at or below 0.3% delta-9 THC by dry weight are compliant. Registered growers with crops above 0.3% through 1% may retain them for reconditioning, remediation, or conversion to nonintoxicating industrial use. Keeping those crops without taking one of those steps violates the law. Plants above 1% require a stop order and destruction, rather than remediation.

Qualifying hemp businesses get state tax relief

Beginning July 1, 2026, the state tax imposed by AS 43.61.010(a) does not apply to qualifying industrial hemp. Hemp must be produced under the law’s registration and compliance requirements. Products made from industrial hemp also qualify when compliant testing shows no more than 0.3% delta-9 THC by dry weight. The sources do not give a tax rate or dollar savings.

Hemp growers gain options with production limits

Registered hemp growers may use seeds, starts, clones, or cuttings and save seeds for future seasons. State rules must cover approved planting materials, postharvest testing, grower tiers, and prevention of unintended seed spread. Qualifying federal approvals or third-party certifications may be accepted without state grow-out trials. Certified or seed-purity production requires at least 1,000 meters of isolation; testing must reflect risk, with harvest allowed within 30 days after sampling and extensions for weather or good cause. Rules must also permit hemp manufacturing and retail sales.

Hemp growers get corrective steps and penalties

The state can use a corrective-action plan that provides written notice and a chance to fix hemp violations. The plan sets objective criteria for escalating to civil fines, suspension, or loss of registration. For unregistered production, stop-sale orders and violation notices are discretionary rather than mandatory. Repeated or knowing violations require notices and reports to the Marijuana Control Board and Department of Public Safety. Those agencies must also be notified when the state issues a violation notice under the registration law.

Hemp growers get savings and reporting rules

Hemp registration and renewal applicants must report acreage or estimated plant counts, but no longer submit the specified felony-related sworn statement. Registered micro-growers get reduced or waived application, registration, or renewal fees. They qualify by growing on less than one-quarter acre OR having fewer than 200 plants, including indoor or greenhouse crops. The state must give at least 10 days’ notice, up from three, before inspecting transfer records during business hours. In-state shipments between registered parties need no transport permit when accompanied by a certificate of analysis or other approved shipping papers.

Sponsors & Cosponsors

Sponsor

  • Jesse Bjorkman

    Republican • Senate

Cosponsors

  • Matt Claman

    Democratic • Senate

  • Mike Cronk

    Republican • Senate

  • Bill Elam

    Republican • House

  • Cathy Giessel

    Republican • Senate

  • James Kaufman

    Republican • Senate

  • Jesse Kiehl

    Democratic • Senate

  • George Rauscher

    Republican • Senate

  • Cathy Tilton

    Republican • Senate

  • Robert Yundt

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 94 • No: 46

Senate vote • 5/18/2026

CONCUR AM OF (H) Y17 N3

Yes: 17 • No: 3

House vote • 5/17/2026

AM NO 4 FAILED Y19 N21

Yes: 19 • No: 21

House vote • 5/17/2026

AM NO 5 FAILED Y19 N21

Yes: 19 • No: 21

House vote • 5/17/2026

PASSED Y39 N1

Yes: 39 • No: 1

Actions Timeline

  1. (S) EFFECTIVE DATE(S) OF LAW SEE CHAPTER

    8/11/2026Senate

  2. (S) LAW W/O GOVERNOR SIGNATURE 8/10 CHAPTER 60 SLA 26

    8/11/2026Senate

  3. (S) MANIFEST ERROR(S)

    7/27/2026Senate

  4. (S) 9:25 A.M. 7/23/26 TRANSMITTED TO GOVERNOR

    7/27/2026Senate

  5. (S) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/18/2026Senate

  6. (S) CONCUR AM OF (H) Y17 N3

    5/18/2026Senate

  7. (S) CONCUR MESSAGE READ AND TAKEN UP

    5/18/2026Senate

  8. (H) VERSION: HCS CSSB 208(RES) AM H

    5/17/2026House

  9. (H) TRANSMITTED TO (S) AS AMENDED

    5/17/2026House

  10. (H) CROSS SPONSOR(S): ELAM

    5/17/2026House

  11. (H) EFFECTIVE DATE(S) SAME AS PASSAGE

    5/17/2026House

  12. (H) PASSED Y39 N1

    5/17/2026House

  13. (H) READ THE THIRD TIME HCS CSSB 208(RES) AM H

    5/17/2026House

  14. (H) ADVANCED TO THIRD READING UC

    5/17/2026House

  15. (H) AM NO 5 FAILED Y19 N21

    5/17/2026House

  16. (H) AM NO 4 FAILED Y19 N21

    5/17/2026House

  17. (H) ...CHANGES TITLE OF LEGISLATION

    5/17/2026House

  18. (H) AM NO 3 ADOPTED UC

    5/17/2026House

  19. (H) AM NO 2 NOT OFFERED

    5/17/2026House

  20. (H) MOVED TO BOTTOM OF CALENDAR

    5/17/2026House

  21. (H) TITLE CHANGE: HCR 26

    5/17/2026House

  22. (H) ...CHANGES TITLE OF LEGISLATION

    5/17/2026House

  23. (H) AM NO 1 ADOPTED UC

    5/17/2026House

  24. (H) RES HCS ADOPTED UC

    5/17/2026House

  25. (H) READ THE SECOND TIME

    5/17/2026House

Bill Text

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