Ord 2527 - Medical Marijuana Permit, RegulationsCOUNCIL BILL NO. 2975
ORDINANCE NO. 2527
AN ORDINANCE ADOPTING A MEDICAL MARIJUANA PERMIT PROCESS; IMPOSING
REGULATIONS ON THE OPERATION OF MEDICAL MARIJUANA FACILITIES; AND
DECLARING AN EMERGENCY
WHEREAS, Section 4 of the Woodburn City Charter provides:
Section 4. 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; and
WHEREAS, the above referenced grant of power has been interpreted as
conferring all legislative power on the City of Woodburn that is reserved to Oregon
cities; and
WHEREAS, the Oregon Legislature enacted HB 3460 in 2013 (ORS 475.314)
which requires the Oregon Health Authority to develop and implement a process
to register Medical Marijuana Facilities; and
WHEREAS, in 2014 the Oregon Legislature enacted Senate Bill 1531, which
specifically provides that an Oregon city has the power and authority to enact
and impose reasonable regulations on the operation of Medical Marijuana
Facilities; and
WHEREAS, under Oregon law, cities may regulate the operation and
location of certain types of businesses within their jurisdiction except when such
action has been specifically preempted by state statute; and
WHEREAS, in Marion County both the cities of Salem and Keizer have
already enacted ordinances addressing Medical Marijuana Facilities that are
similar to this Ordinance; and
WHEREAS, the City Council believes that it is in the interest of both the public
and business owners to have Medical Marijuana Facilities subject to
approximately the same regulations in Woodburn that they are in Salem and
Keizer; and
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Ordinance No. 2527
WHEREAS, in City of Cave Junction v. State of Oregon, Josephine County
Case No. 14CV0588, an Oregon Circuit Court ruled that the City of Cave Junction,
a home rule municipality, was not preempted by HB 3460 and SB 1531 from
regulating or prohibiting Medical Marijuana Facilities; and
WHEREAS, the Woodburn City Council wants to allow operation of Medical
Marijuana Facilities in the City in ways that protect and benefit the public health,
safety and welfare of existing and future residents and businesses; and
WHEREAS, the City Council finds that the unique characteristics of Medical
Marijuana Facility operations and their potential impacts makes it necessary to
establish particular time, place, and manner requirements for such operations
and a separate permitting process for Medical Marijuana Facilities; NOW,
THEREFORE,
THE CITY OF WOODBURN ORDAINS AS FOLLOWS:
Section 1. Purpose. The purpose of this Ordinance is to minimize any
adverse public safety and public health impacts that may result from allowing
Medical Marijuana Facilities in the City by adopting particular time, place and
manner regulations as authorized under state statute and establishing a
permitting process.
Section 2. Definitions.
A. "Cash Accounting" means a cash basis system of accounting in
which the Operator of an enterprise records revenue and expenses
when they are paid, regardless of when goods are received or
delivered.
B. 'City Administrator" means the City Administrator of the City
of Woodburn or his/her designee.
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. "Controlled Substances" means substances designated as
Schedule I or Schedule II controlled substances in the Code of
Federal Reg ulations Title 21, Chapter II, Part 1308.
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Ordinance No. 2527
E. "Convicted" means found guilty by verdict or finding entered in
a criminal proceeding in a court of competent jurisdiction.
F. 'Debt Financing" means secured or unsecured loans to provide
funds for use in the Medical Marijuana Facility business, except for
monies owed for the reasonable cost of goods or services
received.
G. 'Facility or Facilities" means a Medical Marijuana Facility or
Medical Marijuana Facilities.
H. 'Financial Interest" exists when a Person, the Person's immediate
family, or a legal entity to which the Person is a Company Principal
(1) receives or isentitled to receive directly orindirectly any of the profits
ofthe Facility; (2) rents orleases real property to the Operator for use by
the business; (3) rents or leases personal property to the Operator for
a commercially unreasonable rate; or (4) lends or gives money, real
property, or personal property to the Operator for use in the business.
'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, orpredation
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.
J. 'Medical Marijuana" means all parts of marijuana plants that may be
used to treat or alleviate a Medical Marijuana Qualifying Patient's
debilitating medical condition or symptoms associated with the patient's
debilitating medical condition.
K. 'Medical Marijuana Facility or Facilities" 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 qualifying patients.
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Ordinance No. 2527
L. '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 as defined by ORS 475.302(5).
M. "Minor" means any Person under 18years of age.
N. "Operator' means the Person who is the proprietor of a Facility,
whether in the capacity of Company Principal, 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 aperiod during which the Facility 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 Facility is in operation.
O. '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.
P. "Premises" means a location registered by the State of Oregon
as a Medical Marijuana Facility 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.
Q. 'Public Property" means all City of Woodburn parks, and any real
property with a Public Zone designation under the Woodburn
Development Ordinance.
Section 3. Annual Permit Reauired. The Operator of any Medical Marijuana
Facility in the City must possess a valid annual Medical Marijuana Facility permit
issued under this Ordinance and must comply with the requirements of any and
all state or local laws.
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Ordinance No. 2527
Section 4. Initial Permit Application Requirements.
A. Application forms for Medical Marijuana Facility permits will be
available at the Woodburn Finance Department. Applications for
initial and renewal Medical Marijuana Facility permits must be
submitted to the Finance Department and must be signed under
penalty of perjury. A separate permit application must be
submitted for each proposed Facility location. The application
documents must include at least the following:
1. The location of the proposed Facility.
2. The true names and addresses of the Persons or legal entities that
have an ownership interest in the Facility; that have loaned or
given money or real or personal property to the applicant for use
by the Facility within the preceding year; or that have leased real
property to the applicant for use by the Facility.
3. A detailed description of the type, nature and extent of the
enterprise to be conducted.
4. A detailed description of the proposed accounting and inventory
systems for the Facility.
5. Certification that the proposed Facility is registered as an Oregon
Medical Marijuana Facility pursuant to ORS 475.300-475.346.
6. Certification that the proposed Facility has met all applicable
requirements of the Woodburn Development Ordinance.
7. Certification that all current fees and taxes owed have been paid.
8. Detailed illustrations (to scale) of all proposed signage and
location of such signage.
9. Such other information deemed necessary by the City
Administrator to conduct any investigation or background check
(including the names and fingerprints) of the Operator(s),
employees, volunteers, Persons with a Financial Interest, and
Persons or entities providing Debt Financing for the Facility.
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Section 5. Expiration and Renewal of Permits/Facility Permit Fees.
A. At the time of submission of an initial Facility permit application, the
applicant must pay a Medical Marijuana Facility permit application
and investigation fee as provided by this Ordinance. No portion of
the Medical Marijuana Facility permit fee is refundable in the event
operation of the Facility is discontinued for any reason.
B. A Facility permit terminates automatically on June 30 of each year,
unless a permit renewal application is approved.
C. A Facility 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 Facility under this Ordinance and the City shall not
be liable to the permit holder for termination of the permit in this
manner.
D. 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 Finance Department no less than thirty
(30) days prior to expiration of the permit. The permittee must pay a
Medical Marijuana Facility permit renewal application and
investigation fee at the time a permit renewal application is
submitted.
E. A non-refundable application/investigation fee of $500 and a
refundable $1,500 registration fee shall be charged for a Medical
Marijuana Facility permit application or an annual Medical
Marijuana Facility permit renewal application. The registration fee
shall be refunded to the applicant if an application is returned to the
applicant as incomplete, if the City denies an application, or if an
applicant withdraws an application. The registration fee will not be
refunded to the applicant if the City suspends or revokes a permit for
noncompliance with any City Ordinance or regulations, or violations
of any state laws.
F. In addition to the application/investigation fee and the registration
fee, an appeal fee of $750 shall be charged for all appeals under this
Ordinance.
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Ordinance No. 2527
Section 6. Permit Conditions. Any Medical Marijuana Facility must comply
with the following requirements, in addition to any other state or local
requirements:
A. The Facility must continue to be registered in good standing as an
Oregon Medical Marijuana Facility pursuant to state law.
B. The Facility must provide written notification to the City
Administrator of any sanctions imposed by the Oregon Health
Authority on the Operator and/or restrictions imposed by the
Oregon Health Authority on the operation of the Facility. The
required written notification shall be provided to the City
Administrator within ten (10) calendar days after the Oregon
Health Authority has imposed the sanction or restriction.
C. The Facility must meet applicable laws and regulations, including,
but not limited to zoning compliance, building and fire codes,
including the payment of all fines, fees, and taxes owing to the
City.
D. The Facility must not manufacture or produce any extracts, oils,
resins or similar derivatives of Marijuana on-site and must not use
open flames or gases in the preparation of any products.
E. Marijuana and tobacco products must not be smoked,
ingested or otherwise consumed on the Premises of the Facility.
F. Operating hours for retail sales to Medical Marijuana Qualifying
Patients must be no earlier than 10:00 a.m. or later than 8:00 p.m. on
the same day.
G. The Facility must utilize an air filtration and ventilation system
which, to the greatest extent feasible, confines all objectionable
odors associated with the Facility 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.
H. The Operator of the Facility must certify that adequate measures
have been taken to protect the public from the Fungus Aspergillus
and specify what measures have been taken.
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Ordinance No. 2527
I. The Facility must provide for secure disposal of Marijuana remnants
or by-products; such remnants or by-products shall not be placed
within the Facility's exterior refuse containers.
J. The Facility's location shall conform to all requirements of the
Woodburn Development Ordinance.
K. The Facility must not be co -located on the same tax lot orwithin the
same building with any Marijuana social club, smoking club, or grow
site.
L. Signage shall not include logos or illustrations, and shall
emphasize identification of the Premises without drawing undue
attention.
M. No Minor is allowed on the Premises unless the Minor is a
Medical Marijuana Qualifying Patient and is accompanied by a
parent, guardian, or caregiver whose purpose is to procure the
Minor's Medical Marijuana.
N. A Person with any felony convictions or a conviction for any drug
related misdemeanor (including, but not limited to those under ORS
475) may not (1) be an Operator, Company Principal, employee, or
volunteer of a Facility; or (2) have a Financial Interest in the Facility.
O. The Facility 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 City
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 Facility's accounting system to meet the
requirements of the City Administrator.
P. The Facility must have a "cash drop safe" on site that is sufficient to
secure all cash received.
Q. Each Operator must keep and preserve for a period of at least
three (3) years records containing at least the following information:
1. Daily wholesale purchases (including grow receipts) and retail
sales, including a cash receipts and expenses journal;
2. State and federal income tax returns;
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Ordinance No. 2527
3. Names of and any aliases of the Operator;
4. Names of and any aliases of employees/volunteers of the Facility;
5. Names of and any aliases of Persons with a Financial Interest in the
Facility; and
6. The City Administrator may require additional information as he or
she deems necessary.
R. Each Facility must display its current permit inside the Facility in a
prominent place easily visible to Persons conducting business in
the Facility.
S. Persons conducting business in the Facility must display their Oregon
Medical Marijuana Program card to gain entry to the Facility.
T. Sales or any other transfers of Marijuana products must occur
completely inside the Facility building and must be conducted only
between the Facility and Medical Marijuana Qualifying Patients. No
walk-up ordrive-through service is allowed.
Section 7. Background Checks. The Finance Department will send to the
Police Department the information provided on each initial or renewal Facility
permit application. The Police Department will conduct criminal background
checks under ORS 181.534 to determine whether any Person therein (including,
but not limited to, an Operator, Person with Financial Interest, Company Principal,
employee or volunteer) has any felony convictions or convictions for drug related
misdemeanors and inform the Finance Department whether or not all the Persons
named in the permit application passed the required background checks. If,
following an initial application or renewal, an additional person is proposed to be
an Operator, Person with Financial Interest, Company Principal, employee or
volunteer, then such person must pass the background check prior to assuming
such position.
Section 8. Examination of Books Records and Premises.
A. To determine compliance with the requirements of this Ordinance,
the Woodburn Development Ordinance, and any and all
applicable regulations, the City Administrator may examine or
cause to be examined by an agent or representative designated
by the City Administrator, at any reasonable time, the Premises of
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Ordinance No. 2527
the Facility, including wastewater from the Facility, and any and all
Facility financial, operational and Facility information, including
books, papers, payroll reports and state and federal income tax
returns. Every permittee is directed and required to furnish to the City
Administrator the means, Facilities and opportunity for making such
examinations and investigations.
B. As part of investigation of a crime or violation of this Ordinance
which law enforcement officials reasonably suspect has taken
place on the Premises, the Police Department shall be allowed
to view surveillance videotapes or digital recordings at any
reasonable time.
C. Without reducing orwaiving anyprovisions of this Ordinance, the
Police Department shall have the same access to the Facility, its
records and its operations, as allowed to state inspectors. Denial
or interference with access shall be grounds for revocation or
suspension of a Facility permit.
Section 9. Administrative and Other Remedies for Noncompliance,
Administrative Appeals and Penalties.
A. The City Administrator may deny, suspend, or revoke a Facility permit
for failure to comply with this Ordinance or rules adopted under
this Ordinance, for submitting falsified information to the City or
the Oregon Health Authority, or for noncompliance with any other
City ordinances or regulations, or violation of any state laws.
Any suspension or revocation pursuant to this section shall be in
writing, setting forth the reasons therefor, and written notice shall
be given to the permittee by first-class United States Mail at least
ten (10) calendar days prior to effective date of the revocation or
suspension.
2. A decision to deny, suspend, or revoke a Facility permit may be
appealed by filing a Notice of Appeal accompanied by the
appeal fee of $750 in writing physically delivered to the City
Administrator on or before the effective date. Unless City
Administrator has declared imminent danger to the public will
exist, the City Administrator's decision to revoke or suspend is
stayed pending appeal. The matter shall be heard by a Hearings
Officer appointed by the City Council who shall determine, by
preponderance of the evidence, whether the City Administrator's
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Ordinance No. 2527
decision should be upheld or reversed, or upheld in part and
reversed in part. The hearing shall be conducted no later than
sixty (60) days from the date of appeal, unless a different date is
stipulated by the City and the applicant, or good cause is shown
for setting the matter forward. Testimony at the hearing shall be
taken upon oath or affirmation of the witnesses. The Hearings
Officer shall consider only the matters set forth in the Notice of
Appeal. The Findings and Decision of the Hearings Officer shall be
served upon the appellant by first class mail within ten (10) days
after the hearing concludes. The Hearings Officer decision shall
be effective ten (10) days following the date of the decision. The
Findings and Decision of the Hearings Officer shall be final and
conclusive, subject only to writ of review under ORS 34.010 to
34.100, which shall be the sole remedy.
B. In addition to the remedies of suspension and revocation, failure to
comply with the requirements of this Ordinance constitutes a class 1
civil infraction under the Civil Infraction Ordinance. Each day in
violation constitutes a separate offense. Company Principals,
Operators, employees, and volunteers are jointly and severably
liable for such offenses.
C. The remedies provided herein are not exclusive and shall not
prevent the City from exercising any other remedy available under
the law, nor shall the provisions of this Ordinance prohibit or restrict
the City or other prosecutor from pursuing criminal charges under
state law or City ordinance. Such remedies include, but are not
limited to, any equitable remedies such as temporary restraining
orders or other injunctive relief.
Section 10. Confidentiality. Except as otherwise required by law, and
provided by this Ordinance, it shall be unlawful for the City, any officer, employee
or agent to divulge, release or make known in any manner any financial or
employee information submitted or disclosed to the City under the terms of this
Ordinance. Nothing in this section shall prohibit:
A. The disclosure of the names and addresses of any Operator or
provider of equity or Debt Financing for a Facility; or
B. The disclosure of general statistics in a form which would prevent
identification of financial information regarding a Facility
Operator; or
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Ordinance No. 2527
C. The presentation of evidence to a court, or other tribunal having
jurisdiction in the prosecution of any criminal or civil claim by the
City under this Ordinance; or
D. The disclosure of information when such disclosure is required by
public records law procedures.
Section 11. Severability. If any section, subsection, paragraph, sentence
or word in this Ordinance is deemed to be invalid or beyond the authority of the
City, either on its face or is applied, the invalidity of such provision shall not affect
the other sections, subsections, paragraphs, sentences, or words of this
Ordinance, and the application thereof; and to that end sections, subsections,
paragraphs, sentences and words of this Ordinance shall be deemed severable.
Section 12. Emergency Clause. This Ordinance being necessary for the
immediate preservation of the public peace, health and safety, so that
regulations applicable to Medical Marijuana Facilities can be adopted prior
to the expiration of the moratorium on the siting of Medical Marijuana
Facilities that the City Council imposed pursuant to state law, an emergency
is declared to exist and this Ordinance shall take effect immediately upon
passage by the Council and approval by the Mayor.
Approved as to form: eo-I�- / V laZ2� --
City Attorney / Date
- WON W�k I M I
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Recorder
ATTEST:
Heather Pierson, City Recorder
City of Woodburn, Oregon
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Ordinance No. 2527
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