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HomeMy WebLinkAbout05-24-16 YPC PacketFn'::,r ,rl] E RECORD / Fill 11 ANWIff ,&%, DEPARTMENT OF COMMUNITY DEVELOPMENT Nanning Dnvkio n '�Idd= I XW Joan Davenport, AICP, Director annin� F OF YAr,VMA129 North Second Street, 2"a Floor, Yakima, WA 98901 g ask.planning@yakimawa.gov • www.yakimawa.gov/services/planning City of Yakima Planning Commission SPECIAL STUDY SESSION City Hall Council Chambers Tuesday May 24, 2016 3:00 p.m. - 5:00 p.m. YPC Members: Chairman Scott Clark, Vice -Chair Patricia Byers, Al Rose, Bill Cook, Peter Marinace, Gavin Keefe Council Liaison: Mayor Avina Gutierrez City Planning Staff: Joan Davenport (Community Development Director/Planning Manager); Jeff Peters (Supervising Planner); Valerie Smith (Senior Planner); Trevor Martin (Associate Planner); Eric Crowell (Assistant Planner); Rosalinda Ibarra (Administrative Assistant); and Lisa Maxey (Department Assistant) Agenda I. Call to Order II. Roll Call III. Introduction of I-502 Marijuana Regulation and Direction from City Council IV. Other Business V. Adjourn Next Meeting: May 25, 2016 Q 5:30 p.m. 21, MR City of Yakima Planning Commission (YPC) City Hall Council Chambers Meeting Minutes of May 24, 2016 Call to Order Chairman Scott Clark called the meeting to order at 3:00 p.m. Roll Call YPC Members Present: Chairman Scott Clark, Vice -Chair Patricia Byers, Al Rose, Bill Cook, Peter Marinace, Gavin Keefe YPC Members Absent: Staff Present: Valerie Smith, Senior Planner; Jeff Peters, Supervising Planner; Lisa Maxey, Department Assistant; Sara Watkins, Senior Assistant City Attorney, Mark Kunkler, Senior Assistant City Attorney Others: Sign -in sheet in file Staff Announcements Senior Planner Valerie Smith reminded the Commission of the Comprehensive Plan 2040 Update Public Workshop on May 25t". Chairman Clark explained the intention of this study session for the Commission and announced that no public comment will be taken at this meeting. Introduction of 1-502 Marijuana Regglation and Direction from City Council Supervising Planner Jeff Peters announced that the Planning Division has established a webpage on the City's website with information and documents pertaining to the I-502 Marijuana Regulation issue. Sara Watkins, Senior Assistant City Attorney discussed the highlights of her memo which was provided to the Commission, explaining Council's direction to the Planning Commission and different methods to consider for regulating the location of marijuana retailers, processors, and manufacturers. Mark Kunkler, Senior Assistant City Attorney and currently Acting City Attorney, also went over his brief that he provided to the Commission, expanding on the history of Washington State law and the City's past and current regulations of marijuana retailing, processing, and manufacturing. Kunkler described the difference between the 3 maps presented to them with the different buffer options. Discussion occurred in regards to the number of state -issued marijuana retail license holders in Yakima. Planning Manager Joan Davenport addressed the issue of retailing being a prohibited home occupation, therefore excluding residential zones from the eligible locations for marijuana retailing. The Commission and staff also had discussion relating to parcels in which the buffer only affects a small portion, the difference between retailing, producing, and manufacturing marijuana and how regulations may vary for each license type; the definition of daycare facility, obtaining multiple marijuana license types, and proximity rules. Commissioner Rose explained that he finds the 1,000 foot buffer favorable in an attempt to err on the side of caution. Commissioner Byers concurred with his statements. Commissioner Keefe voiced that he's unaware of any cases in which a deficiency in regulation has caused significant problems. He also drew attention to the opportunity for -1- additional tax revenue for the City, with an understanding that too many restrictions would hinder profits for the City and the license holder. Commissioner Marinace asked staff if there has been an overwhelming response from marijuana retailers, processors, or manufacturers wanting to conduct business in Yakima. Jeff Peters responded that most interested parties have been retailers. Commissioner Byers made a statement that this is an opportune time for community members to express their thoughts and ideas to the Commission. Commissioner Marinace echoed her comments and noted the differentiation of ramifications of the placement of marijuana retail stores versus marijuana processing facilities. He emphasized that property owners along the Nob Hill Boulevard area on the map which shows many eligible sites for marijuana retail should be notified to receive their input. Commissioner Rose shared his concerns about marijuana still being illegal on the federal level and what effect that could have on Yakima residents under a future administration. Mark Kunkler went into detail on how potential tax revenue from marijuana retail sales could be distributed to the City. Cindy Epperson, Finance Director, provided the amount of retail sales tax revenue collected in other jurisdictions like Union Gap and Spokane. Commissioner Cook voiced his preference for reviewing appropriate zones for marijuana related facilities. He suggested that staff prepare a map that shows the zoning districts in conjunction with the buffer zones. Joan Davenport confirmed that staff could prepare such a map and suggested that the Commission consider if there are zoning districts in which they would like to prohibit marijuana related business. Chairman Clark mentioned that he's favorable to the eligible zones suggested in Mark's memo. Commissioner Rose asked if language could be crafted that would allow the City to adjust the buffer on a case-by-case basis. Mark Kunkler confirmed that this could be incorporated. Commissioner Cook requested that legal staff ask other jurisdictions what problems they have faced after placing regulation on marijuana related business. Sara Watkins confirmed that she will gather this information. Chairman Clark requested that staff provide a map that Commissioner Cook mentioned earlier that shows the zoning districts as well as the buffer zones. The Commission had consensus to provide staff the direction to prepare an ordinance that includes a 1,000 foot buffer that potentially limits the zoning districts to the ones mentioned in Mark Kunkler's memorandum, and includes the ability for flexibility of the buffers which will be discussed more at a later time. The Commission also gave direction to staff to schedule the public hearing on June 16th for sometime in the evening. Other Business None noted. djour A motion to adjourn to May 25, 2016 was passed with unanimous vote. This meeting adjourned at 4:17 p.m. Chairman Scott Clark Date This meeting was filmed by YPAC. Minutes for this meeting submitted by: Lisa Maxey, Department Assistant II -2- i,��VIUW/M K AA\ 111MV 1 ,. "SM % % I II i SIGN ISE NHE�" Arpanning City of Yakima Planning Commission City Hall Council Chambers Tuesday May 24, 2016 Beginning at 3:00 p.m. Special Study Session 'PLEASE WRITE LEGIBLY' ................ ................ .................. . ._._.................................................................... .......................................... ...... __ ...................... ............. Page 1 05/24/2016 YPC Meeting 11^'mu'm III:': R ECO 1111) , P, III F,, TENTATIVE YPC TIMELINE FOR MARIJUANA REGULATION UPDATE ._........ Proposed Action Date of Action YPC meeting to provide YPC with Council May 24, 2016 direction and options for I-502 Regulation _. Issue Notice of Application, SEPA, & Public ..................................................... ................................ May 27, 2016 Hearing, and draft ordinance for public comment & SEPA (Start of 20 -day comment period) YPC S ectal Study Session June 1, 2016 Set date for City Council Hearing. .__. June 7, 2016 for Jul 5, 2016 YPC Stud Session _.... _...._................................ June 8, 2016 ..... Issue SEPA DNS m20-da mm June 14, 2016 End ofComment Period June 16, 2016 YPC Public HearingJune ............... 16, 2016 Issue Notice of City Council PublicHearingmmmmmITITmmmmmmmm ........... By June 21, 2016 Council Packet Due _............................................... June 27, 2016 _........... End of SEPA Appeal Period June 28 2016 City Council Public Hearinl; .......... ._.. July 5 2016 ............. ......—� Ordinance Published July 8, 2016 Ordinance Effective Au ust 7, 2016 INNA VAI re,A 11' X110 d' I`11 1111" HE,CORD/ FILE, DEPARTWNT 200 SouthThird StreetYaldnY Washinglvn 96901 (509M5.6M Fax (509M5-6160 May 23, 2016 TO: Planning Commission members FROM: Sara Watkins, Sr. Assistant City Attorney SUBJECT: Marijuana zoning and regulatory provisions: other jurisdictions Dear Commissioners, have prepared an overview of some other jurisdictions' regulations of marijuana in their zoning codes. I provide in this memo examples of code sections from a broad spectrum of cities who allow marijuana. If you have any questions, or would like additional information, please let me know. Sincerely, Sara Watkins Sr. Assistant City Attorney 1. Zoning Provisions for Recreational Marijuana Businesses Many cities have passed ordinances that outline in which zones marijuana businesses can operate. If no zoning provisions are enacted and the ban is lifted, the marijuana businesses will be able to operate in any district that currently allows the proposed activity (retail, processor, producer). Some cities have taken this approach, such as Lacey and Maple Valley. The 1,000 feet is measured from property line to property line. The places that are the cause of the buffer are: 1. Elementary and secondary schools; 2. Public parks; 3. Public libraries 4. Child Care Centers; 5. Recreational Centers; 6. Public transit centers; 7. Playgrounds; and, 8. Game arcades open to people under the age of 21. RCW 69.50.331(8). Memorandum to Mark Kunkler re: Marijuana May 23, 2016 Page 2 State law allows for the 1,000 foot buffer to be reduced to a minimum of 100 feet for all other uses, other than primary or secondary schools and playgrounds. It is not necessary to be "all or nothing" and the buffer could be reduced for one activity, such as public transit centers, but remain at 1,000 feet for the other activities. Other jurisdictions have supplemented this list by adding buffer zones to specific land uses, and adding buffer zones between marijuana. Some examples: A. Minimum distance between marijuana businesses. Some jurisdictions have enacted ordinance language that adds a buffer between marijuana retail businesses. Vancouver requires that no marijuana retail business be located within 300 feet of another marijuana retail business Everett's restriction is 2,500 feet from any other marijuana retailer. Bellevue provides for a 1,000 foot buffer between marijuana retailers. Everett also restricts producers and processors, not allowing them to operate within 1,000 feet of each other. B. Additional buffer zone requirements. Jurisdictions have also enacted ordinances that add places to the list of buffer zone requirements. For example: 1. Longview does not allow retail outlets, producers or processors within 250 feet of a residential district or within a mobile home park/trailer park/RV park or within 250 feet of any of those uses. 2. Bellevue specifically states that no producer, processor or retailer shall be located within 1,000 feet of any park mapped in its GIS system. 3. Tacoma states that retailers are not allowed within 1,000 feet of correctional facilities, court houses, drug rehabilitation facilities, substance abuse facilities, or detoxification facilities. 4. Spokane Valley does not allow producers, processors or retailers within 1,000 feet of vacant undeveloped land owned by school districts, library districts or the City. It also doesn't allow marijuana retailers within 1,000 feet of Centennial Trail or Appleway Trail (the LCB specifically stated that trails were not playgrounds or parks as they defined them in their regulations). 5. Everett does not allow producers or processors to locate within 1,000 feet of any parcel zoned residential. Many jurisdictions have also specifically stated that no marijuana businesses shall be allowed in any residential zone of the city. Memorandum to Mark Kunkler re: Marijuana May 23, 2016 Page 3 C. Zoning Restrictions Many jurisdictions outline the specific zoning areas in which marijuana retailers, producers and processors can locate. If zoning areas are not specified, the outcome is that the businesses will be able to be located in any zone in which their activities fall as long as they meet the buffer requirements. In many jurisdictions, producers and processors are only allowed in manufacturing, industrial or heavy commercial zones. Some jurisdictions supplement this by allowing production and processing as a conditional use in other zones, such as light industrial. Requiring producers and processors to operate in the M-1 and/or M-2 districts would provide the opportunity to require that such producers and processors connect to the industrial sewer line, which may be advantageous based on the chemicals used and waste produced at these locations. Some jurisdictions have limited retailers by not allowing retailers in neighborhood business districts. 2. Other Building/Use Requirements. A. Requirements concerning the buildings in which the businesses are located. Some cities have further regulated marijuana businesses through requirements concerning the buildings in which they are located. Vancouver's ordinance states: Retail marijuana businesses may not be located within any other businesses, and may only be located in buildings with other uses only if the marijuana business is separated by full walls and with a separate entrance. No more than one marijuana retail business shall be located on a single parcel. Marijuana businesses shall not be located in a mobile structure. As stated above, Longview does not allow marijuana businesses in mobile home parks/RV parks or trailer parks. Tacoma (and other jurisdictions) state that there cannot be a drive-thru or other exterior method of sales, nor can the business conduct off-site sales (some of this is mandated by statute). Memorandum to Mark Kunkler re: Marijuana May 23, 2016 Page 4 Everett does not allow a marijuana retailer on any parcel containing a residential use (so if a building has a storefront and a residence upstairs in a business district, a marijuana retailer could not locate there). It further does not allow a retailer on any parcel that is contiguous to a parcel containing a residential use, except in specific circumstances. Further, Everett outlines the following parking requirements: Customer parking for marijuana retailers must be on the public street side of the structure in which the marijuana retailer is located and may not be off of or adjacent to an alley. However, staff parking and business deliveries may occur on the alley side of the structure. Vehicular access to the parking lot for a marijuana retailer shall be from the public street frontage and may not be from an alley. Any property located on a street from which vehicular access to the site from the street is prohibited by the City Engineer shall not be allowed for use as a marijuana retailer. Bellevue does not allow marijuana retailers as a subordinate or accessory use in any land use district. Ellensburg does not allow retailers to be housed in a building over 3,000 square feet. B. Limitations on sight and smell.. The state regulations require the following (WAC 314-55-075): Marijuana production must take place within a fully enclosed secure indoor facility or greenhouse with rigid walls, a roof, and doors. Outdoor production may take place in non -rigid greenhouses, other structures, or an expanse of open or cleared ground fully enclosed by a physical barrier. To obscure public view of the premises, outdoor production must be enclosed by a sight obscure wall or fence at least eight feet high. Outdoor producers must meet security requirements described in WAC 314-55-083. Many jurisdictions have enacted provisions addressing the sight and smell of marijuana producers, processors and retailers. In general, the city's nuisance ordinances would apply with regards to odor, however, jurisdictions have enacted odor ordinances that require preventative measures. In Edmonds, the City does not allow any marijuana business to conduct any activities in the public view. This will require fencing and structural requirements to keep grows and activities out of the sight of the general public. Edmunds also does not allow marijuana, Memorandum to Mark Kunkler re: Marijuana May 23, 2016 Page 5 or drug paraphernalia, to be displayed to be visible from outside the premises. Further, "Sufficient measures and means of preventing smoke, odors, debris, dust, fluids, and other substances from exiting the recreational marijuana business must be in effect at all times." Ellensburg requires all production to be indoors. Bellevue also requires all odor to be contained in a retail outlet so that it "cannot be detected by a person with a normal sense of smell from any abutting use or property." If the smell does become an issue, the retailer "shall be required to implement measures, including but not limited to, the installation of the ventilation equipment necessary to contain the odor." Bellevue also requires that all marijuana be grown in a structure. Outdoor cultivation is prohibited. Bellevue also regulates odor and visibility of producers and processors as follows: Marijuana production and processing facilities shall be ventilated so that the odor from the marijuana cannot be detected by a person with a normal sense of smell from any adjoining use or property. A screened and secured loading dock, approved by the Director shall be required. The objective of this requirement is to provide a secure, visual screen from the public right-of-way and adjoining properties, and prevent the escape of odors when delivering or transferring marijuana, marijuana concentrates, useable marijuana, and marijuana -infused products. Tacoma provides that marijuana uses need to be designed to control odors from being detected in a public place, the public right-of-way, or properties of others. Vancouver requires that all marijuana businesses take place within a fully enclosed secure indoor facility or greenhouse. Further, such businesses are required to incorporate odor control technology and ensure emissions do not exceed clean air agency regulations. 3. Neighborhood Cooperatives The most recent regulation eliminated medical marijuana collective gardens, and replaced that with medical marijuana neighborhood cooperatives. Pursuant to the legislation, cooperatives may not be located in any of the following areas: A. Within 1 mile of a marijuana retailer; B. Within the buffer zone restrictions adopted by Council (in the event the buffers are reduced) or 1,000 feet of: Memorandum to Mark Kunkler re: Marijuana May 23, 2016 Page 6 1. Elementary or secondary schools (cannot be reduced) 2. Playgrounds (cannot be reduced) 3. Recreation center or facility 4. Child care center 5. Public park 6. Public Transit Center 7. Library 8. Game arcade that admission is allowed for those under 21. Neighborhood cooperatives are locations where qualifying patients or designated providers share responsibility for acquiring and supplying the resources needed to produce and process marijuana only for the medical use of its members. Sharing responsibility does not include only financing the operation, but must provide assistance in growing the plants. The locations must be registered with the LCB, but that registration information is exempt from public disclosure. Cooperatives must be located "in the domicile" of one of the participants. This means that the cooperatives are located in houses, and residential zoning areas. The City has the ability, specifically under the law, to prohibit and ban neighborhood cooperatives in their entirety. FOR Hl E RECORD/ F1[,E DEPARTWNT 200 South Third Street Yakima, Waslungton 98901 MM5-6= Fax (509)5756160 tela -MAI VII ,rB May 23, 2016 TO Planning Commission Jeff Cutter, Interim City Manager FROM: Mark Kunkler, Senior Assistant City Attorney SUBJECT: Planning Issues — Lifting Marijuana Ban On May 17, 2016, the Yakima City Council adopted a Motion to repeal the ban on the production, processing and retail sale of medical and recreational marijuana. The City Council also adopted a second Motion referring the issues to the Planning Commission for a recommendation regarding any underlying zoning or land use regulation that would be put into effect when the marijuana ban is lifted. The following is a discussion of the history of marijuana legislation in the State of Washington as well as some options to consider when identifying possible areas of zoning control. This Memorandum is premised on the first action of the City Council — the decision to proceed to repeal the existing ban. Therefore, the primary focus will be on possible zoning amendments. The Legislative Background — Medical Marijuana and Recreational Marijuana. In order to understand the available options, it is important to share a bit of the history of medical marijuana and recreational marijuana legislation. A. Medical Use of Marijuana Act MUMA). In 1998, the voters of the State of Washington approved Initiative 692 permitting the use of marijuana for medical purposes for qualifying patients. The Medical Use of Marijuana Act was amended in 2007, 2010 and 2011. As summarized by the Legislature's Final Bill Report for SB 5052, this legislation provided: Memorandum - Planning Commission - Marijuana May 24, 2016 Page 2 In order to qualify for the use of medical marijuana, patients must have a terminal or debilitating medical condition such as cancer, the human immunodeficiency virus, multiple sclerosis, intractable pain, glaucoma, Crohn's disease, hepatitis C, nausea or seizure diseases, or a disease approved by the Medical Quality Assurance Commission, and the diagnosis of this condition must be made by a health care professional. The health care professional who determines that a person would benefit from the medical use of marijuana must provide that patient with valid documentation written on tamper- resistant paper. Qualifying patients who hold valid documentation may assert an affirmative defense at trial that they are authorized medical marijuana patients. These patients are not currently provided arrest protection. Patients may grow medical marijuana for themselves or designate a provider to grow on their behalf. Designated providers may only provide marijuana for one patient at a time, must be 18 years of age, and must be designated in writing by the qualifying patient to serve in this capacity. There is no age limit for patients. Qualifying patients and their designated providers may possess no more than 15 marijuana plants and 24 ounces of useable marijuana product. Up to ten qualifying patients may share responsibility for acquiring and supplying the resources required to produce, process, transport, and deliver marijuana for the medical use of its members. Collective gardens may contain up to 45 plants and 72 ounces of useable marijuana and no marijuana from the collective garden may be delivered to anyone other than one of the qualifying patients participating in the collective garden. No provision for the sale of marijuana from a collective garden or for the licensing of collective gardens is made in statute. No state agency is provided with regulatory oversight of medical marijuana. The Department of Health (DOH) does provide guidance to its licensees who recommend the medical use of marijuana, and is the disciplinary authority for its providers who authorize the medical use of marijuana in violation of the statutory requirements. DOH does not perform investigations until a complaint is made that someone is unlawfully authorizing the medical use of marijuana. There are no statutory licensing or production standards for medical marijuana and there are no provisions for taxation of medical marijuana. B. Recreational Mari"Dana Initiative 502). Initiative 502 ("1-502") was approved by the voters in 2012. 1-502 legalized possession of up to one ounce of useable marijuana, up to 16 ounces of marijuana -infused product, up to 72 ounces of liquid marijuana -infused product, and up to seven grams of marijuana concentrates. The new law established a licensing framework, administered by the Washington State Liquor Control Board ("LCB"), for the licensing of production (growing), processing and retailing of marijuana for recreational purposes. Memorandum - Planning Commission - Marijuana May 24, 2016 Page 3 1-502 directed the LCB to allocate a limited number of retail licenses to each county based on population. The allocation for Yakima County (and certain cities within Yakima County) was established as follows: Yakima County "At Large" licenses: 61 Grandview 1 Selah 1 Sunnyside 1 Yakima 5 TOTAL: 14 To date, Yakima County and each of the cities listed above have adopted bans preventing retailers from locating within their respective jurisdictions. Records of the LCB further reflect that the LCB has received applications from proposed retailers to fill all five of the City of Yakima's allocation - but these cannot locate in the city because of the city's ban on marijuana production, processing and retailing. ' "At Large" retail licenses are defined at WAC 314-55-081 as follows: WAC 314-55-081 Who can apply for a marijuana retailer license? (1) Using estimated consumption data and population data obtained from the office of financial management (OFM) population data, the liquor control board will determine the maximum number of marijuana retail locations per county. The number of retail locations will be determined using a method that distributes the number of locations proportionate to the most populous cities within each county. Locations not assigned to a specific city will be at lar e. At large locations can be used for unincorporated areas in the counly or in cities within the county,that have no retail licenses designated. Once the number of locations per city and at large have been identified, the eligible applicants will be selected by lottery in the event the number of applications exceeds the allotted amount for the cities and county. Any lottery conducted by the board will be witnessed by an independent third party. (2) The number of marijuana retail licenses determined by the board can be found on the liquor control board web site at www.liq.wa.gov. (3) Any entity and/or principals within any entity are limited to no more than three retail marijuana licenses with no multiple location licensee allowed more than thirty-three percent of the allowed licenses in any county or city.... Thus, cities like Union Gap — which have not been allocated a specific number of retail licenses — may be allowed to use one of the "at large" allocations available to unincorporated Yakima County. This assumes that the city has not adopted a ban or moratorium preventing such use. Memorandum - Planning Commission - Marijuana May 24, 2016 Page 4 1-502 and the LCB's implementing regulations do not limit the number of marijuana Producers or Processors that may locate in any city or county. In another key provision, 1-502 limited the location of marijuana production, processing and retail businesses. Section 6(8) provided: The state liquor control board shall not issue a license for any premises within one thousand feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older. (Emphasis added). C. 2015 Amendments to Medical Marijuana Laws. In 2015, the legislature enacted two statutes that amended the laws pertaining to medical marijuana and recreational marijuana. These amendments are discussed in some detail below: SB 5052. This bill was adopted and signed into law and summarized in the Final Bill Report as follows: First, the "Liquor Control Board" name was changed to the "Liquor and Cannabis Board." Medical use of marijuana is regulated through the structure provided in Initiative 502. Specific provisions for the medical use of marijuana are included: the terminal or debilitating medical conditions that qualify a patient for the medical use of marijuana must be severe enough to significantly interfere with activities of daily living and must be able to be objectively assessed and evaluated; and qualifying patients continue to be able to grow marijuana for their medical use. A medical marijuana authorization database (database) is created. Qualifying patients and designated providers who do not sign up with the database may grow marijuana for their medical use but are limited to four plants and 6 ounces of useable marijuana and are provided an affirmative defense to charges of violating the law on medical use of marijuana. Qualifying patients and designated providers who do sign up with the database may grow up to 15 plants for their medical use, are provided arrest protection, and may possess three times the amount of marijuana than what is permitted for the recreational user. A medical marijuana endorsement to a marijuana retail license is established to be issued by LCB. The endorsement may be issued concurrently with the retail license and medical marijuana—endorsed stores must carry products identified by DOH as beneficial to medical marijuana patients. DOH must also adopt safe handling requirements for all marijuana products to be sold by endorsed stores and must adopt training requirements Memorandum - Planning Commission - Marijuana May 24, 2016 Page 5 for retail employees. LCB must reopen the license period for retail stores and allow for additional licenses to be issued to address the needs of the medical market. LCB must establish a merit based system for issuing retail licenses. First priority must be given to applicants that have applied for a marijuana retailer license before July 1, 2014, and who have operated or been employed by a collective garden before November 6, 2012, and second priority to applicants who were operating or employed by a collective garden before November 6, 2012 but who have not previously applied for a marijuana license. Beginning July 1, 2016 health care professionals who authorize the medical use of marijuana must use an authorization form developed by DOH. The authorization form must include the qualifying patient's or designated provider's name, address, and date of birth; the health care professional's name, address, and license number; the amount of marijuana recommended for the qualifying patient; a telephone number where the authorization can be verified; the dates of issuance and expiration; and a statement that the authorization does not provide protection from arrest unless the patient or provider is also entered into the database. Authorizations are valid for one year for adults and six months for minors. Minors may be authorized for the medical use of marijuana if the minor's parent or guardian agrees to the authorization. The parent or guardian must have sole control over the minor's marijuana. Minors may not grow marijuana, nor may they purchase from a retailer. However, they may enter the premises of a medical marijuana retailer if they are accompanied by their parent or guardian who is serving as the designated provider. Patients who are between ages 18 and 21 may enter marijuana retail outlets that hold medical marijuana endorsements. The database is to be administered by a third party under contract with DOH. The database must allow authorizing marijuana retailers with medical marijuana endorsements to enter the qualifying patient or designated provider into the database and, consequently, provide the patient or provider with a recognition card that may be used to confirm the authenticity of the patient or provider. Patients and providers who are entered into the database are provided protection from arrest so long as they are in compliance with the law on the medical use of marijuana. Patients and providers who are entered into the database are permitted the following possession amounts: 3 ounces of useable marijuana, 48 ounces of marijuana -infused product in solid form, 216 ounces of marijuana -infused product in liquid form, 21 grams of marijuana concentrates, and 6 plants. The authorizing health care professional may authorize more than the six plants and 3 ounces of useable marijuana if the patient's medical needs require additional amounts, but no more than 8 ounces of useable marijuana and 15 plants. No more than 15 plants may be grown in a housing unit, unless the housing unit is the location of a cooperative. No plants may be grown or processed if any portion of the activity may be viewed or smelled from the public or the private property of another housing unit. The database is not subject to public disclosure. The database is accessible to only the following groups of people: The medical marijuana retailer with a medical marijuana endorsement, to add the patient or provider to the database. Memorandum - Planning Commission - Marijuana May 24, 2016 Page 6 Persons authorized to prescribe or dispense controlled substances to access health care information on their patients to provide medical care to their patients. A qualifying patient or designated provider to request or receive his or her own health care information. Law enforcement officers who are engaged in a bona fide investigation relating to the use of marijuana. A marijuana retailer holding a medical marijuana endorsement to confirm the validity of a recognition card. The Department of Revenue to verify tax exemptions. The Department of Health to monitor compliance of health care professionals. It is a class C felony for a person to access the database for an unauthorized purpose or to disclose any information obtained by accessing the database. Funding for the creation and maintenance of the database comes from the Health Professions Account which will be reimbursed from the Dedicated Marijuana Fund. Qualifying patients and designated providers placed in the database must be issued recognition cards. Recognition cards must include a randomly generated number that will identify the patient or provider, a photograph of the patient or provider, the amount of marijuana for which the patient has been authorized, the effective and expiration dates of the card, the name of the health care professional who authorized the patient or provider, and other security features necessary to ensure its validity. Patients and providers will be charged $1 for each initial and renewal recognition card issued with proceeds to be deposited into the Health Professions Account. The provision authorizing collective gardens is repealed, effective July 1, 2016. Four member cooperatives are permitted. Up to four patients or designated providers may participate in a cooperative to share responsibility for the production and processing of marijuana for the medical use of its members. The location of the cooperative must be registered with LCB and is only permitted if it is at least 1 mile away from a marijuana retailer. The registration must include each member's name and copies of each member's recognition cards. Only registered members may participate in the cooperative or obtain marijuana from the cooperative. If a member leaves the cooperative, no new member may join for 60 days after LCB has been notified of the change in membership. All members of the cooperative must provide labor; monetary assistance is not permitted. Marijuana grown at a cooperative is only for the medical use of its members and may not be sold or donated to another. Minors may not participate in cooperatives. LCB must develop a seed to sale traceability system to track all marijuana grown by the cooperative. Licensed marijuana producers may be permitted to increase the amount of their production space if the additional amount is to be used to grow plants identified as appropriate for medical use. Extractions by any person without a license is prohibited. LCB must adopt rules on noncombustible methods of extractions that may be used. A medical marijuana consultant certificate is established to be issued by DOH. Certificate holders must meet education requirements relating to the medical use of marijuana and Memorandum - Planning Commission - Marijuana May 24, 2016 Page 7 the laws and rules implementing the recreational and medical systems. DOH must also make recommendations on whether medical marijuana specialty clinics may be permitted. LCB may conduct controlled purchase programs in retail outlets, cooperatives, and, until they expire July 1, 2016 in collective gardens to ensure minors are not accessing marijuana. Retailers may conduct in-house controlled purchase programs. 2. 2E2SHB 2136. Municipal Research & Services Center (MRSC) summarized this legislation as follows: Tax Changes and Revenue Sharing Excise tax. Instead of there being an excise tax of 25% at each of the three different stages (production, processing, and retailing), now there is a single excise tax of 37% imposed at the time of marijuana retail sale. See Section 205 of HB 2136. The excise tax is in addition to the state and local sales tax. Section 101 explains the basic reasoning behind the tax changes: the legislature intends to reform the current tax structure for the regulated legal marijuana system to create price parity with the large medical and illicit markets with the specific objective of increasing the market share of the legal and highly regulated marijuana market. Beginning in fiscal year 2018, if marijuana excise tax collection exceeds 25 million dollars, 30% of all marijuana excise taxes deposited into the general fund the prior fiscal year will be distributed to local governments as follows: 30% will go to counties, cities, and towns where retailers are located, based on the retail sales from stores within each jurisdiction; 70% will be distributed to counties, cities, and towns on a per capita basis — but only to jurisdictions that do not prohibit the siting of state -licensed producers, processors, or retailers. See Section 206(2)(g) for the exact wording. The State Treasurer will make the transfers to local governments in four installments, by the last day of each fiscal quarter. Sales tax. The legislation provides a retail sales and use tax exemption for marijuana purchased or obtained for medical use. See Sections 207 and 208. Local Funding The state budget provides for $12 million in funding for counties and eligible cities, $6 million in each fiscal year of the 2015-17 biennium. The funds appropriated in the budget are to be distributed according to a formula set out in Section 1603, based on retail marijuana sales, in four installments by the last day of each fiscal quarter. Memorandum - Planning Commission - Marijuana May 24, 2016 Page 8 Buffer Zones Counties, cities, and towns are granted the authority to reduce the 1000 -foot buffer zones required by 1-502 (RCW 69.50.331(8)) around certain types of facilities within which licensed marijuana producers, processors, or retailers could not be located. The buffer zones can be reduced to not less than 100 feet from recreation centers or facilities, child care centers, public parks, public transit centers, or game arcades admitting minors. This authority to adjust buffer distances DOES NOT apply to elementary or secondary schools or to playgrounds. See Section 301(8). Counties, cities and towns can also allow marijuana research facilities to be located not less than 100 feet of all of the above mentioned facilities, INCLUDING elementary or secondary schools, and playgrounds. A marijuana research facility is a newly authorized entity. See SB 5121 (Chapter 71, Laws of 2015). Signage for Retail Stores Licensed retail marijuana stores are now allowed to have TWO signs instead of the previous limitation to one sign. Each must be no more than 1,600 square inches in size. See Section 203(4). Marijuana Use in "Public Places" Section 401 clarifies what constitutes a "public place" where marijuana cannot be consumed, by incorporating the definition of "public place" found at RCW 66.04.010(35). Transportation of Marijuana Licensed producers, processors, and retailers can use common carriers for transport of marijuana, under rules to be adopted by the LCB. See Section 501. Public Notice Requirements Applicants for marijuana licenses must post a sign, provided by the LCB, on the outside of the premises to be licensed notifying the public that the premises are subject to an application for a marijuana license. The sign must be posted within seven days of submitting an application to the LCB. See Section 801. Cities, towns, and counties may adopt an ordinance requiring that license applicants provide individual notice of their application to any of the following that are located within 1,000 feet: elementary or secondary schools, recreation centers or facilities, child care centers, churches, agencies that operate public parks, transit centers, or libraries, and arcades admitting minors. See Section 801. The notice must contain contact information for submitting comments to the LCB. The local government can require that these notices be sent at least 60 days before the license is granted. Medical Marijuana Cooperatives Section 1001 amends some of the provisions contained in the medical marijuana legislation (2SSB 5052), enacted during the regular legislative session earlier this year, which authorizes the establishment of LCB -certified "cooperatives" in place of collective gardens. This section establishes buffer zones within which cooperatives may not be located and makes it clear that cities, towns, and Memorandum - Planning Commission - Marijuana May 24, 2016 Page 9 counties may prohibit cooperatives within their jurisdiction. It will not be effective until July 1, 2016, to coincide with the effective date of the provisions in 2SSB 5052 dealing with cooperatives. See my recent post, Medical Marijuana Reform Legislation Enacted, for information on 2SSB 5052. Vending Machines and Drive -Up Windows Marijuana retailers may not have marijuana vending machines within their stores, nor may they have drive -up windows. See Section 1301. Effective dates Most sections of HB 2136 are effective July 1st of this year [2015] – meaning they're already in effect! The sections now in effect include those involving the tax revisions and the authorized changes to buffer zones. A few sections are effective on July 24, 2015, some on October 1, 2015, and some on July 1, 2016. See Section 1605 for effective dates. Article, "Final Marijuana Legislation for 2015," by Jim Doherty, MRSC, July 2, 2015. II. Options for Local Legislation. A city has several options when considering possible land use and regulatory controls concerning the production, processing and retailing of marijuana within its jurisdiction. Here are possible options, to be determined by the City Council: A. Background — Existing Marijuana Fans. The City Council amended Title 15 YMC in 2012 and 2014 to ban medical marijuana dispensaries and "collective gardens, and to ban the production, processing and retailing of marijuana within the city limits of the City of Yakima. These bans are currently found at YMC 15.01.035: 15.01.035 Illegal uses prohibited. A. General. No use that is illegal under local, state or federal law shall be allowed in any zone within the city. B. Specific Application—Medical Marijuana Dispensaries and Collective Gardens. Until such time that this code is amended to provide specific provisions and land use controls allowing and regulating dispensaries of cannabis and/or collective gardens for the production, distribution and dispensing of cannabis for medical uses, all as further defined and set forth in Chapter 69.51A RCW and E2SSB 5073, Laws of 2011 of the State of Washington, such uses are not allowed in any zone within the city. For purposes of this section, "dispensary" means any person, entity, site, location, facility, business, cooperative or collective, whether for profit or not for profit, that distributes, sells, dispenses, transmits, packages, measures, labels, selects, processes, delivers, exchanges or gives away cannabis for medicinal or other purposes. Memorandum - Planning Commission - Marijuana May 24, 2016 Page 10 C. Production, Processing and Retailing of Marijuana Prohibited. Until such time that this code is amended to provide specific provisions and land use controls allowing and regulating production, processing, retail sale and retail outlets for the sale of marijuana and marijuana -infused products, all as defined in Initiative Measure No. 502, as codified in the Revised Code of Washington, and implementing regulations in Chapter 314-55 WAC, as now existing or hereafter amended, such uses are each prohibited and not allowed in any zone within the city. (Ord. 2014-001 § 2, 2014: Ord. 2012-03 § 2, 2012). B. Repeal Ban. The effect of repeal would leave the location of recreational marijuana production, processing and retail businesses, as well as medical marijuana cooperatives, subject to the statutory and LCB licensing restrictions. Without a local ordinance specifically defining or regulating location of marijuana production, processing, retailing and cooperatives, City Planning staff will apply analogous zoning and land use definitions (such as "retail," "manufacturing," "food processing," etc.) to determine appropriate zoning for each licensee. Existing state law imposes a 1,000 -foot distance restriction from certain listed "sensitive" uses. RCW 69.50.331(8)(a) provides: (8)(a) Except as provided in (b) through (d) of this subsection, the state liquor and cannabis board may not issue a license for any premises within one thousand feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older. For medical marijuana cooperatives, these statutory restrictions apply, as well as some additional restrictions. RCW 69.51A.250 provides in part: (3) No cooperative may be located in any of the following areas: (a) Within one mile of a marijuana retailer; (b) Within the smaller of either: (i) One thousand feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, library, or any game arcade that admission to which is not restricted to persons aged twenty-one years or older; or (ii) The area restricted by ordinance, if the cooperative is located in a city, county, or town that has passed an ordinance pursuant to RCW 69.50.331(8)2; or 2 Per RCW 69.50.331(8), a city may adopt an ordinance prohibiting cooperatives, restricting cooperatives to specific zoning districts, or reducing the 1,000 -foot distance restrictions for certain sensitive uses (except for elementary schools, secondary schools and playgrounds — which must retain the 1,000 -foot distance requirement). Memorandum - Planning Commission - Marijuana May 24, 2016 Page 11 (c) Where prohibited by a city, town, or county zoning provision. (4) The state liquor and cannabis board must deny the registration of any cooperative if the location does not comply with the requirements set forth in subsection (3) of this section. Pursuant to RCW 69.51A.250(7), "[t]he location of the cooperative must be the domicile of one of the participants." This means that, without a local ordinance restricting location, a cooperative could be located in a residence, in a residential zoning district. A straight repeal of the ban without adoption of a separate ordinance defining appropriate zoning and land use controls would also mean that the City elects to forego an opportunity to reduce the 1,000 -foot distance restrictions if such reductions are deemed appropriate. A straight repeal would also forego an opportunity to amend the City's zoning code to define the marijuana uses, forego the opportunity to provide for separate provisions stating that violation of controlling state standards would also constitute a violation of the City's zoning code, and forego the opportunity to designate specific zoning districts or areas where such uses are allowed. C. Adopt New Regulations and Land Use Controls to Tale Effect Upon Lifting of Ban. Taking the opportunity to fashion underlying land use and regulatory controls that take effect upon lifting the marijuana ban would enable us to consider the following: • Public Participation. The amendment process requires at least one open public hearing to be held by the Planning Commission. The Planning Commission typically holds several meetings and study sessions on important items, and invites and encourages public comment and participation. This has been an important source of comment on past issues. Following the meetings, study sessions and public hearing(s), the Planning Commission then makes a recommendation to the City Council. The City Council would then make the final decision, but would also have the benefit of the Planning Commission's recommendation and findings. • Lifting Ban without Underlying Zoning. Simply lifting the ban without considering underlying zoning definitions and regulations would leave the City without specific designation of zoning districts for marijuana production, processing and retailing, and without specific zoning code definitions pertaining to such uses. In such case, the City would be relying on general Memorandum - Planning Commission - Marijuana May 24, 2016 Page 12 business zoning, thus conceivably allowing marijuana retail businesses in every zoning district where retail businesses may be allowed (i.e., B-2 Local Business, B-1 Professional Business, HB Historical Business, SCC Small Convenience Center, LCC Large Convenience Center, etc.). Designation of Specific Zoning Districts. Designating specific zoning districts in which marijuana facilities would be allowable uses. For retail recreational/medical marijuana, these zoning districts could logically include the large business districts (GC General Commercial, CBD Central Business District) as well as the M-1 Light Industrial and M-2 Heavy Industrial zoning districts. Marijuana business uses may not be compatible within other commercial districts such as the HB Historical Business, B-1 Professional Business, B-2 Local Business, etc. Development of specific zoning for marijuana uses could define zoning districts in which such uses are more compatible with neighboring uses. • Assigning Industrial Zoning for Marijuana Production and Processing. For marijuana production and processing, the industrial zoning districts appear to be possible location options. Related to this would be a requirement that production and processing be located so as to be on the City's Industrial Wastewater system. • Modification of Buffers. The recent state law amendments also give the City the ability to adopt an ordinance modifying or reducing the 1,000 -foot distance restrictions in certain cases (except for elementary schools, secondary schools and playgrounds). These reductions, however, can only be implemented through adoption of a City ordinance. • Cooperatives. For cooperatives, the statutes allow several options, including the option to not permit such uses, to establish additional distance requirements, to consider appropriate zoning and other regulation. • Local Land Use Definition and Enforcement Provisions. Development of zoning and land use regulations would also give the City the opportunity to develop/incorporate definitions of the specific marijuana uses, and to clarify enforcement authority by providing that any violation of the local regulations and/or state regulations would also constitute a violation of the zoning code. This would enable the City to locally enforce violations in municipal court. • Business Licenses. Possible development of business license requirements governing such uses. These typically are found in Title 5 YMC, Memorandum - Planning Commission - Marijuana May 24, 2016 Page 13 but it is common to develop such regulations in conjunction and coordination with land use regulations found in Title 15 YMC. The possible amendments described above (with the possible exception of business license regulations) would require an amendment of Title 15 YMC. Under this code (and applicable state law), amendments must be referred to the Planning Commission — which schedules study sessions and public hearing(s) to consider the proposed amendments. The Planning Commission would then make a recommendation to the City Council. The City Council receives the recommendation and makes the final decision. The Council's final decision would then be presented as an ordinance amending the municipal code. The amendments contained in the ordinance can be designed to take effect when the marijuana ban is lifted. This is a lot of information to wade through, but I hope it is helpful in showing the background and establishing a basis for next steps. As always, if we can answer any questions you may have, please feel free to let us know. A— This map identifies existing parcels within the City of Yakima that are affected by the restrictions of the State of Washington's rules related to Licenses for Marijuana retail, manufacturing and processing operations as specified in RCW 69.50.331. In addition, this map also excluded (but did not buffer by 1000 feet) properties that were zoned residential or owned by the City of Yakima, or other government agencies. The map also identified existing parcels that qualified. In the cases where the 1000 foot buffer was applied, if a portion of the parcel was impacted by the buffer, the entire parcel was included. Approximately 878 parcels were identified that met the criteria of the State Law S— Ea, HERE, DeLo,me, Tomrom.Intern IP Hent Corp.GERCJapan MEII, E.Ch. (Hong Kong) M.I, a,Q RCW69,60.331 Application for license. 8(a) Except as provided in (b) through (d) of this subsection, the state liquor and cannabis board may not issue a license for any premises within one thousand feet of the perimeter of the grounds of any elementary or secondary school, playground, recreation center or facility, child care center, public park, public transit center, or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older. I", hl"Ad E Y A RZIT" i5,1 ACNPS, NRGAN fI). - 11, OrdnanceNL, 0,d�.S—y Esn ,tnbufi— I the GIS U,(�, C�, Marijuana Restricted Areas - Option i License Eligible Sites 1000ft Buffer Restricted Areas 1 000ft Buffer Yakima City Limits Yakima Council Districts 1-v5lld,"[ litF, l,'t a CH I)'l IlJ This map presents a modification to Option 1 Map by reducing the buffer to 500' around child care RCW 69.60.331 Application for license. 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