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Ordinance 14-021 Marijuana Moratorium CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 14-021 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON,ADOPTING A MORATORIUM ON THE ESTABLISHMENT OF ALL MARIJUANA USES OTHER THAN MARIJUANA PRODUCERS, MARIJUANA PROCESSORS, AND MARIJUANA RETAIL SALES AS LICENSED BY THE WASHINGTON STATE LIQUOR CONTROL BOARD PURSUANT TO CHAPTER 69.50 RCW AND REGULATED BY CHAPTER 19.85 SPOKANE VALLEY MUNICIPAL CODE AND SPOKANE VALLEY MUNICIPAL CODE SECTION 19.120.050,AND OTHER MATTERS RELATING THERETO. WHEREAS, since 1970, federal law has prohibited the manufacture and possession of marijuana as a Schedule I drug, based on the federal government's categorization of marijuana as having a "high potential for abuse, lack of any accepted medical use, and absence of any accepted safety for use in medically supervised treatment." Gonzales v. Raich, 545 U.S. 1, 14 (2005), Controlled Substance Act, 84 Stat. 1242,21 U.S.C. 801 et seq; and WHEREAS, Initiative Measure No. 692, approved by the voters of Washington State on November 3, 1998, and now codified as chapter 69.51A RCW, created an affirmative defense for "qualifying patients"to the charge of possession of marijuana; and WHEREAS, in 2011, the Washington State Legislature considered and passed ESSSB 5073 that, among other things, (1) authorized the licensing of medical cannabis dispensaries, production facilities, and processing facilities, (2) permitted qualifying patients to receive certain amounts of marijuana for medicinal purposes from designated providers, (3) permitted collective gardens by qualifying patients whereby they may, consistent with state law, collectively grow marijuana for their own use, (4) and clarified that cities were authorized to continue to use their zoning authority to regulate the production, processing, or dispensing of marijuana under ESSSB 5073 and chapter 69.51 A RCW within their respective jurisdictions; and WHEREAS, on April 29, 2011, former governor Christine Gregoire vetoed the portions of ESSSB 5073 that would have provided the legal basis for legalizing and licensing medical cannabis dispensaries, processing facilities, and production facilities,thereby making these activities illegal; and WHEREAS, on November 6, 2012, voters of the State of Washington approved Initiative Measure No. 502 ("I-502"), now codified in chapters 69.50, 46.04,46.20, 46.21, and 46.61 Revised Code of Washington ("RCW"), which provisions, (1) decriminalized possession and use of certain amounts of marijuana and marijuana paraphernalia; (2) amended state laws pertaining to driving under the influence of intoxicants to include driving under the influence of marijuana; and (3) established a regulatory system licensing producers, processors, and retailers of recreational marijuana for adults 21 years of age and older, and required the Washington State Liquor Control Board (the "LCB") to adopt procedures and criteria by December 1, 2013 for issuing licenses to produce,process, and sell marijuana; and WHEREAS, on August 29, 2013, the United States Department of Justice issued a memo providing updated guidance on marijuana enforcement in response to the adoption of I-502. Several ongoing federal enforcement priorities were outlined, including prevention of crime and preventing distribution of marijuana to minors. Further, the memo provided that the Department would not seek ongoing prosecution of marijuana providers, users, and local officials in states that authorized marijuana, provided that those state and local governments "implement strong and effective regulatory and enforcement systems that will address the threat those state laws could pose to public safety, public Ordinance 14-021 Page 1 of 5 health, and other law enforcement interests. A system adequate to that task must not only contain robust controls and procedures on paper; it must also be effective in practice;" and WHEREAS, the LCB has established a comprehensive regulatory scheme for the licensing, operation, and enforcement of recreational marijuana production, processing, and retail sales shops under chapter 314-55 WAC; and WHEREAS, in 2014, the Washington State Legislature considered, but did not adopt E3SSB 5887 that would have reconciled the comprehensive state regulatory scheme for recreational marijuana under I-502 and the lack of regulatory oversight and controls over medical marijuana under chapter 69.51A RCW; and WHEREAS, the possession of medical marijuana, operation of collective gardens, and services provided by designated providers remain illegal under chapter 69.51 A RCW and Cannabis Action Coalition v. City of Kent, 180 Wn. App. 455 (2014), cert. granted, with such activities only entitled to an affirmative defense; and WHEREAS, RCW 69.50.445 prohibits the opening of a package containing marijuana, useable marijuana, or a marijuana-infused product, or consumption of marijuana, useable marijuana, or a marijuana-infused product "within view of the general public," but does not otherwise regulate operation of any "private" marijuana consumption facility, "vaping" of marijuana extracts or oils, or other unlicensed marijuana operations; and WHEREAS, unlike recreational licensed marijuana production, processing, and retail sales under chapter 69.50 RCW, all other marijuana uses, including medical marijuana and businesses offering "private"consumption or "vaping,"remain unlicensed marijuana uses that are largely unregulated and are not subject to review, licensing, or enforcement by the LCB; and WHEREAS, the Washington State Legislature is likely to propose and consider legislation on medical marijuana in the upcoming 2015 Legislative session, but the City cannot determine what that legislation may provide or when or if it will be passed; and WHEREAS, the City of Spokane Valley Police have informally documented 45 marijuana-related crimes since November 13,2013, with at least 30 of those involving persons under the age of 21;and WHEREAS on July 22, 2014, the City adopted Ordinance No. 14-008, which established in chapter 19.85 of the Spokane Valley Municipal Code ("SVMC") and SVMC 19.120.050 regulations, zoning, buffers, and other limitations on marijuana producers, processors, and retail sellers licensed under chapter 69.50 RCW, but which did not regulate unlicensed marijuana uses; and WI-IEREAS, as of October 28, the City had at least 18 medical-marijuana related businesses registered within the City, all of which provide marijuana outside of the licensing, regulation, enforcement of the LCB, none of which are licensed marijuana producers, processors, or retail outlets under chapter 69.50 RCW, and none of which are subject to the City's regulations under SVMC 19.85 or SVMC 19.120.050; and WHEREAS, pursuant to Article 11, Section 11 of the Washington Constitution, the City of Spokane Valley is authorized to "make and enforce within its limits all such local police, sanitary and other regulations as are not in conflict with general laws," which includes the adoption of regulations governing land uses within the City; and WHEREAS, RCW 36.70A.390 provides that "A county or city governing body that adopts a moratorium, interim zoning map, interim zoning ordinance, or interim official control without holding a Ordinance 14-021 Page 2 of 5 public hearing on the proposed moratorium, interim zoning map, interim zoning ordinance, or interim official control, shall hold a public hearing on the adopted moratorium, interim zoning map, interim zoning ordinance, or interim official control within at least sixty days of its adoption, whether or not the governing body received a recommendation on the matter from the planning commission or department. If the governing body does not adopt findings of fact justifying its action before this hearing, then the governing body shall do so immediately after this public hearing. A moratorium, interim zoning map, interim zoning ordinance, or interim official control adopted under this section may be effective for not longer than six months, but may be effective for up to one year if a work plan is developed for related studies providing such a longer period. A moratorium, interim zoning map, interim zoning ordinance or interim official control may be renewed for one or more six-month periods if a subsequent public hearing is held and findings of fact are made prior to each renewal;"and WHEREAS, a moratorium enacted under RCW 35A.63.220 and/or RCW 36.70A.390 is a method by which local governments may preserve the status quo so that new plans and regulations will not be rendered moot by intervening development; and WHEREAS, RCW 35A.63.220 and RCW 36.70A.390 both authorize the enactment of a moratorium, interim zoning map, interim zoning ordinance, or interim official control prior to holding a public hearing; and WHEREAS, pursuant to WAC 197-11-880, the adoption of this Ordinance is exempt from the requirements of a threshold determination under the State Environmental Policy Act; and WHEREAS, the lack of regulatory oversight at any level over unlicensed marijuana uses, such as medical marijuana collective gardens, designated providers, and "private" marijuana consumption businesses, (1) creates a market for marijuana that is inconsistent with the highly regulated market established by licensed producers, processors, and retail sales by the LCB, (2) allows increased access to marijuana by minors, and (3) creates a risk to the public health, safety and welfare because of the lack of regulatory oversight and potential for abuse; and WHEREAS, on November 4, 2014, the City Council adopted its 2015-2017 Legislative Agenda, which included an item wherein the City Council stated it would "support the reconciliation of the recreational and medical marijuana statutes," "support development of one system that would regulate medical and recreational marijuana, (including the elimination of medical marijuana), in Washington State," and would"support State regulations which close gaps within current legislation: Vaping, edibles, oils, and `private' consumption/facilities; and under age possession and consumption;"and WHEREAS, additional time is necessary to allow the City to conduct appropriate research to analyze the allowance, siting, and necessary land-use regulations for unlicensed marijuana uses under existing state law, and to determine what, if any, regulations may be passed by the Washington State Legislature in the upcoming 2015 legislative session regarding unlicensed marijuana uses and the impact of such taws on unlicensed marijuana uses within the City; and WHEREAS, a moratorium will provide the City with additional time to review and amend its public health, safety, and welfare requirements and zoning and land use regulations related to the establishment and operation of unlicensed marijuana uses; and WHEREAS, Washington State law, including RCW 35A.63.220 and RCW 36.70A.390, authorizes the City to adopt a moratorium, provided the City conducts a public hearing on the moratorium within 60 days of the date of adoption of the moratorium; and WHEREAS, the City has authority to establish a moratorium concerning the establishment and operation of unlicensed marijuana uses as a necessary stop-gap measure: (1) to provide the City with an Ordinance 14-021 Page 3 of 5 opportunity to study the issues associated with allowing, siting, and regulating unlicensed marijuana uses, including determining what, if any, regulations are passed by the Washington State Legislature in the upcoming 2015 legislative session and the impacts of those laws upon unlicensed marijuana uses; (2) to protect the health, safety, and welfare of the citizens of the City of Spokane Valley by avoiding and ameliorating negative impacts and unintended consequences of additional unlicensed marijuana; and (3) to avoid applicants possibly establishing vested rights contrary to and inconsistent with any revisions the City may make for its rules and regulations as a result of the City's study of this matter; and WHEREAS, the City Council finds that the moratorium imposed and established by this Ordinance is necessary for the immediate preservation of the public health, public safety, public property and public peace. NOW, THEREFORE,the City Council of the City of Spokane Valley ordains as follows: Section 1. Preliminary Findings. The City Council hereby adopts the above recitals as findings of fact in support of this Ordinance. Section 2. Moratorium Established. A. The City Council hereby declares and imposes a moratorium upon the submission, acceptance, processing, modification or approval of any permit applications or licenses by or for unlicensed marijuana use. B. For purposes of this moratorium, "unlicensed marijuana use" means the production, growing, processing, manufacturing, extraction, infusion into edible solids, liquids or gummies, allowing consumption on the premises of, sale, distribution, or delivery of marijuana, marijuana-infused products, extracts, concentrates, oils, or any other form of product containing or derived from marijuana and intended for human use by any business, association or other for-profit or not-for-profit establishment, including but not limited to collective gardens, designated providers, medical marijuana dispensaries, or private marijuana "vaping," smoking, or consumption clubs; provided, however, "unlicensed marijuana use" shall not include any marijuana producer, marijuana processor, or marijuana retailer that has received and holds a valid marijuana producer, marijuana processor, or marijuana retailer license from the Washington Liquor Control Board pursuant to chapter 69.50 RCW and chapter 314-55 WAC;provided, further, if a building permit for work within a business is necessary in order for a business to obtain a valid marijuana license from the Washington Liquor Control Board under chapter 69.50 RCW, the City may accept and process such permit prior to the applicant receiving its license from the Washington Liquor Control Board. C. "Unlicensed marijuana use" does not and shall not include any personal possession or use of marijuana, marijuana-infused products, marijuana extracts, marijuana concentrates, marijuana oils, or other form of product containing or derived from marijuana and intended for human use by any person pursuant to chapter 69.50 RCW or by any qualifying patient pursuant to RCW 69.5IA.040. D. Nothing herein shall affect the processing or consideration of any existing and already- submitted complete land-use or building permit applications that may be subject to vested rights as provided under Washington law. Section 3. Work Plan. The following work plan is adopted to address the issues involving the City's regulation of, and the establishment of unlicensed marijuana uses: A. The City of Spokane Valley Planning Commission is hereby authorized and directed to hold public hearings and public meetings to fully receive and consider statements, testimony, positions, Ordinance 14-021 Page 4 of 5 and other documentation or evidence related to the public health, safety, and welfare aspects of unlicensed marijuana uses. B. The City of Spokane Valley Planning Commission is hereby authorized and directed to work with City staff and the citizens of the City, as well as all public input received, to develop proposals for regulations pertaining to the establishment of unlicensed marijuana uses, which regulations may provide provisions restricting or limiting unlicensed marijuana use up to and including bans, to be forwarded and recommended to the City Council for its consideration. Section 4. Public Hearing. Pursuant to RCW 35A.63.220 and 36.70A.390,the City Council shall conduct a public hearing on January 27,2015 at 6:00 p.m., or as soon thereafter as the matter may be heard, at the City of Spokane Valley City Hall, 11707 East Sprague, Spokane Valley, 99206, City Council Chambers, to hear and consider the comments and testimony of those wishing to speak at such public hearing regarding the moratorium set forth in this Ordinance. Section 5. Duration. The moratorium set forth in this Ordinance shall be in effect as of the date of this Ordinance and shall continue in effect for a period of 365 days from the date of this Ordinance, unless repealed, extended, or modified by the City Council after subsequent public hearing(s) and entry of appropriate findings of fact, pursuant to RCW 35A.63.220 and RCW 36.70A.390. Section 6. Ratification. Any act consistent with the authority set forth herein and prior to the effective date of this Ordinance is hereby ratified and affirmed. Section 7. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance. Section 8. Declaration of Emergency; Effective Date. This Ordinance is designated as a public emergency necessary for the protection of public health, safety, and welfare and therefore shall take effect immediately upon adoption by the City Council. Passed by the City Council this 9th day of December, 2014. ATT S ': Dean Grafos .yor // 7.44----, ,,, ( .4,43.--,,,,,-- -)„. -ity Clerk, Christine Bainbridge Approved as orm: :ratiO • Officet e Ci ttorney Date of Publication: December 12, 2014 Effective Date: December 9, 2014 Ordinance 14-021 Page 5 of 5