Chapter 9.12
MARIJUANA REGULATION

Sections:

9.12.010    Definitions.

9.12.020    Purpose and scope of authority.

9.12.030    Prohibiting certain product manufacturing methods of marijuana concentrates.

9.12.040    Designation of local regulatory authority.

9.12.050    Prohibition of marijuana establishments without a valid state registration.

9.12.070    Cooperation with state marijuana board.

9.12.080    Licensing procedure.

9.12.010 Definitions.

Consume” means, in all conjugate forms, the act of ingesting, inhaling, or otherwise introducing marijuana into the human body.

Local regulatory authority” means the office or entity designated to process marijuana establishment applications by a local government.

Marijuana” means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. “Marijuana” does not include fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.

Marijuana concentrate” means the product created by extracting cannabinoids from marijuana.

Marijuana cultivation facility” means an entity registered to cultivate, prepare, and package marijuana and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.

Marijuana establishment” means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store.

Marijuana product manufacturing facility” means an entity registered to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.

Marijuana products” means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.

Marijuana testing facility” means an entity registered to analyze and certify the safety and potency of marijuana.

Public,” as used in AS 17.38.020 and 17.38.040 and as used in this chapter, means a place to which the public or a substantial group of persons has access and includes highways, rivers, lakes, transportation facilities, schools, places of amusement or business, parks, playgrounds, prisons, and hallways, lobbies and other parts of apartment houses and hotels not constituting rooms or apartments designated for actual residence. Notwithstanding the foregoing, a location with proper licensure in place and that is in compliance with applicable state law and regulation, borough ordinance, including borough licensure requirements, if any, and that is operating within the restrictions of such law and licensure is not a public place within the meaning of AS 17.38.020 and 17.38.040.

Retail marijuana store” means an entity registered to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities, and to sell marijuana and marijuana products to consumers. (Ord. 2015-12 § 2, 2015; Ord. 2015-09 § 2, 2015. 2004 Code § 9.17.020.)

9.12.020 Purpose and scope of authority.

A. Purpose. The purpose of this chapter is to provide for the municipal regulation of marijuana and marijuana establishments as allowed by state law. This chapter and the regulations related to marijuana establishments herein are adopted pursuant to the express authority granted by AS 17.38.110. This chapter and the regulations herein are intended to allow the borough to regulate marijuana and marijuana establishments within the broadest range of municipal control contemplated by state statute.

B. Local Control of Marijuana Establishments. The borough may by ordinance exercise local control of marijuana establishments within the broadest range of municipal control contemplated by state law, including the following types of local control:

1. Prohibit the operation of all or any type of marijuana establishments;

2. Regulate marijuana establishments in a manner more restrictive than state law;

3. Establish a local registration procedure for marijuana establishments;

4. Designate a local regulatory authority for the following purposes:

a. Receive half of the state registration application fee;

b. Receive a copy of each state registration application and provide input to the state on such application; and

c. Process applications for registration to operate a marijuana establishment within the borough and to issue registrations in the event that the state authority fails to process applications in accordance with AS 17.38.090 and 17.38.100; provided, that all such applications for registration must be processed within 90 days of receipt of the application or resubmitted application unless the application is not in compliance with ordinances and regulations and the applicant is so notified;

5. Establish a schedule of annual operating fees;

6. Regulate the time and manner of operations of marijuana establishments;

7. Regulate the number of marijuana establishments;

8. Regulate the manner in which marijuana and marijuana products may be displayed by a retail marijuana store; and

9. Establish civil penalties for violation of borough ordinance. (Ord. 2015-09 § 2, 2015. 2004 Code § 9.17.010.)

9.12.030 Prohibiting certain product manufacturing methods of marijuana concentrates.

Production of or attempting to produce a marijuana concentrate by a method of extraction using flammable or combustible chemicals including, but not limited to, butane, acetone, hexane, naphtha, ethanol, methanol, petroleum ether, and alcohol constitutes marijuana product manufacturing and is prohibited except where such marijuana extraction is authorized by state law or regulation, permit, license, or registration or where such marijuana extraction is authorized by borough ordinance, license, registration, or permit. (Ord. 2015-12 § 3, 2015. 2004 Code § 9.17.050.)

9.12.040 Designation of local regulatory authority.

The assembly of the Fairbanks North Star Borough is designated the local regulatory authority responsible for reviewing state registration applications and providing input to the state on such applications. (Ord. 2016-22 § 2, 2016. 2004 Code § 9.17.030.)

9.12.050 Prohibition of marijuana establishments without a valid state registration.

A person may not operate a marijuana establishment or engage in a business permitting the public consumption of marijuana on its premises without a valid, current state registration. (Ord. 2016-22 § 2, 2016. 2004 Code § 9.17.040.)

9.12.070 Cooperation with state marijuana board.

It is declared the policy of the Fairbanks North Star Borough to cooperate with and aid the Marijuana Control Board for the state of Alaska in determining the fitness of applicants requesting a transfer, renewal or issuance of a new marijuana license. (Ord. 2016-38 § 2, 2016.)

9.12.080 Licensing procedure.

A. Upon receipt of notice from the Marijuana Control Board for the state of Alaska of the Board’s receipt of an application or intent to approve the transfer, renewal or issuance of a new marijuana license:

1. The borough mayor or his authorized agent shall investigate to determine if the borough has an interest which can be protected by protesting the approval of the application for transfer, renewal or issuance of a new marijuana license by the state Board.

2. If the borough mayor or his authorized agent determines that an applicant has delinquent borough taxes or that the operation of the marijuana establishment in the proposed location violates the zoning code, he shall protest the application and provide written notice to the applicant, and so inform the borough assembly. The mayor shall request such protest be lifted if the basis for protest is remedied.

3. If the borough mayor determines that another interest of the borough can be protected by recommending conditions or protesting the granting of the application, he shall so inform the borough assembly and may bring forth conditions or a protest for the assembly’s consideration. The borough mayor shall ensure that a copy of the application and the investigation results are provided to the assembly in a timely manner but no later than 15 days before the final scheduled assembly meeting occurring during the protest time period.

4. Except as otherwise provided in this section, the borough clerk shall duly advertise and place the matter of the application upon the agenda for the next meeting of the borough assembly in order that citizens may express their desires as to whether or not the assembly should approve or protest the application or recommend that the license be issued, renewed, relocated or transferred with conditions. The applicant shall be provided notice of any recommendation to protest and allowed a reasonable opportunity to defend the application at the public hearing.

5. License renewals will be scheduled for public hearing only if the borough mayor or an assemblymember determines that an interest of the borough can be protected by recommending conditions or protesting the application.

B. Grounds for an assembly protest of an application include but are not limited to:

1. Whether the applicant has complied with conditions imposed by the state Marijuana Control Board;

2. Public health or safety, including pedestrian or vehicular traffic safety;

3. The character and public interests of the surrounding neighborhood;

4. The grounds specified in regulations of the state Marijuana Control Board;

5. Any other factors the assembly in its discretion determines relevant to the public interest.

C. The assembly, after public hearing and reasonable notice to the applicant of any grounds for protest, shall determine if a protest to the application is to be lodged with the Board. If a protest is lodged, the assembly must set out its reasons in a written protest filed with the Board and copied to the applicant within 60 days of receipt from the Board of notice of filing the application. The reasons stated by the assembly must be logical grounds for opposing the application or continued operation of the license and have a reasonable basis in fact. The protest may be based upon facts that render the particular application objectionable to the assembly, or may be based upon a general public policy. If based on a general public policy, the policy must have a reasonable basis in fact, may not be contrary to law, and may not be patently inapplicable to the particular application being protested. If a protest is lodged, the borough mayor and borough attorney are authorized to use any document or evidence necessary to advance effectively the position of the borough at any hearing before the state Marijuana Control Board.

D. The assembly, after public hearing, may recommend that a license be issued, renewed, or transferred with conditions.

E. In addition to the right to protest, the assembly may notify the Marijuana Control Board that the assembly has determined that a licensee has violated a provision of AS 17.38, a regulation adopted by the Board, or a condition imposed by the Board. (Ord. 2017-65 § 3, 2017; Ord. 2016-38 § 2, 2016.)