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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