Loading...
FY2026-16 Amending Kodiak Island Borough Code Chapter 5.01 Regarding Liquor Licenses1 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 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2026-16 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH AMENDING KODIAK ISLAND BOROUGH CODE CHAPTER 5.01 REGARDING LIQUOR LICENSES TO CLARIFY THE METHODS AND BASIS FOR BOROUGH PROTESTS FOR ISSUANCE OF A NEW LICENSE, RENEWAL OF AN EXISTING LICENSE, TRANSFER OF AN EXISTING LICENSE, AND REVIEW OF THE CONTINUED OPERATION OF A LICENSE WHEREAS, the current language in Alaska Statutes Title 4 and 3 AAC 305 regarding notice of pending liquor license applications and the reasons a local governing body may protest a license action differs from the terms used in Borough Code provisions for procedures concerning alcohol licenses issued by the State of Alaska; and WHEREAS, the Assembly desires to clarify the procedure and better identify the reasons that may cause the local governing body to protest a liquor license issuance, renewal, transfer of location or transfer of ownership; and WHEREAS, the Assembly finds that the borough's interest may also be protected by incorporating provisions in the code that address the evaluation of the continued operation of ongoing licenses or endorsements during the second year of the biennial license period; and WHEREAS, this new code proposes inclusion of a necessary step to allow an applicant or licensee a reasonable opportunity to defend an application before a meeting of the local governing body per the Alaska Administrative Code. 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: That Section 5.01.010 of the Kodiak Island Borough Code of Ordinances, Cooperation with State of Alaska Alcoholic Beverage Control (ABC) Board, is amended as follows: 5.01.010 Cooperation with State of Alaska ABC Board. Board fer the state of Alaska On determining the fitness Of app''GaRts requesting a transfe r8Rewal or iSS ianno of a new liquor linonse It is declared the oolicv of the borouah to cooperate with and aid the ABC Board in determinin the fitness of applicants requesting a transfer, renewal, or issuance of a new liquor license. This includes evaluatina the onaoina operation of licenses or endorsements durina the second vear of their biennial licensing period Section 3: That Section 5.01.020 of the Kodiak Island Borough Code of Ordinances, License Renewal Procedure, is repealed and replaced to read as follows: Ordinance No. FY2026-16 Page 1 of 5 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 90 91 92 93 94 5.01.020 License Renewal Procedure. A. When the clerk receives notice from the Alcohol Marijuana Control Office (AMCO) of a license renewal application, the clerk shall review the application and identify any basis for potential protest for one or more of the reasons listed in this subsection A. If a basis for protest is apparent, the clerk shall forward the application to the assembly and the assembly shall determine whether to protest the application on the grounds that it is not in the public's best interest based on the following factors: 1. Whether the business has or is operating with a valid zoning permit; 2. Whether the business operated under the license or endorsement is, or persons named on the application are, delinquent in an amount totaling $1,000 or more in the payment of any or all of the following: a. Property taxes or local improvement district assessments; penalties or interest on real or personal property related to conduct of the business operated under the license or endorsement; and b. Charges for a borough service provided for the benefit of the business conducted under the license or endorsement; 3. The character and public interests of the surrounding neighborhood; 4. The comments and objections, if any, of the residents and property owners of the surrounding area; 5. Whether the surrounding area experiences an unacceptable rate of crime or accidents in which alcohol is a contributing factor; 6. The actual and potential law enforcement problems of the business conducted under the license or endorsement. includina the proximity of the premises to law enforcement stations and patrols; 7. The history of convictions of persons named on the application for any felony or any criminal violation of State or local statute or regulation involving use or abuse of alcohol or a controlled substance; and 8. Any other factors determined to be relevant to the public interest. B. If the review of the criteria in subsection A shows no basis for protest, the clerk shall advise the assembly that there is no apparent basis for protest and advise the ABC Board of the borough's nonobjection to the license renewal. C. If the review shows any evidence which could support a protest, with or without conditions, the procedure below shall be followed: 1. The clerk shall promptly advertise and place the matter as a public hearing item on a meeting agenda in order to comply with the 60 -day protest period. Following the close of the public hearing, the assembly shall determine by adopting a motion whether a protest is to be lodged with the ABC Board, and it shall state the assembly's reasons for the protest. Ordinance No. FY2026-16 Page 2 of 5 95 2. The applicant shall be notified of such decision and shall be allowed a reasonable 96 opportunity to defend their application before a meeting of the assembly. 97 3. The assembly's decision to protest the application shall stand unless a majority of the 98 assembly votes to withdraw the protest. 99 4. Any protest must state the assembly's reasons for the protest and must be filed with the 100 ABC Board and copied to the applicant. A protest must be received by the ABC Board 101 within 60 days of the borough having received notice of the application. 102 D. If a protest is lodged, the manager and attorney are authorized to use any document or 103 evidence necessary to effectively advance the position of the borough at any hearing before 104 the ABC Board. 105 Section 4: That Section 5.01.030 of the Kodiak Island Borough Code of Ordinances, New License 106 and Transfer Procedure, is repealed and replaced to read as follows. 107 5.01 030 New lirenso and transfer nrnror uro. 108 A. IJPE)R F8Geipt of notice from the AIGE)he!'G Beverage Control Board ef the board's FeGempt 109 ef aR appliGatien er Intent tG appreve the traRSfeF er issuaRGe of a new liquoF IiGeRSe: 110 111 112 I-ni -er I-nense• 113 2. The Glerk shall GheGk with the state treepers OR the Rumber of treuble reperts at the 114 plane of b -sipess• - 115 3. The GleFk shall duly advei4ise and plaGe the matteF of the appliGation UPOR the agenda 116 for the next meeting of the assembly On order that Gitizens may express their desires 117 as to whether eF not the assembly should approve or protest the transfer or 118 of theI-ol� GeTnrGe,anQ 119 120 IiGense shall he mailed to eanh IandE) /per within 1,500 feet of the prnpesed IOGatlnn 121 by the Glerk. A transfer from GRe PeFSOR to another of a liquer InGense, even Of the 122 IGGatien stays the same, shall be GGnsidered a request for a new 1mquGF InGense by44e 123 Kedmak island Borough. The app''GaRt shall pay a fee based UPOR the GGSt ef the R 124 anrd appliratinn proressino rests to the here--oh 125 B. The is he ledged with the 4lGehelir Beverage Control Board If a protest is le doert the 126 ro tG�c-rvuged�rrcrrzrrcTTrcvr-rvrr�ve�F , 127 128 129 Beverage G0RtFGI Board-. 130 131 5.01.030 New license and transfer procedure 132 A. When the clerk receives notice from the AMCO of a new license or transfer application, the 133 assembly shall determine whether to protest the application on the grounds that it is not in the 134 public's best interest based on the following factors: 135 1. Whether the business or endorsement has, or is eligible for a zoning permit; 136 2. Whether the business operated under the license or endorsement is, or persons named 137 on the application are, delinquent in an amount totaling $1,000 or more in the payment of 138 any or all of the following: 139 c. Property taxes or local improvement district assessments; penalties or interest on real 140 or personal property related to conduct of the business operated under the license or 141 endorsement; and 142 d. Charges for a borough service provided for the benefit of the business conducted 143 under the license or endorsement; 144 3. The character and oublic interests of the surroundina neiahborhood: Ordinance No. FY2026-16 Page 3 of 5 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 4. The comments and objections, if any, of the residents and property owners of the surrounding area; 5. Whether the surrounding area experiences an unacceptable rate of crime or accidents in which alcohol is a contributing factor; 6. The actual and potential law enforcement problems of the business conducted under the license or endorsement, including the proximity of the premises to law enforcement stations and patrols; 7. The history of convictions of persons named on the application for any felony or any criminal violation of State or local statute or regulation involving use or abuse of alcohol or a controlled substance; and 8. Any other factors determined to be relevant to the public interest. B. The clerk shall promptly advertise and place the matter as a public hearing item on a meeting agenda in order to comply with the 60 -day protest period, allowing citizens to express their desires as to whether or not the assembly should voice non -protest or lodge a protest for the issuance or transfer of the liquor license or endorsement. C. The notice of intent to establish a new liquor license or endorsement, or transfer of location or transfer of ownership of an existing license or endorsement, shall be mailed to each landowner within 1,500 feet of the proposed new location by the clerk. The applicant shall pay a fee based upon the cost of the notice and application processing costs to the borough. D. Following the close of the public hearing, the assembly shall determine by adopting a motion whether a protest is to be lodged with the ABC Board, and it shall state the assembly's reasons for the protest. E. The applicant shall be notified of such decision and shall be allowed a reasonable opportunity to defend their application before a meeting of the assembly. F. The assembly's decision to protest the application shall stand unless a majority of the assembly votes to withdraw the protest. G. Any protest must state the assembly's reasons for the protest and must be filed with the ABC Board and copied to the applicant. A protest must be received by the ABC Board within 60 days of the borough having received notice of the application. E. 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 ABC Board. Section 5: That Section 5.01.040 of the Kodiak Island Borough Code of Ordinances, New License and Transfer Procedure, is hereby incorporated as follows. 5.01.040 Protests of continued oaeration of a license. A. The clerk shall initiate an investiaation reaardina the onaoina oaeration of licenses that are entering the second year of their biennial licensing period. If the clerk's investigation identifies any basis for potential protest for one or more of the reasons listed in this subsection, the clerk shall forward the license to the assembly for review and the assembly shall determine whether to protest the license on the grounds that it is not in the public's best interest based on the following factors: 1. Whether the business operated under the license or endorsement has, or is operating with a valid zoning permit; 9. Whether the business operated under the license or endorsement is, or persons named on the license are, delinquent in an amount totaling $1,000 or more in the payment of any or all of the following: a. Property taxes or local improvement district assessments; penalties or interest on real or personal property related to conduct of the business operated under the license or endorsement; Ordinance No. FY2026-16 Page 4 of 5 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 b. Charges for a borough service provided for the benefit of the business conducted under the license or endorsement; 2. The character and public interests of the surrounding neighborhood; 3. The comments and objections, if any, of the residents and property owners of the surrounding area; 4. Whether the surrounding area experiences an unacceptable rate of crime or accidents in which alcohol is a contributing factor; 5. The actual and potential law enforcement problems of the business conducted under the license or endorsement, including the proximity of the premises to law enforcement stations and patrols; 6. The history of convictions of persons named on the license for any felony or any criminal violation of State or local statute or regulation involving use or abuse of alcohol or a controlled substance; and 7. Any other factors determined to be relevant to the public interest. B. If the review of the criteria in subsection A shows any evidence which could support a protest, with or without conditions, the procedure below shall be followed: 1. The clerk shall duly advertise and place the matter as a public hearing item on the agenda. Following the close of the public hearing, the assembly shall determine by motion whether a protest is to be lodged with the ABC Board and it shall state the basis of the protest. 2. The licensee shall be notified of such decision and shall be allowed a reasonable opportunity to defend their application before a meeting of the assembly. 3. The assembly's decision to protest the license shall stand unless a majority of the assembly votes to withdraw the protest. 4. Any protest must state the assembly's reasons for the protest and must be filed with the ABC Board and copied to the applicant. A protest must be received by the ABC Board by January 31 of the second year of the license. C. 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 ABC Board. Effective Date: This ordinance takes effect upon adoption. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS TWENTY SECOND DAY OF JANUARY, 2026 KODIAK ISLAND BOROUGH /4 4 r,`Mriffin, .�• Introduced by: KIB Assembly First reading: 12/18/2025 Second reading/public hearing: 01/22/2026 ATTEST: 16 M, Qa" Nova M. Javier, MMC, Bor gh Clerk VOTES: Ayes: Gardner, Johnson, Roberts, Smiley, Whiteside, Woods, and Ames Noes: None Ordinance No. FY2026-16 Page 5 of 5