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Ordinance 15-023 Marijuana Extrension CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 15-023 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ADOPTING THE RENEWAL AND EXTENSION OF THE MORATORIUM ON ALL UNLICENSED MARIJUANA USES, ORIGINALLY ESTABLISHED PURSUANT TO ORDINANCE NO. 14-021, FOR A PERIOD OF SIX MONTHS, AND ADOPTING FINDINGS OF FACT JUSTIFYING THE RENEWAL AND EXTENSION OF THE MORATORIUM ON UNLICENSED MARIJUANA USES, 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 renewal of a moratorium, interim zoning map, interim zoning ordinance, or interim official control for one or more six- month periods if a public hearing is held and findings of fact are made prior to each renewal; and WHEREAS, pursuant to RCW 35A.63.220 and RCW 36.70A.390, on December 9, 2014, the City adopted Ordinance No. 14-021 establishing a moratorium upon the submission, acceptance, processing, modification or approval of any permit applications or licenses by or for unlicensed marijuana use; and WHEREAS, pursuant to Section 5 of Ordinance No. 14-021, the moratorium shall remain in effect "for a period of 365 days from the [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;"and WHEREAS, pursuant to RCW 35A.63.220, RCW 36.70A.390, on November 10, 2015, the City Council conducted a public hearing on the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months; and Ordinance 15-023 Page 1 of 6 WHEREAS, City Council heard testimony from two interested parties during the public hearing; and 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 and prior to renewing the moratorium. 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, RCW 36.70A.390, and Section 5 of Ordinance No. 14-021, on November 10, 2015, the City Council conducted a public hearing on the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months. The City Council hereby adopts the following as findings of fact in support of the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months: 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 ("I-502"), now codified in chapters 69.50, 46.04, 46.20, 46.21, and 46.61 Revised Code of Washington ("RCW"), which provisions (1) decriminalized possession and use of certain amounts of marijuana and marijuana paraphernalia; (2) amended state laws pertaining to driving under the influence of intoxicants to include driving under the influence of marijuana; and (3) established a regulatory system licensing producers, processors, and retailers of recreational marijuana for adults 21 years of age and older, and required the Washington State Liquor Control Board (now the Washington 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 Ordinance 15-023 Page 2 of 6 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 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. Unlike recreational licensed marijuana production, processing, and retail sales under chapter 69.50 RCW, all other marijuana uses, including medical marijuana and businesses offering "private" marijuana consumption or "vaping," remained unlicensed marijuana uses that were largely unregulated and were not subject to review, licensing, or enforcement by the WSLCB or other State or local agency. 9. The City believed the Washington State Legislature was likely to propose and consider legislation on medical marijuana in its 2015 Legislative session, but the City could not determine what that legislation may have provided or whether it would in fact be passed. 10. As of October 28, 2014, the City had processed business registration endorsements for at least 18 medical-marijuana related businesses within the City, all of which provide marijuana outside of the licensing, regulation, and enforcement of the WSLCB, none of which were or are licensed marijuana producers, processors, or retail outlets under chapter 69.50 RCW, and none of which were or are subject to the City's regulations under SVMC 19.85 or SVMC 19.120.050. 11. 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. 12. 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. 13. Pursuant to Section 3 of Ordinance No. 14-021, the City of Spokane Valley Planning Commission was directed to conduct public hearings and public meetings to consider the impacts of unlicensed marijuana uses, and to work with City staff and citizens of the City to develop proposals for regulations pertaining to the establishment of unlicensed marijuana uses, which regulations may include provisions restricting or limiting unlicensed marijuana use up to and including bans, to be forwarded to the City Council for its consideration. 14. The 2015 Washington State Legislative session began on January 12, 2015, and was extended through a third special session that concluded on July 10,2015. 15. 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"). 16. 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 Ordinance 15-023 Page 3 of 6 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. 17. 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. 18. 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. 19. 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. 20. Due to the WSLCB Emergency Rules, and in order to maintain the status quo to allow the City to(1)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) 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) 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, the City established a moratorium on new licensed or registered uses on October 6,2015 pursuant to Ordinance No. 15-017. 21. 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 will 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 the termination of the moratorium on unlicensed marijuana uses established pursuant to Ordinance No. 14-021 unless such moratorium is renewed and extended for a six-month period. 22. 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 23. The renewal of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a six month period 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 unlicensed marijuana uses. Ordinance 15-023 Page 4 of 6 24. 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." 25. 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. 26. RCW 35A.63.220 and RCW 36.70A.390 both authorize the renewal of a moratorium, interim zoning map, interim zoning ordinance, or interim official control for one or more six-month periods if a public hearing is held and findings of fact are made prior to each renewal. 27. The City properly published notice of the public hearing on the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months, on October 30, and November 6, 2015 in the Valley News Herald, the City's legal publication. 28. Pursuant to RCW 35A.63.220 and RCW 36.70A.390, on November 10, 2015, the City Council conducted a public hearing on the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months. 29. The City Council received testimony from two interested parties who spoke at the public hearing. The City Council has given due consideration to all public testimony received. 30. Pursuant to WAC 197-11-880, the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months is exempt from the requirements of a threshold determination under the State Environmental Policy Act. 31. The renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months is consistent with the goals and policies of the City's Comprehensive Plan. 32. The City Council finds that the renewal and extension of the moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, for a period of six months is necessary for the immediate preservation of the public health, public safety, public property and public peace. Section 2. Renewal and Extension. The moratorium on unlicensed marijuana uses, originally established pursuant to Ordinance No. 14-021, is hereby renewed and extended for a period of six months from December 9, 2015, 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. As part of the renewal and extension of the moratorium, the City shall continue to work through the work plan established pursuant to Section 3 of Ordinance No. 14-021. Ordinance 15-023 Page 5 of 6 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 ls`day of December, 2015. ..4010 ATTES 9 can Grafos, 2-344,;(7, Mayor Christine Bainbridge, City Clerk ;)pr• •d Form: Of ice of the City Attorney Date of Publication: 12/04/2015 Effective Date: 12/09/2015 Ordinance 15-023 Page 6 of 6