HomeMy WebLinkAboutItem 14 Regulations for Medical Marijuana Dispensaries AGENDA ITEM SUMMARY Meeting Date: 7/21/2014
Meeting Type: Regular Meeting
Staff Contact/Dept.: Lauren King, CAO
Jim Donovan, DPW
Staff Phone No: 541-726-3660
Estimated Time: 15 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Enhance Public Safety
ITEM TITLE: REGULATIONS FOR MEDICAL MARIJUANA DISPENSARIES
ACTION
REQUESTED:
Conduct a public hearing and adopt/amend/not adopt the following ordinance: AN
ORDINANCE AMENDING THE SPRINGFIELD MUNICIPAL CODE
CHAPTER 7 REGARDING MEDICAL MARIJUANA DISPENSARIES, AND
DECLARING AN EMERGENCY;
Adopt/not adopt the following resolution: A RESOLUTION OF THE COMMON
COUNCIL OF THE CITY OF SPRINGFIELD AMENDING THE MASTER FEES
AND CHARGES SCHEDULE AS ESTABLISHED BY THE SPRINGFIELD
MUNICIPAL CODE IN ORDER TO INCLUDE A BUSINESS LICENSE FEE
FOR MEDICAL MARIJUANA DISPENSARIES
ISSUE
STATEMENT:
Under SB 1531 (2014) local governments may impose “reasonable regulations” on
dispensaries. Council has reviewed regulations that seek to meet community
priorities of preventing the distribution of marijuana to minors and ensuring that
medical marijuana dispensaries are adequately regulated by the city.
ATTACHMENTS: Attachment 1 –Council Briefing Memorandum from 7/14/2014 Work Session
(memo only)
Attachment 2 – Final Draft Ordinance
Attachment 3 – Fee Resolution
DISCUSSION/
FINANCIAL
IMPACT:
In April, staff and the City Attorney’s Office received Council direction to not
adopt a moratorium but requested that staff return with potential regulations that
protect children and allow the city to better regulate the new use.
Council has reviewed concepts for municipal code and zoning regulations, along
with feedback from representatives of the public and dispensary business
community. Consistent with the direction provided by Council on July 14, 2014, the
attached ordinance is presented for emergency adoption and implementation. The
ordinance accomplishes the following:
Creates definitions for regulation
Requires dispensaries to obtain a business license, pay a fee and abide by
adopted regulations (the fee is set at $500 annually).
Requires all employees to undergo a background check
New dispensaries shall locate in accordance with state regulations and local
zoning regulations
Precludes minors on site
Requires labeling for product contents and protection of children
Requires compliance with the City sign ordinance
Sets hours of operation at 7:00 a.m. to 9:00 p.m.
Precludes free distribution
Precludes public consumption on site
These regulations will become effective immediately if adopted under emergency
procedures. Under Oregon’s land use laws, additional locational standards or other
changes to the Springfield Development Code will be brought back for Planning
Commission and City Council work sessions and action in October.
M E M O R A N D U M City of Springfield
Date: 7/14/2014
To: Gino Grimaldi COUNCIL
BRIEFING
MEMORANDUM
From: Lauren King
Jim Donovan
Subject: Regulating Medical Marijuana Dispensaries
ISSUE: Shall the City adopt regulations that allow for the regulation of medical
marijuana dispensaries for the purposes of protecting the public health and safety?
COUNCIL GOALS/
MANDATE:
Enhance Public Safety
BACKGROUND:
Oregon House Bill 3460 (2013) authorized the Oregon Health Authority (OHA) to
establish and regulate a medical marijuana facility (dispensary) registration system.
Under that law, registered medical marijuana dispensaries were authorized to sell
medical marijuana beginning March 1, 2014. To better clarify a local government’s
ability to regulate the facilities, the Oregon Legislature passed Senate Bill 1531 (2014).
SB 1531 provided that cities may only impose “reasonable regulations” on the hours of
operation; limitations on where the facility may locate in the authorized zones; and
reasonable conditions on the manner in which a facility may dispense medical
marijuana.
In April, staff and the City Attorney’s Office sought guidance from Council as to
whether the city should adopt a moratorium on medical marijuana facilities while
deliberating and adopting any necessary adjustments to the City Code. Council elected
not to adopt a moratorium but requested that staff return with potential regulations that
protect children and allow the city to better regulate the new use.
This Council Briefing Memorandum is prepared at Council’s request. The briefing
memo presents potential regulations based on Council priorities.
On June 27, 2014, staff met with representatives from the local medical marijuana
industry. Staff reached out to five industry representatives from the growing, testing and
dispensary sectors of the business community. Brenda Young, owner of Wikit Weedery
in Springfield, and Callie Cooper, Executive Director of Cannabis Research Institute
attended the meeting. Staff presented the industry representatives with the attached
handout (Attachment 5) and sought their feedback on each of the potential regulations.
In general, the representatives were generally receptive of the proposed regulations.
Feedback as it relates to specific potential regulations is included below.
1. Protect Children In August of 2013, the United States Department of Justice
issued the “Cole Memo” providing federal guidance regarding marijuana
enforcement. The memo outlines enforcement priorities and states that
7/18/2014 Page 2
“[p]reventing the distribution of marijuana to minors” is particularly important to
the federal government. The City Council agrees with this priority and is
seeking to enact local measures to ensure that minors do not have access to
marijuana unless that minor is a patient and accompanied by an adult or legal
guardian. Accordingly, the following local regulations are recommended:
a. No Minors on Premises. Under the OHA regulations, a minor may not be
“present in any area of a registered [dispensary] where usable marijuana or
immature plants are present, even if the minor is a patient or an employee.”
However, OHA regulations do not prohibit minors or non-card holders from
entering into a dispensary and waiting in a waiting room, lobby, or other area
of the dispensary where there is no “usable marijuana or immature plants.”
Potential Municipal Code Regulation: Have to be a cardholder to be on the
premises and no minors on the premises unless they are accompanied by
legal parent or guardian for the sole purpose for procuring the minor’s
medicine. Feedback from Industry: Industry representatives supported a total
ban of minors because any minor has to have an adult guardian responsible
for procuring their medication.
b. Locational restrictions to protect children. OHA regulations prohibit a
dispensary from locating at the same address as a grow site; within 1,000 feet
of an elementary, secondary or career school; within 1,000 feet of another
dispensary. Potential Development Code Regulation: Prohibit dispensary
from locating within 1,000 feet of public parks; state licensed commercial
pre-schools and daycares; and residential zones. Feedback from Industry: At
the time of our meeting with the industry, the attached map (Attachment 4)
was not yet finalized. Without the availability of the map, the industry
representatives felt that the residential restrictions could largely prohibit
medical marijuana from most commercial areas of the city. Suggestions
included considering a 100 foot setback from parks and not including the
additional locational buffers from residential areas.
c. Labeling Requirements. Under the OHA regulations, prior to transferring
usable marijuana a dispensary must affix a label that includes: (a) The
amount of THC and CBD in the usable marijuana; (b) If pre-packaged, the
weight or volume of the packaged usable marijuana in metric units; (c) The
amount of usable marijuana in a finished product in metric units; (d) Potency
information; and (e) Who performed the testing. Additionally, all edible
marijuana must include a warning label that states: “WARNING:
MEDICINAL PRODUCT — KEEP OUT OF REACH OF CHILDREN” in
bold capital letters, in a font size that is larger than the type-size of the other
printing on the label such that it is easy to read and prominently displayed on
the product. Potential Development Code Regulation: Adopt the same
language into the Springfield Municipal Code to allow local code
enforcement has the ability to ensure and regulate that this information is
included in the packaging. It is worth noting that, this may be difficult for
the city to enforce and lack of enforcement may open potential liability for
the city.
2. Land Use As stated above, OHA regulations prohibit a dispensary from
locating at the same address as a grow site; within 1,000 feet of an elementary,
secondary or career school; within 1,000 feet of another dispensary. This
regulation, however, is not included in the Springfield Development Code and,
7/18/2014 Page 3
thus, the city is unable to identify and regulate changes of use without the
addition of the new use in the Development Code. Potential Development Code
Regulation: Dispensaries should be added to the list of permitted uses in general
commercial, and mixed use zones where the primary use is not residential,
subject to buffer zones discussed above. Listing and definition of the use allows
normal processing and enforcement of appropriate planning and building
approvals. Feedback from the Industry: The industry representatives’ concerns
regarding buffers are identified above. The industry representatives were
amenable to adding a marijuana industry category and permitted uses to
applicable zoning overlay districts consistent with other listed uses in the city.
3. Sign Code OHA has no regulations relating to the Sign Code. Under the Oregon
Constitution, all expression is equal and equally protected. Any law that focuses
on the content of speech or writing and is written in terms that are directed to the
substance of any subject are “on their face” unconstitutional. Accordingly, the
city cannot enact restrictions on signs or promotional advertising that is specific
to medical marijuana.
a. Re-enforce Sign Code Regulations. Although not necessarily new or
additional regulation, by restating in the medical marijuana section of
the code that the sign code applies to these businesses, it will re-enforce
the requirements for the businesses. These requirements include the
requirement to obtain a permit and prohibit use of logos that are not that
of the business. Potential Development Code Regulation: All marijuana
businesses are subject to the requirements of the Springfield Sign Code.
Feedback from the Industry: The industry representatives had no
concerns with this regulation.
4. Miscellaneous Operational Regulations. In accordance with Senate Bill 1531
(2014), the city may impose “reasonable regulations” on the hours of operation;
limitations on where the facility may locate in the authorized zones; and
reasonable conditions on the manner in which a facility may dispense medical
marijuana. The following are recommended measures to regulate the hours of
operation and the manner in which medical marijuana is dispensed.
a. Hours of Operation. Potential Municipal Code Regulation: No sales,
delivery or other operations upon the premises between 7:00 pm and 8:00
am. Feedback from the Industry: The industry representatives felt these
time limitations were too restrictive and would limit the ability for some
customers to acquire their marijuana. Industry representatives suggested
that most patients would be better served by allowing operating hours of
7:00 am to 9:00 pm.
b. Giveaways. Potential Municipal Code Regulation: Dispensaries may not
distribute to any consumers marijuana or marijuana-infused products free
of charge. Staff feels that sales incentives and samples are inappropriate
under medical marijuana provisions. It is worth noting that this may be
difficult to enforce. Feedback from the Industry: Many of the
dispensaries in Oregon and other states give out “free” products or
provide their customers with promotional giveaways through “rewards
programs.”
7/18/2014 Page 4
c. Business License. By requiring a business license, the city can ensure
that all new medical marijuana dispensaries register with the city.
Potential Municipal Code Regulation: Dispensaries must obtain a
business license and register with the city. This ensures that the city is
aware of all certified dispensaries operating in the city and that they
comply with local buffer requirements. Feedback from Industry: The
industry representatives had no concerns with this regulation but
suggested that any business license fee was not so high as to prohibit
smaller, “mom and pop” businesses from opening in Springfield. The
representatives in attendance acknowledged other cities and states having
licenses in the range of 500 to 1000 dollars and were amenable to this
range. Staff suggests that licenses be reviewed annually with a fee of
$500.
d. Background Check. OHA requires that the owner of a dispensary
undergo a background check and not have been convicted of certain
crimes. There are no similar requirements under the OHA for employees
or volunteers of a dispensary. Potential Municipal Code Regulation:
Employees, volunteers and agents of a dispensary must undergo a
background check at the time the dispensary applies for a business
license with the city. The background check would be required and
verified with annual licenses and preclude employees from having certain
felony convictions. License fees would cover the cost of background
checks. Feedback from Industry: The industry representatives have no
concern with this potential regulation.
e. Display of State license. Potential Municipal Code Regulation:
Dispensaries must display their OHA license in a manner visible and
readable, at or near the entrance to the facility. This ensures that staff is
aware that the dispensary is lawfully licensed under the OHA regulations.
f. No Consumption of Marijuana Premises. The OHA regulations require
that no consumption, ingestion, inhalation, or topical application of
usable marijuana is permitted on the premises. There is an exception for
employees. Only an employee of a registered dispensary, who is a
patient, may consume usable marijuana during their work shift as
necessary for his/her medical condition, in a closed room, alone if
smoking, not visible to the public or to patients. Potential Municipal
Code Regulation: Restate the OHA requirement, including the exemption
for an employee of the dispensary who is a patient.
7/17/2014 Page 5
RECOMMENDED ACTION:
This packet of regulations includes recommended changes to the Springfield Municipal
Code and the Springfield Development Code. Council may adopt the changes to the
Municipal Code as an emergency on July 21, 2014. Under Oregon’s land use law, the changes to the Development Code requires that the City notify DLCD 35 days prior to
the public hearing for new code changes. Public notice of the code changes is required
and any changes should first be considered by the Planning Commission. Following the
Planning Commission’s recommendation, City Council can then consider the code
amendments to zoning districts upon their return from summer break.
We recommend Council adopt the changes to the Municipal Code and direct staff to
initiate the process for changing the Development Code.
Attachment 1, Page 5 of 5