A. 
The purpose of this chapter is to provide for the municipal regulation of marijuana and marijuana establishments as allowed by state law. This chapter and the regulations related to marijuana establishments herein are adopted pursuant to the express authority granted by AS 17.38.210. This chapter and the regulations herein are intended to allow the City to regulate marijuana and marijuana establishments within the broadest range of municipal control contemplated by state statute.
B. 
Local Control of Marijuana Establishments. The City may by ordinance or resolution exercise local control of marijuana establishments within the broadest range of municipal control contemplated by state law. In addition to other types of local control, the City may:
1. 
Prohibit the operation of all or any type of marijuana establishments;
2. 
Regulate marijuana establishments in a manner more restrictive than state law;
3. 
Establish a local license procedure for marijuana establishments;
4. 
Designate a local regulatory authority which will:
a. 
Receive half of any fee paid to the state as part of an application to operate a marijuana establishment within the City;
b. 
Receive a copy of each state license application and provide input to the state regarding such application; and
c. 
Process applications for City licenses to operate a marijuana establishment within the City and to issue licenses in the event that the state authority fails to process applications in accordance with AS 17.38.090 and 17.38.100;
5. 
Establish a schedule of annual licensing fees;
6. 
Regulate the time and manner of operation of marijuana establishments;
7. 
Regulate the number of marijuana establishments within the City;
8. 
Regulate the manner in which marijuana and marijuana products may be displayed by a retail marijuana store; and
9. 
Establish civil penalties for violations of this chapter.
C. 
The City Council after public hearing shall determine whether to protest or recommend with conditions the issuance, renewal or transfer of a marijuana establishment license application and shall consider the following factors it believes are pertinent. Such factors shall include, but are not limited to:
1. 
Review of referrals under HMC § 5.10.050; and
2. 
The concentration of other licenses of the same and other types in the area; and
3. 
Any other factors the City Council determines are relevant to a particular application, including a reasonable expectation that the applicant will exercise the license for the duration of the term of the license.
(Ord. 16-08 § 5, 2016)
"Code"
means the Houston Municipal Code (HMC).
"Consume"
means, in all conjugate forms, the act of ingesting, inhaling, or otherwise introducing marijuana into the human body.
"Local regulatory authority"
means the office or entity designated to process marijuana establishment applications by a local government.
"Marijuana"
has the same meaning as contained in AS 17.38.900(7).
"Marijuana cultivation facility"
has the same meaning as contained in AS 17.38.900(9).
"Marijuana establishment"
means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store.
"Marijuana product manufacturing facility"
has the same meaning as contained in AS 17.38.900(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.
"Marijuana retail store"
has the same meaning as "retail marijuana store" contained in AS 17.38.900(15).
"Marijuana testing facility"
has the same meaning as contained in AS 17.38.900(13).
"Public,"
as used in this chapter, means a place to which the public or a substantial group of persons has access and includes highways, rivers, lakes, transportation facilities, schools, places of amusement or business, parks, playgrounds, prisons, and hallways, lobbies and other parts of apartment houses and hotels not constituting rooms or apartments designated for actual residence. Notwithstanding the foregoing, a location with proper licensure in place and that is in compliance with applicable state laws and regulations, City ordinances, including City licensure requirements, if any, and that is operating within the restrictions of such law and licensure is not a public place.
(Ord. 16-08 § 5, 2016)
It is unlawful for any person to operate a marijuana establishment in the City without obtaining a local business license to operate. A valid license from the state of Alaska is required as provided by AS 17.38 prior to operation.
All applications for a City business license to operate a marijuana establishment shall include:
A. 
A legal description of the property involved; and
B. 
Documentation of property ownership; and
C. 
A written statement from the property owner authorizing the proposed marijuana establishment use, if the applicant is not the property owner; and
D. 
A detailed site plan that includes a diagram of the proposed licensed premises showing all entrances and boundaries of the premises.
(Ord. 16-08 § 5, 2016)
Upon receiving notice from the Marijuana Control Board of an application for the issuance, renewal, transfer of location or transfer to another person of a marijuana establishment location in the City, including without limitation an application to transfer a license to a license location in the City under AS 17.38, the City shall refer the application for review:
A. 
By the Public Works Department to determine whether any structure, or use of land or structures at the license location does not conform to HMC Title 10, applicable platting regulations, including recorded subdivision reservations, restrictions and covenants, or the terms and conditions of any rezone, planning commission approval, or administrative approval granted for the license location. The Public Works Department shall notify the applicant in writing of any nonconformity that it finds. In response to this notice, the applicant shall either:
1. 
Provide evidence satisfactory to the Mayor that the nonconformity has been corrected; or
2. 
Provide a plan for correction of the non-conformity satisfactory to the Mayor, with security satisfactory to the Mayor for the performance of the plan.
B. 
By the Clerk's office to determine whether the licensee or license transfer is delinquent in paying to the City any tax, assessment, business license fee, or other fee or charge, or to the Matanuska-Susitna Borough any real property tax, for the business that operates, or will operate, under the marijuana establishment license. The City Clerk shall notify the applicant in writing of any delinquency that it finds. In response to the notice, the applicant shall either:
1. 
Provide evidence satisfactory to the Mayor that the nonconformity has been corrected; or
2. 
Provide a plan for correction of the non-conformity satisfactory to the Mayor, with security satisfactory to the Mayor for the performance of the plan.
C. 
By the Police Department or Mayor to determine whether, in the opinion of the Police Chief or Mayor, there has been an excessive number of convictions or arrests for unlawful activity at the licensed premises, police reports at the licensed premises, or police dispatches to the licensed premises, or violations of HMC Title 8. The Police Department or the Mayor shall notify the applicant in writing of any adverse finding under this subsection.
D. 
By the Fire Chief to determine whether, in the opinion of the Fire Chief, there are conditions present that would endanger the public or responders in the event of an emergency, or there has been an excessive number of responses to the property due to false alarms, illegal burning or unsafe burn practices. The Fire Chief shall notify the applicant in writing of any adverse finding under this subsection.
(Ord. 16-08 § 5, 2016; Ord. 17-03 § 5, 2017)
A. 
Before taking action on a marijuana establishment application under this section, the Mayor shall provide for a public hearing before the City Council. Within 15 business days after the referrals under HMC § 5.10.050, the Mayor shall schedule each marijuana establishment license application for consideration by the City Council at its next City Council meeting and send written notice to the applicant. The notice shall include the following information:
1. 
The date and time of the meeting at which the Council will consider the application;
2. 
A statement that the applicant may appear before the Council at the meeting to defend the application; and
3. 
A summary of any unresolved findings adverse to the marijuana establishment application that have resulted from the referrals under HMC § 5.10.050.
B. 
During the public hearing, the City Council shall provide the applicant an opportunity to make a presentation in defense of the application.
C. 
The City Council after public hearing shall determine whether to protest or recommend with conditions, the issuance, renewal or transfer of a marijuana establishment license application and shall consider the following factors it believes are pertinent. Such factors shall include, but are not limited to:
1. 
Review of referrals under HMC § 5.10.050; and
2. 
The concentration of other licenses of the same and other types in the area; and
3. 
Any other factors the City Council determines is relevant to a particular application, including a reasonable expectation that the applicant will exercise the license for the duration of the term of the license.
D. 
For a marijuana establishment application that is subject to protest by the City under 3 AAC 306.060:
1. 
After considering the application and public hearing the City Council may decide to:
a. 
Protest the application under 3 AAC 306.060;
b. 
Recommend conditions on which the application should be granted under 3 AAC 306.060; or
c. 
Take no action on the application.
2. 
If the City Council protests an application or recommends conditions on which the application should be granted, the City Council shall state on the record the reasons for its decision, and the Mayor shall notify the Board and the applicant in writing of the decision of the Council and the reasons therefor.
3. 
If the City Council finds that the basis for its decision to protest an application, or to recommend conditions on which an application should be granted, no longer exists, the City Council may rescind its decision and direct the Mayor to notify the Board and the applicant of its rescission.
E. 
For one or more applications to relocate a marijuana establishment license in the City under 3 AAC 306.060:
1. 
After considering the applications, the City Council may decide to:
a. 
Approve one or more of the applications with or without conditions; or
b. 
Deny one or more applications.
2. 
The Mayor shall notify the Board, the Matanuska-Susitna Borough, and the applicants in writing of the decision of the Council and the reasons therefor.
(Ord. 16-08 § 5, 2016)
A licensed marijuana retail store shall not:
A. 
Conduct business or allow a consumer to access the retail marijuana store's licensed premises between the hours of 5:00 a.m. and 8:00 a.m. each day;
B. 
Allow a person to consume marijuana or a marijuana product on the retail marijuana store's licensed premises, except as provided in 3 AAC 306.305(a)(4);
C. 
Offer or deliver to a consumer, as a marketing promotion or for any other reason:
1. 
Free marijuana or marijuana product, including a sample; or
2. 
Alcoholic beverages, free or for compensation.
(Ord. 16-08 § 5, 2016)
A. 
Remedies and penalties for violations of this chapter are as provided in Chapter 1.16 HMC.
B. 
For violations of this chapter, and notwithstanding any other available remedies or penalties, the City may bring a civil action to:
1. 
Enjoin a violation of this chapter. On application for injunctive relief and a finding of a violation or threatened violation, the Superior Court shall enjoin the violation.
2. 
Recover a civil penalty of $250.00 for each violation of this chapter.
C. 
Each act or omission in violation of this chapter, and each day in which the act or omission occurs, is a separate violation.
D. 
All remedies for violations of this chapter are cumulative and are in addition to any others existing at law or in equity.
(Ord. 16-08 § 5, 2016)