[Adopted 8-9-2021 by Ord. No. 21-05. Amendments noted where applicable.]
The purpose of this title is to set forth procedures and standards for the issuance of local licenses for marijuana businesses and medical marijuana registered caregiver home establishments in order to protect public health, safety and welfare.
As used in this title, the terms below are defined as indicated. All other terms used in this title, if not defined below, are the same definition as set forth in 22 M.R.S.A. § 2422 (for medical marijuana businesses), 28-B M.R.S.A. § 102 (for adult use marijuana businesses), or the Land Use and Development Code, Title 16 of the Kittery Town Code.
APPLICANT
A person who has submitted an application for licensure as a marijuana business pursuant to this chapter.
LICENSED PREMISES
The premises specified in an application for a license pursuant to this title or within a license issued pursuant to this title.
LICENSEE
A person licensed pursuant to this title.
LICENSING AUTHORITY
The Town Council or Town Manager as designated in this title to be the issuer of the particular type of marijuana business license.
MARIJUANA BUSINESS
An adult use marijuana store, medical marijuana registered dispensary, medical marijuana caregiver retail store, marijuana cultivation facility, marijuana manufacturing facility, or marijuana testing facility, all as defined in the Town of Kittery Land Use Ordinance.[1]
MARIJUANA RETAIL STORE
A medical marijuana registered dispensary, medical marijuana caregiver retail store or an adult use marijuana store.
MEDICAL MARIJUANA REGISTERED CAREGIVER HOME ESTABLISHMENT
A permitted medical marijuana registered caregiver business operating on the property of a dwelling unit serving as a primary residence of the registered caregiver.
OWNER
A person whose beneficial interest in a marijuana business is such that the person bears risk of loss other than as an insurer, has an opportunity to gain profit from the operation or sale of the marijuana business and/or has a controlling interest in the marijuana business.
PERSON
A natural person, partnership, association, company, corporation, limited-liability company or organization, or a manager, agent, owner, director, servant, officer or employee thereof. "Person" does not include any governmental organization.
PREMISES
The physical location at which a marijuana business is to conduct its business.
STATE LICENSE
Any license issued by the state licensing authority.
STATE LICENSING AUTHORITY
The authority created or designated by the state for the purpose of regulating and controlling licensing for marijuana businesses.
TOWN MANAGER
The Town Manager of the Town of Kittery or designee.
[1]
Editor's Note: See Ch. 16.4, Land Use Zone Regulations.
A marijuana business or medical marijuana registered caregiver home establishment may not begin or continue operations unless it has and is in possession of a license issued pursuant to this title. Marijuana registered caregivers that hold an approved land use permit (major home occupation approval) and/or are operating as of the effective date of this section must submit a completed application within 30 days of the effective date, and have a grace period of 60 days after the effective date to receive a license, which may be extended by order of the Council if justified due to the anticipated time line of the review process.
All medical marijuana registered caregiver home establishment license applications, whether new or renewal, must be reviewed and may be approved by the Town Manager. All other initial license applications are to be reviewed and may be approved by the Town Council after public hearing. The Town Manager is the licensing authority for renewal licenses, as specified in § 5.11.5E.
The review procedures described below are the same for initial license applications as well as renewals, unless otherwise indicated. In reviewing license applications, the licensing authority and any consulting Town officials may consider the approval standards under this title as well as other applicable local, state or federal laws and, for license renewals, the licensee's record of compliance with the same.
A. 
Application. License applications must be submitted to the Town in writing using a form prepared by the Town for the purpose and must include all information required by this title and by the form. Applications for initial licensure of marijuana retail stores may not be accepted until the applicant has been precertified in accordance with § 5.11.9C.
B. 
Initial review. The Town Manager is responsible for the initial investigation of the application to ensure compliance with the requirements of this title and to obtain recommendations from other Town officials as required.
C. 
License conditions. The licensing authority has the authority to impose any conditions on a license that may be reasonably necessary to ensure compliance with the requirements of this title or to address concerns about operations. Failure of any licensee to comply with such conditions are considered a violation of the license and of this title.
D. 
Staff review. No license may be granted by the licensing authority until the Town Manager, Police Chief, Fire Chief, Code Enforcement Officer, and other staff as deemed appropriate by the Town Manager, have all made positive recommendations regarding the applicant's ability to comply with this title or any other applicable Town ordinance, Planning Board conditions of approval, or state or federal law enforced by such officials.
E. 
Renewal. For renewal licenses, the application, fee and review process are the same as for initial licenses except that the Town Manager is the licensing authority. If any reviewing staff member finds that new conditions should be attached to the renewal license or that the renewal license should be denied, the renewal application must be forwarded to the Town Council for final action. Renewal licenses for marijuana retail stores may be granted by the Town Manager only upon a finding that the store has in the past license term been operating in accordance with this title as well as with the store's previously submitted operations plan.
F. 
Type of license. Licenses may be approved only for the type(s) of use identified in the application. A licensee who intends to expand or convert the licensed premises to a different type of use that is not specifically approved in a license must obtain a new license for that use.
G. 
State approvals. Any licensee that is required to obtain approval from the State of Maine will provide the Town copies of all necessary approvals prior to operating the licensed business.
H. 
Inspection. Any licensee must, prior to operating the licensed business, contact the Town to request an inspection to determine the compliance, as built, with the requirements of this title, any conditions of licensure, and the submitted operations plan (if applicable). Any municipal official with authority to make recommendations, grant licenses or enforce this or other municipal ordinances regarding marijuana businesses or medical marijuana registered caregiver home establishments has authority to enter the premises of an applicant or licensee without notice during operating hours to make any inspection reasonably necessary to ensure continued compliance with all applicable Town ordinances.
I. 
License term. Each license issued under this title is valid for the term of license granted by the state license authority ("the license year"), or otherwise for one year from the date of issuance. Applications for renewal licenses should be submitted no fewer than 60 days prior to expiration of the existing term to allow for timely processing. Any licensee who fails to apply for a renewal license prior to expiration of the existing term does not have authority to operate until a renewal license is granted. A late fee of 10% of the total license fee will be assessed to applications submitted one to 30 days past expiration of the existing license, and 20% will be assessed for applications submitted thereafter. Any marijuana retail store which fails to obtain a renewal license within 30 days following expiration of the existing term forfeits its license, unless the applicant timely submitted the application and the delay is due to circumstances not within the applicant's control.
J. 
Forfeiture. A license is forfeited if the licensee:
(1) 
Fails to obtain a renewal license within 30 days of expiration of an existing license;
(2) 
Makes any other active use of the licensed premises other than for the licensed business operation; or
(3) 
Is not actively operating the licensed business for a period exceeding six consecutive months, except that the licensing authority may, upon written request from the licensee, allow for a suspension of use of up to one year if the suspension in use is caused by damage to the licensed premises, renovation, repair, active attempts to sell the licensed premises as a turnkey business operation, or other bona fide circumstances out of the licensee's control.
Each applicant for a license must complete and file an application on the form provided by the Town, together with the applicable license fee. If multiple types of business operations are to be conducted on a single premises, each business operation must obtain a separate license and pay the applicable fees associated with the appropriate business type. Applications must include:
A. 
Proof of the applicant's right, title, or interest in the premises, such as a deed, lease, sublease, (must include lease and authorization for sublease, if applicable) or purchase and sale agreement.
B. 
A copy of the applicant's state license application and supporting documentation, as submitted to the state licensing authority, if a state license is required.
C. 
Evidence of all state approvals or conditional approvals required to operate the business, including, but not limited to, a state license as defined by this title, caregiver registration, a state retail certificate, or a state health license.
D. 
If not included in the applicant's state license application, attested copies of any articles of incorporation, bylaws, operating agreement, partnership agreement or articles of association that govern the entity that will own and/or operate the business.
E. 
If not included in the applicant's state license application, an affidavit on a form to be provided by the Town that identifies all owners, officers, members, managers or partners of the applicant, their ownership interests, and their places of residence at the time of the application and for the immediately preceding three years.
F. 
A release for each applicant and for each officer, owner, member, manager or partner of the applicant seeking a license allowing the Town of Kittery or its officials to obtain criminal records and other background information related to the individual.
G. 
Evidence of all land use approvals or conditional land use approvals required to operate the business, including but not limited to building permit, special exception approval, site plan review approval, and/or a change of use permit. Where site plan approval is required, evidence of submission of a complete site plan review application is sufficient, but any license issued is conditioned upon site plan approval and issuance of any necessary building or occupancy permits.
H. 
Evidence of all other local approvals or conditional approvals required to operate the business, including any applicable food or victualer's license. If the marijuana business or medical marijuana registered caregiver home establishment is not in use as of the date of license application, the applicant must list any licenses required and issuance of such licenses will be made a condition of the marijuana business license.
I. 
A description of the premises for which the license is sought, including a plan of the premises.
J. 
A copy of any state or municipal license held for any other marijuana business, including any home occupation, owned or operated by the applicant or by any officer, owner, subsidiary, member, manager or partner of the applicant, as well as any notices of violation received from the state or municipality for such marijuana business and proof that any violation has been resolved.
K. 
Certification from the Fire Chief that the location of the marijuana business or medical marijuana registered caregiver home establishment on the subject premises will not pose an undue risk of fire or other safety hazard.
L. 
For marijuana retail stores, an operations plan, describing the applicant's:
(1) 
Security plan;
(2) 
Provisions to ensure against loitering and using marijuana and marijuana products on or near the premises;
(3) 
Protocols for hiring and training employees;
(4) 
Experience and training in the State of Maine's seed-to-sale tracking system;
(5) 
Protocols for odor control and disposal of waste marijuana or marijuana products;
(6) 
Protocols for ensuring the safety and security of product; and
(7) 
Fire suppression annual certification.
If the Town determines that a submitted application is not complete, the Town must notify the applicant of the additional information required to process the application. If such additional information is not submitted within 30 days of the Town's request, the application may be denied.
A license for a marijuana business may be transferred to another owner if an updated application form and ownership affidavit are provided to the Town and all persons listed on the affidavit successfully pass background checks and otherwise meet the criteria of this title. See § 5.11.9F regarding transfer of licenses for marijuana retail stores.
Marijuana business and medical marijuana registered caregiver home establishment licenses are limited to the premises for which they are issued and are not transferable to a different location. A licensee who seeks to operate in a new location must acquire a new license for that location.
A. 
Limit on marijuana retail store licenses. No more than one licensed marijuana retail store will be permitted per allowable zone as described in Title 16.3.
B. 
No business may have more than one marijuana retail store license in Kittery. The Town will utilize the Maine Tax Identification Number to determine compliance.
C. 
Preapplication required. Applications for initial licensure of marijuana retail stores will not be accepted for processing unless and until the applicant has successfully completed a preapplication process as set forth here.
(1) 
Preapplication forms will be available starting on the effective date of this title. Applicants seeking licensure as a marijuana retail store must complete the form and return it to the Town along with the following supporting documentation:
(a) 
Completed, signed and notarized ownership affidavit.
(b) 
Preapplication fee.
(c) 
Evidence of right, title and interest in the premises (deed, purchase and sale agreement, lease and/or sublease) or the property owner's permission to operate at that location, if the applicant is not the owner (letter from owner).
(d) 
Evidence demonstrating the applicant's financial capacity to build out (if applicable) and operate the marijuana retail store (e.g., bank letter, letter of credit, loan commitment).
(e) 
Evidence demonstrating that the applicant has applied for conditional licensure from the State of Maine.
(2) 
Upon receipt of a preapplication, the Town must note the date and time of the receipt and, without unreasonable delay, process the application to determine whether all required fields have been filled and all required supporting documentation has been provided. If the Town determines that a submitted preapplication is not complete, it must notify the applicant of the additional information required to process the preapplication. If such additional information is not submitted by the deadline set by the Town, the preapplication will be rejected.
(3) 
The Town Manager must evaluate complete preapplications and certify the eligibility of applicants if they meet the following standards:
(a) 
The applicant has demonstrated right, title and interest in the premises or owner permission to operate at the location;
(b) 
The applicant has demonstrated adequate financial capacity to build out (if applicable) and operate the retail store;
(c) 
The premises is located in a zone in which marijuana retail stores are permitted;
(d) 
The applicant has applied for or received conditional license approval from the State of Maine for the subject marijuana retail store.
(4) 
The Town Manager must issue a written decision to the applicant indicating whether it has met the standards for preapplication certification. Applications for licensure may be submitted as soon as the certification decision is issued.
D. 
Priority.
(1) 
Pre-license applications for marijuana retail stores will be received and processed until the deadline date announced by the Town on the first day preapplications will be accepted. The deadline will be no less than 30 days and no more than 45 days from the first day applications will be accepted.
(2) 
Licenses for marijuana retail stores will be assigned based on lottery, conducted by the Town, within 10 days of the deadline for preapplications. The first preapplication selected by lottery for each allowable zone will be invited to provide a completed license application within 30 days, which will be processed in accordance with § 5.11.6.
E. 
Waiting list procedures. A wait list will be established by lottery for each allowable zone, at the same time the priority lottery is conducted for § 5.11.9D. Once the wait list is established, each new applicant will be added to the end of the wait list. If a license for a marijuana retail store becomes available, the Town will invite the next applicant on the wait list for the corresponding zone, to apply for licensure. If such applicant does not submit an application within 30 days from invitation, the Town must proceed to the next applicant. Applications will not be processed from the wait list if there have been any material changes to ownership, as indicated on the ownership affidavit, or where there is a change to location of the premises.
F. 
Change in ownership of marijuana retail store. In the event of a proposed change in ownership of a marijuana retail store (including a material change of members of an LLC or partnership), the new owner(s) must apply for a new license within 30 days following the date of the transfer by submitting a full, completed/updated application package to the Town. The application is subject to the same application process as new licenses and, after initial staff review, will be presented to the Town Council for consideration if the proposal involves a change in majority ownership or control of the marijuana retail store. If the new owner does not apply for a new license within said thirty-day period, the license will be considered forfeited. The license may not be transferred if any active use other than for the licensed marijuana retail store has been made of the licensed premises prior to or within the 30 days following the transfer of ownership.
A license application for a marijuana business or medical marijuana registered caregiver home establishment must be denied by the licensing authority, suspended by the Town Manager, or after notice and hearing revoked by the Town Council, if the applicant, or any owner of the applicant or licensee:
A. 
Fails to meet the requirements of this title.
B. 
Is not at least 21 years of age.
C. 
Has had a license required for the marijuana business or medical marijuana registered caregiver home establishment suspended or revoked by the Town, by a municipality in the State of Maine, or by the State of Maine.
D. 
Is in violation of this or any ordinance or has unpaid penalties assessed by a court, related to the marijuana business or medical marijuana registered caregiver home establishment.
E. 
Has not acquired all necessary state and local approvals (other than final state approval) prior to issuance of the license.
F. 
Fails to meet zoning or other requirements of the Land Use and Development Code.[1]
[1]
Editor's Note: See Title 16 of this Code.
G. 
Has been convicted of a criminal violation arising out of operation of a marijuana business.
H. 
Has, within 10 years prior to the date of the application, been convicted of selling marijuana, alcohol, or any scheduled drug to a minor.
I. 
Has provided false or misleading information in connection with the license application.
In order to obtain and retain a license pursuant to this title, the applicant/licensee must demonstrate that the following requirements are met. The licensee must comply with each of these requirements during the term of the license:
A. 
Display of license. The current license must be displayed at all times in a conspicuous location within the premises.
B. 
Premises. All licensed premises must be fixed, permanent locations. Licensees are not permitted to operate marijuana establishments in other than the licensed premises, such as at farmer's markets, farm stands or kiosks.
C. 
Loitering. The facility owner/operator must make adequate provisions to prevent patrons or other persons from loitering on the premises. It is the licensee's obligation to ensure that anyone found to be loitering or using marijuana or marijuana products in the parking lot or other outdoor areas of a licensed premises is ordered to leave.
D. 
Other laws. A marijuana business or medical marijuana registered caregiver home establishment must meet all operating and other requirements of state and local law. To the extent the State of Maine has adopted or adopts in the future any law or regulation governing marijuana businesses that conflicts in any way with the provisions of this title, the more restrictive provisions control.
E. 
Changes to operations. Marijuana businesses and medical marijuana registered caregiver home establishment must operate in accordance with all material representations made in the approved license application and operations plan (if applicable). If the licensee is required to notify the state of a change related to the marijuana business, the licensee must promptly provide the Town with a copy of such notification. If the Town determines that the change is not in accordance with the requirements of this title, or requires additional conditions of approval, the change must be forwarded to the Town Council for consideration.
A. 
The following appeals may be decided by the Town Council in a de novo hearing in which it will hear evidence on the application and make its own findings of fact and conclusions of law:
(1) 
Appeal of the Town Manager's denial of an application.
(2) 
Appeal by any aggrieved party having legal standing of any decision by the Town Manager to grant a license under this title.
(3) 
Appeal by a licensee challenging conditions attached to a license, to which the licensee objects.
Appeals must be filed with the Town Clerk within 30 days of the date of the decision subject to appeal. The Town Council must hold the hearing on the appeal and render a decision within 30 days of the date of the appeal, unless all parties consent to a delay.
B. 
Appeals from any decision of the Town Council under this title may be made only to York County Superior Court within 30 days of the date of the decision being appealed.
The operation of any marijuana business or medical marijuana registered caregiver home establishment without the required license or in violation of the requirements of this title is a violation of this title. The Town Manager must enforce the provisions of this title. A violation of any provision of this title is a civil violation, and a civil penalty of $250 to $2,500 applies and may be assessed for each day that the violation continues. The penalty for operating a marijuana business or medical marijuana registered caregiver home establishment without a valid license is $2,500 per day for marijuana retail stores and $500 per day for other marijuana businesses or medical marijuana registered caregiver home establishments. The Town Manager may suspend the license, and the Town Council may revoke the license after notice and hearing.
Except as otherwise specifically provided herein, this title incorporates the requirements and procedures set forth in the Maine Marijuana Legalization Act, 28-B M.R.S.A. Chapter 1, as may be amended, and the Maine Medical Use of Marijuana Act, 22 M.R.S.A. Chapter 558-C, as may be amended. In the event of a conflict between the provisions of this title and the provisions of said Acts or any other applicable state or local law or regulation, the more restrictive provision must control.