Chapter 5.20
REGULATION OF ALCOHOLIC BEVERAGES AND MARIJUANA

Sections:

5.20.010    Definitions.

5.20.015    Limits and prohibition of marijuana establishments.

5.20.020    Hours of operation.

5.20.030    Sales on election days.

5.20.040    Premises to be inspected.

5.20.050    City council review of issuance, renewal or transfer of licenses.

5.20.060    Penalty for violation.

5.20.010 Definitions.

As used in this chapter, unless the context otherwise requires:

“Alcoholic beverage” shall have the meaning set forth in AS 04.21.080.

“Licensed premises” in respect to alcoholic beverages shall have the meaning set forth in AS 04.21.080 and in respect to marijuana shall mean any or all portions of a building or structure, rooms or enclosures in the building or structure, or real estate leased, used, controlled or operated by a licensee in the conduct of a marijuana establishment for which the licensee is licensed by the Marijuana Control Board.

“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 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.

“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. 1812 § 1, 2016; Ord. 1782 § 1, 2014. Code 1962 § 2-1)

5.20.015 Limits and prohibition of marijuana establishments.

There shall be no more than two retail marijuana stores and no more than two marijuana cultivation facilities within the boundaries of the city. There shall be no marijuana product manufacturing facilities within the boundaries of the city. (Ord. 1863 § 1, 2018; Ord. 1827 § 1, 2016)

5.20.020 Hours of operation.

(a)    A person may not sell, offer for sale, give, furnish, deliver, or consume an alcoholic beverage on premises licensed under AS Title 4 or marijuana on premises licensed as a marijuana retail store between the hours of 2:00 a.m. and 8:00 a.m. each day.

(b)    A licensee, an agent or employee may not permit a person to consume alcoholic beverages on the licensed premises licensed under AS Title 4 or marijuana on premises licensed as a marijuana retail store between the hours of 2:00 a.m. and 8:00 a.m. each day.

(c)    A licensee, an agent, or employee may not permit a person to enter and a person may not enter premises licensed under AS Title 4 or premises licensed as a marijuana retail store between the hours of 2:00 a.m. and 8:00 a.m. each day. This subsection does not apply to common carriers or to an employee of the licensee who is on the premises to prepare for the next day’s business. A person may enter or remain on the premises of a bona fide restaurant operating place licensed under AS Title 4 to consume food or nonalcoholic beverages. (Ord. 1812 § 1, 2016; Ord. 1782 § 8, 2014; Ord. 1261 § 1, 1993; Ord. 705 § 1, 1968. Code 1962 § 2-10. Formerly 5.20.080)

5.20.030 Sales on election days.

The provisions of AS 04.16.070 shall not be applicable within the corporate limits when elections are being held. (Ord. 1812 § 1, 2016; Ord. 1782 § 9, 2014; Ord. 764 § 1, 1972; Ord. 655 § 1, 1964. Formerly 5.20.090)

5.20.040 Premises to be inspected.

Upon receipt of notification from the Alcoholic Beverage Control Board or the Marijuana Control Board that the Board has before it an application for the issuance, renewal or transfer of an alcoholic beverage license or marijuana establishment license, the city clerk shall notify the city fire inspector who shall inspect the proposed licensed premises and report the findings to the council. The applicant or other person in control of the premises shall permit such inspection at a reasonable time and upon reasonable notice. Until the report has been received by the council, the council will take no action which will waive its right to protest the application. (Ord. 1812 § 1, 2016; Ord. 1782 § 12, 2014; Ord. 1431, 2000. Formerly 5.20.120)

5.20.050 City council review of issuance, renewal or transfer of licenses.

(a)    Upon receipt of notification from the Alcoholic Beverage Control Board or the Marijuana Control Board that the Board has before it an application for the issuance, renewal or transfer of an alcoholic beverage license or marijuana establishment license, the council shall determine whether to protest the proposed action and shall consider such of the following facts as the council believes are pertinent:

(1)    The character and public interests of the surrounding neighborhood;

(2)    The actual and potential law enforcement problems, including the proximity of the premises to law enforcement stations and patrols;

(3)    The concentration of other licenses of the same and other types in the area;

(4)    In respect to an alcoholic beverage license whether the surrounding area experiences an unacceptable rate of alcohol abuse, or of crime or accidents in which alcohol is involved as a cause or in respect to a marijuana establishment license whether the surrounding area experiences an unacceptable rate of marijuana abuse, or of crime or accidents in which marijuana is involved as a cause;

(5)    The comments and objections, if any, of the residents, owners, and inhabitants of the surrounding area;

(6)    The adequacy of parking facilities;

(7)    Unsafe conditions at the licensed premises, including, but not limited to, the safety of ingress to and/or egress from the premises;

(8)    Whether the applicant has timely permitted the inspection provided for under KMC 5.20.040 and whether the premises complies with local, state, and federal fire, health and other safety codes;

(9)    The degree of control the licensee has, or proposes to have, over the conduct of the licensed business;

(10)    The history of convictions of the applicants and affiliates of the applicants for:

(A)    Any felony,

(B)    Any criminal violation of state or local statute or regulation involving use or abuse of alcohol, marijuana or a controlled substance,

(C)    In respect to an alcoholic beverage license any violation of AS Title 4 or regulations adopted by the Alcoholic Beverage Control Board, or in respect to a marijuana establishment any violation of AS Title 17 or regulations adopted by the Marijuana Control Board,

(D)    In respect to an alcoholic beverage license any violation of the alcoholic beverage control laws of another state as a licensee of that state or in respect to marijuana establishment license any violation of the marijuana control laws of another state as a licensee of that state;

(11)    Whether the applicant or the applicant’s affiliates are untrustworthy, unfit to conduct a licensed business, or constitute a potential source of harm to the public;

(12)    The business operated under the license is, on the date the council considers the application, delinquent in the payment of any sales tax or penalty or interest on sales tax arising out of the operation of the licensed premises;

(13)    Whether there are delinquent property taxes or local improvement district assessments or penalties or interest thereon arising out of real or personal property taxes or local improvement district assessments or penalties or interest thereon arising out of real or personal property owned in whole or in part by any person named in the application as an applicant where such property is used, or is to be used, in whole or in part in the business conducted or to be conducted under the license;

(14)    Whether there are any delinquent charges or assessments owing the city by the licensee for a municipal service provided for the benefit of the business conducted under the license or for a service or an activity provided for the benefit of the business conducted under the license or for a service or an activity provided or conducted by the city at the request of or arising out of an activity of the business conducted under the license;

(15)    Whether the business to be opened under the license would violate the zoning code of the borough;

(16)    If an application is for a tourism license under AS 04.11.400(d), then:

(A)    The city will protest any application based on construction of a new tourist facility unless the construction will include at least 30 rooms,

(B)    The council will protest any application for a new tourism beverage dispensary license based on an improvement to an existing tourist facility of at least 30 rooms unless the improvements will result in at least a 50 percent increase in the assessed or appraised valuation compared to the value of the original tourist facility,

(C)    The council, in addition to the requirements of subsections (a)(16)(A) and (B) of this section, as applicable, will require the applicant to show by convincing evidence that issuance of an additional beverage dispensary license to a tourist facility will, in fact, encourage tourism in the city. The applicant must prove that tourism will constitute a majority of the business of the beverage dispensary license;

(17)    The numerical limitation on retail marijuana stores under KMC 5.20.015.

(18)    Any other factors the council determines are generally relevant or relevant to a particular application or to the public interest.

(b)    If council decides to protest the issuance, renewal or transfer of a license it shall state the basis of the protest and the applicant shall be notified of such decision and shall be afforded an abbreviated and informal hearing before the council to defend the application. At the conclusion of the hearing the council decision to protest the application shall stand unless a majority of the council votes to withdraw the protest. (Ord. 1827 §§ 2, 3, 2016; Ord. 1812 § 1, 2016; Ord. 1782 § 12, 2014; Ord. 1431, 2000; Ord. 1061 § 1, 1985. Formerly 5.20.130)

5.20.060 Penalty for violation.

Any licensee, owner, manager, or employee of any kind of a marijuana establishment or where alcoholic beverages are sold, vended, served, or furnished, or any other person who shall violate any of the provisions of this chapter, shall be guilty of a violation, and upon conviction, shall be punished according to KMC 1.02.030. (Ord. 1812 § 1, 2016; Ord. 1782 § 13, 2014. Code 1962 § 2-13. Formerly 5.20.140)