Public Hearing - Final Regulations
On December 11, 2018 at 3:00 P.M., the Board of County Commissioners will hold a public hearing. The hearing is to take public testimony on final regulations for state licensed marijuana producers, processors and retailers authorized by Chapter 69.50 RCW. The Board will be considering making the current interim regulations permanent.
The regulations in the four county zoning ordinances are not proposed to change from the November 2018 renewal of the interim regulations.
The interim regulations, as amended, which would be made permanent with the proposed action, added several chapters to the Thurston County Code, including Chapter 20.63, for the rural county, Chapter 21.103 for the unincorporated Lacey Urban Growth Area, Chapter 22.65 for the unincorporated Tumwater Urban Growth Area, and Chapter 23.91 for the unincorporated Olympia Urban Growth Area.
The Board may take action following the public hearing on December 11, 2018 or any Board meeting thereafter.
The full text of the proposed renewal ordinance with amendments is available here.
Public Hearing Information:
Date: | December 11, 2018 |
Time: | 3:00 P.M., or soon thereafter |
Location: | Room 280, Building 1 |
Thurston County Courthouse | |
2000 Lakeridge Dr. SW | |
Olympia, WA 98501 |
Comments may be given at the hearing, mailed or sent via email. Please send email comments to Andrew Deffobis at andrew.deffobis@co.thurston.wa.us by 12:00 p.m. on December 11th. Please send mailed comments to:
Thurston County Community Planning and Economic Development
Building 1, Second Floor
C/O Andrew Deffobis, Associate Planner
2000 Lakeridge Dr. SW
Olympia, WA 98502
Mailed comments must arrive by December 11, 2018 by 12:00 P.M. If you have any questions, you can email Jeremy Davis at jeremy.davis@co.thurston.wa.us, or call (360) 867-2103.
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Issue
This briefing is in response to changes in state legislation that allow for licensed producers, processors, and retailers of marijuana products for medical and recreational use.Acronyms and Terminology
Marijuana or marihuana means all parts of the plant Cannabis, whether growing or not, with a THC concentration greater than 0.3 percent on a dry weight basis; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. The term does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound manufacture, salt, derivative, mixture, or preparation of the mature stalks (except resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination.
Marijuana processer means a person licensed by the state liquor control board to process marijuana into useable marijuana and marijuana-infused products, package and label useable marijuana and marijuana-infused products for sale in retail outlets, and sell useable marijuana and marijuana-infused products at wholesale to marijuana retailers.
Marijuana producer means a person licensed by the state liquor control board to produce and sell marijuana at wholesale to marijuana processors and other marijuana producers. A marijuana production area not located in a legally permitted fully enclosed permanent building shall be considered an outdoor marijuana production area. Hoop houses and other temporary structures are not considered a legally permitted permanent building. Marijuana production may include growing, drying, cutting, and bagging marijuana to prepare marijuana for wholesale shipment to a marijuana processor.
Marijuana retailer means a person licensed by the state liquor control board to sell useable marijuana and marijuana-infused products in a retail outlet.
Sensitive Site means a child daycare, arcade (not limited to persons 21 years of age or older, recreation center, or publicly owned and/or regulated: school(s) (sans college, or university), library, playground(s) and park(s), or transit facility.
WSLCB (Washington State Liquor and Cannabis Board), formerly known as the Liquor Control Board, is responsible for administration of the application and license process, for Marijuana: producer, processor, or retailer.
WAC (Washington Administrative Codes) – Title 314 covers regulations of the executive branch agencies. Chapter 314-55 is the administrative code implemented by the WSLCB.
RCW (Revised Code of Washington) - Title 69 covers food, Drugs, Cosmetics, and Poisons. Chapter 69.50 is the Uniform Controlled Substances Act, and Chapter 69.51A is the Medical Marijuana Act. From here we get into the Articles I-VI; and Sections 101-609. These outline the definitions, standards, schedules, manufacturing, distribution and dispensing of controlled substances, offences and penalties, enforcement and administrative provisions. The county may pass an ordinance pursuant to RCW 69.50.331(8).
2SSHB 2136 ( Second Engrossed Second Substitute Hose Bill 2136) went in to effect July 24, 2015, and seeks to provide comprehensive marijuana reforms to ensure a well-regulated and taxed marijuana market in the State of Washington.
2SSB 5052 ( Second Substitute Senate Bill 5052) went into effect April 14, 2015, establishing the cannabis patient protection act.
Background
Initiative 502 was passed and went into effect on December 6, 2012. As written, the voter approved Initiative intended to:“…stop treating adult marijuana use as a crime and… 1.) Allows law enforcement resources to be focused on violent and property crime; 2.) Generates new state and local tax revenue for education, health care, research, and substance abuse prevention; and 3.) Takes marijuana out of the hands of illegal drug organization and brings it under a tightly regulated, state-licensed system similar to that for controlling hard alcohol.”
The Initiative authorized recreational marijuana, under Second Engrossed Second Substitute House Bill 2136 (2SSHB 2136) as the Uniform Controlled Substances Act, RCW 69.50. The Washington State Liquor and Cannabis Board (WSLCB) (formerly known as: the Washington Liquor Control Board) has developed, revised, and adopted administrative regulations under Washington Administrative Code (WAC) Chapter 314-55 - Marijuana Licenses, Application Process, Requirements, and Reporting on November 16, 2013. The WSLCB began to accept applications for recreational marijuana related businesses on November 18, 2013. The Second Substitute Senate Bill 5052 (2SSB 5052) was signed into law on April 24, 2015, which establishes regulations for medical marijuana as the Cannabis Patient Protection Act and seeks to align it with the existing recreational marijuana system. On November 12, 2013, the Thurston County Board of County Commissioners (Board) adopted interim zoning controls for marijuana producers, processors, and retailers in Ordinance No. 14944. Subsequent to November 12th, the Board has amended and/or renewed the interim zoning controls, as follows (Please See Attachment):
Pursuant to RCW 36.70A.390, the Board held a public hearing for each of the enacted extensions and amendments to receive comments on the renewal of Ordinance No. 14944. During these hearings the Board heard concerns from citizens about allowing marijuana production, processing, and retail in residential areas, concerns about outdoor marijuana production areas producing odors impacting adjacent property owners, and inadequate noticing for proposed marijuana related permits to ensure neighboring property owners have an opportunity to comment. Citizens also voiced concerns about appropriate screening of marijuana producers and processors from residential uses.
Amendments to the Thurston County Code (TCC) titles and chapters listed in Chapter 2.05 TCC Growth Management Public Participation, that do not involve an amendment to the Thurston County Comprehensive Plan (TCCP) must be placed on the Development Code Official Docket prior to formal consideration and adoption; and on December 16, 2014, the Board adopted the official docket, which included final marijuana regulations as a high priority. On January 29, 2015, County staff met with the Agricultural Advisory Committee to discuss final regulations for marijuana operations. County staff has begun researching environmental and siting issues to determine appropriate final regulations for marijuana operations; and is currently considering a 2016-17 preliminary docket that includes final marijuana regulations as a high priority.
Additonal Information
Marijuana oriented businesses are responsible for knowing and meeting all regulatory standards set by the local jurisdiction and The State of Washington. The following are the currently known standards applicable to Marijuana related activity under state law, italics indicate potential local controls.Financial Impact
Effective July 1, 2015, tax reforms defined in HB 2136 change the existing marijuana excise tax structure. In addition to B&O and local sales tax, a 37% marijuana excise tax must now be collected exclusively at the retail level.Thurston County collects neither, business & operations tax or local retail sales tax; however, the state is engaging in revenue sharing as outlined in Section 206 of 2HSSB 2136. The State Treasurer will make transfers of collected marijuana revenue to local governments in four installments, by the last day of each fiscal quarter. For two fiscal years (2015-17 biennium), the state budget provides $6 million to counties and eligible cities. Thurston County receives $29,499.97* per quarter, and total of $117,999.88* per year. Beginning in 2018, 30% will go to counties, cities, and towns where retailers are located, based on the retail sales from stores within each jurisdiction; 70% will be distributed to counties, cities, and towns on a per capita basis, but only to jurisdictions that do not prohibit the siting of state-licensed producers, processors, or retailers. The legislation provides a retail sales and use tax exemption for marijuana purchased or obtained for medical use.
The total excise sales tax collected between July 1, 2014, and June 30, 2015 for all state-licensed marijuana related activity in Thurston County, came to $2,487,932.17*. The total reported sales for that same time period in Thurston County was $9,951,728.55*.
(* figures provided and latest information regarding reported marijuana related revue and tax collection may be viewed at the WSLCB’s website under frequently requested Lists.)
Current land use review fees (when applicable) are $2,417.00; unless, combined in a single application for Producer and Processors. In which case, permit review fees equate to $3,282.00 (adds 5 hours).
SEPA
An environmental determination for the proposed code amendment is required pursuant to WAC 197-11-704. That will be completed prior to a public hearing on the amendments before the Board of County Commissioners.
Sources
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