HomeMy WebLinkAboutO-1860ORDINANCE NO. 1860
AN ORDINANCE TO AMEND CHAPTER 4 OF THE CODE OF
ORDINANCES OF THE CITY OF FAIRHOPE, ALABAMA TO ADD
LICENSING OF CONSUMABLE HEMP PRODUCTS IN THE CORPORA TE
LIMITS AND POLICE JURISDICTION OF THE CITY OF FAIRHOPE
WHEREAS, pursuant to Title 11, Chapter 51, Article 2 of the Code of Alabama, 197 5,
municipalities are granted the authority to license and tax businesses operating within their
jurisdiction; and
WHEREAS, pursuant to Title 28, Chapter 12 of the Code of Alabama, 1975, consumable
hemp products are eligible for sale in the state by retailers licensed by the alcohol beverage
board upon approval by the local governing body of the county or municipality in which the
licensee's facility is located; and
WHEREAS, the City of Fairhope desires to establish a license fee for consumable hemp
products, in accordance with current state law;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FAIRHOPE, ALABAMA AS FOLLOWS:
SECTION 1. Definitions.
Words and phrases used in this article, and not herein specifically defined, and which are
specifically defined in Title 28, Code of Alabama 1975, as amended, unless the context plainly
shows a different meaning, shall be given the meaning ascribed to them in said Title 28.
a."City" shall mean the City of Fairhope, an Alabama municipal corporation.
b."Person" shall include every individual, partnership, limited liability company,
association, limited liability partnership, or other form of organization engaged in any for
profit or not-for-profit activity.
c."Consumable Hemp Product" shall mean and have the same meaning as the term is
defined in Section 28-12-2, Code of Alabama 1975
d."Retailer" shall mean any person or business entity who sells consumable hemp products
to individual consumers or to the end-user, whether from a storefront or online, and regardless
of location.
e."License" shall mean an annual license issued by the City for the privilege of selling
consumable hemp products.
SECTION 2. License -Required for each place of business.
No person shall engage in business as a retailer of consumable hemp products in the corporate
limits of the City or within the police jurisdiction thereof, without first obtaining a license to
conduct such business.
SECTION 3. Application.
The City council shall prescribe the form of application for such license. All persons making
application for consumable hemp products shall request the City Council to set down for
hearing the application not more than thirty (30) days after the date of the next regular council
meeting after receiving such application.
Ordinance No. 1860
Page -2-
SECTION 4. Operating without a license.
Any person not buying an appropriate license prior to the commencement of business, shall
be guilty of a misdemeanor and, if found guilty by a court of competent jurisdiction, shall be
fined not less than fifty dollars ($50.00), nor more than the limit established in section 1-8,
and each day that said license has not been purchased shall be a separate offense.
SECTION 5. Licenses nontransferable; separate license; display of license.
Licenses shall be non-transferable; and each place of business shall require a separate license.
License is to be posted in a conspicuous place at or in the place for which the same was issued.
SECTION 6. License fees imposed -in City.
Each person desiring to engage in the retail sale of consumable hemp products in the City
and/or in its police jurisdiction must first obtain a license from the City under the applicable
category:
•Specialty Retailer of Consumable Hemp Products. There is hereby established an
annual license fee for a specialty retailer of consumable hemp products in the amount
of one thousand dollars ($1,000.00) as licensed by the alcohol beverage board.
•Retail Food Store Consumable Hemp Products. There is hereby established an annual
license fee for a retail food store consumable hemp product in the amount of one
thousand dollars ($1,000.00) as licensed by the alcohol beverage board.
SECTION 7. License fees imposed -in police jurisdiction.
Any person, firm, association, or corporation engaged in any business outside the City limits
but within the police jurisdiction shall pay one-half(½) of the amount of the license imposed
for like license.
SECTION 8. License fees imposed -No reduction, proration or rebate of license fee.
No reduction or proration of license fee shall be allowed on account of not commencing
business on the first day of January, nor shall any rebate be allowed upon revocation,
suspension, or surrender of such license before the expiration thereof.
SECTION 9. Failure to File or Submitting False Statements.
It shall be unlawful for any person who is required to file statements with the City to fail or to
omit to file such statements as herein provided, and it shall also be unlawful to make false
statements or to fail to pay the license fee, and each day after which said statements or
payments were due shall be a separate offense and the person violating any such provision
shall, upon conviction, be punished as provided in section 1-8. The City may also without
notice, revoke the license for sale of consumable hemp products by the licensee on failure to
file said statement and make payments when due.
SECTION 10. Payment Deadlines and Penalties.
License fees are due annually by January thirty-first each year. If the licensee fails to pay on
or before January thirty-first of each year, there shall be an assessed penalty of fifteen (15)
percent of the license fee imposed. There shall be assessed a penalty of thirty (30) percent of
any license fee required to be paid if the license fee and any assessed penalties are not paid
within thirty (30) days of the due date prescribed in the preceding sentence. Such penalties
shall not be cumulative. Any license fee not paid by April first shall be viewed as operating
without a license and shall be punishable as section 4. All delinquent licenses and penalties
shall also be charged an interest rate pursuant to §40-1-44 Code of Alabama 197 5.
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Ordinance No. 1860
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SECTION 11. Penalties for Violations.
Any person who is in violation of the Alcohol Beverage Control Board regulations shall be
fined $500.00 (five hundred dollars) upon the first violation. Upon the second violation an
additional $500.00 (five hundred dollars)shall be fined and the City Council may revoke their
license to sell Consumable Hemp products.
Any person violating any of the provisions of this article shall, upon conviction, be punished
by a fine not to exceed $500.00 for each offense, or by imprisonment for a period not
exceeding six months, or by both such fine and imprisonment, pursuant to the Section 1-8,
Code of the City of Fairhope, Alabama with each day constituting a separate offense.
SECTION 12. Severability
The sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and
if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared
unconstitutional by a court of competent jurisdiction, then such ruling shall not affect any
other paragraphs and sections, since the same would have been enacted by the municipality
council without the incorporation of any such unconstitutional phrase, clause, sentence,
paragraph or section.
SECTION 13. Effective Date
This ordinance shall become effective following its adoption and lawful publication.
ADOPTED AND APPROVED THIS 23RD DAY OF MARCH, 2026
ATTEST:
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City Clerk
ADOPTED AND APPROVED THIS 23RD DAY OF MARCH, 2026