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Ordinance 16-010 Marijuana Moratorium Terminated CITY OF SPOKANE VALLEY SPOKANE COUNTY,WASHINGTON ORDINANCE NO. 16-010 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON,ADOPTING AMENDMENTS TO SPOKANE VALLEY MUNICIPAL CODE APPENDIX A, SPOKANE VALLEY MUNICIPAL CODE SECTION 19.120.050, AND CHAPTER 19.85 OF THE SPOKANE VALLEY MUNICIPAL CODE TO UPDATE DEFINITIONS, PROHIBIT NEW LICENSED MARIJUANA RETAIL STORES, COOPERATIVES, AND MARIJUANA CLUBS OR LOUNGES, AUTHORIZE EXISTING LICENSED MARIJUANA RETAIL STORES TO LOCATE PURSUANT TO EXISTING CITY ZONING AND BUFFER ZONE REQUIREMENTS, AND TO ESTABLISH REQUIREMENTS FOR HOME PRODUCTION AND PROCESSING OF MARIJUANA AS ALLOWED BY LAW WITHIN RESIDENTIAL ZONES, AND TERMINATING AND REPEALING THE MORATORIUMS ESTABLISHED PURSUANT TO ORDINANCES 14- 021, 15-017,AND 15-023,AND OTHER MATTERS RELATING THERETO. WHEREAS, since 1970, federal law has prohibited the manufacture and possession of marijuana as a Schedule I drug, based on the federal government's categorization of marijuana as having a"high potential for abuse, lack of any accepted medical use, and absence of any accepted safety for use in medically supervised treatment." Gonzales v. Raich,545 U.S. 1, 14(2005),Controlled Substance Act(CSA), 84 Stat. 1242,21 U.S.C. 801 et seq; and WHEREAS, Initiative Measure No. 692, approved by the voters of Washington State on November 3, 1998, and now codified as chapter 69.51A RCW, created an affirmative defense for"qualifying patients"to the charge of possession of marijuana; and WHEREAS, in 2011,the Washington State Legislature considered and passed ESSSB 5073 that,among other things, (1)authorized the licensing of medical cannabis dispensaries, production facilities,and processing facilities; (2)permitted qualifying patients to receive certain amounts of marijuana for medicinal purposes from designated providers;(3)permitted collective gardens by qualifying patients whereby they may,consistent with state law, collectively grow marijuana for their own use; 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; and WHEREAS,on April 29,2011,former governor Christine Gregoire vetoed the portions of ESSSB 5073 that would have provided the legal basis for legalizing and licensing medical cannabis dispensaries, processing facilities, and production facilities,thereby making these activities illegal; and WHEREAS, on November 6, 2012, voters of the State of Washington approved Initiative Measure No. 502 (1-502), now codified in various chapters of the RCW, including chapters 69.50, 46.04, 46.20, 46.21, and 46.61 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 referred to herein as the "WSLCB")to adopt procedures and criteria by December 1, 2013 for issuing licenses to produce, process, and sell marijuana; and WHEREAS, on August 29, 2013, the United States Department of Justice issued a memo providing updated guidance on marijuana enforcement in response to the adoption of I-502. Several ongoing federal Ordinance 16-010 Page 1 of 10 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 law enforcement interests. A system adequate to that task must not only contain robust controls and procedures on paper; it must also be effective in practice;"and WHEREAS, 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 under chapter 69.51A RCW; and WHEREAS, 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, and such moratorium was extended on December 1, 2015 pursuant to Ordinance No. 15-023; and WHEREAS, 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"); and WHEREAS, 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)expanded the number of licensed marijuana retail licenses to"accommodate the medical needs of qualifying patients and designated providers," (4) authorized qualified patients and designated providers to grow up to 15 marijuana plants per residential unit, (5) created "cooperatives"which must be registered by the WSLCB, and (6) 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 permittees to produce, process, and possess marijuana for certain limited research purposes; and WHEREAS, 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; and WHEREAS, on October 6, 2015, the City adopted Ordinance No. 15-017, adopting and establishing a moratorium on all new licensed marijuana uses in order to allow the City to develop appropriate marijuana regulations in response to the 2015 Washington State Legislative Session and the WSLCB Emergency Rules; and WHEREAS,the Planning Commission conducted meetings on October 22, 2015,November 12, 2015, December 10,2015,February 25,2016,and March 10,2016 to receive public testimony,conduct study sessions, and receive testimony from representatives from Spokane Valley Fire and Spokane Valley Police, and develop Ordinance 16-010 Page 2 of 10 proposed amendments regarding marijuana regulations. Further, on March 3, 2016, the Planning Commission visited a licensed marijuana production and processing facility and a licensed marijuana retail store; and WHEREAS, on September 17, 2015, the Washington State Department of Commerce was notified pursuant to RCW 36.70A.106, providing a 60-day notice of intent to adopt amendments to Spokane Valley development regulations; and WHEREAS, on March 25, 2016, and April 1, 2016, notice of the Planning Commission public hearing was published in the Valley News Herald; and WHEREAS, on April 14, 2016, the Planning Commission held a public hearing, received evidence, information, public testimony, and a staff report followed by deliberations and provided an informal recommendation to consider a modified proposal; and WHEREAS, on April 22, 2016, and April 29, 2016, notice of the Planning Commission public hearing on the modified proposal was published in the Valley News Herald; and WHEREAS, on May 12, 2016, the Planning Commission held a public hearing on the modified proposal, received evidence, information, public testimony, and a staff report followed by deliberations and provided a recommendation; and WHEREAS, on June 7, 2016 the City Council reviewed the proposed amendments; and WHEREAS, on June 28, 2016, the City Council considered a first ordinance reading to adopt the proposed amendments; and WHEREAS, on July 12, 2016, City Council considered a second ordinance reading to adopt the proposed amendments; and WHEREAS, the amendments set forth below are consistent with the goals and policies of the City's Comprehensive Plan; and WHEREAS, the amendments below bear a substantial relation to the public health, safety, and welfare and protection of the environment. NOW,THEREFORE,the City Council of the City of Spokane Valley ordains as follows: Section 1. Findings and Conclusions. The City Council acknowledges that the Planning Commission conducted appropriate investigation and study, held a public hearing on the proposed amendments and recommends approval of the amendments. The City Council has read and considered the Planning Commission's findings. The City Council hereby makes and adopts the following findings and conclusions: A. Growth Management Act Policies — The Washington State Growth Management Act (GMA) provides that each city shall adopt a comprehensive land use plan and development regulations that are consistent with and implement the comprehensive plan. B. Compliance with Spokane Valley Municipal Code(SVMC) 17.80.150(F): 1. The proposed amendments are consistent with the applicable provisions of the Comprehensive Plan: Ordinance 16-010 Page 3 of 10 LUP-1.1: Maintain and protect the character of existing and future residential neighborhoods through the development and enforcement of the City's land use regulations and joint planning. LUP-1.2: Protect residential areas from impacts of adjacent non-residential uses and/or higher intensity uses through the development and enforcement of the City's land use regulations and joint planning. Land Use Goal LUP-10.2: Encourage a diverse array of industries to locate in Spokane Valley. Economic Goal EDG-7: Maintain a regulatory environment that offers flexibility, consistency, predictability and clear direction. Economic Policy EDP-7.1: Evaluate, monitor and improve development standards to promote compatibility between adjacent land uses; and update permitting processes to ensure that they are equitable, cost-effective, and expeditious. Economic Policy EDP-7.2: Review development regulations periodically to ensure clarity, consistency and predictability. Neighborhood Policy NP-2.1: Maintain and protect the character of existing and future residential neighborhoods through the development and enforcement of the City's land use regulations and joint planning. 2. The proposed amendments bear a substantial relation to the public health, safety, welfare, and protection of the environment: The proposed amendments will allow compliance with state law and allow existing state-licensed recreational and medical marijuana businesses to continue to operate within Spokane Valley while separating such uses from identified sensitive uses and the City's existing and future residential uses. Further the amendment will limit additional adverse impacts from new marijuana uses on other existing commercial uses. Finally, the proposed amendment will protect the residential character of residential neighborhoods. Section 2. Amendment. Appendix A of the SVMC is hereby amended with the following additions and amendments,to be added alphabetically: APPENDIX A DEFINITIONS A. General Provisions. 1. For the purpose of this Code, certain words and terms are herein defined. The word"shall" is always mandatory.The word"may" is permissive, subject to the judgment of the person administering the Code. 2. Words not defined herein shall be construed as defined in Webster's New Collegiate Dictionary. 3. The present tense includes the future, and the future the present. 4. The singular number includes the plural and the plural the singular. Ordinance 16-010 Page 4 of 10 5. Use of male designations shall also include female. B. Definitions. *** Manufacturing,petroleum and coal products: The manufacture of asphalt paving,roofing and coating and petroleum refining. See"Industrial, heavy use category." Marijuana club or lounge: A club, association, or other business, for profit or otherwise, that conducts or maintains a premises for the primary or incidental purpose of providing a location where members or other persons may keep or consume marijuana on the premises,whether licensed by the Washington State Liquor and Cannabis Board or not, or such other similar use pursuant to RCW 69.50.465, as now adopted or hereafter amended. Marijuana cooperative: A marijuana cooperative formed pursuant to chapter 69.51A RCW,as now adopted or hereafter amended. A marijuana cooperative is comprised of up to four qualifying patients or designated providers and formed for the purposes of sharing responsibility for acquiring and supplying the resources, and producing and processing marijuana for the medical use of the members of the marijuana cooperative. Marijuana processing: Processing marijuana into usable marijuana, marijuana-infused products, and marijuana concentrates, packaging and labeling usable marijuana, marijuana-infused products, and marijuana concentrates for sale in retail outlets, and sale of usable marijuana, marijuana-infused products, and marijuana concentrates at wholesale by a marijuana processor licensed by the Washington State Liquor and Cannabis Board and pursuant to chapter 69.50 RCW, as now adopted or hereafter amended. See "Industrial, light use category." Marijuana production: Production and sale of marijuana at wholesale by a marijuana producer licensed by the Washington State Liquor and Cannabis Board and pursuant to chapter 69.50 RCW, as now adopted or hereafter amended. See"Agricultural and animals, use category." Marijuana sales: Selling usable marijuana, marijuana-infused products, and marijuana concentrates in a retail outlet by a marijuana retailer licensed by the Washington State Liquor and Cannabis Board, along with any applicable other use allowed as part of the marijuana sales pursuant to an endorsement associated with marijuana retail, including but not limited to marijuana sales with a medical endorsement, operation of a marijuana club or lounge pursuant to an endorsement,or delivery of marijuana that may require an endorsement, all as provided pursuant to chapter 69.50 RCW, as now adopted or hereafter amended. See "Retail sales, use category." Marijuana sales with a medical endorsement: Marijuana sales and medical marijuana sales by a marijuana retailer licensed by the Washington State Liquor and Cannabis Board that has been issued a medical marijuana endorsement pursuant to chapter 69.50 RCW and chapter 69.51A RCW, as now adopted or hereafter amended. Market,outdoor: A temporary or seasonal location where produce and agricultural products including, but not limited to,pumpkins, Christmas trees and firewood, as well as crafts and other items, are offered for sale to the public. See"Retail sales, use category." *** Ordinance 16-010 Page 5 of 10 Section 3. Amendment. SVMC 19.120.050 is hereby amended with the following additions: 19.120.050 Permitted use matrix. Permitted Use Matrix Residential Zone Commercial and Industrial Zone Use Category/Type Supplemental Conditions Districts Districts R- R-R-R-MF-MF- I- I- MUC CMU GO 0 NC C RC P/OS 1 2 3 4 1 2 1 2 Agriculture and Animal Kennel S S S S S P P See zoning districts for conditions Marijuana production S S S S Chapter 19.85 SVMC Orchard, tree farming, commercial P P Food and Beverage Service Espresso establishment P P PPPPP A PP Marijuana club or lounge Chapter 19.85 SVMC Mobile food vendors S S SSSSS S S S SVMC 19.60.010(L),19.70.010(B)(2) Industrial, Light Manufacturing, light P P P Marijuana processing S S S S Chapter 19.85 SVMC Ordinance 16-010 Page 6 of 10 Permitted Use Matrix Residential Zone Commercial and Industrial Zone Use Category/Type Supplemental Conditions Districts Districts R- R-R-R-MF-MF- I- I- MUC CMU GO 0 NC C RC P/OS 1 2 3 4 1 2 1 2 Plastic injection molding, thermoplastic P P P P P P Residential Dwelling, townhouse PPP P P P P Manufactured home park SSS S S SVMC 19.40.130 Marijuana cooperative Chapter 19.85 SVMC Retail Sales Manufactured home sales P P P Marijuana sales S S S S Chapter 19.85 SVMC Market, outdoor P P PP P P A=Accessory use, C = Conditional use, P = Permitted use R = Regional siting, S = Permitted with supplemental conditions T =Temporary use Ordinance 16-010 Page 7 of 10 Section 4. Amendment. Chapter 19.85 SVMC is hereby amended as follows: 19.85.010 Marijuana production standards. A. Marijuana production shall be located or maintained at least 1,000 feet from the nearest property line, measured from the nearest property line of the marijuana production facility to the nearest property line of any one or more of the following uses: 1. Vacant or undeveloped parcels owned by public school districts pursuant to RCW Title 28A; 2. Vacant or undeveloped parcels owned by public library districts pursuant to chapter 27.12 RCW; 3. Vacant or undeveloped parcels leased or owned by the City; provided the following shall be excluded from consideration under SVMC 19.85.010: a. Any stormwater facility or right-of-way parcels owned or leased by the City and designated or identified as a stormwater facility or right-of-way in any document,plan or program adopted by the City Council; and b. The Appleway Trail; or 4. a.Any facility or building designated or identified in any document, plan, or program adopted by the City Council as"Spokane Valley City Hall"or other similar term that identifies such facilities or buildings as the City's primary administrative and legislative location; or b. CenterPlace. B. Marijuana production in the regional commercial and community commercial zones shall only be permitted indoors. 19.85.020 Marijuana processing standards. A. Marijuana processing shall be located or maintained at least 1,000 feet from the nearest property line, measured from the nearest property line of the marijuana processing facility to the nearest property line of any one or more of the following uses: 1. Vacant or undeveloped parcels owned by public school districts pursuant to RCW Title 28A; 2. Vacant or undeveloped parcels owned by public library districts pursuant to chapter 27.12 RCW; 3. Vacant or undeveloped parcels leased or owned by the City; provided the following shall be excluded from consideration under SVMC 19.85.020: a. Any stormwater facility or right-of-way parcels owned or leased by the City and designated or identified as a stormwater facility or right-of-way in any document, plan or program adopted by the City Council; and b. The Appleway Trail; or 4. a. Any facility or building designated or identified in any document, plan, or program adopted by the City Council as"Spokane Valley City Hall"or other similar term that identifies such facilities or buildings as the City's primary administrative and legislative location; or b. CenterPlace. B. Marijuana processing in the regional commercial and community commercial zones shall be limited to packaging and labeling of usable marijuana. 19.85.030 Marijuana retail sales standards. A. New marijuana sales shall not be permitted within any zone. Ordinance 16-010 Page 8 of 10 B. Marijuana sales uses in existence and in continuous and lawful operation prior to the date of these regulations shall not be deemed nonconforming and shall be permitted as a legal use subject to the following: marijuana sales shall be located or maintained at least 1,000 feet from the nearest property line,measured from the nearest property line of the marijuana sales facility to the nearest property line of any one or more of the following uses: 1. Centennial Trail; 2.Appleway Trail; 3.Vacant or undeveloped parcels owned by public school districts pursuant to RCW Title 28A; 4. Vacant or undeveloped parcels owned by public library districts pursuant to chapter 27.12 RCW; 5. Vacant or undeveloped parcels leased or owned by the City;provided any stormwater facility or right- of-way parcels owned or leased by the City and designated or identified as a stormwater facility or right- of-way in any document, plan or program adopted by the City Council shall be excluded from consideration under this section; or 6. a. Any facility or building designated or identified in any document, plan, or program adopted by the City Council as"Spokane Valley City Hall"or other similar term that identifies such facilities or buildings as the City's primary administrative and legislative location; or b. CenterPlace. 19.85.040 Other licensed or registered marijuana uses prohibited. Marijuana production,marijuana processing,and existing marijuana sales shall be permitted pursuant to SVMC 19.85.010, 19.85.020, and 19.85.030. All other commercial and non-commercial licensed or registered marijuana uses are prohibited within all zones of the City. This prohibition includes, but is not limited to, marijuana clubs or lounges and marijuana cooperatives. This prohibition does not apply to home growing or processing of marijuana by qualified patients or designated providers in residential zones as set forth in SVMC 19.85.050 and in compliance with state law. 19.85.050 Marijuana production and processing in residential zones. Washington State law authorizes qualified patients and designated providers to produce marijuana and to process marijuana in dwellings, residences, domiciles, and similar housing units under limited circumstances and with limited processing methods. Subject to applicable federal, state, and local laws, any owner, lessor, or leasing agent may request or require disclosure of a renter or lessee's desire to produce or process marijuana within a rented or leased dwelling unit. In addition to compliance with any applicable state or federal laws and regulations, lawful production or processing of marijuana by any person in a dwelling, residence, domicile, or other similar housing unit shall be subject to all locally applicable land use, development, zoning, and building regulation requirements, including but not limited to all applicable requirements set forth in Titles 17, 18, 19, 20, 21, 22 and 24 SVMC as the same are now adopted or hereafter amended,and the following regulations: A. Any home production or processing of marijuana by any person pursuant to state law shall not be permitted outside of the dwelling or accessory structure; B. Any home production or processing of marijuana by any person as allowed by state law in a dwelling or accessory structure shall be enclosed,blocked,or sight-screened from the public right-of-way and from adjacent properties so that no portion may be readily seen by normal unaided vision or readily smelled from such locations. Accessory structures shall be permanent structures enclosed by a roof and walls on all sides and connected to a permanent foundation. For purposes of SVMC 19.85.050, accessory structures shall not include cargo containers, recreational vehicles or other similar types of structures. Accessory structures shall be completely opaque in addition to necessary site-screening; Ordinance 16-010 Page 9 of 10 C. Home processing of marijuana shall not involve any combustible method and shall comply with all federal, state, and local laws and rules, including all standards adopted by the Washington State Liquor and Cannabis Board; and D. Production or processing of marijuana by any person pursuant to state law in a dwelling or accessory structure shall only be allowed in the R-1, R-2, R-3, and R-4 zones. Section 5. Moratoriums Terminated and Repealed. The moratoriums adopted pursuant to Ordinance Nos. 14-021, 15-017 and 15-023 are hereby terminated and such Ordinances are hereby repealed and shall be without any force or effect as of the effective date of this Ordinance. Section 6. Other sections unchanged. All other provisions of Appendix A and Title 19 SVMC not specifically referenced hereto shall remain in full force and effect. Section 7. Severability. If any section, sentence, clause or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance. Section 8. 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 12'x' day of July, 2016. , /i r ..... WA ) L.R. Higgin , '.Call.... ATTES ` ristine Bainbridge, City Clerk - A provA a o Form: If ii. L Iii Office •• the City Attorney Date of Publication: July 22, 2016 Effective Date: July 27,2016 Ordinance 16-010 Page 10 of 10