§ 12.50.220. Maintenance and inspection of documents and records.

A.

Every retailer subject to this chapter shall keep a complete and accurate record of all marijuana and marijuana products acquired and sold within the municipality by such person.

B.

It shall be the responsibility of the retailer to obtain and preserve evidence sufficient to support all acquisitions of marijuana and marijuana products and retail sale transactions and allowable deductions subject to this chapter, and all claimed exemptions from payment, collection, or remittance of the retail marijuana sales taxes under this chapter. Specification in this chapter of the records to be kept by a retailer shall not relieve the retailer of its responsibility to keep sufficient records. Unless a longer period is ordered by the chief financial officer under section 12.50.230 or a court of competent jurisdiction, a retailer shall keep and preserve all required records within the municipality for not less than three calendar years after the end of the calendar year in which such records are created and shall make available such records for inspections by the department upon request. Sufficient records shall include, but not necessarily be limited to:

1.

Each retail sale of marijuana or marijuana products within the municipality shall be recorded by the retailer and the record shall include, at minimum: the date of sale, the type of marijuana or marijuana product sold, the quantity of marijuana or marijuana products sold, the sales price, the amount of retail sales taxes due on the sale, and the amount and method of payment received. A comparable receipt of sale shall be offered to each consumer at the time of purchase;

2.

As applicable, all periodic statements and records from financial institutions provided to, or available to, the retailer for accounts in which retail marijuana sales taxes were deposited;

3.

As applicable, all periodic statements provided to the retailer from credit or debit card processors containing details of consumer payment transactions for retail sales or retail marijuana sales taxes;

4.

Books of account, journals, ledgers, and other compilations of source documents that reconcile to total retail sales and retail marijuana sales taxes collected as listed on the tax returns filed with the department under the authority of this chapter;

5.

Periodic inventory counts and maintenance of detailed inventory records. Detail must be subtotaled and distinguished between marijuana and marijuana products, which are to be further distinguished by type (i.e., products intended for consumption, such as, but not limited to, edible products, ointments, and tinctures);

6.

Marijuana and marijuana product acquisition data; and

7.

Sufficient documentation confirming eligibility under section 12.50.070.

C.

Persons subject to this chapter shall keep such other documents and records as the department prescribes.

D.

All records and documents required by this chapter to be kept or retained are subject to inspection within the municipality upon demand by the department.

E.

The chief fiscal officer or a designee, upon presentation of proper identification, may inspect the records which a person is required to maintain under this section, whether on-site or at an off-site location, or inspect the records of a person whom the chief fiscal officer has probable cause to believe is a retailer or a person subject to this chapter in order to determine whether that person is a retailer or is subject to this chapter.

1.

Upon notice of the department's intent to inspect records, a person or retailer subject to this chapter shall retain such records and preserve their availability to the department until released by the department in writing, regardless of whether such retention and preservation continues beyond the three-year period specified in this section.

2.

The chief fiscal officer's authority to inspect records shall not be limited to records within the three calendar year retention period. If a person subject to this chapter has possession or control of records described in this section that are older than the three-year period specified in this section, the person subject to this chapter shall make such records available for inspection upon request.

F.

The chief fiscal officer may enter the business premises of a retailer where marijuana or marijuana products are kept or stored, so far as it may be necessary for the purpose of examining such marijuana or marijuana products and the related business records.

G.

The department may inspect records required by this chapter of all responsible parties who had control of, or access to, funds collected from consumers of the retailer, and such persons shall be subject to the requirements of this section.

H.

Where the Constitution of the United States or of the State of Alaska so requires, the chief fiscal officer shall obtain an administrative search warrant authorizing an inspection and shall exhibit the warrant to the person in charge of the premises before conducting the inspection. The chief fiscal officer shall apply to the trial courts of the State of Alaska to obtain an administrative search warrant, stating in the application the name and address of the premises to be inspected, the authority to conduct the inspection, the nature and extent of the inspection, and the facts and circumstances justifying the inspection. Warrants issued under this section shall be returned to the court by which issued within ten days after the date issued.

( AO No. 2016-49(S), § 1, 5-10-16 )