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HomeMy WebLinkAbout2014-0602 Document Submitted at Mtg SUbM~~-r~, ORDINANCE NO. AN ORDINANCE AMENDING THE ASHLAND MUNICIPAL CODE TITLE 6 BUSINESS LICENSES AND REGULATIONS TO ADD A CHAPTER ESTABLISHING TIME, PLACE AND MANNER REGULATIONS AND A PERMITTING PROCESS FOR MEDICAL MARIJUANA DISPENSARIES Annotated to show d 'mss and additions to the code sections being modified. Deletions are bold lined thFOugh and additions are in bold underline. WHEREAS, Article 2. Section 1 of the Ashland City Charter provides: Powers of the Citv The City shall have all powers which the constitutions, statutes, and common law of the United States and of this State expressly or impliedly grant or allow municipalities, as fully as though this Charter specifically enumerated each of those powers, as well as all powers not inconsistent with the foregoing; and, in addition thereto, shall possess all powers hereinafter specifically granted. All the authority thereof shall have perpetual succession. WHEREAS, the above referenced grant of power has been interpreted as affording all legislative powers home rule constitutional provisions reserved to Oregon Cities. City of Beaverton v. International Ass'n of Firefighters. Local 1660. Beaverton Shop 20 Or. App. 293; 531 P 2d 730, 734 (1975). WHEREAS, the Oregon Legislature enacted House Bill 3460 in 2013 (ORS 475.314) which requires the Oregon Health Authority to develop and implement a process to register medical marijuana facilities. WHEREAS, under Oregon law, local governments may regulate the operation and location of certain types of businesses within their jurisdiction limits except when such action has been specifically preempted by state statute. WHEREAS, the City Council of the City of Ashland desires to allow operation of medical marijuana dispensaries in the City in ways that protect and benefit the public health, safety and welfare of existing and future residents of the City. WHEREAS, the Council has determined the unique characteristics of medical marijuana dispensary operations and their potential impacts make it necessary to establish particular time, place, and manner requirements for such operations and a separate permitting process for medical marijuana dispensaries, in addition to establishing such facilities as a new regulated land use within the City. WHEREAS, the Council conducted a duly advertised public hearing on the above-referenced amendment on June 17, 2014 and, following the close of the public hearing and record, ORDINANCE No. Page 1 of 7 deliberated and conducted first and second readings approving adoption of the ordinance in accordance with Article 10 of the Ashland City Charter; THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS: SECTION 1. Title 6 Business Licenses And Regulations of the Ashland Municipal Code is hereby amended to add as a new chapter the following provisions concerning medical marijuana dispensaries: SECTION 1 Purpose. The purpose of this ordinance is to minimize any adverse public safety and public health impacts that may result from allowing medical marijuana dispensaries in the City by adopting particular time, place and manner requirements and a separate permitting process for such dispensaries. SECTION 2 Definitions. A. "Administrator" means the City Administrator of the City of Ashland or his/her designee. B. "Cash Accounting" means a cash basis system of accounting in which the operator of an enterprise records revenue and expenses when they are paid, regardless of when goods are received or delivered. C. "Convicted" means found guilty by verdict or finding entered in a criminal proceeding in a court of competent jurisdiction. D. "Dispensary" means a medical marijuana dispensary. E. "Employee" means any person employed for remuneration or under any contract of hire, written or oral, express or implied, by an employer. F. "Marijuana" means all parts of the plant of the Cannabis Moraceae, whether growing or not, the seed thereof, the resin or oil extracted from any part of the plant, and every consumable compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin. G. "Medical Marijuana" means all parts of marijuana plants that may be used to treat or alleviate a qualifying patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition. H. "Medical Marijuana Dispensary" means a medical marijuana facility that is registered by the Oregon Health Authority under ORS 475.300-2475.346 and that sells, distributes, transmits, gives, dispenses or otherwise provides medical marijuana to qualifying patients. 1. "Medical Marijuana Qualifying Patient" means a registry identification card holder (person who has been diagnosed by a physician as having a debilitating medical condition) as further defined by ORS 475.302 (3) or the designated primary giver of the cardholder is defined by ORS 475.302 (5). J. "Minor". means any person under 18 years of age." K. "Operator" means the person who is the proprietor of a dispensary, whether in the capacity of owner, lessee, sub-lessee, mortgagee in possession, licensee or any other capacity. If the operator is a corporation, the term operator also includes ORDINANCE No. Page 2 of 7 each and every member of the corporation's Board of Directors whose directorship occurs in a period during which the dispensary is in operation. If the operator is a partnership or limited liability company, the term operator also includes each and every member thereof whose membership occurs in a period during which the dispensary is in operation. L. "Person" means natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or the manager, lessee, agent, servant, officer or employee of any of them. M. "Premises" means a location registered by the State of Oregon as a medical marijuana dispensary and includes all areas at the location that are used in the business operated at the location, including offices, kitchens, restrooms and storerooms and including all public and private areas where individuals are permitted to be present. N. "Remuneration" means compensation resulting from the employer-employee relationship, including wages, salaries, incentive pay, sick pay, compensatory pay, bonuses, commissions, standby pay, tips, and in-kind goods and services. SECTION 3 Annual Permit Required A person who owns, conducts, operates or maintains, or participates in or causes or allows to be conducted, operated, or maintained, any medical marijuana dispensary in the City must possess a valid annual medical marijuana dispensary permit issued under this ordinance and must comply with the requirements of any other state or local law. SECTION 4 Initial Permit Application and Fee Requirements A. An initial medical marijuana dispensary permit application must be submitted on a form prescribed by the Administrator and must be signed under penalty of perjury. The application documents must include at least the following: 1) The location of the proposed facility. 2) A detailed description of the type, nature and extent of the enterprise to be conducted. 3) A detailed description of the proposed accounting and inventory systems for the dispensary. 4) Certification that the proposed dispensary is registered as an Oregon medical marijuana facility pursuant to ORS 475.300-475.346 and is licensed to conduct business in compliance with Chapter 6.04 of the Ashland Municipal Code. 5) Certification that the proposed dispensary has met all applicable requirements in Title 18 Land Use of the Ashland Municipal Code. 6) Certification that all current fees and taxes owed have been paid. 7) Such other information deemed necessary by the Administrator to conduct any investigation or background check (including fingerprints) of the owner (s), manager(s), employees, and persons or entities providing equity or debt financing for the dispensary. ORDINANCE No. Page 3 of 7 B. An initial medical marijuana dispensary permit and any subsequent renewal permit is valid for a period of one year. C. At the time of submission of an initial dispensary permit application, the applicant must pay a dispensary permit application and investigation fee. The fee amount shall be set by Council resolution. No portion of the dispensary permit fee is refundable in the event operation of the dispensary is discontinued for any reason. D. A separate permit application must be submitted for each proposed dispensary location. SECTION 5 Permit Termination - Renewal A. A dispensary permit terminates automatically one year following the date on which it was approved or most recently renewed. B. A permit renewal form prescribed by the City must be submitted to the City prior to expiration of the permit. C. At the time of submission of a dispensary permit renewal application, the permittee must pay a dispensary permit application and investigation fee. The fee amount shall be set by Council resolution. SECTION 6 Permit Conditions Any medical marijuana dispensary must comply with the following requirements, in addition to any other state or local requirements: A. The dispensary must meet applicable building and fire codes. B. The dispensary must not manufacture or produce any extracts, oils, resins or similar derivatives of marijuana on-site and must not use open flames in the preparation of any products. C. Marijuana and tobacco products must not be smoked, ingested or otherwise consumed on the premises of the dispensary. D. The dispensary must utilize an air filtration and ventilation system which prevents marijuana odors from being detected beyond the premises by persons with, ordinary sensibility to odors. E. The dispensary must not be co-located with any marijuana social club or smoking club. F. A person who has been convicted once or more within the previous five years or convicted twice or more in the previous ten years for the manufacture or delivery of a controlled substance in Schedule I or Schedule II may not (1) be an operator or employee of a dispensary: (2) have an ownership interest of 5% or more in the facility or in any entity that has a 25% or more ownership interest in the facility; (3) provide equity or debt financing for the dispensary; or (4) have an ownership interest of 5% or more in any entity that provides or has provided equity or debt financing for the dispensary. The Administrator may conduct a criminal records check under ORS 181.534 on each operator and employee of any dispensary proposed or operating in the City and on each person or entity providing equity or debt financing for any such dispensary. ORDINANCE No. _ Page 4 of 7 G. The Dispensary must have an accounting system specifically designed for enterprises reliant on transactions conducted primarily in cash and sufficient to maintain detailed, auditable financial records. H. Each dispensary operator must, on or before the 25th day of the month following the end of each calendar quarter (in the months of April. July. October and January), file a return with the Administrator on forms provided by the City presenting the information in paragraphs 1through 6 of this subsection 6H for each month of the preceding quarter. The operator may request, or the Administrator may require shorter reporting periods for any operator if the operator or Administrator deems it necessary in order to ensure timely reporting, and the Administrator may require additional information as he or she deems necessary. 1) Records of wholesale purchases and retail sales: 2) Names and any aliases of any operator of the dispensary, as that term is defined in Section 2 of this ordinance; 3) Names and any aliases of persons engaged as employees of the dispensary: 4) Names of and any aliases persons with an ownership interest of 5% or more in the dispensary or in any entity that has a 25% or more ownership interest in the dispensary: 5) Names and any aliases of persons who have provided equity or debt financing for the dispensary: and 6) Names and any aliases of persons who have an ownership interest of 5% or more in any entity that provides or has provided equity or debt financing for the dispensary entities from whom owners of the dispensary have borrowed funds for establishing or operating the dispensary 1. Each dispensary must display its current permit inside the dispensary in a prominent place easily visible to persons conducting business in the dispensary. SECTION 7 Examination of Books. Records and Premises A. To determine compliance with the requirements of this ordinance; Title 18 Land Use of the Ashland Municipal Code; and any local tax measures, the Administrator may examine or cause to be examined by an agent or representative designated by the Administrator, at any reasonable time, the premises of the dispensary and any and all financial, operational and facility information, including books, papers, payroll reports and state and federal income tax returns, regarding the dispensary. Every permittee is directed and required to furnish to the Administrator the means, facilities and opportunity for making such examinations and investigations. B. Each dispensary operator must keep and preserve for a period of at least three (3) years at a minimum records of wholesale purchases and retail sales, including a cash receipts and expenses Journal. These records must reconcile to the operator's income tax reports. If the Administrator finds the books and records of the operator or deficient in any way or if the operator's accounting system is not ORDINANCE No. _ Page 5 of 7 auditable, the operator must modify the dispensary's accounting system to meet the requirements of the Administrator. C. The Ashland Police Department shall be allowed to view surveillance videotapes at any reasonable time. SECTION 8 Administrative and Other Remedies for Noncompliance, Administrative Appeals, and Penalties A. The Administrator may deny, suspend, or revoke a dispensary permit for failure to comply with this ordinance or rules adopted under this ordinance, for submitting falsified information to the City for the Oregon Health Authority, or for noncompliance with any other City ordinances. 1) Any suspension or revocation pursuant to this section shall be in writing, setting forth the reasons therefor, and giving the permittee written notice by first-class United States Mail at least five days prior to effective date of the revocation or suspension. 2) A decision to deny, suspend, or revoke a dispensary permit may be appealed as provided in AMC 2.30. The findings of the hearings officer shall be final and conclusive, and shall be served upon the appellant in the manner prescribed for service of notice of hearing. B. In addition to the remedies of suspension and revocation, failure to comply with the requirements of this ordinance may be prosecuted as a Class I violation, punishable as prescribed in AMC 1.08.020* C. In addition to the remedies of suspension and revocation, submitting false or fraudulent information to the City may be prosecuted as a Class C misdemeanor subject to AMC 1.08. D. The remedies provided in this section are not exclusive and shall not prevent the City from exercising any other remedy available under the law, nor shall the provisions of this ordinance prohibit or restrict the City or other appropriate prosecutor from pursuing criminal charges under state law or City ordinance. SECTION 9 Confidentiality Except as otherwise required by law, it shall be unlawful for the City, any officer, employee or agent to divulge, release or make known in any manner any financial or employee information submitted or disclosed to the City under the terms of this ordinance. Nothing in this section shall prohibit: A. The disclosure of the names and addresses of any operator or provider of equity or debt financing for a dispensary; or B. The disclosure of general statistics in a form which would prevent identification of financial information regarding a dispensary operator; or C. The presentation of evidence to a court, or other tribunal having jurisdiction in the prosecution of any criminal or civil claim by the City under this ordinance; or D. The disclosure of information when such disclosure of conditionally exempt information is ordered under public records law procedures. J / ORDINANCE No. _ Page 6 of 7 SECTION 2. Severability. If any section, subsection, paragraph, sentence or word in this ordinance is deemed to be invalid or beyond the authority of the City, either on its face or is applied, the invalidity of such provision shall not affect the other sections, subsections, paragraphs, sentences, or words of this ordinance, and the application thereof; and to that end sections, subsections, paragraphs, sentences and words of this chapter shall be deemed severable. SECTION 3. Codification. Provisions of this ordinance shall be incorporated in the City Code and the word "ordinance" may be changed to "code", "article", "section", or another word, and the sections of this ordinance may be renumbered, or re-lettered, provided however that any Whereas clauses and boilerplate provisions, and text descriptions of amendments (i.e. Sections 1-4) need not be codified and the City Recorder is authorized to correct any cross-references and any typographical errors. The foregoing ordinance was first read by title only in accordance with Article X, Section 2(C) of the City Charter on the day of 2014, and duly PASSED and ADOPTED this day of 2014. Barbara M. Christensen, City Recorder SIGNED and APPROVED this _ day of , 2014. John Stromberg, Mayor Reviewed as to form: David Lohman, City Attorney ORDINANCE No. _ Page 7 of 7