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Agenda 10/22/2015 SCITY OF bane po Valle Spokane Valley Planning Commission Meeting Agenda City Hall Council Chambers, 11707 E. Sprague Ave. October 22, 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. Study Session — CTA-2015-0006: Proposed amendments to Spokane Valley Municipal Code 19.120.050 and 19.85 Recreational and Medical Marijuana Regulations X. FOR THE GOOD OF THE ORDER XI. ADJOURNMENT Minutes Spokane Valley Planning Commission Council Chambers—City Hall, September 24,2015 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 Erik Lamb City Attorney Heather Graham Lori Barlow, Senior Planner Tim Kelley Mike Phillips Susan Scott Joe Stoy Sam Wood Elisha Heath, Secretary of the Commission Commissioner Anderson moved to approve the amended September 24, 2015 agenda as presented. The vote on the motion was seven in favor, zero against, the motion passes. Commissioner Anderson moved to accept the September 10, 2015 minutes as presented. The Commission approved minutes with a vote on the motion of seven in favor, zero against. COMMISSION REPORTS: Commissioner Kelley reported he attended the Traders Club Meeting. The other Commissioners had no reports. ADMINISTRATIVE REPORT: Senior Planner Lori Barlow reported staff will update City Council on the Comprehensive Plan Update at the October 6th City Council meeting. Deputy City Attorney Erik Lamb explained the amendment to the agenda removed the study session for CTA-2015-0006 due to the Washington State Liquor and Cannabis Board released rules, including emergency rules,which need to be included in the study session. PUBLIC COMMENT: No public comments. COMMISSION BUSINESS: Planning Commission Findings: CTA-2015-0005 Proposed Amendments to Spokane Valley Municipal Code (SVMC) Chapter 17.80 Permit Processing Procedures, Table 17.80-1 — Permit Type and Land Use Application; SVMC 18.20.030—Hearing Examiner Powers and Duties; SVMC Appendix A,Definitions. Commissioner Anderson moved to approve the findings of fact for CTA-2015-0005 Amendment to SVMC Chapter 17.80, Table 17.80-1 — Permit Type and Land Use Application; SVMC 18.20.030 — Hearing Examiner Powers and Duties; SVMC Appendix A, Definitions, as presented. The vote was seven in favor, zero against, the motion passes. GOOD OF THE ORDER: Commissioner Phillips inquired about the Comprehensive Plan being complete by the end of December 2015. Ms. Barlow replied that the Comprehensive Plan would likely not be completed by the end of the year since the population allocation number has not been received from Spokane County,which is needed to move forward. Commissioner Anderson asked how many of the chapters in the Comprehensive Plan are affected by the population allocation number. Ms. Barlow stated that the population allocation was critical for the Land Use Plan, the Capital Facilities Plan as well as Transportation Element. Staff is working on several of the chapters while waiting for the population allocation. 09-24-15 Planning Commission Minutes Page 1 of 2 Commissioner Wood inquired about the reason for the delay on the population allocation number. Mr. Lamb explained the County established a number several years ago, however they were challenged because of how high the number was. Ultimately, the County ended up losing the challenge in appeals court which required them to redo the process. Commissioner Wood asked if the City could establish the population allocation number independently. Mr. Lamb stated no, that the County is mandated to establish the number. ADJOURNMENT: There being no other business the meeting was adjourned at 6:16 p.m. Joe Stoy, Chairperson Date signed Elisha Heath, Secretary 09-24-15 Planning Commission Minutes Page 2 of 2 CITY OF SPOKANE VALLEY Request for Planning Commission Action Meeting Date: October 22, 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—Recreational and Medical Marijuana Regulations DESCRIPTION OF PROPOSAL: Providing an update and background on current recreational and medical marijuana laws, including recent 2015 State Legislative amendments and the City's current marijuana regulations. Discuss possible options for amendments to City regulations. 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: 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). On October 6, 2015, City Council adopted a moratorium on marijuana uses licensed by the Washington Liquor and Cannabis Board. 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(WSLCB). This included all medical marijuana establishments,which at the time were not regulated by the State or WSLCB. Pursuant to Ordinance No. 14-021,the City established a work plan to work through and adopt permanent regulations for such medical marijuana uses. On October 6,2015,the Spokane Valley City Council adopted Ordinance No. 15-017,which established a moratorium on all marijuana uses licensed by the WSLCB. Pursuant to Ordinance No. 15-017,the City established a work plan to work through and adopt permanent regulations for all marijuana uses licensed by the WSLCB. This study session will provide background material on the development of marijuana laws. Further,staff will outline three types of possible options in order to initiate Planning Commission discussions on City marijuana regulations. Once Planning Commission has given direction on what type of regulations,City staff will return at a later meeting with proposed amendment language for further Planning Commission discussion and a public hearing. 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 WSLCB. The WSLCB 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 WSLCB developed rules to allocate a limited number of retail licenses within each jurisdiction. The City was allocated three recreational retail licenses and the WSLCB has issued all three licenses and staff understands that all three retail shops are open and operational. Under state law,there is no restriction on the number of production and processing facilities allowed, although there was originally a cap on the total amount of production space statewide. 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 WSLCB 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. 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. Governor Gregoire vetoed all sections related to the state registry and dispensaries,creating a large amount of confusion and leaving collective gardens as the sole legal 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 - WSLCB must reconsider and increase number of retail outlets to accommodate medical marijuana needs. - WSLCB must develop merit based application process for new retail licenses. - WSLCB 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) - 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 WSLCB. • 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 WSLCB 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 WSLCB, 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 WSLCB is currently in its rulemaking process as discussed in further detail below. 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 (outdoor and indoor growing) is a permitted use in Heavy Industrial and Light Industrial zones. Indoor growing only is permitted in Regional Commercial and Community Commercial zones. - State licensed marijuana processing (labeling and packaging, and chemical or other extraction) is a permitted use in the Heavy Industrial and Light Industrial zones. 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 the location is still in the appropriate zone (there are few Regional Commercial and Community Commercial zones within 1,000 feet of the Appleway Trail). - State licensed marijuana retail 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. In response to the WSLCB's Emergency Rules on September 23,2015 (described in detail below),the City adopted a moratorium on marijuana uses licensed by the WSLCB in order to allow the City to complete the consideration, development,and adoption of its regulations without allowing additional licenses to vest or create potentially inconsistent or incompatible uses. The moratorium did not impact existing marijuana uses which had already received a license from the WSLCB. However,it will prevent the City from processing any applications from collectives which wish to receive a retail license from the WSLCB. Further,the moratorium did not impact any home use or consumption. Thus, as it stands,the City has three existing licensed retail stores, 19 licensed producers, and 21 licensed processors,with two moratoriums that effectively prohibit any further licensed retailers,producers,or processors until the City adopts its regulations. WSLCB 2015 Rulemaking On September 23,2015,the WSLCB issued,effective immediately,its Emergency Rules#15-18,which removed the cap on the number of marijuana retail stores,with the cap to be set at a later date, and provided for the WSLCB to begin accepting and processing marijuana retail license applications beginning on October 12,2015. Further,the Emergency Rules specified procedures for marijuana retail licensees to apply for medical marijuana endorsements and removed the statewide cap on the total amount of marijuana production space,with the total amount to be set at a later date. Concurrently with the Emergency Rules,the WSLCB issued its proposed Rules#15-17. Those rules implement the new laws adopted in 2015. The rules include the following: - Specifies the priority to determine the order in which marijuana retailers are licensed. • First priority is to those applicants who (1) owned or were members of a marijuana collective garden prior to January 1,2013, (2) applied for a retail license with the WSLCB, (3)have maintained state and local business license, and(4) are current in all required taxes. • Second priority is to those applicants who (1) owned or were members of a marijuana collective garden prior to January 1,2013,(2)have maintained state and local business license, and(3)are current in all required taxes. • Third priority is to all other applicants. -Matches state laws and allows applicants to locate within 100 feet of sensitive uses (other than schools and playgrounds)if the local city has passed an ordinance allowing such buffer reduction. -Provides that outdoor grows cannot share a common fence or wall and must be located at least 20 feet from each other. - Sets maximum production space at an amount to be determined at a later date. Previously the maximum space was to be set by market requirements up to 8.5 million square feet. -Provides that a producer may add a processor license at that same production location. - Sets rules for applying for,receiving, and maintaining a medical marijuana endorsement. • At least 25%of the inventory must be medical marijuana to maintain the medical marijuana endorsement. - Specifies that the WSLCB will accept retail license applications during the time frames set forth on their website. Further, specifies that the maximum number of retail licenses per county will be set at a later date. -Expands requirements for certain types of processing extraction systems. - Allows two retail advertising signs (up from one). Each sign may be 1,600 square inches. - Sets rules for applying for, receiving, and maintaining a transportation license. • Transportation vehicles must be UTC permitted common carriers. - Sets rules for cooperatives,including registration requirements, 8-foot sight obscuring fence or wall for outdoor grow, and record-keeping. • No chemical solvent extraction. City Regulation Options Planning Commission may consider a range of options for the City. The options range from maintaining current regulations to adopting some further limitations(that would allow a limited increase in licensed marijuana uses)to adopting a ban on additional licensed marijuana uses. Staff presented potential concepts 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. One option Council discussed was possibly including an additional buffer preventing retail stores from locating within 1,000 feet of any other licensed use. Option 1: Rely on existing regulations. This approach would leave the existing City regulations in place to deal with any additional retail,production, and processing licenses. Under this option,Planning Commission should consider whether there should be any additional regulations for cooperatives(which can only be located in residential zones). This would allow a potential increase in the number of retail, production,and processing stores within the existing zones and subject to the buffers. The limit would ultimately be set by the State. Under this option, staff would recommend minor changes to existing defmitions to account for retail stores with medical marijuana endorsements. Under this option,there are 727 available parcels for retail stores. However,not all are available due to market constraints and other commercial operations that take up a significant number of those parcels. Option 2: Adopt additional limitations, such as buffers between licensed marijuana uses,prohibiting cooperatives,or further limiting the allowable zones where licensed uses may locate. For example,if Planning Commission wished to further limit stores,it could adopt a 1,000 foot buffer between licensed retail stores and all other licensed marijuana uses. This would limit the number of available parcels to 61. However,this does not take into account any existing commercial stores occupying those parcels or other market-factor limits on those parcels. Further,since there are licensed stores and due to potential nuisance-type impacts on neighborhoods,Planning Commission could consider prohibiting cooperatives (home grows of up to 60 plants). Licensed marijuana uses are currently allowed in four zones—CUP, MUC,RC, and C. This could be further restricted to limit the areas where additional licensed shops could locate by either reducing the available zones or adopting an overlay zone limiting where licensed marijuana may be located. Existing stores that might otherwise be impacted by any new regulations would become legal non-conforming uses and so would not be adversely impacted. Option 3: Adopt a prohibition on some or all types of licensed marijuana uses. Existing licensed uses would become legal non-conforming uses and so would not be required to stop operations. However, a prohibition would prevent any additional licensed uses. Note that while staff believes a prohibition is valid,there have been no appellate court decisions validating a city's authority to ban licensed marijuana uses, and so staff cannot definitively state what a court may do if the City were challenged on a prohibition. NOTICE: Notice of any proposed amendments will be provided in a timely manner to comply 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: Staff is seeking Planning Commission development of and consensus on an option. Once an option is developed and approved in concept, staff will draft appropriate proposed amendments based upon that concept for further Planning Commission consideration. STAFF CONTACT: Christina Janssen—Planner Jenny Nickerson— Senior Plans Examiner Erik Lamb—Deputy City Attorney ATTACHMENTS: A. Presentation B. Maps of existing stores and potential additional buffers jy�M COMMUNITY DEVELOPMENT PLANNING DIVISION Study Session : Marijuana Regulations Spokane e COMMUNITY DEVELOPMENT PLANNING DIVISION Current Status of Marijuana in Spokane VJ Moratorium on new medical marijuana uses (unlicensed marijuana uses) was established December 9, 2014 Moratorium on new marijuana uses licensed by the Washington State Liquor and Cannabis Board (WSLCB) was established October 6, 2015 Moratoriums both require City to develop appropriate local regulations giving effect to 2015 State Legislative amendments 2 j�. COMMUNITY DEVELOPMENT PLANNING DIVISION Marijuana Laws - Background • Marijuana is governed by numerous laws and codes — Federal Law — State Law — City Code 3 spa.. COMMUNITY DEVELOPMENT PLANNING DIVISION 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 4 use is illegal j�. COMMUNITY DEVELOPMENT PLANNING DIVISION State law : Background • Prior to 2015 - Two Different Regulatory Schemes — Recreational Marijuana — chapter 69.50 RCW ( Initiative 502) — Medical Marijuana - chapter 69.51A RCW 5 j� COMMUNITYDEVELOPMENT PLANNING DIVISION ,411 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 (WSLCB) to license producers, processors, and retailers of recreational marijuana 6 j�. 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 are strong regulatory systems on paper and in practice spa.. COMMUNITY DEVELOPMENT PLANNING DIVISION Recreational Marijuana — RCW 69 . 50 • Possession and use of marijuana legal for people over 21 • WSLCB Rulemaking and Licensing — WSLCB went through extensive rulemaking process in 2013 and began issuing licenses for production and processing in Spring 2014 — WSLCB issued first retail license in July 2014 8 spa.. COMMUNITY DEVELOPMENT PLANNING DIVISION Recreational Marijuana - License Types • Producer (indoor and outdoor growing) • Processor ( putting marijuana into useable form (e .g., packaging or making marijuana extract and using it in edibles) ) • Retailer (selling) 9 ssa COMMUNITY DEVELOPMENT PLANNING DIVISION Recreational Marijuana - License Types • "Marijuana retailer" — a person licensed by the WSLCB to sell useable marijuana, marijuana-infused products, and marijuana concentrates in a retail outlet — Marijuana products must be behind counters • WSLCB originally 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) 0 spaane 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 • Pre-2015 - Could not share same space with medical marijuana outlet • Retail hours limited to 8:00AM to 12 :00AM • Cannot sell alcohol at same location 1. Limits on size and content of advertising Spaanea COMMUNITY DEVELOPMENT PLANNING DIVISION WSLCBBuffers WSLCB 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 2 s kya COMMUNITY DEVELOPMENT PLANNING DIVISION Medical Marijuana Originally approved by initiative in 1998 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 3 sa COMMUNITY DEVELOPMENT PLANNING DIVISION Reconciling Medical and Recreational Marijuana — 2015 Legislation 2015 — State Legislature passed bills to reconcile medical and recreational marijuana markets Maintains same licensing system through WSLCB 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 4 ssa COMMUNITY DEVELOPMENT PLANNING DIVISION Reconciling Medical and Recreational Marijuana cont. Eliminates collective gardens effective July 1, 2016 Establishes cooperatives Up to four patients; must be in a domicile; cannot be located within one mile of licensed retailer; must be registered with the WSLCB; maximum of 60 plants Specifically allows cities to prohibit cooperatives Cities may reduce the State buffers to 100 feet (except schools and playgrounds) 5 spaane COMMUNITY DEVELOPMENT PLANNING DIVISION Reconciling Medical and Recreational Marijuana cont. Establishes transportation license Establishes research license Allows qualified patients to grow up to 15 plants per housing unit WSLCB must increase number of allocated retail locations to accommodate medical marijuana needs Fiscal note estimated 400 additional retail stores 1 6 j� COMMUNITY DEVELOPMENT PLANNING DIVISION Reconciling Medical and Recreational Marijuana — WSLCB Emergency Rules WSLCB issued emergency rules effective September 23, 2015 Specified that WSLCB would begin accepting retail license applications on October 12, 2015 Specified that the total number of retail stores would be set at a later date Specified that maximum production space would be set at later date spaane COMMUNITY DEVELOPMENT PLANNING DIVISION Reconciling Medical and Recreational Marijuana — WSLCB Final Rules WSLCB concurrently issued draft rules at same time as emergency rules Will go through public process Adopt in late 2015/early 2016 Also specified that the total number of retail stores would be set at a later date Also specified that maximum production space would be set at later date 8 sio�� � a COMMUNITY DEVELOPMENT PLANNING DIVISION Reconciling Medical and Recreational Marijuana — WSLCB Final Rules Cont. Specifies priority in which retail applicants will be licensed Sets rules for applying for, receiving, and maintaining medical marijuana endorsement Sets rules for applying for, receiving, and maintaining a transportation license Sets rules for cooperatives, which must register with WSLCB Includes registration requirements, 8-foot sight obscuring fence for outdoor grows, and record-keeping requirements 9 spa COMMUNITY DEVELOPMENT PLANNING DIVISION Background on CityRegulations Moratorium on new medical marijuana uses ( unlicensed marijuana uses) was established December 9, 2014 Moratorium on new marijuana uses licensed by the Washington State Liquor and Cannabis Board (WSLCB) was established October 6, 2015 2 0 spa. COMMUNITY DEVELOPMENT PLANNING DIVISION t LBS Background on CityRegulations cont. Pre-moratoriums: City regulations for licensed marijuana City zoning and buffer restrictions on recreational marijuana Adopted in July 2014 Applied to licensed retailers, producers, and processors Have used for siting of 19 producers, 21 processors, and 3 retailers Note that previously State limited City to 3 retailers — now unknown number of retailers Must consider whether these are appropriate or if additional regulations are necessary 2 1 Sitikane . COMMUNITY DEVELOPMENT PLANNING DIVISION CityRegulations cont. • Marijuana Production — Permitted in heavy and light industrial zones outright (indoor and outdoor); permitted in limited manner (indoor growing only) in RC and C zones. • Marijuana Processing — Permitted in heavy and light industrial zones outright (packaging and extraction); permitted in limited manner (packaging and labeling of useable marijuana only) in RC and C zones. • Local buffers for both marijuana production and processing — Cannot be located within 1,000 feet of City Hall, CenterPlace, vacant City property (other than stormwater and public rights-of-way), vacant library 2 property, and vacant school property. 2 s ky. COMMUNITY DEVELOPMENT PLANNING DIVISION Current CityRegulations cont. • Retail sales — permitted in the Mixed Use Center, Corridor Mixed Use, Regional Commercial, and Community Commercial zones. • Local buffers for retail sales — Cannot 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. 2 3 Skya 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 2 2014 — unknown how many are currently operating 4 Skikane . 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) • City has received first marijuana tax revenues from State 2 - Approximately $ 18,900 for 3rd quarter of 2015 5 s ky. COMMUNITY DEVELOPMENT PLANNING DIVISION Options • Moratoriums direct City to develop regulations • Staff discussed proposals with City Council on August 18 — Council indicated desire to limit further retail stores • Perhaps buffer between stores rather than outright prohibition ? — Limit cooperatives 2 6 Sptikane . COMMUNITY DEVELOPMENT PLANNING DIVISION Options cont. • Three types of options — 1. Maintain same — 2. Some additional regulations — 3. Prohibition • For all, consider non-retail as well, including cooperatives • Also, could be mix — E.g., prohibit one type but continue existing regulations for other 2 types Sptikane . COMMUNITY DEVELOPMENT PLANNING DIVISION Option 1 • Maintain existing regulations — Add definitions regarding retail stores with medical endorsement — Allow cooperatives — Clarify permitting requirements for any modifications for home grows • Would allow 727 parcels for retail — Though not all available due to market and existing other commercial uses 2 8 Marijuana Zoning Existing Business „... i i :.t, Th-- 11 !1M1�-... "ti a.'M' }.-,. ”`Wit. ate L \ [./ __, ',. _� Mlll�ku v:.o...s..n. ....:7 ,� ''\Z aw ! N I '041 6 • - - g 5111{i:6rH' re ..;� L[t1 tr... k.Flle $ 1 - . — _,r; Lake A: i _&- \ stab. 4� _ Z �. F 1 III i t_. . ej4..A, xm a. *, �e w. w IC —II I` s L I Legend Processor ` CML - RC Producer MUC 9-1 Producer/Processor M C _ I-2 2 ^, Retailer 10U©ff Sensitive Use buffer 9 Skya COMMUNITY DEVELOPMENT PLANNING DIVISION Option 2 • Additional regulations — Additional buffers? • 1,000 feet from retail stores to any other licensed use • To residential zones? — Limit allowable zones — Overlay • Limits areas where allowed (e.g., just along west Sprague area) — Limit or prohibit cooperatives — Clarify permitting requirements for any modifications for home 3 grows 0 Marijuana Retail Zoning and Sensitive Use 1000ft buffer study 0 ;Prr.'" '•-.r,' ' . ^ U Nlillw mid o , 1 II 1 g .4,41J Pot r- I . 1111± . °. liiirA <It D t=1 7! 011 A r--,4,„ r- Lberl! Lake i I Spokan :41 ,-, in.'' - " .! 14 I R iiill i R10,-7.irlij:7 4 r3..s.:,—ra. ° , - ... . 1.-t'ih.1e6'74 ' ifail...[3:S ;'?0,ttii l''41111111Q4 , -7--....,Z11 ; Kt goigitae. ,In , .1- I-N"" IL J--- 1 g P — 1 I I 1 4, 244... 4 ' \ natt.• D Legend 'T $ Appleway Trail ZONING CODE 4 “.... --„,1/4 I . —Centennial Trail 1-1 Municipal Boundaries CMU 1 1 MUC J 1 Existing Sensftive Use buffer M C 1000ftbutler study =RC 3 1 Sitikane COMMUNITY DEVELOPMENT PLANNING DIVISION Option 2 cont. • Additional regulations • If City imposes a buffer of 1,000 feet from retail stores to any other licensed use, it results in 61 allowable parcels 3 2 Sptikane . COMMUNITY DEVELOPMENT PLANNING DIVISION • Prohibition Option 3 — All license types or just particular ones (e.g., ban retail but allow production or processing)? — Cooperatives? — Clarify permitting requirements for any modifications for home grows • Potential issues with challenges — Ongoing appellate cases, with no decisions yet, so result is uncertain 03 Existing stores become legal non-conforming uses s ky. COMMUNITY DEVELOPMENT PLANNING DIVISION Option 3 • Prohibition — All license types or just particular ones (e.g., ban retail but allow production or processing)? — Cooperatives? — Clarify permitting requirements for any modifications for home grows • Potential issues with challenges — Ongoing appellate cases, with no decisions yet, so result is uncertain 3 4 sptikane COMMUNITY DEVELOPMENT PLANNING DIVISION Discussion andQ uestions 3 5 Marihuana Retail Zoning and Sensitive Use 1000ft buffer study ,rte glita, AF - 1 rt, y. a O I 1,5 . _ - - -o EKpreNly n Pie 9 A (Ce o . . a a LL Mirabeau Pkwy _I , op. Millwood ❑ �t PieEuclid Ave Rv � Buckeye Ave - Marietta Piee - s Montgomery Dr if- al � 1 Montgomery Ave rI 5 .....m......0'‘°°/ _ -,_ Mansfield Ave A �'. Knox Ave �' Spokane dlfillpllhgki J'3 ° Indiana Ave ° 1111111111111111.. ❑ Mission Ave 1 �.7 Sharp Ave -•�_� s- Liberty c T N iii ce �, r 8 Spokane R9pWb -x_, Lake > . ~ 5%��. a .� Broadway Ave Valle •e ❑ � 1 P i a fix -o 4' Do _ �e „"rye._ IllrifirP' � - 3 Valleyway Ave v K aY P'_ B, CO s:»9i'PpPte .-`: I- I � I � i,.� ,. - ..'g i cao .G �Spraglu�Ave 0 .- dill—urn .' �:i''.th z c d, '.. '_I— i•,�� FN -r-:,— �. l �. ' :� ' 4.1,, r �s 3 1[ L m� a�� W= t� isl ei 1 YD I — • �_____- `I ., ^'.m �- '!: ', .: a }yiho' :?a§z\” Fourth Ave �Oa I E t __,,,..„-..7t �_ •ai ai ,f' a. • ,f"`... - Eighth Ave d r.L Y h f 9 V . d f‘N............"---1 U Allk •o 16th Ave � Ia Sa/(aSe Ry s1 N\0 25th x Ave m m li d m # . Na) �� E 32nd Ave II Legend 4, : Oh . _. N, c Appleway Trail ZONING CODE NFr . _ ___ 44thAve al e Centennial Trail CMU Thorpe Rd Municipal Boundaries MUC E_ Existing Sensitive Use buffer C —11 C 1000ft buffer study RC 11 .' Marijuana Zoning J Existing Business -El � J �`.N. ,.._NN.NN I Millwood �a� _- �* ``�```'1 1 Ade RutI alai= ti -*a 'moi\\ '- r` CO m .- I � ~�1`�~ `����� Mansfield Ave �' " ,a 7- Montgomery`Ave � �� - , ce i i liiiiiiiijil 11.p - Knox Ave a�.`tiai\i���.- ! 1 e - - �'� � Indiana AV _ Spokane140011111. ��t.:..-�, - �� . - Mission Ave - I•.„--jar e _e ■ �€ e�8ce f7 Spokane C/3` � ,,.1, ~ 5 0 m Broadway Ave -g i•,.. I � Lake Liberty -11 . rValley : r0%� di - .. B Valleyway Ave- —� �� 1 - - APP�eway Ave.- 74, i ,.,, .1111 — .3% 3 Iii Blvd. ,, t' . w� ._ LSA 5.�, i� c _ \ 1t�. *': 'r' rn Appleway ...,FIS,...........,``` �`' r``r . �,�'.� i `�•i`�` /. m 1 _ ,\� .-.�`...�--.. Fourth Ave re -al ce - d, o �� I- EighthAveo II ri k , .. QU � 16th Ave S. S 0d 25th o E 3. -o Ave m E�� C 'a 32nd Ave all AMMh Legend moo' i- o 44th AveN4 1 pep * Processor CMU RC J * Producer MUC 1-1 Producer/Processor = c 1-2 * Retailer 1000ft Sensitive Use buffer