FOR COUNCIL MEETING OF:

AGENDA ITEM NO.:

TO: ';-- MAYORIANI;) CITY, COUNCIL
\"-")( N <1\.NV\.._(
THROUGH: NORRIS, CITY MANAGER
FROM:
April 14, 2014
4 (c)
SUBJECT: TEMPORARY MORATORIUM ON UNREGISTERED MEDICAL
MARIJUANA DISPENSARIES
ISSUE:
Shall Council conduct first reading of Ordinance Bill No. 4-14, creating a moratorium on
medical marijuana dispensaries within the City of Salem, at tonight's meeting and
advance the ordinance bill to second reading on the April 28, 2014 meeting agenda for
enactment?
RECOMMENDATION:
Conduct first reading of Ordinance Bill No. 4-14, creating a moratorium on medical
marijuana dispensaries within the City of Salem, at tonight's meeting and advance the
ordinance bill to second reading on the April 28, 2014 meeting agenda for enactment.
BACKGROUND:
In 2013, the Oregon Legislature enacted House Bill 3460 (2013), which requires the
Oregon Health Authority to implement a process to register medical marijuana
dispensaries. Dispensaries provide medical marijuana to individuals who have obtained
a medical marijuana card from a licensed physician. House Bill3460 (2013) provides
that persons who operate or are employed by a state registered medical marijuana
facility are immune from state prosecution so long as they operate within the regulatory
system implemented by the state.
In 2014, the Legislature enacted Senate Bill1531 (2014) which provides express
authority for local governments to adopt a temporary (up to one year) moratorium on the
operation of medical marijuana dispensaries within the local governments jurisdiction.
Senate Bill 1531 provides that if a local government desires to adopt a moratorium the
local government must; (1) approve the moratorium, and; (2) provide notice of the
moratorium to the Oregon Health Authority by May 1, 2014.
Council held two work sessions on medical marijuana dispensaries on February 10,
2014, and March 24, 2014. At the March 24, 2014 work session Council directed staff
to draft a moratorium ordinance, and provide it to Council for its consideration at its April
14, 2014 meeting. Council indicated that the ordinance should exempt medical
Ordinance Bill4-14 Page 1 of 3 April14, 2014
Medical Marijuana Moratorium
marijuana dispensaries that have applied for, and received, registration from the state
by May 1, 2014. Council indicated that the ordinance shall be a temporary moratorium
on dispensaries until the City has adopted reasonable regulations for dispensaries,
The moratorium ordinance, Ordinance bill no. 4-14, is set for public hearing before the
Council on April14, 2014.
FACTS AND FINDINGS:
Moratorium
Ordinance bill no. 4-14 puts in place a one year moratorium on medical marijuana
dispensaries within the City of Salem from May 1, 2014 to May 1, 2014, but may be
rescinded at any time by the Council, with the express intent that it be rescinded upon
the Council's adoption of a regulatory system for dispensaries.
Exemption
The ordinance exempts from the effects of the moratorium any dispensary that has
received approval of its application for registration through the state by May 1, 2014.
One of the purposes of the ordinance is to prevent new dispensaries from opening until
the city has adopted a regulatory system. At the time of this writing at least three
dispensaries within Salem have obtained registration through the state.
The city's regulatory system may impose additional restrictions on dispensaries in terms
of spacing requirements, location and operating standards. Existing dispensaries may
be required to relocate or modify their operations in order to comply with the City's
regulations. It is in the best interests of potential dispensary operators and the City to
limit the opening of new dispensaries in the City until City's regulations are adopted in
order to reduce the possibility that dispensaries will be required to relocate or
substantially change their operations, and to reduce the amount of city resources
devoted to working with the non-compliant dispensaries.
Penalties
The ordinance provides that violation of the moratorium is a misdemeanor, enforceable
by the Chief of Police, and provides that the court, upon a conviction, may impose
remedies including an injunction on the defendant from operating a dispensary or from
possessing, distributing or manufacturing marijuana.
Other Laws
The moratorium does not exempt medical marijuana dispensaries from compliance with
other state or local laws, so dispensaries will continue to be required to comply with city
zoning and development standards, as well as state laws.
Emergency Clause
To comply with Senate Bill1531 (2014), the moratorium must be approved by May 1,
2014. The ordinance includes an emergency clause providing that the ordinance shall
be in effect upon enactment.
Ordinance Bill 4-14 Page 2 of 3 April14, 2014
Medical Marijuana Moratorium
City Regulation of Dispensaries
The ordinance expressly states that the moratorium is being enacted to provide time to
prepare reasonable city-based regulations of medical marijuana facilities, and that the
moratorium may be rescinded upon adoption of those regulations.
Since the March 24, 2014 work session city staff have been drafting a regulatory system
and have met with representatives of the medical marijuana industry. Staff is
developing a community communication plan to discuss a regulatory system with
stakeholders and members of the community in order to provide a comprehensive
regulatory system to Council for its consideration this summer. A Councilor motion is on
tonight's agenda that proposes to form a Council Subcommittee. The purpose of the
subcommittee, proposed to be made up of four councilors, industry representatives, and
other members of the community, will be to review potential regulations and provide a
recommendation to Council for a potential regulatory system for dispensaries.
Ordinance Bill 4-14 Page 3 of 3 April14. 2014
Medical Marijuana Moratorium
1 ORDINANCE BILL NO. 4-14
Apri114, 2014
4 (c)
2 AN ORDINANCE DECLARlNG A MORATORIUM ON MEDICAL MARIWANA
3 FACILITIES WITHIN THE CITY OF SALEM; AND DECLARlNG AN EMERGENCY
4 The City of Salem ordains as follows:
5 Section 1. Findings.
6 (a) The Oregon Legislature enacted House Bill3460 (2013), which requires the Oregon
7 Health Authority to develop and implement a process to register and regulate medical
8 marijuana facilities;
9 (b) House Bill 3460 (20 13) directed that persons who operate or are employed by a
10 registered medical marijuana facility would enjoy immunity from state prosecution;
11 (c) Whether, and under what conditions, a certain type of business should operate within the
12 City of Salem is a decision of the City Council, and subject to the general and police
13 powers of the City;
14 (d) The Oregon Legislature enacted Senate Bill 1531 (20 14), which removes immunity from
15 state prosecution for a person who is responsible for, or employed by, a registered
16 medical marijuana facility located in an area subject to the jurisdiction of a city or county
17 that enacts a moratorium prohibiting the operation of a medical marijuana facility;
18 (e) Senate Bill1531 (2014) purports to prohibit local jurisdictions from enacting a
19 moratorium or a ban on medical marijuana facilities after May 1, 2014;
20 (f) The Oregon Health Authority regulations for the registration of medical marijuana
21 facilities do not address a number of issues related to such facilities that affect the
22 livability and public health and safety of communities;
23 (g) A city-based registration system is necessary to address issues with medical marijuana
24 facilities not addressed by the Authority's regulations, and to allow for the adequate
25 regulation of medical marijuana facilities;
26 (h) The City Council desires to enact a temporary moratorium on medical marijuana
27 facilities, to provide time for City staff to prepare areasonable city-based registration
28 system of medical marijuana facilities;
29 (i) The City Council believes it is in the best interests of the health, safety and welfare of the
30 citizens of Salem to enact a temporary moratorium prohibiting the operation of medical
ORDINANCE4-14-Page 1 COUNCIL OF THE CITY OF SALEM, OREGON
1 marijuana facilities within the City of Salem until the City Council adopts a city-based
2 registration system.
3 Section 2. Moratorium Declared. The City of Salem hereby prohibits the operation of any
4 medical marijuana facility within the City of Salem that is not registered with the Oregon Health
5 Authority by the effective date of this ordinance.
6 (a) It shall be a violation of this ordinance to be a person responsible for a medical marijuana
7 facility unless that facility has been registered with the Oregon Health Authority. As
8 used in this ordinance, "medical marijuana facility" includes any facility that dispenses
9 marijuana, and "person responsible for" means an individual who owns, operates, or
10 otherwise has legal responsibility for a medical marijuana facility.
11 (b) The Chief of Police is charged with enforcement of the moratorium.
12 (c) Every day any violation of this ordinance continues shall constitute a separate offense.
13 (d) It is within the discretion of the City of Salem to seek cumulative remedies for a violation
14 of the moratorium imposed by this ordinance.
15 (e) Upon a conviction for a violation of this ordinance, the conrt may impose sanctions as
16 provided by the Revised Code. In addition, the conrt may:
17 (1) Enjoin the defendant from the operation of a medical marijuana facility,
18 (2) Prohibit the defendant from possessing, distributing, or manufacturing
19 marijuana as that term is defined at ORS 475.005.
20 (3) Order that any marijuana seized by peace officers as a result of investigating
21 this offense be destroyed once the marijuana seized is no longer needed as
22 evidence in any other prosecution.
23 Section 3. Violation. The violation of any provision of this ordinance shall be a misdemeanor.
24 (a) Affirmative Defense. It is an affirmative defense to a charge of violating the
25 moratorium provisions of this ordinance that the person has received a registration
26 certificate for the medical marijuana facility from the Oregon Health Authority on or
2 7 before the effective date of this ordinance.
28 Section 4. No Vested Rights. Nothing in this ordinance, or any action, failure to act, statement,
29 or representation by any City of Salem officer, employee or agent shall create, confer or convey
30 any vested right or benefit regarding any medical marijuana facility subject to this ordinance.
ORDINANCE 4-14- Page 2 COUNCIL OF THE CITY OF SALEM, OREGON
1 Section 5. Severability. Each section of this ordinance and any part thereof, is severable, and if
2 any part of this ordinance is held invalid by a court of competent jurisdiction, the remainder of
3 this ordinance shall remain in full force and effect.
4 Section 6. Duration. The moratorium imposed by this ordinance shall be effective until May 1,
5 2015, unless rescinded sooner.
6 Section 7. Emergency Clause. This act being necessary for the immediate preservation of the
7 public peace, health and safety, an emergency is declared to exist, and this ordinance shall be in
8 full force and effect from and after the date of its passage.
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PASS ED by the City Council this ____ day of ________ ,, 2014.
ATTEST:
Ci<y Rewnke {7 ~
Approved by City Attomey:G.0"-o--' .J/'is.,.?'-' _/ __ _
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ORDINANCE 4-14- Page 3
COUNCIL OF THE CITY OF SALEM, OREGON