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HomeMy WebLinkAboutOrdinance No. 2871-2016Sponsored by: Council Member Molloy CITY OF KENAI ORDINANCE NO. 2871 -2016 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING KENAI MUNICIPAL CODE SECTION 1.10.080 - LOCAL REGULATORY AUTHORITY, DESIGNATING THE CITY COUNCIL AS THE LOCAL REGULATORY AUTHORITY FOR LOCAL REGULATION OF MARIJUANA ESTABLISHMENTS UNDER ALASKA STATUTE CHAPTER 17.38. WHEREAS, on November 4, 2014, the voters of the State of Alaska passed Ballot Measure 2, an Act to Tax and Regulate the Production, Sale, and Use of Marijuana, codified as Alaska Statute Chapter 17.38; and, WHEREAS, Alaska Statute 17.38.210. Local Control, provides in part, that a local government may designate a local regulatory authority responsible for approving applications submitted to operate marijuana establishments within the boundaries of the local government; and, WHEREAS, Alaska Statute 17.38.200. Marijuana Establishment Registrations, provides in part, that a copy of each application and one half of the state application fee for registration of a marijuana establishment shall be provided to the applicable local regulatory authority; and, WHEREAS, designating the City Council as the local regulatory authority allows the City Council to provide input to the State Marijuana Control Board on applications for local marijuana establishments, regulate the process itself should the state fail to implement timely regulations and affords the City the opportunity to collect one half of the applicable state application fees for marijuana establishments. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance Section 2. Enactment of Section 1. 10.080 of the Kenai Municipal Code: That Kenai Municipal Code, Section 1.10.080 - Local Regulatory Authority, is hereby enacted as follows: 1. 10.080 Local Regulatory Authority. The City Council is the local regulatory authority for regulation of local marijuana establishments under Alaska Statute Chapter 17.38 and any implementing regulations. New Tent Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2871 -2016 Page 2 of 2 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(fl, this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of January, 2016. T. 6 S Iodigh, l,ity Clerk A. 1:5� PAT PORTER, MAYOR Introduced: January 6, 2016 Enacted: January 20, 2016 Effective: February 19, 2016 New Text Underlined; DELETED TEXT BRACKETED] "Viliaye with a Past, C# with a Future fl 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 MEMORANDUM 111111 1992 TO: Mayor Porter, City Council Members, Student Representative FROM: Council Member Molloy DATE: December 29, 2015 SUBJECT: Ordinance No. 2871 -2016: Designating The City Council As The Local Regulatory Authority For Local Regulation Of Marijuana Establishments Alaska Statute 17.38.200(c), codifying part of State of Alaska's 2014 Ballot Measure 2, an Act to Tax and Regulate the Production, Sale, and Use of Marijuana, provides that "upon receiving an application or renewal application for a marijuana establishment, the board shall immediately forward a copy of each application and half of the registration application fee to the local regulatory authority for the local government in which the applicant desires to operate the marijuana establishment, unless the local government has not designated a local regulatory authority pursuant to AS 17.38.210(c)." Alaska Statute 17.38.210(c) allows a local government to designate a local regulatory authority that is responsible for regulation of local marijuana establishments. As authorized by these statutes, Ordinance 2871 -2016 enacts a new code section — KMC 1.10.080 -- designating the Kenai City Council to be "the local regulatory authority for regulation of local marijuana establishments under Alaska Statute Chapter 17.38 and any implementing regulations." If enacted, this ordinance will ensure not only that City of Kenai receives notice of each application, but also that the City receives a copy of each application, the City Council has the opportunity to comment, and the City receives half of each application fee for each applicant who plans to operate a commercial marijuana establishment within the City of Kenai. Receipt of half of the revenue from applications will contribute to funding of costs that the City may incur from regulation of commercial marijuana establishments within the City of Kenai. Copies of these two statutes are in the packet, for your information and in case you have questions for the City Attorney. Your support of this ordinance is respectfully requested. AS § 17.38.200 Formerly cited as 17.38.100 § 17.38.200. Marijuana establishment registrations (a) Each application or renewal application for a registration to operate a marijuana establishment shall be submitted to the board. A renewal application may be submitted up to 90 days prior to the expiration of the marijuana establishment's registration. (b) The board shall begin accepting and processing applications to operate marijuana establishments one year after February 24, 2015. (c) Upon receiving an application or renewal application for a marijuana establishment, the board shall immediately forward a copy of each application and half of the registration application fee to the local regulatory authority for the local government in which the applicant desires to operate the marijuana establishment, unless the local government has not designated a local regulatory authority pursuant to AS 17.38.210(c). (d) Within 45 to 90 days after receiving an application or renewal application, the board shall issue an annual registration to the applicant unless the board finds the applicant is not in compliance with regulations enacted pursuant to AS 17.38.190 or the board is notified by the relevant local government that the applicant is not in compliance with ordinances and regulations made pursuant toAS 17.38.210 and in effect at the time of application. (e) If a local government has enacted a numerical limit on the number of marijuana establishments and a greater number of applicants seek registrations, the board shall solicit and consider input from the local regulatory authority as to the local government's preference or preferences for registration. (f) Upon denial of an application, the board shall notify the applicant in writing of the specific reason for its denial. (g) Every marijuana establishment registration shall specify the location where the marijuana establishment will operate. A separate registration shall be required for each location at which a marijuana establishment operates. (h) Marijuana establishments and the books and records maintained and created by marijuana establishments are subject to inspection by the board. (i) A marijuana establishment may not be registered under this chapter if a person who is an owner, officer, or agent of the marijuana establishment has been convicted of a felony and either (1) less than five years have elapsed from the time of the person's conviction; or (2) the person is currently on probation or parole for that felony. AS § 17.38.210 Formerly cited as 17.38.110 § 17.38.210. Local control (a) A local government may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or by a voter initiative. (b) A local government may enact ordinances or regulations not in conflict with this chapter or with regulations enacted pursuant to this chapter, governing the time, place, manner, and number of marijuana establishment operations. A local government may establish civil penalties for violation of an ordinance or regulation governing the time, place, and manner of a marijuana establishment that may operate in such local government. (c) A local government may designate a local regulatory authority that is responsible for processing applications submitted for a registration to operate a marijuana establishment within the boundaries of the local government. The local government may provide that the local regulatory authority may issue such registrations should the issuance by the local government become necessary because of a failure by the board to adopt regulations pursuant to AS 17.38.190 or to accept or process applications in accordance with AS 17.38.200. (d) A local government may establish procedures for the issuance, suspension, and revocation of a registration issued by the local government in accordance with (f) of this section or (g) of this section. These procedures shall be subject to all requirements of AS 44.62 (Administrative Procedure Act). (e) A local government may establish a schedule of annual operating, registration, and application fees for marijuana establishments, provided, the application fee shall only be due if an application is submitted to a local government in accordance with (f) of this section and a registration fee shall only be due if a registration is issued by a local government in accordance with (f) of this section or (g) of this section. (f) If the board does not issue a registration to an applicant within 90 days of receipt of the application filed in accordance with AS 17.38.200 and does not notify the applicant of the specific, permissible reason for its denial, in writing and within such time period, or if the board has adopted regulations pursuant to AS 17.38.190 and has accepted applications pursuant to AS 17.38.200 but has not issued any registrations by 15 months after the effective date of this Act, the applicant may resubmit its application directly to the local regulatory authority, pursuant to (c) of this section, and the local regulatory authority may issue an annual registration to the applicant. If an application is submitted to a local regulatory authority under this subsection, the board shall forward to the local regulatory authority the application fee paid by the applicant to the board upon request by the local regulatory authority. (g) If the board does not adopt regulations required by AS 17.38.190, an applicant may submit an application directly to a local regulatory authority after one year after February 24, 2015 and the local regulatory authority may issue an annual registration to the applicant. (h) A local regulatory authority issuing a registration to an applicant shall do so within 90 days of receipt of the submitted or resubmitted application unless the local regulatory authority finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to (b) of this section in effect at the time the application is submitted to the local regulatory authority. The local government shall notify the board if an annual registration has been issued to the applicant. (i) A registration issued by a local government in accordance with (f) of this section or (g) of this section shall have the same force and effect as a registration issued by the board in accordance with AS 17.38.200. The holder of such registration shall not be subject to regulation or enforcement by the board during the term of that registration. (j) A subsequent or renewed registration may be issued under (f) of this section on an annual basis only upon resubmission to the local government of a new application submitted to the board pursuant to AS 17.38.200. (k) A subsequent or renewed registration may be issued under (g) of this section on an annual basis if the board has not adopted regulations required by AS 17.38.190 at least 90 days prior to the date upon which such subsequent or renewed registration would be effective or if the board has adopted regulations pursuant to AS 17.38.190 but has not, at least 90 days after the adoption of such regulations, issued registrations pursuant to AS 17.38.200. (n Nothing in this section shall limit such relief as may be available to an aggrieved party under AS 44.62 (Administrative Procedure Act).