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HomeMy WebLinkAboutOrdinance No. 2892-2016CITY OF KENAI ORDINANCE NO. 2892 -2016 Sponsored by: City Attorney AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE TITLE 2 - ALCOHOLIC BEVERAGES, TO ADD PROVISIONS FOR REVIEWING STATE COMMERCIAL MARIJUANA ESTABLISHMENT LICENSE APPLICATIONS AND MAKING OTHER HOUSEKEEPING CHANGES. 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 17.38; and, WHEREAS, Alaska Statute 17.38.2 10 states in part that "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 "; and, WHEREAS, on January 20, 2016, the City Council of the City of Kenai enacted an ordinance designating itself as the local regulatory authority for regulation of local marijuana establishments as provided for under Alaska Statute 17.38 and also enacted Planning and Zoning regulations; and, WHEREAS, State regulations provide, similar to liquor licenses, that a local municipality may protest a state application for a commercial marijuana establishment, or recommend its approval subject to certain conditions; and, WHEREAS, the State is beginning to process the first commercial marijuana licenses; and, WHEREAS, it is in the best interest of the City to amend Title 2 of the Kenai Muncipal Code which currently regulates alcohol and the processing of State liquor licenses, to include provisions for processing State commercial marijuana licenses. 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. Amendment of Title 2 of the Kenai Municipal Code: That Kenai Municipal Code, Title 2 - Alcoholic Beverages, is hereby amended as follows: Title 2 ALCOHOLIC BEVERAGES AND MARIJUANA New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2892 -2016 Page 2 of 4 Section 3. Amendment of Chanter 2.05 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 2.05 - Intoxicating Liquor Defined, is hereby amended as follows: 2.05 [INTOXICATING LIQUOR DEFINED] 2.05.010 Definitions. (a) [AS USED IN THIS TITLE,] "[I]Intoxicating [L]Liquor" includes but is not limited to whiskey, brandy, rum, gin, wine, ale, port, or beer, and all other spirituous, vinous iiialt, and other fermented or distilled liquors intended for human consumption and containing more than one percent (1 %) alcohol by volume. (b) "Mariivana" 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 Section 4. Amendment of Chapter 2.10 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 2.10 - Transfer of License, is hereby amended as follows: 2.10 TRANSFER OF [LIQUOR] LICENSE 2.10.030 Hearing Standards A hearing pursuant to this Code shall inquire into the manner of conduct of the premises licensed for liquor dispensary operation or commercial marijuana operation, and the Council may establish standards for the individual licensee in question, to be incorporated into a resolution, with respect to the premises which are the subject of the hearing in question to include, but not necessarily be limited to, the following: (a) Conduct of the business by the transferee or applicant and employees, as well as past conduct of the transferor; (b) Maintenance of health standards on the premises in question or any improvements to be required; (c) Set an amount of public liability insurance to apply to the licensed premises which shall carry reasonable limits consistent with industry standards[COMMONLY REFERRED TO AS NOT LESS THAN $20,000/100,000 OR SUCH OTHER HIGHER LIMITS AS MAY BE REQUIRED BY THE COUNCIL]; (d) Payment to the City of all taxes or obligations of the premises involved and limited to such premises; New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2892 -2016 Page 3 of 4 (e) A requirement that the operations of the premises shall be for a period of not less than nine (9) months out of each calendar year of operation; (fl A fmding that disorderly conduct has occurred on the premises at least three times in the course of any one particular calendar year —such violations to include instances where the licensee has failed to request assistance of the police in maintaining order; (g) And such other aspects of the proposed operation as would reasonably be a matter for public concern pursuant to the police powers of the City of Kenai, Alaska. Section 5. Amendment of Chanter 2.20 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 2.20 - Sales on Election Day, is hereby amended as follows: 2.20.010 Sales permitted. The provisions of AS 04.16.070 do not apply within the City of Kenai when elections are being held and intoxicating liquor and marijuana may be sold or otherwise disposed of within the City of Kenai on election days in the same manner and pursuant to the same regulations as on other days. Section 6. Amendment of Chapter 2.40 of the Kenai Municipal Code: That Kenai Municipal Code, Chapter 2.40 - Approval of an Activity of a Licensee, is hereby amended as follows: 2.40.010 Obligations to City. It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board and the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. 2.40.020 Approval by Council. The Council may approve a notice of non - objection for the issuance, transfer, or renewal of any license or permit issued by the Alcoholic Beverage Control Board or the Mariivana Control Board in the City of Kenai as long as the licensee(s) or permittee(s) has satisfied all obligations to the City or entered into a City approved payment plan with the Borough or City on any obligations owed to the City and the licensee(s) or permittee(s) is in compliance with such payment plan. If the licensee(s) or permittee(s) has an outstanding obligation to the City and a City approved payment plan has not been entered into, or if the licensee(s) or permittee(s) is not in compliance with the plan, the Council may cause a protest to be filed with the State Alcoholic Beverage Control Board or Mariivana Control Board. Section 7. 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 New Text Underlined; [DELETED TEXT BRACKETED] Ordinance No. 2892 -2016 Page 4 of 4 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 S. Effective Date: That pursuant to Kenai Municipal Code Section 1.15.070(f , this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 18th day of May, 2016. PAT PORTER, MAYOR Introduced: May 18, 2016 Enacted: June 1, 2016 Effective: July 1, 2016 New Text Underlined; [DELETED TEXT BRACKETED] M IlWlaye wdh a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 www.kenai.city MEMORANDUM TO: Mayor Porter and Council Members FROM: Scott M. Bloom, City Attorney DATE: May 9, 2016 SUBJECT: KMC Title 2, Marijuana License Ordinance No. 2892 -2016 On January 20, 2016, the City Council enacted an ordinance designating itself as the local regulatory authority for regulation of local marijuana establishments as provided for under Alaska Statute 17.38. This designation allows the City to collect a share of licensing fees and establishes the Council as the body to process State marijuana licenses at the local level after notification by the State. The State is currently processing the first commercial marijuana licenses. This Ordinance amends Title 2 of the City's Code which currently includes provisions for processing State liquor licenses, to include provisions for processing State marijuana licenses. This approach is consistent with the concept of treating marijuana like alcohol. Your consideration is appreciated.