Agenda 11/12/2015
Spokane Valley
Planning Commission
Meeting Agenda
City Hall Council Chambers, 11707 E. Sprague Ave.
November 12, 2015 6:00 p.m.
I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
IV. APPROVAL OF AGENDA
V. APPROVAL OF MINUTES:
October 22, 2015
VI. COMMISSION REPORTS
VII. ADMINISTRATIVE REPORT
VIII.PUBLIC COMMENT:
On any subject which is not on the agenda.
IX.COMMISSION BUSINESS:
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A.Study Session: STV-2015-0001, street vacation of 3 Avenue
B.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,
October 22, 2015
Chairman Stoy called the meeting to order at 6:00 p.m. Commissioners, staff and audience stood for the
pledge of allegiance. Ms. Horton took roll and the following members and staff were present:
Kevin Anderson Erik Lamb, Deputy City Attorney
Heather Graham Lori Barlow, Senior Planner
Tim Kelley Jenny Nickerson, Sr. Plans Examiner
Mike Phillips, absent - excused Christina Janssen, Planner
Susan Scott
Joe Stoy
Sam Wood Deanna Horton, Secretary of the Commission
Hearing no objections, Commissioner Phillips was excused from the October 22, 2015 meeting.
Commissioner Graham moved to approve the October 22, 2015 agenda as presented. The vote on the
motion was six in favor, zero against, the motion passes.
Commissioner Anderson moved to accept the September 24, 2015 minutes as presented. The vote on the
motion was six in favor, zero against, motion passes.
COMMISSION REPORTS:
Commissioner Kelley reported he attended the Traders Club Meeting.
Commissioner Wood reported he attended the City Council meeting on October 20, 2015. The other
Commissioners had no reports.
ADMINISTRATIVE REPORT:
No administrative report.
PUBLIC COMMENT:
No public comments.
COMMISSION BUSINESS:
Study Session: CTA-2015-0006 Marijuana Regulations
Deputy City Attorney Erik Lamb began the evening explaining to the Commissioners the current status
of marijuana in the City and the state changes in the law.
A moratorium on new medical marijuana uses (unlicensed marijuana uses) was established by
the City Council on Dec. 9, 2014.
A moratorium on new marijuana uses licensed by the Washington State Liquor and Cannabis
Board (WSLCB) was established by the City Council on Oct. 6, 2015.
Both moratoriums require the City to develop appropriate local regulations giving effect to the
2015 State Legislative amendments.
City zoning and buffer restrictions on recreational marijuana were adopted July 2014:
Production permitted in heavy and light industrial zones indoor and outdoor, indoor growing
permitted in Regional Commercial and Community Commercial.
Processing permitted in heavy and light industrial zones packaging and extraction; packaging
and labeling only allowed in Regional Commercial and Community Commercial.
Local buffers for production and processing cannot be located within 1,000 feet of City Hall,
CenterPlace, vacant City property, vacant library property and vacant school property.
Retail sales permitted in Mixed Use Center, Corridor Mixed Use, Regional Commercial, and
Community Commercial.
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10-22-15 Planning Commission Minutes Page of
Local buffers for retail sales cannot be located within 1,000 feet of City Hall, CenterPlace,
vacant City property, vacant library property and vacant school property, the Appleway Trail and
the Centennial Trail.
Prior to 2015 there were two different regulatory schemes for recreational marijuana and medical
marijuana:
Recreational Marijuana (Initiative 502), codified primarily in chapter 69.50 RCW.
I-502 passed in Nov. 2012.
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Decriminalized possession and use.
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Established a regulatory system for the Washington State Liquor and Cannabis Board
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(WSLCB) to license producers, processors and retailers of recreational marijuana.
August 29, 2013: US Dept of Justice issued its response to I-502, stating no prosecution in
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States with legalized marijuana if there are strong regulatory systems on paper and in
practice. The federal government still considers marijuana a Schedule I controlled substance.
Possession and use of marijuana legal for people over 21 years of age.
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WSLCB went through extensive rulemaking process in 2013 and began issuing licenses for
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production and processing in Spring of 2014, issued first retail license in July of 2014.
There are three types of marijuana licenses:
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Producer indoor and outdoor growing.
Processor putting marijuana into useable form, e.g.: packaging or making marijuana extract
and using it in edibles or as a concentrate.
Retailer a person licensed by the WSLCB to sell useable marijuana, marijuana-infused
products, and marijuana concentrates in a retail outlet.
WSLCB rules prohibit any state licensed marijuana facility from being within 1,000 feet of
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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, this is administered solely by the state through
the state licensing process.
Medical Marijuana codified in chapter 69.51A RCW.
Originally approved by initiative in 1998.
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Amendments in 2011 resulted in confusion, lack of regulation, and left collective gardens as
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means of producing and procuring medical marijuana.
City issued business registrations for collectives, provided the collective garden was located
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in zone where retail sales were appropriate. There were no medical marijuana specific
regulations at that time.
Reconciling Medical and Recreational Marijuana 2015 Legislation.
State Legislature passed bills to reconcile medical and recreational marijuana markets
Maintains same licensing system through WSLCB
Adds
medicinal marijuana to qualified patients and designated providers: qualified patients and
a tax.
Eliminates collective gardens effective July 1, 2016.
Establishes cooperatives, which consist of up to four patients. They must be in a domicile,
cannot be located within one mile of licensed retailer, must be registered with the WSLCB, and
may contain up to a maximum of 60 plants.
Specifically allows cities to prohibit cooperatives.
Cities may reduce the buffers to 100 feet, except around schools and playgrounds.
Establishes transportation license.
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10-22-15 Planning Commission Minutes Page of
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, but the number will be determined later.
WSLCB issued emergency rules effective Sept. 23, 2015:
Specified WSLCB would begin accepting retail license applications on Oct. 12, 2015
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Specified the total number of retail stores would be set at a later date
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Specified maximum production space would be set at a later date
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WSLCB concurrently issued draft rules at the same time as emergency rules, which will go
through the public process and will be adopted in late 2015/early 2016:
Also specified the total number of retail stores and max. production space would be set at
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later date.
Specifies priority in which retail applicants will be licensed.
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Set rules for applying for, receiving and maintaining medical marijuana endorsement.
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Set rules for applying for, receiving and maintaining a transportation license.
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Set rules for cooperatives, which must register with WSLCB.
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Mr. Lamb stated the moratoriums direct the City to develop regulations. Staff discussed possible options
with the City Council on August 18, 2015, at which time Council indicated a desire to limit further retail
stores, possibility with a buffer between stores rather than outright prohibition. Council also discussed
limiting cooperatives. Mr. Lamb explained staff would like to discuss with the Planning Commission
what their thoughts are for possible options to changing the marijuana regulations before they brought
forward any proposed changes. It was also suggested if the Commissioners would like to hear from the
public before making any decisions it would be possible to have a public comment session where the
Commissioners could talk to people regarding the subject before. The Commissioners agreed they would
like to do that and have a presentation from the police department as well as the fire department.
Commissioners asked Mr. Lamb several questions in regard to marijuana regulations, either in the City or
state. Current retailers will be able to get a medical endorsement. The moratoriums did not affect any of
the current businesses. Because of the way the medical dispensaries were brought into existence, it is
difficult to say how many there are currently, however based on the new laws, if they cannot be
converted to a retail shop with a medical endorsement they must stop operations by July 1, 2016.
Although the state has said it will later determine how many more additional retail shops it will allow,
previously the original number was determined by a population allocation calculation by the Office of
Financial Management. In the initial allocation Spokane County was allowed 18 retail stores, the City
was allowed three. Mr. Lamb felt the state would probably turn to something similar to this to determine
a limit in the future.
The Commissioners discussed individual medical patients. How many marijuana patients are allowed to
grow for themselves, up to 15 plants per person, they must not pose a nuisance for the neighbors (sight,
height, smell). Were landlords allowed to restrict growing on their property, it would be up to the
landlord to enforce the terms of a lease, which would be a civil matter between the two parties.
In regard to processing the marijuana, chemical processing is not allowed in some of our less intense
zones because of the processes used to extract the THC. Some processes can be dangerous which is why
they are not allowed in the less intense zones. The extracted THC can then be used in edibles or in other
concentrated forms. Commissioners asked if the Health Department inspected the processing of the food
made with marijuana. The Department of Agriculture is the agency overseeing food preparation.
There was a question if there was a limit on how many cooperatives there could be. There is not, but they
do have some limitations. They can only consist of a maximum of four qualified patients, must be in a
domicile, the patient must have the medical authorization from a doctor, and they must register with the
WSLCB.
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10-22-15 Planning Commission Minutes Page of
To generate further discussion, staff brought up three possible directions the regulations could take.
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
Option 2) Additional regulations
Additional buffer, the possibilities could be 1,000 feet from retail store to any other licensed
use, this results in 61 allowable parcels
Additional buffer could be 1,000 feet from a residential zone
Limit allowable zones
Overlay, limit areas where allowed, e.g. just along west Sprague area
Limit or prohibit cooperatives
Clarify permitting requirements for any modifications for home grows
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
Under all options, existing licensed stores become legal nonconforming uses to the extent they may not
comply with the new regulations.
Commissioner Anderson stated he had come up with another option. He said he felt recreational use of
marijuana was going to stay. He said he felt medical marijuana will not be allowed to be blocked by
cities, his goal would be to have the minimum number of retail outlets as allowed by law, to control the
co-ops, and eliminate processing other than growing in any residential facility but not eliminate the
availability of the infused products for medical purposes. Mr. Anderson offered the following as possible
options for marijuana regulations.
Medical marijuana must be sold only at recreational retail outlets, maintain the existing retail
outlets but require them to obtain a medical endorsement.
Maintain the current buffers, but possibility restrict under age people from entering the stores.
Allow cooperatives under the same zoning rules as recreational growers and with the state
cooperative requirement that one must be an owner of the property.
Allow medical marijuana growing in private residence for personal use assuming approval is
received from the property owner in the case of rented or leased facilities.
Do not allow any solvent extraction within any residence/domicile or property.
Require all infused product or concentrate to be purchased from medical/recreational retail
outlet.
Commissioner Stoy suggested changing the allowable retail outlets to ten. There was a discussion
regarding limiting the number of plants allowed in a residence to keep it below the number which would
trigger a sprinkler system. It is possible that growing the plants could damage a home from the moisture
required to grow them. The question came up as to how enforcement would work if
is growing.
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10-22-15 Planning Commission Minutes Page of
The Commissioners came to a consensus they would like to take public input regarding this subject
before making any suggestions about which way to go with the regulations. They would also like to have
a presentation prior to the public input from the fire and police departments. Ms. Nickerson will also
return with information about the restrictions for single family housing if people want to grow in their
homes.
GOOD OF THE ORDER:
There was nothing for the Good of the Order
ADJOURNMENT:
There being no other business the meeting was adjourned at 8:02 p.m.
________________________ __________________________________
Joe Stoy, Chairperson Date signed
____________________________________
Deanna Horton, Secretary
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10-22-15 Planning Commission Minutes Page of
CITY OF SPOKANE VALLEY
Request for Planning Commission Action
Meeting Date:
November 12, 2015
Item: Check all that apply
old business new business public hearing
information study sessionpending legislation
FILE NUMBER:
STV-2015-0001
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AGENDA ITEM TITLE:
Study session –street vacation of 3Avenue
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DESCRIPTION OF PROPOSAL:
The owner Dan Hultquist requests the vacation of 3
Avenue, an unimproved section 340 feet in length ranging from 40 to 50 feet in width. The
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portion of right-of-way proposed to be vacated is located between Appleway Trail and 4
Avenue just west of Skipworth Road adjacent to six parcels (45212.0703,45212.0719,
45212.0720, 45212.0721, 45212.0722 and 45212.0723).
GOVERNING LEGISLATION
:Spokane Valley Municipal Code (SVMC) 22.140; RCW
35A.47.020 and RCW 35.79
PREVIOUS PLANNING COMMISSIONACTION TAKEN
:None
BACKGROUND
:The City received an application from Dan Hultquist onOctober 21, 2015
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requesting a street vacation of approximately 13,600square feet of 3Avenue. The property
owner is making a request for the following reasons:
1.The area proposed to be vacated is unimproved and not maintained;
2.Location of road limits maximum use of abutting properties;
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3.All six parcels abutting 3Avenue (north/south)are owned by the same property owner;
4.The structures along the west property line hinderfuture right of way connection; and
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5.No parcels use 3Avenue for access.
PROCESS
:The street vacation process is prescribed in SVMC 22.140 andconducted following
the City’s process ofthree touches with the Planning Commission and City Council.
RECOMMENDED ACTION OR MOTION
:No action recommended at this time. The
Planning Commission will conduct a public hearing and consider the street vacation on
December 10, 2015.
STAFF CONTACT
:Karen Kendall, Planner
ATTACHMENTS:
1. Application material
2. PowerPoint presentation
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Record of Survey
Record Ordinance and
Staff Review
Conditions satisfied
City Council
Planning Commission
for December 10, 2015
City Council set public hearing
Submittal
Formal Application
CITY OF SPOKANE VALLEY
Request for Planning Commission Action
Meeting Date:
November 12, 2015
Item: Check all that apply
: consent old business new business
public hearing information admin. report pending legislation
FILE NUMBER:
CTA-2015-0006
AGENDA ITEM TITLE:
Study session Comprehensive Marijuana Regulations
DESCRIPTION OF PROPOSAL:
Providing an update and background on current marijuana laws, including recent 2015 State Legislative
amendments and the . 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. On December 9, 2014, City
Council adopted a moratorium on unlicensed marijuana uses (primarily medical marijuana). On October
6, 2015, City Council adopted a moratorium on marijuana uses licensed by the Washington Liquor and
Cannabis Board . Planning Commission conducted a study session on October 22, 2015.
BACKGROUND:
The City is in the process of developing comprehensive local marijuana regulations,
as required pursuant to moratoriums described below. The Planning Commission conducted a study
session on October 22, 2015 and requested to take public comment and to hear from Spokane Valley
Police and Spokane Valley Fire before deliberating and developing such regulations. Planning
Commission will take public comment on November 12, 2015. Spokane Valley Police and Spokane
Valley Fire will present information at Planning
New Information from WSLCB. Since October 22, 2015, the WSLCB has released some additional
information regarding its ongoing rulemaking process. First, it indicated that it has been working with a
consultant to determine the appropriate number of additional retail stores, both statewide and jurisdiction-
by-jurisdiction. The WSLCB anticipates having the numbers by mid-December to be incorporated into
the proposed rules. Thus, while the proposed rules currently provide for an amount to be determined
later, by adoption there will be either a set amount or methodology. Further, the City will know what
number will be allocated by the State as was done in the first round of retail store licensing. Additionally,
once the rules are adopted with the increased number of retail stores included, the WSLCB will only
license that number of additional stores, regardless of the number that have applied. As of November 2,
2015, the WSLCB had received 700 license applications, compared with 2100 that applied during its
initial round of licensing.
Questions from Planning Commission at its October 22, 2015 meeting. During the October 22, 2015
meeting, there were several questions from Planning Commission regarding a variety of issues. Staff will
answer those issues at the November 12, 2015 meeting. One issue that
attention since the October 22, 2015 meeting was clarification on what the various medical marijuana
terms mean - specifically collective versus medical dispensary versus cooperative versus the new
medical marijuana stores. A collective garden is a term that was originally in chapter RCW 69.51A that
referred to a group of 10 qualified patients who could grow and distribute marijuana amongst themselves.
However, there were no restrictions on the how patients could enter or leave the collective, and so in
many cases they developed into de facto dispensaries. A medical marijuana dispensary was contemplated
in 2011 by the State, but ultimately vetoed by the Governor. Accordingly, a medical marijuana
dispensary is not a legal use under chapter 69.51A. Though technically collectives were the means under
chapter 69.51A RCW for patients to obtain medical marijuana (outside of growing it themselves), the
the existing medical marijuana collectives in operation.
Regardless of term, all such unlicensed medical marijuana uses must cease operations as of July 1, 2015.
After that time, only (1) licensed retail stores and (2) registered cooperatives will be allowed to continue
to operate. A new medical marijuana store is simply a licensed retail store that obtains its medical
marijuana endorsement, where it may then sell medical marijuana to patients tax-exempt. A cooperative
is a completely new term that refers to a group of up to four patients who come together to grow
marijuana for themselves only. They cannot sell or distribute the marijuana they grow to anyone other
than the four patients in the cooperative. They may only have a cooperative in a domicile and cannot be
located within one mile of a licensed retail facility. For purposes of comparison, most likely retail stores
with m
Options
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
definitions 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
uses, and so staff cannot definitively state what a court may do if the City were challenged on a
prohibition.
Option 4 (provided at October 22 meeting):
creational retail outlets, maintain the existing retail
outlets but require them to obtain a medical endorsement.
ning rules as recreational growers and with the state
cooperative requirement that one may only have a cooperative in a domicile.
received from the property owner in the case of rented or leased facilities.
outlet.
A copy of the proposal is provided as part of this packet.
General Background
General information regarding the background actions by the City and state law requirements are
provided in the RPCA from the October 22, 2015 meeting, which is attached.
NOTICE:
Notice of the opportunity for public comment was provided through a publication in the
Valley News Herald
Commission email distribution list. Further, staff contacted known industry advocates and citizen groups
directly regarding the opportunity to provide public comment.
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. Proposal from Commissioner Anderson
C. Copy of RPCA from October 22, 2015
D. Map of existing licensed facilities
CITY OF SPOKANE VALLEY
Request for Planning Commission Action
Meeting Date:
October 22, 2015
Item: Check all that apply
: consent old business new business
public hearing information admin. report 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
. 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 Wash
opinion was that local jurisdictions were not preempted by I-502 from adopting local regulations and
restrictions on state-licensed recreational marijuana uses. The Citare 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
-
endorsement allows a licensed retailer to sell medicinal marijuana to qualifying patients and
designated providers.
dical marijuana endorsement does not prohibit the licensed retailer from also
selling recreational marijuana.
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.
them to purchase
medical marijuana.
- 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.
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.
-
qualifying patients or designated providers.
schools, playgrounds, recreation centers, child care centers, public parks, public transit
centers, library, or applicable game arcades.
locations must be registered with the WSLCB.
cooperative may be located on a single property tax parcel.
The WSLCB may adopt rules relating to security and traceability requirements for
cooperatives.
members), so no business licenses or taxes.
ted 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.
f 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
enforcement interests, public safety, or public health.
quired 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.
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.
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.
collective garden prior to January 1, 2013,(2) have maintained state and local business
license, and (3) are current in all required taxes.
- 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.
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.
- Sets rules for cooperatives, including registration requirements, 8-foot sight obscuring fence or
wall for outdoor grow, and record-keeping.
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
definitions 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
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
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