Ordinance 15-020 re 15-017 Moratorium CITY OF SPOKANE VALLEY
SPOKANE COUNTY,WASHINGTON
ORDINANCE NO. 15-020
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY,
WASHINGTON, ADOPTING FINDINGS OF FACT JUSTIFYING THE ADOPTION
OF ORDINANCE NO. 15-017 AND THE ESTABLISHMENT OF A MORATORIUM ON
ALL NEW MARIJUANA PRODUCERS, MARIJUANA PROCESSORS, MARIJUANA
RETAILERS, MARIJUANA RESEARCHERS, MARIJUANA TRANSPORT AND
DELIVERY USES, AND MARIJUANA COOPERATIVES, LICENSED BY OR
REGISTERED WITH THE WASHINGTON STATE LIQUOR AND CANNABIS
BOARD,AND OTHER MATTERS RELATING THERETO.
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
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, provided the City conducts a public hearing on the moratorium within 60 days of the date
of adoption of the moratorium; and
WHEREAS, pursuant to RCW 35A.63.220 and RCW 36.70A.390, on October 6, 2015, the City
adopted Ordinance No. 15-017 establishing a moratorium upon the submission, acceptance, processing,
modification or approval of any permit applications or licenses by or for any new licensed or registered
marijuana use; and
WHEREAS, pursuant to RCW 35A.63.220, RCW 36.70A.390 and Ordinance No. 15-017, on
October 27, 2015,the City Council conducted a public hearing on the adoption of Ordinance No. 15-017
and the establishment of a moratorium on new licensed or registered marijuana uses;and
WHEREAS, City Council heard testimony from 11 interested parties during the public hearing;
and
Ordinance 15-020 Page 1 of 6
WHEREAS, pursuant to RCW 35A.63.220 and RCW 36.70A.390,the City Council is required to
adopt findings of fact after conducting the public hearing.
NOW,THEREFORE,the City Council of the City of Spokane Valley ordains as follows:
Section 1. Findings of Fact. Pursuant to RCW 35A.63.220 and RCW 36.70A.390, on
October 27, 2015, the City Council conducted a public hearing on Ordinance No. 15-017 and the
establishment of a moratorium on new licensed or registered marijuana uses. The City Council hereby
adopts the following as findings of fact in support of Ordinance No. 15-017 and the establishment of a
moratorium on new licensed or registered marijuana uses:
1. 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.
2. 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.
3. 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; and (4)
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.
4. 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.
5. On November 6, 2012,voters of the State of Washington approved Initiative Measure No. 502
("1-502"), 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 (now the Washington State Liquor and Cannabis
Board, and hereinafter referred to as the "WSLCB") to adopt procedures and criteria by December 1,
2013 for issuing licenses to produce, process,and sell marijuana.
6. 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 health, and other
Ordinance 15-020 Page 2 of 6
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."
7. 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.
8. The City's regulations were premised, in part, upon the laws and regulations then in effect
(chapter 69.50 RCW and chapter 314-55 WAC), that allocated a total of three marijuana retail licenses
within the City and provided a maximum limit on marijuana production space.
9. On December 9, 2014,the City adopted Ordinance No. 14-021, adopting a moratorium on the
establishment of new unlicensed marijuana uses in order to allow the City to consider any marijuana-
related legislation adopted as part of the 2015 Washington State Legislative Session and to develop
comprehensive marijuana regulations incorporating such changes.
10. The moratorium adopted by the City on December 9, 2014, did not impact existing licensed
or unlicensed marijuana facilities and did not prohibit the City from processing applications related to
licensed marijuana producers, processors, and retailers because the City had already adopted regulations
for such uses that were premised, in part, upon the laws and regulations then in effect (chapter 69.50
RCW and chapter 314-55 WAC),that allocated a total of three retail licenses within the City and provided
a maximum limit on marijuana production space.
11. As of October 27,2015,the City had 19 licensed marijuana producers,21 licensed marijuana
processors and three licensed marijuana retailers located within its boundaries. The City believes all three
licensed marijuana retailers are operational and are selling marijuana at their locations within the City.
The City processed five business registrations related to medical marijuana in 2013 and 10 business
registrations in 2014 prior to the adoption of the moratorium. The City does not know how many
unlicensed medical marijuana stores are currently in operation.
12. In 2015, the Washington State Legislature adopted the "Cannabis Patient Protection Act,"
Laws of 2015, ch. 70, and additional comprehensive marijuana-related regulations pursuant to Laws of
2015, ch.4 and other enacted legislation(collectively,the"2015 Marijuana Legislation").
13. As part of the 2015 Marijuana Legislation, the State (1) reconciled the medical and
recreational marijuana markets by establishing a "medical marijuana endorsement" that retail licensees
will be able to obtain to sell medical marijuana to qualified patients and designated providers, while also
making unlicensed collective gardens illegal by July 1, 2016, (2) expanded the amount of marijuana
production that may be conducted state-wide to accommodate the needs of marijuana retailers with
medical marijuana endorsements, (3) created "cooperatives" which must be registered by the WSLCB,
and (4) created a new license for common carriers to deliver and transport marijuana between licensed
marijuana producers, processors, and retailers delivery/transportation and created a new marijuana
research license for permitees to produce, process, and possess marijuana for certain limited research
purposes.
14. As part of the 2015 Marijuana Legislation, the State required an increase in the number of
marijuana retail licenses to "accommodate the medical needs of qualifying patients and designated
providers" and directed the WSLCB to promulgate rules and regulations for setting the number of
increased retail licenses, accepting new retail license applications and accepting applications for medical
marijuana endorsements.
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15. On September 23, 2015, the WSLCB issued, effective immediately, its Emergency Rules
#15-18 (the "WSLCB Emergency Rules")to amend chapter 314-55 WAC to provide for(1)the WSLCB
to begin accepting marijuana retail license applications on October 12, 2015,with the limit on the number
of marijuana retail licenses to be set at a later date, (2) the WSLCB to begin accepting applications for
medical marijuana endorsements, and (3) the state cap on maximum marijuana production space to be
increased to an amount to be set at a later date.
16. On September 23, 2015, the WSLCB also issued its Proposed Rules #15-17, which are
subject to public comment, and which, as of October 27, 2015, provided that the limit on the number of
marijuana retail licenses and state cap on marijuana production space will be set at a later date.
17. 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.
18. 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 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."
19. 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.
20. 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.
21. Pursuant to Ordinance No. 15-017, City Council adopted a work plan to address the issues
involving the City's regulation and establishment of licensed and registered marijuana uses.
22. The City has already begun the work plan and the City's Planning Commission conducted its
first study session to develop comprehensive marijuana regulations, including regulations to govern
medical and recreational marijuana, on October 22, 2015. Planning Commission is scheduled to conduct
a second study session and take public comment on November 12,2015.
23. Although the City has begun the work plans established in Ordinance No. 14-021 and
Ordinance No. 15-017, the Planning Commission and City Council would not have an opportunity to
fully consider and develop comprehensive marijuana policy decisions that give adequate consideration to
2015 Marijuana Legislation, or to adopt such City regulations, prior to October 12, 2015 when the
WSLCB began accepting and processing additional marijuana retail licenses.
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24. Between October 12 and October 27, 2015, and after the date of the adoption of the
moratorium on licensed and registered marijuana uses, the City received 19 business license endorsement
requests for marijuana-related businesses seeking a marijuana-related license from the WSLCB.
25. New proposals for additional marijuana retail licenses that began being submitted on October
12, 2015, pose an imminent threat to the public health and safety as they may create incompatible land
uses subject to the City's existing regulations which were premised, in part, on a total of three marijuana
retail stores and a state cap on the maximum amount of marijuana production space, without allowing the
City to fully consider the impacts of the 2015 Marijuana Legislation or the WSLCB Emergency Rules
and proposed rules. Further, allowing an unknown number of marijuana retail licenses to vest or be
located within the City prior to completion of the City's review and development of its marijuana zoning
and land use regulations impairs the City's ability (1) to give full consideration to the 2015 Marijuana
Legislation, WSLCB Emergency Rules, WSLCB proposed rules, and potential increase in marijuana
retail stores and marijuana production space, (2) to develop a reasoned approach to the public health,
safety, and welfare impacts from the 2015 Marijuana Legislation, WSLCB Emergency Rules, WSLCB
proposed rules, and the potential increase in marijuana retail stores and marijuana production space, and
(3) to adopt appropriate comprehensive zoning and land use regulations governing medical and
recreational marijuana based upon the impacts from the 2015 Marijuana Legislation, WSLCB Emergency
Rules,and WSLCB proposed rules.
26. Additional time is necessary for Planning Commission and City Council (1) to give full
consideration to the 2015 Marijuana Legislation, WSLCB Emergency Rules, WSLCB proposed rules, and
potential increase in marijuana retail stores and marijuana production space, (2) to develop a reasoned
approach to the public health, safety, and welfare impacts from the 2015 Marijuana Legislation, WSLCB
Emergency Rules, WSLCB proposed rules, and potential increase in marijuana retail stores and marijuana
production space, and (3)to adopt appropriate comprehensive zoning and land use regulations governing
medical and recreational marijuana based upon the impacts from the 2015 Marijuana Legislation,
WSLCB Emergency Rules, and WSLCB proposed rules.
27. Washington State law, including RCW 35A.63.220 and RCW 36.70A.390, authorizes the
City to adopt a moratorium, provided the City conducts a public hearing on the moratorium within 60
days of the date of adoption of the moratorium.
28. The City has authority to establish a moratorium concerning the establishment and operation
of licensed or registered marijuana uses as a necessary stop-gap measure: (1)to give full consideration to
the 2015 Marijuana Legislation, WSLCB Emergency Rules, WSLCB proposed rules, and potential
increase in marijuana retail stores and marijuana production space, (2)to develop a reasoned approach to
the public health, safety, and welfare impacts from the 2015 Marijuana Legislation, WSLCB Emergency
Rules, WSLCB proposed rules, and potential increase in marijuana retail stores and marijuana production
space, (3) to adopt appropriate comprehensive zoning and land use regulations governing medical and
recreational marijuana based upon the impacts from the 2015 Marijuana Legislation, WSLCB Emergency
Rules, and WSLCB proposed rules, and (4) to avoid applicants possibly establishing vested rights
contrary to and inconsistent with any revisions the City may make for its rules and regulations.
29. A moratorium provides 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 new licensed or registered marijuana uses.
30. The City properly published notice of the public hearing on the moratorium on October 10,
October 16,and October 23 in the Valley News Herald,the City's legal publication.
Ordinance 15-020 Page 5 of 6
31. Pursuant to RCW 35A.63.220 and RCW 36.70A.390 and Section 4 of Ordinance No. 15-017,
the City Council conducted a public hearing on the adoption of Ordinance 15-017 and the establishment
of a moratorium on new licensed or registered marijuana uses on October 27,2015.
32. The City Council received testimony from 11 interested parties who spoke at the public
hearing. The City Council has given due consideration to all public testimony received.
33. Pursuant to WAC 197-11-880, the adoption of Ordinance No. 15-017 and the ongoing
moratorium is exempt from the requirements of a threshold determination under the State Environmental
Policy Act.
34. The adoption of Ordinance No. 15-017 and the establishment of a moratorium on new
licensed or registered marijuana uses is consistent with the goals and policies of the City's
Comprehensive Plan.
35. 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
Section 2. Duration. The moratorium set forth in Ordinance No. 15-017 shall be and remain
in effect for a period of 365 days from its effective date, 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 3. 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 4. 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 5. Effective Date. This Ordinance shall be in full force and effect five days after
publication of this Ordinance or summary thereof in the official newspaper of the City of Spokane Valley
as provided by law.
Passed by the City Council this 18th day of November, 2015.
AT ES Dean Grafos,M. •or
Christine Bainbridge, City Clerk lj
Approved as to Form:
Offic; of the City Attorney
Date of Publication: // -p9- g Cl in--
Effective Date: j - �)/5
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