After the Smoke Cleared: What the 2015 Oregon Legislature Did With Marijuana. Presented by: Bob Shields, City Attorney Scott Russell, Chief of Police
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1 After the Smoke Cleared: What the 2015 Oregon Legislature Did With Marijuana Presented by: Bob Shields, City Attorney Scott Russell, Chief of Police 1
2 NOVEMBER 2014 Yes = 847,865 (56%) No = 663,346 (44%) 2
3 HB 3400 AMENDS MEASURE 91 Omnibus bill 127 pages long Retail Medical Reference: 2015 Oregon Laws, Chapter 614 (Enrolled House Bill 3400)36) 3
4 HB 3400 ORDINANCE OPT OUT Opt out by action of the county or city governing body for counties, and cities in counties, that voted against Measure 91 by at least 55 percent 15 of them: Baker, Crook, Gilliam, Grant, Harney, Jefferson, Klamath, Lake, Malheur, Morrow, Sherman, Umatilla, Union, Wallowa, and Wheeler 4
5 HB 3400 VOTER OPT OUT Opt out by local vote referred by the county or city governing body Any city or county Temporary moratorium until election Election at next general election (Nov 2016) Grandfathering for certain existing medical processors and dispensaries If a county or city opts out of any category, local option tax is prohibited 5
6 Measure 91 Election Results No at 55% and Above Yes No (less than 55%) No (55% and above) Clatsop Columbia Tillamook Washington Yamhill Multnomah Clackamas Hood River Sherman Gilliam Morrow Umatilla Union Wallowa Wasco Polk Marion Wheeler Baker Lincoln Benton Linn Jefferson Grant Crook Lane Deschutes Coos Douglas Malheur Harney Lake Klamath Curry Josephine Jackson 6
7 CITY AUTHORITY TO BAN HB 3400 allows cities to ban: these state licensed activities: Medical marijuana processors (preparing edibles, skin and hair products, concentrates and extracts); Medical marijuana dispensaries; Recreational marijuana producers (growers); Recreational marijuana processors (preparing edibles, skin and hair products, concentrates and extracts); Recreational marijuana wholesalers; and Recreational marijuana retailers. HB 3400 is silent on whether a city can ban medical marijuana growers. This issue will probably be decided in court. 7
8 CITY AUTHORITY TO BAN Marion County Measure 91 Yes: 49.44% No: 51.56% Woodburn Measure 91 Yes: 47% No: 53% Any Woodburn ban would apply only in the incorporated area and would require voter approval at the November 2016 election. 8
9 CITY AUTHORITY TO BAN Medical marijuana dispensaries and processors that have registered with the state by the time their city adopts a prohibition ordinance are not subject to the ban if they have successfully completed a city or county land use application process. HB 3400 does not provide similar protection to any of the other marijuana activities. 9
10 MARIJUANA TAX Can the City impose a local tax on recreational marijuana? Under HB 3400, cities may impose up to a 3 percent tax on sales of marijuana items made by those with recreational retail licenses by referring an ordinance to the voters at a statewide general election. Can the City tax medical marijuana? This is doubtful. HB 3400 provides that authority to impose a tax or fee on the production, processing or sale of marijuana items in this state is vested solely in the Legislative Assembly, and a city may not adopt or enact ordinances imposing a tax or fee on those activities except for the 3 percent tax on recreational activities. 10
11 MARIJUANA TAX Can the City collect a tax on medical and recreational marijuana by authority of the ordinance it adopted before HB 3400 was enacted? This is doubtful. HB 3400 provides that, except as provided by law, the authority to impose a tax or fee on the production, processing or sale of marijuana items is vested solely in the Legislative Assembly, and a city may not adopt or enact ordinances imposing a tax or a fee on those activities. 11
12 MARIJUANA TAX What is the state going to tax and in what amount? The State will impose a 17 percent tax on the retail sale of marijuana items, including marijuana leaves and flowers; immature marijuana plants; marijuana concentrates and extracts; marijuana skin and hair products; and other marijuana products. How much of the state tax revenues will go to cities? Ten percent of the state marijuana tax revenues will be distributed to cities that do not adopt ordinances prohibiting the establishment of marijuana facilities registered and licensed by the state. The revenue will be distributed to cities [t]o assist local law enforcement in performing its duties under Measure
13 MARIJUANA TAX How will state tax revenues be distributed to cities? Until July 1, 2017, the state tax revenue dedicated to cities will be distributed proportionately based on population to those cities that do not adopt prohibiting ordinances. After July 1, 2017, those revenues will be distributed proportionately based on the number of recreational licenses issued for premises located in each city. 13
14 MARIJUANA TAX If the City adopts a HB 3400 ban, will it still get a share of marijuana tax revenues? No. A city that adopts an ordinance prohibiting the establishment of medical or recreational marijuana businesses is not eligible to receive a distribution of state marijuana tax revenues and may not impose a local tax. 14
15 TIME, PLACE AND MANNER State law restrictions on marijuana dispensaries: Cannot locate in a residential zone. Cannot locate within 1,000 feet of a school. Medical marijuana dispensaries cannot locate within 1,000 feet of another dispensary or grow site. 15
16 TIME, PLACE AND MANNER Before issuing any recreational marijuana license, the OLCC must request a statement from the city that the requested license is for a location where the proposed use of the land is a permitted or conditional use. 16
17 TIME, PLACE AND MANNER Cities can impose reasonable restrictions : medical and recreational marijuana businesses: Hours of operation. Location, except that a city may not impose more than a 1,000-foot buffer between retail licensees. Manner of operation. Public access to the premises. Must be consistent with city and county comprehensive plans, zoning ordinances, and public health and safety laws. 17
18 EARLY SALES OF RECREATIONAL MARIJUANA The OLCC has not yet issued licenses for the retail sale of recreational marijuana, and does not expect to do so until sometime in Medical marijuana dispensaries may begin selling limited quantities of recreational marijuana from October 1, 2015 until December 31, A city may adopt an ordinance prohibiting early sales without referring it to the voters. 18
19 CITY COUNCIL POLICY DECISIONS 1. Does the City Council want to refer to the Woodburn voters an ordinance prohibiting marijuana activities consistent with the state law? 19
20 CITY COUNCIL POLICY DECISIONS 2. Does the City Council want City staff to further evaluate additional time, place, and manner restrictions as permitted by state law? 20
21 CITY COUNCIL POLICY DECISIONS 3. Does the City Council want to adopt an ordinance prohibiting the OLCC s early start program? 21
22 Questions? 22
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