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FY2017-27 Amending Kodiak Island Borough Code Title 3 Revenue Finance, Title 5 Business Licenses And Regulations, And Title 17 Zoning To Provide For Regulations Relating To Marijuana Businesses1 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 Introduced by: KIB Assembly Drafted by: CDD Director Introduced on: 04/06/2017 Amended on: 04/20/2017 Public Hearing Date: 04/20/2017 Adopted on: 04/20/2017 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 Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 1 of 21 Version 2 44 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 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 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 InvoluntarV 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. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 2 of 21 Version 2 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 A. ApplicabilitV. Unless provided otherwise, this chapter shall apply to the taxation of all mariivana 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. 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 marijuana cultivation facilitV, and the enforcement of such tax. C. AuthoritV. This chapter and the regulations related to marijuana establishments herein are adopted pursuant to the authority granted bV AS 17.38.100 and 29.35.010(6). 3.70.020 Definitions. "Flower and bud" means the hairy, stickV, or crystal -covered parts of mature female mariivana plants generallV 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 facilitV and a limited marijuana cultivation facility as licensed under 3 AAC 306.300. "Marijuana product manufacturing facilitV" has the meaning given in AS 17.38.900. "Marijuana 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 identitV of the partners, or in the ownership percentages held bV anV partners; 2. If the licensee is a limited liability companV, anV 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 mariivana, as defined under AS 17.38.900, with or without consideration, or bV 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 facilitV licensed pursuant to 3 AAC 306.300, including standard mariivana cultivation facilities, and limited marijuana 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 anV per -ounce excise tax imposed by the State of Alaska on the date of transfer pursuant to AS 43.61.010, or 510.00 per ounce, whichever is greater; Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 3 of 21 Version 2 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 2. All remaining portions of the plant not included in subsection (13)(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. 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 marijuana 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 levying 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 thirty (30) days after the end of each month, licensees 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 periury by the licensee or agent and shall include: 1. A copy of the tax return for that month submitted by 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 marijuana cultivation facility is being operated; 6. A report setting forth the total amount of mariivana 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 by the finance director. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 4 of 21 Version 2 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 C. A marijuana cultivation facility licensed under this chapter shall file a tax return by thirty (30) days after the end of the previous month, even if it did not cultivate or transfer any marijuana in the borough during the preceding month. D. The taxes imposed under this chapter and the return required bV this section must be received by the finance director or postmarked within thirty (30) days following the month covered by the return. E. A separate tax return must be filed for each location when a taxpayer is operating in several locations within the borough. 3.70.060 Involuntary 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 bV the records to be maintained pursuant to this chapter, the finance director may prepare and file a return on behalf of the licensee. InvoluntarV returns filed under this section maV 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 liabilitV 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 bV 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 bV the licensee within one year after the due date of the tax return being amended. No amendment bV 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 bV the licensee within one year of the date filed by the finance director. No amendment bV the licensee shall be allowed after this one-year period. 3.70.080 Application of payments. AnV payment submitted to the finance director for any taxes, penalties, interest, or cost due under any provision of this chapter or anV return or any finding or determination bV 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. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 5 of 21 Version 2 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 A. No person shall operate a marijuana cultivation facilitV within the borough without complying with the provisions of this chapter. B. A penalty of ten (10) percent of the taxes due shall be incurred automatically when a person fails to pay the fullamount 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 bV 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 penaltV 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 twelve (12) percent of the tax due. For good cause shown, the finance director maV waive or reduce all or part of anV penaltV imposed under this subsection. 3.70.100 Civil fraud. A. A civil fraud penaltV may be assessed against a person in addition to a penaltV for failure to file or failure to paV. 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 penaltV will be added to the tax. The penalty is 50 percent of the deficiencV 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 Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 6 of 21 Version 2 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 2. The understatement was the result of an intent to evade tax. E. An intent to evade tax maV be demonstrated bV anV 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 marijuana cultivated or transferred; 4. The person has substantially overstated a deduction and has failed to justify overstatement. 3.70.110 Tax lien. A. If anV person who is liable to paV 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 penaltV together with costs, is a lien in favor of the borough upon all propertV and rights to propertV, real or personal, belonging to that person. B. The lien imposed bV this section arises upon delinquencV and continues until the amount is paid or a judgment against the person arising out of the liabilitV 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, conveVances, and assignments, upon all real and personal propertV of the person liable for the tax and upon all the real and personal propertV used with the permission of the owner to carrV on the business which is subject to the tax. D. The lien on personal and real propertV may be enforced in a manner similar to that provided bV AS 29.45.300 through 29.45.480 for enforcement of real and personal propertV tax liens. 3.70.120 Interest on unpaid tax. In addition to anV penalties imposed bV 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 TaxpaVer, licensee, or other person remedies. A. Any person aggrieved bV 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 maV applV 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. Hearings before the assembly under this subsection maV, at the option of the assembly, be Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 7 of 21 Version 2 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 conducted by an administrative hearing officer designated bV the assemblV• The hearing officer shall conduct the hearing and prepare findings and conclusions. These findinqs and conclusions must be forwarded to the assemblV for adoption, rejection, or modification and issuance of a final order or decision by the assemblV• 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 maV 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 bV 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 anV time before the hearing. If the finance director has reason to believe that collection of the total amount due might jeopardize 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 maV 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 thirty (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 bV this chapter, including information regarding transfers. The records must include an accounting that inventories live plants, trimmings, and anV 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 21 Version 2 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 1. An invoice, sales receipt or other record memorializing the transfer of marijuana 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 subject to the chapter shall keep such other documents and records as the finance director prescribes. D. The finance director may, after twenty-four (24) hour notice and 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 anV person except the licensee, 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 analysis 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 Ordinance No. FY2017-27 Page 9 of 21 Version 2 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 rtzrz�:m..... r m trrr 11111111111111111111A 11111 10 5.02.010 Prohibitions. 5.02.020 Cooperation with State Marijuana Control Board. 5.02.030 State license renewal procedure. 5.02.040 New state license and transfer procedure. 5.02.050 Borough license for marijuana businesses—general. 5.02.060 Issuance of borough license for marijuana businesses. 5.02.070 Renewal of borough license for marijuana businesses. 5.02.080 Ownership change and transfer of borough license for marijuana businesses. 5.02.090 Suspension or revocation of license. 5.02.100 Fees. 5.02.010 Prohibitions. The commercial manufacture or sale of edible marijuana products as defined 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 Kodiak Police Department and Alaska 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 21 Version 2 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 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 maV express their desires as to whether or not the assembly should approve or protest the transfer or issuance of the mariivana business license; and 4. The notice of intent to establish a new mariivana 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 anV 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 willfullV withheld information or if there is reasonable Kodiak Island Borough, Alaska Deletion – Red, Strikeout Insertion – Bold, Blue, Underlined Ordinance No. FY2017-27 Page 11 of 21 Version 2 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 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. Mariivana 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 bV 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 Mariivana Control Board; 4. Provide a copy of the certificate(s) of registration for marijuana -specific taxes imposed in applicable jurisdictions; and 5. Pay licensing fee per KIBC 5.02.100. 5.02.070 Renewal of borough license for marijuana businesses. A. Marijuana businesses are required to renew their marijuana business license annually with the finance department. In order to renew their license a marijuana business must: 1. Provide a copy of the State of Alaska mariivana business license renewal issued bV the Alaska Marijuana Control Board; and 2. PaV license renewal fee per KIBC 5.02.100. B. Marijuana business license renewal must occur prior to August 31 each calendar Vear. 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) may be made on a case bV case basis, based on the status of the mariivana business' license renewal application with the Alaska Marijuana Control Board. 5.02.080 Ownership change and transfer of borough license for marijuana businesses. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 12 of 21 Version 2 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 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 maV 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 paV tax due or to file a return as required bV KIBC 3.70.050 and will initiate license suspension or revocation proceedings bV 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 Vear, 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 Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 13 of 21 Version 2 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 617 618 619 620 621 622 17.15.120 Buffers for marijuana businesses In addition to any buffers imposed by anv 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. B, Contract zoning; 3. G Planning and zoning commission review; 4. B: Variance; and 5. € Zoning change;.: and 6. 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 21 Version 2 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 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 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 anV 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 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. "Marijuana manufacturing facility" means a legally licensed commercial marijuana product manufacturing facility as defined bV 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 marijuana store as defined by state law. A mariivana 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 certifV the safetV and potency of marijuana. "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 17.50.020 Permitted principal uses and structures. The following land uses and activities are permitted in the conservation district: A. All of the permitted principal uses and structures in the NU natural use zoning district; B. Agricultural activities and related structures, including commercial livestock grazing; with a written conservation plan between the land owner or lease holder and the Kodiak soil and water conservation district, in those areas historically established for livestock grazing consisting of Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 15 of 21 Version 2 667 668 669 670 671 672 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 708 709 710 711 the northeast portion of Kodiak Island east of a line drawn from Crag Point on Sharatin Bay to the mouth of Wild Creek in Ugak Bay, and including Chirikof Island and Sitkinak Island; C. Commercial fishing activities and related structures, including mariculture activities and related structures; D. Commercial guiding and/or outfitting activities (e.g., hunting, fishing, photography, etc.) and related structures (e.g., lodges) containing provisions for no more than six clients; E. Parks; F. Recreational activities (including recreational mining activities); G. Single-family dwellings/recreational cabins and associated home occupations; H. Timber harvesting activities and transportation and utility facilities constructed in support of permitted timber harvesting activities; I. Churches; J. Bed and breakfasts; K. Vacation homes; and L. Hoop houses; M. Marijuana cultivation, limited; and N. Marihuana cultivation, standard (lots equal to or greater than 5 acres). 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, standard (lots less 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; and B. Recreational vehicle parks C. Marijuana cultivation, limited (lots equal to or greater than 2 acres). Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 16 of 21 Version 2 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 Chapter 17.70 RR1 — RURAL RESIDENTIAL ONE DISTRICT 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. Fireworks stands; and B. Recreational vehicle parks; and C. Marijuana cultivation. limited (lots equal to or greater than 40,000 square feet). 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; 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; Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 17 of 21 Version 2 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 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. Mariivana retail stores; GG. Marijuana testing facilities; and HH. Marijuana manufacturing 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._Marjuana cultivation, limited; and G. Marijuana cultivation, standard. 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; 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; Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 18 of 21 Version 2 802 803 804 805 806 807 808 809 810 811 812 813 814 815 816 817 818 819 820 821 822 823 824 825 826 827 828 829 830 831 832 833 834 835 836 837 838 839 840 841 842 843 844 845 846 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; aad FF. Warehousing within an enclosed structure -.1 GG. Marijuana cultivation, limited; HH. Marijuana cultivation, standard; II. Marijuana manufacturing facilities; JJ. Marijuana retail stores; and KK. Marijuana 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.); 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 Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 19 of 21 Version 2 K. Theaters, auditoriums, community halls..-; L. Marijuana manufacturing facilities M. Marijuana retail stores; and N. Marijuana testing facilities. 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; and J. Marijuana cultivation, standard. 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); 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 manufacturinq facilities; N. Marijuana retail stores; and O. Marijuana testing facilities. Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined Ordinance No. FY2017-27 Page 20 of 21 Version 2 892 893 894 895 896 897 898 899 900 901 902 903 904 905 906 907 908 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 TWENTIETH DAY OF APRIL, 2017. KODIAK ISLAND BOROUGH A. Rohrer, Mayor VOTES: Ayes: Crow, LeDoux, Skinner, Smiley Noes: Symmons, Townsend Absent: Van Daele Kodiak Island Borough, Alaska Deletion — Red, Strikeout Insertion — Bold, Blue, Underlined ATTEST: Nova M. Javier, MMC, Ordinance No. FY2017-27 Page 21 of 21 Version 2