HomeMy WebLinkAbout3099 Medical Marijuana Dispensaries TPM
ORDINANCE NO. r D~
AN ORDINANCE AMENDING THE ASHLAND MUNICIPAL
CODE TITLE 6 BUSINESS LICENSES AND REGULATIONS
TO ADD CHAPTER 6.50 ESTABLISHING TIME, PLACE
AND MANNER REGULATIONS AND A PERMITTING
PROCESS FOR MEDICAL MARIJUANA DISPENSARIES
WHEREAS, Article 2. Section 1 of the Ashland City Charter provides:
Powers of the City 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,
deliberated and conducted first and second readings approving adoption of the ordinance in
accordance with Article 10 of the Ashland City Charter;
ORDINANCE No. Page 1 of 7
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 6.50 with the following provisions concerning medical
marijuana dispensaries:
SECTION 6.50.010 Purpose.
The purpose of this chapter 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 6.50.020 Definitions.
A. "Administrator" means the City Administrator of the City of Ashland or his/her designee.
B. "CFR Schedule I or Schedule II" means the controlled substances designated in the Code
of Federal Regulations Title 21, Chapter II, Part 1308.
C. "Company Principal" means a person who is an officer or director of a legal entity or has
a controlling interest in the entity, through ownership or control of 10% or more of the
stock in the entity or 10% or more of the total membership interest in the entity or 10% or
more of the total investment interest in the entity.
D. "Convicted" means found guilty by verdict or finding entered in a criminal proceeding in
a court of competent jurisdiction.
E. "Dispensary" means a medical marijuana dispensary.
F. "Financial Interest" exists when a person, the person's immediate family, or a legal entity
of which the person is a company principal (1 receives or is entitled to receive directly or
indirectly any of the benefits of the dispensary; (2) rents or leases real property to the
operator for use by the business; (3) rents pi ~ dsses personal property to the operator for a
S({ commercially unreasonable rate; (4) & or gives money, real property or personal
(O~j (SI property to the operator for use in the business. For purposes of this section, monies
1 owed to suppliers and contractors for the reasonable cost of goods and services received
do not constitute a financial interest in a dispensary.
G. "Marijuana" means all parts of the plant of the Cannabis Moraceae, whether growing or
not, the resin extracted from any part of the plant; and every compound, manufacture,
salt, derivative, mixture, or preparation of the plant or its resin, as may be defined by
Oregon Revised Statutes or as they currently exist or may from time to time be amended.
It does not include the mature stalks of the plant, fiber produced from the stalks, oil or
cake made from the seeds of the plant, any other compound, manufacture, salt, derivative,
mixture, or predation of the mature stalks (except the resin extracted therefrom), fiber,
oil, or cake, or the sterilized seed of the plant which is incapable of germination.
H. "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.
1. "Medical Marijuana Dispensary" means a medical marijuana facility that is registered by
the Oregon Health Authority under ORS 475.300-475.346 and that sells, distributes,
transmits, gives, dispenses or otherwise provides medical marijuana to medical marijuana
qualifying patients.
ORDINANCE No. Page 2 of 7
J. "Medical Marijuana Qualifying Patient" means a registry identification cardholder
(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 caregiver of
the cardholder is defined by ORS 475.302(5).
K. "Minor" means any person under 18 years of age.
L. "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 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.
M. "Person" means natural person, joint-venture, joint stock company, partnership,
association, club, company, corporation, business, trust, organization, or any group or
combination acting as a unit, including the United States of America, the State of Oregon
and any political subdivision thereof, or the manager, lessee, agent, servant, officer or
employee of any of them.
N. "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, storerooms, and including all public
and private areas where individuals are permitted to be present.
SECTION 6.50.030 Annual Permit Required
The operator of any medical marijuana dispensary in the City must possess a valid annual
medical marijuana dispensary permit issued under this chapter and must comply with the
requirements of any other state or local law or regulation. The permit terms shall be for a
fiscal year, beginning July 1 and ending June 30 of the next year.
SECTION 6.50.040 Initial Permit Application and Fee
A. Application forms for medical marijuana dispensary permits will be available at City
offices. Applications for initial and renewal medical marijuana dispensary permits must
be submitted to the City 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) The true names and addresses and any aliases of the persons that have, or have had
within the preceding year, a financial interest in the dispensary
3) A detailed description of the type, nature and extent of the enterprise to be conducted
at the proposed facility.
4) A detailed description of the proposed accounting and inventory systems for the
dispensary.
5) 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.
6) Certification that the proposed dispensary has met all applicable requirements in Title
18 Land Use of the Ashland Municipal Code.
7) Certification that all current fees and taxes owed have been paid.
ORDINANCE No. Page 3 of 7
B. 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.
C. A separate permit application must be submitted for each proposed dispensary location.
SECTION 6.50.050 Permit Termination - Renewal - Fee
A. A dispensary permit terminates automatically on June 30 of each year, unless a permit
renewal application is approved.
B. A dispensary permit terminates automatically if federal or state statutes, regulations or
guidelines are modified, changed, or interpreted in such a way by state or federal law
enforcement officials as to prohibit operation of the dispensary under this ordinance.
C. A permit renewal application shall include information similar in nature to that provided
on the permittee's initial permit application and must be submitted to the City prior to
expiration of the permit.
D. At the time of submission of a dispensary permit renewal application, the permittee must
pay a dispensary permit renewal application and investigation fee. The fee amount shall
be set by Council resolution.
SECTION 6.50.060 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 have a current City business license.
B. The dispensary must meet applicable land-use, building and fire codes.
C. 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.
D. Marijuana and tobacco products must not be smoked, ingested or otherwise consumed on
the premises of the dispensary.
E. Operating hours for retail sales to Medical Marijuana Qualifying Patients must be no
earlier than 9:00 a.m. or later than 7:00 p.m. on the same day.
F. The dispensary must utilize an air filtration and ventilation system which, to the greatest
extent feasible, confines all objectionable odors associated with the dispensary to the
premises. For the purposes of this provision, the standard for judging "objectionable
odors" shall be that of an average, reasonable person with ordinary sensibilities after
taking into consideration the character of the neighborhood in which the odor is made and
the odor is detected.
G. The dispensary must not be co-located on the same property or within the same building
with any marijuana social club or smoking club.
H. No minor is allowed on the premises unless the minor is a cardholder and is accompanied
by a parent or guardian whose purpose is to procure the minor's medicine. No minor is
allowed to enter the area of the facility where medical marijuana is present.
1. A person who has been convicted in any state for the manufacture or delivery of a
controlled substance listed in CFR Schedule I or Schedule II once or more in the previous
five years or twice or more in the person's lifetime may not be an operator or employee
ORDINANCE No. Page 4 of 7
of a dispensary proposed or operating in the City or have a financial interest in a
dispensary in the City.
J.
eper-a4er- of an), dispensafy proposed or- opemfing in the City and on eaeh per-son or- entity
providing "`1"`tJ or •••,b• f••, icng rvx-imy scicn-ccrspcnsury;
K. 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. If the Administrator finds the books and records of the
operator are deficient in any way or if the operator's accounting system is not auditable,
the operator must modify the dispensary's accounting system to meet the requirements of
the Administrator.
L. Every dispensary must keep and preserve, in an accounting format established by the
Administrator, records of all sales made by the dispensary and such other books or
accounts as may be required by the Administrator. Each dispensary operator must keep
and preserve for a period of at least three (3) years records containing at least the
following information:
1) True names and any aliases of any operator of the dispensary, as that term is
defined in Section 2 6.50.020N of this chapter;
2) True names and addresses and any aliases of persons that have, or have had
within the preceding year, a financial interest in the dispensary; and
3) The Administrator may require additional information as he or she deems
necessary.
M. Each dispensary must display its current permit inside the dispensary in a prominent
place easily visible to persons conducting business in the dispensary.
N. Sales or any other transfers of marijuana products on the dispensary premises must occur
inside the dispensary building and must be conducted only between the dispensary and
Medical Marijuana Qualifying Patients.
SECTION 6.50.065 Baeliground Cheeks
The Community Development Departmen4 will send to the n shlana Poliee >,"'_ai4fnent the
r
whethef any per-son named ther-ein has been eenvieted in a-fly state for- the manufaettife 0
the previous five years or +...i., in the pe n's lifetime en inf"V" the Community
Development Department whether- or- not all the per-sens named in the pefmii applieafieffi
will retain + f a 1 files ,a of t 1+ of +l. b 1 1, 1
SECTION 6.50.070 Examination of Books, Records and Premises
A. To determine compliance with the requirements of this chapter; 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, including wastewater from the
dispensary, and any and all dispensary financial, operational and facility information,
including books, papers, payroll reports and state and federal income tax returns. Every
ORDINANCE No. Page 5 of 7
permittee is directed and required to furnish to the Administrator the means, facilities and
opportunity for making such examinations and investigations.
B. As part of investigation of a crime which law enforcement officials reasonably suspect
has taken place on the premises, Ashland Police shall be allowed to view surveillance
videotapes at any reasonable time.
SECTION 6.50.080 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 chapter or rules adopted under this chapter, 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 chapter may be prosecuted as a Class I violation, punishable as
provided in AMC 1.08.020 - 1.08.030.
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
chapter prohibit or restrict the City or other appropriate prosecutor from pursuing
criminal charges under state law or City ordinance.
SECTION 6.50.090 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 chapter. 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 chapter; or
D. The disclosure of information when such disclosure of conditionally exempt information
is ordered under public records law procedures.
SECTION 2. Severability.
ORDINANCE No. Page 6 of 7
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 1-3) 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 harter on the IA day of July, 2014, and duly PASSED and ADOPTED this
day o , 2014.
Barbara M. Christensen, City Recorder
SIGNED and APPROVED this day of , 2014.
`!o Stromberg, Mayor
Revie ed as to form:
David Lohm , City Attorney
ORDINANCE No. Page 7 of 7