Title
Approval of Ordinance Extending the Moratorium on Medical Marijuana Collective Gardens and Other Cannabis-Related Uses not Licensed by Washington State for an Additional 6 Months
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the ordinance extending the moratorium on medical marijuana collective gardens and other cannabis-related uses not licensed by Washington State for an additional 6 months on second reading.
Report
Issue:
Should the City Council extend the City’s existing moratorium on new Medical Marijuana Collective Gardens and other cannabis-related land uses not licensed by Washington State for an additional 6 months, to a total of 729 days?
Staff Contact:
Chris Grabowski, Code Enforcement Officer, 360.753.8168
Darren Nienaber, Deputy City Attorney, 360.753.8044
Presenter(s):
Chris Grabowski, Code Enforcement Officer, 360.753.8168
Darren Nienaber, Deputy City Attorney, 360.753.8044
Background and Analysis:
The ordinance was changed between first and second reading to eliminate a recital that referred to a statute repealed by 2SSB 5052, Section 48(6).
City staff requests that the Council extend the City’s moratorium on marijuana establishments that are not State-licensed. The Washington State legislature voted to further regulate medical marijuana and collective gardens in its last legislative session but the rules are in the process of being written by the Liquor and Cannabis Board and Department of Health. It is anticipated that this process will be completed and a clear set of rules and guidelines will be in place by the end of December 2015.
In November of 2012, Washington State voters passed Initiative Measure No. 502 (I-502) legalizing the sale of recreational cannabis in the State of Washington. Subsequently, on May 7, 2013, the Olympia City Council established a moratorium on all new cannabis related land uses. The moratorium was for one year. On October 15, 2013, Council approved interim zoning regulations for I-502 recreational marijuana and lifted that portion of the moratorium which applied to those uses. The moratorium on new medical marijuana collective gardens and other cannabis land uses not addressed by I-502 remained in place. At its April 7, 2015 meeting, the City Council extended the moratorium for an additional six months after holding the requisite public hearing.
The 2015 Washington State Legislature passed comprehensive legislation (2SSB 5052 & HB 2136) addressing medical cannabis collectives and establishing a State regulated system overseen by the Washington State Department of Health. The legislation was signed into law by Governor Jay Inslee on April 24, 2015. The long-standing "collectives” will now no longer be allowed. Instead, much smaller and more tightly regulated “cooperatives” will be allowed, and cannot easily rotate their four-person membership. The four-person cooperative can grow up to fifteen (15) plants per member. Cooperatives cannot sell or donate their product to other medical users, even those registered with the state, and members have to work the plants rather than pay into the cooperative. This step alone effectively ends the proliferation of medical collective storefronts. The State’s new regulations mandate that all existing collective storefronts cease operation by July 1, 2016. Some of those storefronts may be able to become State licensed medical cannabis outlets when the new rules are established. King County has already sent letters telling collective storefronts that they must shut down immediately.
The State has only allotted the City of Olympia two recreational cannabis outlets. It is unclear if the two existing retail shops (Green Lady Inc. and A Bud & Leaf) will receive endorsements from the State to sell medical cannabis, or if the State will approve the licensing of medical only shops, or both. It is likely that the number of State licensed retailers will increase in the City to meet demand currently met by the collective storefronts. To serve the many medical users who will need or want access to marijuana at a store, the state will license potentially hundreds more retailers than the 334 it originally set out to validate. So far, the state has licensed roughly 171 retailers.
In its August 29, 2013 memorandum to all United States Attorneys, the Department of Justice outlined its expectation that those jurisdictions which allow the use of recreational cannabis do so with the “expectation that states and local governments…will implement strong and effective regulatory and enforcement systems that will address the threat those state laws could pose to public safety, public health, and other law enforcement interests.” The State’s move to regulate medical marijuana was partly in response to the Department of Justice memorandum.
The Washington State Court of Appeals upheld the City of Kent’s ban on medical marijuana collective gardens. Thus, cities are authorized to prohibit collective gardens outright. It is uncertain how this decision will apply to the newly-authorized medical marijuana cooperatives, though it appears cities will likely be authorized to prohibit them under the new law.
Neighborhood/Community Interests (if known):
There are a number of shops currently serving the medical marijuana community that hold themselves out as existing collective gardens and came into existence prior to the City’s moratorium. Some of these shops may be able to transition to being State licensed medical cannabis providers. This will become clear when the State establishes its rules by the end of this year. Those shops which are unable to make the transition will be required by the State to shut down by July 1, 2016.
Options:
1. Approve the ordinance on second reading.
2. Do not approve the ordinance on second reading, and let the moratorium expire in early November, 2015.
Financial Impact:
None