Chapter 5.02
MARIJUANA BUSINESSES

Sections:

5.02.005    Local regulatory authority.

5.02.010    Prohibitions.

5.02.020    Cooperation with State Marijuana Control Board.

5.02.030    State license renewal procedure.

5.02.040    New state license and transfer procedure.

5.02.050    Borough license for marijuana businesses – General.

5.02.060    Issuance of borough license for marijuana businesses.

5.02.070    Renewal of borough license for marijuana businesses.

5.02.080    Ownership change and transfer of borough license for marijuana businesses.

5.02.090    Suspension or revocation of license.

5.02.100    Fees.

5.02.005 Local regulatory authority.

A. The Kodiak Island Borough assembly is the local regulatory authority for the regulation of marijuana establishments in all areas of the borough outside of cities as provided by AS 17.38 and any implementing regulations.

B. The assembly is authorized to provide comments to the State of Alaska Marijuana Control Board regarding any application for a license to operate any marijuana establishment within the Kodiak Island Borough, consistent with the standards set forth at AS 17.38 and 3 AAC 306. [Ord. FY2017-28 §2, 2017].

5.02.010 Prohibitions.

The commercial manufacture or sale of edible marijuana products as defined by state law is prohibited. [Ord. FY2017-27 §2, 2017].

5.02.020 Cooperation with State Marijuana Control Board.

It is declared the policy of the 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 business license. [Ord. FY2017-27 §2, 2017].

5.02.030 State license renewal procedure.

A. Upon receipt of notice from the Marijuana Control Board of the Board’s receipt of intent to approve the renewal of a marijuana business license:

1. The clerk shall investigate to determine if the borough has an interest which can be protected by protesting the approval of the application for renewal; and

2. The clerk shall check with the Kodiak Police Department and Alaska State Troopers on the number of trouble reports at the place of business.

B. If the clerk determines that the borough has no interest in protesting the renewal, the clerk shall advise the Marijuana Control Board of continued nonobjection to renewal in writing. If it is determined that the renewal could be protested based on unpaid taxes or trouble reports, it shall be scheduled for review by the borough assembly. [Ord. FY2017-27 §2, 2017].

5.02.040 New state license and transfer procedure.

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

1. The clerk shall investigate to determine if the borough has an interest which can be protected by protesting the approval of the application for transfer or issuance of a new marijuana business license;

2. The clerk shall check with the State Troopers on the number of trouble reports at the place of business;

3. The clerk shall duly advertise and place the matter of the application upon the agenda for the next meeting of the assembly in order that citizens may express their desires as to whether or not the assembly should approve or protest the transfer or issuance of the marijuana business license; and

4. The notice of intent to establish a new marijuana business license or transfer of location of an existing license shall be mailed to each landowner within 1,500 feet of the proposed location by the clerk. A transfer from one person to another of a marijuana business license, even if the location stays the same, shall be considered a request for a new marijuana business license by the Kodiak Island Borough. The applicant shall pay fees based on the adopted schedule of fees.

B. The assembly, after public hearing, shall determine by motion if a protest to the application is to be lodged with the Alaska Marijuana Control Board. If a protest is lodged, the manager and attorney are authorized to use any document or evidence necessary to effectively advance the position of the borough at any hearing before the Alaska Marijuana Control Board. [Ord. FY2017-27 §2, 2017].

5.02.050 Borough license for marijuana businesses – General.

A. A license required by this chapter is in addition to any other license required by law.

B. A license issued by the borough shall include:

1. The name and address of the licensee;

2. The type of business to be conducted;

3. The address at which the business is conducted;

4. A license number; and

5. The year for which the license is issued.

C. The finance director may refuse to issue a license if there is reasonable cause to believe that the applicant has willfully withheld information or if there is reasonable cause to believe that information submitted in the application is false, misleading, or otherwise not made in good faith.

D. A license issued under this chapter shall be prominently displayed at the licensee’s place of business.

E. A business whose license is lost, stolen, or defaced shall immediately file an application with the finance department for reissuance of the license for the balance of the unexpired year. [Ord. FY2017-27 §2, 2017].

5.02.060 Issuance of borough license for marijuana businesses.

A. Marijuana businesses are required to obtain a license from the borough finance department. In order to obtain this license an application must:

1. Complete a licensing application form provided by the finance department;

2. Provide proof of initial zoning compliance, issued per KIBC 17.15.060;

3. Provide a copy of the state of Alaska marijuana business license issued by the Alaska Marijuana Control Board;

4. Provide a copy of the certificate(s) of registration for marijuana-specific taxes imposed in applicable jurisdictions; and

5. Pay licensing fee per KIBC 5.02.100. [Ord. FY2017-27 §2, 2017].

5.02.070 Renewal of borough license for marijuana businesses.

A. Marijuana businesses are required to renew their marijuana business license annually with the finance department. In order to renew their license a marijuana business must:

1. Provide a copy of the state of Alaska marijuana business license renewal issued by the Alaska Marijuana Control Board; and

2. Pay license renewal fee per KIBC 5.02.100.

B. Marijuana business license renewal must occur prior to August 31st each calendar year. On or before June 30th each year, the finance director shall send written renewal notices to licensees at the address on file with the finance department.

C. A licensee is not excused from filing a renewal application as required in this section, even if the licensee fails to receive a renewal notice from the finance director.

D. Exceptions to subsection B of this section may be made on a case by case basis, based on the status of the marijuana business’s license renewal application with the Alaska Marijuana Control Board. [Ord. FY2017-27 §2, 2017].

5.02.080 Ownership change and transfer of borough license for marijuana businesses.

A. A license under this chapter is not transferable and expires on the date of an ownership change.

B. Transferors must surrender all licenses not later than five days after the effective date of an ownership change.

C. Transferees must obtain a license per KIBC 5.02.060. Transferees must provide proof of conveyed interest. [Ord. FY2017-27 §2, 2017].

5.02.090 Suspension or revocation of license.

A. A licensee shall surrender a license within five days after:

1. A revocation of license;

2. A cessation of business;

3. A change of ownership; or

4. A change of place of business.

B. The finance director may suspend or revoke a license under this chapter:

1. For violation of this chapter or a regulation of the borough adopted pursuant to this chapter; or

2. If a licensee ceases to act in the capacity for which the license was issued.

C. No marijuana business whose license is suspended or revoked shall operate during suspension of revocation. No disciplinary proceeding or action is barred or abated by the expiration, surrender, or renewal of a license issued under this chapter.

D. The borough clerk will inform the Alaska Marijuana Control Board of a licensee’s failure to pay tax due or to file a return as required by KIBC 3.70.050 and will initiate license suspension or revocation proceedings by filing an accusation as provided in AS 17.38.090. [Ord. FY2017-27 §2, 2017].

5.02.100 Fees.

A. A part of the costs for processing marijuana business licenses shall be covered by a fee payable to the borough and shall be paid at the time of licensing. These fees will be established annually by resolution of the assembly.

B. The finance director shall not refund any license fee paid pursuant to this chapter upon the surrender or revocation of a license after the beginning of the license year, with the exception that upon application, the finance director will refund a license fee shown to have been paid or collected in error. [Ord. FY2017-27 §2, 2017].