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2017-03-30 Work SessionPage Kodiak Island Borough Assembly Work Session Thursday, March 30, 2017, 6:30 p.m. Borouah Conference Room Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen's comments at work sessions are NOT considered part of the official record. Citizen's comments intended for the "official record" should be made at a regular Assembly meeting. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker) 2. AGENDA ITEMS 3-20 a. US Department of Defense "Northern Edge '17" Resolution Northern Edge Discussion 21 -179 b. Amending KIBC Chapters 3, 5, And 17 To Include Regulations For Marijuana Businesses Discussion Ordinance No FY2017-27 and Backup - Pdf 180-186 C. Proposed RFP For Project Design And Management Services To Prepare Mining Plans And Obtain Regulatory Approvals For Aggregate Mines In The Salonie Creek Drainage And Chiniak Salvage Timber Harvest Tract Proposed RFP Project Design Mining Plans - Pdf 187-215 d. Accessory Dwelling Unit Discussion ADU Brief - Pdf PACKET REVIEW PUBLIC HEARING Ordinance No. FY2017-28 Enacting A New Kodiak Island Borough Code Section Within Title 5, Marijuana Businesses, 5.02.005, Local Regulatory Authority, To Designate The Borough Assembly As The Local Regulatory Authority For The Kodiak Island Borough, Pursuant To AS 17.38.210. NEW BUSINESS CONTRACTS Ninety (90) Day Extension Of Lease Agreement For Building Complex Leased To Providence Health & Services -Washington DBA Providence Kodiak Island Counseling Center. Visit our website at www.facebook.com/Kodiakislandborouqh © @KodiakBorough www.kodiakak.us Pagel of215 Ninety (90) Day Extension Of Hospital Lease With Providence Health System - Washington d/b/a Providence Health System In Alaska. Contract No. FY2017-18 Auditing Services For The Kodiak Island Borough And The Kodiak Island Borough School District For Fiscal Years 2017-2021. RESOLUTIONS Resolution No. FY2017-34 A Resolution Of The Assembly Of The Kodiak Island Borough In Support Of Changes To Timing And Location Of The US Department Of Defense "Northern Edge '17" Training Exercise, And Subsequent Operations, In The Gulf Of Alaska. ORDINANCES FOR INTRODUCTION Ordinance No. FY2017-21 Amending Chapters 17.25 KIBC (Definitions), 17.160 KIBC (Accessory Buildings), And Related Chapters Of Title 17, Zoning To Include Development Standards For Accessory Dwelling Units And To Specifically List Accessory Dwelling Units As A Permitted Use In Certain Residential Zoning Districts (P&Z Case No. 16-007). Ordinance No. FY2017-27 Amending KIBC Chapters 3, 5, And 17 To Include Regulations For Marijuana Businesses. OTHER ITEMS Waive The Attorney -Client Privilege Legal Opinion Relating To The Initiative Petition Application Concerning Marijuana Businesses. 4. MANAGER'S COMMENTS 5. CLERK'S COMMENTS 6. MAYOR'S COMMENTS 7. ASSEMBLY MEMBERS COMMENTS Visit our website at ww r facebook.com/Kodiakislandborough � @KodiakBorough w wwkodiakak.us Page 2 of 215 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH STAFF REPORT APRIL 6, 2017 ASSEMBLY REGULAR MEETING SUBJECT: Resolution No. FY2017-34 In Support Of Changes To Timing And Location Of The U.S. Department Of Defense "Northern Edge '17" Training Exercise, and Subsequent Operations In The Gulf Of Alaska. ORIGINATOR: Matthew Van Daele RECOMMENDATION: To adopt Resolution no. FY2017-34. DISCUSSION: Assembly member Van Daele requested Resolution No. FY2017-34 for discussion. It is also scheduled for the next regular meeting of the Assembly. Previous documentation submitted by Mr. Tom Lance and Ms. Emily Stolarcyk are in this packet for reference. The Assembly received a presentation from them at the March 23 regular meeting. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough US Department of Defense "Northern Edge '17" Resolution Page 3 of 215 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 AGENDA ITEM #2.a. Introduced by: Assembly Member Van Daele Drafted by: Assembly Member Van Daele Introduced on: April 6, 2016 Adopted on: KODIAK ISLAND BOROUGH RESOLUTION NO. FY2017-34 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH IN SUPPORT OF CHANGES TO TIMING AND LOCATION OF THE US DEPARTMENT OF DEFENSE "NORTHERN EDGE '17" TRAINING EXERCISE, AND SUBSEQUENT OPERATIONS, IN THE GULF OF ALASKA WHEREAS, all of the communities in the Kodiak Island Borough are economically and culturally dependent upon strong fisheries; and WHEREAS, the economies of the City of Kodiak as well as the rural, urban, and village communities of the Kodiak Island Borough are already struggling due to downturns in the national and international pollock markets and weak pink salmon returns; and, WHEREAS, Kodiak has an important history of being a Navy town, and the current military presence of the US Naval Special Warfare Command and US Coast Guard are essential elements of our economy, community, and safety of our residents; and, WHEREAS, the efforts of the Department of Defense to communicate and consult with local organizations regarding past and planned Northern Edge exercises are greatly appreciated; and, WHEREAS, it is essential for the military to be able to conduct meaningful exercises for the sake of national security, which encompasses the security of Kodiak, the security of Alaska, and the security of the United States as a whole; and, WHEREAS, food security and economic security are also essential elements of national security, and it is critical for the communities of Kodiak to have harvestable fisheries resources to sustain our families, as well as to provide seafood for markets across the United States and the entire world; and, WHEREAS, previous military exercises have occurred when populations of migratory fish species are locally low or absent, and/or been conducted in areas of lower habitat importance for feeding and rearing of economically and culturally essential fisheries resources; and, WHEREAS, a military presence in the Gulf of Alaska can be conducted to minimize negative impacts on the existing maritime framework of subsistence and commercial economies and cultures reliant on fisheries in Kodiak; and, WHEREAS, changes to the spatial and temporal locations of maritime exercises have demonstrated that strong fisheries and naval activities are not necessarily mutually exclusive. Kodiak Island Borough, Alaska US Department of Defense "Northern Edge '17" Resolution Resolution No. FY2017-34 Page 1 of 2 Page 4 of 215 AGENDA ITEM #2.a. NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: The Kodiak Island Borough Assembly hereby requests the US Navy to conduct their activities after September when overall marine mammal, fish, and migratory bird abundances are lower; and to avoid the northwestern area of the Temporary Marine Activities Area that includes the State Marine Protected Area, National Oceanic and Atmospheric Administration Fisheries Essential Salmon Habitat Protected Area, and the Gulf of Alaska Seamount Protected areas. Section 2: The Kodiak Island Borough Assembly also requests the US Navy to continue its communication and consultation with the communities of Kodiak to assist us in protecting our fisheries, to cooperate with our researchers to enhance knowledge of these fisheries resources, and to determine equitable methods to conduct their naval exercises without negatively impacting our Archipelago's economies. Section 3: This resolution shall take effect immediately upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF , 201X. KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: Kodiak Island Borough, Alaska US Department of Defense "Northern Edge '17" Resolution ATTEST: Nova M. Javier, MMC, Clerk Resolution No. FY2017-34 Page 2 of 2 Page 5 of 215 AGENDA ITEM #2.a. KODIAK ISLAND BOROUGH PUBLIC AGENDAIPRESENTATION REQUEST FORM Desired date for the item to appear on an Assembly agenda: _3.23.2017_ Name: Emily Stolarcyk and Thomas Lance Organization: Eyak Preservation Council and Sun'aq Tribe of Kodiak Address: PO Box 460 Cordova, AK 99574 1 312 W Marine Way, Kodiak, AK 99615 Cell #: 907-491-1564 1907-654-5878 1 Email: emily@redzone.org talance@sunaq.org Please state the item you wish to have placed on the agenda and submit any applicable documents with this form. A resolution regarding the current location and timing of the U.S. Navy's Northern Edge training activities in the Gulf of Alaska. NOTE: This resolution is very similar to the one passed by the Kodiak Island Borough in May, 2015. Please state the desired action of the Assembly: Add resolution to agenda for their 3.23.2017 meeting and vote to pass it, as seven other communities have done. Timing is critical to advise Navy of KIB's concerns prior to their March 30, 2017 visit to ComFish, where Navy will meet with community and Tribes. Do you wish to present this to the Assembly? _X_ Yes No Presentations are normally limited to 15 minutes. If more time is desired, please state how many minutes is requested: Do you need to have access to equipment for this presentation such as a computer, projector, DVD player? If so, please state the equipment needed below: Projector. We will provide our own computer. Please see additional information on the back of this form. Page 6 of 215 US Department of Defense "Northern Edge '17" Resolution AGENDA ITEM #2. a. KODIAK ISLAND BOROUGH PUBLIC AGENDA/PRESENTATION REQUEST The Assembly meets on the first and third Thursdays of each month for their regular meetings and they normally meet a week before in work sessions before the regular meetings. If you have a specific topic that you would like the Borough Assembly to discuss at a future work session/meeting, OR if you wish to make a presentation to the Assembly, please complete this form and submit it to the Borough Clerk's Office. The item will possibly be scheduled for a future meeting or forwarded to Borough Staff for appropriate action. Please return this form to: Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough 710 Mill Bay Road, Kodiak, AK 99615 Email: niavier(LDkodiakak.us Phone: (907) 486-9310 Fax: (907) 486-9391 For Staff Use Only: Received by the Clerk's Office on: Distributed to the Manager/Assembly on: Discussed at the agenda setting on: Approved for agenda item on: Work session date: Regular meeting date: Informed requestor on: Notes: Page 7 of 215 US Department of Defense "Northern Edge '117" Resolution 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 FOR REFERENCE ONLY AGENDA ITEM #2. a. Introduced by: KIB Assembly Drafted by: Tom Lance and Emily Stolarcyk, Requestors Introduced on: March 23, 2017 Adopted on: KODIAK ISLAND BOROUGH RESOLUTION NO. FY2017-XX A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ADDRESSING ISSUES RELATING TO THE U.S. NAW TRAINING EXERCISES IN THE GULF OF ALASKA IN 2017 WHEREAS, the Kodiak Island Borough is the governing body with the full power and authority as recognized by the citizens of Kodiak, to actforits members, and has responsibility to provide government for the good health and welfare ,ciitizens; and ' WHEREAS, the U.S. Navy plans to conduc inin ivities utili explosives, live ordnance, and sonar in the Gulf of Alaska in 201 have impacts on -marine life and habitat vital to the interests of Kodiak and its.citizens; an WHEREAS, these trainings will impact the waters of the Gu1F of Alaska by annually releasing up to approximately 352,000 pounds ofsexpanded materials including up to 10,500 pounds of hazardous materials including cyanide, chromium,, lead,. tungsten, nickel, cadmium, barium chromate, chloridest phosphorus; titanium compounds, lead oxide, potassium perchlorate, lead chromate, ammonium perchlorate, fr lminate of rnercury, and lead azide into waters designated by NOAA as Essential Fish Habitat for a multitude of species that support the economic development In Alaskan coastal communities and harvest of wild Alaskan salmon and other fish for global markets; and WHEREAS, the training area and vicinity is a highly productive region for many marine fish and shellfish populations and.,supports'some of the most productive fisheries in the United States, and an important spawping area for many fishes, and the training is scheduled to take place during the summer season when many fish populations are migrating and spawning (at least 383 species belonging to 84 families of marine and anadromous fishes have been reported from the predominant ecosystems found in the training area); and WHEREAS, the ports of Kodiak are reliant on the fish and wildlife resources in the Gulf of Alaska for their subsistence harvest and the livelihoods supported by commercial fishing; and WHEREAS, the Kodiak Island Borough supports all cultural, traditional and subsistence activities historically and continually practiced by Native and non -Native peoples in the Gulf of Alaska; and Kodiak Island Borough, Alaska Resolution No. FY2017-XX Page 1 of 2 Page 8 of 215 US Department of Defense "Northern Edge'17" Resolution 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 AGENDA ITEM #2.a. WHEREAS, the Kodiak Island Borough finds no scientific information or traditional knowledge demonstrating that the U.S. Navy's training activities can take place without negatively affecting salmon, marine mammal, bird and other marine habitats. NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the Kodiak Island Borough of Kodiak, Alaska does hereby request that the U.S. Navy refrain from using live ordnance or sonar in any Marine Protected Area, including NOAA Fisheries Marine Protected Areas, State Marine Protected Areas and Habitat Areas of Particular Concern; and BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the Kodiak Island Borough of Kodiak, Alaska herebi requests that the U.S. Navy relocate its training area to the far southeast corner of the, -current designated training area, off the Continental Shelf areas of the Gulf of Alaska, and away from seamounts; and BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the Kodiak Island Borough of Kodiak, Alaska requests theU.S. Navy to conduct its training exercises after the middle of September and be "21' he _ so as not to impact migrating salmon and other species. _ ADOPTED BY THE ASSEM0 THIS ' KODIAK ISLAND B Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: i Kodiak Island Borough, Alaska ND BOROUGH 2017. Nova M. Javier, MMC, Clerk Resolution No. FY2017-XX Page 2 of 2 Page 9 of 215 US Department of Defense "Northern Edge'17" Resolution AGENDA ITEM #2.a. City Council Memorandum DATE: February 27, 2017 TO: Kodiak Island Borough Assembly FROM: Emily Stolarcyk, Program Manager - Eyak Preservation Council PRESERVING WILD SUBJECT: Supplemental Information/ Overview of Resolution addressing the US SALMON HABRAT rt Navy's 2017 trainings in the Gulf of Alaska INDIGENOUS CULTURE Board of Directors Thank you for the opportunity to provide context and information to support the Resolution addressing the US Navy's 2017 training plans in the Gulf of Alaska. This Dune tankard Founder & President Resolution was passed by the communities of Cordova, Homer, Valdez, Phillip Blanchett Sitka, Girdwood, Tenakee Springs, and Whittier, Alaska. Director & bice President Carol Katafatic On March 31", 2016, US Navy representatives speaking at ComFish in Kodiak, AK Director & secretary stated that the Navy had pre -selected training dates for 2017 in the Gulf of Alaska. Carol Hoover Their dates are May 1 —12, 2017. These dates are problematic and pose risks to our Director It Treasurer commercial and subsistence fisheries. As coastal communities, we need to engage Rion Schmidt the Navy and support an alternative time of their `Northern Edge' training exercises. Director Advisory Council The Eyak Preservation Council supports a well-trained Navy and is not asking for the exercises to be discontinued. We are asking that the Navy work with local Nits Boisen communities to find the best time and location for training that poses the least Susanna Coltoredo amount of risk to the valuable habitat within the Gulf of Alaska; the needs of local David Lynn Grimes industries, communities and the environment must be balanced. We are asking for Chief Gary Harrison the Navy to conduct their exercises between mid-September and March exclusively. Dan_ie Houck. Esq Robbin La Vine Some additional points for consideration: Timothy Metz Mariah Parker • The Navy selected 2017 training dates before securing a Letter of Authorization Pamela Smith (LOA) or a permit from the National Marine Fisheries Service (NMFS) for the Alan Trist 2017 trainings. Selecting dates before securing a LOA is a serious breach of protocol and legality by the US Navy. In the 43 years that the Navy has conducted trainings in the GOA, only twice have trainings occurred in May (2007, 2008). The use of active sonar, only permitted since 2011, has never occurred in May. Historically, trainings took place in winter months (1973 —2003). Only in 2004 was Northern Edge moved to the summer months. May is one of the prime months for species migration into the GOA. The Navy has not conducted any additional research to prove that training in May, including the use of active sonar, will not harm or have negative effects on migrating fish and marine mammals. • The Navy and NMFS recently lost a federal lawsuit about Naval exercises and permit processes regarding the Navy's activities in their Hawaii/Southern PO BOX 460 CORDOVA AK 99574 . 907.44.5890 • EYAKPRESERVATIONCOUNCILORG • EYAKeREDZONE.ORG PAGE 1 OF 1 Page 10 of 215 US Department of Defense "Northern Edge'17" Resolution AGENDA ITEM #2.a. California ranges. As a result, the Navy is now restricted from training in • Biologically Important Areas (BIA's) during certain times of the year because of the species present. The resolution asks that the same protections awarded to E YA K Hawaii/Southern California be extended to the Gulf of Alaska. PRESERVATION The Navy has previously identified that both September and October are C U�uR� acceptable months in which `Northern Edge' can be conducted. PRESERVING WILD • Our environment is changing. The Navy has not conducted any research nor SALMON HABnAT Et presented any information about the safety and/or long term impacts their INDIDENDUS CULTURE trainings pose to our marine environments including Essential Fish Habitat. In these changing times, it is our responsibly to take every measure to safeguard the future of our fisheries. Allowing the Navy to train in May could have a number of unintended consequences and unfavorable impacts to our fisheries including: o Immediate decline in catch due to direct physical injury and mortality from weapons and sonar; o Delays in fish runs as a result of scattering effects from sonar (observed after 2015 trainings in Bristol Bay and other fisheries); o Exposure and contamination of fish from Navy -sourced expended materials such as cyanide, mercury and lead; o Failure to (or an increase in the time needed to) reach the next developmental stage of juvenile fish populations. In summary, allowing the Navy to conduct their training exercise `Northern Edge' in May puts our fishing industries and subsistence resources at undue risk. The Navy is already changing their activities in other Pacific ranges. The Navy needs to hear from communities now, well in advance of their trainings, in order to make the necessary changes to their schedule. Please contact me with additional questions and/ or concerns. Thank you, Emily Stolarcyk Program Manager 907-424-5890 emily@redzone.org PO BOX 460 CORDOVA AK 99574 . 907.424.5890 • EYAKPRESERVATIONCOUNCIL.ORG• EYAK@REDZONE.ORG PAGE 2 OF Page 11 of 215 US Department of Defense "Northern Edge '17" Resolution AGENDA ITEM #2.a. el Currently, these exercises are planned during the most prolific breeding and migratory �� • Navy Military Training Exercises in the Gulf of Alaska Phillip Blanchett Gulf of Alaska, which has still not fully recovered from the Exxon Valdez oil spill, is E YA K SUMMARY ® The US Navy seeks to continue military training activities called "Northern Edge" in the PRESERVATION Gulf of Alaska to "achieve and maintain readiness." (Source www.goaeis.com). C O U N C IL On March 31't, 2016, US Navy representatives speaking at ComFish in Kodiak, AK stated Director & Treasurer that the Navy had pre -selected training dates for 2017. Their planned dates are May I — PRESERVING WILD 12, 2017. Regional communities and fisheries find these dates problematic and feel that SALMON HABITAT ft training in May pose risks to our commercial and subsistence fisheries. We seek to INDIGENOUS CULTURE engage the Navy and support an alternative time of their `Northern Edge' training Pamela smith exercises to take place exclusively between mid-September and March. Board of Directors 2020. The National Oceanic and Atmospheric Administration (NOAA) is the permitting Dune tankard Currently, these exercises are planned during the most prolific breeding and migratory Founder it President periods of the marine supported life in the region (salmon, whales, birds and more). The Phillip Blanchett Gulf of Alaska, which has still not fully recovered from the Exxon Valdez oil spill, is Director it Vice President home to Alaska's most diverse population of Indigenous Peoples who rely on its bounties Carol Katafatic for sustenance, commercial and traditional hunting and gathering activities. Natives living Director & Secretary on the northern coast of the Gulf of Alaska include Eskimo, Eyak, Athabascan, Alutiiq, Carol Hoover Tlingit and Aleut, and collectively constitute 30 percent of the area's overall population. Director & Treasurer (Source: Alaska Native Commissions Report, https://alutiigmuseum.org/learn/the- Rion Schmidt alutiiq-sugpiaq-people). Director Advisory Council Background According to the EIS preferred plans, these "war games" will involve use of high - Nits Boisen frequency and mid -frequency sonar (235 dB) for submarine exercises, plus authorized use Susanna Cnlloredo of a wide variety of live weapons and explosives deployment - bombs, heavy deck guns, David Lynn Grimes torpedoes, missiles, large carrier strikes (ships blown up & sunk) none of which will ever Chief Gary Harrison be recovered. Although military training exercises have been conducted in the GOA Darcle Houck, Esq. intermittently for the last 40 years, those proposed in the current EIS are a massive increase from any conducted before 2011 (e.g. a 6,500% increase in sonobuoys). The use Robbin La Vine of active sonar was permitted for the first time in 2011. Timothy Metz Marian Parker The Navy has applied for permits to conduct training exercises in the Gulf of Alaska Pamela smith (GOA) for up to 42 days (from April to October) annually for a five-year period, 2016 — Alan Trist 2020. The National Oceanic and Atmospheric Administration (NOAA) is the permitting agency with support from the National Marine Fisheries Service (NMFS). The Navy is required to complete a supplemental EIS (released 7/29/2016). Significance The GOA is the pathway and breeding grounds that provides traditional food sources and is the primary sustainable economic engine for Indigenous and non-native communities alike in Alaska. Of all species of fish and marine mammals Indigenous people in the region use for food and cultural traditions, none is more iconic than wild salmon. Wild salmon are at the heart of Alaska's image the world over. These proposed Navy training exercises pose a large risk to all types of fish and marine mammals that live in or travel through the GOA, including all five species of Pacific Salmon. The area where the Navy conducts its activity is vital habitat for many species. The Gulf PO BOX 460 CORDOVA AR 99574 . 907.434.5890 . EYAKPRESERVATIONCOUNCILORG • EYAR@RED70NE.ORG PAGE 1 OF i Page 12 of 215 US Department of Defense "Northern Edge 17" Resolution AGENDA ITEM #2.a. The Navy acknowledges the harm and deaths the exercises pose to marine mammals and refers to the thousands of"takes" that are anticipated when these exercises are carried out (over 36,000 takes annually, >182,000 over five years). When it comes to fish, including salmon, it is clear from the EIS that the extent ofthe damage and risk are largely unknown. Much more scientific research is needed to know the effects these trainings have on fish populations. A quote from the EIS Section 3.6 Fish on Explosive Sources states: "...little is known about the very important issues of nonmortality damage in the short and long-term, and nothing is known about effects on behavior offish." The GOA, south of Prince William Sound, is essential habitat and traveling pathways for all of the rich diversity of sea life and mammals. It is unacceptable to host military training exercises in the spring and summer, year after year, during the most prolific breeding and migratory periods for all of the marine supported life in the entire region especially when the Navy has previously identified that both September and October are acceptable months in which 'Northern Edge' can be conducted and historically the Navy only trained in the winter months. Summary Conclusion The Eyak Preservation Council (EPC) is extremely concerned about these trainings and their potential for negative effects on humans, animals and the environment. EPC believes that these trainings pose a risk to Native and Non -Native Subsistence Foods culture and harvests as well as commercial fisheries. This paper references fish and does not delve into the effects of these trainings on marine mammals. The trainings will take place in areas that include Essential Fish Habitat. The proposed activities in the TMAA (Temporary Marine Activities Area, map on page 7) have the potential to result in the following impacts: - Physical disruption of habitat; - Physical destruction or adverse modification of benthic habitats; - Alteration of water or sediment quality from expended material or discharge; - Cumulative impacts. Please refer to Notes on subsequent pages PO BOX 460 CORDOVA AR 99574 • 907.424.5890 • EYAXPRESERVATIONCOUNCIL.ORG • EYAX@REDZONE.ORG PAGE 2 OF 7 Page 13 of 215 US Department of Defense "Northern Edge 17" Resolution Ad1 of Alaska supports the most sustainable and economically valuable fisheries left in the USA. Commercial fishing is the largest private sector employer in Alaska, providing over EYA K 63,000 jobs. Immediate harm to marine life includes death from explosions and sonar and the PRESERVATION destruction of essential habitat areas. Long-term risks include exposure to hazardous ® chemical by-products left from the expended materials (bombs, sunken vessels, etc), and C O U N C I L the bioaccumulation of hazardous chemicals that can be assimilated into the food chain. These risks threaten the cultural freedoms and economic livelihoods of Indigenous PRESERVING WILD peoples that depend on these animals today and have for thousands of years. These SALMON HABRAT Et trainings and the toxic debris they leave behind will cause irrevocable damage to fish, INDIGENOUS CULTURE marine mammals, sea birds, their habitats, and the human communities that reply on the ocean for food and sustenance. The Navy acknowledges the harm and deaths the exercises pose to marine mammals and refers to the thousands of"takes" that are anticipated when these exercises are carried out (over 36,000 takes annually, >182,000 over five years). When it comes to fish, including salmon, it is clear from the EIS that the extent ofthe damage and risk are largely unknown. Much more scientific research is needed to know the effects these trainings have on fish populations. A quote from the EIS Section 3.6 Fish on Explosive Sources states: "...little is known about the very important issues of nonmortality damage in the short and long-term, and nothing is known about effects on behavior offish." The GOA, south of Prince William Sound, is essential habitat and traveling pathways for all of the rich diversity of sea life and mammals. It is unacceptable to host military training exercises in the spring and summer, year after year, during the most prolific breeding and migratory periods for all of the marine supported life in the entire region especially when the Navy has previously identified that both September and October are acceptable months in which 'Northern Edge' can be conducted and historically the Navy only trained in the winter months. Summary Conclusion The Eyak Preservation Council (EPC) is extremely concerned about these trainings and their potential for negative effects on humans, animals and the environment. EPC believes that these trainings pose a risk to Native and Non -Native Subsistence Foods culture and harvests as well as commercial fisheries. This paper references fish and does not delve into the effects of these trainings on marine mammals. The trainings will take place in areas that include Essential Fish Habitat. The proposed activities in the TMAA (Temporary Marine Activities Area, map on page 7) have the potential to result in the following impacts: - Physical disruption of habitat; - Physical destruction or adverse modification of benthic habitats; - Alteration of water or sediment quality from expended material or discharge; - Cumulative impacts. Please refer to Notes on subsequent pages PO BOX 460 CORDOVA AR 99574 • 907.424.5890 • EYAXPRESERVATIONCOUNCIL.ORG • EYAX@REDZONE.ORG PAGE 2 OF 7 Page 13 of 215 US Department of Defense "Northern Edge 17" Resolution AGENDA ITEM #2.a. o l� NOTES: E YA K The following are excerpts from the Navy's Environmental Impact Statement and can be read in full at wwwv.eoaeis.com. PRESERVATION EIS Section 3.6 Fish: C O U N C I L - The TMAA and vicinity is a highly productive region for various marine fish and shellfish populations and supports some of the most productive fisheries in the United States' PRESERVING WILD - The TMAA falls within the Alaska Current (AC) and the Alaska Coastal Current (ACC) SALMON HABITAT It systems. Both currents flow in a northerly direction off southeastern Alaska and then turn INDIGENOUS CULTURE southwestward along the Alaska coast** - Currently the GOA supports habitats of"endangered" and "threatened" populations of high seas salmon (Chinook, who, chum, and sockeye salmon, and steelhead) - The TMAA and vicinity is a highly productive region for various marine fish and shellfish populations and supports some of the most productive fisheries in the United States. It is also an important spawning area for many fishes - At least 383 species belonging to 84 families of marine and anadromous fishes have been reported from the predominant ecosystems found in the GOA TMAA - 59 of the 66 managed groundfish species are known to occur in the TMAA - Five species of Pacific salmon (Chinook, coho, chum, pink, and sockeye salmon) have EFH designated within the TMAA - Of the five species of Pacific Salmon, Chinook would be the most affected by the Navy's tminings The effects [of the tminings] on fish could include direct physical injury, such as potential for death, injury, or failure to (or an increase in the time needed lo) reach the next developmental stage. - Stress to fish populations in warfare areas includes environmental stressors, acoustic effects of underwater sounds to fish, effects of underwater impulsive sounds, explosive ordnance, nonexplosive ordnance, and expended materials. Potential stressors to fish and EFH include vessel movements (disturbance and collisions), aircraft overflights (disturbance), explosive ordnance, sonar training (disturbance), weapons Firing/nonexplosive ordnance use (disturbance and strikes), and expended materials (ordnance - related materials, targets, sonobuoys, and marine markers). - Potential effects of explosive charge detonations on fish and EFH include disruption of habitat; exposure to chemical by-products; disturbance, injury, or death from the shock (pressure) wave; acoustic impacts; and indirect effects including those on prey species and other components of the food web. These tminings will occur during fishing season. Commercial fishing is the largest private sector employer in the state of Alaska and supports over 63,000 jobs. '• This means that the expended materials left in the water after the tminings will flow towards Alaska's coastline. In reference to Sonar: There have been very few studies on the effects that human -generated sound may have on fish The majority of studies often lack appropriate controls, statistical rigor, and/or expert analysis of the results Hearing capability data only exists for fewer than 100 of the 29,000 fish species Generally, a clear correlation between hearing capability and the environment cannot be asserted or refuted due to limited knowledge of ambient sound levels in marine habitats and a lack of comparative studies PO BOX 460 CORDOVA AK 99574 - 907.44.5890 • EYAKPRESERVATIONCOUNCILORG • EYAK@REDZONE.ORG PAGE 3 OF 7 Page 14 of 215 US Department of Defense "Northern Edge'17" Resolution AGENDA ITEM #2. a. /�• - Based upon currently available data it is not possible to predict specific effects of Navy �. • 6i '� impulsive sources on fish. At the same time, there are several results that are at least suggestive �— of potential effects that result in death or damage EYAK The literature on vulnerability to injury from exposure to loud sounds is similarly limited, relevant to particular species, and, because of the great diversity offish, not easily extrapolate d PRESERVATION We just don't know: C O U N C I L - The effects of sound on fish are largely unknown - A number of studies have examined the effects of explosives on fish. However, these studies PRESERVING WILD are often variable, so extrapolation from one study to another, or to other sources, such as SALMON HARRAT f2 those used by the Navy, is not really possible INDIGENOUS CULTURE - Little is (mown about the very important issues of nonmortalily damage in the short- and long- term, and nothing is known about effects on behavior of fish. - More well-controlled studies are needed on the hearing thresholds for fish species and on temporary and permanent hearing loss associated with exposure to sounds. - The effects of sound may not only be species specific, but also depend on the mass of the fish (especially where any injuries are being considered) and life history phase (eggs and larvae may be more or less vulnerable to exposure than adult fish). - No studies have established effects of cumulative exposure of fish many type of sound or have determined whether subtle and long-term effects on behavior or physiology could have an impact upon survival of fish populations. Munitions Constituents: - Petroleum hydrocarbons released during an accident are harmful to fish. Jet fuel is toxic to fish. - Unburned fuel may be spread over a large area - Fuel spills and material released from weapons and targets could occur at different locations and at different times. - Potential impacts from Navy explosives training include degradation of substrate and introduction of toxic chemicals into the water column EIS Section 3.14 Public Safety: Undetonated ordnance on the ocean Boor may pose a risk to fishermen, particularly bottom trawlers. If a trawl contacted an undetonated ordnance item, the item could detonate. Chaff (aluminum -coated polymer fibers inside of a launching mechanism) will be used during the bainings. Upon deployment, the chaff and small pieces of plastic are expended. The purpose of chaff is to counter avoid aircraft detection by radar by masking the aircraft and to provide false radar returns to defeat mdar-guided anti-aircraft defensive systems. Chaff will form a large cloud of fiber that disperses slowly, which could affect public safety. Some solid training items expended at sea could migrate to the shoreline where the public could encounter them. Included among these items are targets and sonobuoys. Hazardous materials from the tminines left in the water include heavy metals, propellants. and explosives. Including the following: Cyanide, Chromium, Lead, Tungsten, Nickel, Cadmium, Barium chromate, Chlorides, Phosphorus, Titanium compounds, Lead oxide, Barium chromate, Potassium pcmhlomte, Lead chromate, Ammonium perchlorate, Potassium perchlorate, Fulminate of mercury, Potassium perchlorate and Lead azide. The Navy was permitted Alternative 2 (their preferred). PO BOX 460 CORDOVA AK 99574 . 907.424.5890 - EYAKPRE5ERVATIONCOUNCIL.ORG - EYAK@REDZONE.ORG PAGE 4 OF 7 Page 15 of 215 US Department of Defense "Northern Edge 17" Resolution c i EYAK PRESERVATION C O U N C I L PRESERVING WILD SALMON HABITAT & INDIGENOUS CULTURE AGENDA ITEM #2.a. Table 3.2-18: Numbers and Weights of Expended Training Materials - Alternative 2 Type of Training Material Quantity of Training Alternative 2 Number Weight Ib Materials No Action Allemative Number We ht Ib Increase under Alternative 2 % Number Weight Bombs 360 150.0m 00 120 20 54 200 I200 Missiles 66 20,300 22 6.T70 200 200 Ta ethnics 644 11 200 252 3,610 160 210 Naval shells 26,376 27 500 10,554 10,700 150 150 Small arms rounds 11,400 420 5,000 160 130 130 SonoMto 1.567 61,800 24 836 6,500 6500 Pt1TR 1 2,100 0 0 NA NA SINKER 656 70,000 0 0 NA NA Total 41 2fm 352 000 f5-159-8-2 7 160 360 It is up to us. Alaska regulations on expended and hazardous materials are not applicable to Navy training in the TlvAA because no training activities take piece within State waters (up to three nm from shore). Alaska has not developed any state -specific military munitions regulations. Assuming Navy training under Alternative 2 would remain consistent over periods of five and 20 years, the Navy would expend approximately 880 tons (209 lb per nm21275 kg per km2]) and 3,520 tons (835 Ib per nm2 [I 10 kg per km2]) of training material in the TMAA, respectively. Continued, new page PO BOX 460 CORDOVA AK 99574 . 907.424.5890 - EYAKPRESERVATIONCOUNCIL.ORG - EYAK@REDZONE.ORG PAGE 5 O 7 Page 16 of 215 US Department of Defense "Northern Edge'17" Resolution j EYAK ss-aaaaaa� PRESERVATION C O U N C I L PRESERVING WILD SALMON HABITAT rt INDIGENOUS CULTURE AGENDA ITEM #2.a. List of Weapons to be Used in the GOA Trainings Table 3.2-1: Hazardous Constituents of Expendable Training Materials, by Training Nem PO BOX 460 CORDOVA AK 99574 • 907.424.5990 . EYAKPRESERVATIONCOUNCIL.ORG• EYAKIVREDZONE.ORG PAGE 6 OF Page 17 of 215 US Department of Defense "Northern Edge'17" Resolution Hazardous ConetBwnt Trsk*V Neon c i � u o S AIM -7 Spe misWe ✓• ! ! AIM-9swevarderm1we ! ✓ ✓ ✓ AIM -120 AdYenoed MedWm-Range Aa -to -Air Missile ! ! ! ! AAM RMM)_. Standard LYssiie-i_ V ✓ AGM -65 M9veriCk ✓ ✓ ✓ ✓ Missiles AGM4HKStar LaM Atla nk Mrsste - F_zperded ✓ ✓ ✓ ✓ M- Response (SLAM -ER) AGM -88 Nigh Speed Ans-Redebon Lks14e (FIAM AGWI14 He81Ye ✓ ✓ ✓ ✓ AGM -119 Pengain BEN 1-45 PINCOOD fkWr ✓ MK -82 5011 -pound Vol blmnb (1922 Net EVIG" ✓ ! Bombe VOWINEWf%HE' MK -931.0004b borM (415.8 N NE ✓ ✓ MK -84 2.00041b bomb 844.7 NEW He ✓ ✓ W154r161Iu(Cal) gun awe (Muer) ✓ ✓ S154 -W oun anal ✓ ✓ ✓ TB- morow(mm) gun shes ✓ ✓ Navel Gun TB -mm gun well (a")✓ ✓ ✓ 1ihe� 57 -on gun e w ✓ ✓ ✓ 25 -nm gun shell ✓ 20- shss ✓ small Arms 0.50-u1 mu"gun ✓ ✓ Rou d$ 7.62 -mm prolecille✓ ✓ SaWME umrrwrd aerof WgW ✓ ✓ 5528 para8sre ✓ O Targets and _ _..,. 4W.W Harare Merkur ✓ ✓ Py�na MK -38 Expandable Mobile MY-SL&nwk*Warfare ✓ ✓ Tr k*VTarget(EMA7T) SSG -38 BBWAllem OW*h (ST) ✓ ✓ 580.53 Deeawnrsl Freguanry Analysis and PAcof g ✓ ✓ OPAR Salobuoys onel Command AcWzled SWaXM SS032 0lumma ✓ ✓ System (ON:ASS) SSG.77 Vertical Line ANey Olradio" Frequarxy ✓ ✓ Ainalvals and Recomlird MAD) S80.11OA H iardad Edn EER ✓ ✓ ✓ T MK -48 AOiarrced CapebYyIADCAPD )tnoado �I I ✓ I Chaff I ALE -43 01spenser (AIUNNzed glass Fulj�-___ ✓ PO BOX 460 CORDOVA AK 99574 • 907.424.5990 . EYAKPRESERVATIONCOUNCIL.ORG• EYAKIVREDZONE.ORG PAGE 6 OF Page 17 of 215 US Department of Defense "Northern Edge'17" Resolution <,�d EYAK PRESERVATION C O U N C I L PRESERVING WILD SALmoN HASiTAT iI INDIGENOUS CULTURE AGENDA ITEM #2.a. Joint Rase Elinendw-r- Anchorage---- Richardsmt Cordova Iniskin. -r _ _ a Amer -, , - - - _Yakutat• Cape Douglas* 401: t Gull of ,1. I'.S. Coast Guafd_ . Base Kodiak .Kodiak 1 er o lam- ° a. s c o P.Ic;lic Ocean-,. _tet Legend • To Qty lkparUnent of Defense Inst,018". — 12-NeUfice1Mik Linn U.S. Al, Face /— is h th (depth in meters) ■ US Coast GUard o a v m Temporary Marhime Special Use Airspace Protean.: NCS 81. UnA ON ® Ae Wws Are. 0MAA) QNremirp Area Saurtn: U.S. Na". NGA 1SWdy Mea) PO BOX 460 CORDOVA AK 99574 . 907.424.5990 . EYAKPRESERVATIONCOUNCIL.ORG. EYAKQREDZONE.ORG PAGE 70F7 Page 18 of 215 US Department of Defense "Northern Edge'17" Resolution 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 AGENDA ITEM #2.a. Introduced by: Borough Assembly Requested by: Borough Assembly Drafted by: Borough Clerk Introduced on: 0512112015 Adopted on: 0 512 1 2 01 5 KODIAK ISLAND BOROUGH RESOLUTION NO. FY 2015-22 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH OPPOSING NAVY TRAINING EXERCISES IN THE GULF OF ALASKA IN JUNE 2015 WHEREAS, the Kodiak Island Borough is the governing body with the full power and authority as recognized by the citizens of Kodiak, to act for its members, and has responsibility to provide government for the good health and welfare of its citizens; and WHEREAS, these trainings will pollute the waters of the Gulf of Alaska by annually releasing approximately 352,000 pounds of expended materials including 10,000 pounds of hazardous materials including cyanide, chromium, lead, tungsten, nickel, cadmium, barium chromate, chlorides, phosphorus, titanium compounds, lead oxide, potassium perchlorate, lead chromate, ammonium perchlorate, fulminate of mercury, and lead oxide into waters designated by NOAA as Essential Fish Habitat for a multitude of species that support the economic development in Alaskan coastal communities and harvest of wild Alaskan salmon for global markets; and WHEREAS, the training area and vicinity is a highly productive region for many marine fish and shellfish populations and supports some of the most productive fisheries in the United States. It is also an important spawning area for many fishes, and the training is scheduled to take place during the summer season when many fish populations are migrating and spawning. At least 383 species belonging to 84 families of marine and anadromous fishes have been reported from the predominant ecosystems found in the training area; and WHEREAS, the port of Kodiak is often ranked in the top 3 U.S. ports for quantity of seafood landed and dollar value of seafood harvests (Fisheries of the U.S., NOAA), illustrating coastal Alaska's reliance on the fish and wildlife resources in the Gulf of Alaska for their subsistence harvest and the livelihoods supported by commercial fishing; and WHEREAS, the Kodiak Island Borough supports all cultural, traditional and subsistence activities historically and continually practiced by Native and non -Native peoples in the Gulf of Alaska; and WHEREAS, the Kodiak Island Borough finds no scientific information or traditional knowledge demonstrating that the training activities can take place without negatively affecting salmon, whale, bird and other marine habitats. Kodiak Island Borough, Alaska Resolution No. FY2015-22 Page 1 of 2 Page 19 of 215 US Department of Defense "Northern Edge '17" Resolution 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 AGENDA ITEM #2.a. NOW, THEREFORE BE IT RESOLVED that the Assembly of the Kodiak Island Borough, Alaska does hereby request that the Navy refrain from using live ordnance or sonar in any Marine Protected Area, including NOAA Fisheries Marine Protected Areas, State Marine Protected Areas and Habitat Areas of Particular Concern; and, the Kodiak Island Borough requests the Navy move these trainings 200 nautical miles from Alaskan shoreline. BE IT FURTHER RESOLVED that the Assembly of the Kodiak Island Borough, Alaska recommends that the Navy training exercises be moved to a later date, after the middle of September 2015, so as not to impact migrating salmon and be relocated in the far southeast corner of the designated training area. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTY FIRST DAY OF MAY, 2015 KODIAK ISLAND ATTEST: 62 Nova M. Javier, M1 C, Borough Clerk Kodiak Island Borough, Alaska US Department of Defense "Northern Edge 17" Resolution Resolution No. FY2015-22 Page 2 of 2 Page 20 of 215 AGENDA ITEM #2.b. KODIAK ISLAND BOROUGH STAFF REPORT APRIL 6, 2017 ASSEMBLY REGULAR MEETING SUBJECT: Ordinance No. FY2017-27 Amending KIBC Chapters 3, 5, And 17 To Include Regulations For Marijuana Businesses. ORIGINATOR: Sara Mason RECOMMENDATION: Adopt Ordinance No. FY2017-27in first reading to advance to public hearing at the next regular meeting of the Assembly. DISCUSSION: In 2014 the State of Alaska's Ballot Measure #2 was approved by state voters. This provided for the legalization of select marijuana -related activities. Since 2014 state and local governments have been working toward developing laws to govern the marijuana industry in Alaska. Through the adoption of Ordinance No. FY2016-17 the Kodiak Island Borough created a new chapter of Borough Code and included a provision that prohibited the operation of marijuana cultivation, marijuana product manufacturing facilities, marijuana testing facilities, and retail marijuana stores within the Borough. An amendment to this ordinance (Ordinance No. FY2016-17A) was recently approved by the Assembly that would extend this date to April 30, 2017. Basis for discussion on Title 17 changes was the result of of ten meetings of the Borough's Marijuana Task Force; established by Resolution No. FY2016-31. Currently, the sections of this ordinance relating to Title 17 are under review by the Planning & Zoning Commission. At its February 15, 2017 special meeting, the Commission postponed this item to their March 15, 2017 meeting. At it's March 22, 2107 regular meeting, the Commission failed a motion to recommend approval of the Title 17 changes. An affidavit was filed on March 23, 2017 for a request to reconsider. The item will be scheduled for reconsideration at the April 19, 2017 regular meeting. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Page 21 of 215 2 3 4 5 6 7 8 9 10 Il 12 13 14 15 16 17 IS 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGENDA ITEM #2.b. Introduced by: Drafted by: CDD Director Introduced on: Public Hearing Date: Adopted on: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-27 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, TITLE 5 BUSINESS LICENSES AND REGULATIONS, AND TITLE 17 ZONING TO PROVIDE FOR REGULATIONS RELATING TO MARIJUANA BUSINESSES WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has provided for the legalization of various marijuana -related activities on a specific timeline; and WHEREAS, AS 17.38.110 provides for local government control not in conflict with state law; and WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 17.38.110, and WHEREAS, the Kodiak Island Borough implemented a moratorium on the operation of commercial marijuana businesses until April 30, 2017 through Ordinance No. FY2016-17A; and WHEREAS, the Kodiak Island Borough formed a Marijuana Task Force through the adoption of Resolution No. FY2016-31; and WHEREAS, the Marijuana Task Force developed recommendations for regulating marijuana businesses in the Kodiak Island Borough; and WHEREAS, in accordance with AS 29.40.020 the Planning and Zoning Commission discussed the proposed changes to Title 17 (Zoning) at work sessions, regular meetings, or special meetings on February 8, 2017, February 15, 2017, March 15, 2017, and March 22, 2017: and WHEREAS, the Planning and Zoning Commission, following the March 22, 2017 public hearing, failed to pass a motion to transmit their recommendations for revisions to Title 17 to the Borough Assembly; and WHEREAS, on March 23, 2017, two Planning and Zoning Commissioners filed a Reconsideration Affidavit with the Community Development Department stating their intent to reconsider the vote taken after the March 22, 2017 public hearing; and Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2017-27 Page 1 of 20 Version 1 Page 22 of 215 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 AGENDA ITEM #2.b. WHEREAS, the Planning and Zoning Commission, at their April 19, 2017 regular meeting, voted to reconsider the vote taken after the March 22, 2017 public hearing and voted to transmit their recommendations for revisions to Title 17 to the Borough Assembly; and WHEREAS, the Borough Assembly discussed the proposed changes at work sessions and regular meetings on March 16, 2017, March 30, 2017, April 6, 2017, April 13, 2017, and April 20, 2017; and WHEREAS, the Borough Assembly, following the public hearing at the April 20, 2017 regular meeting, voted to adopted Ordinance FY2017-27. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Titles 3, 5, and 17 of the Kodiak Island Borough Code of Ordinances are amended to read as follows: Chapter 3.70 EXCISE TAX ON MARIJUANA 3.70.010 Applicability, purpose and authority. 3.70.020 Definitions. 3.70.030 Excise tax on marijuana. 3.70.040 Exemptions. 3.70.050 Tax returns. 3.70.060 Involuntary returns. 3.70.070 Amended tax returns. 3.70.080 Application of payments. 3.70.090 Prohibited acts and penalties. 3.70.100 Civil fraud. 3.70.110 Tax lien. 3.70.120 Interest on unpaid tax. 3.70.130 Taxpayer, licensee, or other person remedies. 3.70.140 Inspection and maintenance of documents and records. 3.70.150 Administrative regulations. 3.70.160 Confidentiality of records. 3.70.010 Applicability, purpose and authority. A Applicability. Unless provided otherwise this chapter shall apply to the taxation of all marijuana cultivated within the Borough for commercial or retail sale purposes, including marijuana cultivated by a standard marijuana cultivation facility and a limited marijuana cultivation facility. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 2 of 20 Version 1 Page 23 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 III 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 AGENDA ITEM #2.b. B Purpose The purpose of this section is to provide for the levy of an excise tax on marijuana cultivated within the Borough by any mariivana cultivation facility, and the enforcement of such tax. C Authority This chapter and the regulations related to marijuana establishments herein are adopted pursuant to the authority granted by AS 17 38.100 and 29.35.010(6). 3.70.020 Definitions. "Flower and bud" means the hairy, sticky, or crystal -covered parts of mature female marijuana plants generally harvested for their high potency content. "Marijuana" has the meaning given in AS 17.38.900. "Marijuana cultivation facility" has the meaning given in AS 17.38.900 and includes both a standard marijuana cultivation facility and a limited marijuana cultivation facility as licensed under 3 AAC 306.300. "Mariivana product manufacturing facility" has the meaning given in AS 17.38.900. "Mariivana testing facility" has the meaning given in AS 17.38.900. "Ownership change" means: 1 If the licensee is a partnership including a limited partnership any change in the identity of the partners or in the ownership percentages held by any partners; 2 If the licensee is a limited liability company, any change in the identity of the members or in the ownership percentage held by any member: or 3 If the licensee is a corporation any sale of corporate stocks to a person not currently an owner, or any change of the percentage ownership of an existing shareholder. "Retail marijuana store" has the meaning given in AS 17.38.900. "Transfer" means the exchange of marijuana, as defined under AS 17.38.900, with or without consideration or by barter, between marijuana establishments, or within marijuana establishments possessing multiple permits for commercial purposes. 3.70.030 Excise tax on marijuana. A The Borough hereby levies an excise tax on all marijuana cultivated in any facility licensed pursuant to 3 AAC 306.300 including standard marijuana cultivation facilities, and limited mariivana cultivation facilities. B All nonexempt marijuana transferred from a marijuana cultivation facility shall be taxed as follows: 1 Any part of the flower and bud as defined in 15 AAC 61.290, will be taxed, on a per ounce basis at a rate equal to twenty percent of any per -ounce excise tax imposed by the State of Alaska on the date of transfer pursuant to AS 43.61.010, or $10.00 per ounce, whichever is greater: 2 All remaining portions of the plant not included in subsection (B)(1)(a) of this section will be taxed on a per -ounce basis at a rate equal to twenty percent of any per -ounce excise tax imposed by the State of Alaska on the date of transfer pursuant to AS 43.61.010 or $3.00 per ounce, whichever is greater. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations F Ordinance No. FY2017-27 Page 3 of 20 Version 1 Page 24 of 215 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 AGENDA ITEM #2.b. C. A marijuana cultivation facility that is also licensed as a marijuana product manufacturing facility must pay tax on all marijuana transferred from the cultivation facility to the product manufacturing facility for the month in which the marijuana was transferred. D. A marijuana cultivation facility that is also licensed as a retail marijuana store must pay tax on all marijuana transferred from the cultivation facility to the retail marijuana store for the month in which the mariivana was transferred. 3.70.040 Exemptions. A. The tax imposed under this chapter does not apply to marijuana if the state of Alaska prohibits the IevVing of this tax under AS 17.38. B. Transfers to a licensed mariivana testing facility are exempt from the excise tax on marijuana. 3.70.050 Tax returns. A. On or before the last day of each calendar month a licensee shall submit to the finance director a tax return, upon forms provided by the finance director, for each license, and submit payment for the taxes due as prescribed by the finance director. B. The return shall be signed under penalty of perjury by the licensee or agent and shall include: 1. A copy of the tax return for that month submitted bV the licensee to the Alaska Department of Revenue in accordance with 15 AAC 61.010; 2. The name and address of the licensee; 3. The name and address of the person filing the return, if different from the licensee; 4. The number of the zoning compliance permit issued under KIBC 17.15.060; 5. The name under which the mariivana cultivation facility is being operated; 6. A report setting forth the total amount of marijuana transferred from the marijuana cultivation facility in ounces, with fractional ounces calculated to the third decimal place, for the preceding month; 7. The amount of tax due; 8. Such other information and supporting documentation which may be required bV the finance director. C. A mariivana cultivation facility licensed under this chapter shall file a tax return each month, even if it did not cultivate or transfer any marijuana in the borough during the preceding month. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 4 of 20 Version 1 Page 25 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 AGENDA ITEM #2.b. D The taxes imposed under this chapter and the return required by this section must be received by the finance director, or postmarked on or before the last day of each calendar month following the month covered by the return. E A separate tax return must be fled for each location when a taxpayer is operating in several locations within the borough. 3.70.0601nvoluntary returns. If a licensee fails to file a return as required by this chapter, or when the finance director finds that a return is not supported by the records to be maintained pursuant to this chapter, the finance director may prepare and file a return on behalf of the licensee. Involuntary returns filed under this section may be premised upon any information that is available to the finance director, including among other things a copy of the materials the applicant submitted to the Alaska Department of Revenue in accordance with 15 AAC 61.010, and comparative data for similar businesses. A licensee for whom an involuntary return is filed under this section shall be subject to liability for the tax stated in the return as well as subject to the penalties and interest provided for in this chapter. A return prepared by the finance director is prima facie, good and sufficient for all legal purposes However, nothing prevents the licensee from presenting evidence on appeal to rebut the presumed sufficiency of a return prepared by the finance director, nor does the presumption of sufficiency alter the parties' respective burdens of proof once the licensee has presented evidence to rebut that presumption. 3.70.070 Amended tax returns. A Any tax return filed hereunder may be amended by the licensee within one year after the due date of the tax return being amended No amendment by the licensee shall be allowed after this one-year period. B Any tax return prepared and filed by the finance director on behalf of the licensee may be amended by the licensee within one year of the date filed by the finance director. No amendment by the licensee shall be allowed after this one-year period. 3.70.080 Application of payments. Any payment submitted to the finance director for any taxes, penalties, interest, or cost due under any provision of this chapter or any return or any finding or determination by the finance director under this chapter shall be credited to the monthly tax period for which it was remitted first to the payment of costs and then to penalties, interest, and taxes in that order. 3.70.090 Prohibited acts and penalties. A No person shall operate a marijuana cultivation facility within the borough without complying with the provisions of this chapter. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2017-27 Page 5 of 20 Version 1 Page 26 of 215 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 AGENDA ITEM #2.b. B. A penalty of ten (10) percent of the taxes due shall be incurred automatically when a person fails to pay the full amount of the tax due under this chapter within seven calendar days following its due date. 1 The penalty shall be computed on the unpaid balance of the tax liability as determined by the finance director. 2 Notice of the penalties incurred and to be incurred shall be given to the person responsible for payment of the taxes or for filing the return or report when such tax payment or return or report is delinquent for seven calendar days after its due date. 3 The penalties provided for in this section shall be in addition to all other penalties and interest for under this chapter. C If a properly filed amended return reduces the total tax liability or the tax required to be paid or the determent reduces the tax liability, the related penalty will be reduced accordingly. D All penalties and remedies enumerated in this chapter are cumulative. E Unless otherwise provided in this section, any person who violates or fails to comply with the provisions of this chapter shall be personally liable for all costs interests penalties and taxes due under this chapter plus a penalty equal to 30 percent of the tax due For good cause shown the finance director may waive or reduce all or part of any Penalty imposed under this subsection. 3.70.100 Civil fraud. A. A civil fraud penalty may be assessed against a person in addition to a penalty for failure to file or failure to pay. B. If it is determined by the finance director that a tax deficiency or part of a tax deficiency is due to fraud, then a penalty will be added to the tax. The penalty is 50 percent of the deficiency due or $500.00 whichever is greater. The penalty is computed on the total amount of the deficiency due. C. Fraud is the intentional misrepresentation of a material fact with the intent to evade payment of tax which the person is believed to owe The person must have had knowledge of its falsity and intended that it be acted upon or accepted as the truth. D. To establish civil fraud, the finance director must prove by clear and convincing evidence that: 1. The tax liability was understated: and 2. The understatement was the result of an intent to evade tax. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 6 of 20 Version 1 Page 27 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 AGENDA ITEM #2.b. E An intent to evade tax may be demonstrated by any relevant evidence, including but not limited to the following: 1 The person has provided false explanations regarding understated or omitted amounts of marijuana cultivated or transferred: 2 The person has provided falsified or incomplete source documents; 3 The person has not justified an omission or understatement of a significant amount of mariivana cultivated or transferred: 4 The person has substantially overstated a deduction and has failed to justify the overstatement. 3.70.110 Tax lien. A If any person who is liable to pay a tax or license fee under this chapter neglects or refuses to pay the tax or licensee fee after demand, the amount, including interest, additional amounts or assessable penalty together with costs, is a lien in favor of the borough upon all property and rights to property, real or personal belonging to that person. B The lien imposed by this section arises upon delinquency and continues until the amount is paid or a iudgment against the person arising out of the liability is satisfied. C A lien arising out of a tax due under this chapter, including the penalties and interest on the tax shall be prior, paramount and superior to all other liens mortgages, hypothecation, conveyances and assignments upon all real and personal property of the person liable for the tax and upon all the real and personal property used with the permission of the owner to carry on the business which is subject to the tax. D The lien on personal and real property may be enforced in a manner similar to that provided by AS 29 45 300 through 29 45 480 for enforcement of real and personal property tax liens. 3.70.120 Interest on unpaid tax. In addition to any penalties imposed by this chapter, interest at the rate of twelve (12) percent per annum shall be charged on the unpaid balance of delinquent taxes. 3 70 130 Taxpayer, licensee or other person remedies. A Any person aggrieved by any action of the finance director in issuing, suspending, revoking or refusing to issue any license under this chapter or in fixing the amount of taxes penalties interest or costs under this chapter may apply to the borough clerk and request a hearing within 30 days from the date the finance director mails the notice of the finance director action Upon timely application under this subsection or a hearing, the assembly shall hold a hearing to determine whether a correction is warranted. Hearinqs before the assembly under this subsection may at the option of the assembly, be conducted by an administrative hearing officer designated by the assembly. The hearing officer shall conduct the hearing and prepare findings and conclusions. These findings Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations F Ordinance No. FY2017-27 Page 7 of 20 Version 1 Page 28 of 215 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 AGENDA ITEM #2.b. and conclusions must be forwarded to the assembly for adoption, resection, or modification and issuance of a final order or decision by the assembly. An application for a hearing must notify the borough clerk of the specific action complained of and amount of tax interest cost or penalty contested and the reason it is contested. After receipt of a written decision by the assembly, a person may appeal to the Superior Court of the Third Judicial District in accordance with the Alaska Appellate Court rules. The person shall be given access to the department's file in the matter for preparation of the appeal B A request for appeal is filed on the date it is personally delivered or is delivered to the borough clerk by the United States Postal Service, the date of the postmark stamped on the properly addressed cover in which the request is mailed If the due date falls on Saturday Sunday, or a borough observed holiday, the due date is the next working day. A current mailing address must be provided to the borough clerk with the request for appeal and any change in mailing address after the request for appeal is filed must be reported to the borough clerk. C. If the notice to the person pursuant to subsection (A) of this section shows an amount due the uncontested portion of the amount due must be paid within 30 days after the date of the notice. If the uncontested amount is not paid within 30 days, collection action will be taken on that amount even if the person has filed a request for appeal. Payment of the total amount due may be made any time before the hearing. If the finance director has reason to believe that collection of the total amount due might ieopardize by delay, immediate payment of the total amount will be demanded and the finance director may pursue any collection remedies provided by law. Payment in full does not affect the person's right to a hearing. D. If a person requests a hearing and fails to appear at the hearing, the assembly or hearing officer may issue a decision without taking evidence from that person, unless that person shows reasonable cause for failure to appear within seven days after the date scheduled for the hearing. E. Taxes, licenses fees, penalties and interest declared to be due in the final administrative decision must be paid within 30 days after the date of the decision, or a bond must be filed with the court in accordance with the Alaska Court Rules of Appellate Procedures. 3.70.140 Inspection and maintenance of documents and records. A. Marijuana cultivation facilities shall keep complete and accurate records to support the information to be included in the monthly tax returns required by this chapter, including information regarding transfers. The records must include an accounting that inventories live plants, trimmings, and any dried product on the first and last day of each month including: Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 8 of 20 Version 1 Page 29 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 AGENDA ITEM #2.b. 1 An invoice sales receipt or other record memorializing the transfer of mariivana from a marijuana cultivation facility, which must separately state the amount of tax due after the sale or transfer. B Any person selling marijuana at a retail marijuana store who cannot produce records showing taxes were paid on any marijuana in their possession are secondarily liable for the unpaid tax on marijuana. C Persons subiect to the chapter shall keep such other documents and records as the finance director prescribes. D The finance director may, during business hours enter the business premises of a licensee under this chapter, so far as it may be necessary for the purpose of examining such products and the related business records. 3.70.150 Administrative regulations. The finance director may adopt policies and procedures providing for the application and interpretation of this chapter and provide forms for reporting and collecting the tax imposed by this chapter. 3.70.160 Confidentiality of records. A All tax returns documents records and/or reports filed with the borough pursuant to this chapter and all data obtained from tax returns documents, records, and/or reports are confidential as provided by KIBC 2 40.100 and may not be released for inspection by any person except the mayor, treasurer, borough attorney, or the assembly: provided, however, that such data may be released upon court order. B It is the duty of the borough clerk to safely keep tax returns documents, records, and/or reports and all data thereof secure from public and private inspection except as Provided by this chapter. C This section does not prohibit the borough from compiling and publishing statistical evidence concerning the data submitted; provided that no identification of particular tax returns documents records and/or reports is made. Nothing in this section shall be deemed to prohibit the internal auditor from examining the tax returns, documents, records and/or reports; provided that no information obtained from specific or identified tax returns shall be made available to persons other than those authorized to review them under subsection (A) of this section. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Chapter 5.02 MARIJUANA BUSINESSES Amending KIBC Chapters 3, 5, And 17 To Include Regulations F Ordinance No. FY2017-27 Page 9 of 20 Version 1 Page 30 of 215 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 AGENDA ITEM #2.b. 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 mariivana businesses—_general. 5 02 060 Issuance of borough license for marijuana businesses. 5.02.070 Renewal of borough license for mariivana businesses. 5 02 060 Ownership change and transfer of borough license for mariivana businesses. 5.02.090 Suspension or revocation of license. 5.02.100 Fees. 5.02.010 Prohibitions. The commercial manufacture or sale of edible marijuana products as define by state law is prohibited. 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. 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 state troopers on the number of trouble reports at the place of business. Kodiak Island Borough, Alaska Deletion – Red, Strikeout Insertion – Bold, Blue, Underlined Ordinance No. FY2017-27 Page 10 of 20 Version 1 Page 31 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 AGENDA ITEM #2.b. 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. 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 Mariivana Control Board. 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 Kodiak Island Borough, Alaska Deletion – Red, Strikeout Insertion – Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2017-27 Page 11 of 20 Version 1 Page 32 of 215 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 AGENDA ITEM #2.b. 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 Vear. 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. PaV licensing fee per KIBC 5.02.100. 5.02.070 Renewal of borough license for marijuana businesses. A. Mariivana businesses are required to renew their marijuana business license annually with the finance department. In order to renew their license a mariivana business must: 1. Provide a copy of the State of Alaska mariivana 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 31 each calendar year. On or before June 30 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 KIBC 5.02.070(B) maV be made on a case by case basis, based on the status of the mariivana business' license renewal application with the Alaska Mariivana Control Board. 5.02.080 Ownership change and transfer of borough license for mariivana businesses. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 12 of 20 Version 1 Page 33 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 AGENDA ITEM #2.b. A A license under this chapter is not transferrable and expires on the date of an ownership change. B Transferors must surrender all licenses not later than 5 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. 5.02.090 Suspension or revocation of license. A. A licensee shall surrender a license with 5 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. 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. Chapter 17.15 GENERAL PROVISIONS AND USE REGULATIONS Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 13 of 20 Insertion — Bold, Blue, Underlined Version 1 Page 34 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 577 578 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 617 618 619 620 AGENDA ITEM #2.b. 17.15.120 Buffers for mariivana businesses In addition to any buffers imposed by anv other applicable state or federal law, mariivana businesses may not be established on or within 1000 600 feet of school grounds. Chapter 17.20 FEES 17.20.010 Fees. A. A part of the costs for maps, legal publications, notices to affected property owners, and other administrative expenses involved in processing land use change applications shall be covered by a fee, established by resolution of the assembly, payable to the borough. The fees apply to the following: 1. A- Conditional use permit; 2. 6- Contract zoning; 3. G Planning and zoning commission review; 4. D- Variance; and 5. € Zoning change;.- and 5. Zoning compliance permit. Chapter 17.25 Definitions 17.25.020 A definitions. "Agricultural activities" means the production, keeping, or maintenance, for sale, lease, or personal use, of plants and animals useful to people. This does not include any uses involving or related to commercial marijuana activities. "Airport elevation" means the established elevation of the highest point of the usable landing area. Airport, Municipal. "Municipal airport" means the City of Kodiak Municipal Airport and Lilly Lake. Airport, Utility. "Utility airport" means any airport in the borough designed and/or constructed to serve aircraft in approach category A (speed less than 91 knots). "Alley" means a public way designed and intended to provide only a secondary means of access to any property abutting thereon "Alteration" means any change, addition, or modification in the construction, location, or use classification. Apartment House. For "apartment house," see "Dwelling, multiple -family," KIBC 17.25.050. "Approach surface" means an approach surface longitudinally centered on the extended runway centerline and extending outward and upward from each end of a runway. The inner edge of the approach surface is the same width as the runway and it expands uniformly to a width of 1,500 feet of each end of the runway. The approach surface extends for a horizontal distance of 5,000 feet at a slope of 20:1. No building or structure may be constructed or erected nor may any other object be stored or placed in such a manner as to protrude into the approach surfaces. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 14 of 20 Version 1 Page 35 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 AGENDA ITEM #2.b. A. The approach surfaces for the municipal airport extend upward and outward from the south end of the existing lake surface (towards Larch Street) and the north end of the gravel runway (Von Scheele Way) only. "Automobile wrecking" means the dismantling of used motor vehicles or trailers or the storage or sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. 17.25.140 M definitions "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 mariivana 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 mariivana to prepare topical or oral administrations food drink, or other products. "Marijuana Cultivation Limited" means a legally licensed limited cultivation facility as defined by state law. State law dictates that an area less than 500 square feet may be under cultivation. "Marijuana Cultivation Standard" means a legally licensed standard cultivation facility as defined by state law. No limit is set by state law on size of area under cultivation. "Mariivana manufacturing facility" means a legally licensed commercial marijuana product manufacturing facility as defined by state law, which can 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 These facilities may not sell mariivana products to consumers. "Marijuana retail store" means a legally licensed commercial retail marijuana store as defined by state law. A marijuana retail store may sell marijuana accessories as defined by state law. "Mariivana testing facility" means a legally licensed commercial marijuana testing facility defined by state law that is registered to analyze and certify the safety and potency of mariivana. "Motel" means a group of one or more detached or semidetached buildings containing two or more individual dwelling units and/or guest rooms, designed for or used temporarily by automobile tourists or transients, with a garage attached or parking space conveniently located to each unit, including groups designated as auto courts, motor lodges, or tourist courts. Chapter 17.50 C —CONSERVATION DISTRICT 17.50.040 Conditional Uses The following land uses and activities may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. All of the conditional uses in the NU natural use zoning district; B. Airstrips; C. Commercial livestock grazing, excluding those areas historically established for livestock grazing as described in KIBC17.50.020(B), where it is a permitted use; Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2017-27 Page 15 of 20 Version 1 Page 36 of 215 666 667 668 669 670 671 672 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 708 709 710 AGENDA ITEM #2.b. D. Lodges that have provisions for more than six clients; E. Logging camps and timber harvesting support facilities (e.g., log transfer facilities), including timber products processing facilities; F. Nonrecreational mineral extraction activities and related structures; G. Seafood processing facilities and related structures; H. Transportation and utility facilities not otherwise permitted and not otherwise used in conjunction with permitted uses (e.g., roads, pipelines, communications facilities, etc.); and I. Recreational vehicle parks- and J Mariivana cultivation limited ton lots equal to or greater than 5 acres). Chapter 17.60 RR2 — RURAL RESIDENTIAL TWO DISTRICT 17.60.030 Conditional uses. The following land uses may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Fireworks stands; aad B. Recreational vehicle parksrLand C. Marijuana cultivation, limited ton lots equal to or greater than 2 acres). Chapter 17.90 B — BUSINESS DISTRICT 17.90.020 Permitted uses. The following land uses and activities are permitted in the business district: A. Accessory buildings; B. Assembly halls; C. Art galleries; D. Automobile repair garages and dealerships; E. Banks; F. Building material suppliers; G. Dry-cleaning establishments; H. Eating and drinking establishments; I. Fraternal organizations and private clubs; J. Funeral parlors; K. Gasoline service stations; L. Government offices; M. Hotels; N. Laundry establishments; O. Libraries; P. Machine shops; Q. Marinas and boat moorage; R. Mini -warehouses; Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 16 of 20 Version 1 Page 37 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 AGENDA ITEM #2.b. S. Motels; T. Multiple -family dwellings; U. Museums; V. Offices; W. Outdoor storage; X. Printing shops; Y. Professional offices and clinics; Z. Public parks and open spaces; AA. Recreational related uses; BB. Retail stores and services; CC. Single-family and two-family dwellings, if located within a structure containing a permitted business use, not exceeding 50 percent of the area of the structure, and not located on the street level of the structure except that an owner -occupied single-family dwelling may be allowed within a street level business structure, so long as the residential portion is predominantly located in the rear of the structure (away from the commercial building facade(s) for corner and multi -frontage lots), the use of the dwelling is subsidiary and incidental to the principal commercial use, and there is no indication, other than a separate entrance on the street level building facade, that a residential use is located within the structure; DD. Theaters; aad EE. Radio stations; FF. Marijuana retail stores: and GG. Marijuana testing facilities. 17.90.030 Conditional uses. The following land uses and activities may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Churches; B. Hospitals; C. Recreational vehicle parks; D. Mobile home parks; and E. Warehouses-; F. Marijuana cultivation, limited: G. Marijuana cultivation, standard: and H. Marijuana manufacturing facilities. Chapter 17.105 1 — INDUSTRIAL DISTRICT 17.105.010 Permitted uses. The following uses of the land are permitted in the industrial district: A. All uses permitted in B business district, except residential; B. Aircraft, automobile and truck assembly or remodeling; C. Asphalt batch and mixing plant, manufacturing or refining; Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations IF.. Ordinance No. FY2017-27 Page 17 of 20 Version 1 Page 38 of 215 756 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 AGENDA ITEM #2.b. D. Assembly of music and vending machines; E. Auction business; F. Beverage manufacturing; G. Boat building, repair and storage; H. Cabinet shops; I. Concrete mixing batch plants; J. Coal storage yards; K. Dwelling units for a watchman or caretaker on the premises; L. Dyeing plants; M. Gravel or sand extraction; N. Junkyards, wrecking, salvage or scrap metal operations; O. Lumber mills and sawmills; P. Lumberyard, building material manufacture or sales; Q. Machine or blacksmith shops; R. Manufacturing, servicing or repair of light consumer goods, such as appliances, batteries, furniture, and garments; S. Metal working or welding shops; T. Motor freight terminals; U. Outdoor storage; V. Paint shops; W. Public uses; X. Rock crushers, Y. Seafood processing establishments and their dormitories; Z. Sewage treatment plants; AA. Slaughterhouses; BB. Steel fabrication shops or yards; CC. Vehicle impound lots; DD. Vocational or trade schools; EE. Utility installations; and FF. Warehousing within an enclosed structure -1 GG. Marijuana cultivation. limited; HH. Marijuana cultivation. standard; If. Mariivana manufacturing facilities; JJ. Mariivana retail stores; and KK. Mariivana testing facilities. Chapter 17.110 RB — RETAIL BUSINESS DISTRICT 17.110.020 Permitted principal uses and structures. The following land uses and activities are permitted in the retail business district: A. Automobile service stations; B. Boardinghouses, hotels and motels; C. Commercial recreational facilities (e.g., health clubs, racquetball courts, ice rinks, etc.); Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 18 of 20 Version 1 Page 39 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 801 802 803 804 805 806 807 808 809 810 811 812 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 829 830 831 832 833 834 835 836 837 838 839 840 841 842 843 844 AGENDA ITEM #2.b. D. Multifamily dwellings (not located on the street level of the structure); E. Parks and playgrounds; F. Retail stores and service shops (e.g., beauty shops, grocery stores, clinics, professional offices, etc.); G. Restaurants and bars; H. Single-family and two-family dwellings, if located within a structure containing a permitted business use, not exceeding 50 percent of the area of the structure, and not located on the street level of the structure; I. Schools/daycare facilities; J. Shopping centers; and K. Theaters, auditoriums, community halls -Land J. Marijuana retail stores. 17.110.040 Conditional uses. The following land uses and activities may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Automobile and boat sales, storage, and repair; B. Churches; C. Institutional facilities (e.g., hospitals, fire stations, group homes, correctional facilities, etc.); D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; E. Utility and service uses (e.g., substations, etc.); F. Warehouses; G. Wholesaling and distributing operations (excluding bulk fuel operations); aad H. Recreational vehicle parks; I. Marijuana cultivation; limited: J. Mariivana cultivation, standard: and K. Mariivana manufacturing facilities. Chapter 17.120 LI — LIGHT INDUSTRIAL DISTRICT 17.120.020 Permitted principal uses and structures. The following land uses and activities are permitted in the light industrial district: A. Automobile service stations; B. Automobile and boat sales, storage, and repair; C. Manufacturing (e.g., boat building, crab pot construction, cabinet making, welding and fabrication, etc.); D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; E. Retail stores and service shops (e.g., beauty shops, clinics, grocery stores, professional offices, etc.); F. Warehouses; G. Wholesaling and distributing operations (excluding bulk fuel operations); Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 19 of 20 Insertion — Bold, Blue, Underlined Version 1 Page 40 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 845 846 847 848 849 850 851 852 853 854 855 856 857 858 859 860 861 862 863 864 865 866 867 868 869 870 AGENDA ITEM #2.b. H. A dwelling unit used by the owner or by a caretaker, manager, and family when located on the premises where they are employed in such a capacity; I. Utility and service uses (e.g., substations, etc.); and J. Kodiak Municipal Airport (landing strip and Lilly Lake float plane access), until adequate replacement facilities are established-; K. Marijuana cultivation. limited; L. Marijuana cultivation, standard; M. Marijuana manufacturing facilities; N. Marijuana retail stores; and O. Marijuana testing facilities. Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an ordinance takes effect upon adoption or at a later date specified in the ordinance.) ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 12017. KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined ATTEST: Nova M. Javier, MMC, Clerk Ordinance No. FY2017-27 Page 20 of 20 Version 1 Page 41 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. Page 42 Ot 21 b Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... m 5 U V1 w B E @ N > N C O C �iN O CD N c U j "p '.�-. O :03 @ C O C N O O O U @ - U @ c @ O) N wU O) L @ w w w(Ov E 9 W C C C J C E C W _ M CL CoN @� d C � oOE 0 C*4+ mE Y� N E@ Ow0M=L`O C O C-07 U dO.j V- 3 w E o o II M Na C •VIcy uO� o — o o a u d oMw c 7 2 E m m F- �TI�1 w V1 0) c 0 U — _ (6 m IEo U .Pop Q rn E c � L L N +r U`o M 4-- � o n C � f0 `o c G Q t Page 42 Ot 21 b Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. Page 43 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... C' � Q N o a a T C U E CL U Q Q m a _ T m U U) " o c m > n U a a CL .� U U Q a ++ N N � .S 00 0 O U C R 4� O N (Cp v N (B ILEI 'C C E 41 VV L 0.3 J d) a� N M m Y O m m ym N Z Ea • f� U m a �I N 1�1 47 ELN m E N z W C U) O C U ❑ E J m x O m w �m a U `1 j N ° a 01 N O C m Ln } m E h N N �� m- EF} EA rn Zy E � x h W y d UY Page 43 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Memorandum AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Date: March 16, 2017 To: Planning and Zoning Commission From: Community Development Department RE: Case No. 17-018 Supplemental Memo and Updated Staff Recommendations At the March 15, 2017 work session, the Commission discussed several proposed changes to the Title 17 regulations included in Ordinance No. FY 2017-27. Based on this discussion, staffed drafted a substitute ordinance for the Commission's consideration at the March 22, 2017 regular meeting. A summary of the changes is as follows: • The 20,000 square foot parcel size qualifier for limited cultivation as a conditional use in the C -Conservation District was changed to 5 acres. • The 20,000 square foot parcel size qualifier for limited cultivation as a conditional use in the RR2-Rural Residential Two District was changed to 2 acres. • Marijuana testing facilities was removed as a conditional use in the RR2-Rural Residential Two District. • Limited cultivation and marijuana testing facilities were removed as conditional uses in the RR1-Rural Residential One District. • Marijuana testing facilities was added as a permitted use in the B -Business, I -Industrial, and LI -Light Industrial Districts. • The school zone buffer was extended from 500 feet to 1,000 feet. UPDATED RECOMMENDATION Staff recommends that the Commission approve the substitution with Ordinance No. FY2017-27 Version 2 and subsequently approve the main motion, as amended. CURRENT MOTION BEFORE THE COMMISSION Recommend that the Assembly of the Kodiak Island Borough approve Ordinance No. FY2017-27 amending Title 17 KIBC (Zoning) and to adopt the findings of fact listed in the staff report dated February 1, 2017 and entered into the record for this case as "Findings of Fact" for Case No. 17-018. Case No. 17-0101nfonnation Packet Page 44 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 AMEND BY SUBSTITUTION Should the Commission wish to amend by substitution, the appropriate motion is: Move to amend Ordinance No. FY 2017-27 by substitution with Ordinance FY2017-27 Version 2. The main motion becomes: Recommend that the Assembly of the Kodiak Island Borough approve Ordinance No. FY2017-27, as amended by substitution, amending Title 17 KIBC (Zoning) and to adopt the findings of fact listed in the staff report dated February 1, 2017 and entered into the record for this case as "Findings of Fact" for Case No. 17- 018. FINDINGS OF FACT (KIBC 17.205.020) 1. Registered voters in the Kodiak Island Borough voted to legalize select marijuana establishments under State of Alaska Ballot Measure #2 in 2014. 2. AS 17.38.110 provides for the implementation of local controls for marijuana establishments. 3. Current KIBC Title 17 (Zoning) does not include regulatory requirements for marijuana establishments and does not list them as a permitted use in any zoning district. 4. The amendments to Title 17 KIBC provide the regulatory requirements for marijuana establishments in a manner consistent with similar uses within the Kodiak Island Borough. 5. The amendments to Title 17 KIBC are consistent with the adopted Comprehensive Plan goals and policies related to land use and economy. 6. The Planning and Zoning Commission recommends approval of the amendments to Title 17 KIBC. Case No. 17-0181nformation Packet Page 45 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Version 2 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-27 Introduced by: Drafted by: CDD Director Introduced on: Public Hearing Date: Adopted on: AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, TITLE 5 BUSINESS LICENSES AND REGULATIONS, AND TITLE 17 ZONING TO PROVIDE FOR REGULATIONS RELATING TO MARIJUANA BUSINESSES WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has provided for the legalization of various marijuana -related activities on a specific timeline; and WHEREAS, AS 17.38.110 provides for local government control not in conflict with state law; and WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 17.38.110; and WHEREAS, the Kodiak Island Borough formed a Marijuana Task Force through the adoption of Kodiak Island Borough Resolution No. FY2016-31; and WHEREAS, the Marijuana Task Force developed recommendations for regulating marijuana businesses in the Kodiak Island Borough; and WHEREAS, in accordance with AS 29.40.020 the Planning and Zoning Commission discussed the proposed changes to Title 17 (Zoning) at work sessions, regular meetings, or special meetings on February 8, 2017, February 15, 2017, March 15, 2017, and March 23, 2017; and WHEREAS, the Planning and Zoning Commission, following the public hearing at the March 23, 2017 regular meeting, voted to transmit recommendations as amended for revisions to Title 17 to the Borough Assembly; and WHEREAS, the Borough Assembly discussed the proposed changes at work sessions and regular meetings on March 30, 2017, April 6, 2017, April 13, 2017, and April 20, 2017; and WHEREAS, the Borough Assembly, following the public hearing at the April 20, 2017 regular meeting, voted to adopted Ordinance FY2017-27. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Case No. 17-018 Information Packet Ordinance No. FY2017-27 Page 1 of 9 Version 2 Page 46 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Titles 3, 5, 17 of the Kodiak Island Borough Code of Ordinances are amended to read as follows: [PLACEHOLDERi [PLACEHOLDER] Title 3 REVENUE AND FINANCE Title 5 BUSINESS LICENSES AND REGULATIONS Chapter 17.15 GENERAL PROVISIONS AND USE REGULATIONS 17.15.120 Buffers for marijuana businesses In addition to any buffers imposed by any other applicable state or federal law, mariivana businesses may not be established on or within 1000 508 feet of school grounds. Chapter 17.20 FEES 17.20.010 Fees. A. A part of the costs for maps, legal publications, notices to affected property owners, and other administrative expenses involved in processing land use change applications shall be covered by a fee, established by resolution of the assembly, payable to the borough. The fees apply to the following: 1. A-. Conditional use permit; 2. ✓-. Contract zoning; 3.0- Planning and zoning commission review; 4. B- Variance; and 5. € Zoning change;.- and 6. Zoning compliance permit. 13. Zoning GemplianGe perm -its for —...a.qaa..a—businesses shallbe paid At R Falls Of 20 percent of the current StRtP of Alaska marijuana business licensing appliratign fees. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 2 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-01B Info0nation Packet Page 47 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-p P & Z REGULAR MEETING'. MARCH 22, 2017 89 These feeq will he establishedb Fesel ition of theti assembly per KIRG 90 47.'^x-.-�0.^010(A)- 91 92 Chapter 17.25 93 Definitions 94 95 17.25.020 A definitions. 96 "Agricultural activities" means the production, keeping, or maintenance, for sale, lease, or 97 personal use, of plants and animals useful to people. This does not include any uses 98 involving or related to commercial marijuana activities. 99 "Airport elevation" means the established elevation of the highest point of the usable landing 100 area. 101 Airport, Municipal. "Municipal airport" means the City of Kodiak Municipal Airport and Lilly Lake. 102 Airport, Utility. "Utility airport" means any airport in the borough designed and/or constructed to 103 serve aircraft in approach category A (speed less than 91 knots). 104 "Alley" means a public way designed and intended to provide only a secondary means of 105 access to any property abutting thereon 106 "Alteration" means any change, addition, or modification in the construction, location, or use 107 classification. 108 Apartment House. For "apartment house," see "Dwelling, multiple -family," KIBC 17.25.050. 109 "Approach surface" means an approach surface longitudinally centered on the extended runway 110 centerline and extending outward and upward from each end of a runway. The inner edge of the 111 approach surface is the same width as the runway and it expands uniformly to a width of 1,500 112 feet of each end of the runway. The approach surface extends for a horizontal distance of 5,000 113 feet at a slope of 20:1. No building or structure may be constructed or erected nor may any 114 other object be stored or placed in such a manner as to protrude into the approach surfaces. 115 A. The approach surfaces for the municipal airport extend upward and outward from the south 116 end of the existing lake surface (towards Larch Street) and the north end of the gravel runway 117 (Von Scheele Way) only. 118 "Automobile wrecking" means the dismantling of used motor vehicles or trailers or the storage or 119 sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. 120 121 17.25.140 M definitions 122 "Marijuana" means all parts of the plant of the genus cannabis whether growing or not 123 the seeds thereof, the resin extracted from anv part of the plant and every compound 124 manufacture salt, derivative mixture or preparation of the plant its seeds or its resin 125 including marijuana concentrate: "marijuana" does not include fiber produced from the 126 stalks oil or cake made from the seeds of the plant sterilized seed of the plant which is 127 incapable of germination or the weight of any other ingredient combined with marijuana 128 to prepare topical or oral administrations, food, drink, or other products. 129 "Mariivana Cultivation Limited" means a legally licensed limited cultivation facility as 130 defined by state law. State law dictates that an area less than 500 square feet may be 131 under cultivation. 132 "Marijuana Cultivation Standard" means a legally licensed standard cultivation facility 133 as defined by state law. No limit is set by state law on size of area under cultivation. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 3 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-0181nformalion Packet Page 48 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2. b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22,20`17 134 "Marijuana manufacturing facility" means a legally licensed commercial marijuana 135 product manufacturing facility as defined by state law, which can purchase marijuana, 136 manufacture prepare and package marijuana products and sell marijuana and 137 marijuana products to other marijuana product manufacturing facilities and to retail 138 marijuana stores These facilities may not sell marijuana products to consumers. 139 "Marijuana retail store" means a legally licensed commercial retail marijuana store as 140 defined by state law. A marijuana retail store may sell marijuana accessories as defined 141 by state law. 142 "Marijuana testing facility" means a legally licensed commercial marijuana testing facility 143 defined by state law that is registered to analyze and certify the safety and potency of 144 marijuana. 145 "Motel" means a group of one or more detached or semidetached buildings containing two or 146 more individual dwelling units and/or guest rooms, designed for or used temporarily by 147 automobile tourists or transients, with a garage attached or parking space conveniently located 148 to each unit, including groups designated as auto courts, motor lodges, or tourist courts. 149 150 Chapter 17.50 151 C —CONSERVATION DISTRICT 152 153 17.50.040 Conditional Uses 154 The following land uses and activities may be allowed by obtaining a conditional use permit in 155 accordance with the provisions of Chapter 17.200 KIBC: 156 A. All of the conditional uses in the NU natural use zoning district; 157 B. Airstrips; 158 C. Commercial livestock grazing, excluding those areas historically established for livestock 159 grazing as described in KIBC17.50.020(B), where it is a permitted use; 160 D. Lodges that have provisions for more than six clients; 161 E. Logging camps and timber harvesting support facilities (e.g., log transfer facilities), including 162 timber products processing facilities; 163 F. Nonrecreational mineral extraction activities and related structures; 164 G. Seafood processing facilities and related structures; 165 H. Transportation and utility facilities not otherwise permitted and not otherwise used in 166 conjunction with permitted uses (e.g., roads, pipelines, communications facilities, etc.); and 167 I. Recreational vehicle parks;.- and 168 J Marijuana cultivation limited fon lots equal to or greater than 5 acres 2&000-scfuare 169 feetj, 170 171 Chapter 17.60 172 RR2 — RURAL RESIDENTIAL TWO DISTRICT 173 174 17.60.030 Conditional uses. 175 The following land uses may be allowed by obtaining a conditional use permit in accordance 176 with the provisions of Chapter 17.200 KIBC: 177 178 A. Fireworks stands; and Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 4 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-0181nformalion Packet Page 49 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 179 B. Recreational vehicle parks -Land 180 C. Mariivana cultivation, limited ton lots equal to or greater than 2 acres 24099-squa4!e 181 feet).- and 182 D. ee...::,,ana testing s.,_a.a__ 183 184 Chapter —47.77 185 0 + RURAL RESIDENTIAL DISTRICT 186 187 . 188 189 with the PPOViGiOR6 of GhapteF 4.200 190 191 192 Q RRAR Rt A _i vehicle parks.; 193 G. MaF*juaRa Gultivatien, limited (an lets equal to OF oFeateF than 20,000 square feet)�'� 194 . 195 196 Chapter 17.90 197 B — BUSINESS DISTRICT 198 199 17.90.020 Permitted uses. 200 The following land uses and activities are permitted in the business district: 201 202 A. Accessory buildings; 203 B. Assembly halls; 204 C. Art galleries; 205 D. Automobile repair garages and dealerships; 206 E. Banks; 207 F. Building material suppliers; 208 G. Dry-cleaning establishments; 209 H. Eating and drinking establishments; 210 I. Fraternal organizations and private clubs; 211 J. Funeral parlors; 212 K. Gasoline service stations; 213 L. Government offices; 214 M. Hotels; 215 N. Laundry establishments; 216 O. Libraries; 217 P. Machine shops; 218 Q. Marinas and boat moorage; 219 R. Mini -warehouses; 220 S. Motels; 221 T. Multiple -family dwellings; 222 U. Museums; 223 V. Offices; Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 5 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-0181nfonnation Packet Page 50 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 224 W. Outdoor storage; 225 X. Printing shops; 226 Y. Professional offices and clinics; 227 Z. Public parks and open spaces; 228 AA. Recreational related uses; 229 BB. Retail stores and services; 230 CC. Single-family and two-family dwellings, if located within a structure containing a permitted 231 business use, not exceeding 50 percent of the area of the structure, and not located on the 232 street level of the structure except that an owner -occupied single-family dwelling may be 233 allowed within a street level business structure, so long as the residential portion is 234 predominantly located in the rear of the structure (away from the commercial building facade(s) 235 for corner and multi -frontage lots), the use of the dwelling is subsidiary and incidental to the 236 principal commercial use, and there is no indication, other than a separate entrance on the 237 street level building facade, that a residential use is located within the structure; 238 DD. Theaters; aad 239 EE. Radio stations=and 240 FF. Mariivana retail stores: and 241 GG. Mariivana testing facilities. 242 243 17.90.030 Conditional uses. 244 The following land uses and activities may be allowed by obtaining a conditional use permit in 245 accordance with the provisions of Chapter 17.200 KIBC: 246 247 A. Churches; 248 B. Hospitals; 249 C. Recreational vehicle parks; 250 D. Mobile home parks; and 251 E. Warehouses:; 252 F. Mariivana cultivation, limited: 253 G. Mariivana cultivation, standard: and 254 H. Mariivana manufacturing facilities. 255 256 Chapter 17.105 257 1— INDUSTRIAL DISTRICT 258 259 17.105.010 Permitted uses. 260 The following uses of the land are permitted in the industrial district: 261 262 A. All uses permitted in B business district, except residential; 263 B. Aircraft, automobile and truck assembly or remodeling; 264 C. Asphalt batch and mixing plant, manufacturing or refining; 265 D. Assembly of music and vending machines; 266 E. Auction business; 267 F. Beverage manufacturing; 268 G. Boat building, repair and storage; Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 6 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-018 Information Packet Page 51 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 269 H. Cabinet shops; 270 I. Concrete mixing batch plants; 271 J. Coal storage yards; 272 K. Dwelling units for a watchman or caretaker on the premises; 273 L. Dyeing plants; 274 M. Gravel or sand extraction; 275 N. Junkyards, wrecking, salvage or scrap metal operations; 276 O. Lumber mills and sawmills; 277 P. Lumberyard, building material manufacture or sales; 278 Q. Machine or blacksmith shops; 279 R. Manufacturing, servicing or repair of light consumer goods, such as appliances, batteries, 280 furniture, and garments; 281 S. Metal working or welding shops; 282 T. Motor freight terminals; 283 U. Outdoor storage; 284 V. Paint shops; 285 W. Public uses; 286 X. Rock crushers; 287 Y. Seafood processing establishments and their dormitories; 288 Z. Sewage treatment plants; 289 AA. Slaughterhouses; 290 BB. Steel fabrication shops or yards; 291 CC. Vehicle impound lots; 292 DD. Vocational or trade schools; 293 EE. Utility installations; and 294 FF. Warehousing within an enclosed structure-; 295 GG. Marijuana cultivation, limited; 296 HH. Marijuana cultivation. standard; 297 II. Marijuana manufacturing facilities; -and 298 JJ. Marituana retail stores; and 299 KK. Marijuana testing facilities. 300 301 Chapter 17.110 302 RB— RETAIL BUSINESS DISTRICT 303 304 17.110.020 Permitted principal uses and structures. 305 The following land uses and activities are permitted in the retail business district: 306 307 A. Automobile service stations; 308 B. Boardinghouses, hotels and motels; 309 C. Commercial recreational facilities (e.g., health clubs, racquetball courts, ice rinks, etc.); 310 D. Multifamily dwellings (not located on the street level of the structure); 311 E. Parks and playgrounds; 312 F. Retail stores and service shops (e.g., beauty shops, grocery stores, clinics, professional 313 offices, etc.); Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 7 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-01a Information Packet Page 52 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 314 G. Restaurants and bars; 315 H. Single-family and two-family dwellings, if located within a structure containing a permitted 316 business use, not exceeding 50 percent of the area of the structure, and not located on the 317 street level of the structure; 318 I. Schools/daycare facilities; 319 J. Shopping centers; BRA 320 K. Theaters, auditoriums, community halls -Land 321 J. Marijuana retail stores. 322 323 17.110.040 Conditional uses. 324 The following land uses and activities may be allowed by obtaining a conditional use permit in 325 accordance with the provisions of Chapter 17.200 KIBC: 326 327 A. Automobile and boat sales, storage, and repair; 328 B. Churches; 329 C. Institutional facilities (e.g., hospitals, fire stations, group homes, correctional facilities, etc.); 330 D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feel in height; 331 E. Utility and service uses (e.g., substations, etc.); 332 F. Warehouses; 333 G. Wholesaling and distributing operations (excluding bulk fuel operations); and 334 H. Recreational vehicle parks -1 335 I. Marijuana cultivation; limited: and 336 J. Marijuana cultivation, standard: and 337 K. Marijuana manufacturing facilities. 338 339 Chapter 17.120 340 LI — LIGHT INDUSTRIAL DISTRICT 341 342 17.120.020 Permitted principal uses and structures. 343 The following land uses and activities are permitted in the light industrial district: 344 345 A. Automobile service stations; 346 B. Automobile and boat sales, storage, and repair; 347 C. Manufacturing (e.g., boat building, crab pot construction, cabinet making, welding and 348 fabrication, etc.); 349 D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; 350 E. Retail stores and service shops (e.g., beauty shops, clinics, grocery stores, professional 351 offices, etc.); 352 F. Warehouses; 353 G. Wholesaling and distributing operations (excluding bulk fuel operations); 354 H. A dwelling unit used by the owner or by a caretaker, manager, and family when located on 355 the premises where they are employed in such a capacity; 356 I. Utility and service uses (e.g., substations, etc.); aPA 357 J. Kodiak Municipal Airport (landing strip and Lilly Lake float plane access), until adequate 358 replacement facilities are established -1 Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 8 of 9 Insertion — Bold, Blue, Underlined Version 2 Case No. 17-0181nfoonation Packet Page 53 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 K. Marijuana cultivation, limited: L. Marijuana cultivation. standard; M. Marijuana manufacturing facilities; -and N. Marijuana retail stores: and O. Marijuana testing facilities. Effective Date: This ordinance lakes effect upon adoption. (Note: KIBC 2.30.070 slates an ordinance takes effect upon adoption or at a later date specified in the ordinance.) ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 12017. KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: ATTEST: Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bald, Blue, Underlined Case No. 17-0181nfo0nation Packet Nova M. Javier, MMC, Clerk Ordinance No. FY2017-27 Page 9 of 9 Version 2 Page 54 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. r 0 d N N N U d K H Q G ❑ z r �F w 7 Fw w C 02 m z C .O O � �g zw N U¢ C w m mN O � N as U c o 'o N Q) U N U) 3 C .N F - o m 7 W � m � w (B u a C o � m O Z � N N 'm � m E w > d � — C � N N N L � m U C m C :Mi � r O 4- ti w m U C) CM C O N a 0 U) 0 a 0 e a a o ;v n t € o e JL v a Page 55 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... d d H G w 7 C m C .O O � w m � N U c o 'o � J U 3 F - o m W � N � @ m O Z � N N 'm C N w > d � — C � N N N L � J U C m C :Mi Page 55 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Memorandum AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Date: March 10, 2017 To: Planning and Zoning Commission From: Community Development Department RE: Case No. 17-018 Supplemental Memo At the February 15, 2017 Special Meeting the Planning & Zoning Commission postponed Case No. 17-018 relating to land use regulations for marijuana businesses. Staff has not received any new information and therefore has not made any updates to the staff report or recommendation. Changes have been made to the ordinance to correct typographical errors, omissions, and updates have been made based on legal review. No substantive changes have been made. The table summarizing proposed zoning districts for marijuana businesses has been included as well. This table was handed out to the Commission at the Special Meeting on February 15, 2017. Case No. 17-0181nfo"ation Packet Page 56 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 Introduced by: Drafted by: CDD Director Introduced on: Public Hearing Date: Adopted on: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-27 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, TITLE 5 BUSINESS LICENSES AND REGULATIONS, AND TITLE 17 ZONING TO PROVIDE FOR REGULATIONS RELATING TO MARIJUANA BUSINESSES WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has provided for the legalization of various marijuana -related activities on a specific timeline; and WHEREAS, AS 17.38.110 provides for local government control not in conflict with state law, and WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 17.38.110; and WHEREAS, the Kodiak Island Borough formed a Marijuana Task Force through the adoption of Kodiak Island Borough Resolution No. FY2016-31; and WHEREAS, the Marijuana Task Force developed recommendations for regulating marijuana businesses in the Kodiak Island Borough; and WHEREAS, in accordance with AS 29.40.020 the Planning and Zoning Commission discussed the proposed changes to Title 17 (Zoning) at work sessions, regular meetings, or special meetings on February 8, 2017, February 15, 2017, March 15, 2017, and March 23, 2017; and WHEREAS, the Planning and Zoning Commission, following the public hearing at the March 23, 2017 regular meeting, voted to transmit recommendations as amended for revisions to Title 17 to the Borough Assembly; and WHEREAS, the Borough Assembly discussed the proposed changes at work sessions and regular meetings on March 30, 2017, April 6, 2017, April 13, 2017, and April 20, 2017; and WHEREAS, the Borough Assembly, following the public hearing at the April 20, 2017 regular meeting, voted to adopted Ordinance FY2017-27. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Case No. 17-016 Information Packet Ordinance No. FY2017-27 Page 1 of 10 Version 1 Page 57 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Titles 3, 5, 17 of the Kodiak Island Borough Code of Ordinances are amended to read as follows: [PLACEHOLDER] [PLACEHOLDER] Title 3 REVENUE AND FINANCE Title 5 BUSINESS LICENSES AND REGULATIONS Chapter 17.15 GENERAL PROVISIONS AND USE REGULATIONS 17.15.060 Zoning compliance. Zoning compliance is required for site grading (excavation and fill), erection, construction, establishment, moving, alteration, enlargement, repair, or conversion of any building or structure in any district established by this title, subject to the following: A. An application for zoning compliance will be filed with the community development department on a form provided by the department. If the application meets the requirements of this title, as verified in the department, and other applicable regulations, a permit will be issued. An as -built of the property may be required to ensure that applicable requirements can be met, when existing structures are located on the property. Any zoning compliance permit issued is subject to the same expiration, suspension, and revocation provisions as a building permit issued for the same construction project (See Uniform Building Code Section 303(d) and (e), as currently adopted under KIBC 15.05.020). B. In all cases where the commission or the board of adjustment has granted a variance to this title, the department will issue zoning compliance to allow the building work to be done in accordance with the decision, except that no permit will be issued following the granting of a variance until the time for filing an appeal has expired and it is verified that no appeal has been filed. C. No building permit shall be issued by a building official until the community development department has verified from the application for zoning compliance for a proposed building that it conforms and will be occupied for a use in conformity with the provisions and regulations of Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 2 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-01 B Infortnation Packet Page 58 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 this title, except that this provision shall not apply to building permits for residential structures when no yard or height changes are involved. Any building permit issued in conflict with this title is null and void. [Ord. 93-64 §7, 1993; Ord. 92-17 §3, 1992; Ord. 92-04 §2, 1992; Ord. 65-11-0 §1,1985; Ord. 83-42-0 §1, 1983; Ord. 81-54-0 §1, 1981; prior code Ch. 5 subch. 2 §18. Formerly §17.03.0601. 17.15.120 Buffers for marijuana businesses In addition to any buffers imposed by any other applicable state or federal law, marijuana businesses may not be established on or within 500 feet of school grounds. Chapter 17.20 FEES 17.20.010 Fees. A. A part of the costs for maps, legal publications, notices to affected property owners, and other administrative expenses involved in processing land use change applications shall be covered by a fee, established by resolution of the assembly, payable to the borough. The fees apply to the following: 1. A- Conditional use permit; 2. 8- Contract zoning; 3. G- Planning and zoning commission review, 4. D- Variance; and 5. € Zoning change- and 6. Zoning compliance permit. [Ord. 92-12 §9, §17.04.010]. 1992; Ord. 82-47-0 §1, 1982. Formerly B Zoning compliance permits for marijuana businesses shall be paid at a rate of 20 percent of the current State of Alaska mariivana business licensing application fees. These fees will be established by resolution of the borough assembly per KIBC 17.20.010(A). Chapter 17.25 Definitions 17.25.020 A definitions. "Agricultural activities" means the production, keeping, or maintenance, for sale, lease, or personal use, of plants and animals useful to people. This does not include any uses involving or related to commercial marijuana activities. "Airport elevation" means the established elevation of the highest point of the usable landing area. Airport, Municipal. "Municipal airport" means the City of Kodiak Municipal Airport and Lilly Lake. Airport, Utility. "Utility airport" means any airport in the borough designed and/or constructed to serve aircraft in approach category A (speed less than 91 knots). Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 3 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 59 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 "Alley" means a public way designed and intended to provide only a secondary means of access to any property abutting thereon "Alteration" means any change, addition, or modification in the construction, location, or use classification. Apartment House. For "apartment house," see "Dwelling, multiple -family," KIBC 17.25.050. "Approach surface" means an approach surface longitudinally centered on the extended runway centerline and extending outward and upward from each end of a runway. The inner edge of the approach surface is the same width as the runway and it expands uniformly to a width of 1,500 feet of each end of the runway. The approach surface extends for a horizontal distance of 5,000 feet at a slope of 20:1. No building or structure may be constructed or erected nor may any other object be stored or placed in such a manner as to protrude into the approach surfaces. A. The approach surfaces for the municipal airport extend upward and outward from the south end of the existing lake surface (towards Larch Street) and the north end of the gravel runway (Von Scheele Way) only. "Automobile wrecking" means the dismantling of used motor vehicles or trailers or the storage or sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. [Ord. 93-66 §3, 1993; Ord. 87-09-0 §§3, 5, 6, 1987; prior code Ch. 5 subch. 2 §913. Formerly §§17.06.011 — 17.06.050]. 17.25.140 M definitions "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 Limited" means a legally licensed limited cultivation facility as defined by state law. State law dictates that an area less that 500 square feet may be under cultivation. "Marijuana Cultivation Standard" means a legally licensed standard cultivation facility as defined by state law. No limit is set by state law on size of area under cultivation. "Marijuana manufacturing facility" means a legally licensed commercial marijuana product manufacturing facility as defined by state law, which can 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 These facilities may not sell marijuana products to consumers. "Marijuana retail store" means a legally licensed commercial retail mariivana store as defined by state law. A marijuana retail store may sell marijuana accessories as defined by state law. "Marijuana testing facility" means a legally licensed commercial marijuana testing facility defined by state law that is registered to analyze and certify the safety and potency of marijuana. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Case No. 17-018 Information Packet Amending KIBC Chapters 3, 5, And 17 To Include Regulations F.. Ordinance No. FY2017-27 Page 4 of 10 Version 1 Page 60 of 215 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P & Z REGULAR MEETING: MARCH 22, 2017 "Motel" means a group of one or more detached or semidetached buildings containing two or more individual dwelling units and/or guest rooms, designed for or used temporarily by automobile tourists or transients, with a garage attached or parking space conveniently located to each unit, including groups designated as auto courts, motor lodges, or tourist courts. [Prior code Ch. 5 subch. 2 §98. Formerly §17.06.430]. Chapter 17.50 C —CONSERVATION DISTRICT 17.50.040 Conditional Uses The following land uses and activities may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. All of the conditional uses in the NU natural use zoning district; B. Airstrips; C. Commercial livestock grazing, excluding those areas historically established for livestock grazing as described in KIBC17.50.020(B), where it is a permitted use; D. Lodges that have provisions for more than six clients; E. Logging camps and timber harvesting support facilities (e.g., log transfer facilities), including timber products processing facilities; F. Nonrecreational mineral extraction activities and related structures; G. Seafood processing facilities and related structures; H. Transportation and utility facilities not otherwise permitted and not otherwise used in conjunction with permitted uses (e.g., roads, pipelines, communications facilities, etc.); and I. Recreational vehicle parks;.- and J Marijuana cultivation limited (on lots equal to or greater than 20,000 square feed. [Ord. FY2016-07 §2, 2016; Ord. FY2016-03 §2, 2015; Ord. 2001-05 §4, 2001; repealed and reenacted by Ord. 93-66 §2, 1993; Ord. 84-57-0 §1, 1984; Ord. 82-46-0 §2, 1982. Formerly §17.13.040]. Chapter 17.60 RR2 — RURAL RESIDENTIAL TWO DISTRICT 17.60.030 Conditional uses. The following land uses may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Fireworks stands; and B. Recreational vehicle parks-; C. Mariivana cultivation, limited (on lots equal to or greater than 20,000 square feet): and D. Marijuana testing facilities. [Ord. FY2016-07 §2, 2016; Ord. 86-27-0 §5, 1986; Ord. 83-16- 0 §1, 1983. Formerly §17.15.030]. Chapter 17.70 RR1 — RURAL RESIDENTIAL ONE DISTRICT Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 5 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 61 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P 8 Z REGULAR MEETING: MARCH 22, 2017 223 17.70.030 Conditional uses. 224 The following land uses may be allowed by obtaining a conditional use permit in accordance 225 with the provisions of Chapter 17.200 KIBC: 226 227 A. Fireworks stands; and 228 B. Recreational vehicle parks-; 229 C Marijuana cultivation limited (on lots equal to or greater than 20,000 square feet); and 230 D. Marijuana testing facilities. [Ord. FY2016-07 §2, 2016; Ord. 84-59-0 §1, 1984; Ord. 83-15- 231 O §2, 1983. Formerly §17.17.030]. 232 233 Chapter 17.90 234 B—BUSINESS DISTRICT 235 236 17.90.020 Permitted uses. 237 The following land uses and activities are permitted in the business district: 238 239 A. Accessory buildings; 240 B. Assembly halls; 241 C. Art galleries; 242 D. Automobile repair garages and dealerships; 243 E. Banks; 244 F. Building material suppliers; 245 G. Dry-cleaning establishments; 246 H. Eating and drinking establishments; 247 I. Fraternal organizations and private clubs; 248 J. Funeral parlors; 249 K. Gasoline service stations; 250 L. Government offices; 251 M. Hotels; 252 N. Laundry establishments; 253 O. Libraries; 254 P. Machine shops; 255 Q. Marinas and boat moorage; 256 R. Mini -warehouses; 257 S. Motels; 258 T. Multiple -family dwellings; 259 U. Museums; 260 V. Offices; 261 W. Outdoor storage; 262 X. Printing shops; 263 Y. Professional offices and clinics; 264 Z. Public parks and open spaces; 265 AA. Recreational related uses; 266 BB. Retail stores and services; Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 6 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-0181nfomaticn Packet Page 62 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 267 CC. Single-family and two-family dwellings, if located within a structure containing a permitted 268 business use, not exceeding 50 percent of the area of the structure, and not located on the 269 street level of the structure except that an owner -occupied single-family dwelling may be 270 allowed within a street level business structure, so long as the residential portion is 271 predominantly located in the rear of the structure (away from the commercial building facade(s) 272 for corner and multi -frontage lots), the use of the dwelling is subsidiary and incidental to the 273 principal commercial use, and there is no indication, other than a separate entrance on the 274 street level building facade, that a residential use is located within the structure; 275 DD. Theaters; and 276 EE. Radio stations -Land 277 FF. Mariivana retail stores. [Ord. FY2016-06 §2, 2015; Ord. 2001-07 §2, 2001; Ord. 94-24 §2, 278 1994; Ord. 88-33-0 §2,1988; Ord. 83-72-0 §1, 1983; Ord. 83-5-0 §§1 —3, 1983; Ord. 82-40-0 279 §1, 1982. Formerly §17.21.020]. 280 281 17.90.030 Conditional uses. 282 The following land uses and activities may be allowed by obtaining a conditional use permit in 283 accordance with the provisions of Chapter 17.200 KIBC: 284 285 A. Churches; 286 B. Hospitals; 287 C. Recreational vehicle parks; 288 D. Mobile home parks; and 289 E. Warehouses-; 290 F. Mariivana cultivation. limited; 291 G. Mariivana cultivation, standard; and 292 H. Mariivana manufacturing facilities. [Ord. FY2016-06 §2, 2015; Ord. 94-24 §2, 1994; Ord. 293 83-72-0 §2,1983; Ord. 83-5-0 §4, 1983: Ord. 82-40-0 §1, 1982. Formerly §17.21.030]. 294 295 Chapter 17.105 296 1 — INDUSTRIAL DISTRICT 297 298 17.105.010 Permitted uses. 299 The following uses of the land are permitted in the industrial district: 300 301 A. All uses permitted in B business district, except residential; 302 B. Aircraft, automobile and truck assembly or remodeling; 303 C. Asphalt batch and mixing plant, manufacturing or refining; 304 D. Assembly of music and vending machines; 305 E. Auction business; 306 F. Beverage manufacturing; 307 G. Boat building, repair and storage; 308 H. Cabinet shops; 309 I. Concrete mixing batch plants; 310 J. Coal storage yards; 311 K. Dwelling units for a watchman or caretaker on the premises; Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 7 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 63 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 312 L. Dyeing plants; 313 M. Gravel or sand extraction; 314 N. Junkyards, wrecking, salvage or scrap metal operations; 315 O. Lumber mills and sawmills; 316 P. Lumberyard, building material manufacture or sales; 317 Q. Machine or blacksmith shops; 318 R. Manufacturing, servicing or repair of light consumer goods, such as appliances, batteries, 319 furniture, and garments; 320 S. Metal working or welding shops; 321 T. Motor freight terminals; 322 U. Outdoor storage; 323 V. Paint shops; 324 W. Public uses; 325 X. Rock crushers; 326 Y. Seafood processing establishments and their dormitories; 327 Z. Sewage treatment plants; 328 AA. Slaughterhouses; 329 BB. Steel fabrication shops or yards; 330 CC. Vehicle impound lots; 331 DD. Vocational or trade schools; 332 EE. Utility installations; and 333 FF. Warehousing within an enclosed structure -1 334 GG. Marijuana cultivation, limited; 335 HH. Marijuana cultivation, standard; 336 It. Marijuana manufacturing facilities: and 337 JJ. Marijuana retail stores. [Ord. 92-13 §7, 1992; Ord. 8140-0 §2, 1981. Formerly 338 §17.24.010]. 339 340 Chapter 17.110 341 RB — RETAIL BUSINESS DISTRICT 342 343 17.110.020 Permitted principal uses and structures. 344 The following land uses and activities are permitted in the retail business district: 345 346 A. Automobile service stations; 347 B. Boardinghouses, hotels and motels; 348 C. Commercial recreational facilities (e.g., health clubs, racquetball courts, ice rinks, etc.); 349 D. Multifamily dwellings (not located on the street level of the structure); 350 E. Parks and playgrounds; 351 F. Retail stores and service shops (e.g., beauty shops, grocery stores, clinics, professional 352 offices, etc.); 353 G. Restaurants and bars; 354 H. Single-family and two-family dwellings, if located within a structure containing a permitted 355 business use, not exceeding 50 percent of the area of the structure, and not located on the 356 street level of the structure; Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 8 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 64 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 357 I. Schools/daycare facilities; 358 J. Shopping centers; aPA 359 K. Theaters, auditoriums, community halls -1 and 360 J. Mariivana retail stores. [Ord. 92-13 §5, 1992. Formerly §17.25.0201. 361 362 17.110.040 Conditional uses. 363 The following land uses and activities may be allowed by obtaining a conditional use permit in 364 accordance with the provisions of Chapter 17.200 KIBC: 365 366 A. Automobile and boat sales, storage, and repair; 367 B. Churches; 368 C. Institutional facilities (e.g., hospitals, fire stations, group homes, correctional facilities, etc.); 369 D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; 370 E. Utility and service uses (e.g., substations, etc.); 371 F. Warehouses; 372 G. Wholesaling and distributing operations (excluding bulk fuel operations); and 373 H. Recreational vehicle parks -1 374 I. Mariivana cultivation; limited; and 375 J. Mariivana cultivation standard; and 376 K. Mariivana manufacturing facilities. [Ord. FY2016-07 §2, 2016; Ord. 92-13 §5, 1992. 377 Formerly §17.25.040]. 378 379 Chapter 17.120 380 LI — LIGHT INDUSTRIAL DISTRICT 381 382 17.120.020 Permitted principal uses and structures. 383 The following land uses and activities are permitted in the light industrial district: 384 385 A. Automobile service stations; 386 B. Automobile and boat sales, storage, and repair; 387 C. Manufacturing (e.g., boat building, crab pot construction, cabinet making, welding and 388 fabrication, etc.); 389 D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; 390 E. Retail stores and service shops (e.g., beauty shops, clinics, grocery stores, professional 391 offices, etc.); 392 F. Warehouses; 393 G. Wholesaling and distributing operations (excluding bulk fuel operations); 394 H. A dwelling unit used by the owner or by a caretaker, manager, and family when located on 395 the premises where they are employed in such a capacity; 396 I. Utility and service uses (e.g., substations, etc.); and 397 J. Kodiak Municipal Airport (landing strip and Lilly Lake float plane access), until adequate 398 replacement facilities are established -1 399 K. Mariivana cultivation, limited; 400 L. Mariivana cultivation, standard; 401 M. Mariivana manufacturing facilities; and Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 9 of 10 Insertion — Bald, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 65 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 N. Marijuana retail stores. [Ord. 92-13 §6, 1992. Formerly §17.27.020]. Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an ordinance takes effect upon adoption or at a later date specified in the ordinance.) ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2017. KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Case No. 17-018 Information Packet Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... ATTEST: Nova M. Javier, MMC, Clerk Ordinance No. FY2017-27 Page 10 of 10 Version 1 Page 66 of 215 AGENDA ITEM #2.b. N N N U Q O� r2 W � W z w 2 K �g s� rn W U� N c m� a) U) as N F- W C .N T 7 C In �L Y @ W .1 C d (6 C@ G a o L C � 0 O � `o w @ m U y L 7 (A n f U U) E z m M C U C O 'O M d N yj � J U N U O Q O H O d U @ @ 'C N N W @ N "O O C @ T C N N C 2 CO N W r D N O N a E o a a` Page 67 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Page 67 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... '408-0.4 r a aP: e Y ALASKA AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 STAFF REPORT AND RECOMMENDATION Case No. 17-018 An ordinance amending Title 17 (Zoning) adding regulations pertaining to marijuana businesses. This ordinance was drafted by the Community Development Department under direction of the Borough Assembly and includes recommendations made to the Borough Assembly by the Borough's Marijuana Task Force. DATE: February 1, 2017 TO: Planning and Zoning Commission FROM: Community Development Department SUBJECT: Staff Report and Recommendation APPLICANT: Kodiak Island Borough LOCATION: Borough -wide ZONING: Varies APPLICABLE REGULATIONS: The following sections of Title 17 (Zoning) of the Borough Code are applicable to this request: 17.10.020 Reference and use (Comprehensive Plan). In accordance with Alaska Statutes, zoning decisions shall be based upon the recommendations contained in the comprehensive plan. 17.205.010 Authority (Amendments and changes). Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts. 17.205.020 Report from planning and zoning commission (Amendments and changes) The commission shall report in writing to the assembly on any proposed change or amendment regardless of the manner in which such change is initiated and such report shall find: A. Findings as to need and justification for a change or amendments; B. Findings as to the effect a change or amendment would have on the objectives of the comprehensive plan; and C. Recommendations as to the approval or disapproval of the change or amendment. 17.205.055 Submission to assembly (Amendments and changes) A. Within 30 days after the commission has acted favorably upon a proposed zoning change in accordance with the above provisions; a report with recommendations shall be submitted to the assembly together with the proposed ordinance. Such recommendations of the commission shall be advisory only and shall not be binding upon the assembly. When an ordinance has been forwarded to the assembly, the assembly shall act in accordance with this chapter, and notice shall be issued as provided in KIBC 17.205.070 by the clerk. Case No. 17-018 Stall Report and Recanmendatbn Case No. 17-018 lntormaeon Packet Page 68 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F. AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 PN0 eaq 9" Y Qom' 0 o - Y ALASKA B. If the commission recommends denial of any proposed amendment; its action shall be final unless the initiating party, within 10 days, files a written statement with the clerk requesting that the commission's action be taken up by the assembly. STAFF ANALYSIS In 2014 the State of Alaska's Ballot Measure #2 was approved by state voters. This provided for the legalization of select marijuana -related activities. Since 2014 state and local governments have been working toward developing laws to govern the marijuana industry in Alaska. Through the adoption of Ordinance No. FY2016-17 the Kodiak Island Borough created a new chapter of Borough Code and included a provision that prohibited the operation of marijuana cultivation, marijuana product manufacturing facilities, marijuana testing facilities, and retail marijuana stores within the Borough. The sunset date of this ordinance is currently February 28, 2017. An amendment to this ordinance is currently before the Assembly that would extend this date to April 30, 2017. The recommendations presented in the attached ordinance (Ordinance No. FY2017-27) are the result of ten meetings of the Borough's Marijuana Task Force; established by Resolution No. FY2016-31. Per AS 29.40.020(b)(2), it is the duty of the Planning and Zoning Commission to review the proposed changes to zoning regulation. Attached for the Commission's review are: • Ordinance No. FY2017-27 (draft) • Ordinance No. FY2016-17 • Resolution No. FY2016-31 • 3 AAC 306 • AS 17.38 Staff believes that all proposed changes to Title 17 presented in draft Ordinance No. FY2017-27 meet all applicable State of Alaska and Kodiak Island Borough laws. COMPREHENSIVE PLAN CONSISTENCY Land Use & Ownership Goal: Regulate and manage land uses to balance the rights of private property owners with community values and objectives. Policy: Maximize compatibility of adjacent land uses and minimize conflicts through zoning, buffering, design standards and other means. Policy: Zone land to meet future housing, commercial, industrial and other land needs. Implementation Action: Evaluate the need and recommend speck sites for commercial and industrial uses within and outside cities and unincorporated communities in the Borough to meet future economic needs. In assessing the need and most appropriate locations for new industrial land, consider the following factors: • The need to support potential economic growth sectors. The level of need should be based on an assessment of trends in population growth and in specific economic sectors, including realistic assessment of their potential within the KIB. Case No. 17-018 Staff Report and Recommendation Case No. 17-018 Information Packet Page 69 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P & Z REGULAR MEETING: MARCH 22, 2017 PNo eaq 9� Y Q 1/s D "t. ALASKA • Proximity to adequate public facilities, including roads, water and air transport facilities, as well as water and wastewater treatment facilities. • Potential conflicts with adjacent land uses, particularly residential uses and sensitive natural resources. • Parcel size, topography and other site characteristics as they relate to the requirements of businesses in anticipated growth industries. Goal: Continue to update and improve the effectiveness of Borough policies, plans, regulations and procedures. Implementation Actions: • Update and enhance the KIB Zoning Ordinance, as well as other planning procedures to meet land use and planning goals cost-effectively and efficiently. • Periodically review adopted zoning districts to ensure that they are appropriate and focused on the needs and direction provided by the Comprehensive Plan. • Review and analyze area zoning to determine the need and potential placement of industrial property zoning if needed. Economy Goal: Diversify the overall economy of Kodiak Region. Polic : Encourage and facilitate small business development on Kodiak Island. CONCLUSION Staff analysis shows that the amendment is consistent with the objectives of the adopted Comprehensive Plan and satisfies the requirements of Title 17 of the Kodiak Island Borough Code for amendments and changes. Anticipating a decision in favor of this amendment, a draft ordinance is attached to this report. Staff recommends that the Commission forward this ordinance to the Borough Assembly with a recommendation for approval. APPROPRIATE MOTION Should the Commission agree with the staff recommendation, the appropriate motion is: Recommend that the Assembly of the Kodiak Island Borough approve Ordinance No. FY2017-27 amending Title 17 KIBC (Zoning) and to adopt the findings of fact listed in the staff report dated February 1, 2017 and entered into the record for this case as "Findings of Fact" for Case No. 17-018. Staff recommends the above motion be approved. FINDINGS OF FACT (KIBC 17.205.020) 1. Registered voters in the Kodiak Island Borough voted to legalize select marijuana establishments under State of Alaska Ballot Measure #2 in 2014. 2. AS 17.38.110 provides for the implementation of local controls for marijuana establishments. 3. Current KIBC Title 17 (Zoning) does not include regulatory requirements for marijuana establishments and does not list them as a permitted use in any zoning district. Case No. 17-0iB Staff Report and Recommendation Case No. 17-018 Information Packet Page 70 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 PNa eog0 y � Y S o` 13 ALASKA 4. The amendments to Title 17 KIBC provide the regulatory requirements for marijuana establishments in a manner consistent with similar uses within the Kodiak Island Borough. 5. The amendments to Title 17 KIBC are consistent with the adopted Comprehensive Plan goals and policies related to land use and economy. 6. The Planning and Zoning Commission recommends approval of the amendments to Title 17 KIBC. Case No. 17-018 Staff Report and Recommendation Case No. 17-0181nfonnation Packet Page 71 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 Introduced by: Drafted by: CDD Director Introduced on: Public Hearing Date: Adopted on: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-27 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE TITLE 3 REVENUE AND FINANCE, TITLE 5 BUSINESS LICENSES AND REGULATIONS, AND TITLE 17 ZONING TO PROVIDE FOR REGULATIONS RELATING TO MARIJUANA BUSINESSES WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has provided for the legalization of various marijuana -related activities on a specific timeline; and WHEREAS, AS 17.38.110, "local control" in subsection (a) provides: "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 voter initiative"; and WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 17.38.110(a) so as to prohibit to the broadest extent possible the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores within its borders; and WHEREAS, the Kodiak Island Borough formed a Marijuana Task Force through the adoption of Kodiak Island Borough Resolution No. FY2016-31; and WHEREAS, the Marijuana Task Force developed recommendations for regulating marijuana businesses in the Kodiak Island Borough; and WHEREAS, in accordance with AS 29.40.020 the Planning and Zoning Commission discussed the proposed changes to Title 17 (Zoning) at work sessions or special meetings on February 8, 2017 and February 15, 2017; and WHEREAS, the Planning and Zoning Commission, following the public hearing at the February 15, 2017 special meeting, voted to transmit recommendations as amended for revisions to Title 17 to the Borough Assembly; and WHEREAS, the Borough Assembly discussed the proposed changes at work sessions and regular meetings on March 2, 2017, March 9, 2017, March 16, 2017, and March 23, 2017; and Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Case No. 17-0181nfo"alion Packet Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2017-27 Page 1 of 10 Version 1 Page 72 of 215 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 WHEREAS, the Borough Assembly, following the public hearing at the March 23, 2017 regular meeting, voted to adopted Ordinance FY2017-27. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: Titles 3, 5, 17 of the Kodiak Island Borough Code of Ordinances are amended to read as follows: [PLACEHOLDER] [PLACEHOLDER] Title 3 REVENUE AND FINANCE Title 5 BUSINESS LICENSES AND REGULATIONS Chapter 17.15 GENERAL PROVISIONS AND USE REGULATIONS 17.15.060 Zoning compliance. Zoning compliance is required for site grading (excavation and fill), erection, construction, establishment, moving, alteration, enlargement, repair, or conversion of any building or structure in any district established by this title, subject to the following: A. An application for zoning compliance will be filed with the community development department on a form provided by the department. If the application meets the requirements of this title, as verified in the department, and other applicable regulations, a permit will be issued. An as -built of the property may be required to ensure that applicable requirements can be met, when existing structures are located on the property. Any zoning compliance permit issued is subject to the same expiration, suspension, and revocation provisions as a building permit issued for the same construction project (See Uniform Building Code Section 303(d) and (e), as currently adopted under KIBC 15.05.020). B. In all cases where the commission or the board of adjustment has granted a variance to this title, the department will issue zoning compliance to allow the building work to be done in accordance with the decision, except that no permit will be issued following the granting of a variance until the time for filing an appeal has expired and it is verified that no appeal has been filed. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 2 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 73 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 11 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 C. No building permit shall be issued by a building official until the community development department has verified from the application for zoning compliance for a proposed building that it conforms and will be occupied for a use in conformity with the provisions and regulations of this title, except that this provision shall not apply to building permits for residential structures when no yard or height changes are involved. Any building permit issued in conflict with this title is null and void. [Ord. 93-64 §7, 1993; Ord. 92-17 §3, 1992; Ord. 92-04 §2, 1992; Ord. 85-11-0 §1,1985; Ord. 83-42-0 §1, 1983; Ord. 81-54-0 §1, 1981; prior code Ch. 5 subch. 2 §18. Formerly §17.03.0601. D Marijuana businesses must obtain two separate zoning compliance permits. 1 Marijuana businesses must include with their application for initial zoning compliance proof of marijuana licensing application approval by the Alaska Marijuana Control Board. Initial zoning compliance issuance for marijuana businesses allows only for the development of the facility and does not allow for the commencement of marijuana cultivation, testing, manufacturing, or retail sales operations. 2 Prior to commencement of operations, marijuana businesses must obtain subsequent zoning compliance after obtaining a license to operate within the Kodiak Island Borough per KIBC 5.02.030. Mariivana businesses must present this license at the time of application for zoning compliance to commence marijuana business operations Issuance of this zoning compliance permit shall be free of charge. 17.15.120 Buffers for marijuana businesses Marijuana businesses may not be established on or within 500 feet of school grounds. Chapter 17.20 FEES 17.20.010 Fees. A part of the costs for maps, legal publications, notices to affected property owners, and other administrative expenses involved in processing land use change applications shall be covered by a fee, established by resolution of the assembly, payable to the borough. The fees apply to the following: A. Conditional use permit; B. Contract zoning; C. Planning and zoning commission review; D. Variance; and E. Zoning change;: and F. Zoning compliance permit §17.04.0101. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion—Bold, Blue, Underlined [Ord. 92-12 §9, 1992; Ord. 82-47-0 §1, 1982. Formerly Case No. 17-0181nfonnation Packet Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2017-27 Page 3 of 10 Version 1 Page 74 of 215 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 134 B. Initial zoning compliance permits for mariivana businesses shall be paid at a rate of 20 135 percent of the current State of Alaska mariivana business licensing application fees. 136 These fees will be established by resolution of the borough assembly per KIBC 137 17.20.010.A. 138 139 Chapter 17.25 140 Definitions 141 142 17.25.020 A definitions. 143 "Agricultural activities" means the production, keeping, or maintenance, for sale, lease, or 144 personal use, of plants and animals useful to people. This does not include mariivana 145 cultivation. 146 "Airport elevation" means the established elevation of the highest point of the usable landing 147 area. 148 Airport, Municipal. "Municipal airport" means the City of Kodiak Municipal Airport and Lilly Lake. 149 Airport, Utility. "Utility airport" means any airport in the borough designed and/or constructed to 150 serve aircraft in approach category A (speed less than 91 knots). 151 "Alley" means a public way designed and intended to provide only a secondary means of 152 access to any property abutting thereon 153 "Alteration" means any change, addition, or modification in the construction, location, or use 154 classification. 155 Apartment House. For "apartment house," see "Dwelling, multiple -family; KIBC 17.25.050. 156 "Approach surface" means an approach surface longitudinally centered on the extended runway 157 centerline and extending outward and upward from each end of a runway. The inner edge of the 158 approach surface is the same width as the runway and it expands uniformly to a width of 1,500 159 feet of each end of the runway. The approach surface extends for a horizontal distance of 5,000 160 feet at a slope of 20:1. No building or structure may be constructed or erected nor may any 161 other object be stored or placed in such a manner as to protrude into the approach surfaces. 162 A. The approach surfaces for the municipal airport extend upward and outward from the south 163 end of the existing lake surface (towards Larch Street) and the north end of the gravel runway 164 (Von Scheele Way) only. 165 "Automobile wrecking" means the dismantling of used motor vehicles or trailers or the storage or 166 sale of parts from dismantled or partially dismantled, obsolete, or wrecked vehicles. [Ord. 93-66 167 §3, 1993; Ord. 87-09-0 §§3, 5, 6, 1987; prior code Ch. 5 subch. 2 §9B. Formerly §§17.06.011 — 168 17.06.050]. 169 170 17.25.140 M definitions 171 "Marijuana" means all parts of the plant of the genus cannabis whether growing or not. 172 the seeds thereof, the resin extracted "Marijuana" means all parts of the plant of the 173 genus cannabis whether growing or not, the seeds thereof, the resin extracted from any 174 part of the plant, and every compound, manufacture, salt, derivative, mixture, or 175 preparation of the plant, its seeds, or its resin, including mariivana concentrate; 176 "mariivana" does not include fiber produced from the stalks, oil, or cake made from the 177 seeds of the plant, sterilized seed of the plant which is incapable of germination, or the Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 4 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-0181nfonnation Packet Page 75 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 178 weight of any other ingredient combined with marijuana to prepare topical or oral 179 administrations food, drink, or other products. 180 "Marijuana Cultivation Limited" means an entity registered to cultivate, prepare, and 181 package marijuana and to sell marijuana to retail marijuana stores to marijuana product 182 manufacturing facilities and to other marijuana cultivation facilities, but not to 183 consumers; with fewer than 500 square feet under cultivation. 184 "Mariivana Cultivation Standard" an entity registered to cultivate prepare and package 185 marijuana and to sell marijuana to retail marijuana stores, to marijuana product 186 manufacturing facilities and to other marijuana cultivation facilities, but not to 187 consumers- with no limit is set by state law on size of area under cultivation. 188 "Mariivana manufacturing facility" means an entity registered to purchase marijuana; 189 manufacture prepare and package marijuana products- and sell mariivana and 190 marijuana products to other marijuana product manufacturing facilities and to retail 191 marijuana stores, but not to consumers. 192 "Mariivana retail store" means an entity registered to purchase marijuana from marijuana 193 cultivation facilities to purchase marijuana and marijuana products from marijuana 194 product manufacturing facilities and to sell marijuana and marijuana products to 195 consumers. 196 "Mariivana testing facility" means an entity registered to analyze and certify the safety 197 and potency of marijuana. 198 199 "Motel" means a group of one or more detached or semidetached buildings containing two or 200 more individual dwelling units and/or guest rooms, designed for or used temporarily by 201 automobile tourists or transients, with a garage attached or parking space conveniently located 202 to each unit, including groups designated as auto courts, motor lodges, or tourist courts. [Prior 203 code Ch. 5 subch. 2 §98. Formerly §17.06.4301. 204 205 Chapter 17.50 206 C — CONSERVATION DISTRICT 207 208 17.50.040 Conditional Uses 209 The following land uses and activities may be allowed by obtaining a conditional use permit in 210 accordance with the provisions of Chapter 17.200 KIBC: 211 A. All of the conditional uses in the NU natural use zoning district; 212 B. Airstrips; 213 C. Commercial livestock grazing, excluding those areas historically established for livestock 214 grazing as described in KIBC17.50.020(B), where it is a permitted use; 215 D. Lodges that have provisions for more than six clients; 216 E. Logging Camps and timber harvesting support facilities (e.g., log transfer facilities), including 217 timber products processing facilities; 218 F. Nonrecreational mineral extraction activities and related structures; 219 G. Seafood processing facilities and related structures; 220 H. Transportation and utility facilities not otherwise permitted and not otherwise used in 221 conjunction with permitted uses (e.g., roads, pipelines, communications facilities, etc.); and 222 I. Recreational vehicle parks;.- and Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 5 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-018 Information Packet Page 76 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 223 J. Marijuana cultivation. limited (on lots equal to or greater than 20.000 square feet). [Ord. 224 FY2016-07 §2, 2016; Ord. FY2016-03 §2, 2015; Ord. 2001-05 §4, 2001; repealed and 225 reenacted by Ord. 93-66 §2, 1993; Ord. 84-57-0 §1, 1984; Ord. 82-46-0 §2, 1982. Formerly 226 §17.13.040]. 227 228 Chapter 17.60 229 RR2 — RURAL RESIDENTIAL TWO DISTRICT 230 231 17.60.030 Conditional uses. 232 The following land uses may be allowed by obtaining a conditional use permit in accordance 233 with the provisions of Chapter 17.200 KIBC: 234 235 A. Fireworks stands; and 236 B. Recreational vehicle parks-; 237 C. Marijuana cultivation limited (on lots equal to or greater than 20,000 square feet): and 238 D. Marijuana testing facilities. [Ord. FY2016-07 §2, 2016; Ord. 86-27-0 §5, 1986; Ord. 83-16- 239 O §1, 1983. Formerly §17.15.030]. 240 241 Chapter 17.70 242 RR1 — RURAL RESIDENTIAL ONE DISTRICT 243 244 17.70.030 Conditional uses. 245 The following land uses may be allowed by obtaining a conditional use permit in accordance 246 with the provisions of Chapter 17.200 KIBC: 247 248 A. Fireworks stands; and 249 B. Recreational vehicle parks-; 250 C. Marijuana cultivation limited (on lots equal to or greater than 20.000 square feet): and 251 D. Marijuana testing facilities. [Ord. FY2016-07 §2, 2016; Ord. 84-59-0 §1, 1984; Ord. 83-15- 252 O §2, 1983. Formerly §17.17.030]. 253 254 Chapter 17.90 255 B — BUSINESS DISTRICT 256 257 17.90.020 Permitted uses. 258 The following land uses and activities are permitted in the business district: 259 260 A. Accessory buildings; 261 B. Assembly halls; 262 C. Art galleries; 263 D. Automobile repair garages and dealerships; 264 E. Banks; 265 F. Building material suppliers; 266 G. Dry-cleaning establishments; 267 H. Eating and drinking establishments; Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 6 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-0181nfomalion Packet Page 77 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 268 I. Fraternal organizations and private clubs; 269 J. Funeral parlors; 270 K. Gasoline service stations; 271 L. Government offices; 272 M. Hotels; 273 N. Laundry establishments; 274 O. Libraries; 275 P. Machine shops; 276 O. Marinas and boat moorage; 277 R. Mini -warehouses; 278 S. Motels; 279 T. Multiple -family dwellings; 280 U. Museums; 281 V. Offices; 282 W. Outdoor storage; 283 X. Printing shops; 284 Y. Professional offices and clinics; 285 Z. Public parks and open spaces; 286 AA. Recreational related uses; 287 BB. Retail stores and services; 288 CC. Single-family and two-family dwellings, if located within a structure containing a permitted 289 business use, not exceeding 50 percent of the area of the structure, and not located on the 290 street level of the structure except that an owner -occupied single-family dwelling may be 291 allowed within a street level business structure, so long as the residential portion is 292 predominantly located in the rear of the structure (away from the commercial building facade(s) 293 for comer and multi -frontage lots), the use of the dwelling is subsidiary and incidental to the 294 principal commercial use, and there is no indication, other than a separate entrance on the 295 street level building facade, that a residential use is located within the structure; 296 DD. Theaters; and 297 EE. Radio stations -Land 298 FF. Mariivana retail stores. [Ord. FY2016-06 §2, 2015; Ord. 2001-07 §2, 2001; Ord. 94-24 §2, 299 1994; Ord. 88-33-0 §2, 1988; Ord. 83-72-0 §1, 1983; Ord. 83-5-0 §§1 — 3, 1983; Ord. 62-40-0 300 §1, 1982. Formerly §17.21.020]. 301 302 17.90.030 Conditional uses. 303 The following land uses and activities may be allowed by obtaining a conditional use permit in 304 accordance with the provisions of Chapter 17.200 KIBC: 305 306 A. Churches; 307 B. Hospitals; 308 C. Recreational vehicle parks; 309 D. Mobile home parks; and 310 E. Warehouses-; 311 F. Mariivana cultivation, limited; 312 G. Mariivana cultivation, standard; and Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 7 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-0181nfonna8on Packet Page 78 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 313 H. Mariivana manufacturing facilities. [Ord. FY2016-06 §2, 2015; Ord. 94-24 §2, 1994; Ord. 314 83-72-0 §2, 1983; Ord. 83-5-0 §4, 1983: Ord. 82-40-0 §1, 1982. Formerly §17.21.030]. 315 316 Chapter 17.105 317 1— INDUSTRIAL DISTRICT 318 319 17.105.010 Permitted uses. 320 The following uses of the land are permitted in the industrial district: 321 322 A. All uses permitted in B business district, except residential; 323 B. Aircraft, automobile and truck assembly or remodeling; 324 C. Asphalt batch and mixing plant, manufacturing or refining; 325 D. Assembly of music and vending machines; 326 E. Auction business; 327 F. Beverage manufacturing; 328 G. Boat building, repair and storage; 329 H. Cabinet shops; 330 I. Concrete mixing batch plants; 331 J. Coal storage yards; 332 K. Dwelling units for a watchman or caretaker on the premises; 333 L. Dyeing plants; 334 M. Gravel or sand extraction; 335 N. Junkyards, wrecking, salvage or scrap metal operations; 336 O. Lumber mills and sawmills; 337 P. Lumberyard, building material manufacture or sales; 338 Q. Machine or blacksmith shops; 339 R. Manufacturing, servicing or repair of light consumer goods, such as appliances, batteries, 340 furniture, and garments; 341 S. Metal working or welding shops; 342 T. Motor freight terminals; 343 U. Outdoor storage; 344 V. Paint shops; 345 W. Public uses; 346 X. Rock crushers; 347 Y. Seafood processing establishments and their dormitories; 348 Z. Sewage treatment plants; 349 AA. Slaughterhouses; 350 BB. Steel fabrication shops or yards; 351 CC. Vehicle impound lots; 352 DD. Vocational or trade schools; 353 EE. Utility installations; and 354 FF. Warehousing within an enclosed structure -1 355 GG. Marijuana cultivation, limited: 356 HH. Marijuana cultivation, standard; 357 It. Marijuana manufacturing facilities: and Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 8 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-0181nfotmation Packet Page 79 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & 2 REGULAR MEETING: MARCH 22, 2017 358 JJ. Mariivana retail stores. [Ord. 92-13 §7, 1992; Ord. 81-40-0 §2, 1981. Formerly 359 §17.24.010]. 360 361 Chapter 17.110 362 RB — RETAIL BUSINESS DISTRICT 363 364 17.110.020 Permitted principal uses and structures. 365 The following land uses and activities are permitted in the retail business district: 366 367 A. Automobile service stations; 368 B. Boardinghouses, hotels and motels; 369 C. Commercial recreational facilities (e.g., health clubs, racquetball courts, ice rinks, etc.); 370 D. Multifamily dwellings (not located on the street level of the structure); 371 E. Parks and playgrounds; 372 F. Retail stores and service shops (e.g., beauty shops, grocery stores, clinics, professional 373 offices, etc.); 374 G. Restaurants and bars; 375 H. Single-family and two-family dwellings, if located within a structure containing a permitted 376 business use, not exceeding 50 percent of the area of the structure, and not located on the 377 street level of the structure; 378 I. Schools/daycare facilities; 379 J. Shopping centers; and 380 K. Theaters, auditoriums, community halls -.Land 381 J. Mariivana retail stores. [Ord. 92-13 §5, 1992. Formerly §17.25.020]. 382 383 17.110.040 Conditional uses. 384 The following land uses and activities may be allowed by obtaining a conditional use permit in 385 accordance with the provisions of Chapter 17.200 KIBC: 386 387 A. Automobile and boat sales, storage, and repair; 388 B. Churches; 389 C. Institutional facilities (e.g., hospitals, fire stations, group homes, correctional facilities, etc.); 390 D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; 391 E. Utility and service uses (e.g., substations, etc.); 392 F. Warehouses; 393 G. Wholesaling and distributing operations (excluding bulk fuel operations); and 394 H. Recreational vehicle parks; 395 I. Mariivana cultivation; limited: and 396 J. Mariivana cultivation, standard. [Ord. FY2016-07 §2, 2016; Ord. 92-13 §5, 1992. Formerly 397 §17.25.040]. 398 399 Chapter 17.120 400 LI — LIGHT INDUSTRIAL DISTRICT 401 402 17.120.020 Permitted principal uses and structures. Kodiak Island Borough, Alaska Ordinance No. FY2017-27 Deletion — Red, Strikeout Page 9 of 10 Insertion — Bold, Blue, Underlined Version 1 Case No. 17-0181nfor ation Packet Page 80 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 The following land uses and activities are permitted in the light industrial district: A. Automobile service stations; B. Automobile and boat sales, storage, and repair; C. Manufacturing (e.g., boat building, crab pot construction, cabinet making, welding and fabrication, etc.); D. Outdoor storage, when screened by a sight -obscuring fence a minimum of six feet in height; E. Retail stores and service shops (e.g., beauty shops, clinics, grocery stores, professional offices, etc.); F. Warehouses; G. Wholesaling and distributing operations (excluding bulk fuel operations); H. A dwelling unit used by the owner or by a caretaker, manager, and family when located on the premises where they are employed in such a capacity; I. Utility and service uses (e.g., substations, etc.); and J. Kodiak Municipal Airport (landing strip and Lilly Lake float plane access), until adequate replacement facilities are established -1 K. Mariivana cultivation, limited: L. Mariivana cultivation. standard; M. Mariivana manufacturing facilities; and N. Mariivana retail stores. [Ord. 92-13 §6, 1992. Formerly §17.27.020]. Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an ordinance takes effect upon adoption or at a later date specified in the ordinance.) ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF .2017. KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Case No. 17-0181nfomation Packet ATTEST: Nova M. Javier, MMC, Clerk Ordinance No. FY2017-27 Page 10 of 10 Version 1 Page 81 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 To: Kodiak Island Borough Assembly From: Kodiak Island Borough Marijuana Task Force Date: November 28, 2016 Regarding: Recommendations for implementation On March 17, 2016 the Kodiak Island Borough Assembly voted to opt out of the commercial sale of marijuana in the Borough for one year. Congruent with that the Assembly created a Marijuana Task Force made up of 11 residents of the Borough. The group is made up of individuals who use Marijuana regularly to people who have never used and everyone in between. The committee fairly accurately reflects the wide ranges of opinions found in the community. The Marijuana Task Force was tasked with offering advice and recommendations to the Assembly regarding the implementation of Marijuana related business in the Kodiak Island Borough. The State of Alaska created a broad framework and encouraged local municipalities to create laws that best reflect the local jurisdictions. It was with all this in mind that the Task Force began its work. The Task Force has met ten times. We limited all of our meetings to right around two hours. After much discussion and some compromise the Task Force brings forth the following recommendations. Please note that some of the recommendations were quite controversial and this document will attempt to reflect that "conflict" where it existed. Also please note that the recommendations reflected in this document are organized in a manner to make it useful for the Assembly but not necessarily in the order that we addressed them at the meetings. 1. Licenses/Renewal Fees a. Application Fee: Kodiak Island Borough Application Fee would be 20% of the State fee reflected in AAC 306.100(a) a. State Fee is currently $1,000 b. Borough Fee $200 b. Annual License Fee: Kodiak Island Borough Annual License Fee would be 20% of the State fee schedule reflected in AAC 306.100 (d). a. Retail Marijuana Store License State currently $5,000, Borough $1,000 b. Limited Marijuana Cultivation Facility License State currently $1,000, Borough $200 c. Marijuana Cultivation Facility License State currently $5,000, Borough $1,000 Case No. 17-018 Infoma8on Packet Page 82 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 d. Marijuana Concentrate Manufacturing Facility License State currently $1,000, Borough $200 e. Marijuana Product Manufacturing Facility License State currently $5,000, Borough $1,000 f. Marijuana Testing Facility License State currently $1,000, Borough $200 2. Taxes a. Sales Tax (no sales tax in the Borough): Fairbanks Borough created a sales tax specific to marijuana and alcohol but the Kodiak Task Force believed that having any sales tax in the Borough would create extra staff work and cost more than the potential benefit. It. Excise Style Tax: The State of Alaska will be taxing $50 per ounce at the cultivation level. The committee was split on this issue. With a slight majority the committee recommended that the Borough look at taxing at the cultivation level as well. Numerous committee members felt that the issue of taxes was a broad policy issue that the Assembly needed to decide. 3. Notice Requirements: a. Recommend that they mirror Alcohol notice requirements 4. Opting Out: There was much discussion in regards to what Marijuana Manufacturing should look like in Kodiak. This particular issue was discussed in length at three meetings. Ultimately the recommendation was to opt out of the manufacturing of edibles (including butter) but allow the manufacturing of oils, tinctures, and hashes. The concern with edibles was the challenge of keeping them out of the hands of children. The group split 7 to 2 in favor of opting out of edibles and split 7 to 2 to allow the manufacturing of oils, tinctures, and hashes. The above are general recommendations from the Task Force. The following recommendations are specific to zoning and the implementation of commercial marijuana Cultivation, Manufacturing, Retail Sales, and Testing in the Kodiak Island Borough. Case No. 17-0181nforma0on Packet Page 83 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 1. Cultivation Zoning: a. Industrial — permitted b. Business — conditional use c. Residential (this was a very controversial issue and was discussed at four meetings) i. Rl, R2, R3 — prohibited (unanimous) ii. RR, RRl, RR2, Conservation — conditional use (voted 5 to 2) 1. Limited Cultivation License only (as defined in State Law) 2. 500 Square Foot or less (Borough Code requires a home based business not exceed 20% of the Residence) 3. Must only be on a lot that has a single family dwelling on it. 4. Lot must be 20,000 square feet or greater (there was a lot of discussion on whether this number should be 40,000 or 20,000) Note: The issue of cultivation was made more difficult because allowing marijuana cultivation as a conditional use in some Residential and the Business Districts could create a potential conflict in the current HIB Title 17 Code. The potential conflict is allowing a conditional use that is identified as prohibited in Title 17. 2. Manufacturing Zoning: a. Industrial — permitted b. Business — conditional use c. Residential — prohibited 3. Retail Sales Zoning: a. Industrial — permitted b. Business — permitted c. Residential — prohibited 4. Testing Zoning: a. Industrial — permitted b. Business — permitted c. Residential — permitted (split 5 to 3) The final issue we addressed was the idea of buffer zones. Fairbanks Borough used buffer zones as a way to exclude certain areas of their community (residential, schools, etc). The Task Force decided that the term Exclusion Zones would be clearer to the public as to the intention of these zones. The committee makes the following recommendations. Case No. 17-0181nfonna0on Packet Page 84 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & 2 REGULAR MEETING: MARCH 22, 2017 1. School Exclusion Zone: The school exclusion zone would be consistent with the Federal Drug Free School Zones that the Kodiak Island Borough School District is required to abide by. The School Exclusion Zone would extend 500 feet in a straight line from the edge of school property. No commercial marijuana activity would be allowed in that zone. This is consistent with what KIBSD must abide by. 2. All other Exclusion Zones would be consistent with AAC 306.010. This portion would not be required to be placed in Borough Code because it is already enumerated in State Statute. To summarize this section of Statute it states that no license will be issued if the " licensed premise will be located within 500 feet of a school ground, a recreation or youth center, a building in which religious services are regularly conducted, or a correctional facility. The distance specified in this subsection must be measured by the shortest pedestrian route from the pubic entrance of the building in which the licensed premises would be located to the outer boundaries of the school ground, the outer boundaries of the recreation or youth center, the main public entrance of the building in which religious services are regularly conducted or the main public entrance of the correctional facility." I would like to thank each of the Task Force Members for their time and energy and commitment to this process. In some ways this process has stretched each of us away from where we are most comfortable on this topic. This stretching has lead to much discussion and debate. Even though the debate was a little heated at times I really appreciate the civility of which each Task Force Member approached this task. This final recommendation is brought forward with the unanimous support of the HIB Marijuana Task Force. Respectfully, Case No. 17-0181ntormatIon Packet Page 85 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 10 Il 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 Introduced by. Requested by: Drafted by: Introduced: Public Hearing: Amended: Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY201647 Assembly member Rohrer Assembly member Rohrer Assembly member RohrerlBorough Clerk 02/182016 03103/2015 0 310 32 01 6 03m32016 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING THE KODIAK ISLAND BOROUGH CODE TITLE 6 BUSINESS LICENSES AND REGULATIONS BY CREATING A NEW CHAPTER 5.02 MARIJUANA BUSINESSES WHEREAS, the passage of Ballot Measure #2 in the 2014 Slate of Alaska Election has provided for the legalization of various madjuana-related activities on a specific timeline; and WHEREAS, AS 17.38.110, "local control" in subsection (a) provides: "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 voter Initiative"; and WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 17.38.110(a) so as to prohibit to the broadest extent possible the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores within its borders; and NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances; and Section 2: This ordinance shall be In effect through February 28, 2017. Section 3: A Marijuana Task Force will be created in the form of a resolution of the Assembly and shall exist concurrent with this ordinance. Section 24: KIBC Title 5 Business Licenses and Regulations is hereby amended by creating a new chapter 5.02 Marijuana Businesses to read as follows: Chapter 6.02 Kodiak Island Borough, Alaska Case No. 17-018 Information Packet Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... Ordinance No. FY2016-17 Page 1 of 2 Page 86 of 215 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P & 2 REGULAR MEETING: MARCH 22, 2017 MARIJUANA BUSINESSES Sections: 5.02.010 Marijuana Businesses Prohibited. 5.02.020 Enforcement. 5.02.010 Marijuana Businesses Prohibited. The operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, and retail marijuana stores anywhere within the Kodiak Island Borough Is hereby prohibited. 5.02.020 Enforcement A. A violation of a provision of this chapter Is an offense punishable by a penalty not to exceed a fine of $1,000, in addition to the surcharge required under AS 12.55.039. Each day that a violation continues constitutes a separate violation and is subject to a separate fine. B. Notwithstanding the availability of any other remedy provided by the provisions of this code, the borough or any person aggrieved by a violation of this chapter may institute a civil action for Injunctive relief to enforce these provisions in any court of competent jurisdiction. Section 3. Effective date. This ordinance is effective upon passage. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS THIRD DAY OF MARCH, 2016 ATTEST: L.Al ). ova M. Javier, MMC, Boro gh Clerk Kodiak Island Borough, Alaska Case No. 17-018 Information Packet KODIAK ISLAND BO GH J rrol Friend, QOEgh Mayor Ordinance No. FY2016-17 Page 2 of 2 Page 87 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 Introduced by: Assembly member Rohrer Requested by: Assembly member Rohrer Drafted by: KIB Clerk Introduced on: 03/172016 Adopled on: 03/172016 KODIAK ISLAND BOROUGH RESOLUTION NO. FY 2016-31 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH ESTABLISHING A MARIJUANA TASK FORCE WHEREAS, on November 4, 2014, Ballot Measure 2 was approved statewide by the voters; and WHEREAS, Ballot Measure 2 also allows for the Borough to prohibit and/or implement regulations governing the number, time, place and manner of marijuana cultivation facilities, manufacturing facilities, retail stores and testing facilities; and WHEREAS, there are many Issues and factors to be considered by the Borough In deciding all the local issues associated with the legalization of marijuana; and WHEREAS, the Assembly is creating a Marijuana Task Force to advise the Assembly and Administration on any and all aspects, impacts, and concerns related to the legalization of marijuana; and NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that there is established a Kodiak Island Borough Marijuana Task Force. Section 1: Created -membership. The formation of the Task Force will consist of the following eleven members. The quorum for this committee Is attendance of six members and it takes a majority vote of those present for a motion to carry. • 2 Borough Assembly Members • 2 City Council Members 1 Medical Professional • 1 Law Enforcement • 1 Retail Business Owner • 1 Marijuana Advocate 3 members at large Section 2: Organization- The chairperson and the vice chairperson are assigned by the Borough Mayor. The Chair person shall report to the entire Assembly on behalf of the Task Force. Section 3: Appointments. The Mayor shall appoint the members of the task force subject to confirmation of the Assembly. The City Council members are appointed by the City Council. Kodiak Island Borough Case No. 17-018 Information Packet Resolution No. FY2016-31 Page 1 of 2 Page 88 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 Section 4: Powers and duties. The scope of review of the task force includes, but not limited to: • Land use • Law enforcement • Revenue • Regulatory compliance • Cultivation • Manufacturing • Retail Stores • Testing The responsibility of the task force Is to offer advice and recommendations to the Assembly and administration on both the upsides and downsides of any issue related to or impacted by the legalization of madjuana. Section 5: Administrative assistance. The clerk's office staff shall provide the committee with supplies, meeting space, and secretarial assistance. Section 6: Reporting. The Task Force chairperson shall report to the Assembly during a public meeting. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SEVENTEENTH DAY OF MARCH 2016 KODIAK ISLAND BOROUGH ATTEST: rrol Friend, orough Mayor S Nova M. Javier, MMC, gh Clerk Kodiak Island Borough Case No. 17-0181nfor alion Packet Resolution No. FY2016-31 Page 2 of 2 Page 89 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P a Z REGULAR MEETING: MARCH 22, 2017 "An Act to tax and regulate the production, sale, and use of marijuana." BE IT ENACTED BY THE PEOPLE OF THE STATE OF ALASKA: *Section 1. AS 17 is amended by adding a new chapter to read: Chapter 38. The regulation of marijuana Sec. 17.38.010. Purpose and findings. (a) In the interest of allowing law enforcement to focus on violent and property crimes, and to enhance individual freedom, the people of the state of Alaska find and declare that the use of marijuana should be legal for persons 21 years of age or older. (b) In the interest of the health and public safety of our citizenry, the people of the state of Alaska further find and declare that the production and sale of marijuana should be regulated so that: (1) Individuals will have to show proof of age before purchasing marijuana; (2) Legitimate, taxpaying business people, and not criminal actors, will conduct sales of marijuana; and (3) Marijuana sold by regulated businesses will be labeled and subject to additional regulations to ensure that consumers are informed and protected. (c) The people of the state of Alaska further declare that the provisions of this Act are not intended to diminish the right to privacy as interpreted by the Alaska Supreme Court in Ravin v. State of Alaska. (d) Nothing in this Act proposes or intends to require any individual or entity to engage in any conduct that violates federal law, or exempt any individual or entity from any requirement of federal law, or pose any obstacle to federal enforcement of federal law. Sec. 17.38.020. Personal use of marijuana. Notwithstanding any other provision of law, except as otherwise provided in this chapter, the following acts, by persons 21 years of age or older, are lawful and shall not be a criminal or civil offense under Alaska law or the law of any political subdivision of Alaska or be a basis for seizure or forfeiture of assets under Alaska law: (a) Possessing, using, displaying, purchasing, or transporting marijuana accessories or one ounce or less of marijuana; (b) Possessing, growing, processing, or transporting no more than six marijuana plants, with three or fewer being mature, flowering plants, and possession of the marijuana produced by the plants on the premises where the plants were grown; (c) Transferring one ounce or less of marijuana and up to six immature marijuana plants to a person who is 21 years of age or older without remuneration; (d) Consumption of marijuana, except that nothing in this chapter shall permit the consumption of marijuana in public; and (e) Assisting another person who is 21 years of age or older in any of the acts described in paragraphs (a) through (d) of this section. Sec. 17.38.030. Restrictions on personal cultivation, penalty. (a) The personal cultivation of marijuana described in AS 17.38.020(b) is subject to the following terms: Case No. 17-018 Info ma8on Packet Page 90 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P & Z REGULAR MEETING: MARCH 22, 2017 (1) Marijuana plants shall be cultivated in a location where the plants are not subject to public view without the use of binoculars, aircraft, or other optical aids. (2) A person who cultivates marijuana must take reasonable precautions to ensure the plants are secure from unauthorized access. (3) Marijuana cultivation may only occur on property lawfully in possession of the cultivator or with the consent of the person in lawful possession of the property. () A person who violates this section while otherwise acting in compliance with AS 17.38.020(6) is guilty of a violation punishable by a fine of up to $750. Sec. 17.38.040. Public consumption banned, penalty. It is unlawful to consume marijuana in public. A person who violates this section is guilty of a violation punishable by a fine of up to $100. Sec. 17.38.050. False identification, penalty. (a) A person who is under 21 years of age may not present or offer to a marijuana establishment or the marijuana establishment's agent or employee any written or oral evidence of age that is false, fraudulent or not actually the person's own, for the purpose of (1) Purchasing, attempting to purchase or otherwise procuring or attempting to procure marijuana or marijuana products; or (2) Gaining access to a marijuana establishment. (b) A person who violates this section is guilty of a violation punishable by a fine of up to $400. Sec. 17.38.060. Marijuana accessories authorized. Notwithstanding any other provision of law, it is lawful and shall not be an offense under Alaska law or the law of any political subdivision of Alaska or be a basis for seizure or forfeiture of assets under Alaska law for persons 21 years of age or older to manufacture, possess, or purchase marijuana accessories, or to distribute or sell marijuana accessories to a person who is 21 years of age or older. Sec. 17.38.070. Lawful operation of marijuana -related facilities. (a) Notwithstanding any other provision of law, the following acts, when performed by a retail marijuana store with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a retail marijuana store, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Possessing, displaying, storing, or transporting marijuana or marijuana products, except that marijuana and marijuana products may not be displayed in a manner that is visible to the general public from a public right-of-way; (2) Delivering or transferring marijuana or marijuana products to a marijuana testing facility; (3) Receiving marijuana or marijuana products from a marijuana testing facility; (4) Purchasing marijuana from a marijuana cultivation facility; (5) Purchasing marijuana or marijuana products from a marijuana product manufacturing facility; and (6) Delivering, distributing, or selling marijuana or marijuana products to consumers. (b) Notwithstanding any other provision of law, the following acts, when performed by a marijuana cultivation facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana cultivation Case No. 17-010 Information Packet Page 91 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Cultivating, manufacturing, harvesting, processing, packaging, transporting, displaying, storing, or possessing marijuana; (2) Delivering or transferring marijuana to a marijuana testing facility; (3) Receiving marijuana from a marijuana testing facility; (4) Delivering, distributing, or selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store; (5) Receiving or purchasing marijuana from a marijuana cultivation facility; and (6) Receiving marijuana seeds or immature marijuana plants from a person 21 years of age or older. (c) Notwithstanding any other provision of law, the following acts, when performed by a marijuana product manufacturing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana product manufacturing facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products; (2) Delivering or transferring marijuana or marijuana products to a marijuana testing facility; (3) Receiving marijuana or marijuana products from a marijuana testing facility; (4) Delivering or selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility; (5) Purchasing marijuana from a marijuana cultivation facility; and (6) Purchasing of marijuana or marijuana products from a marijuana product manufacturing facility. (d) Notwithstanding any other provision of law, the following acts, when performed by a marijuana testing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee or agent of a marijuana testing facility, are lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law: (1) Possessing, cultivating, processing, repackaging, storing, transporting, displaying, transferring or delivering marijuana; (2) Receiving marijuana or marijuana products from a marijuana cultivation facility, a marijuana retail store, a marijuana products manufacturer, or a person 21 years of age or older; and (3) Returning marijuana or marijuana products to a marijuana cultivation facility, marijuana retail store, marijuana products manufacturer, or a person 21 years of age or older. (e) Notwithstanding any other provision of law, it is lawful and shall not be an offense under Alaska law or be a basis for seizure or forfeiture of assets under Alaska law to lease or otherwise allow the use of property owned, occupied or controlled by any person, corporation or other entity for any of the activities conducted lawfully in accordance with paragraphs (a) through (d) of this section. (t) Nothing in this section prevents the imposition of penalties upon marijuana establishments for violating this chapter or rules adopted by the board or local governments pursuant to this chapter. (g) The provisions of AS 17.30.020 do not apply to marijuana establishments. Sec. 17.38.080. Marijuana Control Board. Case No, 17-0181nfmmation Packet Page 92 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F. AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 At any time, the legislature may create a Marijuana Control Board in the Department of Commerce, Community, and Economic Development or its successor agency to assume the power, duties, and responsibilities delegated to the Alcoholic Beverage Control Board under this chapter. Sec. 17.38.090. Rulemaking. (a) Not later than nine months after the effective date of this act, the board shall adopt regulations necessary for implementation of this chapter. Such regulations shall not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. Such regulations shall include: (1) Procedures for the issuance, renewal, suspension, and revocation of a registration to operate a marijuana establishment, with such procedures subject to all requirements of AS 44.62, the Administrative Procedure Act; (2) A schedule of application, registration and renewal fees, provided, application fees shall not exceed $5,000, with this upper limit adjusted annually for inflation, unless the board determines a greater fee is necessary to carry out its responsibilities under this chapter; (3) Qualifications for registration that are directly and demonstrably related to the operation of a marijuana establishment; (4) Security requirements for marijuana establishments, including for the transportation of marijuana by marijuana establishments; (5) Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under the age of 21; (6) Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment; (7) Health and safety regulations and standards for the manufacture of marijuana products and the cultivation of marijuana; (8) Reasonable restrictions on the advertising and display of marijuana and marijuana products; and (9) Civil penalties for the failure to comply with regulations made pursuant to this chapter. (b) In order to ensure that individual privacy is protected, the board shall not require a consumer to provide a retail marijuana store with personal information other than government -issued identification to determine the consumer's age, and a retail marijuana store shall not be required to acquire and record personal information about consumers. Sec. 17.38.100. 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 the effective date of this act. (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 17.38.110(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 17.38.090 or the board is notified by the relevant local government that the applicant is not in compliance with ordinances and regulations made pursuant to AS 17.3 8.110 and in effect at the time of application. Case No. 17-0181nror ation Packet Page 93 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 (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. Sec. 17.38.110. 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 17.38.090 or to accept or process applications in accordance with AS 17.38.100. (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, the 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 (t) 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 17.38.100 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 17.3 8.090 and has accepted applications pursuant to AS 17.38.100 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 paragraph, 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 17.38.090, an applicant may submit an application directly to a local regulatory authority after one year after the effective date of this act and the local regulatory authority may issue an annual registration to the applicant. Case No. 17-018 Intom Mon Packet Page 94 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P S Z REGULAR MEETING: MARCH 22, 2017 (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 17.38.100. The holder of such registration shall not be subject to regulation or enforcement by the board during the tens of that registration. 0) 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 17.38.100. (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 17.38.090 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 17.38.090 but has not, at least 90 days after the adoption of such regulations, issued registrations pursuant to AS 17.38.100. (l) Nothing in this section shall limit such relief as may be available to an aggrieved party under AS 44.62, the Administrative Procedure Act. Sec. 17.38.120. Employers, driving, minors and control of property. (a) Nothing in this chapter is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees. (b) Nothing in this chapter is intended to allow driving under the influence of marijuana or to supersede laws related to driving under the influence of marijuana. (c) Nothing in this chapter is intended to permit the transfer of marijuana, with or without remuneration, to a person under the age of 21. (d) Nothing in this chapter shall prohibit a person, employer, school, hospital, recreation or youth center, correction facility, corporation or any other entity who occupies, owns or controls private property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property. Sec. 17.38.130. Impact on medical marijuana law. Nothing in this chapter shall be construed to limit any privileges or rights of a medical marijuana patient or medical marijuana caregiver under AS 17.37. See. 17.38.900. Definitions. As used in this chapter unless the context otherwise requires: (l) "Board" means the Alcoholic Beverage Control Board established by AS 04.06. (2) "Consumer" means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by persons 21 years of age or older, but not for resale to others. (3) "Consumption' means the act of ingesting, inhaling, or otherwise introducing marijuana into the human body. (4) "Local government' means both home rule and general law municipalities, including boroughs and cities of all classes and unified municipalities. Case No. 17-018 Information Packet Page 95 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations 1=... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P a Z REGULAR MEETING: MARCH 22, 2017 (5) "Local regulatory authority" means the office or entity designated to process marijuana establishment applications by a local government. (6) "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. (7) "Marijuana accessories" means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body. (8) "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. (9) "Marijuana establishment" means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store. (10) "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. (11) "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. (12) "Marijuana testing facility" means an entity registered to analyze and certify the safety and potency of marijuana. (13) "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. (14) "Unreasonably impracticable" means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson. *Sec. 2. AS 43 is amended by adding a new chapter to read: Chapter 61. Excise tax on marijuana Sec. 43.61.010. Marijuana tax. (a) An excise tax is imposed on the sale or transfer of marijuana from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at the rate of $50 per ounce, or proportionate part thereof, on marijuana that is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Case No. 17-018 Information Packet Page 96 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P a Z REGULAR MEETING: MARCH 22, 2017 (b) The department may exempt certain parts of the marijuana plant from the excise tax described in (a) of this section or may establish a rate lower than $50 per ounce for certain parts of the marijuana plant. Sec. 43.61.020. Monthly Statement and Payments. (a) Each marijuana cultivation facility shall send a statement by mail or electronically to the department on or before the last day of each calendar month. The statement must contain an account of the amount of marijuana sold or transferred to retail marijuana stores and marijuana product manufacturing facilities in the state during the preceding month, setting out (1) the total number of ounces, including factional ounces sold or transferred; (2) the names and Alaska address of each buyer and transferee; and (3) the weight of marijuana sold or transferred to the respective buyers or transferees. (b) The marijuana cultivation facility shall pay monthly to the department, all taxes, computed at the rates prescribed in this chapter, on the respective total quantities of the marijuana sold or transferred during the preceding month. The monthly return shall be filed and the tax paid on or before the last day of each month to cover the preceding month. Sec. 43.61.030. Administration and Enforcement of Tax. (a) Delinquent payments under this chapter shall subject the marijuana cultivation facility to civil penalties under AS 43.05.220. (b) If a marijuana cultivation facility fails to pay the tax to the state the marijuana cultivation facility's registration may be revoked in accordance with procedures established under AS 17.38.090(a)(1). *See. 3. The provisions of this Act are independent and severable, and, except where otherwise indicated in the text, shall supersede conflicting statutes, local charter, ordinance, or resolution, and other state and local provisions. If any provision of this Act, or the application thereof to any person or circumstance, is found to be invalid or unconstitutional, the remainder of this Act shall not be affected and shall be given effect to the fullest extent possible. Case No. 17-018 Infoma0on Packet Page 97 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.005 Couueacs, COMMOSIr, ARo EC, Dim. 3 AAC 306.005 Chapter 306. Regulation of Marijuana Industry. Articie 1. Lcnneing; Fees (3 AAC 306.005 - 3 AAC 3011L100) 2. 1nea1 Option (3 AAC 306200 - 3 AAC 806-260) 3. Retail Marianna Stores (3 AAC 306.300 - 3 AAC 306.360) 4. Marijuana Cultivation Faditi" (3 AAC 306.400 - 3 MC 306.480) S. Marijuana Product Manafarwring Faeilitiaa(3 AAC 308.500-3 AAC 306.570) 6. Mar6uana 71a.ting FuRidea 13 AAC 3011.600 -3 AAC 306.676) 7. Operating Requiromenla far All Mnliumna E+tobl'uhmenta (3 AAC 306.700 -3AAC 306.765) E. Enfom .% Civil Penalties (3 AAC 3061M - 3 AAC 906650) 9. General Pmviaiov (3 AAC 308.905 - 3 AAC 306.990) Article 1. Liceruling; Fees. e05. a55, lj mluiml 66. Criminal justice irdarmrdim and rn Cd 10. Umnse 10. Llmve matricnomn meds 15. Limnao nand ar arm 20. Appli"tion mm Grove [nca) government g0, Public Pion pn M. Applion it 65. Public P,rtiripetian to I 90. PeDtmn for limmae in aroa with on 70. Waring on i¢ nAaat rang prrb P 6nbl gur,•mmentTS. Proreduro foratiinn an limveappli- 35. APplicali,m for remewd ofli.. "tion - 40.0,rnnah;p,1=&bIn•r,-P t -d 80. Denial flicence aPphosti.n 46. AppR"tian f.r 4am.fnr -f. Iiawe 85. Informal conference In ambler ppson 90. Farmai b�=img 60. Relneatim of Ii..,d pumices at 95. Apprala ullaavd Ion. Fran: nfund 3 AAC 808.005. License required. A marijuana establishment may not operate in the state unless it has obtained the npplicable marijunan establishment license from the board The board will issue the following mnr(juana estahhshmpnt licenses under this chapter. (1) a retail madjuana stow license, granting authority for activ- ities allowLd under AS 17.38.070(a), and subject to the provisions of 3 AAC 308.300 - 3 AAC 306.360 and 3 AAC 306.700 - 3 AAC 306.755; (2) it marijuana cultivation facility license, as described in 3 AAC 306.405 and 3 AAC 306.410, granting authority for activities al- lowed under AS17.38.070(6), and subject to the provisions of AAC 306.400 - 3 AAC 806.480 and 3'AAC 306.700 - 3 AAC 306.755; (3) n marijuana product manufacturing facility license, as de- scribed in 3 AAC 306.505 and 3 AAC 306.515, granting authority for activities allowed under A3 17.38,070(c), and subject to the provisions of 3 AAC 306.500 - 3 AAC 306.570 and 3 AAC 306.700 - 3 AAC 306.755; and (4) a marijuana testing facility license, granting authority for activities allowed under AS 17.38.070(d), and subject to the provi. sions of 3 AAC 306.600 - 3 AAC 306.675 end 3 AAC 306.700 - 3 AAC 306.755. (E8: 2121/2016, Register 217) 1133 Case No. 17-018 Information Packet Page 98 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.010 Arw Aoumlarlurrva Cma• 3 AAC 306.010 • Aathorit). AS 17:8010 AS 17.3&1151 AS 1738200 AS 17.38070 AS 1790.100 AS 1738.000 AS 1738.121 3 AAC 306.010. license restrictions. (a) Tine hoard will not issue a marijuana establishment license if the licensed premisea will be located within 600 fist of a school ground, a recreation or youth center, a building in which religious services ars regularly conducted, or a correctional facility. The distance specified in this subsection most be measured by the shortest pedestrian route tram the public entrance of the building in which the licensed premises would be located to the outer boundaries of the school ground, the outer boundaries or the recreation or youth center, the main public entrance of the building in • which religious services are regularly conducted, or the main public entrance of the correctional facility. This auction does not prohibit the renewal ofan existing marijuana establishment license or the transfer of an existing marduana establishment license to another person if the licensed premises were in use before the school ground, recreation or youth center, the building in which religious services ore regularly conducted, or a correctional facility began use of a site within SW feet. If an existing marijunnn establishment license for premises located within 500 feet of a school ground, a recreation or youth center, a building in which religious services am regularly conducted, or a correctional facility is revoked or expires, Um board will not issue another marijuana establiahmentlimnse far the same premises unless . the school ground, the recreation oryouth anter, the building in which mliginus services nm. regularly conducted, or the carrectfnnal facility no longer occupies the Bite within 600 feet. (b) Tlm board will not issue a marijuana establishment license if the licensed premises will he located in a liquor license premises. (c) The board will not issue a marijuana establishmentlicense when a local government protests an application under 3 AAC 306.060 on the grounds that the applicant's proposed licensed premises ore located in a place within the local government where a local zoning ordinanco prohibits the marijunna mtablishment, unless the meal government has approved a variance fmm the local ordinance. Id) 111e bard will not issue a marijuana establishment license to a person that • (1) is prohibited underAS 17.38.200(i) firma rec eivinga marijuana establishment license because of a conviction of a ftlanr, if the applicant is a partnership, limited liability company, or corporation, the bard will not issue a license if any Person named in 3 AAC 306.020(bg2) is prohibited under AS 17.33.200(i) fmm obtaining a license; in this paragraph, "conviction of a felony includes a am - pointed imposition of sentence; (2) has been Grand guilty of (A) Belling alcohol without a license in violation of AS O4.11.010; (B) selling alcohol to an individual under 21 years of age in violation of AS 04.16.051 or 04.16.052; or 1134 • Case No. 17-018 Information Packet Page 99 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations 1=... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.015 CunttsacE, Comimirrg Aral Ec. DEv. 8 AAC 306.015 (C) a misdemeanor crime involving a controlled substance, violence against a person, use of a weapon, or dishonesty within the preceding five years; or (3) has, within two years before submitting an application, ]leen convicted of a does A misdemeanor relating to selling, furnishing, or distributing marijuana or operating an establishment where mari- juana is consumed contrary to state law. (EQ 722172016, Register 217) Authority. AS 17.91U010 AS 17.99.160 AS 17.38200 AS 17.99.070 AS 17.39.190 AS 17.19.900 AS 17.39.121 8 AAC 306.016. Incense conditions. (a) The hoard will issue each marijuana establishment license to a specific individual, to e partnership, including a limited partnership, to a limited liability company, to a corporation, or to a local government. A person other than a licensee may not have a direct or indirect financial interest in the business for which a marijuana establishment license is issued. (b) Tlm board will not issue a marijuana establishment license to (1) an individual or a sole proprietorship unless thu individual or proprietor is a resident of the store; (2) a partnership unless each partner is a resident of the state; (3) a limited liability company ualvas the limited liability com- pany is qualified to do business in the state and each member orthe limited liability company is a resident of the state; or (4) a clrtwrntion unless the corporation is incorporated or quali- fied to do business in the state and each shnrehulder is a resident or the slate. (e) The board will issue each license for a specific ]motion identified on the liceaan, as the licensed premises. A marijuana establishment must have a right to possession or its liecnstsi premises at all times, and may not lease its licensed premises to another person for any reason. If a marijuana establishment wishes to reduce or expand the area of the licensed premises used for a marijuana establishment, the marijuana establishment most submit a new line drawing showing the proposed changes to the promises, and must obtain the board's written approval. A marijuana establishment may not Murata its licensed premises In a different place without obtaining a license for the now promisee as required under 3 AAC 306.050. (d) The board will impose other conditions or restrictions on a license issued underthis chapter when it funds that it Is in the interests of the public to do so. (e) In Linke section, (1) 'direct or indirect financial Interest" means (A) a legal or equitable interest in the operation of n business licensed under this chapter, (B) does not include a personals right to receive iron Case No. 17-018 Information Packet Page 100 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.0211 A1N"AIImai.STm.1rIVr. Cora 3 AAC 306.020 (i) rental charges on a graduated or percentage lease-reat agreement for real catate leased to a licensee; or (ii) a consulting fee from a licensee for services that are allnwed under this chapter; (2) "resident of the state" means a person who meets the residency requirement under AS 43.23 for a permanent fund dividend in the calendar year in which that person npplies for a marijuana estab- lishment licenso under this chapter. (Eff. 2121/2016, Register 217; add? am 212112016, Register 217) AuthoritT AS 17.78.010 AS 17.38.150 AS 1738200 AS 1738.070 AS 17.38.180 AS 17.3&900 A.4 17.38.121 3 AAC 306.020. Application for new license. (a) An applicant for a new marijuana establishment license most file an application as Provided in 3 AAC 306.025, on a form the board prescribes, with the information and documents described in this section, along with the application fee and the annual license fes set out in 3 AAC 306.100, and the fingerprint cards and fees required by 3 AAC 306.0551a). The application most he initiated electronically; the completed application and fees may be filed electronically, or mailed nr delivered to the director at the office of the board. (b) An application for a new marijuana establishment license most include (1) the name of the npplicant and any business name the appli- cant will use for the pmIxmd marUmma establishment, along with the applicant's state business license number issued under AS 43.70; (2) the name, mailing address, telephone number, and social security number ofeach proposed limresve and each affiliate of each proposed licenser; unless the context requires otherwise, "licensee' meant each individual named in an npplication that complies with this section; an individual to be identified as a licensee under this section includes (A) if the applicant is an individual or a sole proprietor, the individual or sole proprietor, (R) if the applicant is a partnership, including a limited part- nership, each partner holding any interest in the partnership; (C) if the applicant is a limited liability company, each member holding my ownership interest; (D) if the applicant is a corporation, each owner of any of the corporation's stock; and (E) if the applicant is a local government, an authorized official of the local government; (3) for each applicant that is not an individual, the applicable documents and information as follows: (A) for a partnership, including a limited partnership, the partnership agreement, the name of each general or managing 1136 Case No. 17-015 Infounation Packet Page 101 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.020 Cosmaacs, Cann purr, min Em Dsv. 3 AAC 306.020 partner, and a list oral] partners with the percentage of ownership of each partner, (B) for a limited liability company, the limited liability company agreement, and a list of all members with the percentage of ownership of each member, (C) for a corporation, the certificate or incorporation, the name of each corporate officer, and a list of all shareholders with the percentage of ownership or each shareholder, (D) for a local government, a resolution of the governing body approving the application and designating an official responsible for the proposed marijuana establishment; (4) for each person listed in compliance with (2) of this subsection, a statement of financial interest on a form the board prescribes; (5) for each applicant that is not an individual, the name of the individual licensee or designated government official listed in the application under (2) of this subsection who is responsible for (A) management or the marijuana establishment; and (B) compliance with state laws; (6) an electronic mail address at which the applicant agrees to receive any correspondence from the board before and after it receives a license; an applicant and a licensee most ensure that any electronic mail address provided to the board is current so that the board can contact the applicant or licensee at any time; (7) the type of license the npplicant is requesting; (B) the eddmm of the premises to include global positioning system (GPS) coordinates where the applicant intends to operate a marijuana establishment, and a detailed diagram of the proposed licensed premises; the diagram most show all entrances and bound. arise of the promises, restricted access arses, and storage areas; (9) the title, ]case, orother documantntion showing the applicant's right to p,,,,emion of the proposed licensed premises•, (10) an affidavit showing where and when the applicant posted notice of the application, and proof or advertising as required in 3 AAC 306.025(b); and (11) additional information thnt the board requires as follows: (A) far a retail marijuana store, the information roquired under 3 AAC 306.315; (B) for a marijuana cultivation facility, the information re- quired under 3 AAC 306.420; (C) for a marijuana product manufacturing facility, the infor- molion required under 3 AAC 306.520; (D) for a marijuana testing facility, the information required under 3 AAC 306.615. (c) A marUuana ustnWishment license application most include the applicant's operating plan, in a format the board prescribes, describing to the board's satisfaction the proposed marijuana establishment's plans for 1137 Case No. 17-018 Information Packet Page 102 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.025 A�ia Aunumsmtm,,r C,rt,r 3 AAC 306.025 (1) security; (2) inventory tracking of all marijuana and mmunnu products on the premises; (3) employed qualification and training; (4) waste disposal; (5) transportation and delivery of marijuana and marijuana prod- ucts; and (6) signage and advertising. (d) An application for a marijuana establishment license must be signed by (1) the applicant, if the applicant is an individual; (2) an authorized general partner if the applicant is a partner- ship, including a limited partnership; (3) a member who owns at least 30 percent of the limited liability company if the applicant is a limited liability company, (4) the authorized officers of the corporation if the applicant is a corporation' or (5) a designated official if the applicant is a local government. (o) Each person signing an application for a marijuana establish- ment license must declare under penalty of unsworn falsification that (1) the application is true, correct, and complete; (2) the applicant has read and is familiar with AS 17.38 and this chapter; and (3) the applicant will provide all information the board requires in support of the application. (ER. 712 11 2 0 1 6, Register 217) Autharitrr AS 17.38.010 AS 17.38,160 AS 17.31300 - AS 1738.070 AS 17.38.10n AS 17.38900 AS 1738.121 Editors not¢ Forma and iaetructiom Internet add. Is for Mini, an awtimlwn for a marijuana www.mnunmm.aleaka.tm/welJebd and mWbliahmmt limrae mn be vb1. ;owl on- its oIom is nt 660 Wet 7th Ave. Suite Tim at the Marijuana Cmnol Bmrd'a web- 1600, AnchnratT, AE 88601. The board's ate or at the board's oM., The board's talephom number is (907) 268-0350. 9 MC 900.025. Application procedure. (a) An applicant most initiate a new marijuana establishment license application on a form the board prescribes, using the board's electronic system. (b) As soon es practical after initiating a new marijuana license application, the applicant must give notice of the application to the public by (1) posting a copy of the application, on the form the board prescribes, for 10 days at (A) the location of the proposed licensed premises; and (B) one other conspicuous location in the area of the proposed Premises; (2) publishing an announcement once a week for three consecu- tive weeks in a newspaper of general circulation in the area; in an 1138 Case No. 17-0181nformation Packet Page 103 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-U P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.025 CaaNsacs, Comm, mm Ec. Dew. 3 AAC 306.025 area where no newspaper circulates, the applicant meet arrange for broadcast announcements on a radio station serving the local area where the proposed licensee seeks to operate twice a week for three sucepssive weeks during triple A advertising time; the newspaper or radio notice must state IA) the name of the applicant; (B) the name and location of the proposed premises; (C) the type of license applied for along with a citation to a provision of this chapter authorizing that type of license; and (D) a statement that any comment or objection may be submit- ted to the board; and (3) submitting a copy of the application on the Corm the board prescribes to (A) the local government; and (B) any community council in the area of the proposed licensed premises. (c) After the applicant completes the notice requirements in (b) of this section and submits each remaining application requirement listed in 3 AAC 306.020, the applicant must pay the application and licensing fires set out in 3 AAC 306.100. The applicant must then use the board's electronic system to inform the board that the applicant has submitted a complete application. (d) When the director receives an application for it marijuana establishment license, the director shall determine if the application is complete. Any application for a marijuana esmhlialunent license that the director receives without the application fee is incomplete. If the director determines the application is complete, the director shall immediately give written notice to; (1) the applicant; (2) the local government with jurisdiction over the applicant's proposed licensed promises; (3) the community council if the proposed licensed premises am located within the boundary of a community council established by municipal charter or ordinance; and (4) any nonprofit community organization that has requested notification in writing. (e) If an application for a marijuana establishment license is incom- plete, the director shall notify the applicant by electronic mail at the address provided by the applicant and shall either (1) return an incomplete npplicntion in its entirety, or (2) request the applicant to provide additional identified items needed to complete the application. (D When the director informs as applicant that its applicatinn is incomplete as provided in (e) of this section, the applicant most complete the application not later than 90 days atter the date of the director a notice. If an applicant fails to complete its application during the 9041ey period after the director's notice, the applicant must file a 1139 Case No. 17-0181nfonoation Packet Page 104 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.030 At.n it%A11a1NLcmtrltP. Cour. 3 AAC 306.035 new application and pay a new application fee to obtain a marijuana establishment license (Eff. 2t21/2016, Register 217) Authority, A5 17.38.010 AS 17.38.160 AS 17.38.200 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 17.3&121 3 AAC 306.030. Petition for license in area with no local government. (a) The board will not approve a new license in an area outside, but within 50 miles of, the boundary of a local government unless the board receives a petition to issue the license signed by a majority of the permanent residents residing within one mile of the proposed premises. (b) The board will not approve a new license in an area that is 50 miles or more from the boundary of a local government unless the board receives a petition to issue the license containing the signatures of two-thirds of the permanent residents residing within a radius of five miles of the United States peat office station nearest to the proposed licensed premises. If there is no United Stales post office station within a radius of five miles of the proposed licensed premises, the petition must be signed by two-thirds of the permanent residents residing within a five -mile radius orthe proposed licensed premises. (c) A petition authorized by this section must be on a form the board prescribes. The applicant must obtain the required signatures within the 110 -day period immediately before submitting the petition to the board. A signature may not be added to or remnved from the petition after the hoard has approved the application. (d) In this section, "permanent resident"means a person 21 years of age or older who bas established a permanent place of abode. A person may be a permanent resident of only one place. (E0: 2/21/2016, Register 217) Authoritrs AS 17.38.010 AS 17.38.160 AS 17.38290 AS 17.38.070 AS 17.38.190 AS 1738.990 AS 17.38.121 3 AAC 306.035. Application for renewal of license. (a) On or before May 1 of each year, the director ,shall send notice that a marijuana establishment must file a renewal application not later than June 30 of the current year. The director shall send the notice to the marijuana establishment's electronic mailing address on Ole with the board. In the notice the directur shall include a hyperlink for the marijuana establishment to access the electronic renewal application by means of the Internet, along with instructions on using and submitting the form. The marijuana establishment must submit the completed renewal application electronically, along with the license renewal fee, to the director not later than June 30 of each year. ICJune 30 falls on a Saturday or Sunday, the deadline is extended to 4:30 p.m. on the fust business day following Jane 30. A marijuana establishment 1140 Case No. 17-0181nformalion Packet Page 105 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.035 Couurace, ConannTe, mm Eu. DEV. 3 AAC 306.035 must maintain a current electronic mailing address on file with the director. A marijuana establishment is not excused from filing a renewal applicalian as required in this section even if the marijuana establishment fails to receive a renewal notice from the director. (b) A marijuana establishment'a renewal application must Il) identify the license sought to be renewed by license number, license type, establishment name, and premises address; (2) provide the information required for a new license application under AAC 306.020(bNl)—(9); (3) report any change from the marijuana establishment's new license application or last renewal application, and pay the fee as provided in 3 AAC 306.100 for board review of any change in (A) the name of the marijuana establishment business; (13) the licensed premises from the last diagram submitted; (C) the marijuana establislunenCs operating plan; and (D) any new product a licensed marijuana product manufactur- ing facility wishes to produce; (4) report, for each licensee listed in 3 AAC 306.020(6x2), (A) any criminal charge on which that licensee has been con- victed in the previous two calendar years; and ( f3) any evil violation of AS 04, AS 17.38, or this chapter in the previous two calendar years; and (5) declare under penalty of unaware falsification that (A) the application is true, correct and complete; (13) the applicant has read and is familiar with AS 17.38 and this chapter, and (C) the applicant will provide all information the board requires in support of the renewal application. (c) If the director determines that the renewal application is com- plete, the director shall give written notice of a renewal application to (1) the applicant; (2) the local government in the area in which the applicant's proposed licensed premises are located; (3) the community council if the proposed licensed premises are located within the boundary of a community council establisbed by municipal charter or ordinance; and (4) any nonprofit community organization that has requested notification in writing. (d) The director may require an applicant for renewal of a license under this chapter to submit fingerprints and pay fees as required by 3 AAC 306.055(x). (e) A licensee- that does not deliver a renewal application to the director on or before June 30 of each year is delinquent and must pay the late renewal application fee under 3 AAC 306.10D(b) with the renewal application. (f) On or befnre August 15 of each year, the director shall deliver a notice of expiration to each marijuana establishment that bas not filed 1141 Case No. 17-018 Information Packet Page 106 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 308.1140 AI.AsKAAmm1LiuYm,,9 Conn. 3 AAC 306.040 • a complete application for renewal of a license, along with any applicable affidavit and the required fec, unless the marijuana estab- lishment has notified the director that it does not intend to seek a renewal ofits license. The director shall deliver the notice of expiration to the electronic mail address the marijuana establishment has pro- vided to the director. A marijuana establishment is not excused from ffiing a license renewal application not Inter than August 31 or each yeareven if the marijuana establishment does nut receive the notice of expiration described in this sectinn. (g) Ira marijuana establishment fails to deliver a complete license renewal application or fails to pay the required renewal fee and the late renewal application fee on or before August 31 of each year, that • marijuana establishment license expires at 12:00 midnight on August 31 of that year. A holder of an expired license shall immediately surrender the license to the board. Any holder of an expired license that seeks authority to operate must file a complete new application tinder 3 AAC 306.020, and 3 AAC 306.025, along with the required fees. iF.ff. 2o21P2016, Register 217) Authority AS 17.79010 AS 17.391W AS 17.382W As 17.30.070 AS 1789.100 AS 17.90.000 AS 17.39.121 3 AAC 306.040. Ownership change to be reported. (a) A If. . reused marijuana establishment shall, not later than 10 days atter an ownership change, retort the change on a form prescribed by the board. (b) If any change required to he reported under this section will result in a change in controlling interest of the marijuana establish- ment license, the marijuana establishment most file an application for transfer of license to another person under 3 AAC 306.045, Ic) In this section, "ownership change" means Il) if the licensee is a partnership, including a limited partner. ship, any change in the identity of the partners, or in the ownership percentages hold by any partners; (2) if the licensee is a limited liability company, any change in the • identity of the members, or in the ownership percentage held by any member or (3) if the licence is a corporation, any sale of corporate stock to a person not currently an owner, or tiny change of the percentage ownership of an existing shareholder. (Elf 2/21/2016, Register 217) Awhoritr. AS 1790.010 A9 17.39.10 AS 17.39200 AS 17.39.070 AS 17.59.100 AS 17.38800 AS 17.88.121 1142 . Case No. 17-018 Information Packet Page 107 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.646 Couasacs, Counusrr% Avu Ec. Dsv. 3 AAC 306.046 3 AAC 30&046. Application for transfer of a license, to an- other person. (a) A person may not receive or transfer a marijuana establishment license or a controlling interest in a marijuana mtab- lishment license issued to a partnership, including a limited partner- ship, a limited liability company, a corporation, or a local government, without applying for and receiving the written consent of the board. Transfer of a license includes a sale of all or part of the interest of m individual owner. (b) An application for transfer of a marijuana establishment license, or ora controlling interest in a marijuana establishment license issued to a partnership, a limited liability company, a corporation, or a local government, must be filed in writing on a form the board prescribes, in compliance with the application procedure act out in 3 AAC 306.026. The application most name the currant holder of the marijuana establishment license and the proposed transferee, including all per- sons listed in 3 AAC 306.020 if the transferee is a partnerehip, limited liability company, a corporation, or a local government. The application most contain (1) the same information about each transferee as is required of an applicant for a new license under 3 AAC 306.020;- (2) a statement, under oath, executed by the current holder of the marijuana establishment license, Bating all debts of the buxineas, all taxes the busine-as owes, current contact information for each cred- itor, and an affirmation that the current holder of the marijuana establishment license has submitted a copy of the tranafer applies - Men to all creditors; and (3) any other informatina requimd by the board for the typo of marijuana establishment license sought to be transferred. (c) When the board receives a complete application for transfer of a license to another person, the director shall immediately send written notice or the proposed transfer to (1) each listed creditor of the current holder of the mnrijuana establishment liconse, along with the amomt shown as owed to that creditor, (2) the local government in the area in which the licensed pmm- ises aro located; (3) the, community council if the licensed premises are located within the boundary of a community council established by munic- ipal charter or ordinance; and (4) soy nonprofit community organization that has requested notification in writing. (d) A current holder of a marijuana establishment license must submit a license renewal application before or at the same time as an application for a transfer of a marijuana establishment license that is submitted after April 30 and before July I. (r•.fr. 2121/2016, Register 217) 1143 Case No. 17-0181n formation Packet Page 108 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.060 Ar.ns6A ArunNur nvg Coo, 3 AAC 306.060 Authority: AS 17.38010 AS 17.89.150 AS 17.36200 AS 17.89.070 AS 17.89.160 AS 17.39.900 A9 17.39.121 3 AAC 808.660. Relocation of licensed premises not allowed. A marijuana establishment license may not be relocated to any other premises. Aholder of a marijuana establishment license that wishes to operate a marijuana establishment at a differeat location must submit a new application for any new premises, and meet surrender an existing lictmm for any premises where the marijuana establishment does not intend to continue its operation. (ER. V2112016, Register 217) Authority: AS 17.39.010 AS 17.99.150 AS 17.36.200 AS 17.39.070 AS 1729.190 AS 1788.900 AS 17.38121 8 AAC 308.066. Criminal justice information and records. (a) Whim filing an application for a new marUuana establishment licmene or transfer are license, the applicant, including each individual listed in 3 AAC 306.020(6)(2), most submit the person's fingerprints and the fees required by the Department of Public Safety under AS 12.62.160 for criminal justice information. (b) The director shall submit the fingerprints to the Department of Public Safety to obtain a report of criminal justice infornmtiun under AS 12.62. The board will use the information obtained under this section to determine if an applicant is qualified for a marijuana establishment license. (c) In this section, "criminal justice information° has the meaning given in AS 12.62.900. (ER. 212MI6, Register 217) Authodtr. AS 17.38010 AS 17.38.150 AS 1738200 AS 17.38070 AS 1728,100 AS 17.89.900 AS 17.38.121 8 AAC 566.060. Protest by local government. (n) Not Imer than 60 days after the director sends notice of an appleation for a new marijuana establishment limnse, renewal of a marijuana establish- ment license, or transfer of a marijuana establishment license to another person, a local government may pretest the application by sending the director and the applicant a writtea protest and the reasons for the protest. The director may not accept a protest received after the 60 -day period. If a local government pretests an application for a new or renewal license or for a transfer of a license to another person, the board will deny the application unless the board finds that the pretest is arbitrary, capricious, and unreasonable. (b) A local government may recommend that the board approve an application for a new license, renewal of a license, or transfer of a license to another person subject to a condition. The board will impose a condition a local government recommends unless the board finds the recommended condition is arbitrary, capricious, and unreasonable. If 1144 Case No. 17-0101nfofmalion Packet Page 109 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING (TEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.065 CnMMME, COkWUNrtY, "a Ec. Dw.. 3 AAC 306.075 the board imposes a condition a local government recommends, the local government shall assume responsibility for monitoring compli- ance with the condition unless the board provides otherwise. (c) Ir a iocal government determines that a marijuana establish- ment bas violated a provision of AS 17.38, this chapter, or a condition the board has imposed on the licensee, the local government may notify the board. Unless the director finds that the local government's notice is arbitrary, capricious, and unreasonable, the director shall prepare the determination as an accusation against the ficensee under AS 44.62.8 0 and conduct proceedings to resolve the matter as pro- vided under 3 AAC 306.820. (Etf. 2/21/2016, Register 217) Aulhoritrt AS 17.36.010 AS 17.88.160 AS 17.38.200 AS 17-38.070 AS 17.38.190 AS 17.38900 AS 17.38.121 3 AAC 306.085. Public participation. A person may object to an application for a new license, renewal of a license, or transfer of a license to mother person by submitting a written statement of reasons for the objection to the board and the applicant not later than 30 days after notice of the application, but not later than the. deadline for objections stated in a posted or published notice of the npplicatian. The objection must be sent to the applicant at the mailing address or electronic mail address provided in the notice of application. If the board determines to conduct a public hearing under this section, an interested person may give oral testimony at the public hearing. (Et1: 2/21/2016, Register 217) Autharilr: AS 17.38.010 AS 17.88.150 AS 17.36200 AS 11.38070 AS 1738.190 AS 1720900 AS 17.611.121 3 AAC 306.070. lfenring on public protest The board may, on its own initintive or in response to an, objection or protest, hold a hearing to ascertain the reaction erthe public or a local government to s m application. The director shall send notice of a hearing under this section as provided in AS 44.62.330 — 44.62.630 (Administmtive Procedure Act). (EA: 2I2ll2016, Register 217) Authority AS 1738.010 AS 17.38.1.50 AS 1738.200 AS 17.8$.070 AS 17.11.190 AS 17.39.900 AS 17.38.121 3 AAC 808.075. Procedure for action on license application. (a) 7be board will decide whether to grant or deny an application not later than 90 days after receiving the complete application. However, the board will not grant or deny the application before (1) the time allowed for n protest under 3 AAC $06.060, unless the local government waives its right to protest, or 1145 Case No. 17-0181nto"ation Packet Page 110 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... FAIT ►��•��rrra��E:gra PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.080 AL Ft Apuim.. rwtnvs Gme 3 AAC 306.080 (2) the time allowed for an olljection under 3 AAC 306.065 has elapsed. (b) Not later than seven days befnm the date set for board action on an application for n new license, renewal of a license, or transfer of a license to another person, the director shall post a meeting agenda listing the matters scheduled for action at that meeting. The board may review an application for a new license, renewal of a license, or transfer ora license to another person, without additional notice to the applicant. (c) The board will consider any written objection, protest, suggested condition, or petition, and also will consider say testimony received at a hearing on public protest held under 3 AAC 306.070 when it considers the application. The director shall retain the written objec- tion, protest, or suggested condition or petition, and the hearing record as part of the permanent record of the board's review of an application. Mr.. 2)21=16, Register 217) Aut6ndtr: AS 17.98.010 AS 17.38.150 AS 17.3x" AS 17.9&U70 AS 17.38.180 AS 17.88.800 AS 17.38.121 3 AAC 300.080. Denial of license application. (a) After review of the application, including the applicant's proposed operating plan and all relevant Information, the board will deny an application for a new license if the board finds that (1) the application is not complete ae required under the applies- ble provisions of 3 AAC 306.020 — 3 AAC 306.055, or contains any false statement of material fact; (2) the license would violate any restriction in 3 AAC 306.010; (8) the license would violate any restriction applicable to the particular license type authorized under this chapter, (4) the license is prohibited under this chapter as a result of an ordinance or election conducted under AS 17.38.210, 3 AAC 306200, or 3 AAC 306.230; (5) the board finds that the operating plan does not adequately demonstrate that the applicant will comply with applicable pmvi- sions of this chapter, or (6) the license would not be in the beat interests of the public. (b) After review of the application and all relevant information, the board will deny an application for renewal of a marijuana establish- ment license if the hoard finds (1) any cause listed in (a) of this section; (2) that the license has been revoked for any cause; (3) that the license has been operated in violation of a condition or restriction the board previously imposed; or (4) that the applicant is delinquent in the payment of taxes due in whole or in part from operation of the licensed business. (c) After review of the application and all relevant information, the 1146 Case No. 17-018 Information Packet Page 111 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.085 Cn nonce, Cmamwm, Atm Ee.. Dev. 3 AAC 306.090 hoard will deny an application for transfer of license to another person if the board finds (1) any cause listed in (al of this section; (2) that the transferor has not paid all debts or taxes arising from the operation of the business licensed under this chapter unless the transferor gives security for the payment of the debts or taxes satisfactory to the creditor or Inn authority, (3) that transfer of the license to another person would result in violation of the provisions of this chapter minting to identity of licensees and financing of licensees; or (4) that the prospective transferee does not have the qualifica- tions of an original applicant required under this chapter. (d) If the board denies an application for a new license, renewal of a license, or transfer of a license to another person, the board will, not later than 15 days ager the board meeting at which the application was denied, furnish a written statement of issues to the applicant, explaining the reason for the denial in clear and concise language, and identifying any statute or regulation on which the denial is based. In the notice of denial the board will inform the applicant of the right to an informal conference under 3 AAC 306.085 and to a formal hearing under 3 AAC 306.090. (E2 221/2016, Register 217) Authority: AS 17.38.010 AS 17.38.150 AS 17.382W AS 17.38.070 AS 17.38:190 AS 17.39.890 AS 17.38.121 3 AAC 308.08.5. informal canferenca. (a) If an applicant for a new license, renewal or a license, or transfer of a license to another person is aggrieved by an action of the board denying the application, the applicant may, not later than 15 days after the date of the written notice ofdenial. request an informal conference with the director or the board. An informal conference requested under this section must be held at a time and place convenient to the applicant and the board, but not later than the next scheduled meeting of the board. An informal conference may be conducted telephonically. (b) If the informal cenfercnce does not resolve the matter to the applicant's satisraction, the applicant may, not later than 15 days after tho last day ofthe informal conference, request a formal hearing under 3 AAC 306.090 by filing a notice of defense in compliance with AS 44.62.390(b). (ER: 221/2016, Register 217) Authority: AS 1758.010 AS 17.38.150 AS 17.38.200 AS 175&070 AS 17.38.190 AS 1758.900 AS 1738.121 3 AAC 306.090. Formal bearing. (a) If an applicant for a new license, renewal of a license, or transfer of a license is aggrieved by an action of the board denying the application, the applicant may request 1147 Case No. 17-016 Information Packet Page 112 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 9, Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.095 AIA iLAAjatwi Tivr. Gntw 3 AAC 906.100 a formal hearing by filing a notice of defense in compliance with AS 44.62.390 not later than 15 days atter the date of the written notice of the denial, or as provided in 3 AAC 306.065(b) if the applicant requested and participated in an informal conference. Failure to file a notice of defense as provided in this section constitutes a wniver of the right to a formal hearing. (b) When an aggrieved person requests a hearing under the section, the board mnv request the office of administrative hearings to conduct the hearing in compliance with due process, AS 44.62.330 — AS 44,62.690 (Administrative Procedure Act), and 2 AAC 64.100 — 2 AAC 64.990, as applicable. (E f. 2121/2016, Register 217) Autborityf AS 173&010 A4 17.99.150 AS 17.98.200 AS 17.99.070 AS 17.38.190 AS 17.38900 AS 17.38.121 9 AAC306.096. Appeals.(a) Anaggrievedapplicantormarij"mane establishment limnse holder may appeal to the board regarding any action of the director, or an employee or agent of the board regarding an application for a new license, a licensu renewal, or a transfer of license to another person. (b) An applicant or marijuana establishment license balder ag- grieved by a final decision of the board regarding an application for a new license, a license renewal, or a transfer of license to another person may appeal to the superior court under AS 44.62.560. (Eff. 2/21/2016, Register 217) Avtburltn AS 17.98.010 AS 17.98.150 AS 1738.200 AS 17.58.070 AS 1738.190 AS 17.98.900 AS 17.88.121 3 AAC 308.100. Fees; refund. (a) The non-refundable application fee for a new madjuun . establishment license or an application to transfer a license to another person is $1,000. (b) The non-refundable application fee for a license renewal sppli- ration is $600. If a renewal application is late sa provided under 9 AAC 306.035(e), an additional non-refundable late renewal applies - tion fee is $1,000. (c) The non-refundable fee to request board approval of a change in a licensed marijuana establishment's business name, licensed prem- ises diagram, operating plan, or proposed new marijuana product is $250. A change fee does not apply to an application for transfer of a license to another person. (d) The annual license fee, to be paid with each application for a new marijuana establishment facility license and each limnse renewal application is (1) for a retail marquana store ticense, $5,000; (2) for a limited marijuana cultivation facility license, $1,000; (3) for a marijuana cultivation facility limnse, $5,000; U48 Case No. 17-0181ntonnation Packet Page 113 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.200 Colnaracs, Cowry. m, ANu Ec.. Don 3 AAC 306.200 (4) for a marijuana concentrate manufacturing facility licunse, $1,600; (5) for a marijuana product manufacturing facility license, $5.000: (6) for a marijuana testing facility license, S1,000. (e) The fee for a marijuana handler permit card is $50. (f) If the board denies an application for a license or for renewal of a license, the board will refund the annual license fee. The board will not refund a license fee atter the license has been issued. (g) Processing fees for late renewal after failure to pay taxes are ns follows: (1) if a licensee pays its delinquent tax after a local government protests renewal of the license, but before the board denies license renewal, $200; (2) if a licensee pays its delinquent tax after appealing the board's denial of a license renewal, but before a hearing officer is appointed to hear the applicant's appeal, $500; (3) if a limasoe pays its delinquent tax after appealing the board's denial of a license renewal, but before the administrative hearing begin:;, $5,000; (4) if n lirenser pays its delinquent tax after an administrative hearing that results in a hearing officer recommendation to deny the license renrwal, $10,000. (Eff. 21218016, Register 217) Authority; AS 17.38.010 AS 1758.150 AS 17.88.2oa A.4 17.38090 AS 17.38.190 AS 17.35.000 AS 17.38.121 Article 2. Local Options. Section Section 200. ]aal option 250. Eaect on licenses of rextHction on 210. chons4 of twit option sm. 220. Wannnol orL.I option 280. Notion ortlm ren W4 ofa local option 230. Pme dum for lout option election election 240. PmWbition of importation or pur- d,a.e 01'r election 3 AAC 306.200. Local options. (a) If a majority of the persons voting on the question vote to approve the option, or if a local govemmont's ossombly or city council passes an ordinance to the sows effect, the local government shall adopt a local option to prohibit (1) the sale or importation for sale of marijuana and any mari- juana product; (2) the uWration of any marijuana establishment, including one or more of the following license types: (A) a retail marijuana store; (B) a marijuana cultivation facility; (C) a marijuana product manufacturing facility, (DI a mnrijuana testing facility. (h) A ballut qurstion to adopt a local option under this section must 1140 Case No. 17-018 lnfortnation Packet Page 114 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC $06.210 Au Annlalsr =E CODE 3 AAC 306.220 atleast contain language substantially similar to: "Shall (name of local government) adopt a local option to prohibit (local option under (a) of Otis section)? (yes or nn).' (c) The ballot for an election on the options set out in (02) of this section must include a brief explanation of the activity that each license type on the ballot may carry out. (d) If a local government dissolves under AS 29.06.960, any marl. juana establishment license issued to that local government expires when the local government dissolves. (e) A local government may not prohibit the personal use and possesaimn of marijuana and marijuana products as authorized under AS 17.38.020. (f) Nothing in 3 AAC 306.200 — 3 AAC 306.260 precludes a local government from applying for a marijuana establishment license under other provisions of this chapter. (Eff. 212112016, Register 217) Aulborityt AS 1729.040 AS 17.:19.210 AS 17.89900 AS 17_ BASK) AS 1728.210 3 AAC 306.210. Change of local option. If a majority of persons voting on the queatinn vote to approve it local option different from one previously adopted under 3 AAC 306.2011 and cumntly in edrect, or if the local government'" asrambly or city council passes an ordinance to . the same effect, the local government shall rhnnv.. the local option to the newly approved option. A ballot question to change a local option under this section most at least contnin Inngunge substantially similar to: "Shall (name of Iornl government) change the local option currently in elrmt, that prohibits Icurrent local option 1, and adopt in its place a lural option to prohibit (proposed local option)? (yea or no)." (Etc. 212112016, Register 217) AutAornr. AS 17,aL = AS 1738.200 AS 1739.9011 Aa 1738.1110 AS 1729210 3 AAC 906220. Removal of local option. (a) If a majority of the persons voting on the quealion vote to remove a local option previously adopted under 9 AAC. 306.200 or 3 AAC 306210 end currently in effect, or if it Meal gnverammiCs aseu-mbly or city council passes an ordinance to the same eirect, that local option is mpealud elrective the first dayof the month alter the elmLion is certified.Alallot question to remove a local option under this section must at least conmin language substantially similar to: "Shall (name of local government) remove the local option currently in effect, that prohibits (current local option), so that no local option continues in effect? (yes or nal." (b) When issuing a license within the boundaries of a local govern- ment that has removed a Intal option, the hoard will give priority to any formerly licensed applicant whose license was not renewed be- causo of the results or the previous ben) option election. However, an U50 Case No. 17-018 Infonna8on Packet Page 115 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.230 Comaurce, Counuum,, mr, Ec. Dw.. 3 AAC 306.240 applicant described in this subsection does not have a legal right to a license and the board is not required to approve the application. (Eff. 2121/2016, Register 217) Authority: AS 17.99.020 AS 17.392110 AS 17.:18.900 AS 17.38.190 AS 1738210 3 AAC 306.230. Procedure for local option election. When it receives a petition to adopt, change, or remove a local option under 3 AAC 306.200 — 3AAC 306.220, the local government shall conduct the election in compliance with the initiative process under the local government's election ordinances and regulations and the applicable provisions of AS 29. (Eff. 2/21/2016, Register 217) Authority: AS 17.88.020 AS 17.38.200 AS 17.38900 AS 17.98.190 AS 17.38210 3 AAC 306.240. Prohibition of importation or purchase after election. (a) If a majority of the voters vote to prohibit the imparta- tion for ante of marijuana and any marijuana product under 3 AAC 306.200(a)(1), or if the local government's assembly or city council passes an ordinance to the same effect, a person, beginning on the first day of the month aB.rr the results of the election are cortified, may not knowingly bring, send, or transport marijuana or marijuana products for sale into the area within the boundary of the local government (b) A person who resides within the boundary of a local government that has adopted it local option under 3 AAC 306.20Ute) may not purchase marijuana or a marijuana product from another person that has brought, seat, or transported marijunna or a maromma pmduct into the local government for sale in violation of the local nption. (c) Notwithstanding (a) or (b) of this section, a licensed marijuana establishment may transport marijuana or any marijuana product through the boundaries of a local government that has prohibited importation or purchase of marijunna if the marijuana or marijuana product is shipped with on vanched transport manifest created in compliance with 3 AAC 306.750 and documenting that the shipment originates and terminates in a place that does not prohibit importation and purchase of marijuana or a marijuana product. (d) In this section, (1) "bring" means to carry or convey or to attempt or solicit to carry or convey, (2) "send" (A) means to cause to be taken or distributed or to attempt or solicit or cause to be taken or distributed; (B) includes use of the United states Postal service; (3) "transport' (A) means to ship by any method; (B) includes delivering or transferring or attempting or solicit- ing to deliver or transfer marijuana or marijuana products to be 1151 Case No. 17-0191nformation Packet Page 116 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.250 At,lxsA Aonnw:-nunvr. Crux 3 AAC 306.260 shipped to, delivrtrd to, or left or held far pickup by any person. (Eff. 2/21/2016, Register 217) Authority: AS 17.38.020 AS 17.38200 AS 17.38.1100 AS 17.38.100 AS 17.38.210 3 AAC 306?50. Effect on licenses of restriction on sale. If a majority or the voters vote under 3 AAC 306.200(a) to prohibit sale of marijuana And marijuana products or the operation of marijuana establishments, or if the assembly or city council passes an ordinance to the same effect, the board will not issue, renew, or transfer to another -person a license for a marijuana establishment with premises located within the boundary or the local government or in the unincor- porated area within 10 miles of the boundaries of the local government. A license for a marijuana establishment within the boundary of the local government or in the unincorporated area within 30 miles of the boundary of the local government is void 90 days after the resulLs of the election are certified. A license that expires during the 90 days atter the certification of a toed option election may be extended until it is void under this section, by payment of a pmmted portion of the annual license fee. (Elf. 2/21/2016, Register 217) Authority. AS 17.38.020 AS 17..38.200 AS 17.78.01K) AS 17118.190 AS 17.38210 3 AAC 306.260. Notice of the results of a local option election. If a majority of the voters vole to adopt, changs, or remove a local option under 3 AAC 306.200 — 3 AAC 306.220 or if the assembly or city council passes an ordinance to the name efrect, the board will notify the Department of Law and the Department or Public Safety of the results of the election. (Eff. 2/21/2016, Register 217) Authority. AS 17.38A20 AS 17.38.200 AS 17.38.8110 AS 17.38.190 AS 17.38.210 Article S. Retail 1H"tugna Stores. Section Beetiou 300. Retail marijuana start Ii. re- 330. Marijuana in uanry tracking .ys' quieted lem 305. Raw mar6usm amre privileges 335, Health and safety requirements mu. Ana prohibited at retail to-enuena 310. T ting required for re ryume end sfwe enerijuen, pmduets 315. A ertim ter retall none 355. PerJraging.on equiing hes 350. Identiu' eq;an rebeling at to pre- atme limrtse vmt sale to person under 21 320. MarQuarm handler permit required 355. Limit an quantity sold 325. Areas restricted at retail marijuana 360. Restriction on advertising of men. start ivans and merijuarm prutucll 1162 Case No. 17-0181nfounation Packet Page 117 of 215 Amending KI BC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.300 Commsses, Conuuatre, Avu Ec. Dsv. 3 AAC 306.305 3 AAC 308.300. Retail marijuana atom license required. (a) Except as permitted under AS 17.38.020, a person may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver marijuana or any marijuana product to a consumer unless the person has obtained a retail marijuana store license from the board in compliance with this chapter, or is an employee or agent acting for a licensed retail marijuana store operating in compliance with this chapter. A person seeking a retail marijuana store license must (1) submit an application for a retail marijuana store liceuse on a farm the board prescribes, including the information set out under 3 AAC 306.020 and 3 AAC 306.315; and (2) demonstrate, to the board's satisfaction, that the appfica d. will operate in compliance with (A) each applicable provision of 3 AAC 306.300 — 3 AAC 306.360 and 3 AAC 306.700 — 3 AAC 306.765; and (R) each applicable public health, fire, safety, and tax code and ordinance of the state and the local government in which the applicants proposed licensed promises arc located. (b) Alicensee of any retail marijuana store, or an employee or agent of a retail marijuana atom, may not have m ownership interest in, or a direct or indirect fn.ncial interest in a licensed marijuana testing facility. (Eff. 2/21/2016, Register 217) Authority. AS 17.39.010 AS 17.98.150 AS 17.38300 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 17.38.121 3 AAC 306.305. Retail marijuana atom privileges. (a) A li- censed retail marijuana atom is authorized to (1) sell marijuana purchased from a licensed marijuana cultiva- tion facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.470, and 3 AAC 306.475 in an amount not exceeding the limit act out in 3 AAC 306.355, to an individual on the licensed premises for consumption off the licensed premises; (2) sell a marijuana product purchased from a licensed marijuana product manufacturing facility, packaged and labeled as required under 3 AAC 306.345, 3 AAC 306.565, and 3 AAC 306.570, in a quantity not exceeding the limit set out in 3 AAC 306.355, to an individual on the licensed premises for consumption off the licensed premises; (3) atom marijuana and marijuana products on the licensed premium in a manner consistent with 3 AAC 306.710 — 3 AAC 306.720; (4) with prior approval of the board, permit consumption of marijuana or a marijuana product purchased on the licensed prem- isrs, in a designated area on the licensed premises. (b) This section dory not prohibit a licensed retail marijuana stare from refusing to sell murijunna or a marijuana product to a consumer. (Eff. 2!21/2016, Register 2171 1153 Case No. 17-0181nfonnation Packet Page 118 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.310 Atkes.l AmuxismATivs Cunt: 3 AAC 306.315 Authnrityr AS 17.38.010 AS 173&180 AS 17.38.400 AS 1738.070 AS 17.38.190 AS 17.38.800 AS 1738.121 s AAC 306.310. Acts prohibited at retail marijuana store. (a) A licensed retail marijuana store may not sell, give, distribute, deliver, or offer to sell, give, distribute, or deliver, marijuana or a marijuana product (1) to a person under 21 years of age; (2) to a person that is under the influence ofan alcoholic beverage, inhalant, or controlled substance; (3) that is not labeled and packaged as required in 3 AAC 306.345 and (A) 3 AAC 306.470 and 3 AAC 306.475; or (B) s AAC 306.565 and 3 AAC 306.570; (4) in a quantity exceeding the limit set out in 3 AAC 306.355; (5) aver the Internet; a licensed retail marijuana stare may only sell marijuana or a marijuana product to a consumer who is physically present on the licensed promises; (6) atter the expiration date shown on the label of the marijuana or marijuana product. (b) A licensed retail marijuana store may not (1) conduct business on or allmv a consumer to acres the retail marijuana store's licensed premises between the hours of 6:00 a.m. and 8:00 a.m. each day, (2) allow a person to consume marijuana or a marijuana product on the retail marijuana stores licensed premises, eicept as provided in 3 AAC 306.305(aX4); (3) offer or deliver to a consumer. m a marketing promotion cr for any other reason, (A) free marijuana or marijuana product, including a sample; or (B) alcoholic beverages, free or for compensation. (Eff. 212112016, Register 217) Authority: AS 17.38.010 AS 1738.180 AS 17.38200 AS 17.38.070 AS 1738.190 AS 17.311.900 AS 17.38.t21 s AAC 306.315. Application for retail marijuana store li- manse. A person seeking a new retail marijuana store license must submit an application on a form the board prescribes, including the information required under 3 AAC 306.020 and (1) a copy of the food safety permit required under 19 AAC 31.020(x); and (2) in the operating plan required under 3 AAC 306.020(c), a description of the way marijuana and marijuana products at the retail marijuana store will be displayed and sold. (Eff. 2121/2016, Register 217) 1154 Case No. 17-018 Information Packet Page 119 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.320 ComEaca, Couuumm, Ann Ec. Dw.. 3 AAC 306.330 Authority: AS 17.38.010 AS 17.88.160 AS 17.38.200 AS 1738.070 AS 1738.190 AS 17.38.0110 A.9 17.38.121 3 AAC 806.820. Marijuana handler permit required. A retail marijuana atom shall ensure that (1) each licensee, employee, or agent who is required or permitted to be physically present on the licensed premises at any time obtains a marijuana handler permit as provided in 3 AAC 306.700 before being licensed or employed at a retail marijuana store; and (2) each licensee, employee, or agent has that persona marijuana handler permit card in that person's immediate possession, or a valid ropy on file on the premises, at all times when on the licensed premises of the retail marijuana store. (ER. 2/21/2016, Register 217) Authority: AS 37.38.010 AS 17.38.150 AS 17.38100 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 17.38.121 3 AAC $06.325. Acce_<e restricted at retail marijuana atom. (a) A person under 21 years of age may not enter a retail marijuana store. (b) Ench entry to a retail marijuana store must be posted with a sign that says `No one under 21 years of age allowed." The sign must be not less than 12 inches long and 12 inches wide, with letters at least one-half inch in height in high contrast to the background of the sign. (c) An area of a retail marijuana stores licensed premises where marijuana or any marijuana product is stacked fur sale or dispensed for sale is a restricted access area. The retail marijuana store must post signs, require identification, and escort visitors in compliance with 3 AAC 306.710. (EA. 2/21=16, Register 217) Authority AS 17.38010 AS 17.38.150 AS 17.38200 AS 17.38.070 AS 17.39.190 AS 17.88.900 AS 17.38.121 3 AAC 306.330. Marijuana inventory tracking system. (a) A retail marijuana atom shall use a marijuana inventory tracking system as provided in 3 AAC 306.730 to ensure all marijuana and marijuana product in the retail mnrijunna stores possessiun is identi- fied and tracked from the time the retail marijuana atom receives any batch of marijuana or let of marijuana product through the sale, transfer to another licensed marijuana establishment, or disposal of the batch of marijuana or lot of marijuana product. (b) When marijuana from a marijuana cultivation facility or mari- juana product from a marijuana product manufacturing facility is delivered or transported to the licensed premises of a retail marijuana store, the retail marijuana store shall immediately enter identification information for that batch of marijuana or lot of marijuana product into the retail marijuana atoms marijuana inventory tracking system. 1155 Case No. 17-0181nfannation Packet Page 120 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.335 Arnsun Aouoasrsn7 ve Cope 3 AAC 306.345 A retail marijuana store may not accept marijuana or a mnrijuana product that docs not have a valid transport manifest generated from the marijuana inventory tracking system of the marijuana establish- ment that originated the delivery. (c) A retail marijuana store shall reconcile each transaction from the retail marijuana atom's point-orsale system and current inventory to its marijuana inventory tracking system at the close of business each day. (d) A retail marijuana atone shall account for any variance in the quantity of marijuana or marijuana product the retail marijuana store received and the quantity it sold, transferred, or disposed of. (Eff. 212112016, Register 217) Autharity. AS 17.38.010 AS 1758.150 AS 17.38.200 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 17.38.121 3 AAC 306.335. Health and safety requirements. Aretail mar- ijuana store shall comply with each applicable health and safety requirement set out in 3 AAC 306.735. (Eff. 2121/2016, Register 217) Authorltr- AS 17.38.010 AS 17.311.150 AS 17.38250 AS 17.38.070 AS 17.38,190 AS 17511.900 AS 17.38.121 3 AAC 306.340. 7iating required for marijuana and mari- juana products. A retail marijuana store may not nell, give, distrib- ute, deliver, or offer to sell, give, distribute, or deliver, marijuana or a marijuana product until all laboratory testing required under 3 AAC 306.645 has been completed, and the label required under 3 AAC 306.475 or 3 AAC 306.570 is aSred. (Eff. 212112016, Register 217) Authority: AS 1758.010 As 1755.150 AS 17.38.200 AS 17.38.070 AS 17.38.190 AS 1738.900 AS 17.38.121 3 AAC 306.345. Packaging and labeling. (a) Aretail marijuana store shall assure that (1) marijuana sold on its licensed premises is packaged and labeled in compliance with 3 AAC 306.470 and 3 AAC 306.476; (2) any marijuana product sold on its licensed promises is pack- aged and labeled in compliance with 3 AAC 306.565 and 3 AAC 306.670; and (3) marijuana or a marijuana product sold is packaged in opaque, resealable, child -resistant packaging when the purchaser leaves the retail section of the licensed premises; the packaging must be designed or constructed to be significantly difficult for children under five years of age to open, but not normally difficult for adults to use properly. (b) In addition to labeling requirements provided in (a) of this 1156 Case No. 17-018 Inannation Packet Page 121 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & 2 REGULAR MEETING: MARCH 22, 2017 3 AAC 306.350 Comizacx, Cuuxu ,, ani Ec. Dtv 3 AAC 306.355 section, a retail marijuana store shall affix a label to each package of marijuana or marijuana product that (1) identifies the retail marijuana atom selling the marijuana product by name or distinctive logo and marijuana establishment license number, (2) states the total estimated amount of THC in the labeled product; and (3) contains each of the following statements: (A) "Marijuana has intoxicating effects and may be habit form. ing and addictive."; (R) "Marijuana impairs concentration, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence."; (C) 'There are health risks associated with consumption of marijuana."; (D) "For use only by adults twenty-one and older. ]seep out of the mach of children,"; (E)'Marijuana should not he used by women who are pregnant or breast feeding.". (Efi: 212ln016, Register 217) Auth.rltyr. AS 77.28.010 AS 17.38.150 AS 17.98.200 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 17.98.121 3 AAC 308.350. Identification requirement to prevent sale to person under 21. (a) A retail marijuana store shall refuse to sell marijuana or a marijuana product to a person who does not produce a form of valid photo"rephic identification showing that person is 21 years of age or older. (b) A valid form of photographic identification includes (1) an unexpired, unaltered passport; (2) an unexpired, unaltered driver's license, instruction permit, or identification Lard of a state or territory of the United states, the District of Columbia, or a province or territory of Canada; (3) an identification card issued by a federal or state agency authorized to issue a drivers license or identification card. (Eff. 212 112 01 6, Register 217) Authmitp AS 1738,010 AS 17.38.160 AS 17.38.200 AS 17.98. 070 AS 17.38.190 AS 17.38.9110 AS 17.38.121 3 AAC 306.355. Limit on quantity sold. Aretail marijuana store may not sell in a single transaction (1) more than one comes of usable marijuana; (2) mom than seven grams or marijuana concentrate for inhala. tion, or (3) marijuana or marijuana products if the total amount of mar- ijuana, marijuana products, or both marijuana and marijuana prod. 11.57 Case No. 17-018 Information Packet Page 122 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 3U6.360 Atnsm AONINISTn.ml'F. CWW 3 AAC 3Uti.3(W nets sold contains more than 5,600 milligrams of THC. 1£.ff. 712112016, Register 217) Authoritp AS 17.38.010 AS 17.38.160 AS 17.88.200 AS 17.38.070 AS 17.3&190 AS 17.38.900 AS 17.38.121 3 AAC 306.360. Restriction on advertising of marijuana and reari liana products Gt) An -tall marijuana store may have not more than three signs, visible to the general public from the public right-of- way, ight-aFway, that identify the retail marijuana atom by its business name. A sign may he placed in the retail marijuana store's window or attached to the outside of the licensed premises. The size of each sign may not exceed 4,600 square inches. (b) An advertisement for marijuana or a marijuana product may not contain a statement or illustration that (1) is false or misleading; (2) promotes excessive consumption; (3) represents that the use of mar;juana has curative or therapeu- tic eRecLs• (4) depicts a person under 21 years of age ransoming marijuana; or (5) includes an object or character, including a toy, a cartoon character, or any other depiction designed to appeal to a person under 21 years of age, that promotes consumption of marijuana. (c) A retail marijuana atom may not place an advertisement for marijuana or a marijuana product, except as provided in (a) of this section, (1) within 1,000feet ofthe perimeter of any child -centered facility, including a school, a child care facility or other facility providing services to children, a playground or recreation center, a public park, a library, or a game arcade that is open to persons under 21 years of age; (2) on or in a public transit vehicle or public transit shelter; (3) on or in a publicly awned or operated property; (4) within 1,000 feet of a substance abuse or treatment facility; or (5) on a campus for postsecondary education. (d) A retail marijuana store may not use giveaway coupous as promotional materials, or conduct promotional activities such as games or competitions to encourage sale of marijuana or marijuana products. (e) All advertising for marijuana or any marijuana product must contain each of the following warnings: (1) "Marijuana has intoxicating elfeca and may be habit forming and addictive."; (2) "Marijuana impairs concentration, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence.',- (3) nfluence.";(3) "There ere health risks associated with consumption of mari- juana."; 1158 Case No. 17-018 Information Packet Page 123 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.400 Cornmece, Coulmw rr, ANn Ec. Dhv. 3 AAC 306.400 (4) "For use only by adults twenty-une and older. Keep out of the reach of children."; (5) "Marijuana should not be used by women who are pregnant or breast feeding.". Mr. 212112016, Register 217) Authority. AS 1736.010 AS 17.38.150 AS 17.38.200 AS 17.38.070 AS 17.38.190 AS 17.36.900 AS 17.38.121 Article 4. Marijuana Cultivation Facilities. smetf a Section. 400. MaNuana cultivation fac6ity Ike— 440. Health and safety requirements required 445. standards for cultivation and prepa- 405. Standard marijosns cultivation fa- ration dfitUtivilesea end prohibited eda 450. Pmductiun ofmariivam mn--t W 410. [6mlted ma:0u:ma culnvatinn itch- roblbiled Icy: privileges end prohibited ode P 420. Appbcatton for marijuam rvitiva- 456. &-q had labmatmy feeling tion fadlity llansc 460, Samples 426. Mnriivano handler prrmk required 485. Random sampling 430. Restricted acmes area 470. Padagwgofnoui ana 435. bt.Ai.an. inveabry u,]dog ays- 475. Labefing of marUuena W. 480. Marijuana lax to ba paid 3 AAC 306.400. Marijuana cultivation facility Beene re- quimd. (a) Except as provided under AS 17.38.020, a person may not plant, propagate, cultivate, harvest, trim, dry•, cure, package, or label marijuana grown at a place under that persona control or sell mari- juana grown at a plate under that persan's control to a marijuana establishment unless the person has obtained a marijuana cultivation facility license from the board in compliance with this chapter or is an employee or agent acting for a licensed marijuana cultivation facility. The board will issue the following types of marijuana cultivation facility licenses, with the privileges and subject to the prohibitions set out in 3 AAC 306.405 and 3 AAC 306AID: (1) a sLlndard marjjuana cultivation facility license; (2) a limited marijuana eultivntion facility license to a person operating a marijuana cultivation facility with fewer than 500 square feet under cultivntion. (b) A person seeking a standard nr limitnd marijuana cultivation facility license as provided in (a) of this section must (1) submit an application fur the applicable marijuana cultivation facility license on a form the board prescribes, including the infar- motion set out under 3 AAC 306.020 and 3 AAC 306.420; and (2) demonstrate to the board's satisfaction that the applicant will operate in compliance with (A) each applicable provision of 3 AAC 306.400 — 3 AAC $06.480 and 3 AAC 306.700 — 3 AAC 306.755; and (B) each applicable public health, fire, safety, end tax rode and ordinance of the state and the local government in which the applicant's proprr<ed licensed premises are located. 1159 Case No. 17-0181nformation Packet Page 124 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.405 Atncvl Auatms-ra.trnT Conn. 3 AAC 306.405 (c) A licensee of a marijuana cultivation facility, or an employee or agent of a marijuana cultivation facility, may not have an ownership interest in, or a direct or indirect financial interest in a licensed marijuana testing facility. (EII. 2(21/2016, Register 217) Authority: AS 17.38.010 AS 17.98.121 AS 17.38200 AS 17.38.030 AS 17.38.150 AS 17.88.900 AS 17.89.070 AS 17.38.100 8 AAC 800.406. Standard marijuana cultivationfacility.priv- ileges and prohibited acts. (a) A licensed standard marijuana cultivation facility is authorized to (1) propagate, cultivate, harvest, prepare, cum, package, atom, and label marijuana; (2) sell marijuana only to a licensed retail marijuana atom, to soother licensed marijuana cultivation facility, or to a licensed marijuana product manufnctllring facility; (3) provide samples to a licensed marijuana testing facility for testing; (4) atom inventory on the licensed premises; any stared inventory must be secured in a restricted access area and accounted for in the marijuana cultivation facility's marijuana inventory tracking system as required under 3 AAC 306.730; (5) transport marijuana in compliance with 3 AAC 306.750; (6) conduct in-house testing for the marijuana cultivation facili- ty's own use; (7) provide marijuana samples to a licensed retail marijuana store or marijuana product manufacturing facility for the purpose of negotiating a sale. (b) A licensed standard marijuana cultivation facility may also apply for a marijuana product manufacturing facility license and a retail marijuana atom license. A standard marijuana cultivation facil- ity that obtains say, other marijuana establishment license shall (1) conduct any product manufacturing or retail marijuana store operation in a room completely separated from the marjjuana cultivation facility by a secure door when co -located; and (2) comply with each provision of this chapter that applies to any other type of marijuana establishment license that the standard marijuana cultivation facility licensee obtains. (c) A licensed standard marijuana cultivation facility may not (1) sell, distribute, or transfer marijuana or a marijuana product to a consumer, with or without compensation; (2) allow any person, including a licensee, employee, or agent, to consume marijuana or a marijuana product on the licensed premises or within 20 feet of the exterior of any building or outdoor cultivation facility on the licensed premises; (3) treat or otherwise adulterate marijuana with any organic or nonorganic chemical or other compound to alter the color, appear- ance, weight, or odor of the marijuana; 1160 Case No. 17-018 Information Packet Page 125 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.410 COMMWE, COMILIalTY, Asa Er. Det•. 3 AAC 306.420 (4) except as permitted under a marijuana product manufactur- ing facility license, extract marijuana concentrate, using any process described in 3 AAC 306.555, at the licensed premises; (5) sell marpuana that is not packaged and labeled in compliance with 3 AAC 306.470 and 3 AAC 306.475. (Etf. 2121/2016, Register 217) Authorltyl AS 1738.010 AS 1738.150 AS 17.38.200 AS 17.38.070 AS 17.38.190 AS 1738.900 AS 1758.121 3 AAC 306.410. Limited mer(juana cultivation facility: privi- leges and prohibited acts. Alicensed limited marijuana cultivation facility (1) has the privileges set out in 3 AAC 305.405(a) and (b), except that it must have fewer than 500 square feet under cultivation; and (2) is subject to each prohibition set out in 3 AAC 306.405(c). (ER: 2/21M016, Register 217) Authority: A4 1733.010 A9 1738.150 AS 17.38200 AS 1735070 AS 1728.190 AS 1728.900 AS 17,39.121 3 AAC3U6.420. Application for mamuaae cultivation facility license. An npplicant for a new standard marijuana cultivation facility licensa or a new limited marijuann cultivation facility license most file an npplicatinn on a form the board prescribes, including (1) the information required under 3 AAC 306.020; and (2) the proposed marqunna cultivation facilitya operating plan, including, in addition to the inronnalion required under 3 AAC 306.020(c), (A) the aim of tine space intended to be under cultivnLiun; (R) the growing medium to be used; (C) fertilizers, chemicals. gases, and delivery systems, includ- ing carbon dioxide, management, to be used; (D) the irrigniinn and wasto water systems to be used; (E) waste disposal arrangements; (F) odor control; and (G) the testing procodun, and protocols the marijuana cultiva- tion facility will follow. (Etf. 2/21/2016, Register 217) Authority: AS 1739.010 AS 1738.150 AS 17.39200 AS 17.38.070 AS 17.38.190 AS 17.38900 AS 1758.121 FAibr4 note T1u fran fur nn n9plia- fimmmieavailable.lineup^:videdin lion for a tnnri uaoa rullivation hidlily, the editml note under 3 AAC 308.020. 1161 Case No. 17-01B Information Packet Page 126 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P g Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.425 AI sK%AnMINN RAT1VE Gun: 3 AAC 306.435 3 AAC 306.426. Marijuana handler permit required. A mari- juana cultivation facility shall ensure that each licensee, employee, or agent who is required or permitted to be physically present on the licensed premises at any time (1) obtains a marijuana handler permit as provided in 3 AAC 306.700 before being present or employed at the marUwna cultiva- tion facility's licensed promises; and (2) has the marijuana handler permit card in the person's imme- diate possession, or a valid copy on file on the premises, at all times while on the marljnnnn cultivation facility's licensed premises. (Etf. 212ln016, Register 217) Authorlty: AS 17.38.010 AS 17.38.160 AS 17.33200 AS 17.38.070 AS 17.38.100 AS 17.38.900 AS 17 38.121 3 AAC 306.430. Restricted access area. (a) A marijuana culti- vation fatality shall conduct any operation in a restricted access area in compliance with 3 AAC 306.710 and this section. (b) A marijuana cultivation facility shall conduct any marijuana growing operation within a fully enclosed secure indoor facility or greenhouse with rigid walls, a roof, and doors. Where not prohibited by local government, outdoor production may take place in non -rigid greenhnuses, other structures, or an expense of open or cleared ground fully enclosed by a physical barrier. Th obscure public view of the premises, outdoor production must be enclosed by a sight -obscuring wall or fence at least six feet high. (c) Amarijuana cultivation facility shall ensure that any marduana at the marijuana cultivation facility (1) cannot be observed by the public from outside the marijuana cultivation facility; and (2) does not emit an odor that is detectable by the public from outside the cultivation facility except as allowed by a local govern. ment conditional use permit process. (d) AmarUuana cultivation facility shall have full videoaurveillance of the licensed premises as required under 3 AAC 306.720, including any area where marijuana is grown, processed, packaged, or stored, or where marijuana waste is destroyed. (Eff. 2/213016, Register 217) Authority. AS 17.38.010 AS 17.38.160 AS 17.38.200 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 1736.121 3 AAC 306.435. Marijuana inventory tracking system. (a) A marjjuana cultivation facility shall use a marijuana inventory tracking system in compliance with 3 AAC 306.730 to ensure all marijuana propagated, grown, or cultivated on the marijuana cultivation facility's premises is identified and tracked from the time the marijuana is 1162 Case No. 17-0181nfonnation Packet Page 127 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.440 CO. l XcE, COMMUHrry, AND Ec. Dw.. 3 AAC 306.440 propagated through transfer to another licensed marijuana establish- ment or destruction. The marijuana cultivation facility shall assign a tracking number to each plant over eight inches tall. When harvested, bud and flowers, clones or cuttings, or leaves and trim may he combined in harvest batches of distinct strains, not exceeding five pounds. Each harvest batch must be given an inventory tracking number. Clones or cuttings must be limited to 60 or fewer plants and identified by a batch trncking number. (b) A marijuana cultivation facility shall record each sale and transport of each batch in its marijuana inventory tracking system, and shall generate a valid transport manifest to accompany each transported batch. (c) A marijuana cultivation facility shall record in its marijuana inventory tracking system all marijuana used to provide a sample authorized under 3 AAC 306.460 for the purpose of negotiating sales, including (1) the amount of each sample; (2) the retail marijuana store or marijuana product manufactur- ing facility that received the sample; and (3) the disposal of any expired or outdated promotional sample returned to the marijuana cultivation facility. (ER. 2/21/2016, Reg- ister 217) Authority: AS 1758.010 AS 17.96.150 AS 17.38.207 AS 1758.o70 AS 1736.180 AS 17.36.900 AS 17.38.121 3 AAC 306.40. Health and safety requirements. (a) A mari- juana cultivation facility shall comply with all applicable health and safety regnirementa set out in 3 AAC 306.735 and the additional requirements set out in this section. (b) A marijuana cultivation facility shall ensure that any licenser, employee, or agent who is present at the marijuana cultivation facility and in contact with any marijuana (1) %veers clean clothing appropriate for the duties that person performs; (2) wears protective apparel, such as head, face, hand, and arm coverings, as necessary to protect marijuana from contamination; and (3) practices good sanitation and health babits. (Eff. 2I2ll2016, Register 217) Authority: AS 17.18.010 AS 17.38.150 AS 17.38.200 AS 17.38.070 AS 17.36.190 AS 17.38.900 AS 17.88.121 1163 Case No. 17-018 Information Packet Page 128 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-U P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.445 Ai..vn A juiNi,=,NT nT Cour 3 AAO 806.455 3 AAC 306.445. Standards for cultivation and preparation. A marijuana cultivation facility shall use registered scales in compliance with AS 45.75.080 and 3 AAC 306.745. (Etf. 7121)2016, Register 217) Authontp AS 17.38.010 AS 17.3aA50 AS 17.38.200 AS 17.38.070 AS 17.39.190 AS 17.38.000 A3 17.19.1.11 3 AAC 3(16.450. Production ofmarijuana concentrate prahib- ited. A marijuana cultivation facility may not produce or possess marijuana canctmtrate that was extracted using any process described in 3 AAC 306.455 on the marijuana cultivation facility's licensed premises unless the marijuana cultivation facility also bas a mari- juana product manufacturing facility license. Any extraction or pro- duction of marijuana concentrate on the premises or a licensed mari- junna cultivation Family must (1) he in a separate room that (A) isphysirallysaparatedbyasecuredourfmmanycnitivation aran; and (B) has a sign that clearly identifies the room as a marijuana concentrate production area, and warns unauthorized persons to stay out; and (2) comply with all applicable provisions of 3 AAC 306.500 — 3 AAC 306.570. [Eff. 212112016, Register 217) Authority: AS 17.38.010 AS 17.88.150 AS 17.38200 AS 17.38.070 AS 17118.190 AS 17.38800 AS 17118.121 3 AAC 308.455. Required laboratory testing. (a) A marijuana cultivation facility shall Provide a sample or each harvest batch of marijuana produced at the facility to a marijuana testing facility and may not sell or transport any marqumm until all laboratory testing required under 3 AAC 306.645 has been completed. (b) 7b comply with (a) of this section, a marijuana cultivation facility shall (1) collect a random, homogenous sample for testing by segregat- ing harvested marijuana into batches of individual strains of bud and Hower, then selecting a random sample from each batch in an amount required by the marijuana testing facility; (2) designate an individual responsible for collecting each sample; that individual shall (A) prepare a signed statement showing that each sample has been randomly selected for testing; (B) provide the signed statement to the marijuana testing facility; and (C) maintain a copy as a business record under 3 AAC 306.755; and 1164 Case No. 17-018 Infoanation Packet Page 129 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 2 REGULAR MEETING: MARCH 22, 2017 3 AAC 306.460 Connleaca, CoN narray, me Ec. Dsv. 3 AAC 306.460 (3) transport the sample to the marijuana testing facility's li- censed premises in compliance with 3 AAC 306.750. (c) A marijuana cultivation facility shall segregate the entire batch from which the testing sample was selected until the marijuana testing facility reports the results from its tests. During this period of segregation, the marijuana cultivation facility that provided the sa n- ple shall maintain the batch in a secure, mol, and dry location to prevent the marijuana from becoming contaminated or losing its efficacy. The marijuana cultivation facility that provided the sample may not sell or transport any marijuana fmon the segregated batch until the marijuana testing facility has completed its testing and provided those results, in writing, to the marijuana cultivation facility that provided the =ample. The marijuana cultivation facility shall maintain the testing result: as part of its business books and records. (Eff. 2/21/2016, Register 217) Authoritri AS 17.38.010 AS 17.38.150 AS 17.38.200 AS 17.38.070 AS 17.38.190 A0 17.38.90D AS 17.38.121 3 AAC 306.460. Samples. (a) Amarijumm cultivation facility may provide a free sample of marijuana to a retail marijuana store if packaged in a sample jar containing not more than three and one-half grams of marijuana and protected by a plastic or metal mesh screen to allow customers to smell the product before purchase. (b) A marijuana cultivation facility may provide a free sample of marijuana to a retail marijuana atom or marijuana product manufac- turing facility as follows: (1) a sample provided for the purpose of negotiating a sale may be not more than one ounce; (2) a marijuana cultivation facility may not provide any one licensed retail marijuana store or marijuana product manufacturing facility with more than one ounce of marijuana per month free -of - charge for the purpose of negotiating a sale. (c) A retail marijuana store that receives a marijuana sample may not sell the marijuana sample to a customer, and shall either (1) return the marijuana sample to the marijuana cultivation facility that provided the sample; or (2) destroy the marijuana sample after use and document the destruction in the retail marijuana store's marijuana inventory control system. (Eff. 2/21/2016, Register 217) A.dmrlt3n AS 17.38010 AS 17.38.150 AS 17.38200 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 17.38.121 1165 Case No. 17-018 Information Packet Page 130 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.465 Ai sw AnMisi n yr vs Cnirr. 3 AAC 306.470 3 AAC 306.466. Random sampling. (a) The board will or the director shall from time to time require a standard or limited mari- juana cultivation facility to provide samples of the growing medium, soil amendments, fertilizers, crop production aide, pesticides, or water for random compliance checks. The sample may be strained for pesticides and chemical residues, screened for unsafe levels of metals, and used for other laboratory teats the director finds to be in the interests of the public. The marjjueon cultivation facility shall bear all meta of testing under this subsection. (b) When the board or the director orders random sampling under this section, the director shall identify a licensed marijuana testing facility to Parisian the testing. The marijuana testing facility shall collect the test aamplea. The marjjuann cultivation facility shall cooperate to facilitate the collection of samples. (Fill 2121/2016, Regis- ter 217) Authority: AS 17.98.010 AS 17.38.160 AS 17.38.200 AS 17.98.070 AS 17.38.190 AS 17.38.900 A9 17.38.121 3 AAC 306.470. Packaging of marijuana. (a) Ann rduana culti- vation facility shall package its marijuana bud and flower for sale (1) to a retail marijuana store, either (A) in a package net exceeding one ounce for resale to consum- ers without additional handling by the retail marijanna atom except to add the retail marijunna store's own (i) identifying name or logo; and (it) license number, or (B) in a wholesale package not exceeding five pounds for re- packaging by the retail marijuana atone; or (2) to a martiunna product manufacturing facility in a wholesale package (A) not exceeding five pounds; and (B) consisting of a single strain or a mixture of strains as identified on the label. (b) When a marijuana cultivation facility packages marijuana for a retail marijuana atom to sell to a consumer without repackaging, the packaging may not have any printed images, including cartoon char - actin, that specifically target persons under 21 years of age. In addition, the packaging must protect the product from contamination and may not impart any toxic or damagingsubstance to the marijuana. (c) Each package prepared in compliance with this section must be identified by a tracking label generated for tracking by the marijuana cultivation facility's marijuana inventory tracking system. (d) A marijuana cultivation facility shall prepare martiuena for transport or transfer to another marijuana establishment by (1) placing marijuana packaged in compliance with (a) — (e) of this section within a sealed, tamper -evident shipping container, 1166 Case No. 17-016 Information Packet Page 131 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.475 Cmoaauc , CowamrrK Asa Ec, Dev. 3 AAC 306.475 (2) affixing a label in compliance with 3 AAC 306.475 to the shipping container, and (3) generating a transport manifest from the marijuana cultiva- tion facilityls marijuana inventory tracking system; the transport manifest must remain with the marijuana at all times while being transported, and a copy most be given to the licensed marijuana establishment that receives the shipment. (ER. 2121/2016, Register 217) Authority: AS 17.89.010 AS 17.89.180 AS 17.38.200 Ag 17.38.070 AS 17.38.190 AS 1738aoo AS 1739.121 3 AAC 306.476. Labeling of marijuana. (a) When a marijuana cultivation facility packages marijuana for a retail marijuana store to sell to a consumer without repackaging, the marijuana cultivation facility shall affix a label to each package of marijuana or marijuana product that contains each of the fallowing statements: (1) 'blarjunna has intoxicating effects and may be habit forming and addictive.' (2) 'Marijuana impairs concentration, coordination, and judg- mmL Do not operate a vehicle or machinery under its influence.'; (3) 'There we health risks associated with consumption of mari- Jas (4) 'For use only by adults twenty-one and older. Keep out of the reach of children."; (5) 'Marijuana should not be used by women who are pregnant or breast feeding.'. (b) With each harvest batch of marijuana void, a marijuana cultiva- tion facility shall disclose in writing (1) each sail amendment, fertilizer, and other crop production aid applied to the growing medium or marijuana plant included in the batch, including any pesticide, herbicide, or fungicide that was used; and (2) the name of the licensed marijunnn testing facility that per- formed any required laboratory teat and the results of each required laboratory test. (c) A marijuana cultivation facility may not label marijuana as organic. (d) To each package of marijuana sold to another marijuana estab- lishment, a marijuana cultivation facility shall affix a label setting out. (1) the come and license number of the marjjunna cultivation facility wham the marijuana was grown; (2) the harvest batch number assigned to the marijuana in the package; (3) the net weight of the marijuana in the package, (A) not including weight of the shipping container, and (B) using a standard of measure compatible with the marijuana cultivation facility's marijuana inventory tracking system; and 1167 Case No. 17-018 Information Packet Page 132 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P g Z REGULAR MEETING: MARCH 22, 2017 8 AAC 306,480 AnwamAuelmrsrnnr vm Corp. 3 AAC 306.480 (4) a complete list of all pesticides, fungicides, and herbicides used in cultivation of the marijuana. (e) If a marijuana cultivation facility transports wholesale mari- juana to another marijuana establishment for sale at retail or for use in manufacturing a marijuana product, a label must be af5xed to the shipping container sbowing that a licensed marijuana testing facility has tested each harvest batch in the shipment ns provided in 3 AAC 806.646. The label must report the test results, including (1) a cannabinoid potency profile expressed as a range of percent- ages that extends from the lowest percentage to highest percentaga of concentration for each cannabinoid listed from every test con- ducted on that strain of marijuana from the same marijuana cultivation facility within the last three months; (2) a statement listing the results of microbial testing required under 3 AAC 306.645(bX2); (3) a statement luting the results of residual solvent testing required under 3 AAC 306.645(6X3), if applicable; and (4) a statement listing any contaminants for which the product was tested in addition to contaminants for which 3 AAC 306.645(b) requires testing; any additional tested contaminants include (A) molds, mildew, and filth; (B) herbicides, pesticides, and fungicides; and (C) harmful chemicals. (f) If a marijuana cultivation facility ships wholesale marijuana from a harvest batch that has not been tested for each contaminant listed in (e)(4) of this section, the label for that batch must include a statement ideutifying each contaminant listed in (e)(4) of this section for which that harvest batch has not been tested. (ER 7121/2016, Register 217) Authority: AS 17.38.010 AS 17.38.150 AS 17.38280 AS 17.88.970 AS 1738.190 AS 17.38.900 AS 17.38.121 3 AAC 306.480. Marijuana tax to be paid. A marijuana cultiva- tion facility, including a standard marijuana cultivation facility and a limited marijuana cultivation facility, shall submit monthly reports is the Department of Revenue and pay the excise tax required under AS 43.61.010 and 43.61.020 on all marijuana sold or provided as a sample to a marijuana establishment, (Eff. 7/21/2016, Register 217) Authorityi AS 17.38.010 AS 17.38.121 AS 1738200 AS 17.88.030 AS 1738.150 AS 17.38.900 AS 1728.979 AS 17.38.190 1168 Case No. 17-018 Information Packcl Page 133 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.6. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.500 CANNENCE, Coaumm, Arm Ec. Dtv. 3 AAC 306.505 Article 5. Marijuana Product Manufacturing Facilities. Section Section 500. Marijuana product manufacturing 510. Marijuana handler pernut and Lod safety, worker training facility license required 505. hlad'unna product manufacturing M. Re meted a. and start, eren 590. Marijuana inventory tucking ap- facility priv0egee t® 610. Mbnroh;dauaaa educt 595. Health and rely standards ftemdIlly 550, Required laboratory tinting 515. Marijuana concentrate manufactur- 555. Pructian ofmarijama emrentnte ing facility Iimtue 550. Potency limits peraerving and trans - 520. Application for marijuana product action for edible ahariivana prod- mmnufacturing facility license acts 525. Approval of canerntratte and mari- M. packaging of marijuana products juana erduota 570. Labeling of marijuana preducb 3 AAC 306.500. Marijuana product manufacturing facility license required. (a) A person may not extract marijuana concen- trate for sale or formulate or manufacture any marijuana prduct for sale unless that person has obtained a marijuana product manufac- turing fatality license from the board in compliance with this chapter, or is an employee or agent acting for a licensed marijuana product manufacturing facility. The board will issue (1) a standard marijuana product manufacturing facility license; and (2) a marijuana concentrate manufacturing facility license. (b) A person seeping any type of marijuana product manufhhcturing facility license must (1) submit an application for a marijuana product manufacturing facility license on a form the board prescribes, including the infor- mation set out under 3 AAC 306.020 and 3 AAC 306.520; and (2) demonstrate to the board's satisfaction that the applicant will operate in compliance with (A) each applicable prevision of 3 AAC 306.500 — 3 AAC 306.570 and 3 AAC 306.700 — 3 AAC 3!6,755; and (B) each applicable public health, fire, safely, and tax rode and ordinance of the state and the local government in which the applicant'a proposed licensed premises are located. (c) A licensee of a marijuana product manufacturing facility, or an employee or agent are marijuana product mmhuf during facility, may not have an ownership interest in or a direct or indirect financial interest in a licensed marijuana testing facility. (E0: 7121/1016, Reg- ister 217) Authority. A9 1738.010 AS 17.58.150 AS 17.98200 AS 17.38.070 AS 1738.190 AS 17.98.000 AS 17.38.121 3 AAC 306.505. Marijuana product manufacturing facility privileges. Except as provided in 3 AAC 306.515, a licensed mari- 1169 Case No. 17-016 Information Packet Page 134 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.510 AL%nKA Aunnnlrm .Onu 3 AAC 306.510 Juana product manufacturing facility, including a marijuana concon- trate manufacturing facility, is authorized to (1) purchase marijuana from a marijuana cultivation facility or from another marijuana product manufacturing facility; (2) extract marijuana concentrate in compliance with 3 AAC 306.555; (3) manufacture, refine, process, cook package, label, and store marijuana products approved under 3 AAC 306.525, including (A) marijuana amcentrate; or (B) any product intended for consumption or use on the body that is comprised of marijuana and other ingredients, including edible products, ointments, salvos, patches, or tinctures; (4) sell, distribute, or deliver marijuana extract or any marijuana product only to a licensed retail marijuana store or to another liconood marijunna product manufacturing facility, (51 provide and transport samples of mnrijunna concentrate or other marijuana product to a licensed marijuana testing facility for testing. (6) provide a sample of marijuana concentrate or a marijuana product approved under 3 AAC 306.525 to a licensed retail mari- juana store for the purpose of negotiating a sale; (7) store inventory in a restricted access area on the licensed premises as provided in 3 AAC 306.535; (8) transport marijuana in compliance with 3 AAC 306.750; (9) conduct in-house testing for the marijuana product manufac- turing facility's own use. (Eff. 7121)2016, Register 217) Authority: AS 17.38.010 AS 17.381150 AS 17.38200 AS 17.38.07U AS 17.38.190 AS 1780.900 AS 17.38.121 3 AAC 308.510. Acts prohibited at marijuana product manu. factoring facility. (a) A licensed marijuana product manufacturing facility, including a licensed marijuana concentrate manufacturing facility, may not (1) sell, deliver, distribute, or transfer marijuana, marijuana concentrate, or a marijuana product directly to a consumer, with or without compensation; (2) sell marijuana, marijuanaconcentrate, ora marijuanaproduct that is not manufactured, packaged, and labeled in compliance with 3 AAC 306.500 — 3 AAC 306.570; (3) allow any person, including a licensee, employee, or agent, to consume marijuana, marijuana concentrate, or a marijuana product on the licensed premises; (4) manufacture or sell any product that (A) is an adulterated food or drink; (B) closely resembles a familiar food or drink item including candy; or 1170 Case No. 17-0181nfonnalion Packet Page 135 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.516 Con>mece, Cuaaf i:am, ANP Ec. Ihv. 3 AAC 306.520 (C) is packaged to look like candy, or in bright colors or with cartoon characters or other pictures or images that would appeal to children. (b) A licensed marijuana product manufacturing facility may not accept any marijuana from a marijuana cultivation facility or another marijuam product manufacturing facility unless (1) all marijuana in the shipment is properly identified with a label generated in the marijuana inventory tracking system of the facility that provided the marijuana; and (2) a valid transport manifest showing the source and destination of the marljuam is attached to the shipment. (c) In this section, 'closely resemble" or 'look like" means the product or its packaging has a shape, mlor, markings, or decorative patterns that ure familiar to the public fiom a widely distributed branded food product, so that the marijuana product could reasonably be mistaken ror that branded product, especially by children. (ER: 7/21{2016, Register 217) AuU mity: AS 1738.010 AS 1738.150 A8 17.38.700 AS 1738.070 AS 17.39.180 AS 17.38.000 AS 1738.121 3 AAC 306.515. Marijuana concentrate manufacturing facil- ity lieenso. A licensed marijuana concentrate manufacturing facility has the privileges set out in 3 AAC 306.505, mcept that it may not (1) manufacture, refine, process, cooly, package, label, or atom any marijuana product other than marijuana concentrate; (2) wdl, distribute, or deliver a marijuana product other than marijuana concentrate to a retail marijuana atom or to another marijuana product manufacturing facility; (3) provide or transport a sample of a marijuana product other than marijuana concentrate to a licensed marijuana testing facility for testing. or (4) pmvide anmples of a product other than marijuana concen. trate to a licensed retail marijuana atom for purposes of negotiating a sale. (EIf. 2/2L2016, Register 217) Auth.r. tr: Aa 1739x10 AS 17.98.1.50 AS 17.N8 O AS 17.38.070 A8 17.08.180 AS 17.98.000 A8 17.09.121 3 AAC 306.520. Application for marijoana product manufac. touring facility license. An applicant for a marijuana product man. ufacturing facility license, including a marijuana concentrate manu- facturing facility license, most file an application on a form the board prescribes, and provide the information required under 3 AAC 306.020 nod (1) a copy of n food safety permit if required under 18 AAC 31.020 1171 Case No. 17-018 Information Packet Page 136 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.525 Aja mAnulmsrmnvx Cons 3 AAC 306.525 from the Department of Environmental Conservation or a munici- pality with authority delegated under AS 17.20.072 and 16 AAC 31.945; (2) a diagram of the proposed licensed promises required in 3 AAC 306.020(b), identifying the once where (A) in-house testing, if any, will occur; and (B) marijuana and any marijuana product, including marjiunna concentrate, will be stored; (3) in the applicant's operating plan required under 3 AAC 306.020(c), a description or (A) the equipment and solvents, gases, chemicals, and other compounds used to create concentrates and the processes to be used; (B) each marjjunna product the applicant intends to procom at this location; the product description must include the color, shape, texture, ingredients and standard production procedure to be used and the additional information required for product approval in 3 AAC 306.525; (C) the packaging to be used for each type of product; (D) sample labels showing how the labeling information re- quired in 3 AAC 306.570 will be act out; and (E) the applicant's plan for disposal of waste. (Ett 2J2L2016, Register 217) nnthmien As 17.38.010 AS 17.38.160 A6 17.38.200 A8 17,3&070 AS 17.38.190 AS 17.99.900 As 17.38.121 l4111ue'• note The fano fur an applira- trate manufacturing facility license is Bon for a maryuatm ptoduet manufactur- available online as provided in the edited ing facility acerae or a marijuana mm=- nob under 3 AAC 306.020. 3 AAC 306525. Approval of concentrates and marijuana products. (a) A marijuana product manufacturing facility, including a marijunna concentrate manufacturing facility, most obtain the board's approval for each product it will manufacture for sale or transfer to another licensed marijuana eatablishment. The board will not approve a product that is prohibited under 3 AAC 306.510(aX4). (b) An applicant for a marijuana product manufacturing facility license may request the board's approval of its intended products with a new license application by including, in its operating plan (1) a photograph, drawing, or graphic representation of the ex- pected appearance of each final product; and (2) the proposed standard production procedure and detailed manufacturing process for each product. (c) Alicensed marijuana product manufacturing facility may at any time submit a now product approval request to the board on a form the board prescribes along with the fee required under 3 AAC 306.300(c). (d) A licensed marpuana product manufacturing facility shall keep 1172 Case No. 17-018 Information Packet Page 137 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.530 COkayaCE, Cosun,Nfir, Arm Ea Dw.. 3 AAC 306.535 its ingredient Oat and potency limits for any food product containing marijuana on file at the marUmma product manufacturing facility's licensed premises. The ingredient list and potency limits for any product manufactured at the facility most be made available for inspection on request by the director, or an employee or agent of the board. (Etf. 2/21/2016, Register 217) Authority: AS 17.88010 AS 17.98.150 AS 17.98100 AS 1718.070 A3 17.86180 AS 17.88.800 AS 17.98.121 3 AAC 306.630. btarifuana handler permit and food safety worker training. (a) A marquana product manufacturing facility, including a marijuana concentrate manufacturing facility, shall onsure that each licensee, employee, or agent who is required or permitted to be physically present on the licensed premises at any time (1) obtains a marijuana handler permit as provided in 8 AAC 306.700 before being present or employed at the marijuana product manufacturing facility's licensed premises; and (2) bas the marijuana handler permit card in the person's imme- diate possession, or a valid copy on file on the premiseri, at all times while on the marijuana product manufacturing facility's licensed premises. (b) A licensee, employee, or agent of a marijuana product manufac- turing facility who handles marUmma at the facility shall obtain a food worker card in compliance with 18 AAC 31.330 and keep that card in that person's possession at all times while on the licensed premieas of the marUuana product manufacturing facility. (Ett 2/212016, Register 217) Authority+ AS 1798.010 AS 1708.160 AS 1738100 AS 17.36070 AS 17.98.190 AS 17.38.800 AS 1738.121 3 AAC 308.635. Restricted access and storage meas. (a) A marijuana product manufacturing facility shall conduct any ertraction or product manufacturing operation in a restricted access area in compliance with 3 AAC 306.710. (b) A mwUuana product manufacturing facility shall have full video surveillance of the licensed promis,w an provided is 3 AAC 306.720, including each area where (1) marijuana concentrate is prorluced; (2) any operation involved in manufacturing any product contain- ing mal'{)U.7M caters; (3) marijuana or a marijuana product is stared or stockpiled; or (4) marijuana waste is destroyed. (c) Any area where marijuana or a marUuann product is stored most be moisture- and tempereuue-controlled and protected from pests and vermin. (Elf. 2/21/2016, Register 217) 1173 Case No. 17-0181nfomiaton Packet Page 138 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F. AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.540 AIMKA Awnq% 217n'I. C')w.. 3 AAC 306.545 Authnritr. AS 1799.010 AS 179UIf0 AS 17.18.200 AS 17.38.070 AS 17.38.190 AS 17.38.900 AS 1798.721 3 AAC 306.540. blariijuana inventory tracking system. (a) A marijuana product manufacturing facility shall use a marijuana in- ventory tracking system as provided in 3 AAC 306.730 to ensure that the marijuana product manufacturing facility identifies and tracks any marijuana or marijuana product from the time the marijuana or marijuana product is received, through (1) use of the marijuana or marijuana product in manufacturing say other marijuana product; (2) sale or transfer of the marijuana or mnrijunnn product origi- nally received, or any marijuana product manufactured at that marijuana product manufacturing facility to another licenced mar- ijuana rvtabliahment; and (3) disposal of any expired or outdated marijuana or marijuana product that is not sold or transferred to another licensed marijuana establishment. (b) When marijuana from a marijuana cultivation facility or a marijuana product from another marijuana product manufacturing facility is delivered or transported to the licensed promises of a marijuana product manufacturing facility, the marijuana product manufacturing facility shall immediately enter tracking information for that marijuana or marijuana product into the marijuana inventory tracking system. A marijuana product manufacturing facility may not accept any marijuana or marijuana product that does not have a valid transport manifest generated from the marijuana inventory tracking system of the licensed marijuana establishment that supplies the marijuana or marijuana product. (c) A marijuana product manufacturing facility shall track any received marijuana or marijuana product to its use in a marijuana product, and shall reconcile each transaction to the marijuana product manufacturing facility's marijuana inventory tracking system at the close of business each day. (d) A marjunnn product manufacturing facility shall account for any variance in the quantity of marijuana or marijuana product the facility received, and the quantity the facility sold, transferred, or disposed of. Mr. 2/21/2016, Register 217) Avthortty. AS /7.98.070 AS 17.38.180 AS 1798.200 AS 17.38.070 AS 17.38.180 AS 17911.9011 AS 17.38.121 3 AAC 306.646. Health and safety standnrds. (a) A marijuana product manufacturing facility shall complywith the health and safety standards set out in 3 AAC 306.735, 16 AAC 31 (Alaska Food Code), 1174 Case No. 17-018 Information Packet Page 139 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.650 CnkNEllce, Coe1wm77, Aim Ec. DEv. 3 AAC 306.650 if applicable, and any local kitchen -related health and safety standards for retail food establishments. (b) In addition to inspection by the director or an employee or agent of the board, a marijuana product manufacturing facility is subject to inspection by local safety officials, including a local fire department, building inspector, or code enforcement officer. (Eff. 212ll2016, Register 217) Authority: AS 17.38.010 AS 17.98.160 AS 1739200 A5 1738070 AS 17.38.190 AS 17.38.800 AS 17.38.121 3 AAC 306.650. Required laboratory testing. (a) A marijuana product manufacturing facility shall provide a sample of each mari- juana product manufactured at the facility to a licensed marijuana testing facility, and may not sell or transport a marijuana product until all laboratnry testing required under 3 AAC 306.695 has been cam- pleted. (b) 1b comply with (a) of this section, a marijuana product manu- factllring facility shall (1) collect a random sample for testing by selecting a product from each production lot in an amount required by the marijuana testing facility, (2) designate an individual responsible for collecting each sample; that individual shall (A) prepare a signed statement showing that each sample has been randomly selected for testing, (D) provide the signed statement to the marijuana testing facility; and (C) maintain a copy as a business record under 3 AAC 306.755; and (3) transport the sample to the marijuana testing facility in compliance with 3 AAC 306.75G. (c) After collecting and transporting u sample for testing, a mari- juana product manufacturing facility shall segregate the entire pro- duction lot from which the testing sample was selected until the marijuana testing facility reports the results from its tests. During this period of segregntion, the marijuana product mnnufneturing facility that provided the sample shall maintnin the production Int in a secure, mol, and dry location to prevent the marijuana product from becoming contaminated or losing its effency. The marijuana product manufac- turing facility may not sell or traaslxyrt any mnrUuana product from the segregated lot until the mar{junna testing facility has completed its testing and analysis and provided those results, in writing, to the marijuana product manufacturing facility that provided the sample. The marijuana product manufacturing facility shall maintain the testing results as part of its business records. (Eff. ?J2112016, Register 217) 1175 Case No. 17-0181nfonnalion Packet Page 140 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.665 ALmaAAinusivrmnva cook 3 AAC 306.555 Antharitr: AS 1716.010 AS 1796.150 AS 17362110 AS 17.66.070 AS 1738.110 AS 1738.600 AS 1736.121 3 AAC 306.555. Production of marijuana concentrate. (a) Be- fore producing marijuana concentrate for sale, a marijuana product manufacturing facility shall develop standard operating procedures, good manufacturing practices, a safety plan, and a training plan for each individual employed in an extraction process. (b) A marijuana product manufacturing facility may create mari- juana concentrates only as follows: (1) water-based marijuana concentrate may be produced by ex- tracting caanabinaids from marijuana by using only water, ice, or dry ice; (2) food -based marijuana concentrate may be produced by extract, ing cannabinoids from marijuana through the use of propylene glycol, glycerin, butter, olive ail, or other typical cooking fats; infused dairy butter, oils, or fats derived from natural sources may be used to prepare infused edible products; infused dairy butter, oils, or fats may not be prepared as stand-alone edible products for sale; (3) solvent -based marijuana concentrate mny be produced using the hydrocarbons N -butane, isobutane, propane, or heptane or other solvents or gases the board approves that exhibit low to minimal potential human health-related toxicity, approved solvents must be of at least 99 percent purity and must be used (A) in a professional grade closed-loop extraction system de- signed to recover the solvents; (B) in an environment with proper ventilation; and (C) with control of all sources of ignition if a flammable atmo- sphere is or may be present (c) A marijuana product manufacturing facility using a professional grade closed-loop gas extraction system shall ensure that (1) each vessel is used in compliance with the manufacturers stated pressure ratings; (2) any carbon dioxide used is of at least 99 percent purity, (3) a poraon using a solvent or gas to extract marijuana concen- trate in the dosed -loop system is fully trained on bow to use the system, has direct access to applicable material safety data sheets, and handles and steres the solvent and gas safely, (4) a licensed engineer has certified that the professional grade dosed -loop system was commercially manufactured, is safe for its intended me, and is built to codes of recognized and generally accepted engineering practices; and (5) any professional grade closed-loop system, and other equip- ment and facilities used in the extraction process are approved for their use by the local fire code official and meet any applicable fire, safety, and building code requirements. (d) A marijuana product manufacturing facility may use heat, screens, presses, steam distillation, ice water, and other methods without employing solvents or gases to create 1176 Case No. 17.018 lnfonna0an Packet Page 141 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.560 COn CE, f:ONMINM, ANI) EC. DevV, 3 AAC 306.565 (1) Idef; (2) hashish; (8) bubble hash; (4) infused dairy butter, oils, or fats derived from natural sources; Of (5) other extracts. (e) Amar(juana product mnnufarturing facility may use food -grade glycerin, ethanol, nad propylene glycol solvents to create extracts. All ethanol must be removed from the extract in a manner to recapture the. solvent and ensure that it is not vented into the atmosphere. (ER. 7121/2016, Register 217) Authmier. All 7738.010 As 1738.1so AS 1738200 AS 1738.070 A5 17.38.190 A.5 1738.800 AS 1738.121 3 AAC 806.660. Potency limits par serving and transaction for edible marijuana products. A marijuana product manufactur- ing facility may not prepare a murijunna product with potency levels exceeding the following, as tested in compliance with 3 AAC 806.645: (1) for a single serving of a marbunna product, gvsmilligmuts of active tetrahydrocannabinol (THQ or Delta 9; (2) in a mingle packaged unit of a marijuana product to be eaten or swallowed, not more than 10 servings or 50 milligrams of active THC or Delta 9; the THC content most be homogenous, or evenly distributed throughout the marijuana -infused product. (Eft. 2121/2016, Register 217) Authority: AS 1738.010 AS 17.88.151i AS 1738.200 AS 17.38.070 A5 1738.190 A9 1738.900 All 1738.121 3 AAC 306.565. Packaging of marijuana products. (a) A amr- yumm product manufacturing facility shall observe the potency limits met out in 3 AAC 306.560 in packaging each product for resale by a retail marijuana steno. (b) A container or packaging for any edible mar�unna product produced by a marijuana product manufacturing facility may not have any printed images, including cartoon characters, that speci0cslly target individuals under 21 years of age. In addition, the packaging most (1) protect the product from contamination and may not impart any toxic or damaging substance to the product; and (2) if the morjivann product contains multiple servings, be de- signed so that the marijuana product itself bas markings or demar- cations clearly delineating each serving of the product; for liquid marijuana products with multiple servings, the packaging must indicate the number and size of individual servings. (c) A lionised marquana product manufacturing facility may trams - 1177 Case No. 17-018 Information Packet Page 142 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.570 Al.v" Amums Lkvvr Cnnx 3 AAC 306.570 fer marijuana products that are not edible marijuana products to another licensed marijuana product manufacturing facility in whole- sale packages not to exceed five pounds. (d) Each packaged marijuana product must be identified by a tracicing label generated by the marijuana product manufacturing facility's marijuana inventory tracking system. (e) A licensed marijuana product manufacturing facility shall pre- pare marijuana products for transfer to another marijuana establish- ment by (1) placing marijuana products within a scaled, tamper -evident shipping container, (2) affixing a label that complies with 3 AAC 306.570(d) to the shipping container, and (3) generating a transport manifest Gam the marijuana product manufacturing facility's marijuana inventory tracking system; the transport manifest must remain with the marijuana products at all times while being transported, and a copy most he given to the licensed marijuana establishment that receives the shipment. (Eff. 7/21NO16, Register 217) Authority: AS 1739.010 AS 17.38,150 AS 17.39200 AS 17.36,070 AS 1739.190 AS 17.39.900 AS 17.39.121 3 AAC306.570. Labeling of marijunnaproducts.(a) Withonch production let of marljuann product said, a marljunna product manu. facturing facility shall disclose in writing the name of the licensed marijuana testing facility that performed any required test and the results of eaph required test. (b) A marijuana product may not be labeled as organic. (c) 7b each package of marijuana product sold to a retail marijuana store for resale to a comsumar, a marijuana product manufacturing facility shall affix a label setting out (1) the name and license number of the marijuana product man- ufacturing facility where the marijuana product was prepared; (2) the production lot number assigned to the product in the package; (3) the net weight of the product in the package, (A) not including weight of packaging; and (B) uninga standard of measure compatible with the marijuana product manufacturing facility's marijuana inventory tracking system; and (4) each of the following statemetlts: (A) "Marijm mn has intoxicating effects and may be habit farm- ing and addictive"; (B) 'Marijuana impairs conwritretion, coordination, and judg- ment. Do not operate a vehicle or machinery under its influence"; (C) "Tbere are health risks associated with consumption of marijuana"; 1178 Case No. 17-0181nformat:on Packet Page 143 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.570 Coluleacg, Comas vary, Ano Ec. Dm 3 AAC 306.570 (D) "For use only by adults twenty-one and older. Keep nut of the reach of children."; (E) "Marijuana should not be used by woman who are pregnant or breast feeding. % (d) Amarijuana product manufacturing facility transporting a mar, ijuana product to a retail marijuana atom shall affix a label to the shipping container showing that a licensed marijuana testing facility has tested each lot of marijuana product in the shipment and giving the test results, including (1) a cannabinoid potency profile expressed as a range of percent- ages that extends from the lowest percentage to highest percentage of concentration for each cannabinoid listed from every teat con- ducted on that production lot from the same marijuana product manufacturing facility within the last three months; (2) a statement listing the results of microbial testing required under 3 AAC 306.645(6X2); (3) a statement listing the results of residual solvent testing required under 3 AAC 306.645(6)(3), if applicable; and (4) a statement listing any contaminants for which the product was tested in addition to contaminants for which 3 AAC 306.645(6) requires testing; any additional tested contaminants include (A) molds, mildew, and filth; (B) herbicides, pesticides, and fungicides; and (C) harmful chemicals. (e) If a marijuana product manufacturing facility ships wholesale mar jjunna product Goin a production lot of marijuana product that has not been tested for each contaminant listed in (dX4) of thus section, the label for that lot must include n statement identifying each contami- nant listed in (dX4) of this section for which that lot has not been tested. (Elf. 2121fi916, Register 217) Authority: AS 17.08.010 AS 17x8.160 AS 17.98.200 AS 17,11070 A9 1739190 AS 17.18.900 AS 17.98.121 Article 6. Marijuana 71asting Facilities. Case No. 17-018 Information Packet Page 144 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 600. AppIkabi ity 610. fitondanf gemligg pramdure mau- 605. Marfjaaon testing fadlity li,rnse t sal 646. lahamony testing of marij m and mtird- marijuana pmduc 610. Marijuana toting faciBtioe' larivi- 650. Chain ufrnstudy lean and prohibitions 656. Marijuana inventory tmddng 3ye- 615. Amtki tl® for marijumm feeling fa- tem Cutty limine baa. VWIA materials mo^A M. Approval d testing Gcility M. Sueplemental m.rU. quality 625. Pmfidaaq "dor program testing M. Smeati6c ditecmr 67, 0. Reporting; wrlficotton 61.5. 7kaliog mAlwdolociea 675. Retonla ouad.n 1179 Case No. 17-018 Information Packet Page 144 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.600 kuv s Aa n .Ni m Ari1'a Coos 3 AAC 306.605 8 AAC 806.600. Applicability. (a) Vie provisions of 3 AAC 306.600 —3 AAC 306.675 apply to a person offering a service testing, analyzing, or certifying potency, moisture content, pesticide or solvent residue, mold, mildew, bacteria, or other contaminants in marjjuana or a marijuana product to another person including a marijuana estab- lishment or a member of the public, whether for compensation or not, as a independent or third -party testing facility. (b) The provision of 3 AAC 806.600 — 3 AAC 306.675 do not apply to a licensed marijuana establishment that controls marijuana testing equipment used solely far its awn in-house testing of its awn cultivated crop, of products produced or manufactured at its own facility, or of retail products placed or offered for sale in its retail marijuana store. (FM 2121P2016, Register 217) Avthurllyk AS 1736.010 AS 17.3x150 As 1736.200 AS 1736.070 AS 17.36.100 AS 17.99.0011 AS 17.36.121 3 AAC 306.605. Marijuana testing facility license required. (a) A person may not offer or provide a marijuana testing service or Last results unless the person has obtained u marijuana testing facility license from the board in cempliance with this chapter, or is an employee or agent acting for a licensed marijuana testing facility. (b) A person seeldng a marijuana testing facility license most (1) submit an application for a marjjuana testing facility license on a farm the board prescrihns, including the information act out under 3 AAC 306.020 and 3 AAC 306.615; and (2) dee mntrate to the board's satisfaction that the applicant (A) will operate in compliance with each applicable provision of 3 AAC 306.600 — 3 AAC 306.675 and 3 AAC 306.700 — 3 AAC 06.755; (B) will operate in compliance with each applicable public health, fire, safety, and too: code and ordinance of the state and the ]Deet government in which the applicant's proposed licensed pram - ism are located; (C) does not hold a marijuana establishment license in this state other than a marijuana testing facility limine, or have a financial interest in common with a person who is a licensee of a marijuana establishment in this state other than a marijuana testing facility licence; and (D) meets the board's standards for approval as set out in 3 AAC 306.620 — 3 AAC 306.625. (c) Alicensee of a marjjuana testing facility, or an employee or agent of a licensed marijunna testing facility, may not have an ownership interest in or a direct or indirect financial interest in another licensed marijuana establishment. (Etf. 2121/2016, Register 217) 1180 Case No. 17-0181nfonnation Packet Page 145 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.610 Colmesra, Cmnnwrr4 Atm Ec. DEv. 3 AAC 306.620 Authority: AS 17.88.010 AS 1758.160 AS 17.36.200 AS 17.38.070 AS 17.88.190 AS 17.88900 AS 1758.121 a AAC 306.610. Marijuana testing facilities: privileges and prohibitions. (a) A licensed marijuana testing facility may have any amount of marijuana and marijuana products on its premises at any given time if the marijuana testing facility's marijuana inventory tracking system and other records document that all marijuana and marijuana products are on the premises only for the testing purposes described in 3 AAC 306.600 — 3 AAC 06.675. (b) A licensed marijuana testing facility may not (1) have a licensee, employee, or agent who holds a type of marijuana establishment license other than a marijuana testing facility license issued under this chapter, (2) sell, deliver, distribute, or transfer marijuana or a marijuana product to a consumer, with or without compensation; or (3) allow a person to consume marijuana or a marijuana product on its licensed promises. (Eff. ?121/2016, Register 217) Authority, As 1758.010 AS 17.38.160 AS 1758300 AS 1758.070 AS 17.38.190 AS 17.78.900 AS 17.38.121 3 AAC 306.616. Application for marijuana testing facility license. An applicant for a new marijuana testing facility license must Ole an application on a form the board prescribes, including (1) the information required under 3 AAC 306.020; and (2) the proposed marijuana testing facility's operating plan, in. cluding, in addition to the information required under 3 AAC 306.020(c), (A) each lest the marijuana testing facility will offer, (B) the marijuana testing facility's standard operating proce- dure for cath test the marijuana testing facility will offer, and (C) the acceptable range of results for each test the marijuana testing facility will offer (Ef. 7121/2016, Register 217) Authority: AS 17.38.010 AS 17.88.160 AS 17.38.200 AS 17.38.070 AS 17.88.100 AS 17.38.9011 AS I7.10L121 3 AAC 306.620. Approval of tenting facility. (a) Ape non seek- ing a marijuana testing facility license most fust obtain the approval of the board by showing competence to perform each test the licensee will offi�r as on independent third -party testing facility. including tests to identify (1) T11C, VICA, CBD, CBDA and CBM potency; (2) hnrmful micrnhials including Escherichia coli (E. Coli) or sohnunul/a; 1161 Case No. 17-0181nfoanalion Packet Page 146 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P g Z REGULAR MEETING: MARCH 22, 2817 3 AAC 306.625 AxasSA Amnm-mA77vg Coin 3 AAC 306.626 (3) residual solvents; (4) poisons or toxins; (6) harmful chemicals; (6) dangerous molds, mildew, or filth; (7) pesticides. (b) In evaluating whether a person has shown competence in testing under this section, the board or the board's contractor may (1) conduct an on-site inspection of the applicant's premises; (2) require the applicant to demonstrate proficiency in testing; and (3) examine compliance with any applicable requirement of 3 AAC 306.630 — 3 AAC 306.676, and 3 AAC 306,700 — 3 AAC aB6.765, including (A) qualifications or personnel; (B) the standard operating procedure for each testing method- ology the marijuana testing facility will use; (C) proficiency testing results; (D) quality control and quality assurance; (E) security; (F) chain of custody, ((1) specimen retention; (FD Spare; a) records; and (.D reporting of results. (c) The board will approve a marijuana testing facility license If, after the board or the board's contractor has examined the qualifica- tions and procedures of the marijuana testing facility license applicant, the (ward finds them generally in compliance with good laboratory practices. Nothing in AS 17.38 or this chapter constitutes a board guarantee that a licensed marijuana testing facility can or will protect the public from all potential hazards or marijuana including micrabials, poisons or toxins, residual solvents, pesticides, or other contaminants. (Eff. 7121,12016, Register 217) Authorlty: AS 17.38.030 AS 17.38.150 AS 17.88.200 AS 17.38.070 AS 17.38.380 AS 17.38.000 AS 17.88.121 3 AAC So6.626. Proficiency testing program. (a) When an ac- credited proficiency testingprogram becomes available in the state, the board may require m applicant far a marijuana testing facility license to participate suaeeatully in a proficiency testing program not earlier than 12 months before receiving a license. The proficiency testing program must require an applicant far a marijuana testing facility license or a participating licensed marijuana testing facility to analyze teat samples using the same procedures with the same number of replicate analyses, standards, testing aoalysta, and equipment that will be used for product testing. Successful participation is the positive 1182 Case No. 17-018 Intorma0on Packet Page 147 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations 1=... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.630 Conut®tcs, Cmnnourr,,um Ec. Dsv. 3 AAC 306.630 identification of 80 percent of the target snalytes that the marijuana testing facility reports, and must include quantitative results when applicable. Any false positive results reported constitute an minutia - factory scare far the proficiency test. (b) Before renewing the license of a marijuana testing facility, the Board may require the facility to participate in a proficiency testing program with documentation of continued performance satisfactory to the board. The license of a marijuana testing facility may be limited, suspended, or revoked if the facility fails to participate and receive a passing scorn in a proficiency testing program. (c) The scientific director employed under 3 AAC 306.630 and each testing analyst of an applicant for a marijuana testing facility license and a licensed marUmum testing facility that participated in a profi- ciency test shall sign a corresponding attestation statement. The scientific director shall review and evaluate each proficiency teat result. (d) An applicant for a marijuana testing facility license, and a licensed marijuana testing facility participating in the praficiency testing program, shall take and document remedial action when the applicant or the facility meets the standards of (a) of thin auction, but scores less than 100 percent in a proficiency test. Te take and document remedial action, the marijuana testing facilitA scientific director shall, at a minimum, review all samples tested and results reported oiler the date of the marijuana lasting facility's last successful profi- ciency test. (E6 2/21=16, Register 217) Autaoritr. AS 17.36.010 AS 17.36.150 AS 17.38200 AS 1736.070 AS 1738.166 AS 17.36.600 AS 17.38,121 3 AAC 306.090. Scientific director. (a) A marijuana testing fa- cility shall employ a scientific director who must be responsible for (1) overseeing and directing the scientific methods of the labora- tory within the marijuana testing facility; (2) ensuring that the laboratory achieves and maintains quality standards of practice; and (3) supervising all staff of the laboratory. (b) The scientific director of a marijuana testing facility must have (1) a doctorate degree in chemical or biological sciences from an accredited college or university and have at least two years of punt -degree laboratory experience; (2) a master's degree in chemical or biological sciences from an accredited coUega or university and have at least four years of pmt degree laboratory experience; and (3) a bachelor's degree in chemical or biological sciences from an accredited college or university and have at least six yams of post -degree laboratory experience. (ER. 2/21/2016, Register 217) 1183 Case No. 17-01B Information Packet Page 148 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 6 AAC 366.635 ALassA AlnuNlsTa517ve Cone 3 AAC $06.635 Aetharltyt AS 17.38.010 AS 17.88.150 AS 17.38200 AS 17.38.070 AS 17.88.190 AS 17.88.900 AS 17.38.121 3 AAC 306.685. Testing methodologies. (a) An applicant for a marijuana testing facility licensee and a licensed marijuana testing facility shall (1) use as guidelines or references for testing methodologies (A) the American Herbal Pharmarnpoein's Cannabis Inllares- cence: Standards ofldentity, Analysis, and Quality Central, Frei- sian 2014, adopted by reference; and (R) the United Nations office on Drugs and Crime's Recom- mended Methods for the Identification and Analysis of Cannabis and Columbia Products: Manuel for Use by National Drug Anal- ysis Laboratories, dated 2006 and adopted by reference; and (2) notify the board of any alternative scientifically valid testing methodology the marijuana testing facility proposes to use for any Laboratory test it conducts; the board may require third -party validation army monograph, peer-mviewed scientific journal article, or analytical method the marijuana testing facilitypro(wses to follow to ensure the methodology produces comparable and accurate re - suite. (b) An applicant for a marijuana testing facility licenae and the holder of a marijumm testing facility license shall observe goad laboratory practices. (c) The board or the board's contractor may inspect the practices, procedures, and programs adoptimi, followed, and maintained by the applicant or the licensed marijuana testing facility and may examine all records of the applicant or the licensed marijuana testing facility that am related to the inspection. The board may require am applicant or a licensed marijuana testing facility to have m independent third party inspect and monitor laboratory operations to assess testing competency and the marijuana testing facility's compliance with its quality program. The board may require random validation of a marijuana testing facility's execution of each testing methodology the facility uses. The marUmma testing facility shall pay all costs of validation. (Eff. 2/21/2016, Register 217) Authorityt AS 17.88.010 AS 17.38.160 AS 17.88.200 AS 17.38.70 AS 17.38.190 AS 17.38.900 AS 17.38.121 Edheea now Cannabis In/larestumv: Standards ofldentih. Analysis, and Qual. ity Control. Retixion 2014, pubhsbM by the Amerism Herbal Pharma npoeia, ad. opted by.1be ee in 3AAC 308.836, may be obtained 8mm the American Ilerbd Pluemampocie, P.O. Eos 66809, Scalls Valley, California 95067, or at the Intomet add. htt,1A...herhal-ahp.arW The United Nation Otani on Drina and Crime's Recumenseld Md6sls for the Ldentifienfion and Analysis of Cannahis and Contehs Products: Manuel for Ur by National Drug Analysis Lahmolmirs. 1184 Case No. 17-018 Information Packet Page 149 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.640 Coatuxscr, CounoNm; nxu Ec. Day. 3 AAC 306.645 adoptal by reference1n 3 AAC 306.635, h www.unodcarg(dommente/arlenfi9dST- available at the Intemet addreu hUpaJI NAR40-Ebook.pdf 3 AAC 306.640. Standard operating procedure manual. (a) An applicant for a marijuana testing facility license and a licensed marijuana testing facility shall have a written manual of standard operating procedures, with detailed instructions explaining how to perform each testing method the applicant or marijuana testing facility uses and minimum standards for each test. The written manual of standard operating procedures must be available to each employee of the marijuana testing facility at all times. The written manual of standard operating procedures must cover at least (1) sample preparation for each matrix that will be tested; (2) reagent, solution, and reference standard preparation; (3) instrument sotup, if applicable; (4) ntandandization of volumetric reagent solutions, if applicable; (5) data acquisition; (6) calculation of results; (7) identification criteria; (6) quality control frequency; (9) quality central acceptance criteria; and (10) corrective action protocol. (b) 71ie scientific director of a marijuana testing facility shall approve, sign, and date each standard operating procedure, and each revision to any standard operating procedure. (Eff. 212ll2016, Register 217) Authority. AS 17.98.010 AS 17.39.150 AS 17.36.201 AS 17.99070 AS 17.39.190 AS 17.389110 AS 17.39.121 3 AAC 306.645. Laboratory testing of marijuana and marl. juanaproducts. (a) A marijuana testing facility shall use the general body or required laboratory tests as act out in this srction for maxi. juana plant material, an ealract or concentrate of marijuana, and an edible marijuana product. Required tests may include potency analy. sis, moisture content, foreign matter inspection, microbial screening, pesticide, other chemical residue, and metals screening, and residual solvents levels. A marijuana testing facility shall establish a schedule of fees and sample size required fur each test it offers. (b) The tests required for each marijuana type or marijuana prod- uct, are as follows: (1) potency testing is required on marijuana bud and Hower, marijuana concentrate, and a marijuana product, as follows: (A) the required cannabinoid potency test most at least deter. mine the concentration of THC, THCA, CBD, CBDA and CBN cannabinoids; it marijuana testing facility may test and report results for any additional rannabinoid if the test is conducted in mmplinnce with a validated method; 1167, Case No. 17-018 Information Packet Page 150 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.645 Alwsm Aamvnsrshrt%. Cum: 3 AAC 306.645 (B) a marijuana testing facility shall report potency test results as follows: (i) for a potency test on marijuana and marijuana concen- trate, the marijuana testing facility shall list for each required cannabinoid a single percentage concentration that represents an average of all samples within the test batch; alternatively, the sum of THC and T11CA may be reported as total TAC; the sum of CBD and CBDA may be reported as into] CBD; (ii) for a potency tost on a marijuana product, whether conducted on each individual production lot or using process validation, the marijuana testing facility shall list for web cannabinoid the total number of milligrams contained withing s single retail marijuana product unit for sale; (iii) far testing whether the TI IC content is homogenous, the marijuana testing facility shall report the VIC content of each single serving in a multi -unit package; the reported content must be within 20 percent of the manufacturer's target; for example, in a 25 milligrams total THC package with five servings, each serving must contain between four and six milligrams of THC; (C) the marijuana testing facility shall determine on edible marijuana product to have failed potency testing if (i) an individually packaged edible retail marijuana product contained within a test lot is determined to have more than 50 milligrams of THC within it; or (u) the THC content at an edible marijuana product is not homogenous; (2) microbial testing for the listed substances on the listed mari- juana products is required as follows: Substance AcceptnMa Linke Per Gram Product to be 74ated Shiga -ouch producing less than I mlaay framing unit Sower, retail mer5vava F c&Iw ffl cdi (CPU/,) prdocts: wane and (SPEC) - bacteria lees than I minor farndng unit food -head merenlratn Salmonella ape cies - hxcleria (CFU/ ) kvs than I colony forming unit bonen. AspmriU. famy;aaa, Aapergat" jlauw. (CFU/9) Aspergillus niger, - Fnn:w (3) testing for the listed residual solvents and metals on the listed marijuana products is required as follows: Substance Acceptable W mato Per Gram Product to he 7hated buten. Ives than ON parts per million wivent-based macen. (PPM) traw heptm. Iess than baa parte per tniWou (PPM) bonen. less thin .025 parts per million (PPM) 11116 Case No. 17-018 Information Packet Page 151 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.650 Cosmsacs, Cosnn m, A m Er,. Diw. 3 AAC 306.655 BoMtanes Acceptable Limlla Per Crum Product b he Tested (Efi: 2/2ll2016, Register 217) Autharit, As 17.38.010 AS 17.38.160 AS 17.'39.200 AS 17.38.070 AS 17.38.190 AS 17.88.900 AS 17.38.121 na 3 AAC 806.650. Chain of custody. A marijuatesting facility !hall establish an adequate chain of custody and sample requirement instructions that include (1) issuing instructions for the minimum sample requirements and storage requirements; (2) documenting the condition of the external package and integ- rity seals utilized to provent contamination of or tampering with the sample; (3) documenting the condition and amount of sample provided at the time the sample is received at the marijuana testing facility', (4) documenting each person handling the original samples, aliquots, and extracts; (5) documenting any transfer of samples, aliquots_ and extracts to another mnrijuana testing facility for additional testing or at tlu+ request of the marijuana cultivation facility or marquana product manufacturing facility that provided the testing sample; (6) maintaining u current list of authorized persons and restrict- ing entry to the marijuana testing facility to those authorized persons; (7) securing the marijuana testing facility during non -working hours; (8) securing short-term and long-term storage areas when not in use; (9) using a secured area to log in and aliquot samples; (30) ensuring samples ate stored appropriately; and (11) documenting the disposal of samples, aliquots, and extracts. 6: (E212ll2016, Register 217) Aethodtr: AS 17.MM10 AS 17.38.150 AS 17.88200 AS 17.39.070 AS 17.38.190 AS 17.38.900 AS 1728.121 m 3 AAC 306.665. Marijuana inventory tracking syste. A mar ijuana testing facility shall uses marijuana inventory tracking system as provided in 3 AAC 306.730 to ensure all marijuana transported to 1187 Case No. 17-018 Information Packet Page 152 of 215 toluene leas titan 1 parts per no on (PPM)hexane less than 10 parts per million(PPM71Na1 Vi.. (meta- len the I porta per miiliao Vire., para-xylmea, (PPM) Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... ortharylerral Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.660 Aimm AnAnKL, Aim. Cone 3 AAC 306.66.1 the marijuana testing facility's premises is identified and tracked from the time the marijuana arrives at the marijuana testing facility to the use and destruction of the marqueun in testing, or to disposal in compliance with 3 AAC 306.740. (Eff. 2(2ll2016, Register 217) Authority AS 17.98.010 AS 17.38.150 AS 17.96.200 AS 17.38.070 AS 17.38190 AS 17.39900 AS 17.98.121 8 AAC 806.660. Failed materials; retests. (a) If a sample tested by a marijuana testing facility does not pass the required tests based on the standards set out in 3 AAC 306.645, the marijuana establish- ment that provided the sample shall (1) dispose of the entire harvest batch or production lot from which the sample was taken; and (2) document the disposal of the sample using the marijuana establishmenVe marijuana inventory tracking system. (b) If a sample of mnri usna falls a required leek any marijuana plant trim, leaf, and other usable material from the same plants automatically fail the required test. The board may approve a request to allow a batch of mori uana that fails a required teat to be used to make a carbon dioxide- or solvent -based extract. Atter processing, the carton dioxide- or solvant-based extract must pass all required tests. (c) If a marijuana cultivation facility or a marijuana product a =- ufacturing facility petitions, for a retest of marijuana or a marivana product that failed a required Leet, the board may authorize a retest to validate the test results. The marijuana cultivation facility or a marijuana product manufacturing facility shall pay all costs ofa retest (Eff. 2.121=16, Register 217) Authoritn AS 17.38.010 AS 17.98.150 AS 17.88200 AS 17.9&070 AS 175e.190 AS 17.38.900 AS 1758.121 8 AAC 306.666. Supplemental marijuana quality testing. (a) The board or director may at any time determine that the interests of the public require randam supplemental testing of marijuana or a marijuana product. When the board or director requires random supplemental testing, the board will or director shall direct the marijuana cultivation facility that produced the marijuana, or the marijuana product manufacturing facility that manufactured the product, to submit a specified sample. batch, or packaged product to a designated marijuana testing facility. The material most be packaged in a manner that ensures the marijuana testing facility will be able to confirm that it has received and is testing the correct supplemental sample. (b) When a marijuana testing facility receives a sample for random supplemental teating under this section, the marijuana testing facility shall 1188 Case No. 17-0181ntonnation Packet Page 153 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.670 Co�, Coamusav, nem Ea Day. 3 AAC 306.670 (1) perform any required laboratory test the board or director requests; and (2) report its results to (A) the board or director, and (B) the facility that provided the sample. (c) A marijuana testing facility that conducts laboratory testing under this section shall bill all costs directly to the marijuana cultiva- tion facility or the marijuana product manufacturing facility that provided the samples for testing. (ER. 2/212016, Register 21 7) Authorlt}. AS 1739.010 AS 17.39.150 AS 1739.200 AS 17.39.070 AS 17.39.190 AS 17.99.000 AS 17.39.121 8 AAC 306.670. Reporting, verification. (a) A marijuana testing facility shall report the result of each required laboratory test directly into its marijuana inventory tracking system not later than 24 hours after the test is completed. A marijuana testing facility shall provide the final report (1) in a timely manner to the marijuana establishment that submitted the sample; and (2) to the director not later than 72 hours after the marijuana testing facility determines that results of tested samples exceed allowable levels. (b) A marijuana testing facility shall establish procedures to ensure that reported results are accurate, precise, and scientifically valid. 7b ensure reported results are valid, a marijuana testing facility shelf include in a final report (1) the name and location of the marijuana testing facility; (2) the unique sample identifier assigned by the marijunna test- ing facility, (3) the marijuana establishment or other person that submitted the testing sample; (4) the sample identifierprnvided by the marijuana establishment or other person that submitted the testing sample (6) the date the marijuana testing facility received the sample; (6) the chain of custody identifier, (7) the date of the report; - (8) the lypu of marijuana m marijuana product tested; (9) the lest results; (10) the units or measure; and (11) any other information or qualifiers needed for interpretation of the test method and the results being reported, including my identified and documented discrepancy. (c) A marijuana testing facility may amend a final report for clerical purposes except that test results may not be amended. IEff, 2121/2016, Register 2171 1189 Case No. 17-015 Information Packet Page 154 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.675 ArAssAAmum:mterlv9 C,.:ir 3 AAC 306.700 Authority, AS 77.39.010 AS 37.39.150 AS 17.38200 AS 17.39.070 AS 17.38.190 AS 17.39.900 AS 17.39.121 3 AAC 306.675. Records retention. A marijuana testing facility shall maintain the businos9 records required under 3 AAC 306.755 for the period of time sp�rified in that section. The books and records required under 3 AAC 306.765(aH 1) include (1) test results; (2) quality control and quality assurance records; (3) standard operating procedures; (4) chain -of -custody records; (5) proficiency testing records; (6) analytical data to include printouts generated by the instru. mentation; (7) accession numbers; (8) specimen type; (9) raw data of calibration standards and curves, controls, and subject results; (10) final and amended report; (11) acceptable reference range parameters; (12) the identity of the analyst; and (13) the date of the analysis. (ER. 7121/2016, Register 217) Autharityr AS 1728.010 AS 17.98.150 AS 17.38200 A9 17.38.070 AS 17.39.190 AS 17.39.900 A9 17.38.121 Article_ 7. Operating Requirements for All Marijuana Establishments. Secuon eeation 700. Marijuana handler permit = 730. Marijuana inventory tracking 9 x- 705. 11 pramiae; alteration 710. Hestricted acnes areas tem 735. Health and safety standards 715. Security alarm systema and lock 740. Waste dispmel standards 745. Stan&rdized,ralos 720. Ydeo eurveiaanm 750. Trawportation 725. tuspeetion of lirevsed premien 755. Business records 3 AAC 308.700. Marijuana handler permit. (a) A marijuana establishment and each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures, test, or transports marijuana or a marijuana product, or who checks the identification of a consumer or visitor, must obtain a marijuana handler permit from the board before being licensed or beginning employment at a mari- juana establishment (b) To obtain a marijuana handler permit, a person must complete a marijuana handler permit education course approved by the board, pass a written test demonstrating an understanding of the course material, and obtain a certificate of course completion from the course 1190 Case No. 17-0181nfonnation Packet Page 155 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.705 L'U.NAdJa:n, COXWJNM. &No Ec. Ds¢ 3 AAC 306.705 provider. The topics that an approved marijuana handler permit education course covers most include (1) AS 17.37, AS 17.38, and this chapter, (2) the effocts of conaumption of marijuana and marijuana prod. ucts; (3) how to identify a person impaired by consumption of mari- juana; (4) how to determine valid identification; (5) how to intervene to prevent unlawful marijuana consumption; and (6) the penalty for an unlawful act by a licensee, an employee, or an agent of a marijuana establishment. (c) 7b obtain a marijuana handler permit, a person who has com- pleted the marijuana handler permit education course described under (b) of this section shall present the mum completion certificate to the director. The director shall issue a marijuana handler permit card valid for three years from the date of issue. A person may renew a mrd issued under this section by passing a written test demonstrating an understanding of the course subjects. (d) A limusee, employee, or agent of a marijuana establishment shall keep the marijuana handler permit card described in (c) of this section in that person's immediate possession or a valid copy on flue on the premises at all times when no the licensed premises of the marijunna eatabUshment. (e) The board will review an approved marijuana handler permit education course at least once every three years, and may rescind approval of the mum if the board finds that the education mum contents are insufficient or inaccurate. (Eli. 7/21/2016, Register 217) Authority: AS 17.3&010 AS 17.38.150 AS 17.81.200 AS 17.28.070 AS 17.18.100 AS 17.38.800 AS 17.08.121 3 AAC 306.705. Licensed premise; alteration. (a) A marijuana establishment license will be issued for specific licensed premises. Specific licensed premises must constitute a place clearly designated in a license application and described by a line drawing submitted with the license application. The licensed premises most (1) have adequate spam for its approved operations, including growing, manufacturing, processing, packaging, or storing mari- juana or marijuana products; and (2) be located and constructed to facilitate cleaning, mninlenaace, and proper operation. (b) A marijuana establishment's limnw must be posted in a conspic- uous place within the licensed premises. (c) A holder of a marijuana establishment license may not alter the functional floor plan or reduce or expand the area of the licensed promises without first obtaining the director's written approval. A 1191 Case No. 17-0181nformalion Packet Page 156 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2. b. PUBLIC HEARING ITEM 7-D P g Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.710 A"4"Auunna kATNr. Cook 3 AAC 306.715 marijuana establishment license holder seeking to change or modify the licensed premises most submit a request for approval of the change on a form prescribed by the board, along with (1) the fee prescribed in 3 AAC 306.100; (2) a drawing showing the proposed change; (3) evidence that the proposed change conforms to any local restrictions; and (41 evidence that the licensee has obtained any applicable local building permit. (EIT. 212L2016, Register 217) Authority: AS 17.88.010 AS 17.38.160 AS 17.39.200 AS 17.38.070 AS 17.95.190 AS 17.39.000 AS 17.39.121 8 AAC 306.710. Restricted access areas. (a) A marijuana estab- lishment shall restrict access to any part of the licensed premises where mmjjuaon or a marijuana product is grown, processed, tested, stored, or stocked. (b) Except as provided in 3 AAC 306.325 for a retail marijuana store, each entrance to a restricted access area meet be marked by a sign that says'Restricted acmes area. Visitors must be escorted."A marijuana establishment shell limit the number of visitors to not more then five visitors for each licensee, employee, or agent of the licensee who is fictively engaged in supervising those visitors. (c) In a restricted access area, a licensee, employee, or agent of the marijuana establishment shall wear a current identi0rntion badge bearing the person's phntograph. A person under 21 years of age may not enter a restricted access area. Any visitor to the restricted access area must (1) show identification as required in 3 AAC 306.350 to prove that person is 21 years of age or alder, (2) obtain a visitor identification badge before entering the re- stricted access area; and (3) be escorted at all times by a licensee, employee, or agent of the marijuana establishment. (ER. 2I2MO16, Register 217) Authorltr. AS 17.38.010 AS 17.38.150 AS 1798200 AS 17.38.070 AS 1735.190 AS 1798.900 AS 17.39.121 3 AAC 308.715. Security alarm systems and lock standards. (a) Each licensee, employee, or agent of a marijuana establishment shall display an identification badge issued by the marijuana estab- lishment at all times when on the marijuana establishmenfa licensed Premises. (b) The licensed premises of a marijuana establishment must have (1) exterior lighting to facilitate surveillance; 1192 Case No. 17-0181nfonnation Packet Page 157 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.720 CoNasecE, Cru lmsr7v, um Ea. DEV. 3 AAC 306.720 (2) a security alarm system on all exterior doors and windows; and (3) continuous video monitoring as provided in 3 AAC 306.720. (c) A marijuana establishment shall have policies and procedures that (1) are designed to prevent diversion of marijuana or marijuana product; (2) prevent loitering; (3) describe the use of say additional security device, such as a motion detector, pressure switch, and duress, panic, or hold-up alarm to enhance security of licensed premises; and (4) describe the actions to be taken by a licensee, employee, or agent of the marijuana establishment when any automatic or electronic notification system alerts a local law enforcement agency orax, unauthorized breach of security. (d) A marijuana establishment shall use ecommercial grade, non- residential door locks on all exterior entry pointe to the licensed premises. (EM 2121/2016, Register 217) Aat6udt17 AS 17.30-010 AS 17.38.150 AS 17.38.200 AS 17.31.070 A.q 1738.190 AS 17.38900 AS 17.11.121 3 AAC 300.720. Video surveillance. (a) A marijuana establish - went shall install and maintain a video surveillance and camera recnrding system 0-e provided in this section. The video system must cover (1) each restricted access area and each entrance to a restricted acnes aren within the licensed promises; (2) each entrance to the exterior or the licensed promises; and (3) each point-o&sale area. (b) At a marijuana establishment, a required video camera must he placed in a way that produms a clear view adequate to identify any individual inside the licensed prondsea, or within 20 feet of each entrance to the licensed premises. Bath the interior and the extorior of each entrance to the facility must he recorded by a lidera camera. (c) Any ane where marijuana is grmvn, cured, or manufactured, or where maronana waste is destroyed, meet have a comers. placementin the mom facing the primary entry door, and in adequate fixed pa5i- tions, at a height that will provide a clear, unobstructed view of the regular activity without a eight blockage from lighting hoods, fixtures, or other equipment, in order to allow for the clear and certain identification of any person and activity in the area at all times. (d) Surveillance recording equipment and videosurveillance records must be housed in a locked and secure area or in a lock box, cabinet, closet or other secure area that is accessible only to a marijuana establishment licensee or authorized employee, and to law Pn IbrM mant penumnel including a pence officer or an agent of the board. A 1193 Case No. 17-0181nforma8on Packet Page 158 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.725 AiAssv Amnsi mInTivs Cum: 3 AAC 306.730 marijuana establishment may use an offsite monitoring service and offsito storage of widen surveillance records if security requirements at the offkite facility are at least as strict as mnsito u,curity requirements as described in this section. (e) Each surveillance recording must be preserved for a minimum of 40 days, in a fairest that stn be easily accessed for viewing. All recorded images most clearly and accurately display the time and date, and most be archived in a format that does not permit alteration of the recorded image, so that the images can readily be authenticated. After 40 days, a marijuana establishment may erase video recordings, unless the licensee knows or should knmv of any pending criminal, civil, or administrative investigation for which the video recording may contain relevant information. (ELL 2121/2016, Register 217) Autharityr. AS 17.38.010 AS 1738.131 AS 17.38.200 AS 17.38,070 AS 1738.150 AS 17.38.800 AS 1738.121 AS 1738.190 3 AAC 306.725. inspection of licensed promises. (a) A mari- juana establishment or an applicant for a marijuana establishment license under this chapter shall, upon request, slake the licensed premises or the proposed licensed premises, including any place far storage, available for inspection by the director, an employee or agent of the board, or sur officer charged with the enforcement of this chapter. The board or the director may also request a local bre protection agency or any ether state agency with health and safety responsibili- ties to inspect licensed premises or proposed licensed premises. (b) Inspection under this section includes inspection ofthe preurn.es, facilities, qualifications of personnel, methods of operation, business and financial records, marijuana inventory tracking system, policies, and purposes of any marijuana establishment and of any applicant for a marijusna establishment license. (Eff. 212112016, Register 217) Authoritr. AS 1738010 AS 1736.191 AS 1738.200 AS 17.39.070 AS 1738.150 AS 1738800 AS 1738.121 AS 17.38190 3 AAC 306.730. Marijuana inventory tracking system. (a) A marijuana establishment shall use a marijuana inventory tracking system capable of sharing information with the system the board implements to ensure all marijuana cultivated and sold in the state, and each marijuana product processed and sold in the state, is identified and tracked front the time the marijuana is propagated from seed or cutting, through transfer to another licensed marijuana estab. lishment, or use in manufacturing a marijuana product, to a completed sale of marijuana or a marijuana product, or disposal of the harvest batch of marijuana or pruductiun lot of marijuana product. (b) Marijuana delivered to a marijuana establishment must he 1104 Case No. 17-018 Information Packet Page 159 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P S. Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.735 Coltassce, Coltu .-n—, mar Ec. Dn. 3 AAC 306.735 weighed on a scale registered in compliance with 3 AAC 306.745. (Eff. 2121/2016, Register 217) Autharity. AS 17.311,010 AS 17.311.150 AS 1788100 A9 17.98.070 A3 17.38.190 AS 17.98.9110 AS 1738.121 3 AAC 306.735. Health and safety standards. (a) A marijuana establishment is subject to inspection by the local fire department, building inspector, or code enforcement officer to confirm that health or safety mamma are not present (b) A marijuana establishment shall take all reasonable measures and precautions to ensure that (1) any person who has an Illness, an open sore or infected wound, or other potential source of infection does not come in contact with marijuana or a marijuana product while the illness or source of infection persists; (2) the licensed premises have (A) adequate and readily accessible toilet facilities that are maintained in goad repair and sanitary condition; and (B) convenient handwashing facilities with mooing water at a suitable temperature; the marijuana establisbment shall require employees to wash or sanitize them hands, and shall pmvide effective hand -cleaning, sanitizing preparations, and drying de- vices; (3) each pemon working in direct contact with marijuana or a marijuana product conforms to good hygienic practices while on duty, including (A) maintaining adequate personal cleanliness; and (Bi washing hands thoroughly in an adequate hand -washing area before starting work, after using toilet facilities, and at any other time when the persona hands may have become soiled or contaminated; (4) litter, waste, and rubbish are properly removed; the waste disposal equipment must be maintained and adequate to (A) avoid contaminating any area where marijuana or any marijuana product is stared, displayed, or sold; and (B) prevent causing odors or attracting pests; (6) floors, walls, and ceilings are constructed to allow adequate cleaning, and are kept clean and in ImDd repair, (6) adequate lighting is installed to any area where marijuana or a marijuana product is stared, displayed, or sold, and where any equipment ar utensil is cleaned; (7) screening or other protection adequately protects against the entry of pests; (8) each building, fixture, and other facility is maintained in sanitary condition; (9) each toxic cleaning compound, sanitizing agent, and pesticide chemical is identified and stored in a safe manner to protect against 1195 Case No. 17-018 Information Packet Page 160 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P s Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.740 AfA5KA AaMIm:TG7nT. Cmiv 3 AAC 306.740 contamination of marijuana or a marijunna product and in compli- once with any applicable local, state, or federal law, (30) adequate sanitation principles are used in receiving, inspect- ing, transporting, and storing marijuana or a marijuana product, and (ll) marijuana or a marijuana product is held in a manner that prevents the growth or bacteria, microbes, or other undesirable microorganisms. (c) A marijuana establishment shall ensure that any marijuana or marijuana product that has two stared beyond its usable life, or was stored improperly, is nut salvaged and returned to the marketplace. In this subsection, °stored improperly" means being exposed to extremes in temperature, humidity, smoke, fumes, pressure, or radiation due to a natural disaster, fire, accident, or equipment failure. (d) If a marijuana establishment dues not have reliable information about the age or storage conditions of marijuana or a marijuana product in its pnssemion, the marijuana establishment may salvage the marijuana only if (1) a licensed marijuana testing facility determines from quality assurance testing that (.be marijuana or marijuana product meets all applicable standards of moisture, pntency, and contaminants; (2) inspection of the promisee whom a disaatar or accident oc- curred shows that the marijusnu or marijuana product stored them was not adversely affected by the disaster or accident; and (3) the marijuana establishment maintains a record of the sal- vaged marijuana or marijuana product in its marijuana inventory tracking system, including the name, lot number, and final disposi- tion. (Eff. 2t2ll2016, Water 217) Authority. AS 17.78.010 AS 17.98.100 AS 17.99.200 AS 1738.070 AS 17.98.190 AS 17.98.900 AS 17.98.121 3 AAC 306.740. Waste disposal. (a) A marijuana establishment shall store, manage, and dispose of any solid or liquid waste, including wastewater generated during marijuana cultivation production, pro- cessing, testing, or retail sales, in compliance with applicable federal, state, and local statutes, ordinances, regulations, and other law (b) Marijuana waste must be rendered unusable for any purpose for which it was grown or produced before it leaves a marijuana estab- lishment. Marijuana waste includes (3) marijuana plant waste, including roots, stalks, leaves, and stems that have not been processed with solvent; (2) solid marijuana sample plant waste in the possession of a marijuana testing facility-, and (3) other waste as determined by the board. (c) A marijuana establishment shall (1) in the marijuana inventory tracking system required under 1196 Case No. 17-0181nfarmation Packet Page 161 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.745 Coxnsnce, Covmumn; Ahm Ee.. Dov. 3 AAC 306.745 3 AAC 306.730, give the board notice not Inter than three days before making the waste unusable and disposing of it; however, the director may authorize immediate disposal on an emergency basis; and (2) keep a record of the final destination of marijuana waste made unusable. (d) Marijuana plant baste must be made unusable by grinding the marijuana plant waste and mixing it with at least an equal amount of other compostable or non-compostable materials. A marijuana estab- lishment may use another method to make marijuana waste unusable if the board approves the method in advance. Material that may be mixed with the marijuana waste includes (1) campostable materials including food waste, yard waste, veg- etable based grease or oils, or other wastes approved by the board when the mixed material can be used as compost feedstock or in another organic waste method such as an anaerobic digester with approval of any applicable local government entity; or (2) non-compavtable materials including paper waste, cardboard waste, plastic waste, oil, or other wastes approved by the board when the mixed material may he delivered to a permitted solid waste facility, incinerator, or other facility with approval of any applicable local tmvernment entity. (e) If marijuana or a marijuana product is found by, or surrendered to, a law enforcement officer including a peace officer or an airport security officer, the officer may dispose of the marijuana or marijuana product as provided in this section or by any method that is allowed under any applicable local ordinance. (Etf. 2/21/2016, Register 217) Authurftr. AS 1738.0I0 AS 1738.150 AS 17.98.200 AS 1738.070 AS 17.38.190 AS 17.98:900 AS 17.88.121 3 AAC 306.745. Standardized scales. Amarijuann establiahment shall use registered scales in compliance with AS 45.75.080 (Weights and Measures Act). A marijuana establishment shall (1) maintain registration and inspection reports of scales regis- tered under AS 45.75.080 and 17 AAC 90.920 — 17 AAC 90.935; and - (2) upon request by the board or the director, provide a copyofthe registration and inspection reports of the registered scales to the board or the director for review. (Etf. 2/21/2016, Register 217) Authodty: AS 1738.010 AS 17.38.150 AS 37.88.200 AS 1738.070 AS 17.36.190 AS 1738.800 AS 17.98.121 1197 Case No. 17-018 Information Packet Page 162 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P g Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.750 Atwsm Ammosra+nvs Cons 3 AAC 306.750 • 3 AAC 306.750. 'hansportation. (a) A marijuana establishment shall transport marijuana na fellows. (1) a marijuana cultivation facility may transport marijuana to another marijuana cultivation facility, a marijuana product maau- facWring facility; a marijuana testing facility, or a retail mnrUuana atom; (2) a marijuana product manufacturing facility may transport a marijuana product to another marijuana product manufacturing facility, a marijuana testing facility, or a marijuana retail atom; (3) a marijuana testing facility may transport marijuana or a marijuana product to the facility from which it received the mari- juana or nnother marijuana testing facility; (4) a retail marijuana atom may transport marijuana or a mari- • junna product to another retail marijuana atom. (b) A marijuana establishment from which a shipment ofmarijunna or mnrijunna product originates is responsible for preparing, packng- ing, and securing the marijuana or marijuana product during ship. ment, for recording the transfer in the marijuana inventory tracking system, and for preparing the transport manifest. An individual transporting marijuana in compliance with this section shall have a marijuana handler permit required under 3 AAC 306.700. (c) When marijuana or a marijuana product is transported, the marijuana establishment. that originates the transport shall use the marijuana inventory tracking system to record the type, amount and weight of marijunna or marijuana product being transported, the name of the transporter, the time of departure and expected delivery, and the make, model, and license plate number of the transporting vehicle. A complete printed transport manifest an a form prescribed by the board most he kept with the marijuana or marijuana product at all limes. Id) During transport. the marijuana or marijuana product must be in a sealed package or container and in a locked, safe, and secure storage compartment in the vehicle trnnsporting the marijuana or marijuana product. 77re scaled package may not be opened during transport. A vehicle transporting marijuana or a marijuana product must travel directly from the shipping marijuana establishment to the receiving marijuana establishment, and may not make unnecessary amps in between except to deliver or pick up marijuana or a marijuana • product at another licensed marijuana establishment. (a) When a marijuana establishment receives marijuana or a mar- ijuana product transported in compliance with this section, the recip- ient of the shipment shall use the marijuana inventory tracking system to report the type, amount, and weight of marijuana or marijuana product received. The recipient shall refuse to accept any shipment of marijuana or marijuana product that is not accompanied by the transport manifest. (D A marijuana establishment shall keep records of all marijuana or marijuana products shipped from or received at that marijuana 1196 • Case No. 17-818 Infarmation Packet Page 163 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.755 Commies, Cmcom;m,, A1rn Er. Dsv. 3 AAC 306.755 estab8shment as, required under 3 AAC 306.755. (Ef. .. 7121/2016, Register 217) Authority: AS 17.38.0(0 AS 1786.150 AS 17.38200 AS 17.88.070 AS 17.38.190 AS 17.38.000 AS 17.38.121 a AAC S06.755. Bualness records. (a) A marijuana establish- ment shall maintain in a format that is readily understood by a reasonably prudent business person (1) all books and records necessary to fully account for each busineas transaction conducted under its license for the current year and three preceding calendar years; records for the last six months must be maintained on the marijuana establishment's licensed promises; older records may be archived an or off prom -roes; (2) a current employee list setting out the full name and mari- juana handler permit number of each licensee, employee, and agent who works at the marijuana establishment; (3) the business contact inrormation for vendors that maintain vidon surveillance systems and security alarm systems for the licensed premises; (4) records related to advertising and marketing, (5) a current diagram of the licensed promises including each restricted access, area; (6) a log recording the name, and date and time of entry of each visitor permitted in a restricted access area; (7) all records normally retained for tax purposes; (8) accurate and comprehensive inventory tracking records that account for all marUimna inventory activity from seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a consumer, to another marijuana establishment, or de- stroyed; and (9) transportation records for marijuana and marijuana products as required under 3 AAC 306.750(f). (b) A marijuana establishment shall provide any record required to be kept on the licensed premises to an employee of the board upon request Any record kept off premises must be provided to the board's employees not later than three business days atter a request for the record. (c) A marijuana establishr ent shall exercise due diligence in pre- serving and maintaining all required records. Lose of records mid data, including electronically maintained records, does not excuse a viola- tion of this section. The board may determine a failure to retain records required under this section to be a license violation affecting public safety. (Eff. 2121=16, RcTister 217) 1199 Case No. 17-018 1nfa mation Packet Page 164 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-13 P 8, Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.8110 Ai 4vm Aue mi:m:. rvs Com: 3 AAC 306.801 Amli.ettl. AS 1738.010 AS l7:01.171 AS 17.39.200 AS 17.38.070 AS 17.38.150 AS 17.88.000 AS 17.38.121 AS 1728.190 Article S. Enforcement, Civil Penalties. Section Section 800. Impectlou and invests {{;.Minn 830. Seimre of marijunm co, coni.... 805. Report or notice of violation p,vdua 010. BmIMaion or revocation of license 8:58. Hearing 015. Suspcmiun or revocation Lased un 010. Civil so. act ofemployee am. Pmredure for action oa Ifo -case sea 845, Al,,.,] "pmensec m maxation 850. Surrender or deatrmdon of Rime 82.5. Sumnmry ampension W pmtact pub lic hrolth, safety, or wel5ae. 3 AAC 3011.800. Inspection and investigation. (a) The directag an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, may (1) inspect the licensed premises or a marUunna establishment, including any marijuana and marijuana product on the promisee, equipment used in cultivating, processing, testing, or storing mari- juana, the marijuana establishmenCa marijuana inventory tracking system, business retards, and computers, at any reasonable time and in a reasonable manner, (2) issue a report or notice as provided in 3 AAC 306.805; and (3) as authorized under AS 17.38.131, exercise peace officer pow- ers and take any other action the director determines is necessary. (b) Amarijuana establiAhment, and tiny licensee, employee, or agent in charge shall cooperate with the director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity, to enforce the, laws related to marijuana, including (1) permitting entry upon and inspection of the licensed premises; and (2) providing access to business records at reasonable times when requested by the director, an enforcement agent, an employee or the board, or a peace ot5cer. (E6. 2121/2016, Register 217) Autharityt AS 17.38.010 AS 17.38.131 AS 1788.200 AS 17.38.070 AS 17.38.160 AS 17.38.000 AS 17.38.121 AS 17.38.190 3 AAC 306.805. Report or notice of violation. (a) The director, an enforcement agent, an employee of the board, or a peace o1Bcer acting in an official capacity, may issue an inspection report, en advisory report, or a notice of violation before taking action to suspend or revoke a marijuana establishment license. (b) An inspection report documents an investigator's inspection of licensed premises. An inspection report must be prepared on a form the board prescribes and include information prescribed tmderAS 17.38 or this chapter or that the board requires. 1200 Case No. 17-018 Information Packet Page 165 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations IF.. AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-1) P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.810 CobnlxaCa, Caunusrrr, Ata Fc. Dov. 3 AAC 306.810 (c) The director, an enforcement agent, an employee of the board, or a peace officer acting in an official rapacity may issue an advisory notice when an incident occurs or a defect is noted that could result in a violation of a statute, regulation, or municipal ordinance. An advi- sory notice may result from an inspection report, but is not a basis for administrative action unless the incident or defect continues or is not corrected. (d) The director, an enforcement agent, an employee of the board, or a peace officer acting in an official capacity may issue a notice of violation if an inspection report or other credible information sh nvs a marijuana establishment is in violation of AS 17.38, this chapter, or other law relating to marijuann. The notice of violation most be delivered to the marijuana establishment at its licensed promises, and to the board. The notice most describe any violation, and cite the applicable statute, regulation, or order of the board. A marijuana establishment that receives a notice of violation may respond to the notice orally or in writing, and may, not later than 10 days atter receiving the notice, request an opportunity to appear before the board. A notice of violation may be the basis of a proceeding to suspend or revoke a marijuana establishments license as provided under 3 AAC 306.810. (Eff. 2121/2016, Register 217) Avtaurlty: AS 1738.010 AS 17.38.131 AS 17.98200 AS 1718.070 AS 1719.150 AS 17.38.000 AS 17/8.121 AS 1718.100 3 AAC 306.810. Suspension or revocation of license. (a) The hoard will suspend or revoke a marijuana twtablishment license iesned under this chapter if any licensee is convicted of a felony or of a crime listed in 3 AAC 306.010(dN2) or (3), or if the board becomes aware that a licensee did not disclose a previous felony conviction or a conviction are crime listed in 3 AAC 306.010(dX2) or (3). (h) The board may suspend or revoke a license issued under this chapter, refuse to renew a license, or impose a civil fine, if the board finds thnt n licensee for any marijuana establishment (1) misrepresented a material fact on an application for a mari- juana establishment license, or nn affidavit, report, or signed state - meat under AS 17.38 nr this rhnpter; or (2) is following any practice, or procedure that is contrary to the best interests of the public, including (A) using any process not approved by the board for extracting or manufacturing marijuana concentrate, or products; or (B) scllingordistributingnny marijuana concentrate or product that has not been approved by the board; (3) failed, within a reasonable time after receiving a notice of violation from the director, to correct any defect that is the subject of the notice of violation of (A) A3 17.36 or this chapter, 1201 Casa No. 17-0181nformation Packet Page 166 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.815 A am A1nlwnTal7ns C, sue 3 AAC 306.815 (B) a rendition or restriction imposed by the board; or (C) other applicable law; (4) knowingly allowed an employee or agent to violate AS 17.38, this chapter, or a condition or restriction imposed by the board; (5) failed to comply with any applicable public health, fire, safety, or tax statute, ordinance, regulation, or other law in the state; or (6) used the licensed premises for an illegal purpose including gambling, possoian or use or narcotics other than marijuana, prostitution, or sex trafficking. (c) A local government may notify the director if it obtains evidence that a marUunna establishment has violalgd a provision of AS 17.38, this chapter, or a condition or restriction the board has imposed on the marquana establishment. Unless the board finds that the local gov- ernmenCs notice is arbitrary, capricious, and unreasonable, the direc- tor shall prepare the notice and supporting evidence as an accusation against the marijuana Pstablishment under AS 44.62.360, and conduct promedinldi to msolve the matter as described under 3 AAC 306.820. (Efi: 2121/2016, Register 217) Authorltr. AS 1738.010 A8 1738.131 h9 17:Ia200 A3 173&070 AS 17.88.150 AS 17.88.000 A9 17.38.121 AS 17.38.190 3 AAC 306.815. Suspension or revocation based on sot of employee. If, in a proceeding to suspend or revoke a marpuena establishment license under 3 AAC 306.810 and 3 AAC 306.820, evidence shows that an employee or agent of a licensed marijuana establishment was responsible for an act that would justify suspension or revocation or the marijuana establishment's limase ifcommitted by a licenses, the board may find that licensee knowingly allowed the act if (1) the ficansee (A) was physically present when the violation occurred; (B) knew or should have known the violation was occurring; and (C) did not take action to atop the violation; (2) the licensee failed to adequately supervise the agent or am- plQyee; (3) the licensee failed to adequately train the agent or employee in the requirements ofAS 17.38 and this chapter minting to marQuana; or (4) the licensee was reckless or careless in hiring the agent or employee. (Eff. 2121/2016, Register 217) 1202 Case No. 17-018 Information Packet Page 167 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-0 P g Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.820 Coauaa:s, Cmrut; n, Aso Ec Firv. 3 AAC 306.830 Authority: AS 17.38.010 AS 17.38.131 AS 17.38200 AS 17.38.070 AS 1798.150 AS 17.38.900 AS 17.38.121 AS 17.08.190 3 AAC 306.820. Procedure for action on license suspension or revocation. A proceeding to suspend or revoke a license must be initiated by service of an accusation on the marijuana establishment in compliance with AS 44.62.360 and 44.62.380, and conducted in com- pliance with AS 44.62.330 — 44.62.630. The accusation must be served at the address of the licensed premises, or at the address of the licensee who is responsible far management and compliance with laws as listed in the marijuana establishment license application in compliance with 3 AAC 306.020(b)(6). The marijuana establishment is entitled to a hearing as provided under AS 44.62.390. (Ef. 212112016, Register 217) Authority: AS 17.38.010 AS 1798.131 AS 27.98200 AS 17.38.070 AS 1798.150 AS 1799.800 AS 17.38.121 A.9 17.38.190 3 AAC 306.826. Summary suspension to protect public health, safety, or welfare. (a) if the director finds that a person holding a marijuana establishment license has acted and appears to be continuing to act in a way that constitutes an immediate threat to the public health, safety or welfare, the director may issue an order immediately suspending the licensa of that person, and ordering an immediate atop to the activity that constitutes the threat to the public health, solely or welfare. (b) Vlam the director issues a summary suspension under this section, the director shall immediately give the marijuana establish- ment subject to the summary suspensinn order notice of the reasons for the summary suspension, and of the time and place for an expedited hearing before the board. Unloas the marijuana est.nblishment subject to the summary suspension order requests a delay, the hearing will be held not later than five days niter the director gives notice of the reasons for the summary susponvion and the scheduled hearing. (Eff. 212 112 01 6, Register 217) Authority. AS 17.38.010 AS 27.38.131 AS 17.382110 AS 17.88.1170 AS 17.38.150 AS 17.38.900 AS 17.38.121 AS 17.38.190 3 AAC 306.830. Seizure of marijuana or marijuana product. (a) The director, an enforcement agent, act employee of the board, or a peace officer acting in an nlrreial capacity, may seize marijuana or any marijuana product from a licensed or previously licensed marijuana establishment if the marijuana establishment has (1) any marijuana or marijuana product not properly logged into the marijuana establishment's marijuana inventory tracking sys. tem; 1203 Case No. 17-0181nfor na0on Packet Page 168 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.835 Ar.Sm AiunmsmmmT Cons 3 AAC 306.935 (2) my adulterated marijuana food or drink product prohibited under 3 AAC 306.510(a)(4); (3) any marijuana or marijuana product that is not properly packaged and labeled as provided in (A) 3 AAC 3n6A70 and 3 AAC 306.476; or (B) 3 AAC 306.565 and 3 AAC 300.670; or (4) not renewed its licemse as required under 3 AAC 306.035. (b) If the director, an eafarrement agent, an employee of the board, or a peace offimr acting in an official capacity seizes marijuana or a marijuana product under this section, the director shall update the marijuana inventory central tracking system to reflect the seizure and ensure that the seized hours we atom] in a reasonable manner. The directnr shall immediately give We marijuana establishment from which the marijuana or marijuana product was acized notice of the reasons for the seizure and the time and place are hearing befaro the board. Unless the marijuana establishment from which the marijuana or marijuana product was seized requests a delay, the hearing will be held not later than 10 days after the director gives entice of the reasons for seizure and the scheduled hearing. If the seizure occurs in cennec- tian with a summary suspension under 3 AAC 306.825, the hearing will be combined with a hearing on the summery suspension. (c) if the marijuana establishment from which the marijuana or marijuana product was seized does not request or participate in a hearing under this section, or if after a bearing the board fords that seizure of the marijuana or marijuana product was justified, the marijuana or marijuana product will be destroyed by burning, crush- ing, or mixing with other material to make the marijuana or marijuana product unusable u provided in 3 AAC 306.740. (d) If a seizure under this section is of marijuana plants in place in a licensed standard or limited marijuana cultivation facility, the seizure order Easy direct the marijuana cultivation facility to continue care of the plants until the hearing, but prohibit any transfer, sale, or other commercial activity related to the plants. (ER. 2/2M016, Regis- ter 217) Authorityr AS 17.98.010 AS 17M.131 AS 17.09200 AS 1738070 AS 1738.150 AS 17.98.900 AS 17.98121 AS 17.98.190 3 AAC 308.835. Hearing. (a) Except as provided in 3 AAC 306.825 or 3 AAC 306.830, a person aggrieved by an action of the director, an enf rreement agent, or an employee of the board may request a hearing in compliance with AS 44.62.390 by filing a notice of defense not later than 15 days atter receiving a written accusation. Failure to file a notice of defense as provided in this section constitutes a waiver of the right to a hearing. (b) When an aggrieved person requests a bearing under this section, the board may request the office of administrative hearings to conduct 1204 Case No. 17-0181nformatlon Packet Page 169 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P & Z REGULAR MEETING: MARCH 22, 2017 3 AAC 300.840 Colalsace, Colnolmn, Asia Ec. Dm 3 AAC 306.850 the hearing in compliance with due process, AS 44.62.330 — 44.62.630 (Administrative Procedure Act), and 2 AAC 64.100 — 2 AAC 64.990, as applicable. (ER 2121/2016, Register 217) Authority: AS 17.38.010 AS 17.38.131 AS 17.38.200 AS 17.38.070 AS 17.38.150 AS 17.38900 AIS 17.38.121 AS 17.38.100 3 AAC 308.840. Civil tinea (a) The board may, in addition to any other penalties imposed under this chapter, impose n civil fine on a marijuana establishment, licensee, or person that the board deter- mines has violated a prevision of AS 17.38 or this chapter. (b) In a proceeding under 3 AAC 306.810 — 3 AAC 306.830, the board may impose a civil fine, not to exceed the greater of (1) an amount that is three times the monetary gain realized by the marijuana establishment, licensee, or person as a result of the violation, ab determined by the board; (2) $10,000 for the feet violation; (3) $30,000 for the second violation; or (4) $50,000 for the third or subsequent violation. (ER. 2/21/2016. Register 217) - Authority AS 17.38.010 AS 17.38.131 AS 17.38200 AS 1778.070 AS 1778.150 AS 1778.900 AS 17.38.121 AS 17.3&190 3 AAC 306.845. Appeal.(a) An aggrieved party miy appeal to the board regarding any action of the director, an enforcement agent, or an employee of the board charged with enforcing AS 17.38 or this chapter, including suspending or revoking a license, seizing marijuana or a marijuana product, or imposing a civil fine. (b) A person aggrieved by a final decision of the board suspending or revoking a license under this chapter or imposing a civil fine may appeal to the superior court under AS 44.62.560. (Efr. 2/21/2016, Register 217) Authority As IT -38.010 AS 1778.131 AS 17.38.200 AS 17.38.070 AS 17.38.150 AS 17.38.900 AS 17.38.121 - AS 17.38.190 3 AAC 306.850. Surrender or destruction of license. A license issued under this chapter must be surrendered to the director, an enforcement agent, or an employee of the board on demand if the director or board so orders. A license issued under this chapter must be surrendered not later than 10 days after the marijuana establishment loses or vacates the licensed premises. If a license is destroyed, the mnrpuana establishment shall promptly notify the board (EH. 2121/2016, Register 217) 1205 Case No. 17-018 Information Packet Page 170 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #21 PUBLIC HEARING ITEM 7-13 P It Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.905 Awx,r AnlmnslnA7tvs Cnnt'. 3 AAC 306.920 Aathoritr. AS 17.88A10 A8 1759.191 AS 1758.200 AS 17.38.070 AS 17.98.160 AS 17.88900 AS 17.38.121 AS 17.88.190 Article 9. General Provialona. section Sec"." 905. Pub8c.m 6 91A. Deathof limmee 910. Refmal to sell marflunna 990. Definitions 916. P.rncise of authority 3 AAC 306.906. Public records. Mor�unnu establishment appli- cations are public records. The board may, at the request of any applicant, designate materials confidential if they (1) contain proprietary information including trade secreta; or (2) are required to be kept confidential by any federal or slate law. (Eff. 2121/2016, Register 217) Authority: AS 1738.010 AS 17.38.150 AS 17.98.900 AS 17.88.070 AS 17 7113110 AS 40.25.110 AS 17.88.121 8 AAC 906.910. Refusal to sell mnrijuana. Nothing in this chapter prohibits a licensee from refusing to sell mariju:ma or mnrl- juanu products to any person unless that refusal is a violation of AS 18.80.210. (Eff. 2/2WO16, Register 217) Anthoritp AS 17711.010 AS 17.38.160 AS 17-NL200 AS 17.08.070 AS 17.98.190 A.5 17.88900 AS 17.38.121 9 AAC 906.915. Exercise of authority. Until a marjjcaoa estab- lishment surrenders its license to the board, and so long as business is conducted under the license on the licensed premises, the person holding the license, whether an individual, a partnership, a limited liability company, a corporation, or a local government, is responaible and liable for the conduct of the business. Any individual exercising actual authority over the conduct of business on the licensed premises must be the holder of the marjjumm establishment license, or an agent or employee of that person unless the board bas approved a transfer of the license to a different person. (Eff. 2/21/2016, Register 217) Aotburitrr. AS 1758.010 AS 1738.150 AS 17.38200 AS 1758.070 AS 17.9&190 AS 1738.900 AS 17.38.121 8 AAC 308.920. Death of licensee. (a) If an, individual who is the sale licensee of a marijuana establishment dies, the marijuana estab- lishment shall cease operation. A personal representative appointed by the superior court for the estate of the deceased licensee may submit to the director a written request to reopen the business, along with a copy 1206 Case No. 17-0181nfannation Packet Page 171 of 215 '\mending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.990 Cowsaaee, Couaumly, ew Ec. Dev. 3 AAC 306.990 of the court oiler appointing the personal representative. If the licensed marijuana establishment is in good standing, and the per- sonal representative is not n person prohibited from holding a mari. juana establishment license under AS 17.38.200(1), the director shall grant permission to the personal representative to operate the busi- ness on the licensed premises subject to (b) of this section. In this section, a marijuana establishment is in good standing if the mari- juana establishment (1) has a valid current license; (2) bas paid all fees due under this chapter and all local taus due; and (3) has no unresolved suspension or revocation proceedings against it. (b) A personal representative authorized to operate a marijuana establishment under (a) of this section most submit an application for e transfer of ownership to another person in compliance with 3 AAC 306.045 not later than 90 days after obtaining the dirvetor'a approval to operate. The )ward may extend the time allowed in this section for another 90 days if the personal representative requests the additional time. (c) This section does not authorize the transfer of a marijuana establishment license unless the board approves the personal repre- sentatives application for transfer of license to another person. (Eff. 7121/2016, Register 217) Authority, AS 17.36010 AS 17.38.160 AS 17.38.200 AS 1776070 AS 17. SAW AS 17.38.900 AS 17,33.121 3 AAC 308.990. Dctlnitions. (a) In AS 17.38 and this chapter, (1) "affiliate" means a person that directly or indirectly through one or more intermediaries controls, or is controlled by, or is under common control with, a partnership, limited liability company, or corporation subject to this chapter; (2) "assisting" does not include (A) using, displaying, purchasing, or transporting marijuana in excess of the amount allowed in AS 17.38.020; (B) -possrssing, growing, Processing, or transporting marijuana plants in ezrr:iv of the number allowed in AS 17.38.020; (C) lo -owing marijuana plants for another persnn in a place other than (i) that other person's primary residence; or (u) a garage, shed, or similar place under the other person's control; (3) "delivering" (A) means handing to a person who purchases the product on licensed promises only; 1207 Case No. 17-0181nfonnation Packet Page 172 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.990 Ai,�s"Aomwmr-.Tn2 Own 3 AAC 306.990 (B) does not include transferring or trnnspurting to a consumer off licensed premises; (4) "flowering means a marijuana plant that has visible crystals, buds, or flowers, or for which the exposure to light is scheduled with the intent to produce crystals, buds, or flowers; (5) "immature"means a marijuana plant with no visible crystals, buds, or flowers, and in which the exposure to light is scheduled with the intent to prevent formation of crystals, buds, or flowers; (6) "in public" (A) means in a place in which the public or a substantial group of people has access; (B) except as provided in (C) of this paragraph, includes high- ways, transportation facilities, schools, places of amusement or business, parks, playgrounds, prisons, and hallways, lobbies and other portions of apartment houses and hotels not constituting rooms or apartments designed far actual residence; (C) does not include an area on the premises of a licensed retail marijuana store designated for onsite consumption under 3 AAC 306.305; (7) "personal cultivation" does not include (A) using, displaying, purchasing, or transporting marijuana in excess of the amount allowed in AS 17.38.020; (B) possessing, growing, processing, or transporting marijuana plants in excess of the number allowed in AS 17.38.020; (C) growing marijuana plants for another person in a place other than (i) that other persons primary residence; or GO a garage, shed, or similar place under the other person's control; (8) "possess" means having physical possession or control over property; (9) "registration" means licensure or license; (10) "transport" or "transfer" means to deliver between licensed marijuana establishments as provided in 3 AAC 306.750. (b) In this chapter, unless the context requires otherwise, (1) "adulterated food or drink product" (A) means a product that is intended to be consumed orally and that existed without marijuana in a form ready for consumption before marijuana was added by any process; (B) does not include raw ingredients that are combined with marijuana in a manufacturing process; (2) 'agent" (A) means a representative who is authorized to act for a licensee, the board, or the director, (B) includes a contractor or subcontractor, (3) "batch" or "harvest batch" means a specifically identified quantity of plant trim, leaf, and other usable product from mari- 1208 Case No. 17-018 Information Packet Page 173 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.990 Cmcarscs, Comm. - . um Ec. Dev. 3 AAC 306.990 jusna planta that are uniform in strain, cultivated in one place and under the acme conditions, using the same medium and agricultural chemicals including pesticides and fungicides, and harvested at the same time; (4) "bud and Sower" means the hairy, sticky, or crystal -covered parts of mature female marijuana plants generally harvested for their high potency content; (5) "business day" means a day other than a Saturday, Sunday, or a state holiday, (6) "CBD" means cannabidiol; (7) "CBDA means CBD Acid; (8) "CBN" means cannabinol; (9) "clones" or "cuttings" means email starter plants (A) shorter than eight inches tall; and (S) used to propagate marijuana plants; (10) "compensation" (A) means money, bartered objects or services, or anything else of value, whether given as payment or voluntarily as a donation, when accepted by a person who gives, distributes, or delivers marijuana to another, (B) includes a ewer charge, a delivery charge, and a packaging charge; (11) 'concentrate" or 'marijuana concentrate" means resin, oil, wax, or any other substance produced by extracting or isolating cannabinoids, THC, or other components from a marijuana plant or from materials harvested from a marijuana plant; (12) "consumer" (A) means an individual who purchases and uses marijuana or a marijuana product; end (B) does not include a marijuana establishment that resells marijuana or incorporates marijuana into a manufactured prod- uct (13) "contaminant" means one or more of the following: (A) harmful microbiais, including Escherichia coli (E. coli). or Salmonella species; (B) residual solvents; (C) poisons or toxins; (D) harmful chemicals, including pesticides; (E) dangerous molds, mildew, or filth; (14) "controlling interest" means ownership or control of (A) 50 percent or more of the ownership interest or voting shares of a corporation; or (B) less than 50 percent ifs person and family members jointly exert actual control as demonstrated by (i) making decisions for the corporation without independent participation of other owners; (ii) exercising day -today control over the corporations of - lairs: 1209 Case No. 17-018 Information Packet Page 174 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.990 Alwse MmINISTRATwe. Coni 3 AAC 306.990 (iii) disregarding formal legal requirements; (iv) using corporation finds for personal expenses or invest- ments, or intermingling corporation finances with pemannl finances- or (v) taking other actions that indicate the corporation is a mere instrumentality or the individual; (15) °distribute" means spread out or pass nut among several or many members of a group; (16) "edible" and "edible marijuana product" (A) means a marijuana product that is intended to be consumed orally, whether as food or drink - (B) does not include an adulterated food or drink product; (17) "extraction" or'marijuana extraction" means production of marijuana concentrate by any water-based, food -based, or solvent, based method; (18) "homogenous"means a component or quality, such as THC, is spread evenly throughout the product, or can be found in equal amounts in each part of a multi -serving unit; (19) "individual" means a natural person; (20) "in-house te3ting" (A) means laboratory testing" provided in 3 AAC 306.635 and that does not meet the requirements of 3 AAC 306.645; (B) does not include consumption of any marijuana or mari- juana product on the licensed premises; (21) 'licensed" (A) means holding a current and valid license that the board has issued under this chapter, (B) dges not include holding a formerly valid license that has expired or that the board has suspended or revoked; (22) "licensee"mean each individual identified in 3 AAC 306.020 who most be listed in an application for a marijuana establishment license under this chapter, (23) 'licensed premises" means any or all designated portion of a building or structure, or rooms or enclosures in the building or structure, at the specific address for which a marijuana establish- ment license is issued, and used, controlled, or operated by the marijuana establishment to carry out the business for which it is licensed; (24) 'lot"or "production lot"mean a group ormarijuana products that were prepared at the same time from the same batch of marijuana, using the same recipe or process; (25) "marijuana" has the meaning given in AS 17.38.900; (26) "marijuana cultivation facility" has the meaning given in AS 17.38.900; (27) "marijuana infused product' (A) mean a product that contains marijuana or marijuana concentrate and is intended for human use; 1210 Case No. 17-0181nfomation Packet Page 175 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 8 Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.990 CommkxcE, Cco m rv, wvo Ec. Dv. 3 AAC 306.990 (B) does not include bud and flower marijuana; (28) "marquana plant" means a living organism of the genus Cannabis capable of absorbing water and inorganic aubstances through its roots, and synthesizing nutrients in its leaves by photo- synthesis; (29) 'marijuana product" has the meaning given in AS 17.38.900; (30) "marijuana product manufacturing fscililyr has the meaning given in AS 17.38.900; (31) 'peace officer" has the meaning given in AS 01.10.060; (32) 'person bas the meaning given in AS 01.10,060; (33) "process"or"processing"means harvesting, curing, drying, or trimming of a marijuana plant; (34) "propagate" means to cause a marijuana plant to grow by planting clones or cuttings, and nurturing them into viable plants up to eight inches in height; (35) "recreation or youth center" means a building, structure, athletic playing field, or playground (A) run or created by a local government or the state to provide athletic, recreational, or leisure activities for persona under 21 years of age; or (B) operated by a public or private organization licensed to provide shelter, training, or guidance for persons under 21 years of age; (36) "retail marijuana atom" has the meaning given in AS 77.38.900; (37) "square feet under cultivation" (A) means an area of the licensed premises of a standard or limited marijuana cultivation facility that is used for growing marijuana, measured from the perimeter of the floor or growing space for marijuana; (B) does not include a processing or storage area, an equipment storage area, an office, a hallway, or another area, if that area is not used for growing marijuana; (38) 'MC' means tetrahydrocannabinol, the main psychoactive substance found in marijuana; (39) -MCA means THC Acid; (40) "transaction" means one single occurrence in which mari- juana or a marijuana product not exceeding the limits set out in 3 AAC 306.355 is passed from a licensed marijuana establishment to another person. (EM 7124/2015, Register 213; am 221/2016, Register 217) 1211 Case No. 17-0181nfoanati3n Packet Page 176 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.b. PUBLIC HEARING ITEM 7-D P 3, Z REGULAR MEETING: MARCH 22, 2017 3 AAC 306.990 Auq Amwvtl wv%T. Cnng 3 AAC 306.990 Autharity: AS 17.28.010 AS 17.28.121 AS 17.39.200 AS 1738.040 AS 17.28.160 AS 17.88.990 AS 1738.070 Hdltorva notc7be definition of4l pub• lieget out is 3 AAC 306.990 was arigirmR adopted as an tawnpa ey regulation on: the denignetion 3 AAC 304.99861, gad with on effective date or February 24, 2015. The emergency regelati® appears a s3AAC304.890!61is Reg, ter213 (April 20151 and Register 214 (July WIS). When the emergency r.,dation appeared as o pnmlanenl vegetation In Register 216 (00 miser 20161, the regulation, attorney in accordance with AS 44.62125(6)(6) re -- aignrd the pavalaon to 3 AAC 306.990. 71e history of 3 AAC 306.990 rt8ects the effective date of the Alcoholic Beverage Con Ind Hoard's rmer,ancy adoption tribe definition oVi. po6lie Case No. 17-0181nfonnation Packet Page 177 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGENDA ITEM #2.b. Introduced by: CDD Director Drafted by: CDD Director Introduced on: 02/02/2017 Public Hearing Date: 02/16/2017 Adopted on: 02/16/2017 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2016-17A AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH ORDINANCE NO. FY2016-17 TO EXTEND THE SUNSET DATE RELATING TO THE CURRENT REGULATION OF MARIJUANA BUSINESSES FROM FEBRUARY 28, 2017 TO APRIL 30, 2017 WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has provided for the legalization of various marijuana -related activities on a specific timeline; and WHEREAS, AS 17.38.110, "local control" in subsection (a) provides: "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 voter initiative"; and WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS 17.38.110(a) so as to prohibit to the broadest extent possible the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stares within its borders; and WHEREAS, the Kodiak Island Borough formed a Marijuana Task Force through the adoption of Kodiak Island Borough Resolution No. FY2016-31; and WHEREAS, the Marijuana Task Force developed recommendations for regulating marijuana businesses in the Kodiak Island Borough; and WHEREAS, the Kodiak Island Borough is seeking input from municipal and tribal governments within the Borough; and WHEREAS, the incorporation of comments from municipal and tribal governments and additional review by the Planning and Zoning Commission and Borough Assembly will extend beyond the original sunset date of February 28, 2017; and WHEREAS, anew sunset date is needed for KIBC 5.02; and WHEREAS, language codified by Ordinance FY2016-17 as KIBC 5.02 will remain unchanged. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Amending KIBC Chapters 3, 5, And 17 To Include Regulations IF.. Ordinance No. FY2016-17A Page 1 of 2 Version 1 Page 178 of 215 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 AGENDA ITEM #2.b. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Section 1: This ordinance is of permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: The sunset date of February 28, 2017 established by Ordinance No. FY2016-17 is hereby amended to April 30, 2017. Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SIXTEENTH DAY OF FEBRUARY, 2017. KODIAK ISLAND BOROUGH ATTEST: -pianL� —Am� Daniel A. Rohrer, Mayor Nova M. Javier, MMC, Yark VOTES: Ayes: Crow, LeDoux, Smiley, Symmons, VanDaele Noes: Skinner. Townsend Kodiak Island Borough, Alaska Ordinance No. FY2016-17A Deletion – Red, Strikeout Page 2 of 2 Insertion – Bold, Blue, Underlined Version 1 Page 179 of 215 Amending KIBC Chapters 3, 5, And 17 To Include Regulations F... AGENDA ITEM #2.c. KODIAK ISLAND BOROUGH STAFF REPORT MARCH 30, 2017 r,. ASSEMBLY WORK SESSION SUBJECT: Proposed RFP For Project Design And Management Services To Prepare Mining Plans And Obtain Regulatory Approvals For Aggregate Mines In The Salonie Creek Drainage And Chiniak Salvage Timber Harvest Tract. ORIGINATOR: Duane Dvorak RECOMMENDATION: Direct the manager to pursue an RFP for project design and management services to prepare mining plans and obtain regulatory approvals for aggregate mines in the Salonie Creek drainage and Chiniak salvage timber harvest tract. DISCUSSION: The assembly recently denied two requests for land disposal in the Salonie Creek drainage which would have resulted in direct negotiations with a single site operator if approved. Under those proposals, the proposed site operators would have been responsible for much of the development and mine planning process. The assembly has directed staff to investigate a process to create a municipal aggregate mine where the borough would sell material to any contractor on a Material Sale basis. Material Sales in accordance with KIBC 18.60, do not confer on the buyer any exclusive control over the site. Material buyers would not be permitted to leave equipment on site or to place structures except only when they are actively mining the site. Staff has researched prior efforts to evaluate and develop the Salonie Creek site. A "road map" of sorts was provided by the previous mine engineering consultant who provided a cost estimate greater than the Manager's authority to provide services similar to those proposed here. For reasons not clear in the public record, the borough did not pursue further actions back in 2011 when the project was considered. Given the pending transition to a new resource management officer, and the need to solicit competitive services for all the parts and pieces of the process, staff recommends using the services of a subject matter firm or expert who can provide a single point of contact for all the work that needs to be done and can see the project through from beginning to end. Staff believes that this approach will ensure the quickest time frame for bringing the aggregate site in Salonie Creek online. Staff has directed A-1 Timber to leave two of the 9 borrow pits in Chiniak open after the conclusion of salvage timber harvest operations. The two pits have a substantial supply of stockpiled material and the borough will be inheriting 7 miles of new road to maintain. Community Development Department staff advises that to make these pits available to the public or to commercial users, will require a CUP for each site. The CUP process will require benching plans and reclamation plans just like Salonie Creek. For this reason, staff is proposing to add these pits to the scope of work for a potential mine project manager to assist with mine planning and permitting. Kodiak Island Borough Page 180 of 215 Proposed RFP For Project Design And Management Services To P... ALTERNATIVES: KODIAK ISLAND BOROUGH STAFF REPORT MARCH 30, 2017 ASSEMBLY WORK SESSION AGENDA ITEM #2.c. FISCAL IMPACT: Estimated that services will be in the range of $100,000 to $125,000. There should be sufficient fund balance in the Land Sale Fund for this project. OTHER INFORMATION: Kodiak Island Borough Proposed RFP For Project Design And Management Services To P... Page 181 of 215 AGENDA ITEM #2.c. REQUEST FOR PROPOSAL SALONIE CREEK AGGREGATE MINING DEVELOPMENT PLAN, PERMITTING AND PROJECT MANAGEMENT PURPOSE AND INTENT A. As a second class borough, the Kodiak Island Borough (KIB) has received municipal entitlement land from the State of Alaska. This land is intended to provide a resource to new political subdivisions in lieu of direct state funding. Among other things, this land can be used to help sustain local government, provide a land base for the community, provide development sites for essential services, provide opportunities for public recreation and to provide rock, timber and water resources that can be managed to support the local economy and contribute to the support of community governance in lieu of taxes. B. The KIB has previously investigated borough land, identified as a Portion of Lot 1, U.S. Survey 2539, which is generally located in the Salonie Creek drainage, upstream from the Salonie Creek Rifle Range. There are proven deposits of aggregate in this area which the KIB would like to bring into production as a public material site available to all commercial operators working on the Kodiak road system. The proposed material site would be owned and managed by the KIB who would be ultimately responsible for feasibility planning, obtaining permits and regulatory compliance, developing an mining plan and developing a reclamation plan for the site. Commercial contractors would be permitted to have non-exclusive access to the site to purchase and remove aggregate from the site under material sale agreements in accord with KIBC Chapter 18.60 Material Sales. The KIB would like to bring this aggregate mining site into production in order to sell material for local construction and road projects. C. It is the primary intent of this Request for Proposal to select a qualified principal or firm to manage the mine planning and development process from beginning to end. The selected individual or firm will be expected to provide and/or obtain services to include, but not limited to, feasibility/market study, material testings, mining plan of operations, regulatory permitting, storm water planning, reclamation planning and all other aspects of the project that are required to bring the material into operation as an operating aggregate mine. The land in question is located about .75 to 1.5 miles upstream from the Salonie Creek Rifle Range. The site is generally located approximately 2.5 miles southwest of Womens Bay, generally upstream from the mouth of Salonie Creek. The area of interest is approximately 90 acres in area and comprised of three specific sites that are all located in the general area of interest. The goal of the project is creation a municipal aggregate site that will serve community aggregate needs for the next 30 to 40 years. Interested contractors have specifically suggested that the testing should be consistent with ADOT/PF specifications for road projects. The KIB is interested in demonstmting the capability and suitability of the resource to meet the widest range of community building and construction projects. Page 182 of 215 Proposed RFP For Project Design And Management Services To P... AGENDA ITEM #2.c. D. By the time a qualified individual or firm is selected for this project the KIB expects to have surface model for the planning area that can be used for planning purposes going forward. E. The work shall be performed in compliance with all applicable federal, state and local requirements. KIB requires all work to be performed efficiently, thoroughly, cost effectively, and according to best business practices of the industry. PROJECT SCOPE The successful proposer will create a mine development plan and provide overall project management to address the following elements: • Site Identification and Evaluation • Material Testing • Feasibility Study/Market Analysis • Mining Plan of Operations • Identification of Off-site Impacts • Plan to Address Off-site Impacts • Regulatory Submittals and Permitting • Reclamation Planning • Other Relevant Matters -WA1 01 DIOWILTS] I I DI J11111111 y The anticipated project schedule is as follows Contract Award — May 1, 2017 Site visit — As needed during the duration of the project Preliminary Plan — October 2, 2017 Final Plan - December 1, 2017 Discuss the reasonableness of this proposed schedule in your proposal. REQUIRED CONTENTS OF PROPOSAL Submit a letter of interest describing your experience with similar projects and discussing your firm's ability to perform the work. This should include a statement of experience covering the background of your firm and of the consultants and sub -contractors selected. Include resumes for each professional who will contribute work to this project. Page 183 of 215 Proposed RFP For Project Design And Management Services To P... AGENDA ITEM #2.c. Provide references, including current contacts, addresses, and telephone number of clients with similar projects. Submit a fee proposal based on the information given in this Request for Proposal. EVALUATION AND SELECTION PROCESS Proposers should submit _ copies of the proposal by 3:00 P.M [date] at the following address: Kodiak Island Borough Office of the Manager 710 Mill Bay Road Kodiak, AK 99615 907-486-9301 Faxed and electronic proposals will not be accented. Proposals received after the above submission deadline will not be considered and will be returned. Proposals must be clearly marked: Salonie Creek Aggregate Mining Development Plan, Permitting and Project Management Proposal Each proposal will be reviewed and evaluated based on the following criteria: Scope of services that will be provided. Extent to which the proponent demonstrates the ability to successfully create a mining development plan, obtain regulatory permitting that meets the needs of the Kodiak Island Borough and provide overall project management and coordination. Past projects completed and the information received from references in regards to the success of those projects. Evaluation Methodology: Each proposal will be evaluated according to criteria and given the relative weight shown in the table below. EVALUATION QUALIFICATIONS/EXPERIENCE 25% SCOPE OF SERVICES (7) 25% PROPOSED RATES 25% REFERENCES 15% OVERALL QUALITY OF PROPOSAL 10% Page 184 of 215 Proposed RFP For Project Design And Management Services To P... AGENDA ITEM #2.c. A recommendation of the top firm will be made based on the results of reference checks, qualifications of the firm and scope of service provided. This will be submitted to the Kodiak Island Borough Assembly for approval and award. The Kodiak Island Borough reserves the right to reject or accept any or all bids, to waive irregularities or informalities in the proposal, and to give particular attention to the qualifications of the Proposer. KIB reserves the right to issue written addenda to revise or clarify the RFP, respond to questions, and/or extend or shorten the due date of proposals. KIB retains the right to cancel the RFP process if it is in their best interest. Any cost incurred by proposers for the preparation and submittal of the proposal is the sole responsibility of the proposer. A proposal may be corrected or withdrawn by a written request received prior to the deadline for receipt of proposals. All proposals become part of the public record and no part of any proposal may be confidential. All proposals and other material submitted become KIB property and may be returned only at their option. KIB assumes no responsibility or liability for the transmission, delay, or delivery of proposals by either public or private carriers. Any and all media announcements pertaining to this RFP require KIB's prior written approval. This RFP does not obligate KIB or the selected proposer until a contract is signed and approved by all parties. Please contact Borough Resource Manager Duane Dvorak at (907) 486-9304 with questions regarding this solicitation. Page 185 of 215 Proposed RFP For Project Design And Management Services To P... AGENDA ITEM #2.c. Page 186 of 215 Proposed RFP For Project Design And Management Services To P... At. i SCTPOI yy £k f l r Y •` a5 r S C� OS 1 � Ur Y� f 44 v _s M•Ri� - ��wwee� CALI SCTP44 Salonie Creek Gravel Planning - Routes to / Test Pit Sites ith Row5u*dle2eeess Tssr Pss Pnnl lines CSxmpk vles Y= - xmmimm mew^ 0 136260 "0 Fee! xc ..�.al.�•sisw _.. Page 186 of 215 Proposed RFP For Project Design And Management Services To P... AGENDA ITEM #2.d. KODIAK ISLAND BOROUGH STAFF REPORT " MARCH 30, 2017 ASSEMBLY WORK SESSION SUBJECT: Accessory Dwelling Unit Discussion ORIGINATOR: Sara Mason RECOMMENDATION: DISCUSSION: The purpose of this work session agenda item is to allow the Assembly to continue discussion of the ordinance in detail, with staff providing insight or clarification when needed. Paper copies of the Accessory Dwelling Unit binders were distributed to the Assembly in November. Electronic copies are also available in the document center (CivicWeb). Prior to this discussion, ADUs have been discussed by the Assembly at work sessions on January 12, 2017, February 9, 2017, March 2, 2017. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Accessory Dwelling Unit Discussion Page 187 of 215 AGENDA ITEM #2.d. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Memorandum Date: March 22, 2017 To: Borough Mayor and Assembly Cc: Borough Manager From: Community Development Director RE: ADU Ordinance Comparison In September 2016 the Planning and Zoning Commission (P&Z) transmitted Ordinance No. FY 2017-21, pertaining to Accessory Dwelling Units (ADUs), to the Assembly. In January 2017 the Assembly was presented with a summary and draft of that proposed ordinance. Over the course of several work sessions in January, February, and March, the Assembly made changes to the proposed ordinance. A side-by-side comparison summary of the version presented by PBZ and the version drafted by the Assembly is presented here. Definition of an Accessory Dwelling Unit (ADU) An ADU means an additional dwelling unit attached to or within a single-family residence or within a detached accessory structure on the same lot as the single-family residence. ADUs have a separate entrance and exit and contain kitchen, bathroom, and sleeping facilities. (This definition has not changed.) Kev Facts P8Z Draft Ordinance Assembly Draft Ordinance 1. ADUs are exempt from the maximum lot No change. coverage areas established for accessory buildings under KIBC 17.160.050. 2. ADUs are permitted in the C, RR2, RR, RR I, ADUs are permitted in the C, RR2, and R2 Rl, and R2 zoning districts. zoning districts. ADUs are conditionally permitted in the RR, RR1, and R1 zoning districts. 3. ADUs must meet the setback requirements No change. established in the zoning district in which Page 188 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. P&Z Draft Ordinance Assembly Draft Ordinance they exist. 4. Only on ADU is allowed per lot. No change. 5. ADUs must meet current building and fire No change. code requirements. 6. The ADU must have a bathroom and must No change. share the principal residence's water and sewer supply systems (unless otherwise required by a local municipality). 7.5 off-street parking spaces are required for 4 off-street parking spaces are required for lots with ADUs 650 sq. ff. or less. 6 off-street lots with ADUs. parking spaces are required for lots with ADUs greater than 650 sq. ff. B. ADU size limits: ADUs shall be limited to 480 square feet or a) C, RR, RR 1, RR2: 800 sq. ff. or 33% less. of total living area of principal dwelling; whichever is less. b) Rl: 550 sq. ft. or 33% of total living area of principal dwelling; whichever is less. c) R2: 650 sq. ft. or 33% of the total living area of the principal dwelling; whichever is less. 9. The ADU may contain no more than a The ADU may contain no more than 2 living area, kitchen, one bathroom, and one bedrooms. bedroom. 10. The owner of the property shall live in the No change. principal dwelling or the ADU. 11. No more than two people shall reside in No limit on occupancy. an ADU. 12. No new access point or driveways can No change. be constructed for access to the ADU. 13. ADUs can be located within an existing No change. single-family home that is nonconforming with respect to required setbacks as long as the off-street parking requirements are met. 14. ADUs are prohibited in any accessory No change. structure that is nonconforming with respect to required setbacks. 15`. Mobile homes, RVs, campers, and travel No change. trailers cannot be permitted as ADUs. ' This key fact was erroneously omitted from the original summary presented to the Assembly in a memo dated October 25, 2016. At the first ADU Assembly work session discussion this was brought to the attention of the Assembly. At that some work session, the Assembly concurred with the proposed language provided by PBZ. Page 189 of 215 Accessory Dwelling Unit Discussion 1 2 3 4 5 6 7 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 AGENDA ITEM #2.d. Introduced by: KIB Manager Drafted by: CDD Introduced on: Public Hearing Date: Adopted on: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-21 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING CHAPTERS 17.25 KIBC (DEFINITIONS), 17.160 KIBC (ACCESSORY BUILDINGS), AND RELATED CHAPTERS OF TITLE 17, ZONING TO INCLUDE DEVELOPMENT STANDARDS FOR ACCESSORY DWELLING UNITS AND TO SPECIFICALLY LIST ACCESSORY DWELLING UNITS AS A PERMITTED USE IN CERTAIN RESIDENTIAL ZONING DISTRICTS WHEREAS, as a second class Borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts"; and WHEREAS, there is a growing awareness of the need for additional housing options in Kodiak; and WHEREAS, the use of accessory dwelling units may be one part of a regulatory solution to address this multi -faceted issue; and WHEREAS, KIBC Title 17 (Zoning) does not include regulatory requirements for accessory dwelling units and does not list them as a permitted use in any zoning district; and WHEREAS, the public necessity and general welfare of the community may be better served by amending the code to include development standards and zoning requirements for accessory dwelling units and to list them as a permitted use in certain residential zoning districts; and Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Accessory Dwelling Unit Discussion Ordinance No. FY2017-21 Page 1 of 8 Version 2 Page 190 of 215 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 AGENDA ITEM #2.d. WHEREAS, the amendments to Chapters 17.25 KIBC (Definitions), 17.50 (C -Conservation), 17.60 (RR2-Rural Residential Two), 17.65 (RR -Rural Residential), 17.70 (RR1-Rural Residential One), 17.75 (R1 -Single-family Residential), 17.80 (132 -Two-family Residential), and 17.160 (Accessory Buildings) of Title 17 will accomplish the stated public need; and WHEREAS, the Planning and Zoning Commission held work sessions or special meetings to review the proposed changes on October 7, 2015, October 14, 2015, and November 10 2015; and WHEREAS, the Planning and Zoning Commission set aside time for public input and discussion at each work session and special meeting; and WHEREAS, the Planning and Zoning Commission held work sessions on December 9, 2015, January 13, 2016, March 9, 2016, and May 11, 2016 followed by public hearings on December 16, 2015, January 20, 2016, March 16, 2016, and May 18, 2016; and WHEREAS, the Planning and Zoning Commission, following the May 18, 2016 public hearing, failed to pass a motion to transmit their recommendations for revisions to Title 17 to the Borough Assembly; and WHEREAS, on May 19, 2016, two Planning and Zoning Commissioners filed a Reconsideration Affidavit with the Community Development Department stating their intent to reconsider the vote taken after the May 18, 2016 public hearing; and WHEREAS, the Planning and Zoning Commission, at their July 13, 2016 regular meeting, voted to reconsider the vote taken after the May 18, 2016 public hearing and to postpone the vote on the recommendations for revisions to Title 17 to their September 21, 2016 regular meeting; and WHEREAS, the Planning and Zoning Commission, held an additional work session on September 14, 2016 followed by an additional public hearing on September 21, 2016; and WHEREAS, the Planning and Zoning Commission, following the September 21, 2016 public hearing, voted to transmit their recommendations for revisions to Title 17 to the Borough Assembly; and WHEREAS, the Borough Assembly held work sessions on January 12, 2017, February 9, 2017, March 2, 2017, March 30, 2017, and April 13, 2017; and WHEREAS, the Borough Assembly held a public hearing on April 20, 2017; and NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT: Kodiak Island Borough, Alaska Deletion - Red, Strikeout Insertion - Bold, Blue, Underlined Ordinance No. FY2017-21 Page 2 of 8 Version 2 Page 191 of 215 Accessory Dwelling Unit Discussion 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 III 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 AGENDA ITEM #2.d. Section 1: This ordinance is of a general and permanent nature and shall become a part of the Kodiak Island Borough Code of Ordinances. Section 2: That Title 17 of the Kodiak Island Borough Code of Ordinances is amended to read as follows: Chapter 17.25 DEFINITIONS 17.25.020 A definitions. "Accessory Dwelling Unit (ADU)" means an additional dwelling unit attached to or within a single—family residence or within a detached accessory structure on the same lot as the single-family residence ADUs have a separate entrance and exit and contain kitchen, bathroom, and sleeping facilities. Chapter 17.160 ACCESSORY BUILDINGS AND ACCESSORY DWELLING UNITS Sections: 17.160.010 Intent. 17.160.020 Definition. 17.160.030 Permitted districts. 17.160.040 Height limit. 17.160.050 Area. 17.160.060 Setbacks. 17.060.070 Accessory dwelling units. 17.160.010 Intent. It is the intent of this chapter to set forth standards for the size and location of accessory buildings and accessory dwelling units. Hoop houses shall not be subject to the limitations of this chapter in all zoning districts where hoop houses are permitted. [Ord. FY2012-10 §12, 2012; Ord. 90-31 §2, 1990; Ord. 82-14-O(A) §2, 1982. Formerly §17.51.010]. 17.160.020 Definition. "Accessory building" means: A. A detached building, the use of which is appropriate, subordinate and customarily incidental to that of a main building, located on the same lot as the main building and which is not designed or intended to be used for living or sleeping purposes. B. An accessory building shall be considered to be a part of the main building when joined to the main building by a common wall not less than four feet long or by a roofed passageway which shall not be less than eight feet in width. Kodiak Island Borough, Alaska Ordinance No. FY2017-21 Deletion — Red, Strikeout Page 3 of 8 Insertion — Bold, Blue, Underlined Version 2 Page 192 of 215 Accessory Dwelling Unit Discussion 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 AGENDA ITEM #2.d. C. Any structure, regardless of type of foundation or base support, including skid -mounted or other movable structure, that also requires a building permit for construction (for example, structures where the projected roof area exceeds 120 square feet). A minor structural development that does not require a building permit is not regulated by this chapter. D. A nonmotorized container van when used for the sole purpose of storing emergency response equipment in the Kodiak Island Borough and not placed on a permanent foundation. [Ord. 2001-01 §2, 2001; Ord. 90-31 §2, 1990; Ord. 82-14-O(A) §2,1982. Formerly §17.51.020]. 17.160.030 Permitted districts. A. Accessory buildings are permitted in all land use districts that specifically allow for them. B. In residential zoning districts, no accessory building shall be located on any lot in the absence of a main building used as a residence; except that in the case of a vacant lot, zoning compliance for an accessory building (used solely for the storage of tools and materials needed for the construction of the permitted residence) may be issued at the same time zoning compliance and a building permit are issued for a residence. C. An accessory building as defined by KIBC 17.160.020(D) is permitted in all zoning districts with authorization from the local municipality and issuance of a zoning compliance permit. [Ord. 2001-01 §3, 2001; Ord. 90-31 §2, 1990; Ord. 82-14-O(A) §2, 1982. Formerly §17.51.030]. 17.160.040 Height limit. The maximum height of an accessory building is 25 feet. An exception to this section is any structure that meets the definition of an amateur radio antenna as outlined in AS 29.35.141. [Ord. FY2006-08 §2, 2006; Ord. 90-31 §2, 1990; Ord. 82-14-O(A) §2, 1982. Formerly §17.51.040]. 17.160.050 Area. A. The maximum lot coverage of the total of all accessory buildings on a lot shall not exceed 10 percent of the area of a lot except that on any lot of record, accessory buildings may cover a maximum of 600 square feet of the lot or 10 percent of the area of the lot, whichever is greater. B. Accessory dwelling units are exempt from the lot coverage limitations of this section. 17.160.060 Setbacks. The minimum yard setbacks requirements for accessory buildings and accessory dwelling units are those established for the zoning district in which the accessory building or accessory dwelling unit will be located. 17.160.070 Accessory dwelling units. A. Intent. Accessory dwelling units (ADUs) add options and housing choice in residential neighborhoods and can be an effective wav to add affordable housing to existing neighborhoods. ADUs also provide a flexible way to address family needs for additional housing. ADUs are not intended for use as transient housing and shall not be permitted for use as a bed and breakfast. 1. ADUs are not intended to allow a two-family residence in the R-1 zoning district. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bald, Blue, Underlined Ordinance No. FY2017-21 Page 4 of 8 Version 2 Page 193 of 215 Accessory Dwelling Unit Discussion 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 AGENDA ITEM #2.d. 2. ADUs are not intended to circumvent the parking requirements for a two-family dwelling (duplex) in the R-2 zoning district. B. Permitted Uses. 1 ADUs are a permitted use in the following residential zoning districts: a Chapter 17.50 KIBC C -Conservation District; b Chapter 17.60 KIBC RR2-Rural Residential Two District; c Chapter 17.80 KIBC R2 -Two-family Residential District. C. Conditional Uses, 1 ADUs are a conditional use in the following residential zoning districts: a Chapter 17.65 KIBC RR -Rural Residential District; b Chapter 17.70 KIBC RR1-Rural Residential One District; c Chapter 17.75 KIBC R1 -Single-family Residential District. D. Development Standards for ADUs. 1. Only one ADU shall be permitted on a lot. 2 Location An ADU may be attached to or located within a single-family residence or within a detached accessory building on the same lot as the single-family residence. If the ADU is located within a single-family dwelling there shall only be one entrance to the front of the house Separate entrances to an ADU are permitted at the side or the rear of the principal dwelling unit.. 3 ADUs are required to comply with all applicable building and fire code requirements. 4 Water supply and wastewater disposal The accessory dwelling unit must have a bathroom and shall share the same sewage disposal and water supply systems (e.g. a well and septic system or connection to public water and sewer) as the principal dwelling unit unless separate sewer and water connections are required by the City of Kodiak ADEC or the communities of Ahkiok Karluk Larsen Bay, Old Harbor. Ouzinkie, or Port Lions. 5. Parking. a Four off-street parking spaces are required for any lot with an ADU (3 for the existing dwelling unit and 1 for the ADU). 6. Size Limit. a An ADU shall be limited to 480 square feet or less. d Mobile homes recreational vehicles campers and travel trailers are not permitted to be used as an ADU. 7 The accessory dwelling may contain no more than two bedrooms. 8 The owner of the property shall live in the principal dwelling or the ADU. 9 No new access points or driveways shall be created or installed for access to the ADU. 10. Nonconforming structures. a ADUs may be located within an existing single-family detached dwelling that is nonconforming with respect to required setbacks provided the ADU requirement for off-street parking is met. b ADUs are prohibited in any accessory structure that is nonconforming with respect to required setbacks. 11 Access for emergency services providers. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Accessory Dwelling Unit Discussion Ordinance No. FY2017-21 Page 5 of 8 Version 2 Page 194 of 215 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 AGENDA ITEM #2.d. a. The zoning compliance permit and site plan for an ADU must show the location of an unobstructed route of travel from the street to the ADU entrance. b. Exterior doors and openings required by this code or the IBC shall be maintained readily accessible for emergency access by the fire department. An approved access walkway leading from the apparatus access roads to exterior openings shall be provided when required by the fire code official. Chapter 17.50 C — CONSERVATION DISTRICT 17.50.030 Permitted accessory uses and structures. In addition to those uses and structures specifically identified in KIBC 17.50.020, the following accessory uses and structures are permitted when developed in support of permitted principal uses: B. Accessory residential buildings (e.g., accessory dwelling units, crew quarters in support of commercial set -net fishing and lodge operations, banyas, outhouses, etc.); Chapter 17.60 RR2 — RURAL RESIDENTIAL TWO DISTRICT 17.60.020 Permitted uses. The following land uses and activities are permitted in the rural residential two district: A. Accessory buildings and accessory dwelling units; Chapter 17.65 RR — RURAL RESIDENTIAL 17.65.040 Conditional uses. The following land uses may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Firework stands; aad B. Recreational vehicle parks C. Accessory dwelling units. Chapter 17.70 RR1 — RURAL RESIDENTIAL ONE DISTRICT Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-21 Page 6 of 8 Version 2 Page 195 of 215 Accessory Dwelling Unit Discussion 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 AGENDA ITEM #2.d. 17.70.030 Conditional uses. The following land uses may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: A. Firework stands; aad B. Recreational vehicle parks -.Land C. Accessory dwelling units. Chapter 17.75 R1 — SINGLE-FAMILY RESIDENTIAL DISTRICT 17.75.030 Conditional uses. The following land uses may be allowed by obtaining a conditional use permit in accordance with the provisions of Chapter 17.200 KIBC: D. Vacation homes; aad E. Recreational vehicle parks. -Land F. Accessory dwelling units. Chapter 17.80 R2 — TWO-FAMILY RESIDENTIAL DISTRICT 17.80.020 Permitted uses. The following land uses are permitted in the two-family residential district: N. Bed and breakfasts; and O. Hoop houses-Land P.Accessory dwelling units when there is a single-family residence on the property. Section 3: By this ordinance, the Borough Assembly adopts the following findings of fact in support of their approval of these amendments: 1. There is a growing need for housing options in Kodiak. The use of accessory dwelling units may be one part of a regulatory solution to address this multi- faceted issue. 2. Current KIBC Title 17 (Zoning) does not include regulatory requirements for accessory dwelling units and does not list them as a permitted use in any zoning district. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Accessory Dwelling Unit Discussion Ordinance No. FY2017-21 Page 7 of 8 Version 2 Page 196 of 215 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 AGENDA ITEM #2.d. 3. The amendments to Chapters 17.25, 17.160, and related Chapters of Title 17 KIBC provide the regulatory requirements for accessory dwelling units and list accessory dwelling units as a permitted use in certain residential zoning districts. 4. The amendments to Chapters 17.25, 17.160, and related Chapters of Title 17 KIBC are consistent with the adopted Comprehensive Plan goals and policies related to housing and specifically, affordable housing. 5. The Planning and Zoning Commission recommends approval of the amendments to Chapters 17.25, 17.160, and related Chapters of Title 17 KIBC. Effective Date: This ordinance takes effect upon adoption. (Note: KIBC 2.30.070 states an ordinance takes effect upon adoption or at a later date specified in the ordinance.) ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS DAY OF 2017. Daniel A. Rohrer, Mayor VOTES: Ayes: Noes: Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined ATTEST: Nova M. Javier, MMC, Clerk Ordinance No. FY2017-21 Page 8 of 8 Version 2 Page 197 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. Date: February 28, 2017 To: Borough Assembly From: Borough Mayor Re: Accessory Dwelling Unit Update Below is a summary of the Assemblies discussion and decisions that have been made over the first two meetings on Accessory Dwelling Units (ADUs). On page 4 are 5 questions remaining to be discussed and answered. Please review the key facts and the bolded reference to the Assemblies discussion. Also please come prepared to discuss the 5 questions. Key Facts 1) ADUs are exempt from the maximum lot coverage areas established for accessory buildings under KIBC 17.160.050. -The Assembly talked around this one but we need a little more clarification on lot coverage. 2) ADUs are permitted in the C, RR2, RR, RR1, R1, and R2 zoning districts. -The Assembly discussed this at length. Please see graph below. There is still a question in regards to R1. There was some last minute discussion. Zoning District C -Conservation Permitted RR -Rural Residential Not Permitted RRl-Rural Residential One 2 acres and larger: 40,000 sq ft to 2 acres: 40,000 sq ft and less: permitted Attached - Permitted Unattached - Conditional Use Attached - Conditional Use Unattached - Not Permitted RR2-Rural Residential Two Permitted R1 -Single -Family Residential Conditional Use R2 -Two -Family Residential Permitted Page 198 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. 3) ADUs must meet the setback requirements established in the zoning district in which they exist. -The Assembly agreed with this recommendation. 4) Only one ADU is allowed per lot. • The Assembly agreed with this recommendation. 5) ADUs must meet current building and fire code requirements. • The Assembly agreed with this recommendation but considered adding some additional language specifying the "requirements of the city and borough". The actual ordinance that will come in front of the Assembly reads "ADUs are required to comply with all applicable building and fire code requirements." 6) The ADU must have a bathroom and must share the principal residence's water and sewer supply systems (unless otherwise required by a local municipality). • The Assembly agreed with this recommendation. 7) 5 off-street parking spaces are required for lots with ADUs 650 sq. ft. or less. 6 off-street parking spaces are required for lots with ADUs greater than 650 sq. ft. -The Assembly has not discussed this and it is listed below for discussion. 8) ADU size limits: a) C, RR, RR 1, RR2: 800 sq. ft. or 33% of total living area of principal dwelling; whichever is less. b) Rl : 550 sq. ft. or 33% of total living area of principal dwelling; whichever is less. c) R2: 650 sq. ft. or 33% of the total living area of the principal dwelling; whichever is less. -The Assembly talked a lot about this but staff needs further clarification. It seemed like there was some agreement on 33% especially when referencing an unattached structure but there was concern over whether 33% was the right number when inside of a structure. This has been added to the list of questions below. Page 199 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. 9) The ADU may contain no more than a living area, kitchen, one bathroom, and one bedroom. -The Assembly wanted to modify this to reference the requirement of a kitchen and a bathroom. There might be willingness to look at no more than 2 bedrooms but the limit to one was not acceptable because of the reality of a couple having a child, etc. Also the overall enforceability was discussed. 10) The owner of the property shall live in the principal dwelling or the ADU. • The Assembly agreed with this recommendation but at least one person was concerned about overall enforceability. 11) No more than two people shall reside in an ADU. -The Assembly did not agree with this recommendation. The concern was the reality of a family having a child and the overall enforceability. There was some question in my mind if there was an interest in limiting the overall number of adults (this helps limit parking challenges, etc). 12) No new access point or driveways can be constructed for access to the ADU. • The Assembly agreed with this recommendation after the explanation of 911 and addressing requirements. 13) ADUs can be located within an existing single-family home that is nonconforming with respect to required setbacks as long as the off-street parking requirements are met. • The Assembly agreed with this recommendation. 14) ADUs are prohibited in any accessory structure that is nonconforming with respect to required setbacks. • The Assembly agreed with this recommendation. Page 200 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. Questions Remaining to be answered Should ADUs be exempt from maximum lot coverage? 2. How much off street parking should be required? 3. Size limitations? Total allowed square footage? Recommendation was: Zoning District Total SF Allowed C -Conservation 800 RR -Rural Residential 800 RR1-Rural Residential One 800 RR2-Rural Residential Two 800 R1 -Single -Family Residential 550 R2 -Two -Family Residential 650 4. Percentage of principle dwelling? Is 33% the correct number for attached and unattached? 5. What should be allowed on RI? After answering these 5 questions staff should be able to finalize a series of ordinances and bring them forward for public hearing and discussion. Page 201 of 215 Accessory Dwelling Unit Discussion Memorandum AGENDA ITEM #2.d. Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9363 Fax (907) 486-9396 www.kodiakak.us Date: October 25, 2016 To: Borough Mayor, Assembly, and Manager From: Community Development Director RE: Accessory Dwelling Unit Ordinance Summary Zoning District Total SF Allowed % of Principal Dwelling* Parking Requirement** C -Conservation 800 33 6 RR -Rural Residential 800 33 6 RR1-Rural Residential One 800 33 6 RR2-Rural Residential Two 800 33 6 RI -Single -Family Residential 550 33 5 R2 -Two -Family Residential 650 33 5 R3 -Multi -Family Residential Not permitted • Total square footage of ADU is "Total SF Allowed" or 33% of the total living area of the pnnapal dwelling, whichever is less. •• Number listed is modmum number possibly required. Number of parking spaces is dependent on square footage of ADU. Definition of an Accessory Dwelling Unit (ADUI An ADU means an additional dwelling unit attached to or within a single-family residence or within a detached accessory structure on the same lot as the single-family residence. ADUs have a separate entrance and exit and contain kitchen, bathroom, and sleeping facilities. Key Facts 1) ADUs are exempt from the maximum lot coverage areas established for accessory buildings under KIBC 17.160.050. 2) ADUs are permitted in the C, RR2, RR, RR1, Rl, and R2 zoning districts. Page 202 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. 3) ADUs must meet the setback requirements established in the zoning district in which they exist. 4) Only one ADU is allowed per lot. 5) ADUs must meet current building and fire code requirements. 6) The ADU must have a bathroom and must share the principal residence's water and sewer supply systems (unless otherwise required by a local municipality). 7) 5 off-street parking spaces are required for lots with ADUs 650 sq. ft. or less. 6 off-street parking spaces are required for lots with ADUs greater than 650 sq. ft. 8) ADU size limits: a) C, RR, RR I, RR2: 800 sq. ft. or 33% of total living area of principal dwelling; whichever is less. b) R1: 550 sq. ft. or 33% of total living area of principal dwelling; whichever is less. c) R2: 650 sq. ft. or 33% of the total living area of the principal dwelling; whichever is less. 9) The ADU may contain no more than a living area, kitchen, one bathroom, and one bedroom. 10) The owner of the property shall live in the principal dwelling or the ADU. 1 1) No more than two people shall reside in an ADU. 12) No new access point or driveways can be constructed for access to the ADU. 13) ADUs can be located within an existing single-family home that is nonconforming with respect to required setbacks as long as the off-street parking requirements are met. 14) ADUs are prohibited in any accessory structure that is nonconforming with respect to required setbacks. Ya Page 203 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #.a Accessory Dwelling Unit Discussion oaf S m )�k \\_0 {k � � Eu � m m k]S /\)f b=b± 8 < \\ (D «t2\ cj \//ƒ §k _f U C) K .oa 2 i 0 k§ =B ta�: o- CL -01 _ _ = m � Rk < -� § .m9 2 , 3 0 2 » ) \ C: � # ¥)tE \ \ \ } } cy00 \ 7 % \ { k }\E§ \ 2)) � \ \) \ j _ Sr J£ § ^{ ) § f ± m § J a =s-) (�\ 0E C (1) � u ' \)�\ D a) _� -2 u ow -! __,� Ea£z {! f oe=2 = f §[ 02 i®$® :r . e§;£ 0E 5~w> : f»&± ! o000 f: _ = m= / C) C: o f=5E 2< ecw= Accessory Dwelling Unit Discussion oaf )�k {k � � � � m m \\ §k K k§ ° _ _ = m � Rk 2 , 3 0 2 » \ � \ \ \ } } \ \ 7 % \ { { \ 2)) � \ \) \ j § I m § &) a (�\ � u Page 204 @ 2a AGENDA ITEM #2.d. C O N U U j O u P V^ N NLO V 3 — N ° N U•� co -0^ n 0 d U a) O n # d U N00 CO CD 0 0 LOLn0 n CO v CL `c c a E Y 0 O O D O LO i17 ° 'n a Q 0 . N _ O O O. C CO CO m m '0 V) U N CO M O c 3 a p 0 Z " m 0 0 0 0 0 0 ° �coLo co co a O O C O C C -O q) N N u " O O a q N p C N En a) N a N -0 > _ o O g -0E > — H>6 CQI�) O 6 N tY 0 0 N 0500 UN VJ�� d 0' N M U O! O! Page 205 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #.a Page 206 of 216 Accessory Dwk3uko _Un § « «, = m \ � ;r ! _ M -! \} > 012 _- �e, ƒ�« - /J nr- = C41 _LO t % £ (^� U)\k § r \ 1 . ♦ ?� CD \ \ ) /s . § < 0 .B2 C �!! . / % k ` 00 IE m r a. = f� 0 AL k 2 f� 0 o k ; / E ƒ ) \f§ ; a ;! WE ^\E }t k f ® k!§ Rf E.in . . 7! 'k) ` ��_926 — z;\ • S ®a0 0� mo m- > Q«22`2 �) o ` 3??i\ C / . \� 2 )))/{ _ \q , E __ ~ k/� GWJe/ '� . ® - E 2 CL )�� « Page 206 of 216 Accessory Dwk3uko _Un 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 AGENDA ITEM #2.d. Introduced by: KIB Manager Requested by: P8Z Commission Drafted by: CDD Introduced: 11/0312016 Public Hearing: Adopted: KODIAK ISLAND BOROUGH ORDINANCE NO. FY2017-21 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING CHAPTERS 17.25 KIBC (DEFINITIONS), 17.160 KIBC (ACCESSORY BUILDINGS), AND RELATED CHAPTERS OF TITLE 17, ZONING TO INCLUDE DEVELOPMENT STANDARDS FOR ACCESSORY DWELLING UNITS AND TO SPECIFICALLY LIST ACCESSORY DWELLING UNITS AS A PERMITTED USE IN CERTAIN RESIDENTIAL ZONING DISTRICTS WHEREAS, as a second class Borough, the Kodiak Island Borough exercises planning, platting, and land use regulations on an area wide basis pursuant to Chapter 29.40 Alaska Statutes; and WHEREAS, in accordance with AS 29.40, the Kodiak Island Borough adopted the 2008 Comprehensive Plan update on December 6, 2007 (Ordinance No. FY2008-10) to replace the 1968 Comprehensive Plan; and WHEREAS, the Kodiak Island Borough has adopted KIBC Title 17 (Zoning) in accordance with AS 29.40 to implement the Kodiak Island Borough Comprehensive Plan; and WHEREAS, KIBC 17.205.010 provides that "Whenever the public necessity, convenience, general welfare or good zoning practice requires, the assembly may, by ordinance and after report thereon by the commission and public hearing as required by law, amend, supplement, modify, repeal or otherwise change these regulations and the boundaries of the districts;" and WHEREAS, there is a growing awareness of the need for additional housing options in Kodiak; and WHEREAS, the use of accessory dwelling units may be one part of a regulatory solution to address this multi -faceted issue; and WHEREAS, KIBC Title 17 (Zoning) does not include regulatory requirements for accessory dwelling units and does not list them as a permitted use in any zoning district; and WHEREAS, the public necessity and general welfare of the community may be better served by amending the code to include development standards and zoning requirements for accessory dwelling units and to list them as a permitted use in certain residential zoning districts; and WHEREAS, the amendments to Chapters 17.25 KIBC (Definitions), 17.50 (C - Conservation), 17.60 (RR2-Rural Residential Two), 17.65 (RR -Rural Residential), 17.70 (RR1-Rural Residential One), 17.75 (R1 -Single-family Residential), 17.80 (R2 -Two-family Residential), and 17.160 (Accessory Buildings) of Title 17 will accomplish the stated public need; and Kodiak Island Borough, Alaska Ordinance No. FY2017-21 Page 1 of 8 Page 20B of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. 54 WHEREAS, the Planning and Zoning Commission held work sessions or special meetings 55 to review the proposed changes on October 7, 2015, October 14, 2015, and November 10 56 2015; and 57 58 WHEREAS, the Planning and Zoning Commission set aside time for public input and 59 discussion at each work session and special meeting; and 60 61 WHEREAS, the Planning and Zoning Commission held work sessions on December 9, 62 2015, January 13, 2016, March 9, 2016, and May 11, 2016 followed by public hearings on 63 December 16, 2015, January 20, 2016, March 16, 2016, and May 18, 2016; and 64 65 WHEREAS, the Planning and Zoning Commission, following the May 18, 2016 public 66 hearing, failed to pass a motion to transmit their recommendations for revisions to Title 17 67 to the Borough Assembly; and 68 69 WHEREAS, on May 19, 2016, two Planning and Zoning Commissioners filed a 70 Reconsideration Affidavit with the Community Development Department stating their intent 71 to reconsider the vote taken after the May 18, 2016 public hearing; and 72 73 WHEREAS, the Planning and Zoning Commission, at their July 13, 2016 regular meeting, 74 voted to reconsider the vote taken after the May 18, 2016 public hearing and to postpone 75 the vote on the recommendations for revisions to Title 17 to their September 21, 2016 76 regular meeting; and 77 78 WHEREAS, the Planning and Zoning Commission, held an additional work session on 79 September 14, 2016 followed by an additional public hearing on September 21, 2016; and 80 81 WHEREAS, the Planning and Zoning Commission, following the September 21, 2016 82 public hearing, voted to transmit their recommendations for revisions to Title 17 to the 83 Borough Assembly; and 84 85 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND 86 BOROUGH that: 87 88 Section 1: This ordinance is of a general and permanent nature and shall become a 89 part of the Kodiak Island Borough Code of Ordinances; and 90 91 Section 2: This ordinance shall be effective upon adoption. 92 93 Section 3: By this ordinance, the Borough Assembly adopts the following findings of 94 fact in support of their approval of these amendments: 95 96 1. There is a growing need for housing options in Kodiak. The use of 97 accessory dwelling units may be one part of a regulatory solution to 98 address this multi -faceted issue. 99 100 2. Current KIBC Title 17 (Zoning) does not include regulatory requirements 101 for accessory dwelling units and does not list them as a permitted use in 102 any zoning district. 103 104 3. The amendments to Chapters 17.25, 17.160, and related Chapters of 105 Title 17 KIBC provide the regulatory requirements for accessory Kodiak Island Borough, Alaska Ordinance No. FY2017-21 Page 2 of 8 Page 209 of 215 Accessory Dwelling Unit Discussion 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 AGENDA ITEM #2.d. dwelling units and list accessory dwelling units as a permitted use in certain residential zoning districts. 4. The amendments to Chapters 17.25, 17.160, and related Chapters of Title 17 KIBC are consistent with the adopted Comprehensive Plan goals and policies related to housing and specifically, affordable housing. 5. The Planning and Zoning Commission recommends approval of the amendments to Chapters 17.25, 17.160, and related Chapters of Title 17 KIBC. Chapter 17.25 DEFINITIONS 17.25.020 A definitions. Chapter 17.160 ACCESSORY BUILDINGS AND ACCESSORY DWELLING UNITS Sections: 17.160.010 Intent. 17.160.020 Definition. 17.160.030 Permitted districts. 17.160.040 Height limit. 17.160.050 Area. 17.160.060 Setbacks. 17.060.070 Accessory Dwelling Units. 17.160.010 Intent. It is the intent of this chapter to set forth standards for the size and location of accessory buildings and accessory dwelling units. Hoop houses shall not be subject to the limitations of this chapter in all zoning districts where hoop houses are permitted. [Ord. FY2012-10 §12, 2012; Ord. 90-31 §2, 1990; Ord. 82-14-O(A) §2, 1982. Formerly §17.51.010]. 17.160.020 Definition. "Accessory building" means: Kodiak Island Borough, Alaska Accessory Dwelling Unit Discussion Ordinance No. FY2017-21 Page 3 of 8 Page 210 of 215 AGENDA ITEM #2.d. 152 A. A detached building, the use of which is appropriate, subordinate and customarily 153 incidental to that of a main building, located on the same lot as the main building and 154 which is not designed or intended to be used for living or sleeping purposes. 155 B. An accessory building shall be considered to be a part of the main building when joined 156 to the main building by a common wall not less than four feet long or by a roofed 157 passageway which shall not be less than eight feet in width. 158 C. Any structure, regardless of type of foundation or base support, including skid -mounted 159 or other movable structure, that also requires a building permit for construction (for 160 example, structures where the projected roof area exceeds 120 square feet). A minor 161 structural development that does not require a building permit is not regulated by this 162 chapter. 163 D. A nonmotorized container van when used for the sole purpose of storing emergency 164 response equipment in the Kodiak Island Borough and not placed on a permanent 165 foundation. [Ord. 2001-01 §2, 2001; Ord. 90-31 §2, 1990; Ord. 82-14-0(A) §2, 1982. 166 Formerly §17.51.020]. 167 168 17.160.030 Permitted districts. 169 A. Accessory buildings are permitted in all land use districts that specifically allow for 170 them. 171 B. In residential zoning districts, no accessory building shall be located on any lot in the 172 absence of a main building used as a residence; except that in the case of a vacant lot, 173 zoning compliance for an accessory building (used solely for the storage of tools and 174 materials needed for the construction of the permitted residence) may be issued at the 175 same time zoning compliance and a building permit are issued for a residence. 176 C. An accessory building as defined by KIBC 17.160.020(D) is permitted in all zoning 177 districts with authorization from the local municipality and issuance of a zoning compliance 178 permit. [Ord. 2001-01 §3, 2001; Ord. 90-31 §2, 1990; Ord. 82-14-0(A) §2, 1982. Formerly 179 §17.51.030]. 180 181 17.160.040 Height limit. 182 The maximum height of an accessory building is 25 feet. An exception to this section is 183 any structure that meets the definition of an amateur radio antenna as outlined in AS 184 29.35.141. [Ord. FY2006-08 §2, 2006; Ord. 90-31 §2, 1990; Ord. 82-14-0(A) §2, 1982. 185 Formerly §17.51.040]. 186 187 17.160.050 Area. 188 A. The maximum lot coverage of the total of all accessory buildings on a lot shall not 189 exceed 10 percent of the area of a lot except that on any lot of record, accessory buildings 190 may cover a maximum of 600 square feet of the lot or 10 percent of the area of the lot, 191 whichever is greater. 192 B. Accessory dwelling units are exempt from the lot coverage limitations of this 193 section. 194 195 17.160.060 Setbacks. 196 The minimum yard setbacks requirements for accessory buildings and accessory 197 dwelling units are those established for the zoning district in which the accessory building 198 or accessory dwelling unit will be located. 199 200 17.160.070 Accessory Dwelling Units. Kodiak Island Borough, Alaska Accessory Dwelling Unit Discussion Ordinance No. FY2017-21 Page 4 of 8 Page 211 of 215 201 202 203 204 205 206 AGENDA ITEM #2-d- A. Intent. 207 1. ADUs are not intended to allow a two-family residence in the R-1 zoning 208 district. 209 2. ADUs are not intended to circumvent the parking requirements for a two - 210 family dwelling (duplex) in the R-2 zoning district. 211 B. Permitted Uses. 212 1 ADUs are a permitted use in the following residential zoning districts: 213 a. Chapter 17.50 KIBC, C -Conservation District: 214 b Chapter 17.60 KIBC RR2-Rural Residential Two District; 215 c. Chapter 17.65 KIBC, RR -Rural Residential District; 216 d. Chapter 17.70 KIBC, RR1-Rural Residential One District; 217 a Chapter 17.75 KIBC R1 -Single-family Residential District; 218 f. Chapter 17.80 KIBC, R2 -Two-family Residential District. 219 C. Development Standards for ADUs. 220 1. Only one ADU shall be permitted on a lot. 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 3 ADUs are required to comply with all applicable building and fire code requirements. 5. Parking. 6. Size Limit. Kodiak Island Borough, Alaska Accessory Dwelling Unit Discussion Ordinance No. FY2017-21 Page 5 of 8 Page 212 of 215 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 MR, 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 AGENDA ITEM #2. d. b. Within the R1 — Single-family Residential zoning district, the ADU shall be limited to 33 percent of the total living area of the principal dwelling or 550 square feet, whichever is less. c. Within the R2 — Two-family Residential zoning district, the ADU shall be limited to 33 percent of the total living area of the principal dwelling or 650 square feet, whichever is less. d. Mobile homes, recreational vehicles, campers, and travel trailers are not permitted to be used as an ADU. 7. The accessory dwelling may contain no more than a living area, kitchen area, one bedroom, and one bath. B. The owner of the property shall live in the principal dwelling or the ADU. 9. No more than two people shall reside in the ADU. 10. No new access points or driveways shall be created or installed for access to the ADU. 11. Nonconforming structures. a. ADUs may be located within an existing single-family detached dwelling that is nonconforming with respect to required setbacks, provided the ADU requirement for off-street parking is met. b. ADUs are prohibited in any accessory structure that is nonconforming with respect to required setbacks. 12. Access for emergency services providers. a. The zoning compliance permit and site plan for an ADU must show the location of an unobstructed route of travel from the street to the ADU entrance. Chapter 17.50 C — CONSERVATION DISTRICT 17.50.030 Permitted accessory uses and structures. In addition to those uses and structures specifically identified in KIBC 17.50.020, the following accessory uses and structures are permitted when developed in support of permitted principal uses: B. Accessory residential buildings (e.g., accessory dwelling units, crew quarters in support of commercial set -net fishing and lodge operations, banyas, outhouses, etc.); Kodiak Island Borough, Alaska Ordinance No. FY2017-21 Page 6 of 8 Page 213 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. 291 292 293 294 Chapter 17.60 295 RR2 — RURAL RESIDENTIAL TWO DISTRICT 296 297 ... 298 299 17.60.020 Permitted uses. 300 The following land uses and activities are permitted in the rural residential two district: 301 A. Accessory buildings and accessory dwelling units; 302 303 ... 304 Chapter 17.65 305 RR — RURAL RESIDENTIAL DISTRICT 306 307 ... 308 309 17.65.030 Permitted accessory uses and structures. 310 A. Accessory buildings and accessory dwelling units; 311 312 ... 313 314 Chapter 17.70 315 RR1 — RURAL RESIDENTIAL ONE DISTRICT 316 ... 317 318 17.70.020 Permitted uses. 319 The following land uses are permitted in the rural residential one district: 320 A. Accessory buildings and accessory, dwelling units; 321 322 ... 323 Chapter 17.75 324 R1 —SINGLE-FAMILY RESIDENTIAL DISTRICT 325 ... 326 327 17.75.020 Permitted uses. 328 The following land uses and activities are permitted in the single-family residential district: 329 A. Accessory buildings and accessory dwelling units; 330 ... 331 332 Chapter 17.80 333 R2—TWO-FAMILY RESIDENTIAL DISTRICT 334 ... 335 336 17.80.020 Permitted uses. 337 The following land uses are permitted in the two-family residential district: 338 A. Accessory buildings; 339 B. Beauty shops; Kodiak Island Borough, Alaska Ordinance No. FY2017-21 Page 7 of 8 Page 214 of 215 Accessory Dwelling Unit Discussion AGENDA ITEM #2.d. 340 C. Churches; 341 D. Clinics; 342 E. Greenhouses; 343 F. Home occupations; 344 G. Hospitals; 345 H. Parks and playgrounds; 346 I. Professional offices; 347 J. Schools; 348 K. Single-family dwellings; 349 L. Two-family dwellings; 350 M. Vacation homes; 351 N. Bed and breakfasts; and 352 O. Hoop houses -wand 353 P. Accessory dwelling units when there is a single-family residence on the 354 propertV. rnra FY2016 06 ao 2015i n.a FY2012 10 a10 20121 n.a rvonm OR n 355 356 357 358 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH 359 THIS DAY OF 2016 360 361 362 KODIAK ISLAND BOROUGH 363 364 365 366 Jerrol Friend, Borough Mayor 367 368 ATTEST: 369 370 371 372 Nova M. Javier, MMC, Borough Clerk Kodiak Island Borough, Alaska Ordinance No. FY2017-21 Page 8 of 8 Page 215 of 215 Accessory Dwelling Unit Discussion KODIAK ISLAND BOROUGH WORK SESSION Work Session of: 6 47 Please PRINT your name Please PRINT your name qY 6 I d"" 6clw� Sc o Janf E ice n SAN �� s