Regulation of Medical Marijuana...

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GRESHAM CITY COUNCIL AGENDA ITEM TYPE: DECISION

Regulation of Medical Marijuana Businesses

Meeting Date: May 5, 2015 Agenda Item Number: E-2 Service Area: Community Development Service Area Manager: Eric Schmidt City Attorney's Office David R. Ris REQUESTED COUNCIL ACTION

Move to declare an emergency and approve the enactment of Council Bill No. 09-15 Regulating Medical Marijuana Businesses operating within the City of Gresham.

PUBLIC PURPOSE AND COMMUNITY OUTCOME

The Oregon Medical Marijuana Act (OMMA) and Ballot Measure 91 (Recreational Marijuana) impact the City of Gresham in areas such as the development code, business licensing, law enforcement, and taxation. In response to this, and pursuant to previous Council policy direction, staff prepared a council bill to regulate medical marijuana businesses to protect the public health, safety and welfare.

BACKGROUND

Review of Existing Law. The following summarizes existing law relating to the regulation of medical marijuana businesses. Medical marijuana facilities (also known as dispensaries) are allowed by Oregon law subject to the following state regulations: • Must be operated by a responsible person who is subject to background checks; employees

are not subject to background checks. • Can only operate in commercial, industrial, and mixed-use land use districts • Cannot be located in residential land use districts. • Cannot be within 1,000 feet of a school; the following link is to the Oregon Health Authority's

map of schools: http://navigator.state.or.us/apps/schools_locator/index.html. • Cannot be within 1,000 feet of another dispensary. • Must have a security system including video surveillance, alarm, and safe. • Must test for pesticides, mold and mildew; testers are unregulated. • No mobile medical marijuana dispensaries. Medical marijuana grow operations are allowed by Oregon law subject to the following state regulations: • No substantive state regulations except the quantity of medical marijuana grown. • Each grower can grow for four patients for a total of 24 mature plants, 72 immature plants, and

6 pounds (96 ounces) of medical marijuana. • “Card stacking” results in multiple growers at one location; the Oregonian newspaper has

reported that 282 grow sites in Oregon were growing for 11 or more patients in 2014.

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Other Oregon laws prohibit the smoking of medical and recreational marijuana in a public place and prohibit the growing of medical and homegrown recreational marijuana where visible from a public place. Ballot Measure 91 prohibits homemade marijuana extracts.

The 2015 Oregon Legislature could impact marijuana issues as several bills related to marijuana are being considered. However, there is no certainty regarding which bills may be enacted into law. Therefore, Council Bill No. 09-15 does not reflect potential legislative changes.

Medical marijuana businesses would be subject to existing City regulations applicable to all businesses. For example: • Medical marijuana businesses must comply with all applicable land use development

standards, building codes and fire codes. • A grow site is subject to existing prohibitions related to discharging certain pollutants into the

public wastewater or stormwater systems. • Agricultural uses are not a permitted use in Gresham. However, the City would allow, as

“manufacturing,” if the growing of an agricultural product if the use included the processing of the product.

• A non-personal medical marijuana grow operation is not a permitted use in a commercial or mixed-use land use district because growing marijuana is not “retail trade” which would otherwise be allowed.

• Oregon law and City codes do not allow a medical marijuana facility to be located in a residential land use district.

Past Council Meetings and Policy Direction Council has met to discuss marijuana issues on several occasions as summarized below. The Marijuana Issues webpage (http://GreshamOregon.gov/MarijuanaPolicy/) includes links to the agenda items and minutes of these meetings and to other relevant documents. • August 17, 2010 – Council amended the Gresham Revised Code to prohibit the issuance of a

business license to a business that violates federal law. Medical marijuana businesses are therefore prohibited from operating in Gresham.

• April 15, 2014 – As provided by Oregon law, a moratorium on medical marijuana dispensaries was adopted by Gresham. The moratorium expires on May 1, 2015.

• September 9, 2014 – Council was briefed on Oregon’s medical marijuana laws, Ballot Measure 91 (recreational marijuana), preemption issues, and potential marijuana issues that the City could address including taxation. Staff provided an overview of neighborhood livability concerns regarding grow operations in residential land use districts. Council directed staff to prepare an ordinance regarding marijuana taxation and to investigate options for addressing grow sites in residential land use districts.

• October 21, 2014 – Council adopted GRC Article 9.62 related to the taxation of the sale or transfer of medical and recreational marijuana.

• December 2, 2014 – Council adopted Resolution No. 3183 related to the taxation of the sale or transfer of marijuana setting tax rates of 5 percent for medical and 10 percent for recreational.

• January 13, 2015 – Council was briefed on options to address potential marijuana issues. Council provided the following policy directions: o The City will not regulate personal medical marijuana grows (six plants per patient grown

where the patient lives) or recreational home grown marijuana (four plants per household) in residential land use districts.

o The City will not allow medical marijuana grow operations in residential and commercial zones pursuant to existing land use and business license codes.

o The City will carry out a public involvement process to obtain public input regarding medical marijuana dispensaries in Gresham and grow operations in Gresham’s industrial land use districts.

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o The City will wait for Oregon Liquor Control Commission to draft rules for recreational marijuana before addressing policy issues related to licensed recreational marijuana businesses.

• April 7, 2015 – Council discussed the regulation of medical marijuana businesses and gave the following policy direction: o Medical marijuana businesses will be allowed in Gresham. o The City will require medical marijuana businesses to register with the City and comply with

local regulations. o The City will establish a robust inspection program to ensure medical marijuana businesses

comply with local regulations. o The City will adopt local regulations that:

- requires compliance with laws - establishes where a medical marijuana business can be located - sets the distance a medical marijuana business must be from certain types of uses - establishes standards of operations to ensure the medical marijuana business is

operated in a responsible manner

Local Regulations. Council Bill No. 09-15 regulates medical marijuana businesses consistent with staff's understanding of Council policy direction. Appendix 1 summarizes the provisions of Council Bill No. 09-15. Maps of the areas are available to medical marijuana businesses are attached. Because not all potential regulations were discussed by Council, the following table summarizes several provisions of the draft council bill, and provides options that could be considered by Council,

Draft Code Provision Alternative 9.63.090 Location of Medical Marijuana Businesses.

(1) Restrictions on Location. A medical marijuana business shall not be registered, or the registration shall not be renewed, if at the time of registration or renewal, the business is:

(a) a medical marijuana facility that is located within any land use districts other than Community Commercial (CC), Employment Center – Pleasant Valley (EC-PV), Moderate Commercial (MC), General Industrial (GI), Heavy Industrial (HI), Industrial – Springwater (IND-SW), Neighborhood Commercial (NC), Neighborhood Commercial – Pleasant Valley (NC-PV), Neighborhood Commercial – Springwater (NC-SW), Research/ Technology Industrial – Springwater (RTI-SW);

(b) a non-personal medical marijuana grow operation that is located within any land use districts established by the Gresham Community Development Code other than General Industrial (GI), Heavy Industrial (HI), or Industrial – Springwater (IND-SW); or

(c) within 1,000 feet of a school, child care facility park, religious institution.

* * * (ii) Schools. For purposes of this section, a school includes any public or private university, college, community college, career school (professional, technical, business or other instruction), high school, middle school, elementary school, kindergarten, pre-school, charter school, and any other institution of learning primarily attended by minors.

Add or delete land use districts where a medical marijuana facility (dispensary) could be located. Add or delete land use districts where a non-personal medical marijuana grow operation could be located.

A distance of greater or lesser than 1,000 feet could be used. Add or delete buffered uses. A non-comprehensive list of examples of other uses include libraries, gymnastic studios, and martial arts studios.

Add or delete types of schools that are buffered. The draft code is broader than the state definition of schools.

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Draft Code Provision Alternative

9.63.080 Standards of Operation.

A medical marijuana business must meet the following Standards of Operation.

* * * (5) Hours of Operation. Operating hours for medical marijuana facilities must be no earlier than 10:00 a.m. and no later than 7:00 p.m. on Monday through Saturday, and closed on Sunday.

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Different hours or days of operation could be used.

Other potential regulations. Council Bill No. 09-15 does not include regulations that would be difficult for the City to enforce or would be better addressed on a statewide basis:

• Product issues including prohibiting candy and imposing packaging or labeling requirements

• Establishing standards for testing services which are currently unregulated by the State of Oregon

• Prohibiting “card stacking” by medical marijuana grow operations by limiting the number of growers at one location

RECOMMENDATION AND ALTERNATIVES

Recommendation • Approve the enactment of Council Bill No. 09-15.

Alternatives • Approve the first reading of Council Bill No. 09-15 and schedule enactment for a future

Council meeting. • Do not approve or take no action on Council Bill No. 09-15. If Council Bill No. 09-15 is not

approved, medical marijuana businesses will be prohibited in Gresham by GRC Article 9.05 (Business License Code).

• Direct staff to revise Council Bill No. 09-15 BUDGET / FINANCIAL IMPACT

The budget / financial impacts of Council Bill No. 09-15 are addressed in the companion agenda item E-3 related to Fees and Charges for Medical Marijuana Businesses.

PUBLIC INVOLVEMENT

The following summarizes public input regarding marijuana issues. Measure 91. Voters approved Ballot Measure 91 for recreational marijuana on November 4, 2014.

• Statewide: 56.1% support. 70.9% turnout with 1,541,782 total ballots cast • Multnomah: 71.4% support. 68.6% turnout with 302,584 total ballots cast • City of Gresham: 51.6% support. 61.2% turnout with 35,556 total ballots cast

Web Questionnaire. City staff developed a web questionnaire which was available to interested persons from February 19 to March 11, 2015. This questionnaire was not intended to be a statically valid poll but a means to gather public opinion. The following is a summary of the 517 responses, of which 85% reported being Gresham residents.

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• 54% favored allowing medical marijuana dispensaries in Gresham • Of those that favored allowing medical marijuana dispensaries, 82% favored no local

regulations; those opposed to dispensaries were not asked to respond to this question • 59% favored allowing medical marijuana grow operations in Gresham’s industrial areas • 80% stated their beliefs about medical marijuana extended to recreational marijuana

Medical Marijuana Public Forum. Gresham held a Medical Marijuana Public Forum on March 17, 2015. Approximately 20 members of the public attended the meeting and were generally supportive of medical marijuana dispensaries in Gresham and medical marijuana grow operations in Gresham’s industrial land use districts.

NEXT STEPS

If adopted, Council Bill No. 09-15 will be effective May 5, 2015. ATTACHMENTS 1. Appendix 1, Summary of Council Bill No. 09-15 2. Medical Marijuana Facilities (Dispensaries) Map 3. Non-Personal Medical Marijuana Grow Operations Map 4. Council Bill No. 09-15 FROM:

Eric Schmidt, Community Development Director David Ris, City Attorney

REVIEWED THROUGH:

Office of Governance and Management Gresham Police Department Finance and Management Services Gresham Fire and Emergency Services Department of Environmental Services

FOR MORE INFORMATION

Staff Contact: Eric Schmidt / David Ris Telephone: 503-618-2877 / 503-618-2429 Staff E-Mail: [email protected] / [email protected] Website: www.greshamoregon.gov

Attachment 1

Attachment 1

Appendix 1

Summary of Council Bill No. 09-15 Regulating Medical Marijuana Businesses Operating within the City of Gresham

Amend GRC 9.62.020 to add new definitions that will also apply to GRC 9.63 New GRC Article 9.63 Medical Marijuana Businesses

• Establishes purpose of article • Requires medical marijuana business to register with city • Establishes registration application requirements • Establishes issuance of registration, term, renewal, surrender, and transferability of registration • Establishes robust inspection process • Establishes standards of operation

o Must comply with all applicable laws and regulations o Insurance requirements o Home occupation prohibited o Hours of operation o Ventilation system to control odors o Lighting o Authorized entry into business o Sales within facility; drive-through or walk-up window prohibited o On-site use prohibited o On-site manufacturing prohibited in facilities o Outdoor storage prohibited o Disposal of marijuana waste

• Location restrictions, including land use districts and buffered uses The following links will open maps showing what areas are available:

Medical marijuana facilities1 Non-personal medical marijuana grow operations2

• Requires medical marijuana businesses to waive claims and indemnify the city • Examination of books, records, and premises • Establishes protest procedures • Establishes violations and maximum fine or penalty

Amend GRC Article 7.25 to address marijuana waste Amend GRC Article 7.50 to update general city code for inspection Amend GRC Article 9.05 to update definition of revenue and exclude medical marijuana businesses from business license requirement Amend GRC Article 9.99 to update general city code for denial, suspension, or revocation 1 http://www.greshamoregon.gov/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=288679&libID=288699 2 http://www.greshamoregon.gov/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=288680&libID=288700

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What is Left for Dispensaries

N 0 10.5

Mile

City of Gresham Areas Available for Medical Marijuana

Facilities (Dispensaries)April 27, 2015

DISCLAIMER AND NOTICE: The information on this map has been gathered from a variety of sources. Every attempt has been made to offer the most current,correct, and complete information available. However, errors may

occur or there may be a time delay between changes in information and updates. The information contained herein is subject to change

at any time and without notice.

Attachment 2

Attachment 2

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NW BURNSIDE RD

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What is Left for Dispensaries

N 0 10.5

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City of Gresham Areas Available for Non-Personal

Medical Marijuana Grow OperationsApril 27, 2015

DISCLAIMER AND NOTICE: The information on this map has been gathered from a variety of sources. Every attempt has been made to offer the most current,correct, and complete information available. However, errors may

occur or there may be a time delay between changes in information and updates. The information contained herein is subject to change

at any time and without notice.

ATTACHMENT 3

Attachment 3

1 – ORDINANCE NO. Y:\CAO\Council Bills\CB09-15—4/28/15 \ PT

Commentary is for information only. CB 09-15

ORDINANCE NO.

AN ORDINANCE REGULATING MEDICAL MARIJUANA BUSINESSES OPERATING

WITHIN THE CITY OF GRESHAM, AMENDING GRESHAM REVISED CODE ARTICLES 7.25, 7.50, 9.05, 9.62, AND 9.99 AND DECLARING AN EMERGENCY

The City of Gresham Finds: 1. State law authorizes the operation of medical marijuana businesses and provides those businesses with immunity from state criminal prosecution. 2. Although the State of Oregon has passed legislation authorizing medical marijuana businesses and providing criminal immunity under state law, the operation of those businesses remains illegal under federal law. 3. The City Council has home rule authority to decide whether, and under what conditions, certain commercial conduct should be regulated within the city and subject to the general and police powers of the City, except when local action has been clearly and unambiguously preempted by state statute. 4. Whether a certain business should operate within a local jurisdiction is a local government decision, and local governments may enforce that decision through the general and police powers of that jurisdiction. 5. The City's registration and regulatory system should not be construed to constitute an authorization to engage in any activity prohibited by law nor a waiver of any license, permit or regulatory requirement imposed by any other provisions of the Gresham Revised Code, the Gresham Community Development Code, or local, county, regional, state or federal law or regulation. 6. The City Council wants to regulate the operation of medical marijuana businesses in the City in ways that protect and benefit the public health, safety and welfare of existing and future residents and businesses in the City. THE CITY OF GRESHAM DOES ORDAIN AS FOLLOWS: Section 1. GRC Article 9.62 is amended as follows: Proposed new language is double-underlined; Proposed deleted language is stricken.

Propose Code Amendment Commentary

ARTICLE 9.62 TAX ON THE SALE OF MARIJUANA AND MARIJUANA-

INFUSED PRODUCTS


Propose Code Amendment Commentary * * * * *

9.62.020 Definitions. In addition to the definitions set forth in GRC 1.05.010, unless the context requires otherwise, the following words and phrases as used in this article and GRC Article 9.63 shall have the following meanings set forth in the Oregon Medical Marijuana Act, unless defined otherwise below:

* * * Marijuana. All parts of the plant of the Cannabis family 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,; and any marijuana-infused products, extract, oils, residue or similar derivatives; or as may be defined by Oregon Revised Statutes 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 preparation 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. Medical Marijuana. Refers to marijuana in any form for use by a person with a registry identification card to mitigate symptoms or effects of a person's debilitating medical condition as defined in ORS 465.302. Marijuana Waste. As defined in GRC 7.25.020. Medical Marijuana Business. A Medical Marijuana Facility or a Non-Personal Medical Marijuana Grow Operation. Medical Marijuana Facility. A facility that is registered with the Oregon Health Authority and that sells, distributes, transmits, transfers, gives, dispenses or otherwise provides medical marijuana to a person with a registry identification card or the cardholder's designated caregiver. A facility includes all premises, buildings, curtilage or other structures used to accomplish the storage, distribution, and dissemination of marijuana. Non-Personal Medical Marijuana Grow Operation. Any marijuana grow site registered with the Oregon Health Authority, but excluding a Personal Medical Marijuana Grow Site. Operator. The natural person having the primary responsibility for the day-to-day operation or management of the medical marijuana business.

The two types of medical marijuana businesses regulated by this Code. A medical marijuana facility is also known as a dispensary.


Propose Code Amendment Commentary Person. As defined in GRC 1.05.010 and includes both a natural person and a legal entity. Personal Medical Marijuana Grow Site. A marijuana grow site registered with the Oregon Health Authority at the location where the holder of a registry identification card lives. Notwithstanding the number of grow sites registered by the Oregon Health Authority, or the number of persons with a registry identification card at one location, a personal medical marijuana grow site shall lose that designation if more than six mature plants are growing at such location. Principal. A natural person who is a member, partner, or corporate officer, and all stockholders holding more than 10 percent of the voting stock, of any person that is not a natural person. Includes the principals of any entity that has an ownership interest in any entity described in GRC 9.63.040(1)(c)(i) – (iv). Registry Identification Card. A document issued by the Oregon Health Authority that identifies a person with a debilitating medical condition who is authorized by Oregon law to engage in the medical use of marijuana (also known as a patient), but does not include a caregiver identification card, a medical marijuana grow site registration card, or a grower identification card.

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This definition limits the total number of mature plants to six if more than one patient lives at the same location.

Homegrown marijuana authorized by Ballot Measure 91 (Recreational Marijuana) is not counted when determining the number of plants at a location.

* * * * * Section 2. GRC Article 9.63 Medical Marijuana Facilities is adopted as follows:


ARTICLE 9.63 MEDICAL MARIJUANA BUSINESSES

9.63.010 Purpose. (1) The purpose of this article is to impose certain requirements on the registration, operation, and siting of medical marijuana businesses within the city. (2) The city, in exercise of its constitutional home rule authority and pursuant to Section 5 of the Gresham City Charter, may elect to regulate or prohibit the production, growing, processing, keeping, storage, wholesale, sale or transfer of marijuana to the maximum extent allowed by law.

Gresham's home rule authority allows the City to adopt stricter civil regulations than provided by state law.


Propose Code Amendment Commentary (3) No part of this article is intended to or shall be deemed to conflict with federal law including, but not limited to, the Controlled Substances Act, 21 USC § 800, et seq. (Act), nor to otherwise authorize or permit any activity that is prohibited under the Act, or any other applicable local, county, regional, state or federal law or regulation. (4) The registration required by this article facilitates the city's oversight of a medical marijuana business. Nothing in this article is intended by the city to affirmatively authorize, license, permit or grant a privilege to sell or transfer medical marijuana. The registration required by this article shall not be construed to constitute an authorization to engage in any activity prohibited by law, nor a waiver of any other license, permit or regulatory requirement imposed by any other provision of the Gresham Revised Code, the Gresham Community Development Code, or applicable local, county, regional, state or federal law or regulation.

Recognizes the conflict with federal law.

9.63.020 Definitions. In addition to the definitions set forth in GRC 1.05.010, unless the context requires otherwise, the words and phrases as used in this article shall have the meanings set forth in GRC 9.62.020.

9.63.030 Registration Required. (1) Local Registration Required. No person shall operate a medical marijuana business in the City of Gresham without registering with the city. A medical marijuana business is not registered with the city until the city issues a Certificate of Registration. (2) State Registration Required. To be eligible to apply for registration under this article, a medical marijuana business must be registered with, and authorized to operate by, the Oregon Health Authority.

Requires medical marijuana businesses to register with the City.

9.63.040 Registration Application. (1) Registration. Registration applications must be submitted to the manager. A separate registration application must be submitted for each proposed medical marijuana business and for each proposed location, if more than one. The registration application must be on a form provided by the manager and shall include the following information:

Provides a detailed description of information that must be included in an application to register a medical marijuana business.


Propose Code Amendment Commentary (a) the name of the medical marijuana business; (b) the location of the medical marijuana business with documentation from the Oregon Health Authority that the business is registered at that location as:

(i) a medical marijuana facility with the Oregon Health Authority pursuant to ORS 475.314; or (ii) a medical marijuana grow site with the Oregon Health Authority pursuant to ORS 475.304.

(c) the name and address of:

(i) the applicant, including all principals; (ii) any person that has an ownership interest in the medical marijuana business, including all principals; (iii) any person that has loaned or given money, real property or personal property for use by the medical marijuana business (financial interest) within the preceding 12 months, including all principals; (iv) any person that owns the real property to be used by the medical marijuana business and any person who manages that property on behalf of the real property owner(s); (v) the natural person that has the responsibility for day-to-day operation or management of the medical marijuana business; and (vi) any natural person who is anticipated at the time of the application to be an employee or volunteer at the medical marijuana business.

(d) for each natural person, including all principals, described in GRC 9.63.040(1)(c), a copy of the front and back of a valid driver's license or identification card issued by the State of Oregon or the state in which the person resides, or the person's passport; (e) the postal, e-mail, and website addresses, and telephone number(s) of the medical marijuana business and any person described in GRC 9.63.040(1)(c)(i) – (ii), and (iv) – (v); (f) the name, telephone number, postal and e-mail addresses of the natural person to receive on behalf of the medical marijuana business, all correspondence about the registration;

Subsections (c), (d), (e), (f), and (g) require information about persons involved with the medical marijuana business.


Propose Code Amendment Commentary (g) a complete copy of both a nationwide criminal history report acceptable to the manager, and an Oregon State Police Open Records criminal history report, both issued in the last 30 days, for any natural person or principal described in GRC 9.63.040(1)(c)(i) – (iii) and (v) – (vi); (h) a detailed description of the type, nature and extent of the medical marijuana business including, but not limited to, a description of the products to be provided by the medical marijuana business, and the process by which such products will be manufactured; (i) a detailed description of the proposed accounting and inventory system of the medical marijuana business; (j) the proposed days and hours of operation of the medical marijuana facility; (k) a dimensioned floor plan of the entire space in which the medical marijuana business is to be located on no larger than an 11" x 17" sheet. The floor plan shall be of sufficient clarity to indicate the location, nature and extent of the existing and proposed improvements and shall include the following minimum information:

(i) labeling the principal uses of the floor area of a medical marijuana facility including, but not limited to, entrance areas, office areas, retail areas, display cases, private consulting areas, and areas where medical marijuana will be packaged, distributed, stored and/or disposed; (ii) labeling the principal uses of the floor area of the non-personal medical marijuana grow operation, including, but not limited to, entrance areas, office areas, growing processing and manufacturing areas, and areas where medical marijuana will be packaged, stored and/or disposed; (iii) for all medical marijuana businesses, the location and widths of all entrances and exits, exterior lighting and light fixture information, and the general layout of circulation paths, and aisle widths in compliance with the applicable building codes adopted pursuant to GRC Article 10.05 and ADA Guidelines; and

(l) a plan, prepared by a design professional licensed in the State of Oregon, for ventilation of the medical marijuana business that describes the ventilation systems that will be used to prevent any

Subsections (h), (i), (j), (k), and (l) require information about the operation of the medical marijuana business.


Propose Code Amendment Commentary odor of marijuana off the premises of the business. For non-personal medical marijuana grow operation, such plan shall also include all ventilation systems used to control the environment for the plants and describe how such systems operate with the systems preventing any odor from leaving the premises. (m) other information deemed necessary by the manager; (n) the signature, under penalty of perjury, of the applicant, if a natural person, or if the applicant is other than a natural person, the signature of a natural person who is an authorized agent of the applicant, that the information contained in the application is current and accurate.

(2) Applications must be hand-delivered to the city's Permit Services Center. At time of application submittal, or within three business days, applications will be reviewed for completeness and applicants will be notified of any missing information required to deem their application complete. Applications shall be processed in the order they are deemed complete by the manager. No application shall be received prior to the effective date of GRC Article 9.63. (3) Continuing obligation to update information. All information provided in a registration application or renewal application shall be kept current at all times. Each medical marijuana business shall notify the manager in writing within 10 business days of any change in the information. (4) Fee. An application submitted for completeness review, an initial registration application and a registration update must be accompanied by a non-refundable fee in the amount established by council resolution.

All information provided by a medical marijuana business shall be kept up to date.

9.63.050 Issuance of a Registration; Posting, Term, Renewal, Surrender, and Transferability.

(1) The manager shall issue a Certificate of Registration to a medical marijuana business that has met all applicable requirements of GRC Article 9.63 and has met all other city requirements including, but not limited to, any other required license, permit, final inspection, land use approval, and has received a certificate(s) of occupancy, as applicable. (2) Posting. A medical marijuana business shall post the Certificate of Registration in a conspicuous location near the entrance to the business.

Provisions relating to the issuance and renewal of a registration.


Propose Code Amendment Commentary (3) Term. A registration shall have a term of one year and shall expire unless renewed. (4) Renewal. A registration may be renewed by submitting to the manager not less than 30 days prior to the expiration date of the existing registration, a registration renewal application on a form provided by the manager together with the required registration renewal fee in the amount established by council resolution. The manager shall issue a new Certificate of Registration to a medical marijuana business that has met all applicable requirements of GRC 9.63 and has met all other city requirements including, but not limited to, any other required license, permit, final inspection(s), and land use approval. (5) Surrender. A medical marijuana business may surrender a registration by delivering written notice to the city that the business surrenders the registration. (6) Transferability. Registration issued under this article shall not be transferable to any other person, property or location. 9.63.060 Registration Denial, Suspension or Revocation. (1) A registration shall be denied if the medical marijuana business is not in compliance with the requirements of GRC Article 9.63 or any other city requirement. In addition to denial for failure to meet the requirements of this article, the manager may deny a registration in accordance with GRC 9.99.050. (2) In lieu of denial, the manager may condition the issuance of the Certificate of Registration on compliance of GRC Article 9.63 or any other city requirement. (3) Background Checks. A Certificate of Registration shall not be issued or renewed if, during the five years prior to the issuance or renewal of the certificate, a natural person or principal that is an owner, operator, employee, volunteer or has a financial interest in the medical marijuana business has been:

(a) convicted of a felony under the following Oregon laws or the substantially equivalent laws of another jurisdiction:

(i) ORS 475.752 to 475.920 relating to the manufacture or delivery of a controlled substance or Schedule I or Schedule II narcotics; (ii) ORS 162.015 relating to Bribery;

Provisions related to the denial, suspension, or revocation of a registration. The City will not issue a Certificate of Registration if persons involved with the medical marijuana business have been convicted of certain crimes.


Propose Code Amendment Commentary (iii) ORS 162.065 Perjury; (iv) ORS 162.225 to 162.375 relating to Obstructing Governmental Administration; (v) ORS Chapter 163 related to Offenses Against Persons; (vi) ORS 164.170 And 164.172 relating to Money Laundering; (vii) ORS 164.395, 164.405 or 164.415 relating to Robbery; (viii) ORS 165.013 Forgery in the First Degree; (ix) ORS 165.080 Falsifying Business Records; (x) ORS 165.100 Issuing a False Financial Statement; (xi) ORS 165.800 Identity Theft; (xii) ORS 165.803 Aggravate Identity Theft; (xiii) ORS 166.715 to 166.735, the Oregon Racketeer Influences and Corrupt Organization Act; or (xiv) Any other crime the manager determines, after considering the nature of the person’s involvement with the medical marijuana business, the nature of the crime, and the time elapsed since the crime, renders the natural person or principal ineligible to be an applicant, owner, operator, employee, or volunteer or a person with a financial interest in the business.

(b) entered into a gang member database maintained by a public safety agency as a documented gang member using the criteria of the Oregon Department of Justice Criminal Organization Member/Associate Submission Form.

(4) A registration may be suspended until all conditions and/or violations concerning the medical marijuana business have been corrected. No person shall operate a medical marijuana business while a registration is suspended. (5) A registration may be revoked if all conditions and/or violations concerning the medical marijuana business have not been corrected within 30 days of suspension, or if the medical marijuana business is not in compliance with the requirements of GRC Article 9.63 or any other city requirements.

This determination is subject to the protest process described in GRC 9.63.120.


Propose Code Amendment Commentary (6) A registration may be suspended or revoked if, during the term of the registration, a natural person or principal that is an owner, operator, employee, volunteer or has a financial interest in the medical marijuana business, is convicted of a felony described in GRC 9.63.040(3)(a) or entered into a gang member registration system as described in GRC 9.63.040(3)(b). (7) Change in Law. A registration may be revoked 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 medical marijuana business under this article. (8) Denial, suspension, or revocation shall be subject to the procedures provided by GRC 9.99.050.

9.63.070 Inspection of Medical Marijuana Businesses. (1) The manager shall inspect every medical marijuana business to ensure compliance with GRC Article 9.63. (2) The manager shall conduct an initial inspection within seven calendar days of a request for an inspection by an applicant who has submitted a completed registration application and payment of the applicable fees. (3) For a medical marijuana business registered with the city, inspections will occur no less than four times per year at approximately three month intervals. The manager may adopt a program that modifies the inspection frequency and inspection checklist for a medical marijuana business that has a demonstrated record of compliance. (4) The manager may inspect a medical marijuana business at any time following the receipt of a complaint that alleges a violation of GRC Article 9.63. The manager may inspect, at any time the manager believes, for any reason, that a medical marijuana business may be in violation of GRC Article 9.63. (5) The manager may inspect, without notice, a medical marijuana business during the hours of operation described in the registration application. (6) All persons described in GRC 9.63.040(1)(c) shall cooperate with the manager during an inspection. If the manager is denied entry for the purposes of inspection, an administrative inspection warrant may be obtained as provided in GRC 7.50.520.

Establishes a robust inspection system.


Propose Code Amendment Commentary (7) An inspection checklist will be used to evaluate whether the medical marijuana business is in compliance with GRC Article 9.63. Following each inspection, the manager will complete the inspection checklist identifying whether the medical marijuana business is in compliance and provide a copy of the checklist to the medical marijuana business, the operator, and the property owner. (8) The medical marijuana business and property owner will be given a written Notice of Violation should the premises fail to meet the requirements of GRC Article 9.63. In the event that re-inspection is required to confirm the medical marijuana business satisfies the standards set forth in GRC Article 9.63, the medical marijuana business may be charged a re-inspection fee in an amount established by council resolution. 9.63.080 Standards of Operation. A medical marijuana business shall meet the following Standards of Operation. (1) Registration and Compliance with Oregon Health Authority Rules. The registration as a medical marijuana facility under ORS 475.314 or as a medical marijuana grow site under ORS 475.304 must be in good standing with the Oregon Health Authority. A medical marijuana business shall comply with all applicable laws and regulations administered by the Oregon Health Authority. (2) Compliance with Other Laws. The medical marijuana business shall comply with all applicable local, city, county, regional, and state laws and regulations, including, but not limited to, the Gresham Community Development Code, GRC Article 4.45 (Pretreatment), GRC Article 9.62 (Tax on Sale or Transfer of Marijuana and Marijuana-Infused Products), GRC Article 10.05 (Building Codes), and GRC Article 10.25 (Fire and Life Safety Code) (3) Insurance. Each medical marijuana business shall secure and maintain coverage of a type and amount as required by the city attorney and furnish certification of insurance evidencing such coverage. The business may provide proof of self-insurance, satisfactory to the attorney, as an alternative means of meeting this requirement. (4) Home Occupation. Notwithstanding GCDC 10.0500, a medical marijuana business may not be operated as a home occupation.

Establishes standards of operation to ensure that medical marijuana businesses are operated in a responsible manner. Subsections (1) and (2) require compliance with certain laws. Subsections (3), (4), (5),(6) and (7), require meeting certain operational standards.


Propose Code Amendment Commentary (5) Hours of Operation. Operating hours for medical marijuana facilities shall be no earlier than 10:00 a.m. and no later than 7:00 p.m. on Monday through Saturday, and closed on Sunday. (6) Odors. Medical marijuana businesses are required to have an approved ventilation system designed and installed to prevent any odor of marijuana off the premises of the business. The manager may adopt such rules as necessary to implement and enforce this provision. (7) Lighting. Medical marijuana businesses shall maintain adequate outdoor lighting over each exterior exit. Such lighting shall conform to the applicable building codes adopted by GRC Article 10.05 and the Gresham Community Development Code. (8) Registry Identification Card Required. All persons allowed within the medical marijuana facility, except public officials in the performance of their official duties, vendors, contractors, delivery persons, and persons described in GRC 9.63.040(1)(c) shall have a valid registry identification card. All persons allowed within the medical marijuana business shall be in compliance with rules adopted by the Oregon Health Authority. (9) Sales in Facility. Sales or any other transfers of medical marijuana shall occur inside the medical marijuana facility and shall be conducted only between the medical marijuana business and an individual with a registry identification card or their designated caregiver. A facility shall not have a walk-up window or a drive-through. (10) On-Site Use. Marijuana shall not be smoked, ingested, consumed or otherwise used at a medical marijuana business, including any outdoor area adjoining and controlled by the business. (11) Preparation of Product. The use of open flames, the use of flammable and/or combustible gases, and the use of flammable and/or combustible liquids, including but not limited to, butane, ethane, methane, propane and ether, in the preparation or extraction of any products from marijuana is prohibited at a medical marijuana business. (12) On-Site Manufacturing. Manufacturing or production of any marijuana-infused products, extracts, oils, resins or similar derivatives of marijuana is prohibited at a medical marijuana facility. (13) Outdoor Storage. Outdoor storage of merchandise, raw materials or other material associated with the medical marijuana business is prohibited.

Subsections (8) and (9) relate to customers. Subsections (10), (11), (12), (13), and (14) regulate the use, manufacture, preparation, storage, and disposal of medical marijuana.

Manufacturing would be allowed at a non-personal medical marijuana grow operation.


Propose Code Amendment Commentary (14) Disposal. A medical marijuana business shall provide for disposal of marijuana waste as follows:

(i) Marijuana waste shall be temporarily stored in a locked container until it is rendered unusable. A locked container is not required if the marijuana waste is immediately rendered unusable. (ii) Prior to disposal, marijuana waste shall be rendered unusable and unrecognizable as marijuana following the methods described in GRC 7.25.427. (iii) A generator of marijuana waste shall utilize the services of a solid waste licensee or self-haul such materials to a properly licensed and approved solid waste disposal or recycling facility.

9.63.090 Location of Medical Marijuana Business.

(1) Restrictions on Location. A medical marijuana business shall not be registered, or the registration shall not be renewed, if at the time of registration or renewal, the business is:

(a) a medical marijuana facility that is located within any land use districts other than Community Commercial (CC), Employment Center – Pleasant Valley (EC-PV), General Industrial (GI), Heavy Industrial (HI), Industrial – Springwater (IND-SW), Moderate Commercial (MC), Neighborhood Commercial (NC), Neighborhood Commercial – Pleasant Valley (NC-PV), Neighborhood Commercial – Springwater (NC-SW), Research/Technology Industrial – Springwater (RTI-SW); (b) a non-personal medical marijuana grow operation that is located within any land use districts established by the Gresham Community Development Code other than General Industrial (GI), Heavy Industrial (HI), or Industrial – Springwater (IND-SW); or (c) within 1,000 feet of a school, child care facility, park, or religious institution.

(i) Distances. For purposes of this section, all distances shall be measured in a straight line in a radius extending in every direction from any point on the boundary lines of the real property, including all contiguous lots and parcels under the same ownership or control, on which a school, child care facility, park, or religious institution is located. A medical marijuana business shall not be registered if any portion of the business premises is within the 1,000 foot radius.

Limits the location of medical marijuana businesses. These land use districts are available to medical marijuana facilities.

These land use districts are available to non-personal medical marijuana grow operations. A medical marijuana business cannot be within 1,000 feet of these uses.

The following links will open maps showing what areas are available: Medical marijuana facilities Non-personal medical marijuana grow operations


Propose Code Amendment Commentary (ii) Schools. For purposes of this section, a school includes any public or private university, college, community college, career school (professional, technical, business or other instruction), high school, middle school, elementary school, kindergarten, pre-school, charter school, and any other institution of learning primarily attended by minors.

9.63.100 Indemnification. (1) Waiver. By operating after the issuance of a Certificate of Registration under this article, all persons described in GRC 9.63.040(1)(c) waive and release the city, its officers, elected officials, employees, volunteers and agents from any liability for injuries, damages or liabilities of any kind that result from any arrest or prosecution of a medical marijuana business owner, operator, principal, person with a financial interest in the medical marijuana business, person that has leased real property to the medical marijuana business, employee, volunteer, client or customer for a violation of federal, state, regional, county, city or local laws and regulations. (2) Indemnification. By operating after the issuance of a Certificate of Registration under this article, all persons described in GRC 9.63.040(1)(c), jointly and severally if there is more than one, shall indemnify and hold harmless the city, its officers, elected officials, employees, volunteers, and agents, insurers, and self-insurance pool against all liability, claims, and demands on account of any injury, loss, or damage, including without limitation, claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other loss of any kind whatsoever arising out of or in any manner connected with the operation of the medical marijuana business that is the subject of the registration.

These provisions protect the City from liability that may arise out of the operation of a medical marijuana business.

9.63.110 Examination of Books, Records and Premises.

(1) Examination of Books and Records. A medical marijuana business shall comply with the requirements of GRC 2.92.210. (2) Compliance with Public Safety and Code Compliance. As part of investigation of a crime, or a violation of this article, which public safety or code compliance officials reasonably suspect has taken place on the medical marijuana business's premises or in connection with the operation of the business, public officials shall be allowed to view surveillance videotapes or digital recordings at any reasonable time. Without reducing or waiving any provisions of this article, the manager shall have the same access to the business, its records and its operations as allowed to state inspectors and as provided by the Gresham Revised Code.

Requires examination of records.



9.63.120 Protest. Any person aggrieved by any decision of the manager with respect to this article may protest pursuant to GRC 7.50.030. The hearings officer shall hear and consider any records and evidence presented bearing upon the manager's decision. The findings of the hearings officer shall be final and conclusive, and shall be served upon the person filing the protest.

Incorporates the City's standard procedure to challenge a decision regarding a medical marijuana business.

9.63.130 Enforcement. (1) It is a violation of this article for any person to fail or refuse to comply with any provision of GRC Article 9.63. (2) A violation of any provision of GRC Article 9.63 shall be subject to a fine or penalty in the maximum amount of $5,000. Each day a violation occurs or continues is a separate offense. (3) Additional remedies for enforcement of a violation of GRC Article 9.63 are set forth in GRC Article 9.99 and GRC Article 7.50.

Establishes the consequences for violating GRC Article 9.63.

Section 3. GRC Article 7.25 is amended as follows: Proposed new language is double-underlined; Proposed deleted language is stricken.


* * * * *

7.25.020 Definitions. In addition to the definitions set forth in GRC 1.05.010, as used in GRC Article 7.25, the following mean:

* * * Marijuana Waste. Marijuana Waste is the unwanted part or parts of a marijuana plant including, but not limited to, trimmings, shake, stems, remnants, by-products or any other vegetative elements of a marijuana plant that a generator wishes to dispose of. Marijuana waste for the purposes of this article does not include part or parts of a marijuana plant that has been treated or contaminated with solvents, or other chemicals that would be considered household hazardous waste or hazardous waste which shall be disposed of as otherwise provided by applicable law.

* * *

Defines marijuana waste for purposes of disposal.

* * * * *



7.25.427 Preparation and Disposal of Marijuana Waste. Prior to disposal of marijuana waste, the generator of such waste shall render the marijuana waste unusable and unrecognizable as marijuana by following the methods in subsection (1) of this section. Disposal of the marijuana waste rendered unusable shall follow the methods under subsection (2) of this section. (1) The allowable method to render marijuana plant waste unusable and unrecognizable as marijuana is by grinding the marijuana and mixing and incorporating the marijuana waste with other ground materials so the resulting mixture is at least 50 percent non-marijuana waste by volume. Other methods to render marijuana waste unusable must be approved by the manager before implementation. (2) Material used to mix with marijuana waste falls into two categories: compostable waste and non-compostable waste.

(a) Compostable waste: marijuana waste to be disposed as yard debris, compost feedstock or in another organic waste method may be mixed with the following types of waste materials:

(i) yard waste or any other materials allowed in the city's yard debris collection program.

(ii) other wastes as approved by the manager.

(b) Non-compostable solid waste: marijuana waste to be disposed as solid waste in a landfill or another disposal method may be mixed with the following types of waste materials:

(i) paper waste;

(ii) animal bedding or litter;

(iii) cardboard waste;

(iv) plastic waste;

(v) soil; or

(vi) other wastes as approved by the manager. (3) Marijuana wastes rendered unusable and unrecognizable as marijuana can be disposed either as solid waste in a solid waste collection container or as compostable waste in a yard debris collection container. In accordance with the service authorizations provided in GRC 7.25.040, and except as exempted by GRC 7.25.060, a generator of marijuana waste shall utilize the services of a licensee or self-haul such materials to a properly licensed and approved solid waste disposal or recycling facility.

Establishes requirements for the preparation and disposal of marijuana waste.

* * * * *


Section 4. GRC Article 7.50 is amended as follows: Proposed new language is double-underlined; Proposed deleted language is stricken.


* * * * * PERMIT, AND LICENSE URE AND REGISTRATION

INSPECTIONS

7.50.500 Consent to Inspections Relating to Permits, and Licenses, ure and Registrations. If the owner or person in control of the property refuses to allow entry for purposes of inspection, the license, or permit, or registration is subject to revocation pursuant to the applicable revocation process.

7.50.510 Authorization to Inspect. The manager is authorized to make inspection of property to effectuate the purposes and public benefits of the Gresham Revised Code and the Gresham Community Development Code. If a license, or permit, or registration is required, the authority to inspect does not depend on whether the license, or permit, or registration has been obtained. Reasonable administrative standards and procedures for conducting such inspections shall be adopted by ordinance or in a policy by the manager. The standards shall ensure against arbitrary governmental intrusion by describing the manner of selection of the premises to be inspected and steps taken to ensure the inspection warrant will be executed reasonably. The policy shall be subject to review and approval by council. In addition, a reasonable belief by an inspector that a violation of the code exists on a particular property is sufficient cause to conduct an inspection.

Updates the City's standard provisions regarding inspections.

* * * * *

Section 5. GRC Article 9.05 is amended as follows:

Proposed new language is double-underlined; Proposed deleted language is stricken.


* * * * *

9.05.010 Definition. In addition to the definitions set forth in GRC 1.05.010, for purposes of GRC Chapter 9, the following mean:



* * * Revenue. The total amount or value given or received directly or indirectly in money, credits, property, services, or any other consideration, including for the purpose of the reimbursement of costs, through sale, barter, trade for a product or service;, the payment of fees, charges, dues, entrance fees, membership fees; or to make a contributions or donations.

Updates the City's definition of Revenue for purposes of GRC Chapter 9.

* * * * * Section 6. GRC Article 9.05 is amended as follows: Proposed new language is double-underlined; Proposed deleted language is stricken.


* * * * *

9.05.040 Exclusions and Applicability.

* * * (3) GRC 9.05.020 shall not apply to businesses subject to the license required by GRC 9.55.060 (rental residential units), GRC Article 9.63 (medical marijuana businesses), or businesses subject to theGRC Article 9.20 (transient merchants). lodging tax.

A medical marijuana business will not be required to obtain a business license under GRC Article 9.05

* * * * * Section 7. GRC Article 9.99 is amended as follows: Proposed new language is double-underlined; Proposed deleted language is stricken.

Propose Code Amendment Commentary * * * * *

9.99.050 Denial, Suspension, or Revocation of a License, or Permit or Registration.

(1) In addition to any basis for denial, suspension or revocation provided by the applicable article, a license, or permit, or registration applied for under this chapter may be denied, suspended or revoked for any of the following causes:

Updates the City's standard provisions regarding denial, suspension, or revocation of a license, permit, or registration.


Propose Code Amendment Commentary (a) fraud, misrepresentation, untrue, misleading, or incomplete statements or false statement contained in connection with the application, renewal, or update for a license, or permit, or registration;

(b) failing to meet all requirements of local, city, county, regional, and state laws and regulations, including but not limited to, other permitting, inspection, or licensing requirements and land use regulations;

(cb) fraud, misrepresentation or false statement made by the licensee, or permit holder, registrant or a member of the licensee, or permit holder, or registrant’s organization in the course of carrying on the licensed, permitted, or registered activity; (dc) conducting the licensed, permitted, or registered activity in violation of code provisions governing nuisances;

(ed) conducting the licensed, permitted, or registered activity in violation of law, or in a manner that constitutes a menace to the public health and safety;

(fe) failure to comply with an agreement contained in the application or with any requirement under this chapter;

(gf) withdrawal of the written consent of a property owner previously consenting to the licensee, permittee, or registrant conducting business;

(hg) suspension, revocation or cancellation of any necessary health permit;

(ih) failure to secure and maintain in current and unexpired status any required insurance.

(2) Upon denial, suspension or revocation, the manager shall give notice of such action to the licensee, or permit holder, or registrant in writing. Such notice shall include the following:

(a) a statement explaining the action taken,

(b) the reasons for the action,

(c) the date the decision becomes effective, and

(d) the opportunity to protest the decision as set forth in GRC 7.50.030.

(3) Notice of denial, revocation or suspension of any permit, or license, or registration issued pursuant to this article, shall be sent by regular and certified mail, return receipt requested. In the event the suspension or revocation is effective immediately, notice shall also be delivered by posting it on the property at the location listed on the person’s license, or permit, or registration application.


Propose Code Amendment Commentary (4) Unless otherwise provided the action shall be effective 10 days after the date of the notice.

(5) Any license, or permit, or registration applicant or holder aggrieved by a denial, suspension, revocation, or non-renewal of a license, or permit, or registration regulated under this section, may protest such action to a hearings officer pursuant to GRC 7.50.030.

(6) the applicant for a license, permit, or registration made an untrue, misleading, or incomplete statement on, or in connection with, the registration application, registration renewal application, or registration update;

(7) the applicant for, or holder of, a license, permit, or registration fails to meet all requirements of local, city, and state laws and regulations, including, but not limited to, other permitting, inspection, or licensing requirements and land use regulations; or

* * * * * * * *

Section 7. Emergency Clause and Effective Date. The City Council finds that these amendments are required due to expiration of the moratorium on siting medical marijuana facilities in the City of Gresham and the immediate need to regulate non-personal medical marijuana grow operations. The proposed amendments to the Gresham Revised Code must be put into effect immediately to ensure the applications for siting medical marijuana businesses within the City of Gresham may be acted upon in a timely manner. Therefore, an emergency is hereby declared to exist and this ordinance, with the exception of amendments set forth in Section 5, above, shall take effect immediately upon first reading. The amendments set forth in Section 5 shall take effect on May 7, 2015.

First reading and passed: Yes: No: Absent: Abstain:

Erik Kvarsten Shane T. Bemis City Manager Mayor Approved as to Form:

David R. Ris City Attorney

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GRESHAM CITY COUNCIL AGENDA ITEM TYPE: DECISION

Establishing Fees and Charges for Medical Marijuana Businesses Meeting Date: May 5, 2015 Agenda Item Number: E-3 Service Area: Community Development Service Area Manager: Eric Schmidt REQUESTED COUNCIL ACTION

Move to approve Resolution No. 3204 establishing fees and charges for medical marijuana businesses operating within the City of Gresham.

PUBLIC PURPOSE AND COMMUNITY OUTCOME

The fees and charges recommended in this item are associated with the May 5, 2015 agenda item considering Council Bill 09-15 that establishes regulations for medical marijuana businesses. The Council Bill describes various requirements including registration, background checks for individuals associated with the businesses, and recurring inspection requirements of these businesses. This resolution establishes fees and charges for the City’s administration of these requirements.

BACKGROUND

Staff received direction from Council on April 7, 2015 to prepare proposed code language to regulate medical marijuana businesses operating within the City of Gresham. This includes the development of a registration and inspection process, with accompanying fees and charges to provide these additional services. Council Bill 09-15 codifies regulations and establishes procedures the city will follow to register medical marijuana facilities. This companion resolution establishes fees and charges that will be used to cover city expenses to implement these new regulations.

RECOMMENDATION AND ALTERNATIVES

1. If Council Bill 09-15 is adopted, staff recommends approval of Resolution No. 3204 2. City Council may give direction to staff to amend the proposed resolution. Council

could choose a different fee structure, or different fee amounts. 3. City Council may choose to not approve the proposed resolution. Adoption of the

ordinance and not the resolution would require the redirection of city resources to administer the new regulations.

BUDGET / FINANCIAL IMPACT

The fees and charges recommended to be enacted are intended to cover the cost of regulating medical marijuana businesses in Gresham. Not enacting the fees and charges would likely require redirecting resources from other program areas to administer the new requirements.

2

PUBLIC INVOLVEMENT

Public Comments are requested at the Council meeting on May 5, 2015 NEXT STEPS

If Council adopts the proposed resolution, the effective date will be May 5, 2015. ATTACHMENTS

A. Resolution No. 3204 FROM: Eric Schmidt, Community Development Director REVIEWED THROUGH: Sharron Monohon, Budget & Financial Planning Director

Bernard Seeger, Finance & Management Services Director David Ris, City Attorney Office of Governance and Management

FOR MORE INFORMATION Staff Contact: Richard Macy Telephone: (503)-618-2427 Staff E-Mail: Richard.Macy@Gresham Oregon.gov Website: www.greshamoregon.gov

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RESOLUTION NO. 3204 A RESOLUTION ESTABLISHING FEES AND CHARGES FOR GRESHAM REVISED CODE

ARTICLE 9.63 MEDICAL MARIJUANA BUSINESSES THE CITY OF GRESHAM FINDS: A. The Gresham Revised Code (GRC) provides that council shall establish certain fees and charges by resolution. THE CITY OF GRESHAM RESOLVES: Section 1. The fees and charges for GRC Article 9.63 are established as follows:

Completeness Review Fee $250 The completeness review fee shall be paid at the time of application and each time the application is resubmitted until determined to be complete by the manager.

Registration Application Fee $5,000

The application fee shall be paid after the manager determines the application to be complete; background check administrative fee(s) must also be paid, if applicable.

Registration Renewal Application Fee $5,000 The registration renewal application fee shall be submitted with the renewal application; background check administrative fee(s) must also be paid, if applicable.

Registration Update Fee $250 The registration update fee shall be submitted with each registration update; background check administrative fee must also be paid, if applicable.

Regularly scheduled inspections inside normal business hours No charge Re-inspection Fee $400/site visit

In those instances where a re-inspection is conducted following a failure to pass the initial registration application inspection or following a notice of violation.

Inspections outside of normal business hours when requested by the business $600/site visit

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Background Check Administrative Fee Review of criminal history reports for each person associated with the medical marijuana business submitted with the application, renewal application, or registration update during the term of the registration.

No Charge for First 10

Review of additional criminal history reports for each person associated with the medical marijuana business submitted for review.

$100

Section 2. The fees established in this resolution are subject to annual indexing as follows:

1. On April 1 of each year, commencing with April 1, 2016, each fee shown within Section 2 above shall be adjusted by the Bureau of Labor Statistics Cost Index, State and Local Government, Compensation,12-month Percent Change, Not Seasonally Adjusted - ECU10003A (ECI-SL) to reflect the change in that index over the previous calendar year.

2. Each fee shall be rounded up to the nearest $10 increment.

Section 3. This resolution is effective May 5, 2015. Yes: No: Absent: Abstain: Passed by the Gresham City Council on May 5, 2015. Erik Kvarsten Shane T. Bemis City Manager Mayor Approved as to Form: David R. Ris City Attorney

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