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Agenda 09/24/2015 SPoltc44mh1b Valle Y Spokane Valley Planning Commission Meeting Agenda City Hall Council Chambers, 11707 E. Sprague Ave. September 24, 2015 6:00 p.m. I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. APPROVAL OF AGENDA V. APPROVAL OF MINUTES: September 10, 2015 VI. COMMISSION REPORTS VII. ADMINISTRATIVE REPORT VIII. PUBLIC COMMENT: On any subject which is not on the agenda. IX. COMMISSION BUSINESS: A. Findings: CTA-2015-0005, Proposed amendments to Spokane Valley Municipal Code (SVMC) Chapter 17.80 Permit Processing Procedures, Chapter 18.20 Hearing Examiner, Appendix A — Definitions B. Study Session: Amendment to the Spokane Valley Municipal Code (SVMC) 19.85 and Appendix A —Recreational and Medical Marijuana Regulations X. FOR THE GOOD OF THE ORDER XI. ADJOURNMENT Minutes Spokane Valley Planning Commission Council Chambers—City Hall, September 10,2015 Chairman Stoy called the meeting to order at 6:00 p.m. Commissioners, staff and audience stood for the pledge of allegiance. Ms.Heath took roll and the following members and staff were present: Kevin Anderson Erick Lamb City Attorney Heather Graham, absent excused Lori Barlow, Senior Planner Tim Kelley Marty Palaniuk,Planner Mike Phillips Susan Scott Joe Stoy Sam Wood Elisha Heath, Secretary of the Commission Hearing no objections, Commissioner Graham was excused from the meeting. Commissioner Anderson moved to approve the September 10, 2015 agenda. The vote on the motion was six in favor, zero against, the motion passes. Commissioner Anderson moved to accept the August 27, 2015 minutes as presented. The Commission approved minutes with a vote on the motion of six in favor, zero against. COMMISSION REPORTS: Commissioner Kelley reported he attended the Traders Club Meetings. Commissioner Wood attended the Spokane Home Builders Association Government Affairs Meeting. The other Commissioners had no reports. ADMINISTRATIVE REPORT: Senior Planner Lori Barlow reported the Shoreline Master Program (SMP)became effective September 3, 2015. October 1, 2015 the city of Rockford is holding a short course on local planning 6:00 p.m. - 9:00 p.m. at the Rockford Council Chambers. PUBLIC COMMENT: Dan Pavelich, 4311 S. Madison Road: Mr. Pavelich stated his residence is adjacent to the former Painted Hills Golf Course and he is not a resident of Spokane Valley, rather Spokane County within the 400 foot buffer for the proposed development. He stated that he wanted to attend to become familiar with the Planning Commission members. Mr. Pavelich thanked Ms. Barlow, staff and others at the City for cooperation extended to his group when requesting a significant amount of information. He thanked the members of the Planning Commission for their service to the City. COMMISSION BUSINESS: Public Hearing: CTA-2015-0005 Proposed Amendment to Spokane Valley Municipal Code (SVMC) Chapter 17.80 Permit Processing Procedures, Table 17.80-1 —Permit Type and Land Use Application; SVMC Chapter 18.20 Hearing Examiner, Section 18.20.030 — Powers and Duties; SVMC Appendix A,Definitions. Chairman Stoy opened the Public Hearing at 6:11 p.m. Planner Marty Palaniuk gave a presentation to the Commission outlining the proposed amendments to SVMC 17.80 Permit Processing Procedures, Table 17.80-1 Permit Type and Land Use Application; SVMC Chapter 18.20 Hearing Examiner, Section 18.20.030 Powers and Duties; SVMC Appendix A, Definitions. Amend the SVMC to provide consistency with the newly adopted 09-10-15 Planning Commission Minutes Page 1 of 3 Shoreline Master Program (SMP). There are also some code compliance housekeeping items included in this amendment. Within Appendix A staff deleted the shoreline specific definitions from the development code. If one of the definitions were to change staff would only need to update one document. Mr. Palaniuk listed the definitions that had been deleted. The proposed amendment will also modify Table 17.80-1, which is a table of all the permits the City processes, and clarifies what type of permit applies to each land use application. The SMP establishes the process for the following permits: a shoreline letter of exemption; a shoreline conditional use permit; a shoreline variance; and a substantial development permit. Additional language is proposed to be added to the end of Chapter 17.80 to call out any procedures and processes within the SMP that may also apply to the permit. Within the table: • added a shoreline letter of exemption; • deleted shoreline permit exemption,a dock permit; • added a shoreline conditional use permit, a shoreline nonconforming use/structure review, and shoreline variance to the table in Type II permits. In Section C Mr. Palaniuk highlighted the additional language which clarifies if anything in the SMP applies to a specific permit as far as processing then that protocol will be followed. The amendment will also modify Chapter 17.90 Decision and Appeals authority which calls out that the shoreline permits will be appealed to the Shoreline Hearings Board. Commissioner Wood asked for clarification of the Shoreline Hearing Board. Ms. Barlow stated that the Shoreline Hearing Board is a state appointed board. Mr. Lamb further explained that the SMP is a state mandate with strict guidelines to follow including using the Shoreline Hearing Board as the appeal authority. It is composed of three permanent Shoreline Hearing Board employees, members of the Association of Counties, Association of Washington Cities and the Commissioner of Public Lands. Commission Wood asked if the Hearing Examiner was previously the appeal authority. Mr. Lamb explained that the Code previously identified the Shoreline Hearing Board; the proposed change is a change to shoreline permits in the SMP. Commissioner Wood asked if shoreline permit appeal decisions would be made regionally and not locally. Ms. Barlow clarified that the appeals have always gone to the Shoreline Hearings Board and will continue to do so. Powers and Duties of the Hearing Examiner previously included conditional use permits and variance permits. They will now be administratively reviewed by the Department followed by Department of Ecology. The addition of shoreline letter of exemption, appeal to the duties of the Hearing Examiner. Mr. Palaniuk clarified that the Hearing Examiner will be hearing appeals of shoreline letters of exemption, and not making the decision on shoreline letters of exemption. Chairman Stoy opened the floor to public comment, hearing none the Public Hearing was closed at 6:25 p.m. Commissioner Anderson moved to approve CTA-2015-0005 Amendment to Spokane Valley Municipal Code (SVMC) Chapter 17.80 Permit Processing Procedures, Table 17.80-1 Permit Type and Land Use Application; SVMC Chapter 18.20 Hearing Examiner, Section 18.20.030 Powers and Duties; SVMC Appendix A, Definitions, as presented.Motion seconded and opened for discussion. Commissioner Wood stated that he prefers for things done in the community to be approved by us and not the state. He asked for verification that the process was required by state law, and that it can't be changed. Mr. Lamb stated that is correct. Chairman Stoy reminded the Commission that the decision which is going to the state level is an appeal not the issuing of the permit. Ms. Barlow further expanded on who might file an appeal to a decision on a permit. Commissioner Anderson asked for clarification that the only change from Study Session to current presentation was the addition of the word appeals in SVMC 18.20 "Shoreline letter of exemption appeals". Mr. Palaniuk stated yes and he expanded that the additional text in the staff report was to provide more explanation. Chairman Stoy called for the vote on the motion was six in favor, zero against, the motion passes. 09-10-15 Planning Commission Minutes Page 2 of 3 GOOD OF THE ORDER: Nothing presented. ADJOURNMENT: There being no other business the meeting was adjourned at 6:30 p.m. Joe Stoy,Chairperson Date signed Elisha Heath, Secretary 09-10-15 Planning Commission Minutes Page 3 of 3 CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: September 24,2015 Item: Check all that apply: ❑ old business ®new business ❑ public hearing ❑ information ❑ study session FILE NUMBER: CTA-2015-0005 AGENDA ITEM TITLE: Findings —Spokane Valley Municipal Code (SVMC) Code Text Amendment to achieve consistency with the Shoreline Master Program(SMP). DESCRIPTION OF PROPOSAL: City-initiated Code Text Amendment to update Spokane Valley Municipal Code (SVMC) Chapter 17.80 Permit Processing Procedures, Table 17.80-1 —Permit Type and Land Use Application; Chapter 17.90 Appeals, Table 17.90-1 — Decision/Appeal Authority, SVMC Chapter 18.20 Hearing Examiner, Section 18.20.030 — Powers and Duties; SVMC Appendix A Definitions. Proponent: City of Spokane Valley Community and Economic Development Department GOVERNING LEGISLATION: RCW 36.70A.106; SVMC 17.80.150 and 19.30.040 PREVIOUS ACTION TAKEN: A study session was conducted at the August 27, 2015, Planning Commission meeting. The Planning Commission held a public hearing on the matter at its September 10, 2015,meeting. BACKGROUND: On December 9, 2014, the City Council approved Ordinance No. 14-020, adopting the Shoreline Master Program (SMP) in order to submit the document to the Department of Ecology (DOE) for review and approval. On August 21, 2015, DOE approved the SMP with an effective date of September 3, 2015. As a result,the SVMC must be modified to be consistent with the permit procedures and defmitions contained in the updated SMP. The Planning Commission held a public hearing on the proposed amendment at its September 10, 2015 meeting. The Planning Commission deliberated on the matter following the hearing. The Commission voted 6-0 in favor of a motion to recommend approval of the proposed amendment to City Council. RECOMMENDED ACTION OR MOTION: Approve the findings recommending approval of the proposed amendment to City Council. STAFF CONTACT: Martin Palaniuk,Planner ATTACHMENTS: 1. Findings RPCA for CTA-2015-0005 Findings of Fact FINDINGS AND RECOMMENDATIONS OF THE SPOKANE VALLEY PLANNING COMMISSION FOR CTA-2015-0005 September 24,2015 These findings are consistent with the Planning Commission's decision to recommend approval. Background: 1. Spokane Valley development regulations were adopted in September 2007 and became effective on October 28,2007. 2. CTA-2015-0005 is a City-initiated Code Text Amendment to update Spokane Valley Municipal Code (SVMC) 17.80 Permit Processing Procedures, Table 17.80-1 — Permit Type and Land Use Application; SVMC 17.90 Appeals; SVMC 18.20 Hearing Examiner, Section 18.20.030 — Powers and Duties; SVMC Appendix A — Definitions. The changes are designed to achieve consistency between the SVMC and the Shoreline Master Program. 3. The Planning Commission held a public hearing and conducted deliberations on September 10, 2015. The Planning Commission voted 6-0 to recommend approval to City Council. Planning Commission Findings: 1. Compliance with SVMC 17.80.150F Approval Criteria a. The proposed city initiated code text amendment is consistent with the applicable provisions of the Comprehensive Plan; Finding(s): Chapter 8-Natural Environment Element of the Comprehensive Plan includes the goals and policies of the Shoreline Master Program(SMP)as goals and policies of the Comprehensive Plan. The proposed amendments are consistent with the SMP as the goals and policies of the SMP are included as goals and policies of the Comprehensive Plan. The amendments are therefore consistent with the Comprehensive Plan. The amendments are consistent with the following Comprehensive Plan policies: Land Use Policy-13.1: Maximize efficiency of the development review process by continuously evaluating the permitting process and modifying as appropriate. Economic Policy EDP-7.1: Evaluate,monitor and improve development standards to promote compatibility between adjacent land uses;and update permitting processes to ensure that they are equitable,cost-effective, and expeditious. Economic Policy EDP-7.2: Review development regulations periodically to ensure clarity,consistency and predictability. b. The proposed City-initiated amendment bears a substantial relation to public health, safety, welfare,and protection of the environment. Finding(s): The amendments are consistent with the Shoreline Master Program where the purpose is to protect the public interest in the shoreline,preserve the natural character of the shoreline,advocate long term over short term benefit,protect the resources and ecology of the shoreline,increase public access to publicly owned shoreline areas,and increase public recreational opportunities in shoreline areas. For this reason the amendments bear a substantial relation to public health,safety,welfare,and protection of the environment. Findings and Recommendations of the Spokane Valley Planning Commission-CTA-20 15-0005 Page 1 of 2 2. Conclusion(s): a) The Shoreline Management Act stipulates local governments shall amend their master program for regulation of uses of the shorelines of the state consistent with the required elements of the guidelines adopted by the Department of Ecology. b) The goals and policies of the SMP are considered an element of the City's Comprehensive Plan. c) Spokane Valley development regulations are designed to implement the City's Comprehensive Plan and therefore must be consistent with the Plan. d) The proposed text amendment is consistent with the City's Comprehensive Plan and the approval criteria contained in SVMC 17.80.150(F). Recommendations: The Spokane Valley Planning Commission therefore recommends City Council adopt the proposed amendments to SVMC 17.80 Permit Processing Procedures, Table 17.80-1 —Permit Type and Land Use Application; SVMC 17.90 Appeals; SVMC 18.20.030 — Powers and Duties; SVMC Appendix A — Definitions. Approved this 24th day of September,2015 Joe Stoy,Chairman ATTEST Deanna Horton,Administrative Assistant Findings and Recommendations of the Spokane Valley Planning Commission-CTA-2015-0005 Page 2 of 2 CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: September 24, 2015 Item: Check all that apply: n consent n old business n new business n public hearing n information ® admin.report n pending legislation FILE NUMBER: CTA-2015-0006 AGENDA ITEM TITLE: Study session — Amendment to the Spokane Valley Municipal Code SVMC 19.85 and Appendix A—Recreational and Medical Marijuana Regulations DESCRIPTION OF PROPOSAL: City initiated code text amendment to Spokane Valley Municipal Code (SVMC) chapter 19.85 and Appendix A updating marijuana regulations based upon changes in State medical marijuana laws, adding regulations for the production and processing of medical marijuana by qualified patients for personal use in residential zones,and prohibiting marijuana cooperatives. GOVERNING LEGISLATION: RCW 36.70A.106; RCW 69.50 (codifying Initiative 502); RCW 69.51A; SVMC 17.80.150 and 19.30.040; SVMC 19.85; SVMC 19.120.050 PREVIOUS ACTION TAKEN: None by Planning Commission; City Council has adopted regulations as set forth in SVMC 19.120.050 and SVMC 19.85 for the zoning and buffering of recreational marijuana and further adopted a moratorium on all new marijuana uses which are not licensed by the Washington State Liquor and Cannabis Board(primarily medical marijuana). BACKGROUND: In December of 2014,the Spokane Valley City Council adopted Ordinance No. 14- 021 which established 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 and Cannabis Board(L&CB). This included all medical marijuana establishments,which at the time were not regulated by the State or L&CB. Pursuant to Ordinance No. 14-021,the City established a work plan to work through and adopt permanent regulations for such medical marijuana uses. This proposal constitutes the permanent regulations required pursuant to Section 3 of Ordinance No. 14-021. The proposal is to amend Spokane Valley Municipal Code (SVMC) 19.85 and Appendix A by(1)adding definitions for medical marijuana endorsed retail stores and marijuana cooperatives, (2) adding buffer limits between licensed retail stores,including retail stores with medical marijuana endorsements,to prohibit licensed retail stores from locating within 1,000 feet of another licensed production,processing, or retail store,(3)prohibiting marijuana cooperatives from all zones, (4)clarifying all licensed facilities are subject to applicable local laws,including local building codes,and(5)requiring any home-growing by qualified patients as allowed by state law to be conducted only in single family residential zones in permanent structures that are opaque and not visible by neighbors or from the public rights-of-way. NOTICE: Notice for the proposed amendment to SVMC was sent to the Spokane Valley News Herald for publication on September 25,2015 and October 2,2015. Notice for the proposed amendment was provided consistent with applicable provisions of SVMC Title 17. APPROVAL CRITERIA: SVMC Section 17.80.150(F)provides approval criteria for text amendments to the SVMC. The criterion stipulates that the proposed amendment(s)must be consistent with the applicable provisions of the Comprehensive Plan and bear a substantial relation to the public health, safety,welfare, and protection of the environment. RECOMMENDED ACTION OR MOTION: No action recommended at this time. The Planning Commission will conduct a public hearing and consider the proposed amendments on October 8,2015. STAFF CONTACT: Christina Janssen—Planner Erik Lamb—Deputy City Attorney ATTACHMENTS: A. Staff Report,including copy of Ordinance No. 14-021 B. Proposed SVMC Appendix A and SVMC 19.85 C. Presentation 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 6930 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 69.51A 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 69.51A 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 WHEREAS, 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 laws 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 36.70A390, 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 69.51A.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 ity Clerk, Christine Bainbridge Approved as , orm: /vaa Officehe Ci ttorney Date of Publication: December 12,2014 Effective Date: December 9,2014 Ordinance 14-021 Page 5 of 5 ATTACHMENT A COMMUNITY DEVELOPMENT DEPARTMENT 01* PLANNING DIVISION Sjökane lle STAFF REPORT AND RECOMMENDATION TO THE PLANNING COMMISSION CTA-2015-0006 STAFF REPORT DATE: September 24,2015 HEARING DATE AND LOCATION: October 8, 2015, beginning at 6:00 p.m., Spokane Valley City Hall Council Chambers, Valley Redwood Plaza Building, 11707 East Sprague Avenue, Suite 101, Spokane V alley,Washington 99206. PROPOSAL DESCRIPTION: A city initiated text amendment to Spokane Valley Municipal Code (SVMC) to amend SVMC 19.85 and Appendix A to add definitions and modify the regulations for the zoning and buffering of state-licensed production,processing, and retail sales of marijuana, including regulations for licensed retail stores with medical marijuana endorsements, to prohibit marijuana cooperatives, and add general requirements for all home-growing by qualified patients in residential zones. PROPONENT: City of Spokane Valley Community Development Department, 11707 E Sprague Ave, Suite 106, Spokane Valley,WA 99206. APPROVAL CRITERIA: Spokane Valley Comprehensive Plan, Spokane Valley Municipal Code (SVMC) Title 17 General Provisions. SUMMARY OF RECOMMENDATION: The Planning Division recommends the Planning Commission approve the proposed amendment. STAFF PLANNER: Christina Janssen,Planner, Community Development Department ATTACHMENTS: Exhibit 1: Ordinance No. 14-021, adopting a moratorium on all marijuana uses other than recreational production,processing, and retail uses licensed by the Washington State Liquor and Cannabis Board. Exhibit 2: Proposed text amendment to SVMC 19.85 and Appendix A. A. BACKGROUND INFORMATION 1. APPLICATION PROCESSING: SVMC Chapter 17.80, Permit Processing Procedures. The following summarizes application procedures for the proposal. Process Date Ordinance 14-002 passed, adopting interim definitions 2/11/14 and regulations for state-licensed recreational marijuana Ordinance 14-004 passed, adopting amendments to the 4/22/14 interim regulations for state-licensed recreational marijuana Process Date Ordinance 14-008 passed, adopting definitions and 7/22/14 regulations for state-licensed recreational marijuana and repealing interim development regulations adopted pursuant to ordinances 14-002 and 14-004 Ordinance 14-021 passed, adopting a moratorium on the 12/9/14 establishment of all marijuana uses other than marijuana producers, marijuana processors, and marijuana retail sales as licensed by the Washington State Liquor and Cannabis Board (previously the "Liquor and Control Board"). SEPA Determination TBD Published Notice of Public Hearing 9/25/15 and 10/02/15 Sent Notice of Public Hearing to staff/agencies 9/24/15 PROPOSAL BACKGROUND: The proposal is to amend Spokane Valley Municipal Code (SVMC) 19.85 and Appendix A by(1) adding defmitions for medical marijuana endorsed retail stores and marijuana cooperatives, (2) adding buffer limits between licensed retail stores,including retail stores with medical marijuana endorsements,to prohibit licensed retail stores from locating within 1,000 feet of another licensed production,processing,or retail store, (3)prohibiting marijuana cooperatives from all zones,(4) clarifying all licensed facilities are subject to applicable local laws,including local building codes, and(5) requiring any home-growing by qualified patients as allowed by state law to be conducted only in single family residential zones in permanent structures that are opaque and not visible by neighbors or from the public rights-of-way. Recreational Marijuana Background: Recreational marijuana was legalized within Washington State with the passage of Initiative 502 (I-502) in November 2012. The State has worked over the last three years to develop extensive regulations for licensing and permitting of production(growing),processing,and retail sales of recreational marijuana. All recreational marijuana facilities must be licensed by the Washington State Liquor and Cannabis Board (the L&CB). The L&CB began accepting and processing applications in November 2013, and issued the first production and processing licenses within Spokane Valley in March 2014. As provided by law,the L&CB developed rules to allocate a limited number of retail licenses within each jurisdiction. The City was allocated three recreational retail licenses and the L&CB has issued all three licenses and all shops are open and operational. Under state law,there is no restriction on the number of production and processing facilities allowed. Currently,the City has 19 licensed production and 21 licensed processing facilities. State law provides 1,000 foot buffers between licensed marijuana facilities and several sensitive uses, including schools,libraries, and public parks,but excludes trails and undeveloped school or library property. The L&CB enforces the state buffers through the state licensing process. On January 16,2014, a Washington Attorney General Opinion was released that provided that the Attorney General's opinion was that local jurisdictions were not preempted by I-502 from adopting local regulations and restrictions on state-licensed recreational marijuana uses. The City's buffers are in addition to the state-mandated buffers and are enforced by the City. All marijuana uses remain illegal under the federal Controlled Substances Act. However,the United State Department of Justice has released a policy to not prosecute licensed marijuana providers in states which have legalized marijuana and which have a strong enforcement and regulatory scheme. Page 2 of 7 Medical Marijuana Background: In 1998,voters approved the medical use of marijuana by initiative,though approval was limited in scope. In 2011,the Washington State Legislature adopted amendments to the medical marijuana laws that would have created a state registry for patients and legalized dispensaries and collective gardens. The Governor vetoed all sections related to the state registry and dispensaries,creating a large amount of confusion and leaving collective gardens as the sole means for producing and procuring medical marijuana. The City did not adopt regulations at that time,but issued business registrations for collectives,provided they were located in a zone where retail sales were appropriate. With the passage of I-502 and legalization of recreational marijuana,there developed two very distinct and separate marijuana regulatory regimes—a licensed and regulated recreational market and an unregulated and unlicensed medical market. In 2015,the Washington State Legislature passed major changes to existing medical marijuana laws in an effort to reconcile the medical and recreational marijuana markets. There were two primary bills passed as part of the changes: Second Substitute Senate Bill 5052 (Cannabis Patient Protection Act) and Second Engrossed Second Substitute House Bill 2136. The major changes included the following: Reconcile Medical and Recreational Marijuana Markets - Establishes a "medical marijuana endorsement" for licensed marijuana retailers. This endorsement allows a licensed retailer to sell medicinal marijuana to qualifying patients and designated providers. • The medical marijuana endorsement does not prohibit the licensed retailer from also selling recreational marijuana. • Qualifying patients and designated providers may receive an exemption from the State's marijuana tax when purchasing medical marijuana from a licensed retailer with a medical marijuana endorsement. - Creates a medical marijuana authorization database that qualifying patients and designated providers must be entered in to. • Patients and providers will obtain "recognition cards" that authorize them to purchase medical marijuana. • The database must be operational by July 1, 2016. -Collective gardens must cease operations as of July 1,2016. Changes to Licensing -L&CB must reconsider and increase number of retail outlets to accommodate medical marijuana needs. - L&CB must develop merit based application process for new retail licenses. - L&CB must increase canopy limits for producers to account for medical marijuana needs. - Restricts the use of butane or other gases for marijuana extraction to validly licensed marijuana processors(no home extraction with these types of gases and solvents). -Retailers may not sell through vending machines or by drive-up windows. -Establishes a transportation license for common carriers delivering between licensed facilities. -Establishes a research license. • Allows licensed researchers to research chemical potency, clinical investigations into marijuana-derived drug products, and efficacy and safety of administering marijuana as medical treatment, and to conduct genomic or agricultural research. - Requires signage at the premises of prospective producers, processors, and retailers providing notice to the public of the intent to license the facilities as a marijuana producer, processor, or retailer. Allow for "Cooperatives"(effective July 1, 2016) Page 3 of 7 - Allows for the creation of medical marijuana "cooperatives" that may be formed by up to four qualifying patients or designated providers. • Cooperatives cannot be located within a mile of marijuana retailers or within 1,000 feet of schools, playgrounds, recreation centers, child care centers, public parks, public transit centers,library,or applicable game arcades. • Cooperative locations must be registered with the L&CB. • The location of a cooperative must be a domicile of one of the participants and only one cooperative may be located on a single property tax parcel. • Cooperatives may grow up to a maximum of 60 plants. • The L&CB may adopt rules relating to security and traceability requirements for cooperatives. • Cooperatives are not considered businesses (since they only distribute to the four members), so no business licenses or taxes. • May not locate where prohibited by a city or county zoning provision. Qualified Patients and Designated Providers -Must receive authorization from health care professional. - Authorization and recognition card issued once entered into the database are necessary to receive arrest protection. - May keep amounts of marijuana listed on authorization card. - May grow up to 15 plants in house. • No more than 15 plants per housing unit regardless of how many patients reside in the housing unit(except for cooperatives,which may have 60 plants). - No production or processing if any portion can be seen from unaided vision or smelled from a public place or private property of another housing unit. - State will adopt rules allowing non-combustible extraction by qualified patients and designated providers. -Minors may be patients,with parents serving as designated providers. Local Authority - Repeals RCW 69.51A.140,which granted cities and counties the authority to adopt and enforce requirements related to medical marijuana,including zoning. - Cities are authorized to adopt civil penalties for patients and designated providers growing/keeping plants outside the limits set by SB 5052. - Cities may adopt ordinances reducing the buffers between licensed facilities and recreation centers, child care centers, public parks, public transit centers, libraries, or game arcade which is not restricted to those over 21 from 1,000 feet to not less than 100 feet, provided such distance reduction will not negatively impact the jurisdiction's civil regulatory enforcement, criminal law enforcement interests,public safety,or public health. • Buffers to schools and playgrounds may not be reduced below the state required 1,000 feet. - Subject to any rules adopted by the L&CB, cities and counties may adopt an ordinance prohibiting a marijuana producer or processor from operating or locating a business within areas zoned primarily for residential use or rural use with a minimum lot size of five acres or smaller. As part of the changes,the State must increase the number of retail stores to account for the medical marijuana market. The fiscal note indicated an estimate that approximately 400 new retail stores would be licensed,which would effectively double the number of allowable retail stores throughout the state. The L&CB is currently in its rulemaking process to determine the number of stores necessary and the Page 4 of 7 merit or priority-based selection system that will be used to select applicants and licensees,with rules expected to be adopted in early 2016. City Regulatory Background: In response to I-502,the City adopted permanent regulations on July 22,2014. The regulations,as they now exist,are set forth in SVMC 19.120.050 (permitted use matrix)and SVMC 19.85 and provide as follows: - State licensed marijuana production is a permitted use in Heavy Industrial and Light Industrial zones, and indoor growing only is permitted in Regional Commercial and Community Commercial zones. - State licensed marijuana processing is a permitted use in the Heavy Industrial and Light Industrial zones, and packaging and labeling of useable marijuana only is permitted in Regional Commercial and Community Commercial zones. - Both production and processing uses may not be located within 1,000 feet of City Hall, CenterPlace, vacant City property (other than stormwater and public rights-of-way), vacant library property, and vacant school property. Production and processing may be located within 1,000 feet of the Appleway Trail, provided that it is in the appropriate zone (there are few Regional Commercial and Community Commercial zones within 1,000 feet of the Appleway Trail). - State licensed marijuana sales are permitted in the Mixed Use Center, Corridor Mixed Use, Regional Commercial, and Community Commercial zones. -Licensed retail sales may not be located within 1,000 feet of City Hall, CenterPlace,vacant City property (other than stormwater and public rights-of-way), vacant library property, vacant school property,the Appleway Trail, and the Centennial Trail. Further,after the passage of I-502,the City saw an increase in the number of collectives(unregulated medical marijuana) seeking business registrations. The City passed a moratorium on unlicensed marijuana uses(e.g.,primarily medical marijuana)pursuant to Ordinance No. 14-021 on December 9, 2014 to allow the City to determine what action the State would take to reconcile the medical and recreational marijuana markets and to develop its own regulations. This proposal stems from a requirement adopted pursuant to Ordinance No. 14-021. Pursuant to Ordinance No. 14-021,the City established a work plan to work through and adopt permanent regulations for such medical marijuana uses. This proposal constitutes the permanent regulations required pursuant to Section 3 of Ordinance No. 14-021. Note that while Ordinance No. 14-021 requires the City to adopt regulations related to medical marijuana, the proposed amendments constitute a comprehensive proposal to adopt both necessary medical marijuana-related amendments and other recreational marijuana-related amendments based upon a year of experience with licensed recreational production,processing, and retail shops. Staff presented the proposed concepts,except for the buffer between retail stores,to City Council at its August 18,2015,meeting. During that meeting, Council indicated a desire restrict marijuana uses to their current levels or to minimize increasing the number of stores. State law would likely preclude the City from expressly setting the number of stores to be allocated within the City,but the City may adopt reasonable land use regulations governing the siting and location of such stores. Staff has added the proposal that retail stores may not be located within 1,000 feet of another licensed marijuana retail store, production facility,or processing facility,which will limit the available locations for retail stores and restrict too many stores from being concentrated within the City. Page 5 of 7 B. FINDINGS AND CONCLUSIONS SPECIFIC TO THE MUNICIPAL CODE TEXT AMENDMENT 1. Compliance with Title 17(General Provisions) of the Spokane Valley Municipal Code a. Findings: SVMC 17.80.150(F)Municipal Code Text Amendment Approval Criteria i. The City may approve Municipal Code Text amendment,if it finds that (1) The proposed text amendment is consistent with the applicable provisions of the Comprehensive Plan; Staff Analysis: The amendment is consistent with the Comprehensive Plan goals by protecting residential areas, encouraging diversity among commercial uses, maintaining a flexible and consistent regulatory environment, and promoting compatibility between adjacent land uses. Further, the proposed amendments maintain the character of residential neighborhoods by prohibiting cooperatives and limiting secondary impacts on surrounding properties for any medical growing within residential zones through compliance with land use and building codes. Relevant Comprehensive Plan goals and policies are shown below: LUP-1.1: Maintain and protect the character of existing and future residential neighborhoods through the development and enforcement of the City's land use regulations and joint planning. LUP-1.2: Protect residential areas from impacts of adjacent non-residential uses and/or higher intensity uses through the development and enforcement of the City's land use regulations and joint planning. Land Use Goal LUP-10.2: Encourage a diverse array of industries to locate in Spokane Valley. Economic Goal EDG-7: Maintain a regulatory environment that offers flexibility, consistency,predictability and clear direction. Economic Policy EDP-7.1: Evaluate,monitor and improve development standards to promote compatibility between adjacent land uses; and update permitting processes to ensure that they are equitable,cost-effective, and expeditious. Economic Policy EDP-7.2: Review development regulations periodically to ensure clarity,consistency and predictability. Neighborhood Policy NP-2.1: Maintain and protect the character of existing and future residential neighborhoods through the development and enforcement of the City's land use regulations and joint planning. (2) The proposed amendment bears a substantial relation to public health, safety, welfare,and protection of the environment; Analysis: The proposed amendment will allow compliance with state law and allow state-licensed recreational and medical marijuana businesses to locate within the Spokane Valley while separating such uses from identified sensitive uses and the City's existing and future residential uses. Further the amendment will limit concentration of recreational and medical shops in any one area of the City and will protect the residential character of residential neighborhoods. b. Conclusion(s): Page 6 of 7 The proposed text amendment is consistent with the approval criteria contained in the SVMC. 2. Finding and Conclusions Specific to Public Comments a. Findings: No public comments have been received to date. b. Conclusion(s): Adequate public noticing was conducted for CTA-2015-0006 in accordance with adopted public noticing procedures 3. Finding and Conclusions Specific to Agency Comments a. Findings: No agency comments have been received to date. b. Conclusion(s): No concerns are noted. C. OVERALL CONCLUSION The proposed code text amendment is consistent with the Comprehensive Plans policies and goals. D. STAFF RECOMMENDATION The Planning Division, after review and consideration of the submitted application and applicable approval criteria, recommends approval of the regulations related to production, processing, and retail sales of state-licensed recreational and medical marijuana, and land use and building code compliance for medical marijuana production and processing within residential zones. Page 7 of 7 COMMUNITY DEVELOPMENT PLANNING - jwy Proposed Text Amendments : Appendix A and SVMC 19 . 85 Marijuana Regulations WriWr Spokane COMMUNITY DEVELOPMENT -PLANNING DIVISION Background • Marijuana is governed by numerous laws and codes — Federal Law — State Law — City Code 2 Wrifir Spokane COMMUNITY DEVELOPMENT PLANNING Federal law: Controlled Substances Act — 21 U .S.C. 801 et seq — Marijuana is a Schedule I controlled substance • "high potential for abuse, lack of accepted medical use, and absence of any accepted safety for use in medically supervised treatment:' Gonzales v. Raich, 545 U .S. 1 (2005) — Production, processing, sale, distribution and 3 use is illegal Wrifir Spokane COMMUNITY DEVELOPMENT 'PLANNING State Law: Background • Previously - Two Different Regulatory Schemes — Recreational Marijuana — chapter 69.50 RCW ( Initiative 502) — Medical Marijuana - chapter 69.51A RCW 4 Wrifir Spokane COMMUNITY DEVELOPMENT -PLANNING State Law: 1-502 ( RCW 69. 50) Legalizing Recreational Marijuana 1-502 passed in November of 2012 — Decriminalized possession and use of marijuana Established a regulatory system for the Washington State Liquor and Cannabis Board ( L&CB) to license producers, processors, and retailers of recreational marijuana 5 Wrifir -- Spokane COMMUNITY DEVELOPMENT -PLANNING DIVISION Federal law: Department of Justice Response — August 29, 2013, United States Department of Justice issued its response to 1-502 • Memo providing guidance for ongoing prosecution of federal marijuana offenses • No prosecution in States with legalized marijuana if there were strong regulatory systems on paper and in practice 6 Wrifir Spokane COMMUNITY DEVELOPMENT � ANNIN���'T" Recreational Marijuana — RCW 69. 50 • Possession and use of marijuana legal for people over 21 • L&CB Rulemaking and Licensing — L&CB went through extensive rulemaking process in 2013 and began issuing licenses for production and processing in Spring 2014 — L&CB issued first retail license in July 2014 Wrifir Spokane COMMUNITY DEVELOPMENT 'PLANNING Recreational Marijuana - License Types • Producer (growing) • Processor ( putting marijuana into useable form (e.g., packaging or making marijuana extract and using it in baked goods)) • Retailer (selling) 8 SpOkane Va i y COMMUNITY DEVELOPMENT -PLANNING DIVISION - Recreational Marijuana - License Types • "Marijuana retailer" — a person licensed by the L&CB to sell useable marijuana and marijuana-infused products in a retail outlet — Marijuana products must be behind counters • L&CB set 334 total available retailer licenses Statewide — 3 available retailer licenses in Spokane Valley; 18 total available in Spokane County (including Spokane Valley) — 200 licensed stores so far statewide ( 179 reporting sales) 9 WrifirIPPWINIMMIllrw i1 COMMUNITY DEVELOPMENT '-PLANNING DIVISION - Recreational Marijuana - License Types • Retail outlets may have up to four months of average inventory on site at any given time • No sales over the internet • No delivery sales • Cannot share same space with medical marijuana outlet • Retail hours limited to 8 :00AM to 12 :00AM • Cannot sell alcohol at same location i• Limits on size and content of advertising 0 i1 COMMUNITY DEVELOPMENT '-PLANNING DIVISION - L&CB Buffers L&CB rules prohibit any state licensed marijuana facility from being within 1,000 feet of the perimeter of any elementary or secondary school, playground, recreation center or facility, child care center, public park (excluding trails), public transit center, library, or game arcade open to persons under the age of 21. Administered solely by the State through the state licensing process. 1 1 i1 COMMUNITY DEVELOPMENT :PLANNING DIVISION - Medical M F Initially approved by initiative in 1998 E Amendments in 2011 resulted in confusion, lack of regulation, and left collective gardens as means of producing and procuring medical marijuana City issued business registrations provided collective garden was located in zone where retail sales were appropriate No medical marijuana specific regulations at that time 1 2 �a11ey COMMUNITY DEVELOPMENT ,MANNING Divrsiow . Reconciling Medical and Recreational Marijuana 2015 — State Legislature passed bills to reconcile medical and recreational marijuana markets Maintains same licensing system Adds "medical marijuana endorsement" for licensed retail stores Allows licensed retailer to sell medicinal marijuana to qualified patients and designated providers; qualified patients and designated providers may receive an 1 exemption from the State's marijuana tax 3 SpOliane�a11ey COMMUNITY DEVELOPMENT „`PLANNING Divrsiow Reconciling Medical and Recreational Marijuana cont. Eliminates collective gardens effective July 1, 2016 F Establishes cooperatives g Up to four patients; must be in a domicile; cannot be located within one mile of licensed retailer; must be registered with the L&CB; maximum of 60 plants Specifically allows cities to prohibit cooperatives Cities may reduce the State buffers to 100 feet 1 4 SpOliane�a11ey COMMUNITY DEVELOPMENT -PLANNING Divrsiow Reconciling Medical and Recreational Marijuana cont. - Establishes transportation license F Establishes research license - Allows qualified patients to grow up to 15 plants per housing unit - L&CB must increase number of allocated retail locations to accommodate medical marijuana needs Fiscal note estimated 400 additional retail stores 1 5 i1 COMMUNITY DEVELOPMENT '-PLANNING DIVISION - Current CityRegulations E City zoning and buffer restrictions on recreational marijuana F Moratorium on new medical marijuana uses ( unlicensed marijuana uses) was established December 9, 2014 1 6 'Mgr liPPIPPROMMINIPw- SpOkane Valley COMMUNITY DEVELOPMENT PLANNING DivisioN Current CityRegulations cont. • Production permitted in Heavy Industrial and Light Industrial zones; indoor growing only permitted in Regional Commercial and Community Commercial zones. • Processing permitted in Heavy Industrial and Light Industrial zones; packaging and labeling of useable marijuana only permitted in Regional Commercial and Community Commercial zones. • Buffers from production and processing within 1,000 feet of City Hall, CenterPlace, vacant City property (other than stormwater and public rights-of-way), vacant library property, and vacant school 1 property. SpOliane Valley COMMUNITY DEVELOPMENT '-PLANNING Divrsiow Current CityRegulations cont. • Retail sales permitted in the Mixed Use Center, Corridor Mixed Use, Regional Commercial, and Community Commercial zones. • Retail sales may not be located within 1,000 feet of City Hall, CenterPlace, vacant City property (other than stormwater and public rights-of-way), vacant library property, vacant school property, the Appleway Trail, and the Centennial Trail. 1 8 i1ley COMMUNITY DEVELOPMENT -PLANNING DIVISION - General Information • Licenses: — 161 production licenses issued statewide — 56 processor licenses issued statewide — 497 producer/processor licenses issued statewide — 19 production stores in Spokane Valley — 21 processors in Spokane Valley — 200 retail licenses issues statewide (179 reporting sales) — 3 retail stores operating in Spokane Valley — City processed 5 medical marijuana-related business registration applications in 2013 and 10 medical marijuana-related business registration applications in 2014 — unknown how many are currently operating 9 SpOkanei1 COMMUNITY DEVELOPMENT -PLANNING DIVISION - General Information cont. • Sales: — $260 million in fiscal year 2015 (State fiscal year is July-June) (includes price plus tax) — $157 million in fiscal year 2016 (includes price plus tax) • Enforcement Checks ( no sales to minors) — Between May and June 2015 — 19 violations out of 157 stores (no violations in Spokane Valley stores) 2 0 MVP'IPPIIIIIMINIMMIWw- i1 COMMUNITY DEVELOPMENT -PLANNING DivisioN - Proposed Regulations • Amend SVMC 19.85 and Appendix A as follows: • Add definitions for medical-related marijuana endorsed retail stores and marijuana cooperatives; clarify that "marijuana sales" include recreational and medically endorsed stores • Maintain existing buffers and add buffer limit prohibiting retail stores (including medical stores) from locating within 1,000 feet of other licensed retail stores (including medical stores), production, and processing facilities. 2 1 MVP'IPPIIIIIMINIMMIWw- ne COMMUNITY DEVELOPMENT PLANNING Divrsiow Proposed Regulations cont. • Prohibiting marijuana cooperatives from all zones • Clarifying all licensed facilities are subject to applicable local laws, including local building codes • Requiring home grows by qualified patients to be only in single- family residential zones in permanent structures that are opaque and not visible by neighbors or from the public rights-of-way. 2 2 SOkane COMMUNITYDEVELOPMENT PLANNING DIVISION \farijuarra ri npprati -P: A marijuana cooperative formed pursuant to chapter 59 iA RCW as now adopted or hereafter-amended. A marijuana cooperative is comprised of up to tour quality-ing patients or dcsignatcd providers and formed for the purposes of sharing responsibility for acquiring and supplying 111r LtSUL.L.Lt . LULl [JLudLIt.111k x1141 [itu essin niatilualla lui Ll e medical use ul Lilt uie-1L1beis ul L1le marijuana r.00perativ� Marijuana processing: Processing marijuana into usable marijuana. marijuana-infused products. and marijuana concentrates, packaging and labeling usable marijuana: marijuana-infused products, and marijuana concentrates for sale in_retail outlets: and sale of uab1e marijuana. marijuana infused products. and marijuana concentrates at wholesale by -a marijuana processor licensed by the State Liquor Cc.ntrcl and Cannabis Board and pursuant to -Qchapter 69.50 RCW. as now adopted or hereafter amended_ See "Industrial: light use category.— Marijuana production: Production and sale of marijuana at wholesale by a marijuana producer licensed by the State Liquor C:ontrolan d [= annabis Board and pursuant to C.chapter 69.51:IRCW: as now adopted or hereafter amended. See '`Agricultural and animals, use category:' 1412riju2112 yak : (1) Selling usable marijuana. marijuana-infused products, and marijuana concentrates in a retail outlet -by a marijuana retailer licensed by the State. Liquor Controland Canna_bis Board and pLLLsLL1LL Lu diapLet 69.50 RCW. a LLUW adu.pLed UL 'aLuencltd_ dud ( ) mEiiivana salts � '1L11 a medical enrlorcernent See Retai1 gales_uce rategnry '4arijuana sales with a medical endorsement: Means marijuana sales and medical marijuana sales by a marijuana retailer licensed by the State Liquor and Cannabis Board that has been issued a medical 2 marijuana endorsement pursuant to chapter 69.50 RCW and chapter 69_51A RCW_ as now adopted or 3 hereafter amended. COMMUNITY DEVELOPMENT PLANNING DIVISION 19.K.11110 Mlari'uana reduction standards. A. Marijuana production shall be located or maintained at least 1:000 feet from the nearest property line; measured from the nearest property line of the marijuana production faciityto the nearest property line of any one or more of the follow-mg uses: 1.Vacant or undeveloped parcels owned by public school districts pursuant toas established in ROV Tide 28A; 2.Vacant or undeveloped parcels owned by public library districts pursuant toas established in Cchapter 27.12 RCIV; 3.Vacant or undeveloped parcels leased or owned by :he City: provided the blowing shall be excluded from consideration under this section: a.Any stormwater facility or right-of-way parcels owned or leased by the City and designated or identified as a stormwater facility or right-of-way in any document, plan or program acopted by the eCity eCaimed: and b.The Appleway Trail; or 4_ a_Any facility, building, campus, or collection of buildings designated or Identified in any !document,plan; or program adopted by:he eCity eCouncil as "Spokane Valley City Rall- or other similar term that identifies such facilities, buildings, campus, or collection of buildings as the eCity's primary administrative and legislative location; or b_CenterPlace_ B. Marijuana production in tire regional commercial and community commercial zones shall only be permitted indoors. C. Ir addition to compliance with any applicable state or federal laws and regulations, marijuana production shall be subject to all locally applicable land ase, development, zoning, and building 2 regulation requirements_ including but not limited to all applicable requirements set forth in Titles 17. 18_ 4 19:20;21,22 and 24 SVMC as the sane are now adopted or hereafter amended_ COMMUNITY DEVELOPMENT PLANNING DIVISION .`5.420.Marina na i racess ng standards. A. Marijuana processing shall be located or maintained at least 1,000 feet from the nearest property line, measured from the nearest property line of the marijuana processing facility to the nearest property line of any one or more of the following uses: 1.Vacant or undeveloped parcels owned by public school districts pursuant to RCW Title 28A; 2.Vacant or undeveloped parcels owned by public library districts pursuant toas established in `chapter 27.12 ROW; 3.Vacant or undeveloped parcels leased or owned by the City; provided the following shall be excluded from consideration pursuant to SVMC 19.85.020 under this section: a_Any stormwater facility or right-of-way parcels owned or leased by the City and designated or identified as a stormy;-titer facility or right-of-way in any document, plan or program ac1nptPrl by the Wiry.C'.nnnril;and b.The Appteway Trail; or 4. a.Any facility, building, campus, or collection of buildings designated or identified in any document,plan, or program adopted by the eCity eCouricil as -Spokane Valley City Hall' or other similar term that identifies such facilities,buildings: campus,or collection of buildings as the City-s primary administrative and legislative location;or b. CenterPLace. 13_ Marijuana processing in the regional commercial and community commercial zones shall be limited to packaging and labeling of usable marijuana. C.In addition to compliance with any applicable state or federal requirements. marijuana processing shall be subject to all locally applicable land use, development, zoning, and building regulation requirements. 2 including but not limited to all applicable requirements set forth in Titles 17: 18, 19, 20, 21, 22 and 24 5 SVMC as the same are now adopted or hereafter amended. iiirWrAwv Sticikane COMMUNITY DEVELOPMENT PLANNING DIVISION 0_9A11llarjana retail sales standards, Marijuana sales shall be located or maintained at least 1:000 feet from the nearest property line,measured from the nearest property line of the marijuana sales facility to the nearest property line of any one or more of the following uses: A. Centennial Trail.. S.A lewa Trail.= C.Vacant or undeveloped parcels owned by public school districts pursuant tons established in RCW Title 28A_= D.Vacant or undeveloped parcels owned by public library districts pursuant tons established in C,chapter 27.12 RCI,, E.Vacant or undeveloped parcels leased or owned by the City;provided any stormwater facility or right- of-way parcels owned or leased by the City and designated or identified as a stormwater facility or right- of-way in any document, plan or program adopted by the eCity eCouncil shall be excluded from consideration pursuant to SVMC 19.85.030under this section_ F. 1_Any facility,building,campus, or collection of buildings designated or identified in any document, plan, or program adopted by the eCity eCouncil as -Spokane Valley City Hallor other similar term that identifies such facilities,buildings, campus, or collection of buildings as the City's primary administrative and legislative location;or 2. CenterPlace; G. Another marijuana sales use, marijuana sales with a medical endorsement use,marijuana production use, or marijuana processing use. H. In addition to compliance with any applicable state or federal laws and regulations, marijuana sales and marijuana sales with a medical endorsement shall be subject to all locally applicable land use. development, zoning, and building regulation requirements, including but not limited to all applicable 2 requirements set forth in Titles 17, 18. 19, 20. 21, 22 and 24 SVMC as the same are now adopted or 6 hereafter amended. iiirWrAwv Sticikane COMMUNITY DEVELOPMENT PLANNING DIVISION 0_9A11llarjana retail sales standards, Marijuana sales shall be located or maintained at least 1:000 feet from the nearest property line,measured from the nearest property line of the marijuana sales facility to the nearest property line of any one or more of the following uses: A. Centennial Trail.. S.A lewa Trail.= C.Vacant or undeveloped parcels owned by public school districts pursuant tons established in RCW Title 28A_= D.Vacant or undeveloped parcels owned by public library districts pursuant tons established in C,chapter 27.12RCIV, E.Vacant or undeveloped parcels leased or owned by the City;provided any stormwater facility or right- of-way parcels owned or leased by the City and designated or identified as a stormwater facility or right- of-way in any document, plan or program adopted by the eCity eCouncil shall be excluded from consideration pursuant to SVMC 19.85.030under this section_ F. 1_Any facility,building,campus, or collection of buildings designated or identified in any document, plan, or program adopted by the eCity eCouncil as -Spokane Valley City Hallor other similar term that identifies such facilities,buildings, campus, or collection of buildings as the City's primary administrative and legislative location;or 2. CenterPlace; G. Another marijuana sales use, marijuana sales with a medical endorsement use,marijuana production use, or marijuana processing use. H. In addition to compliance with any applicable state or federal laws and regulations, marijuana sales and marijuana sales with a medical endorsement shall be subject to all locally applicable land use. development, zoning, and building regulation requirements, including but not limited to all applicable 2 requirements set forth in Titles 17, 18. 19, 20. 21, 22 and 24 SVMC as the same are now adopted or 7 hereafter amended. SO— Lane COMMUNITY DEVELOPMENT PLANNING DIVISION 119.85.04{}Marijuana Cooperatives. Marijuana cooperatives are prohibited in all zones. 19.3 :OSU:14iarijuaoa_praductiaq ARP]_pracessi in_resiidWig zaaes. Washington State law authorizes qualified patients and designated providers to produce marijuana and to process marijuana in dwellings, residences: domiciles: and similar housing units under limited circumstances and with limited processing methods. In addition to compliance with any applicable state or federal laws and regulations, production or processing of marijuana by a qualified patient or designated provider in a dwelling: residence: domicile, or other similar housing unit shall be subject to all locally applicable land use: development:zoning,and building regulation requirements, including but not limited to all applicable requirements set forth in Titles 17: 18: 19,20,21,22 and 24 SVMC as the same are now adopted or hereafter amended_ and the following regulations: A. Any home production or processing of marijuana by a qualified patient or designated provider pursuant to state law shall not be permitted outside of the dwelling or accessory structure; B. Any home production or processing of marijuana by a qualified patient as allowed by state law in a dwelling or accessory structure shall be enclosed:blocked_ or sight-screened from the public right-of-way and from adjacent properties so that no portion may be readily seen by normal unaided vision or readily smelled from such locations. Accessory structures shall be permanent structures enclosed by a roof and walls on all sides and connected to apermanent foundation. For purposes of SVMC 19.85.010, accessory structures shall not include cargo containers: recreational vehicles or other similar types of structures. Accessory structures shall be completely opaque in addition to necessary site-screening; and C. Production or processing of marijuana by a qualified patient pursuant to state law in dwelling or 2 accessory structure shall only be allowed in the R-1, R-2: R-3,and R4 zones_ 8 Sidiane COMMUNITY DEVELOPMENT PLANNING DiViSION Questions ? 2 9