AGENDA REPORT To: Thru: From: Subject: City Council Ted Barkley, City Manager Jim Pidduck, City

Attorney Proposed Ordinance No. 4611 Renewing and Extending an Emergency Moratorium on the Licensing, Establishment and Operation of Medical Marijuana Dispensaries for an Additional Six Months December 20, 2011

Date:

Summary: The attached proposed ordinance would renew and extend for an additional six months through July 31, 2012, a moratorium within the City of Ellensburg on the licensing, establishment and operation of medical cannabis dispensaries. The Ordinance has been drafted as an emergency ordinance which would take effect immediately following the conduct of a public hearing and upon passage by a majority vote plus one of the whole membership of the City Council. Background: On August 1, 2011, the City Council adopted Ordinance No. 4596, a six month moratorium on medical marijuana dispensaries set to expire on January 31, 2012. The Ordinance was passed in order to give the City time to determine whether medical cannabis dispensaries are allowed by existing law, and if so, to determine whether the City should adopt any regulations allowed by ESSSB 5073 on such dispensaries. The U.S. Department of Justice continues to view activity involving the use of marijuana, whether for medical purposes or not, as potentially in violation of the CSA, given that marijuana continues to be a Schedule I controlled substance under federal law; in the past six months Washingtons top two U.S. Attorneys, Mike Ormsby and Jenny Durkin, have both carried out raids of illegal drug operations in Washington state, including a large number of medical marijuana dispensaries, making it clear the federal government will take action against persons who are operating beyond the scope of allowed activity under the states current medical marijuana laws. Subsequent to the city councils adoption of Ordinance No. 4596, the state has taken little action to resolve the issues involving medical marijuana; there is, however, draft state legislation being developed which may address a number of such issues, and the governor has petitioned the U.S. Drug Enforcement Administration to reclassify marijuana as a Schedule 2 drug so it can be prescribed and sold in pharmacies. Until the Washington State Legislature adopts regulations addressing medical cannabis dispensaries, the City of Ellensburg does not know whether it must adopt a comprehensive regulatory system for medical cannabis dispensaries or a lesser system to avoid preemption by state law. Analysis and Findings: As a member of the AWC Risk Management Services Agency insurance pool, Ellensburg is required to submit any proposed moratorium ordinance to Carol Morris for review before adoption. However, in this instance the proposed ordinance has been prepared under the guidance of Ms. Morris, who recommends the moratorium be renewed and extended for an additional six months while more information is developed at the state and federal levels. The Ordinance would preserve the status quo and give the City additional time to determine whether medical cannabis dispensaries are allowed by existing law, and if so, to determine whether the City should adopt appropriate regulations on such dispensaries. Renewal

of the moratorium would also be a pro-active response to continuing legal uncertainty, in that it will give the City time to consider the regulations adopted by other states on dispensaries, so that it is ready with draft regulations if and when a new bill allowing dispensaries is passed by the state legislature. Draft state legislation is being developed which may address a number of issues involving medical marijuana and which may clarify cities authority to apply local regulations. Duration of Moratorium If adopted, the moratorium renewal set forth in the attached Ordinance will be in effect for a period of six months from the date the moratorium established by Ordinance No. 4596 was initially set to expire, the result being the moratorium will continue in effect through July 31, 2012. Public Hearing on Moratorium RCW 35A.63.220 and RCW 36.70A.390 authorize Council to renew a moratorium for one or more six month periods if a public hearing is held and findings of fact are made prior to each renewal. Accordingly, the City Council should conduct a public hearing on the proposed ordinance prior to its adoption. At its regular meeting on December 19, 2011, Council set January 3, 2012 at 7:00 p.m. as the date and time for conducting the public hearing. Notice of the public hearing has been published in accordance with law. The attached Ordinance contains findings of fact in support of the moratorium and Council may in its discretion adopt additional findings following the conclusion of the public hearing. Declaration of Emergency The proposed Ordinance includes a Council declaration that an emergency exists necessitating that the Ordinance take effect immediately upon passage by a majority vote plus one of the whole membership of the Council, and that the same is not subject to a referendum (RCW 35A.12.130). The Ordinance also includes a Council determination that the moratorium must be imposed as an emergency measure to protect the public health, safety and welfare. If adopted, the Ordinance would take effect and be in full force and effect immediately upon passage, as long as it is approved by a majority plus one of the entire membership of the Council, as required by RCW 35A.12.130. Recommendation: 1. 2. Conduct the public hearing. Consider adoption of Ordinance No. 4611.