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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
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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'
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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
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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—
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