AGENDA TITLE: Adopt an Ordinance to amend the Code of Ordinances to include a business license fee for medical marijuana cultivation facilities and dispensaries. (FIN) (Tabled 07052017)


AGENDA DATE: 07/17/2017

ITEM#: 11

DEPARTMENT: Finance Department

DATE SUBMITTED: 07/06/2017

PREPARED BY: TyRhonda Henderson

SUBJECT: Business License Fee for Medical Marijuana Cultivation Facilities and Dispensaries








SUMMARY: This item is to amend the Code of Ordinances to include the following business license fee schedule:

          Medical Marijuana Cultivation Facility

                    Initial Business License Fee = $50,000

                    Annual Business License Renewal Fee = $50,000

          Medical Marijuana Dispensary

                    Initial Business License Fee = $7,500

                    Annual Business License Renewal Fee = $11,250

These business license fees are set at a rate ˝ of what the State charges. The business license will be dated July 1st of the current year through June 30th of the following year. These are the same dates of any state license issued. The City Manager recommends approving the revisions.

BOARD ACTION: The City Manager and staff recommend that the City Board of Directors approve the attached ordinance.


EMERGENCY CLAUSE: An emergency clause is requested for this item.







WHEREAS, pursuant to the authority provided to cities to establish business licenses pursuant to Ark. Code Ann. §§ 26-77-102, et seq., and other applicable law, the Board of Directors determines it necessary and in the best interest of the City to establish certain licenses for businesses now or hereafter operating in the City pursuant to permits issued by the State of Arkansas or any of its agencies pursuant to Amendment 98 to the Arkansas Constitution, and any legislation, rules or regulations enacted pursuant thereto; and

WHEREAS, the City Manager and staff recommend adoption of such provisions;

NOW THEREFORE, BE IT ORDAINED, by the Board of Directors of the City of Texarkana, Arkansas, that the Code of Ordinances for the City of Texarkana, Arkansas (the “Code”) and such other Ordinances referenced herein are amended as follows:

SECTION 1.  The following is added as Section 13-13 of the Code:

Section 13-13.  Medical Marijuana Businesses


(a)   Definitions.

1.      Medical Marijuana Business” shall mean any entity or person conducting business under the authority of or which would otherwise be impermissible but for the underlying authority set out in Amendment 98 to the Constitution of Arkansas of 1874 (as such Amendment now or may hereafter be amended) or any statute, rule or regulation of the State of Arkansas, or any of its agencies or departments concerning or relating to the such Amendment.  Without limiting the generality of the foregoing definition, such definition shall include, but not be limited to persons or entities conducting business pursuant to permit or license issued by the Arkansas Medical Marijuana Commission or any successor thereof (the “AMMC”). 

2.      “Location” shall mean the tract or contiguous tracts of land, uninterrupted by street or other gap upon which a Medical Marijuana Business operates within the City.

(b)  License Required.  It shall be unlawful to operate any Medical Marijuana Business in the City without having first procured a license therefore from the City of Texarkana.

(c)   License Issuance.  Licenses shall be issued upon payment of applicable license fee and application to the City, in form and substance approved by the City Manager or the designee of the City Manager, providing the following:

1.      The name, address, and phone number of the person or entity; and

2.      A copy of any license or permit issued by the AMMC to the extent required by applicable state law.

(d)  Annual License Fee.  The annual fee for the business license payable to the city shall be as follows:

1.      For any Medical Marijuana Business involved in the direct cultivation of Marijuana or license issued by the AMMC for cultivation:  $50,000.00

2.      For any other Medical Marijuana Business:  $7,500.00 for the initial license and, for each license issued thereafter, $11,250.00.

(e)   Expiration date, No Proration, Non-Refundable, Non-Transferrable

Licenses issued under this provision shall expire on June 30 of each calendar year.  The license fees contained in this section shall be the same for any full year or portion thereof; there shall be no proration for any partial year.  All fees paid under this section shall be non-refundable.  Licenses issued under this section shall not be transferrable.


(f)    Delinquencies.  In addition to any applicable penalty for non-compliance:

1.      If the business license provided for in this section is not paid within thirty (30) days after such becomes annually due, it is hereby declared as delinquent and a penalty of ten percent (10%) of the applicable license fee will be added to the total outstanding balance;

2.      In the event the license is not paid within sixty (60) days, a penalty of twenty percent (20%) of the applicable license fee will be added to the total outstanding balance;

3.      In the event the license is not paid within ninety (90) days, a penalty of thirty percent (30%) of the applicable license fee will be added to the total outstanding balance


(g)   Automatic Revocation.  Revocation of any permit or license issued by the AMMC shall constitute automatic revocation of any Medical Marijuana Business license issued hereunder. 


(h)  Display.  Any license issued pursuant this section shall be displayed inside of the premises at the Location of the Medical Marijuana Business on file with the City.  


(i)     Multiple Licensing.  A separate license shall be required for each Location upon which a Medical Marijuana Business Operates.  Further, in the event that two or more Medical Marijuana Businesses are operated at the same Location, each such Medical Marijuana Business shall be separately licensed. In the event that a business, other than a Medical Marijuana Business is operated at a Location, which is required to procure a license or permit under separate provision of this Code, procurement of a license for the Medical Marijuana Business shall not relieve the business from the obligation to procure such other license or permit required by this Code. 


(j)    PenaltyExcept as otherwise provided, a person or entity convicted of a violation of this Code shall be punished by a fine not exceeding one thousand dollars ($1,000.00).  If the violation is, in its nature, continuous in respect to time, the penalty for allowing the continuance thereof is a fine not to exceed five hundred dollars ($500.00) for each day that the same is unlawfully continued.


(k)  No Effect on Zoning.  Nothing contained in this section shall limit any requirement of a Medical Marijuana Business to comply with applicable zoning ordinance now or hereafter in effect. 

SECTION 2.  Except as specifically set forth and amended herein, the Code remains unmodified and in effect.  In the event that any portion or portions of these amendments is or are determined to be illegal, impermissible or unconstitutional by a court of competent jurisdiction, such provision(s) shall be deemed stricken, but such action shall not affect the validity or enforceability of any other provision contained or referenced herein.  The foregoing shall supersede and replace any conflicting provisions of the Code.

SECTION 3.  This ordinance being necessary for the preservation of the public peace, health and safety, an emergency is therefore declared to exist; and this ordinance shall be in full force and effect from and after its passage and approval.

PASSED AND APPROVED this 17th day of July, 2017. 



Ruth Penney Bell, Mayor




Heather Soyars, City Clerk





George M. Matteson, City Attorney