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HomeMy WebLinkAboutCOW 2012-07-23 Item 4 - Public Hearing - Ordinance Renewing Moratorium on Medical Cannabis Collective Gardens/DispensariesCOUNCIL AGENDA SYNOPSIS Initials ITEMNO. Meetin -q Date Prepared by Mayor's review Cp641 review A 07/23/12 BM L. 08/06/12 BM i 5.A. ITEM INFORMATION STAFF SPONSOR: NORA GIERLOFF I ORIGINAL AGENDA DATE: 7/23/12 AGENDA ITEM TITLE Renewal of a moratorium on medical cannabis collective gardens and dispensaries. CATEGORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 07123112 Mtg Date Mt g Date Mtg Date 816112 Mtg Date Mtg Date 07123112 Mtg Date SPONSOR Council Mayor HR DCD Finance Fire IT P&R Police PW SPONSOR'S On August 15, 2011, the City Council enacted City Council Ordinance No. 2348, which SUMMARY established a one year moratorium on medical cannabis collective gardens and dispensaries. The established moratorium is set to expire at midnight on August 14, 2012. Staff is proposing to renew the moratorium for an additional year. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 07/09/12 COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development CoMMrrrrE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EXPENDITURE REQUIRED $0 Fund Source: N/A Comments: N/A MTG. DATE 07/23/12 i MTG. DATE 07/23/12 AMOUNT BUDGETED $0 APPROPRIATION REQUIRED $0 RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 7/2/12 Draft Ordinance renewing the moratorium Ordinance No. 2348 Informational Memorandum dated August 8, 2011 WCIA Risk Management Bulletin Minutes from the July 9, 2012 Community Affairs and Parks Committee meeting 08/06/12 2 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and Parks FROM: Jack Pace, DCD Director BY: Nora Gierloff, Deputy Director Brandon Miles, Senior Planner DATE: July 2, 2012 SUBJECT: Renewal of Moratorium on Medical Cannabis Collective Gardens and Dispensaries ISSUE Should the City renew a moratorium on medical cannabis collective gardens and dispensaries? BACKGROUND On August 15, 2011, the City Council enacted City Council Ordinance No. 2348, which established a one year moratorium on medical cannabis collective gardens and dispensaries. The established moratorium is set to expire at midnight on August 14, 2012. The memo that was presented to the City Council as part of the review of Ordinance No. 2348 is included as an attachment to this memo. In that memo, staff outlined the various conflicts between State and Federal Laws. Additionally, as the Council is aware, the Washington Cities Insurance Authority (WCIA) issued a risk management bulletin emphasizing the need for cities to proceed cautiously in dealing with collective gardens and dispensaries. City staff had hoped that the State Legislature would provide clarity in the laws governing such uses; however, this was not done in the last session. There are also several relevant initiatives that may be on the November ballot. Should any of these pass, it would likely require that the legislature intervene and provide needed clarification in the laws governing collective gardens and dispensaries. DISCUSSION Given that the City does not know how the proposed initiatives would impact the City's land use regulations, it would seem prudent to wait until after the November election and after the next legislative session before regulation of collective gardens and dispensaries. FINANCIAL IMPACT None RECOMMENDATION The Committee is being asked to forward the Ordinance to the July 23, 2012 Committee of the Whole meeting for a public hearing and discussion. Final action on the Ordinance could occur at the August 6, 2012 Regular Council meeting. ATTACHMENTS Draft Ordinance Ordinance No. 2348 Staff Memo dated August 8, 2011 WCIA Risk Management Bulletin 3 El AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RENEWING A 12 -MONTH MORATORIUM WITHIN THE CITY OF TUKWILA ON THE ESTABLISHMENT, LOCATION, OPERATION, LICENSING, MAINTENANCE OR CONTINUATION OF MEDICAL CANNABIS COLLECTIVE GARDENS OR DISPENSARIES, ASSERTED TO BE AUTHORIZED OR ACTUALLY AUTHORIZED UNDER E2SSB 5073, CHAPTER 181, LAWS OF 2011, CHAPTER 69.51A REVISED CODE OF WASHINGTON, OR ANY OTHER LAWS OF THE STATE OF WASHINGTON; REPEALING ORDINANCE NO. 2348; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City of Tukwila has the authority to adopt a moratorium pursuant to RCW 35A.63.220; and WHEREAS, on August 15, 2011, the Tukwila City Council adopted Ordinance No. 2348, which declared an emergency necessitating the immediate imposition of a moratorium on the establishment, location, operation, licensing, maintenance or continuation of medical cannabis collective gardens or dispensaries, asserted to be authorized under E2SSB 5073, Chapter 181, Laws of 2011, Chapter 69.51A Revised Code of Washington, or any other laws of the State of Washington; and WHEREAS, on October 3, 2011, the Tukwila City Council conducted a public hearing and heard testimony regarding the City's moratorium, and following the public hearing the City Council adopted Ordinance No. 2350, which adopted findings of fact to justify the moratorium adopted by Ordinance No. 2348; and WHEREAS, after adoption of the City's moratorium, and despite calls from other Washington State cities, the Washington State Legislature has failed to provide clarification on the statutes relating to cannabis collective gardens and /or dispensaries; and WHEREAS, several initiatives are currently pending with the Washington Secretary of State's Office addressing the issue of cannabis, and W: Word Processing \Ordinances \Moratorium on marijuana collective gardens- renewed 6 -27 -12 BM:bjs Page 1 of 4 5 WHEREAS, the moratorium adopted by Ordinance No. 2348 will expire before the initiatives go before the people of the State of Washington and, if adopted, before the initiatives would be enacted into law; and WHEREAS, the City is not in the position to expend scarce resources in developing regulations that may be rendered obsolete in a very short time, based on action taken at the State level; and WHEREAS, the City desires to wait for the outcome of the vote on these initiatives and, if passed by the people, to determine any impact these initiatives may have (either directly or indirectly) on requirements relating to cannabis collective gardens and /or dispensaries; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Moratorium Renewed. The City hereby renews the moratorium previously imposed on the establishment, location, operation, licensing, maintenance or continuation of medical cannabis collective gardens or dispensaries, asserted to be authorized under E2SSB 5073, Chapter 181, Laws of 2011, Chapter 69.51A Revised Code of Washington, or any other laws of the State of Washington. Section 2. Public Hearing. Pursuant to RCW 35A.63.220 and following adequate public notice, a public hearing was held on July 23, 2012 to hear testimony regarding the City's moratorium. Section 3. Duration. The moratorium renewed herein shall be in effect until August 14, 2013, unless extended by the City Council, pursuant to State law. Section 4. Definitions. As used in this ordinance, the following terms have the meanings set forth below: A. "Medical marijuana dispensary" means any business, agency, organization, cooperative, network, consultation operation, or other group or person, no matter how described or defined, including its associated premises and equipment, which has for its purpose or which is used to grow, select, measure, package, label, deliver, sell, or otherwise transfer (for consideration or otherwise) marijuana for medical use. One individual person who is the designated provider for only one qualified patient during any 15 -day period and who complies with Chapter 69.51A RCW, shall not be deemed a medical marijuana dispensary for the purposes of this moratorium. B. "Medical marijuana collective garden" means a group of qualifying patients that share responsibility for acquiring and supplying the resources required to produce and process marijuana for medical use. Examples of collective garden resources would include, without limitation, the following: property used for a collective garden; or equipment, supplies, and labor necessary to plant, grow and harvest marijuana; marijuana plants, seeds, and cuttings; and equipment, supplies, and labor necessary for proper construction, plumbing, wiring, and ventilation of a garden of marijuana W: Word Processing \Ordinances \Moratorium on marijuana collective gardens- renewed 6 -27 -12 BM:bjs Page 2 of 4 N plants. A medical marijuana collective garden shall satisfy the above definition regardless of its formation, ownership, management, or operation as a business, agency, organization, cooperative, network, consultation operation, group, or person. One individual person who is the designated provider for only one qualified patient during any 15 -day period and who complies with Chapter 69.51A RCW, or an individual person who is a qualified patient and who complies with 69.51A RCW, shall not be deemed a medical marijuana collective garden for the purposes of this moratorium. Section 5. No Non conforming Uses. No use that constitutes or purports to be a medical marijuana dispensary or medical marijuana collective garden as those terms are defined in this ordinance, that was engaged in that activity prior to the enactment of this ordinance shall be deemed to have been a legally established use under the provisions of the Tukwila Municipal Code and that use shall not be entitled to claim legal non conforming status. Section 6. Adoption of Findings of Fact. The City Council adopts the findings of facts contained in Ordinance No. 2350, by this reference, as well as the "Whereas" clauses contained herein. Section 7. Work Program. The Director of Community Development and /or his /her designee is hereby authorized and directed to address issues related to determining the legality of medical marijuana dispensaries, production facilities, and processing facilities including but not limited to review of the pending dispute between state and federal law enforcement authorities regarding the legality of medical marijuana under any circumstances and notwithstanding the enactment by the legislature of RCW 69.51A. In the event that such uses are ultimately determined to be legal, the work program should also develop appropriate land use regulations pursuant to the newly amended law for review and recommendation for inclusion in the zoning regulations or other provisions of the Tukwila Municipal Code. The Finance Director and /or his /her designee is hereby authorized and directed to develop appropriate business licensing and other regulations pursuant to the newly amended law for review and recommendation for inclusion in the zoning regulations or other provisions of the Tukwila Municipal Code. Section 8. Repealer. Ordinance No. 2348 is hereby repealed. Section 9. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 10. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors, references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. W: Word Processing \Ordinances \Moratorium on marijuana collective gardens- renewed 6 -27 -12 BM:bjs Page 3 of 4 7 Section 11. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 1 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Moratorium on marijuana collective gardens- renewed 6 -27 -12 BM:bjs Page 4 of 4 i Cl of u la Washington Ordinance No. ;3 q F AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A 12 -MONTH MORATORIUM WITHIN THE CITY OF TUKWILA ON THE ESTABLISHMENT, LOCATION, OPERATION, LICENSING, MAINTENANCE OR CONTINUATION OF MEDICAL CANNABIS COLLECTIVE GARDENS OR DISPENSARIES, ASSERTED TO BE AUTHORIZED OR ACTUALLY AUTHORIZED UNDER E2SSB 5073, CHAPTER 181, LAWS OF 2011, CHAPTER 69.51A REVISED CODE OF WASHINGTON, OR ANY OTHER LAWS OF THE STATE OF WASHINGTON; SETTING A DATE FOR A PUBLIC HEARING ON THE MORATORIUM; PROVIDING FOR SEVERABILITY; AND DECLARING AN EMERGENCY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the possession or distribution of cannabis (marijuana) has been and continues to be a violation of state law pursuant to Chapter 69.50 Revised Code of Washington (Washington's Uniform Controlled Substances Act), and federal law, through the Controlled Substances Act "CSA and WHEREAS, Initiative Measure No. 692, approved by the voters of Washington State on November 30, 1998, and now codified as Chapter 69.51A RCW, created a limited defense to marijuana charges under state, not federal, law if the person charged could demonstrate that he or she was a qualifying patient or designated provider as those terms are defined in Ch. 69.51A RCW; and in 2007, the state legislature amended the law; and in 2011 the state legislature passed a third amendment to the law, E2SSB 5073, Chapter 181, Laws of 2011, portions of which the Governor vetoed, and the newly amended law took effect on July 22, 2011; and WHEREAS, prior to issuing her partial veto, the Governor received a letter signed by Washington's two U.S. Attorneys, Michael Ormsby and Jennifer Durkan, and in their letter they wrote that marijuana is a Schedule I controlled substance under federal law and, as such, "growing, distributing and possessing marijuana in any capacity, other than as part of a federally authorized research program, is a violation of federal law regardless of state laws permitting such activities;" and these U.S. Attorneys also concluded, "state employees who conducted activities mandated by the Washington legislative proposals would not be immune from liability under the CSA"; and W: Word Processing)Ordinances )Moratorium on marijuana collective gardens 8 -10 -11 NG:bjs Page 1 of 5 E WHEREAS, because the Governor vetoed 36 of the 58 sections of the legislature's bill amending Chapter 69.51A RCW, the law, in its final form, understandably has inconsistencies and ambiguities; for example, certain sections that were not vetoed make reference to other sections that were vetoed; and WHEREAS, the recent amendments to Chapter 69.51A RCW change the scope and effect of the law, including new sections that affect the rights of qualifying patients and their designated providers; and the law now allows "collective gardens" that provide for growing and cultivating up to 45 plants to serve no more than 10 qualifying patients, and provides other changes to the rights and responsibilities of medical marijuana patients and their designated providers; and WHEREAS, the new law, however, clearly delegates to cities the authority to implement zoning requirements, business licensing requirements, health and safety requirements, and business taxes as those requirements and taxes relate to the production, processing, or dispensing of medical marijuana; and in particular, local regulations could address ambiguities concerning the location and operation of collective gardens, and ensure that provisions related to designated providers are not used to establish a de facto dispensary when the authority for such uses was vetoed; and WHEREAS, the City Council requires time to conduct appropriate research to understand the extent of the changes provided in the new law, to analyze impacts and potential liabilities under federal law, and to determine an appropriate regulatory framework for any new uses that are allowed under these laws; and WHEREAS, the City must ensure that proposed locations for these operations are appropriate and that any potential secondary impacts arising from the operation of these uses or facilities are minimized and mitigated; and these secondary impacts may include, but are not limited to, burglaries associated with the cash and marijuana maintained on the site, or an increase of other illegal activities, such as drug use, within the vicinity of these dispensaries; and WHEREAS, in particular, and without limitation, staff should analyze the impacts of allowing these uses and facilities in residential zones as well as impacts arising from the proximity of these uses and facilities to schools, daycares, parks, religious and cultural facilities, jails and courthouses; and accordingly, the City Council finds that a zoning, licensing, and permitting moratorium should be established pending local review of appropriate locations and design requirements of these operations and impacts of the newly amended law and its interaction with federal law; and WHEREAS, although the City Council determines that a moratorium is necessary for the reasons established above, the City Council emphasizes that it understands the needs of persons suffering from debilitating or terminal conditions, as well as the benefits that approved medical use of marijuana may provide these persons; nevertheless, given the complex legal and regulatory framework surrounding this issue, a moratorium remains necessary until the City Council can adequately address the competing interests at play; W: Word ProcessinglOrdinanceslMoratorium on marijuana collective gardens 8 -10 -11 NG: bjs Page 2 of 5 10 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Preliminary Findings. The recitals and findings set forth above are hereby adopted as the City Council's preliminary findings in support of the moratorium imposed by this ordinance. The City Council may, in its discretion, adopt additional findings at the conclusion of the public hearing referenced in Section 6 below. Section 2. Moratorium Imposed. Pursuant to the provisions of Article 11, Section 11 of the Washington State Constitution, RCW 35A.63.220, and RCW 36.70A.390, a moratorium is hereby enacted prohibiting within the City of Tukwila, the establishment, location, operation, licensing, maintenance, or continuation of any medical cannabis collective garden or any medical marijuana dispensary, whether for profit or not for profit, asserted to be authorized or actually authorized under E2SSB 5073, Chapter 181, Laws of 2011, Chapter 69.51A RCW, or any other laws of the state of Washington. No building permit, occupancy permit, or other development permit or approval shall be issued for any of the purposes or activities listed above, and no business license shall be granted or accepted while this moratorium is in effect. Any land use permits, business licenses or other permits for any of these operations that are issued as a result of error or by use of vague or deceptive descriptions during the moratorium are null and void and without legal force or effect. Section 3. Definitions. As used in this ordinance, the following terms have the meanings set forth below: A. "Medical marijuana dispensary" means any business, agency, organization, cooperative, network, consultation operation, or other group or person, no matter how described or defined, including its associated premises and equipment, which has for its purpose or which is used to grow, select, measure, package, label, deliver, sell, or otherwise transfer (for consideration or otherwise) marijuana for medical use. One individual person who is the designated provider for only one qualified patient during any 15 -day period and who complies with Chapter 69.51A RCW, shall not be deemed a medical marijuana dispensary for the purposes of this moratorium. B. "Medical marijuana collective garden" means a group of qualifying patients that share responsibility for acquiring and supplying the resources required to produce and process marijuana for medical use. Examples of collective garden resources would include, without limitation, the following: property used for a collective garden; or equipment, supplies, and labor necessary to plant, grow and harvest marijuana; marijuana plants, seeds, and cuttings; and equipment, supplies, and labor necessary for proper construction, plumbing, wiring, and ventilation of a garden of marijuana plants. A medical marijuana collective garden shall satisfy the above definition regardless of its formation, ownership, management, or operation as a business, agency, organization, cooperative, network, consultation operation, group, or person. One individual person who is the designated provider for only one qualified patient during any 15 -day period and who complies with Chapter 69.51A RCW, or an individual person who is a qualified patient and who complies with 69.51A RCW, shall not be deemed a medical marijuana collective garden for the purposes of this moratorium. W: Word Processing \Ordinances \Moratorium on marijuana collective gardens 8 -10 -11 NG:bjs Page 3 of 5 11 Section 4. No Non conforming Uses. No use that constitutes or purports to be a medical marijuana dispensary or medical marijuana collective garden as those terms are defined in this ordinance, that was engaged in that activity prior to the enactment of this ordinance shall be deemed to have been a legally established use under the provisions of the Tukwila Municipal Code and that use shall not be entitled to claim legal non conforming status. Section 5. Effective Period for Moratorium. The moratorium set forth in this ordinance shall be in effect for a period of 12 months from the date this ordinance is passed and shall automatically expire at the conclusion of that 12 -month period unless the same is extended as provided in RCW 35A.63.220 and RCW 36.70A.390, or unless terminated sooner by the City Council. Section 6. Public Hearing. Pursuant to RCW 35A.63.220 and RCW 36.70A.390, the City Council will hold a public hearing at the City Council's regular meeting at 7:00 p.m. in Council Chambers on October 3, 2011, or as soon thereafter as the business of the City Council shall permit, and which date is no more than 60 days after the date of adoption herein, in order to take public testimony and to consider adopting further findings. Section 7. Work Program. The Director of Community Development and /or his /her designee is hereby authorized and directed to address issues related to determining the legality of medical marijuana dispensaries, production facilities, and processing facilities including but not limited to review of the pending dispute between state and federal law enforcement authorities regarding the legality of medical marijuana under any circumstances and notwithstanding the enactment by the legislature of RCW 69.51A. In the event that such uses are ultimately determined to be legal, the work program should also develop appropriate land use regulations pursuant to the newly amended law for review and recommendation for inclusion in the zoning regulations or other provisions of the Tukwila Municipal Code. The Finance Director and /or his /her designee is hereby authorized and directed to develop appropriate business licensing and other regulations pursuant to the newly amended law for review and recommendation for inclusion in the zoning regulations or other provisions of the Tukwila Municipal Code. Section 8. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 9. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. W: Word Processing\Ordinances \Moratorium on marijuana collective gardens 8 -10.11 NG:bjs Page 4 of 5 12 Section 10. Effective Date. The City Council hereby finds and declares that there is a potential that persons seeking to engage in marijuana collective garden or dispensary uses could claim vesting under E2SSB 5073 and /or that the presence of any marijuana collective gardens in the City of Tukwila could have negative secondary effects if not first addressed by adequate and appropriate regulations, and that, therefore, an emergency exists which necessitates that this ordinance become effective immediately in order to preserve the public health, safety and welfare. This ordinance shall become effective immediately upon passage. The City Clerk is directed to publish a summary of this ordinance at the earliest possible publication date. PASSED BY THE CITY COUNCIL,OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2011. ATTES j Christy O'F1 erty, CIVIC, City Clerk APPRO� F RM BY: Shy M_ ke, Attorney Ji ggerl:02106r Filed with the City Clerk: CY -f o•- Passed by the City Council��� Published: Effective Date: e[ S .e C Ordinance Number: W: Word Process inglOrdinances\Moratorium on marijuana collective gardens 8 -10 -11 NG:bjs Page 5 of 5 13 14 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Tukwila City Council FROM: Jack Pace, Community Development Director DATE: August 8, 2011 SUBJECT: Moratorium on Medical Cannabis Collective Gardens and Dispensaries ISSUE Should a moratorium on medical cannabis collective gardens and dispensaries be enacted? BACKGROUND The voters of Washington State passed initiative Measure No. 692 on November 30, 1998 allowing for the medical use of marijuana (cannabis). This has been codified as RCW Ch. 69.51A and created a limited defense to charges under state, not federal, law if the person charged can demonstrate that he or she was a qualifying patient or designated provider. In 2007, the state legislature amended the law, and again in 2011, the state legislature passed a third amendment to the law, portions of which the Governor vetoed. The newly amended law took effect on July 22, 2011. These recent amendments to RCW 69.51A change the scope and effect of the law affecting the rights of qualifying patients and their designated providers. The law now allows "collective gardens" that provide for growing and cultivating up to 45 plants to serve no more than 10 qualifying patients. The new law, however, clearly delegates to cities the authority to implement zoning requirements, business licensing requirements, health and safety requirements, and business taxes as those requirements and taxes relate to the production, processing, or dispensing of medical marijuana. In particular, local regulations could address ambiguities concerning the location and operation of collective gardens, and ensure that provisions related to designated providers are not used to establish a de facto dispensary when the authority for such uses was vetoed. Despite this legislation the possession or distribution of cannabis has been and continues to be a violation of state law pursuant to RCW 69.50 (Washington's Uniform Controlled Substances Act), and federal law, through the Controlled Substances Act "CSX). Washington's two U.S. Attorneys state that marijuana is a Schedule I controlled substance under federal law and, as such, "growing, distributing and possessing marijuana in any capacity, other than as part of a federally authorized research program, is a violation of federal law regardless of state laws permitting such activities." These U.S. Attorneys also concluded, "state employees who conducted activities mandated by the Washington legislative proposals would not be immune from liability under the CSA." 15 INFORMATIONAL MEMO Page 2 DISCUSSION The Washington Cities Insurance Authority (WCIA) has issued an update to its earlier risk management bulletin emphasizing the need for cities to proceed cautiously in this uncharted area, see Attachment 2. Given the contradictory legal framework and the lack of clarity in RCW 69.51A the City of Tukwila needs additional time to study the issue and analyze the impacts of allowing these uses and facilities in residential zones as well as impacts arising from the proximity of these uses and facilities to schools, daycares, parks, religious and cultural facilities, jails and courthouses. Establishing a moratorium on these uses would allow the City time to perform this analysis and develop a legally sound approach to the issue. Within 60 days of adoption of the moratorium the City is required to hold a public hearing. RECOMMENDATION The Council is being asked to approve this ordinance for a 12 -month period, which will become effective immediately, at the August 15, 2011 Regular Meeting. A public hearing will be conducted on October 3, 2011. ATTACHMENTS Moratorium Ordinance WCIA Risk Management Bulletin WA2011 Info Memos \MadjuanacollectiveGardens.dcc 16 Risk Management Bulletin Administration #46 June, 2011 Medical Mariivana Law: Post 2011 Washinuton Legislative Session By Mark R. Bucklin, WCIA General Counsel Keating Bucklin McCormack, Inc. P.S. A WCIA Risk Management Bulletin was issued 12/28/2010 addressing the then existing state of the law regarding medical marijuana in Washington and the rise of business license applications for medical marijuana "Dispensaries" across the state. In short, the Bulletin concluded that such "dispensaries" were not legal under the law at that time as they inevitably involved the possession and sale of marijuana not allowed by law. It was recommended that business license applications for dispensaries be denied or revoked. The Bulletin predicted that the topic would be addressed in the 2011 Washington State Legislative Session and changes could occur. The topic did arise, legislation was passed and then the legislation was partially vetoed by the Governor. This Bulletin Supplement will address the law as it now exists, post 2011 Legislative Session. In April 2011, the Washington State Legislature passed Engrossed Second Substitute Senate Bill 5073 through both houses amending Initiative 692 and sent it on to the Governor for signature into law. The bill, as passed, offered sweeping changes to the medical marijuana law in Washington and would have put in place a regulatory licensing scheme for the growth and distribution of medical marijuana through licensed dispensaries to "qualified patients" who had been designated as such by their "health care professionals." The production and sale of medical cannabis and the dispensing standards would have been under regulation by the State Department of Health. Dispensers could sell seeds, plants, usable cannabis, and cannabis products directly to qualifying patients. The bill also provided for optional "collective gardens" where individuals who were qualified patients, or their individual providers, could grow for their own use medical marijuana collectively so long as the participants did not exceed 10 in number or more that 15 plants per person and up to 45 plants total. Before the Governor could sign the bill, the U.S. Attorney's in Seattle and Spokane sent the Governor an advisory letter, (which she had solicited) approved by U.S. Attorney General Holder, warning and advising the Governor that substantial portions of the bill approved by the Legislature was in direct conflict with Federal Drug Laws and that state employees could be at risk of federal prosecution for aiding and abetting illegal drug possession and sale if they processed licenses for production and sale of medical cannabis under the proposed new bill. The letter of April 14, 2011 to Governor Gregoire signed by U.S Attorney Jenny Durkin and U.S. Attorney Michael Ormsby stated, in part: "The Washington legislative proposals will create a licensing scheme that permits large scale marijuana cultivation and distribution. This would authorize conduct contrary to federal law and thus, would undermine the federal government's efforts to regulate the possession, manufacturing and trafficking of controlled substance. Accordingly, the Department could consider civil and criminal legal remedies regarding those who set up 17 marijuana growing facilities and dispensaries as they will be doing so in violation of federal law. Others who knowingly facilitate the action of the licensees, including property owners, landlords, and financier should also know that their conduct violates federal law. In addition, state emplovees who conducted activities mandated by the Washington legislative proposals would not be immune from liability under the CSA (controlled substances act)." (emphasis added). Citing this letter, Governor Gregoire issued a partial veto of ESSSB 5073 on April 29, 2011. The Governor vetoed all the new sections dealing with the state licensing of production and licensed dispensing of medical marijuana. The portions of the bill not vetoed and signed by Governor Gregoire amend the original medical marijuana Initiative 692 passed by the people. So, the question becomes: What is left of ESSSB 5073 after the line item veto of the Governor? What Are the Significant Changes in the Law Under ESSSB 5073 as Sinned? New stronger protections to qualified medical marijuana users and providers from criminal arrest, prosecution and conviction. Previously qualified users and providers were given an affirmative defense to assert at trial if they were charged with a marijuana crime. Now, sec. 401 of the new act provides: "Sec. 401 The medical use of cannabis in accordance with the terms and conditions of this chapter does not constitute a crime and a qualifying patient or designated provider in compliance with the terms and conditions of this chapter may not be arrested, prosecuted, or subject to other criminal sanctions or civil consequences, for possession, manufacture, or delivery of, or for possession with intent to manufacture or deliver, cannabis under state law, or have real or personal property seized or forfeited Section 102 of the new act states: "(a) Qualifying patients with terminal or debilitating ((illnesses)) medical conditions who, in the judgment of their health care professionals, may benefit from the medical use of ((marijuana)) cannabis, shall not be ((found guilty of a crime under state law for their possession and limited use of marijuana)) arrested, prosecuted, or subject to other criminal sanctions or civil consequences under state law based solely on their medical use of cannabis, notwithstanding any other provision of law; (b) Persons who act as designated providers to such patients shall also not be ((found guilty of a crime under state law for)) arrested, prosecuted, or subject to other criminal sanctions or civil consequences under state law, notwithstanding any other provision of law, based solely on their assisting with the medical use of ((marijuana)) cannabis;..." Letter attached Z Partial veto letter attached -2- i Author's Supplemental Note: Did the act, as partially vetoed, really make medical marijuana possession and use exempt from arrest and prosecution? It has been pointed out that section 401 may have been intended to only relate to those qualified users who obtained registry cards provided in Sec. 401(2) and Sec. 901. The Governor vetoed Sec. 901 which would have created the State Registry system. Does the Sec. 102's similar language stand alone and reach the same result? If not, then the language of Sec. 402(1) and (2) which provides an affirmative defense to criminal arrest and charges for qualified patients who do not have registry cards may be the operative law. Court decisions may have to clarify this issue. 2. Health Care Professionals are given greater protection but with greater restrictions regarding issuing "valid documentation" to qualifying patients authorizing medical use of cannabis. a. Health Care Professionals have been given the same protections as qualifying patients and providers as noted above. (Sec 301 (1)) b. The new act states: "Sec. 301(2)(a) A health care professional may only provide a patient with valid documentation authorizing the medical use of cannabis or register the patient with the registry established in section 901 of this act if he or she has a newly initiated or existing documented relationship with the patient, as a primary care provider or a specialist, relating to the diagnosis and ongoing treatment or monitoring of the patient's terminal or debilitating medical condition, and only after: (i) Completing a physical examination of the patient as appropriate, based on the patient's condition and age; (ii) Documenting the terminal or debilitating medical condition of the patient in the patient's medical record and that the patient may benefit from treatment of this condition or its symptoms with medical use of cannabis; (iii) Informing the patient of other options for treating the terminal or debilitating medical condition; and (iv) Documenting other measures attempted to treat the terminal or debilitating medical condition that do not involve the medical use of cannabis. (b) A health care professional shall not: (i) Accept, solicit, or offer any form of pecuniary remuneration from or to a licensed dispenser, licensed producer, or licensed processor of cannabis products; (ii) Offer a discount or any other thing of value to a qualifying patient who is a customer of, or agrees to be a customer of, a particular licensed dispenser, licensed producer, or licensed processor of cannabis products; (iii) Examine or offer to examine a patient for purposes of diagnosing a terminal or debilitating medical condition at a location where cannabis is produced, processed, or dispensed; (iv) Have a business or practice which consists solely of authorizing the medical use of cannabis; -3- 19 (v) Include any statement or reference, visual or otherwise, on the medical use of cannabis in any advertisement for his or her business or practice; or (vi) Hold an economic interest in an enterprise that produces, processes, or dispenses cannabis if the health care professional authorizes the medical use of cannabis. (3) A violation of any provision of subsection (2) of this section constitutes unprofessional conduct under chapter 18.130 RCW." 3. Use of medical cannabis at work or in jails requires no accommodation and may be prohibited. Drug free work places may be continued. Medical insurance is not required to cover medical cannabis. Medical cannabis may not be smoked in public but it is now an infraction, not a crime. Persons under supervised probation or parole may be prohibited from the use medical cannabis. The use of medical cannabis is not a defense to Driving Under the Influence. "Sec. 501. RCW 69.51A.060 and 2010 c 284 s 4 are each amended to read as follows: (1) It shall be a ((misdemeanor)) class 3 civil infraction to use or display medical ((marijuana)) cannabis in a manner or place which is open to the view of the general public. (2) Nothing in this chapter ((requires any health insurance provider)) establishes a right of care as a covered benefit or requires any state purchased health care as defined in RCW 41.05.011 or other health carrier or health plan as defined in Title 48 RCW to be liable for any claim for reimbursement for the medical use of ((marijuana)) cannabis. Such entities may enact coverage or noncoverage criteria or related policies for payment or nonpayment of medical cannabis in their sole discretion. (3) Nothing in this chapter requires any health care professional to authorize the medical use of ((medical marijuana)) cannabis for a patient. (4) Nothing in this chapter requires any accommodation of any on- site medical use of ((marijuana)) cannabis in any place of employment, in any school bus or on any school grounds, in any youth center, in any correctional facility, or smoking ((medical marijuana)) cannabis in any public place ((as that term is defined in RCW 70.160.020)) or hotel or motel. (5) Nothing in this chapter authorizes the use of medical cannabis by any person who is subject to the Washington code of military justice in chapter 38.38 RCW. (6) Employers may establish drug -free work policies. Nothing in this chapter requires an accommodation for the medical use of cannabis if an employer has a drug -free work place." "Sec. 1105. (1)(a) The arrest and prosecution protections established in section 401 of this act may not be asserted in a supervision revocation or violation hearing by a person who is supervised by a corrections agency or department, including local governments or jails, that has determined that the terms of this section are inconsistent with and contrary to his or her supervision. N 20 (b) The affirmative defenses established in sections 402, 405, 406, and 407 of this act may not be asserted in a supervision revocation or violation hearing by a person who is supervised by a corrections agency or department, including local governments or jails, that has determined that the terms of this section are inconsistent with and contrary to his or her supervision. (2) The provisions of RCW 69.51A.040 and sections 403 and 413 of this act do not apply to a person who is supervised for a criminal conviction by a corrections agency or department, including local governments or jails, that has determined that the terms of this chapter are inconsistent with and contrary to his or her supervision. (3) A person may not be licensed as a licensed producer, licensed processor of cannabis products, or a licensed dispenser under section 601, 602, or 701 of this act if he or she is supervised for a criminal conviction by a corrections agency or department, including local governments or jails, that has determined that licensure is inconsistent with and contrary to his or her supervision." "Sec. 501(8) (8) No person shall be entitled to claim the ((affirmative defense provided in RCW 69.5 1 A.040)) protection from arrest and prosecution under RCW 69.51A.040 or the affirmative defense under section 402 of this act for engaging in the medical use of ((marijuana)) cannabis in a way that endangers the health or well -being of any person through the use of a motorized vehicle on a street, road, or highway, including violations of RCW 46.61.502 or 46.61.504, or equivalent local ordinances." 4. A "designated provider" who has been terminated by a "qualified patient" cannot become a designated provider for another qualified patient until 15 days have elapsed. "Sec. 404. (1) A qualifying patient may revoke his or her designation of a specific provider and designate a different provider at any time. A revocation of designation must be in writing, signed and dated. The protections of this chapter cease to apply to a person who has served as a designated provider to a qualifying patient seventy -two hours after receipt of that patient's revocation of his or her designation. (2) A person may stop serving as a designated provider to a given qualifying patient at any time. However, that person may not begin serving as a designated provider to a different qualifying patient until fifteen days have elapsed from the date the last qualifying patient designated him or her to serve as a provider." 5. Qualifying patients may, under restrictions, create "collective gardens" to produce medical cannabis. "Sec. 403. (1) Qualifying patients may create and participate in collective gardens for the purpose of producing, processing, transporting, and delivering cannabis for medical use subject to the following conditions: -5- 21 (a) No more than ten qualifying patients may participate in a single collective garden at any time; (b) A collective garden may contain no more than fifteen plants per patient up to a total of forty -five plants; (c) A collective garden may contain no more than twenty -four ounces of useable cannabis per patient up to a total of seventy -two ounces of useable cannabis; (d) A copy of each qualifying patient's valid documentation or proof of registration with the registry established in section 901 of this act, including a copy of the patient's proof of identity, must be available at all times on the premises of the collective garden; and (e) No useable cannabis from the collective garden is delivered to anyone other than one of the qualifying patients participating in the collective garden. (2) For purposes of this section, the creation of a "collective garden" means qualifying patients sharing responsibility for acquiring and supplying the resources required to produce and process cannabis for medical use such as, for example, a location for a collective garden; equipment, supplies, and labor necessary to plant, grow, and harvest cannabis; cannabis plants, seeds, and cuttings; and equipment, supplies, and labor necessary for proper construction, plumbing, wiring, and ventilation of a garden of cannabis plants. (3) A person who knowingly violates a provision of subsection (1) of this section is not entitled to the protections of this chapter." (Author's Note: Sec 501(1) makes the public disnlav of medical cannabis a civil infraction and this would presumably apply to the display of medical cannabis in a collective garden hence some sort of screening from public view seems to be built into the act.) 6. Cities and Counties mav, but are not required to, zone, license, regulate and tax the production, processing and dispensing of cannabis. This would appear to be now limited to collective gardens since that is the only new activity allowed under the act and individual single production of medical cannabis by a qualified user or provider. "Sec. 1102. (1) Cities and towns may adopt and enforce any of the following pertaining to the production, processing, or dispensing of cannabis or cannabis products within their jurisdiction: Zoning requirements, business licensing requirements, health and safety requirements, and business taxes. Nothing in this act is intended to limit the authority of cities and towns to impose zoning requirements or other conditions upon licensed dispensers, so long as such requirements do not preclude the possibility of siting licensed dispensers within the jurisdiction. If the jurisdiction has no commercial zones, the jurisdiction is not required to adopt zoning to accommodate licensed dispensers. (2) Counties may adopt and enforce any of the following pertaining to the production, processing, or dispensing of cannabis or cannabis products within their jurisdiction in locations outside of the corporate limits of any city or town: 4 22 Zoning requirements, business licensing requirements, and health and safety requirements. Nothing in this act is intended to limit the authority of counties to impose zoning requirements or other conditions upon licensed dispensers, so long as such requirements do not preclude the possibility of siting licensed dispensers within the jurisdiction. if the jurisdiction has no commercial zones, the jurisdiction is not required to adopt zoning to accommodate licensed dispensers." (Author's Note: The Governor vetoed all other sections of the act that would have created legal licensed dispensers of medical cannabis so presumably the language in this section addressing the zoning of licensed dispensers is null and void.) 7. Police and local jurisdictions are given limited immunity under the act for good faith actions. "Sec. 1101. (1) No civil or criminal liability may be imposed by any court on the state or its officers and employees for actions taken in good faith under this chapter and within the scope of their assigned duties. (2) No civil or criminal liability may be imposed by any court on cities, towns, and counties or other municipalities and their officers and employees for actions taken in good faith under this chapter and within the scope of their assigned duties." Challenges and Issues for Local Government Under the New Act 1. What to do with existing medical marijuana /cannabis dispensaries and business license applications for the same? As previously noted, the Governor's line item veto took out all provisions of the law that would have made dispensaries licensed and legal. Hence the law remains the same as before and there is no credible argument that medical cannabis dispensaries that sell cannabis are legal under state or federal law. (See prior WCIA Bulletin of 12/28 /2010 Medical Mariivana Dispensaries -Are Thev Legal The sale of mariivana in the State of Washington remains illegal and subiect to criminal prosecution. (RCW 69.50.401 410.) Nothing in the new act makes the sale of medical marijuana /cannabis legal. Existing dispensaries that are selling marijuana /cannabis are subject to police investigation, arrest and prosecution. Priority of enforcement is up to the local jurisdictions and decisions on resource allocation. Pending or new applications for business licenses dispensaries of medical cannabis should be denied as illegal businesses if there is any evidence that the sale of cannabis is part of the operational scheme or business plan. 2. Should local governmental entities do zoning or zoning moratoriums regarding medical marijuana /cannabis dispensaries? -7- 23 There does not appear to be any current urgency to do so as the legislation that would have allowed legal dispensaries starting in 2012 has been vetoed. However, the political backers of ESSSB 5073 have vowed they will come back with a new proposal in the next legislative session. Preemptive zoning in anticipation that someday dispensaries may become legal under state law is a consideration for local jurisdictions that may be concerned about a future applicant becoming vested to a site that is inconsistent with the overall zoning scheme of the jurisdiction. 3. Should local jurisdictions get involved in the zoning, regulation or licensing of "collective gardens This is a difficult issue. The new act does not require any local action but does allow it under Sec. 1102. The possession of marijuana for any reason under federal law may be a crime and the federal law does not recognize exceptions for medical use of cannabis and marijuana except in authorized clinical situations. Hence, an argument can be made that if local jurisdictions specifically allow, license and regulate collective marijuana gardens they and the employees executing the laws could run a fowl of the U.S. Attorney warnings expressed in letter of April 14, 201 delivered to Governor Gregoire. They could be viewed as aiding and abetting a violation of the federal controlled substances act. Some may argue the threat is remote but no one can say it is impossible. The other side of the argument is that unregulated and uncontrolled collective gardens could become a public safety threat and therefore regulation and licensing is a means of reducing the threat. Under the new law collective gardens may be planted and marijuana grown by qualified patients of up to ten in number. There are no provisions in the state law as to where in a local jurisdiction such gardens may be started nor is there any provisions for fencing, screening, security or safety. It is easy to envision that such collective gardens could become the locus of thefts of marijuana plants and finished product and potentially violent confrontations could occur. Collective gardens could be started next to schools and churches. Some citizens may not appreciate relatively large scale open marijuana cultivation next to their back yards, businesses, churches or schools. There could be political pressure on local elected officials to regulate and license cannabis production via "collective gardens." They may demand regulation and licensing under the authority of Sec. 1102 "Cities and towns may adopt and enforce any of the following pertaining to the production, processing, or dispensing of cannabis or cannabis products within their jurisdiction: Zoning requirements, business licensing requirements, health and safety requirements, and business taxes." (Author's Note: Business taxes on collective gardens is likely not legal as "sales" of medical cannabis is not authorized by the partially vetoed act.) ME 24 Local police authorities may feel that zoning, licensing and regulation of collective gardens would assist them in tracking and distinguishing legal grow operations from illegal ones. There does not appear to be any express authority or provision in the new act that would allow the outright banning of collective gardens by local jurisdictions. Sec. 401 of the act directly empowers qualified users to start and maintain collective gardens. This would appear to preempt local authorities from doing outright bans on collective gardens on private property. Likewise, local jurisdictions could not ban individual qualified patients or their providers from cultivation of medical marijuana /cannabis on private property or at their homes so long as they have the proper documentation and limit their possession to 15 plants or 24 ounces of useable cannabis. If the decision is made to zone, license and regulate collective gardens by the local jurisdiction care will be need to make sure that an appropriate legislative history is developed to document the negative impacts of unregulated collective gardens and to narrowly fashion regulations tailored to address those negative impacts. Failure to do so could lead to challenges that the regulations or zoning violated substantive due process protections under the Constitution. Members are advised to work closely with their legal counsel on these issues. If Members think that zoning regulation and licensing of collective gardens is in their best interest they may wish to quickly impose a moratorium prohibiting their establishment for a brief period of time to develop the necessary legislative history and to adopt appropriate ordinances for zoning, licensing and regulating collective eardens. WCIA strongly advises against Members allowing use of public property or public "pea patches" for use as "collective gardens" where medical marijuana /cannabis is grown. It would expose the jurisdiction to unnecessary liability claims as a landlord under premises liability law if other legal users of the public lands were injured due to criminal activity /thefts potentially associated with the production of the cannabis products. Conclusion The truncated and partially vetoed version of ESSSB 5073 signed into law by Governor Gregoire becomes effective on July 22, 2011. Medical marijuana /cannabis dispensaries that sell cannabis products remain illegal. The fact that the Legislature went to great lengths to try and make them legal and then failed by virtue of the Governor's veto; re- enforces the argument that they were never legal. Nevertheless, proponents of medical cannabis will continue to argue to the contrary and will continue to urge novel schemes and models for the distribution of medical cannabis to local jurisdictions in hopes of obtaining business licenses and therefore apparent legitimacy. It is suggested that any such new model be closely analyzed to determine where the profit may be in 25 made in the business model. If it ultimately involves a sale of marijuana or cannabis products it is likely illegal under both state and federal law. The political battle promises to be carried on in the future. Governor Gregoire's signing letter partially vetoing ESSSB 5073 states she remains open to legislation that would exempt qualifying patients and their providers from criminal penalties when they join a cooperative to distribute medical marijuana. The proponents of ESSSB 5073 promise to return in the next legislative session to have another go at it. It is not clear how any future effort will have success as long as the federal law remains intact and continues to criminalize possession and sale of marijuana regardless of its designation as for medical treatment. Future case law may also clarify or further obscure the picture. It appears the only certainty is more uncertainty as to what future law in this area may develop. -10- 26 Communitv Affairs Parks Committee Minutes Julv 9, 2012 Page 2 Gary Singh concurred with Ms. Mann's comments and suggested the City allow for larger footprints as an incentive to compensate for height restrictions. After a lengthy discussion, the Committee did not feel that they could make a recommendation at this time to in favor of changing the City's current height standards. However, they did state that they would like to staff to explore incentives that would deter three -story homes. Staff will return to Committee later in the year to discuss the results of such research. RETURN TO COMMITTEE LATE 2012. C. Renewal of Moratorium: Medical Cannabis Collective Gardens Dispensaries Staff is requesting Council approval to renew a moratorium on medical cannabis collective gardens and dispensaries. The City Council originally passed a one -year moratorium on August 15, 2011, which is set to expire on August 14, 2012. Due to relevant medical cannabis initiatives that are expected to be on the November 2012 general election ballot, and resulting action in the 2013 State Legislature, staff is seeking renewal of the moratorium for an additional year. It is hopeful that after that time, the State will have provided enough clarity regarding laws governing medical cannabis collective garden and dispensaries for the City to apply appropriate land use regulations. A public hearing will be set for July 23, 2012. UNANIMOUS APPROVAL. FORWARD TO JULY 23 COW FOR DISCUSSION AND PUBLIC HEARING. II1. MISCELLANEOUS Meeting adjourned at 6:15 p.m. Newt ineeding: Monday, July 23, 2012 5:00 p.m. Conference Room #3 Committee Chair Approval Minut t by KAW. 27