CITY OF SALEM Staff Report

CITY OF SALEM
555 Liberty St SE
Salem, OR 97301
Staff Report
File #: 16-001
Version: 2
Date: 5/23/2016
Item #: a.
TO:
Mayor and City Council
THROUGH:
Steve Powers, City Manager
FROM:
Dan Atchison, City Attorney
SUBJECT:
Proposed regulation of recreational marijuana facilities and amendments to the City’s medical
marijuana regulations.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
ISSUE:
Shall the City Council conduct first reading of Ordinance Bill No. 8-16, which provides for regulations
and a licensing program for recreational marijuana facilities, and amends the City’s existing
regulations for medical marijuana facilities; and schedule a public hearing to consider the ordinance
bill?
RECOMMENDATION:
Conduct first reading of Ordinance Bill No. 8-16, which provides for regulations and a licensing
program for recreational marijuana facilities, and amends the City’s existing regulations for medical
marijuana facilities; and schedule a public hearing to consider the ordinance bill.
ody
SUMMARY AND BACKGROUND:
The 2015 Oregon Legislature enacted a series of laws affecting recreational and medical marijuana,
now found in ORS Chapter 475B. Earlier this year the Oregon Liquor Control Commission (“OLCC”),
which is charged with regulating recreational marijuana, published rules for recreational marijuana.
Further, the 2016 Oregon Legislature enacted additional laws concerning recreational marijuana.
This report summarizes state laws and regulations concerning recreational marijuana sales, and
recommends that Council direct staff to prepare City regulations for recreational marijuana sales.
On March 28, 2016, the City Council directed staff to prepare regulations of recreational marijuana
facilities, and present the draft regulations for Council’s review. Ordinance Bill No. 8-16, proposes a
licensing program for recreational marijuana retailers similar to the City’s existing program for
CITY OF SALEM
Page 1 of 3
Printed on 5/13/2016
powered by Legistar™
File #: 16-001
Version: 2
Date: 5/23/2016
Item #: a.
medical marijuana facilities. In addition, the ordinance bill proposes “house cleaning” amendments
to the City’s existing medical marijuana to respond to issues raised by City staff and applicants that
have arisen over the past year of licensing and renewal activity. The major substantive provisions of
the ordinance bill are set forth below in the facts and findings.
FACTS AND FINDINGS:
The proposed regulations for recreational facilities are substantially similar to the City’s existing
regulations for medical marijuana facilities, and provide:
· Licensing. Requires recreational marijuana retail facilities to obtain a City license to operate.
· Locational restrictions. Requires marijuana facilities to be located at least;
o 1,000 feet from each other, a school or Head Start facility,
o 500 feet from a public park or playground,
o 100 feet from a residentially zoned property or certified child care facility.
· Prohibits marijuana facilities in the Central Business District, and where retail sales is
prohibited (such as residential zones).
· Requires operators, employees and all involved parties to obtain a City-issued marijuana
handlers license. The license will allow employees to move between facilities and eliminates
the need for a new criminal background check with each move.
· Requires facility’s air filtration system to “reasonably” contain all odors of the facility.
· Clarifies the method to calculate the distance between two facilities.
· Adds Head Start programs to the list of “affected uses” which facilities must maintain a 1,000
foot separation requirement.
· Provides that existing City-licensed medical marijuana facilities will have a 90 day period from
the effective date of the ordinance to apply for a recreational retail license prior to the City
accepting license applications from other parties.
Public Outreach
After Council directed staff to prepare regulations for recreational marijuana facilities on March 28th,
staff contacted the individuals who have submitted a request that the City complete a State Land Use
Compatibility Statement (LUCS), which is required by the State when applying for a State
recreational marijuana retail license. Staff have informed the 14 people who have submitted LUCS
forms to the City that the City Council will be considering regulations for recreational marijuana sales,
and that the City’s regulatory program may restrict or prohibit a potential recreational retail
marijuana facility at a particular location.
Further, after this item appears as a future report on May 9, 2016, staff will post on the City’s social
media feeds and website information regarding the potential regulations and how to participate in
the process.
Next Steps
The ordinance bill will appear for first reading on the May 23, 2016 Council agenda. If the ordinance
bill advances from first reading, Council may direct that a public hearing be scheduled for June 13 th.
At the public hearing, Council may engross (amend) the ordinance bill, refer it to staff, decline to
CITY OF SALEM
Page 2 of 3
Printed on 5/13/2016
powered by Legistar™
File #: 16-001
Version: 2
Date: 5/23/2016
Item #: a.
advance the ordinance, or advance it to second reading at a future Council meeting.
Dan Atchison
City Attorney
May 4, 2016
CITY OF SALEM
Page 3 of 3
Printed on 5/13/2016
powered by Legistar™
1
ORDINANCE BILL NO. 8-16
2
AN ORDINANCE RELATING TO MARIJUANA; AMENDING AND RENUMBERING SRC
3
CHAPTER 31; CREATING NEW SRC CHAPTER 31B
4
The City of Salem ordains as follows:
5
Section 1. SRC Chapter 31 is hereby renumbered SRC Chapter 31A and is amended to read:
6
31A.001. Purpose. The purpose of this Chapter is to create a licensing and regulatory program
7
for Medical Marijuana Facilities that protects the public health, safety, and welfare.
8
31A.005. Definitions. Except as the context otherwise specifically requires, as used in this
9
Chapter, the following mean:
10
(a) Career school has the meaning as defined on Oregon Administrative Rule 333-008-1010(5).
11
(b) Chief means the Chief of the Salem Police Department or the Chief’s designee.
12
(c) Elementary school has the meaning as defined in Oregon Administrative Rule 333-008-
13
1010(10).
14
(d) Fire Code Official means the Fire Chief of the Salem Fire Department or the Fire Chief’s
15
designee.
16
(e) Head Start means an early childhood education program facility authorized by the United
17
States Department of Health and Human Services.
18
(f)(e) License means the written form of permission required in order to operate a business or
19
pursue a vocation as required by this Chapter, and is not intended to be an endorsement of a
20
particular business or vocation or licensee.
21
(g)(f) Licensee means a person engaged in the business of furnishing or operating a business
22
defined by this Chapter, whether upon contract or by offering such service to the public
23
generally.
24
(h)(g) Marijuana has the meaning given that term in ORS 475.302 475B.015 as may be
25
amended.
26
(i)(h) Medical marijuana means marijuana used for the exclusive benefit of a person to mitigate
27
the symptoms or effects of the person’s debilitating medical condition.
28
(j)(i) Medical marijuana facility, or “facility,” means a facility that is registered by the Oregon
29
Health Authority, and licensed by the City, and that sells, distributes, transmits, gives, dispenses,
30
or otherwise provides medical marijuana to a natural person with a registry identification card.
ORDINANCE 8-16 – Page 1
COUNCIL OF THE CITY OF SALEM, OREGON
1
A “facility” includes all premises, buildings, curtilage, or other structures used to accomplish the
2
storage, distribution and dissemination of marijuana.
3
(k)(j) Person means any natural person, partnership, corporation, Limited Liability Company,
4
government entity, association or other entity in law or fact.
5
(l)(k) Person or persons with a financial interest means any person that has loaned or given
6
money or real or personal property to the applicant, or principal of the applicant for use by the
7
proposed facility within the preceding year.
8
(m)(l) Principal means members, partners, or corporate officers, and all stockholders holding
9
more than ten percent of the voting stock for any applicant who is not a natural person.
10
(n) Registry identification card means a document issued by the Oregon Health Authority that
11
identifies a person authorized to engage in the medical use of marijuana, and the person’s
12
designated primary caregiver, if any.
13
31A.010. Administration; Rulemaking.
14
(a) The Chief shall administer and enforce the provisions of this Chapter, and shall have the
15
authority to render written and oral interpretations, and to adopt administrative rules and
16
procedures necessary for its proper administration and enforcement.
17
(b) The Chief may investigate any applicant for a license to ensure compliance with the
18
requirements of this Chapter. The Chief may require, as part of any application for a license, that
19
any premises sought to be licensed be inspected to ensure compliance with the requirements of
20
this Chapter. The Chief may require the fingerprinting of any natural person whose name is
21
required to be furnished in connection with any application, may require the submission of a
22
criminal history including, but not limited to, an FBI Identification Record, and may require an
23
applicant to provide such additional information that the Chief determines is necessary to
24
evaluate the application. The applicant is responsible for any fees or costs associated with the
25
criminal background check.
26
31A.015. License Required. A license issued pursuant to this Chapter shall be required for any
27
person engaging in the operation of a medical marijuana facility.
28
31A.020. License Fees; Proration.
29
(a) Fees for licenses required by this Chapter shall be set by resolution of the City Council in an
30
amount not to exceed $2,000.00.
ORDINANCE 8-16 – Page 2
COUNCIL OF THE CITY OF SALEM, OREGON
1
2
31A.025. License Term and Renewal.
3
(a) A license shall be valid from the date of issuance for a period of one year.
4
(b) A license may be renewed for additional one year terms as provided by this Chapter.
5
31A.030. Transferability. Licenses issued under this Chapter shall not be transferred to any
6
other person.
7
31A.035. Display of License. Upon request, the licensee shall show the license to any person
8
with whom the licensee is dealing as part of the licensed activity or to the Chief or the Chief’s
9
designee.
10
31A.040. License Requirements. In addition to any other requirement set forth in this Chapter,
11
each licensee shall:
12
(a) Notify the Chief in writing within ten business days of any change in the material
13
information related to the license including, but not limited to, change of name, address,
14
telephone number, additional employees or volunteers, additional principals or persons with a
15
financial interest, criminal history, or registered agent. No new principal may become involved
16
in a licensed business until an application is submitted to and approved by the Chief for that new
17
principal. If a new principal does become involved in a licensed business prior to approval, the
18
Chief may revoke the license pursuant to the procedures set forth in SRC 31.045.
19
(b) Advertise for business only in the name in which a license is issued.
20
31A.045. New Licenses.
21
(a) Application. An application for a new license shall include the following information, in
22
addition to any other information specifically required elsewhere in this Chapter:
23
(1) The applicant’s name and address;
24
(2) The names and residence addresses of all principals of the applicant;
25
(3) The names and residence addresses of all persons with a financial interest that have
26
loaned or given money or real or personal property to the applicant, or principal of the
27
applicant for use by the proposed facility within the preceding year;
28
(4) The names and residence addresses of all persons who are or anticipated to be at the
29
time of application an employee or volunteer at the proposed facility;
30
(5) The address to which mail concerning the license may be sent;
ORDINANCE 8-16 – Page 3
COUNCIL OF THE CITY OF SALEM, OREGON
1
(5)(6) All business addresses maintained or to be maintained by the applicant in the state
2
of Oregon;
3
(6)(7) Submission of a complete application for a marijuana handlers card from criminal
4
background check for the applicant, and all principals, and persons with a financial
5
interest, employees and volunteers ofin the proposed facility;
6
(7)(8) The names of at least three natural persons who can give an informed account of
7
the business and moral character of the applicant and principals;
8
(8)(9) The signature of the applicant, if a natural person, or otherwise the signature of an
9
authorized agent of the applicant, if the applicant is other than a natural person;
10
(9)(10) The address of the proposed facility;
11
(10)(11) If the applicant is leasing the property where the facility will be located, the
12
name and address of the owner, landlord, and property manager of the location of the
13
proposed facility;
14
(11)(12) A complete description of the proposed accounting and inventory systems for
15
the facility;
16
(12)(13) Certification that the proposed facility is registered as a facility with the Oregon
17
Health Authority in compliance with state lawpursuant to ORS 475.314;
18
(13)(14) Other information deemed reasonably necessary by the Chief to complete
19
review of the application.
20
(b) Review of Application.
21
(1) No application shall be deemed complete until all of the information required by
22
subsection (a) of this section has been provided and the applicant has paid all fees
23
associated with the license, including a non-refundable application fee.
24
(2) Upon receipt of a complete application, the Chief shall conduct such investigation as
25
the Chief deems necessary to determine whether the application meets the qualifications
26
for the license and whether statements made in the application are true. The Chief shall
27
conduct a criminal background check on all applicants, principals, persons with a
28
financial interest, employees and volunteers of the proposed facility.
29
(c) Issuance of New License. A new license shall be granted to the applicant unless:
30
ORDINANCE 8-16 – Page 4
COUNCIL OF THE CITY OF SALEM, OREGON
1
(1) The applicant made an untrue or incomplete statement on, or in connection with, the
2
application for the license; provided, that if such untrue or incomplete statement was the
3
result of excusable neglect, the applicant may resubmit an application in which such
4
defect is corrected.
5
(2) The applicant fails to meet all requirements of federal, state and local laws and
6
regulations, including, but not limited to, other permitting or licensing requirements and
7
land use regulations, except that a license application for a facility will not be denied
8
solely because marijuana is illegal under federal law.
9
(3) The applicant, principal, or person with a financial interest in the facility fails the
10
criminal background check as required by SRC 31A.090 as part of obtaining a marijuana
11
handler license.
12
(4) The applicant, principal, or person with a financial interest in the Facility has an
13
outstanding warrant for his or her arrest.
14
(5) After notice to the applicant, and upon payment of all fees associated with the license,
15
the Chief shall issue the license.
16
(6) A license is effective as of the date of issuance and shall expire, unless renewed, one
17
year from the date of issuance.
18
(d) Notification to Applicant.
19
(1) If an application for a new license is approved, the Chief shall notify the applicant in
20
writing that the application has been approved. The notice shall contain any conditions
21
placed on the approval and any further requirements the applicant must meet before a
22
license will be issued.
23
(2) If an application for a new license is denied, the Chief shall notify the applicant in
24
writing that the application has been denied. The notice shall contain a short and plain
25
statement of the reason for the denial and a statement that the applicant may appeal the
26
denial as set forth in SRC Chapter 20J.
27
(e) Issuance; Effective Date.
28
(1) After notice to the applicant, and upon payment of all fees associated with the
29
license, the Chief shall issue the license.
30
(2) A license is effective as of the date of issuance.
ORDINANCE 8-16 – Page 5
COUNCIL OF THE CITY OF SALEM, OREGON
1
31A.050. Renewal of License.
2
(a) Renewals Permitted. A license may be renewed. An application to renew an existing
3
license shall be submitted not less than thirty days prior to the expiration date of the existing
4
license and shall be accompanied by any non-refundable application fee. If an application to
5
renew an existing license is not submitted within such thirty day period, a new license is
6
required.
7
(b) Application. An application to renew an existing license shall include the following
8
information, in addition to any other information specifically required elsewhere in this Chapter:
9
(1) The applicant’s name;
10
(2) A copy of the license for which renewal is sought;
11
(3) A list of any and all crimes for which the applicant has been convicted within the
12
twelve months preceding the date of the renewal application, together with the dates and
13
places of such convictions;
14
(4) Identification and correction of any change in the information submitted in the
15
application for the existing license;
16
(5) The signature of the applicant, if a natural person, or otherwise the signature of an
17
authorized agent of the applicant, if the applicant is other than a natural person.
18
(c) Review of Application.
19
(1) No application to renew an existing license shall be deemed complete until all of the
20
information required by subsection (b) of this section has been provided, and the
21
applicant has paid all fees associated with the application.
22
(2) Upon receipt of an application to renew an existing license, the Chief may make such
23
investigation as the Chief deems necessary to determine whether the Facility is in
24
compliance with all federal, state, and local laws and regulations, except that a license
25
renewal application may not be denied solely because marijuana is illegal under federal
26
law.
27
(d) Criteria for Renewal of License. An application to renew an existing license shall be
28
granted unless:
29
(1) The applicant made an untrue or incomplete statement on, or in connection with, the
30
application to renew; provided, that if such untrue or incomplete statement is the result of
ORDINANCE 8-16 – Page 6
COUNCIL OF THE CITY OF SALEM, OREGON
1
excusable neglect, the applicant may resubmit an application to renew an existing license
2
within the times provided in this section.
3
(2) The applicant no longer meets all requirements of federal, state, and local laws and
4
regulations, including, but not limited to, other professional licensing regulations and
5
land use regulations, except that a license renewal application may not be denied solely
6
because marijuana is illegal under federal law.
7
(3) Any person required to submit to a criminal background check as required by SRC
8
31.090 fails the criminal background check.
9
(4) The applicant has an outstanding warrant for his or her arrest.
10
(5) The applicant has maintained or conducted the licensed business or vocation in a
11
manner contrary to the terms of the existing license or contrary to any provision of this
12
Chapter.
13
(6) Any other license or permit required to engage in the business or vocation has been
14
denied, suspended, revoked, or cancelled.
15
(7) The applicant has engaged in any behavior or activity that would endanger public
16
health, safety and welfare.
17
(e) Notification to Applicant.
18
(1) If an application to renew an existing license is approved, the Chief shall notify the
19
applicant in writing that the renewal has been approved. The written notice shall contain
20
any conditions placed on the renewal and any further requirements the applicant must
21
meet as a condition of renewal.
22
(2) If an application to renew an existing license is denied, the Chief shall notify the
23
applicant in writing that the renewal has been denied. The written notice shall contain a
24
statement of the reasons for the denial and statement that the applicant may appeal the
25
denial as set forth in SRC Chapter 20J.
26
(f) Issuance; Effective Date.
27
(1) After notice to the applicant, and upon payment of all renewal fees, the Chief shall
28
issue the renewal license.
29
(2) A renewed license is effective as of the expiration date of the prior license.
30
31A.055. License Revocation.
ORDINANCE 8-16 – Page 7
COUNCIL OF THE CITY OF SALEM, OREGON
1
(a) A license issued pursuant to this Chapter shall be revoked if:
2
(1) The licensee, principal, employee, volunteer or person with a financial interest in the
3
facility fails to allow inspection or examination of the facility, or examination of records,
4
books, surveillance videotape or digital recordings as required in this Chapter.
5
(b) A license issued pursuant to this Chapter may be revoked if:
6
(1) The licensee fails to comply with any of the requirements of this Chapter of the
7
license.
8
(2) The licensed activity is being conducted in a manner that presents an immediate
9
danger to property or public health, safety or welfare.
10
(3) The licensee or principal of licensee is arrested or convicted of any felony or drug
11
related misdemeanor.
12
(4) The Oregon Health Authority suspends or revokes the registration of the medical
13
marijuana facility to which the license pertains.
14
(5) The licensee is doing business in violation of any applicable federal, state, or local
15
law or regulation, except that a license for a medical marijuana facility may not be
16
revoked solely because marijuana is illegal under federal law.
17
(6) The licensee provides or has provided false or misleading material information or has
18
failed to disclose a material fact on the application for the license or in connection with
19
the licensed activity.
20
(7) The licensee has been assessed a civil penalty in connection with the licensed
21
activity and fails to pay the penalty within the time required.
22
(8) Federal or state statutes, regulations, or guidelines are modified, changed, enforced,
23
or interpreted in such a way by state or federal law enforcement officials as to prohibit
24
operation of the facility.
25
(c) The Chief shall provide written notice of revocation to the licensee. The written notice shall
26
state the basis for revocation of the license and shall inform the licensee of the right to appeal the
27
revocation as set forth in SRC Chapter 20J.
28
(d) The notice shall be given at least fifteen business days before the revocation becomes
29
effective. If the licensee corrects the basis for the revocation within the fifteen business day
30
period, the Chief may discontinue the revocation proceedings.
ORDINANCE 8-16 – Page 8
COUNCIL OF THE CITY OF SALEM, OREGON
1
(e) A licensee who has had his or her license revoked may, after ninety calendar days from the
2
date of revocation, apply for a new license in the manner provided by this Chapter. A licensee
3
who has had his or her license revoked two times within any consecutive twelve-month period
4
shall be ineligible to apply for a license for two years from the date of the last revocation.
5
31A.060. Civil Enforcement.
6
(a) Civil Penalty. Any person who fails to comply with the requirements of this Chapter or the
7
terms of a license issued hereunder, who undertakes an activity regulated by this Chapter without
8
first obtaining a license, or who fails to comply with a cease and desist order issued pursuant to
9
this Chapter shall be subject to a civil penalty as provided in SRC Chapter 20J, not to exceed
10
$2,000 per violation. Each day that a violation continues shall constitute a separate violation.
11
(b) Civil Penalties Against Agents. Any person who acts as the agent of, or otherwise assists,
12
a person who engages in an activity which would be subject to a civil penalty, may likewise be
13
subject to a civil penalty.
14
(c) Abatement. Any building or structure established, operated, or maintained contrary to this
15
Chapter is a public nuisance and may be abated as provided in SRC Chapter 50.
16
(d) Appeals. Any person who is a party to a decision of the Chief, or any administrative
17
enforcement order issued by the City pursuant to this section, may appeal the decision or
18
enforcement order to the Hearings Officer by following the process set forth in SRC Chapter 20J.
19
The hearing on the appeal shall follow the contested case procedures set forth in SRC 20J.240
20
through 20J.430.
21
(e) Proceedings by City Attorney. The City Attorney, upon request of the Chief, may institute
22
any legal proceedings in circuit court necessary to enforce the provisions of this Chapter.
23
Proceedings may include, but are not limited to, injunctions to prohibit the continuance of the
24
licensed activity, and any use or occupation of any building or structure used in violation of this
25
Chapter.
26
(f) Remedies not Exclusive. The remedies provided in this Chapter are cumulative and not
27
mutually exclusive and are in addition to any other rights, remedies, and penalties available
28
under any other provision of law.
29
///
30
///
ORDINANCE 8-16 – Page 9
COUNCIL OF THE CITY OF SALEM, OREGON
1
31A.065. Unlawful Failure to Obtain License.
2
(a) It shall be unlawful for a person to engage in any business or vocation for which a license is
3
required by this Chapter without first obtaining a license therefor.
4
(b) A violation of this section is a misdemeanor.
5
(c) Upon conviction for the above offense, the court may in addition to any other sanction or
6
condition of probation authorized by law, prohibit the defendant from operating, being
7
employed, volunteering or having a financial interest in the medical marijuana facility.
8
31A.070. Unlawful Activity by Licensee.
9
(a) It shall be unlawful for a licensee to engage in a licensed activity, or to allow or permit the
10
licensee's employees or agents to engage in the licensed activity, in violation of any applicable
11
standard in the Chapter, or of any license issued pursuant to this Chapter.
12
(b) A violation of this section is a misdemeanor.
13
(c) Upon conviction for the above offense, the court may in addition to any other sanction or
14
condition of probation authorized by law, prohibit the defendant from operating, being
15
employed, volunteering or having a financial interest in the medical marijuana facility.
16
31A.075. Unlawful Engaging in Licensed Activity While License is Suspended or Revoked.
17
(a) It shall be unlawful for a licensee to knowingly engage in a licensed activity, or to allow the
18
licensee's employees or agents to engage in a licensed activity, when the license has been
19
suspended or revoked pursuant to this Chapter.
20
(b) A violation of this section is a misdemeanor.
21
(c) Upon conviction for the above offense, the court may in addition to any other sanction or
22
condition of probation authorized by law, prohibit the defendant from operating, being
23
employed, volunteering or having a financial interest in the medical marijuana facility.
24
31A.080. Standards of Operation. A medical marijuana facility must comply with the
25
following requirements, in addition to any other state or local requirements:
26
(a) Registration in good standing with the Oregon Health Authority as a medical marijuana
27
facility pursuant to state law, and compliance with all applicable laws and regulations
28
administered by the Oregon Health Authority for Facilities.
29
(b) The facility must meet applicable laws and regulations, including, but not limited to, the
30
building and fire codes and the Unified Development Code.
ORDINANCE 8-16 – Page 10
COUNCIL OF THE CITY OF SALEM, OREGON
1
(c) The facility must not be co-located on the same unit of land or within the same building as a
2
tobacco social or smoking club or as a marijuana social or smoking club.
3
(d) A facility may not be operated as a home occupation.
4
(e) A facility may not have a walk-up window or a drive-through.
5
(f) Operating hours must be no earlier than 10:00 a.m. or later than 8:00 p.m. on the same day.
6
(g) All persons allowed within the facility, except for the Chief, the Chief’s designee, or other
7
members of law enforcement, must be at least 21 years of age, except that a person under 21
8
years of age who possess a valid registry identification card may enter a facility for the sole
9
purpose of procuring the person’s medical marijuana
10
(h) Facilities must maintain adequate outdoor lighting over each exterior exit.
11
(i) The facility must utilize an air filtration and ventilation system that reasonably confines all
12
odors associated with the facility to the facility premises.
13
(j) All products containing medical marijuana intended to be ingested (i.e. edibles) must be
14
labeled with the product’s serving size and the amount of tetrahydrocannabinol in each serving.
15
(k) The facility must not manufacture or produce any extracts, oils, resins, or similar derivatives
16
of marijuana on-site and must not use open flames or gases in the preparation of any products.
17
(l) The facility must provide for secure disposal of marijuana remnants or by-products;
18
marijuana remnants or by-products shall not be placed within the facility’s exterior refuse
19
containers.
20
(m) All applicants, principals, persons with a financial interest in a facility, regardless of
21
whether they intend to handle marijuana, shall possess a valid marijuana handler permit issued
22
by the Cityemployees and volunteers shall pass a criminal background check performed by the
23
Salem Police Department.
24
(n) License holders shall provide written notice to the Chief at least seven days prior to
25
undertaking any improvements to a facility that require a building permit.
26
31A.085. Location.
27
(a) A facility may only operate where otherwise permitted by the applicable land use
28
regulationsretail use is permitted.
29
(b) A facility shall not be located:
30
(1) In the Central Business Zoning District.
ORDINANCE 8-16 – Page 11
COUNCIL OF THE CITY OF SALEM, OREGON
1
(2) Within a residence or mixed-use property that includes a residence.
2
(3) Within:
3
(A) 1000 feet of another licensedfacility licensed by this Chapter or SRC Chapter
4
31B (Recreational Marijuana).
5
(B) 1000 feet from a public or private elementary, secondary or career school, or
6
Head Start facility, including any parking lot appurtenant thereto and any property
7
used by the school where minors and students routinely congregate.
8
(C) 500 feet of a public park or public playground. Public park means all park
9
land designated in the Salem Parks System Master Plan that is open to the public.
10
Public playground means any outdoor facility (including any parking lot
11
appurtenant thereto) intended for recreation, open to the public, and with any
12
portion thereof containing three or more separate apparatus intended for the
13
recreation of children including, but not limited to, sliding boards, swing sets, and
14
teeterboards.
15
(D) 100 feet of a residentially-zoned property unless the location of the facility
16
abuts a Major Arterial or Parkway, as those terms are defined by the Salem
17
Transportation System Plan, or
18
(F) 100 feet of a certified child care facility as determined by the Oregon
19
Department of Human Services.
20
(c) For purposes of subsection (b), all distances shall be measured from the property line of the
21
affected property, (for example; a school) to the closest point of the space occupied by the
22
facility, except that distances between facilities licensed by this Chapter or SRC Chapter 31B
23
shall be measured from the closest point of the space occupied by each facility.
24
(d) A change in use (including a rezone) to a neighboring property to a use identified in this
25
section after a license has been issued for a facility shall not result in the facility being in
26
violation of this section, nor shall it be grounds to refuse to renew a license.
27
31A.090. Marijuana Handler PermitCriminal Background Checks.
28
(a) All applicants, principals, employees, volunteers, and persons with a financial interest in the
29
facility must obtain and maintain a marijuana handler permit issued by the Citypass a criminal
30
background check performed by the Chief.
ORDINANCE 8-16 – Page 12
COUNCIL OF THE CITY OF SALEM, OREGON
1
(b) Upon submittal of a complete application and payment of the applicable fe, the Chief shall
2
issue a marijuana handler permit upon the successful completion of a criminal background check
3
on the applicantAll employees or volunteers at a facility must, prior to beginning employment or
4
volunteering, pass a criminal background check as provided in this section.
5
(c) A conviction for any felony or drug related misdemeanor within 15 years of the date of the
6
application for a license, or release from incarceration for any felony within 10 years of the date
7
of application for a license, shall result in a failure of the criminal background check.
8
(d) A marijuana handler permit is valid for one year from the date of issuance, and may be
9
renewed upon submission of a renewal application containing the information required under
10
SRC 31A.050(b). The Chief shall issue a renewal of the permit so long as the applicant
11
continues to qualify as provided by this section.
12
31A.095. Inspection.
13
(a) Facilities shall be open for inspection and examination by any member of law enforcement
14
police officer or Fire Code Official of the City during all operating hours.
15
(b) The Chief may investigate all applicants, principals, employees, volunteers, and persons
16
with a financial interest in the facility, and may inspect licensed facilities. Nothing in this
17
subsection is intended, or shall be construed, to limit the authority of the Chief, the Chief’s
18
designee, or members of the Salem Police Department from investigating crimes or otherwise
19
performing their duties as assigned.
20
31A.100. Examination of Books, Records, and Premises.
21
(a) To determine compliance with the requirements of any and all applicable laws and
22
regulations, the Chief, or the Chief’s designee, may examine a facility, including wastewater
23
from the facility, and any and all facility financial, operational, and facility information,
24
including, but not limited to, video surveillance recordings, books, papers, payroll reports, and
25
state and federal income tax returns. Every facility is required to furnish to the Chief the means
26
and opportunity for making such examinations.
27
(b) The Chief may require an audit to be made of the books of account and records of a facility
28
on such occasions as the Chief may consider necessary. Such audit may be made by an auditor to
29
be selected by the Chief that shall likewise have access to all books and records of the facility.
30
ORDINANCE 8-16 – Page 13
COUNCIL OF THE CITY OF SALEM, OREGON
1
(c) As part of investigation of a crime or a violation of this Chapter which law enforcement
2
officials reasonably suspect has taken place on the facility’s premises, the Chief or his or her
3
designee shall be allowed to view surveillance videotapes or digital recordings at any reasonable
4
time.
5
(d) Without reducing, limiting, or waiving any provision of this Chapter, the Chief shall have
6
the same access to the facility, its records, and its operations, as allowed to state inspectors.
7
31A.105. Confidentiality. Except as otherwise required by law, it shall be unlawful for the City,
8
any officer, employee, or agent to divulge, release, or make known in any manner any financial
9
or employee information submitted or disclosed to the City under the terms of this Chapter.
10
Nothing in this section shall prohibit:
11
(a) The disclosure of licensee names and facility addresses.
12
(b) The disclosure of general statistics in a form which would prevent identification of financial
13
information regarding a facility.
14
(c) The presentation of evidence to a court, or other tribunal having jurisdiction in the
15
prosecution of any criminal or civil claim, by the City.
16
(d) The disclosure of information upon request of a local, state, or federal law enforcement
17
official.
18
(e) The disclosure of information when such disclosure is requiredordered under the Oregon
19
Public Records Law.
20
Section 2. SRC Chapter 31B is hereby added to and made a part of the Salem Revised Code,
21
Title III, Chapter 31B Recreational Marijuana, as follows:
22
31B.001. Purpose. The purpose of this Chapter is to create a licensing and regulatory program
23
for recreational marijuana retail facilities that protects the public health, safety, and welfare.
24
31B.005. Definitions. Except as the context otherwise specifically requires, as used in this
25
Chapter, the following mean:
26
(a) Career school has the meaning as defined on Oregon Administrative Rule 333-008-1010(5).
27
(b) Chief means the Chief of the Salem Police Department or the Chief’s designee.
28
(c) Elementary school has the meaning as defined in Oregon Administrative Rule 333-008-
29
1010(10).
30
ORDINANCE 8-16 – Page 14
COUNCIL OF THE CITY OF SALEM, OREGON
1
(d) Fire Code Official means the Fire Chief of the Salem Fire Department or the Fire Chief’s
2
designee.
3
(e) Head Start means an early childhood education program facility authorized by the United
4
States Department of Health and Human Services.
5
(f)License means the written form of permission required in order to operate a recreational
6
marijuana retail facility, and is not intended to be an endorsement of a particular business or
7
vocation or licensee.
8
(g) Licensee means a person engaged in the business of furnishing or operating a business
9
defined by this Chapter, whether upon contract or by offering such service to the public
10
generally.
11
(h) Marijuana has the meaning given that term in ORS 475B.015 as may be amended.
12
(i) Marijuana item(s) means marijuana, cannabinoid products, cannabinoid concentrates and
13
cannabinoid extracts.
14
(j) Medical marijuana means marijuana used for the exclusive benefit of a person to mitigate the
15
symptoms or effects of the person’s debilitating medical condition.
16
(k) Medical marijuana facility, or “facility,” means a facility that is registered by the Oregon
17
Health Authority, and licensed by the City, and that sells, distributes, transmits, gives, dispenses,
18
or otherwise provides medical marijuana to a natural person with a registry identification card.
19
A “facility” includes all premises, buildings, curtilage, or other structures used to accomplish the
20
storage, distribution and dissemination of marijuana.
21
(l) Person means any natural person, partnership, corporation, Limited Liability Company,
22
government entity, association or other entity in law or fact.
23
(m) Person or persons with a financial interest means any person that has loaned or given money
24
or real or personal property to the applicant, or principal of the applicant for use by the proposed
25
facility within the preceding year.
26
(n) Principal means members, partners, or corporate officers, and all stockholders holding more
27
than ten percent of the voting stock for any applicant who is not a natural person.
28
(o) Recreational marijuana retail facility (Facility) means a facility that is registered by the
29
Oregon Liquor Control Commission (OLCC) and that sells, distributes, transmits, gives,
30
dispenses, or otherwise provides marijuana items to a person. A “facility” includes all premises,
ORDINANCE 8-16 – Page 15
COUNCIL OF THE CITY OF SALEM, OREGON
1
buildings, curtilage, or other structures used to accomplish the storage, distribution and
2
dissemination of marijuana.
3
31B.010. Administration; Rulemaking.
4
(a) The Chief shall administer and enforce the provisions of this Chapter, and shall have the
5
authority to render written and oral interpretations, and to adopt administrative rules and
6
procedures necessary for its proper administration and enforcement.
7
(b) The Chief may investigate any applicant for a license to ensure compliance with the
8
requirements of this Chapter. The Chief may require, as part of any application for a license, that
9
any premises sought to be licensed be inspected to ensure compliance with the requirements of
10
this Chapter. The Chief may require the fingerprinting of any natural person whose name is
11
required to be furnished in connection with any application, may require the submission of a
12
criminal history including, but not limited to, an FBI Identification Record, and may require an
13
applicant to provide such additional information that the Chief determines is necessary to
14
evaluate the application. The applicant is responsible for any fees or costs associated with the
15
criminal background check.
16
31B.015. License Required. A license issued pursuant to this Chapter shall be required for any
17
person engaging in the operation of a recreational marijuana retail facility.
18
31B.020. License Fees; Proration.
19
(a) Fees for licenses, or renewals thereof, required by this Chapter shall be set by resolution of
20
the City Council in an amount not to exceed $2,000.00.
21
31B.025. License Term and Renewal.
22
(a) A license shall be valid from the date of issuance for a period of one year.
23
(b) A license may be renewed for additional one year terms as provided by this Chapter.
24
31B.030. Transferability. Licenses issued under this Chapter shall not be transferred to any
25
other person.
26
31B.035. Display of License. Upon request, the licensee shall show the license to any person
27
with whom the licensee is dealing as part of the licensed activity or to the Chief or the Chief’s
28
designee.
29
31B.040. License Requirements. In addition to any other requirement set forth in this Chapter,
30
each licensee shall:
ORDINANCE 8-16 – Page 16
COUNCIL OF THE CITY OF SALEM, OREGON
1
(a) Notify the Chief in writing within ten business days of any change in the material
2
information related to the license including, but not limited to, change of name, address,
3
telephone number, additional employees or volunteers, additional principals or persons with a
4
financial interest, criminal history, or registered agent. No new principal may become involved
5
in a licensed business until an application is submitted to and approved by the Chief for that new
6
principal. If a new principal does become involved in a licensed business prior to approval, the
7
Chief may revoke the license pursuant to the procedures set forth in SRC 31B.045.
8
(b) Advertise for business only in the name in which a license is issued.
9
31B.045. New Licenses.
10
(a) Application. An application for a new license shall include the following information, in
11
addition to any other information specifically required elsewhere in this Chapter:
12
(1) The applicant’s name and address;
13
(2) The names and residence addresses of all principals of the applicant;
14
(3) The names and residence addresses of all persons with a financial interest that have
15
loaned or given money or real or personal property to the applicant, or principal of the
16
applicant for use by the proposed facility within the preceding year;
17
(4) The address to which mail concerning the license may be sent;
18
(5) All business addresses maintained or to be maintained by the applicant in the state of
19
Oregon;
20
(6) Submission of a complete application for a marijuana handler card from the
21
applicant, and all principals, and persons with a financial interest in the proposed Facility;
22
(7) The names of at least three natural persons who can give an informed account of the
23
business and moral character of the applicant and principals;
24
(8) The signature of the applicant, if a natural person, or otherwise the signature of an
25
authorized agent of the applicant, if the applicant is other than a natural person;
26
(9) The address of the proposed facility;
27
(10) If the applicant is leasing the property where the facility will be located, the name
28
and address of the owner, landlord, and property manager of the location of the proposed
29
facility;
30
ORDINANCE 8-16 – Page 17
COUNCIL OF THE CITY OF SALEM, OREGON
1
(11) A complete description of the proposed accounting and inventory systems for the
2
facility;
3
(12) Certification that the proposed facility has obtained a license to sell marijuana items
4
at retail from the OLCC;
5
(13) Other information deemed reasonably necessary by the Chief to complete review of
6
the application.
7
(b) Review of Application.
8
(1) No application shall be deemed complete until all of the information required by
9
subsection (a) of this section has been provided and the applicant has paid all fees
10
associated with the license, including a non-refundable application fee.
11
(2) Upon receipt of a complete application, the Chief shall conduct such investigation as
12
the Chief deems necessary to determine whether the application meets the qualifications
13
for the license and whether statements made in the application are true.
14
(c) Issuance of New License. A new license shall be granted to the applicant unless:
15
(1) The applicant made an untrue or incomplete statement on, or in connection with, the
16
application for the license; provided, that if such untrue or incomplete statement was the
17
result of excusable neglect, the applicant may resubmit an application in which such
18
defect is corrected.
19
(2) The applicant fails to meet all requirements of federal, state and local laws and
20
regulations, including, but not limited to, other permitting or licensing requirements and
21
land use regulations, except that a license application for a facility will not be denied
22
solely because marijuana is illegal under federal law.
23
(3) The applicant, principal, or person with a financial interest in the facility fails the
24
criminal background check as required by SRC 31B.090.
25
(4) The applicant, principal, or person with a financial interest in the Facility has an
26
outstanding warrant for his or her arrest.
27
(5) After notice to the applicant, and upon payment of all fees associated with the
28
license, the Chief shall issue the license.
29
(6) A license is effective as of the date of issuance and shall expire, unless renewed, one
30
year from the date of issuance.
ORDINANCE 8-16 – Page 18
COUNCIL OF THE CITY OF SALEM, OREGON
1
(d) Notification to Applicant.
2
(1) If an application for a new license is approved, the Chief shall notify the applicant in
3
writing that the application has been approved. The notice shall contain any conditions
4
placed on the approval and any further requirements the applicant must meet before a
5
license will be issued.
6
(2) If an application for a new license is denied, the Chief shall notify the applicant in
7
writing that the application has been denied. The notice shall contain a short and plain
8
statement of the reason for the denial and a statement that the applicant may appeal the
9
denial as set forth in SRC Chapter 20J.
10
31B.050. Renewal of License.
11
(a) Renewals Permitted. A license may be renewed. An application to renew an existing
12
license shall be submitted not less than thirty days prior to the expiration date of the existing
13
license and shall be accompanied by any non-refundable application fee. If an application to
14
renew an existing license is not submitted within such thirty day period, a new license is
15
required.
16
(b) Application. An application to renew an existing license shall include the following
17
information, in addition to any other information specifically required elsewhere in this Chapter:
18
(1) The applicant’s name;
19
(2) A copy of the license for which renewal is sought;
20
(3) A list of any and all crimes for which the applicant has been convicted within the
21
twelve months preceding the date of the renewal application, together with the dates and
22
places of such convictions;
23
(4) Identification and correction of any change in the information submitted in the
24
application for the existing license;
25
(5) The signature of the applicant, if a natural person, or otherwise the signature of an
26
authorized agent of the applicant, if the applicant is other than a natural person.
27
(c) Review of Application.
28
(1) No application to renew an existing license shall be deemed complete until all of the
29
information required by subsection (b) of this section has been provided, and the
30
applicant has paid all fees associated with the application.
ORDINANCE 8-16 – Page 19
COUNCIL OF THE CITY OF SALEM, OREGON
1
(2) Upon receipt of an application to renew an existing license, the Chief may make such
2
investigation as the Chief deems necessary to determine whether the Facility is in
3
compliance with all federal, state, and local laws and regulations, except that a license
4
renewal application may not be denied solely because marijuana is illegal under federal
5
law.
6
(d) Criteria for Renewal of License. An application to renew an existing license shall be
7
granted unless:
8
(1) The applicant made an untrue or incomplete statement on, or in connection with, the
9
application to renew; provided, that if such untrue or incomplete statement is the result of
10
excusable neglect, the applicant may resubmit an application to renew an existing license
11
within the times provided in this section.
12
(2) The applicant no longer meets all requirements of federal, state, and local laws and
13
regulations, including, but not limited to, other professional licensing regulations and
14
land use regulations, except that a license renewal application may not be denied solely
15
because marijuana is illegal under federal law.
16
(3) Any person required to submit to a criminal background check as required by SRC
17
31B.090 fails the criminal background check.
18
(4) The applicant has an outstanding warrant for his or her arrest.
19
(5) The applicant has maintained or conducted the licensed business or vocation in a
20
manner contrary to the terms of the existing license or contrary to any provision of this
21
Chapter.
22
(6) Any other license or permit required to engage in the business or vocation has been
23
denied, suspended, revoked, or cancelled.
24
(7) The applicant has engaged in any behavior or activity that would endanger public
25
health, safety and welfare.
26
(e) Notification to Applicant.
27
(1) If an application to renew an existing license is approved, the Chief shall notify the
28
applicant in writing that the renewal has been approved. The written notice shall contain
29
any conditions placed on the renewal and any further requirements the applicant must
30
meet as a condition of renewal.
ORDINANCE 8-16 – Page 20
COUNCIL OF THE CITY OF SALEM, OREGON
1
(2) If an application to renew an existing license is denied, the Chief shall notify the
2
applicant in writing that the renewal has been denied. The written notice shall contain a
3
statement of the reasons for the denial and statement that the applicant may appeal the
4
denial as set forth in SRC Chapter 20J.
5
(f) Issuance; Effective Date.
6
(1) After notice to the applicant, and upon payment of all renewal fees, the Chief shall
7
issue the renewal license.
8
(2) A renewed license is effective as of the expiration date of the prior license.
9
10
31B.055. License Revocation.
(a) A license issued pursuant to this Chapter shall be revoked if:
11
(1) The licensee, principal, employee, volunteer or person with a financial interest in the
12
facility fails to allow inspection or examination of the facility, or examination of records,
13
books, surveillance videotape or digital recordings as required in this Chapter.
14
(b) A license issued pursuant to this Chapter may be revoked if:
15
(1) The licensee fails to comply with any of the requirements of this Chapter of the
16
license.
17
(2) The licensed activity is being conducted in a manner that presents an immediate
18
danger to property or public health, safety or welfare.
19
(3) The licensee or principal of licensee is arrested or convicted of any felony or drug
20
related misdemeanor.
21
(4) The OLCC suspends or revokes the registration of the Facility to which the license
22
pertains.
23
(5) The licensee is doing business in violation of any applicable federal, state, or local
24
law or regulation, except that a license for a Facility may not be revoked solely because
25
marijuana is illegal under federal law.
26
(6) The licensee provides or has provided false or misleading material information or has
27
failed to disclose a material fact on the application for the license or in connection with
28
the licensed activity.
29
(7) The licensee has been assessed a civil penalty in connection with the licensed
30
activity and fails to pay the penalty within the time required.
ORDINANCE 8-16 – Page 21
COUNCIL OF THE CITY OF SALEM, OREGON
1
(8) Federal or state statutes, regulations, or guidelines are modified, changed, enforced,
2
or interpreted in such a way by state or federal law enforcement officials as to prohibit
3
operation of the facility.
4
(c) The Chief shall provide written notice of revocation to the licensee. The written notice shall
5
state the basis for revocation of the license and shall inform the licensee of the right to appeal the
6
revocation as set forth in SRC Chapter 20J.
7
(d) The notice shall be given at least fifteen business days before the revocation becomes
8
effective. If the licensee corrects the basis for the revocation within the fifteen business day
9
period, the Chief may discontinue the revocation proceedings.
10
(e) A licensee who has had his or her license revoked may, after ninety calendar days from the
11
date of revocation, apply for a new license in the manner provided by this Chapter. A licensee
12
who has had his or her license revoked two times within any consecutive twelve-month period
13
shall be ineligible to apply for a license for two years from the date of the last revocation.
14
31B.060. Civil Enforcement.
15
(a) Civil Penalty. Any person who fails to comply with the requirements of this Chapter or the
16
terms of a license issued hereunder, who undertakes an activity regulated by this Chapter without
17
first obtaining a license, or who fails to comply with a cease and desist order issued pursuant to
18
this Chapter shall be subject to a civil penalty as provided in SRC Chapter 20J, not to exceed
19
$2,000 per violation. Each day that a violation continues shall constitute a separate violation.
20
(b) Civil Penalties Against Agents. Any person who acts as the agent of, or otherwise assists,
21
a person who engages in an activity which would be subject to a civil penalty, may likewise be
22
subject to a civil penalty.
23
(c) Abatement. Any building or structure established, operated, or maintained contrary to this
24
Chapter is a public nuisance and may be abated as provided in SRC Chapter 50.
25
(d) Appeals. Any person who is a party to a decision of the Chief, or any administrative
26
enforcement order issued by the City pursuant to this section, may appeal the decision or
27
enforcement order to the Hearings Officer by following the process set forth in SRC Chapter 20J.
28
The hearing on the appeal shall follow the contested case procedures set forth in SRC 20J.240
29
through 20J.430.
30
ORDINANCE 8-16 – Page 22
COUNCIL OF THE CITY OF SALEM, OREGON
1
(e) Proceedings by City Attorney. The City Attorney, upon request of the Chief, may institute
2
any legal proceedings in circuit court necessary to enforce the provisions of this Chapter.
3
Proceedings may include, but are not limited to, injunctions to prohibit the continuance of the
4
licensed activity, and any use or occupation of any building or structure used in violation of this
5
Chapter.
6
(f) Remedies not Exclusive. The remedies provided in this Chapter are cumulative and not
7
mutually exclusive and are in addition to any other rights, remedies, and penalties available
8
under any other provision of law.
9
31B.065. Unlawful Failure to Obtain License.
10
(a) It shall be unlawful for a person to engage in any business or vocation for which a license is
11
required by this Chapter without first obtaining a license therefor.
12
(b) A violation of this section is a misdemeanor.
13
(c) Upon conviction for the above offense, the court may in addition to any other sanction or
14
condition of probation authorized by law, prohibit the defendant from operating, being
15
employed, volunteering or having a financial interest in the recreational marijuana retail facility.
16
31B.070. Unlawful Activity by Licensee.
17
(a) It shall be unlawful for a licensee to engage in a licensed activity, or to allow or permit the
18
licensee's employees or agents to engage in the licensed activity, in violation of any applicable
19
standard in the Chapter, or of any license issued pursuant to this Chapter.
20
(b) A violation of this section is a misdemeanor.
21
(c) Upon conviction for the above offense, the court may in addition to any other sanction or
22
condition of probation authorized by law, prohibit the defendant from operating, being
23
employed, volunteering or having a financial interest in the recreational marijuana retail facility.
24
31B.075. Unlawful Engaging in Licensed Activity While License is Suspended or Revoked.
25
(a) It shall be unlawful for a licensee to knowingly engage in a licensed activity, or to allow the
26
licensee's employees or agents to engage in a licensed activity, when the license has been
27
suspended or revoked pursuant to this Chapter.
28
(b) A violation of this section is a misdemeanor.
29
30
ORDINANCE 8-16 – Page 23
COUNCIL OF THE CITY OF SALEM, OREGON
1
(c) Upon conviction for the above offense, the court may in addition to any other sanction or
2
condition of probation authorized by law, prohibit the defendant from operating, being
3
employed, volunteering or having a financial interest in the recreational marijuana retail facility.
4
31B.080. Standards of Operation. A recreational marijuana retail facility must comply with
5
the following requirements, in addition to any other state or local requirements:
6
(a) Registration in good standing with the OLCC pursuant to state law, and compliance with all
7
applicable laws and regulations administered by the OLCC for facilities.
8
(b) The facility must meet applicable laws and regulations, including, but not limited to, the
9
building and fire codes and the Unified Development Code.
10
(c) The facility must not be co-located on the same unit of land or within the same building as a
11
tobacco social or smoking club or as a marijuana social or smoking club.
12
(d) A facility may not be operated as a home occupation.
13
(e) A facility may not have a walk-up window or a drive-through.
14
(f) Operating hours must be no earlier than 10:00 a.m. or later than 8:00 p.m. on the same day.
15
(g) All persons allowed within a facility, except for the Chief, the Chief’s designee, or other
16
members of law enforcement, must be at least 21 years of age.
17
(h) Facilities must maintain adequate outdoor lighting over each exterior exit.
18
(i) The facility must utilize an air filtration and ventilation system that reasonably confines all
19
odors associated with the facility to the facility premises.
20
(j) All products containing marijuana items intended to be ingested (i.e. edibles) must be labeled
21
with the product’s serving size and the amount of tetrahydrocannabinol in each serving.
22
(k) The facility must not manufacture or produce any extracts, oils, resins, or similar derivatives
23
of marijuana on-site and must not use open flames or gases in the preparation of any products.
24
(l) The facility must provide for secure disposal of marijuana remnants or by-products;
25
marijuana remnants or by-products shall not be placed within the facility’s exterior refuse
26
containers.
27
(m) All applicants, principals, persons with a financial interest, employees and volunteers in a
28
facility, regardless of whether they intend to handle marijuana, shall possess a valid marijuana
29
handler permit issued by the City.
30
ORDINANCE 8-16 – Page 24
COUNCIL OF THE CITY OF SALEM, OREGON
1
(n) License holders shall provide written notice to the Chief at least seven days prior to
2
undertaking any improvements to a facility that require a building permit.
3
31B.085. Location.
4
(a) A facility may only operate where otherwise permitted by the applicable land use
5
regulations.
6
(b) A facility shall not be located:
7
(1) In the Central Business Zoning District.
8
(2) Within a residence or mixed-use property that includes a residence.
9
(3) Within:
10
(A) 1000 feet of another facility licensed by this Chapter or SRC Chapter 31A
11
(Medical Marijuana).
12
(B) 1000 feet from a public or private elementary, secondary or career school, or
13
Head Start facility, including any parking lot appurtenant thereto, or any property
14
used by the school where minors and students routinely congregate.
15
(C) 500 feet of a public park or public playground. Public park means all park
16
land designated in the Salem Parks System Master Plan that is open to the public.
17
Public playground means any outdoor facility (including any parking lot
18
appurtenant thereto) intended for recreation, open to the public, and with any
19
portion thereof containing three or more separate apparatus intended for the
20
recreation of children including, but not limited to, sliding boards, swing sets, and
21
teeterboards.
22
(D) 100 feet of a residentially-zoned property unless the location of the facility
23
abuts a Major Arterial or Parkway, as those terms are defined by the Salem
24
Transportation System Plan, or
25
(F) 100 feet of a certified child care facility as determined by the Oregon
26
Department of Human Services.
27
(c) For purposes of subsection (b), all distances shall be measured from the property line of the
28
affected property, (for example; a school) to the closest point of the space occupied by the
29
facility, except that distances between facilities licensed by this Chapter or SRC Chapter 31A
30
shall be measured from the closest point of the space occupied by each facility.
ORDINANCE 8-16 – Page 25
COUNCIL OF THE CITY OF SALEM, OREGON
1
(d) A change in use (including a rezone) to a neighboring property to a use identified in this
2
section after a license has been issued for a facility shall not result in the facility being in
3
violation of this section, nor shall it be grounds to refuse to renew a license.
4
31B.090. Marijuana Handler Permit.
5
(a) All applicants, principals, employees, volunteers, and persons with a financial interest in the
6
facility must obtain and maintain a marijuana handler permit issued by the City.
7
(b) Upon submittal of a complete application and payment of the applicable fee, the Chief shall
8
issue a marijuana handler permit upon the successful completion of a criminal background check
9
on the applicant.
10
(c) A conviction for any felony or drug related misdemeanor within 15 years of the date of the
11
application for a license, or release from incarceration for any felony within 10 years of the date
12
of application for a license, shall result in a failure of the criminal background check.
13
(d) A marijuana handler permit is valid for one year from the date of issuance, and may be
14
renewed upon submission of a renewal application containing the information required under
15
SRC 31B.050(b). The Chief shall issue a renewal of the permit so long as the applicant
16
continues to qualify as provided by this section.
17
31B.095. Inspection.
18
(a) Facilities shall be open for inspection and examination by any member of law enforcement
19
or Fire Code Official of the City during all operating hours.
20
(b) The Chief may investigate all applicants, principals, employees, volunteers, and persons
21
with a financial interest in the facility, and may inspect licensed facilities. Nothing in this
22
subsection is intended, or shall be construed, to limit the authority of the Chief, the Chief’s
23
designee, or members of the Salem Police Department from performing their duties.
24
31B.100. Examination of Books, Records, and Premises.
25
(a) To determine compliance with the requirements of any and all applicable laws and
26
regulations, the Chief, or the Chief’s designee, may examine a facility, including wastewater
27
from the facility, and any and all facility financial, operational, and facility information,
28
including, but not limited to, video surveillance recordings, books, papers, payroll reports, and
29
state and federal income tax returns. Every facility is required to furnish to the Chief the means
30
and opportunity for making such examinations.
ORDINANCE 8-16 – Page 26
COUNCIL OF THE CITY OF SALEM, OREGON
1
(b) The Chief may require an audit to be made of the books of account and records of a facility
2
on such occasions as the Chief may consider necessary. Such audit may be made by an auditor to
3
be selected by the Chief that shall likewise have access to all books and records of the facility.
4
(c) As part of investigation of a crime or a violation of this Chapter which law enforcement
5
officials reasonably suspect has taken place on the facility’s premises, the Chief or his or her
6
designee shall be allowed to view surveillance videotapes or digital recordings at any reasonable
7
time.
8
(d) Without reducing, limiting, or waiving any provision of this Chapter, the Chief shall have
9
the same access to the facility, its records, and its operations, as allowed to state inspectors.
10
31B.105. Confidentiality. Except as otherwise required by law, it shall be unlawful for the City,
11
any officer, employee, or agent to divulge, release, or make known in any manner any financial
12
or employee information submitted or disclosed to the City under the terms of this Chapter.
13
Nothing in this section shall prohibit:
14
(a) The disclosure of licensee names and facility addresses.
15
(b) The disclosure of general statistics in a form which would prevent identification of financial
16
information regarding a facility.
17
(c) The presentation of evidence to a court, or other tribunal having jurisdiction in the
18
prosecution of any criminal or civil claim, by the City.
19
(d) The disclosure of information upon request of a local, state, or federal law enforcement
20
official.
21
(e) The disclosure of information when such disclosure is required under the Oregon Public
22
Records Law.
23
Section 3. Review of Applications for License.
24
(a) Except as set forth in subsection (b), complete applications for a license shall be accepted,
25
processed, and a final decision issued, in the order in which they are received.
26
(b) Applications for license received on or before [a date 90 days after the effective date of the
27
ordinance] from a medical marijuana facility licensed by the City, and operating in compliance
28
with City and state law, shall be processed, and a final decision issued, prior to the City
29
accepting an application from an applicant, other than a holder of a City-issued medical
30
marijuana facility license.
ORDINANCE 8-16 – Page 27
COUNCIL OF THE CITY OF SALEM, OREGON
1
Section 4. Codification. In codifying this ordinance the City Recorder may change the word
2
“ordinance,” “code,” “article,” “section,” or “chapter” to reflect the proper terminology; may
3
renumber sections, subsections, paragraphs and clauses to reflect proper sequencing; may correct
4
any cross-references; and may correct any typographical errors in the text which do not affect the
5
meaning of text.
6
Section 5. Severability. Each section of this ordinance, and any part thereof, is severable, and
7
if any part of this ordinance is held invalid by a court of competent jurisdiction, the remainder of
8
this ordinance shall remain in full force and effect.
9
PASSED by the City Council this
10
day of
, 2016.
ATTEST:
11
12
13
City Recorder
14
Approved by City Attorney: ____________
15
16
Checked by: D. Atchison
17
18
19
20
21
22
23
24
25
26
27
28
29
30
ORDINANCE 8-16 – Page 28
COUNCIL OF THE CITY OF SALEM, OREGON