Mayor Vetoes Commercial Pot Moratorium

UPDATE ON THIS MAY 16, 2016

Mayor Vern Halter issued a veto on this ordinance. There is also a motion to reconsider this ordinance on the agenda for tomorrow night, May 17, in the Assembly Chambers at 350 E. Dahlia Ave. in Palmer. Here is the Assembly agenda:

The veto is not in effect. The Assembly will consider it tomorrow night after the motion to reconsider by Assembly Member Matthew Beck.

Here is the Mayor's statement.

I hereby Veto Ordinance Serial No. 16-046- The Borough's regulations on marijuana are still being considered,   and according to testimony from Borough Staff at the public hearing on this Ordinance,   are months away from finalization.  In addition-

It is my belief the State of Alaska should regulate sales and the Mat Su Borough should be able to tax marijuana sales much the same as regulation of alcohol.  We are a large and diverse Borough outside our cities.  I have no problem with the cities regulating within their borders but it is better to allow the State to regulate outside our Cities and for the Borough to tax and receive revenue from the sales.  We have no police power and our Code compliance division is  over worked already.  To add Codes on marijuana will be difficult for us to enforce. From the very beginning our overly large Borough Marijuana Committee has made the process cumbersome and confusing.  The upcoming vote within the Borough can still take place this October.
Vern Halter
Mayor, Mat Su Borough

May 6, 2016 Moratorium release below

After listening to lengthy testimony from both sides of the marijuana issue at several meetings, the Matanuska-Susitna Borough Assembly adopted a moratorium on marijuana establishments this week. The moratorium expires on Oct. 19. The prohibition on one aspect of the industry, the grow facilities, expires earlier on Aug. 17, due to an amendment by Assembly Member Jim Sykes. Fast approaching is a citizen's initiative on the Oct. 4 ballot asking voters whether they want to prohibit marijuana businesses in the Borough.

The moratorium would prohibit the processing of applications for marijuana establishments and the operation of marijuana establishments. A recent voter-approved statewide proposition made the commercialization of marijuana legal in Alaska. The Borough is trying to create local rules.

The Assembly’s newly-adopted ordinance states “implementation dates of State of Alaska licensing rules are still unknown, and public concern has been raised about enacting Borough regulations prior to consideration of a marijuana ballot initiative on Oct. 4, 2016."

A local initiative to prohibit marijuana businesses was certified to be put on the ballot. Mat-Su voters will decide whether to prohibit marijuana establishments except industrial hemp.

The 17-member Marijuana Advisory Committee was appointed by former Mayor Larry DeVilbiss last year and delivered its first draft of potential land use regulations in January. The Planning Commission reviewed the draft and made recommendations. Staff created amendments from the Planning Commission’s recommendations. Those will be reviewed by the MAC on May 19, 6 pm in Assembly chambers. The Planning Commission meets again on the subject on May 16, 6 pm Assembly Chambers, for a public hearing on amendments to an ordinance for a permit process for marijuana facilities. The Commission could have a resolution adopted by June.

This week, the moratorium passed unanimously. Assembly Member George McKee asked for a reconsideration of the vote. The reconsideration failed with members McKee and Randall Kowalke voting yes.

However, after the meeting, Deputy Mayor Matthew Beck asked for a second reconsideration. The vote to reconsider will be on the May 17, regular Assembly agenda.

Read the moratorium legislation here. 

The citizen-created initiative seeking to prohibit commercial marijuana is attached here.

 Listen to the Assembly discussion of the vote posted here. Below are excerpts.

"This isn't about me overriding the government, overriding the folks who voted for this. This is about me wanting a sound plan to go forward, because can you imagine the hell we're going to have if we just jump into this." —Assembly Member Randall Kowalke 

"I will not support anything that does not protect residential property owners from businesses being located within residential subdivisions. We don't have zoning like Anchorage does. It's a little more difficult.... I don't think the moratorium...If a delay by 30 to 60 days in your business plan is a huge financial crisis in your business plan, as a business person, I would question the viability going forward...so when the election happens I think it will actually benefit the industry to know what those rules are," —Steve Colligan

"There are two things that have to be in there for total public safety, and if they’re not in there none of you should be in business. Those things are a dram shop liablity law. If you sell marijuana and somebody leaves your place and they have an accident and hurt somebody you should be as liable as the person who creates the accident. Just like a bar. Until that’s in there I won’t support anything. Secondly, people cite the state of Washington as the thing to look at, well look at it, the state of Washington tests you for dui and for pot, 5 nanograms of THC per milliliter of blood … if it’s within two hours after testing you go directly to the crowbar hotel and you lose your license and you go to jail.” —Assembly Member George McKee

“I trust that MAC is going to take a look at dialogue and take a look at this issue and come back with good recommendations … I understand wanting to get into business and wanting to move ahead and having to take a step back, yeah roll your head and do what you want, but (my wife and I) we lost a lot of money (in a different industry).. I understand the struggles with that. I also am compassionate toward the need for medical marijuana. But at the same time… this is going to give us time to come forward with a good plan.” —Deputy Mayor Matthew Beck

“I think we made a good faith effort to get some rules in place…the first permits are not going to be able to go into business probably until Sept. (due to State timeline) so I will offer an amendment. It calls for an early sunset for cultivation facilities, an early sunset for the moratorium as it applies for marijuana cultivation facilities. This moratorium shall expire on Aug. 17, 2016. This shall expire Oct. 19…”

—Assembly Member Jim Sykes

Photo by Patty Sullivan. Some 200 people filled the chambers, many of them also were there for a proposed gravel operation in Big Lake.

For more information on marijuana regulations call Alex Strawn at 861-7854.