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CITY OF SILVERTON CITY COUNCIL WORK SESSION AGENDA Silverton Community Center – Council Chambers – 421 South Water St. The Silverton Community Center – The City of Silverton intends to comply with the A.D.A. The meeting location is accessible to individuals needing special accommodations such as a sign language interpreter, headphones, or other special accommodations for the hearing impaired. To participate, please contact the City Clerk at 503-874-2216 at least 48 hours prior to the meeting. A copy of the packet and materials, including Ordinances and Resolutions, are available for review Monday through Friday 8:00 am to 5:00 pm in the City Manager’s Office at the Silverton City Hall, located at 306 South Water Street. All documents will be available on our website at www.silverton.or.us. MONDAY, JULY 27, 2015, 6:00 PM AGENDA ITEMS NOTES I. OPENING CEREMONIES – Call To Order, Pledge Of Allegiance & Roll Call II. DISCUSSION – MARIJUANA POLICY ISSUES 2.1 What Changes Did The Legislature Make To Measure 91 And/Or The Medical Marijuana Statutes? 2.2 Is There Still A Distinction Between Medical Marijuana And Recreational Marijuana Sales Or Use? Can Our Code Treat Them The Same? Are There Areas Where They Must Be Treated Differently? 2.3 The City’s Current Ban On Medical Marijuana Facilities Expires October 6, 2015. Recreational Marijuana Sales May Begin Legally On October 1, 2015. Is The City’s Ban Enforceable For The First 5 Days Is October With Regard To Medical Marijuana Sales? Do Any Restrictions On Recreational Marijuana Sales Need To Be In Place Before October 1? 2.4 Can The City Use Its Police Power To Ban Both? Would This Require Any Amendment To Our Business License Ordinance? Does The Council Want An Ordinance Drafted That Would Ban All Marijuana Sales In Silverton? 2.5 If The City Doesn’t Want To Ban, But Does Want To Regulate The Time, Place, And Manner Of Marijuana Sales, What Is Permissible? How Would These Restrictions Be Implemented? What Have Other Cities Done And Who Should We Use For A Model Ordinance? 2.6 Can The CM Issue A Business License To A Marijuana Business Under The Existing Business License Code Provision? Would We Be Better Off With A Separate “Marijuana License” Like Salem Has And Exempt Marijuana Businesses From The Requirement That They Have A City Business License? Why Is Salem’s Marijuana License Limited To Medical Marijuana? 2.7 Will The State Tax Marijuana Sales? Can Silverton Add A 3% Tax? Does The Council Want To Do This? 1 2.8 If The Only Avenue For Banning Marijuana Sales Is By An Initiative Or Referendum Petition, Does The Council Want To Refer This To A Vote Of The Local Electors? 2.9 What Restrictions Can The City Place On The Use Of Marijuana? a. Use or possession of marijuana in a public place? b. Similar restriction on vaping and tobacco use? c. What is the definition of a public place? d. Can the city as an employer continue to ban use or possession of marijuana by employees? 2.10 Other Issues? III. ADJOURNMENT – 2 Bob Willoughby From: Bob Willoughby Sent: Tuesday, June 30, 2015 10:01 AM To: Ashley Boyle (ashleyb@gov-law. com); 'Jeff Fossholm (jfossholm@silverton. or. us)'; Jim Anglemier (JAnglemier@Silverton. or. us) Subject: FW: Cave Junction's Court decision on Marijuana Dispensaries Ashley: A discussion ofthis case should be part ofthe briefing on m.j. at the July27 worksession. Dowe have an option of using our business license ordinance to prevent both the sale of medical and recreational m.j. ? Is our business license ordinance substantially the same as that of Cave Junction? If not, would you advise any changes in our ordinance if the Council wants to rely on it to deny business licences to m.j. businesses? Bob -Original Message- From: Rick Lewis Sent: Monday, June 29, 2015 6:40 PM To: Bob Willoughby Subject: CaveJunction's Court decisionon Marijuana Dispensaries Forthe Council: The Cityof CaveJunction successfully challengedOregon's Medical marijuana law on the groundsthat they had a right to deny a dispensary under their City Business License ordinance. Their ordinance (like ours) requires that a businesscomply with all local, state andfederal laws. The Citydenied a business license on those grounds. It was challenged and the City won. Here is a synopsis of the decision. Rick Cave Junction II Litigation: Court Upholds City Business License Ordinance In a case known as Providing All Patients Access v. City of Cave Junction, a trial court judge recently ruled that the City of Cave Junction could deny a business license to a medical marijuana dispensary. This case was brought by a medical marijuana dispensary owner challenging the city's denial of a business license. The city's ordinance provided that the city would revoke a business license from any business that violates local, state or federal law. Because distribution of marijuana violates the federal Controlled Substances Act, the city revoked the dispensary's business license. The dispensary owner claimed that the city was preempted by state lawfrom revoking the business license. The League and Association of Oregon Counties (AOC) intervened in the case on the side of the city, arguing that state law did not preempt local governments from enforcingthese types of business license ordinances. In the alternative, the city, the Leagueand AOC argued that if the city waspreempted by state law, then federal law overrode that preemption. In issuing his decision,the judge notedthat he wasdeciding the caseon federal grounds. (A copy ofthe opinion can be found here). Specifically, he noted that any state preemption was without effect because state law conflicted with the purposes ofthe federal Controlled SubstancesAct. In reachingthat decision,the judge indicated hewas presuming withoutdeciding that the state law actually preempted the city. Thiscase is only bindingon the partiesto it anddoes not have statewideeffect. However, if the dispensaryowner appeals as expected, a decision from the Court of Appeals in the case would then have statewide effect. This is the second case involving Cave Junction and marijuana. The League also intervened in the first case and won on the grounds that state law was not preemptive of a city's ability to ban dispensaries through a business license ordinance.That case is currently on appeal beforethe Oregon Court ofAppeals. For more information about those cases and marijuana generally, visit the League's marijuana resources page here. 6«, /i f"a. <. «. C>"E>l>. (_eM -(- $f A y 1 6<-n -<te( _ 7 ^Oc(>o. y®o^c.^e$. /»' 3 "J Q ^W^J^^^V^, They re hopeful new strategy will help stop growing industry case, neighbors of thetwo busi- By Kristen Wyatt nesses who claim the pot busi- Associated Press nesses could hurt their proper- ty values If successful, civil DENVER - A federal law lawsuits under the RICO Act Grafted to fight the mob is giv- trigger triple penalties. mg marijuana opponents a new FUed in February, the Colo- strategy in their battle to stop rado lawsuits have yet to go be- the expanding industry: rackef- fore a judge. But one has al- eering lawsuits. ready had the intended effect. A Colorado pot shop recently In April, three months after closed after a Washington- the RICO lawsuit was filed, based group opposed to legal MedicalMarijuana of theRock- marijuana sued not just the pot res closed. Owner Jerry Olson shop but a laundry Ust of firms liquidatedhis inventory byseB- doing business with it - from ing marijuana for $120 an its landlord and accountant to ounce, far below average retail the Iowa bonding company prices. guaranteeing its tax payments. "I am bqing buried in legal One by one, many of the plain- procedure, " Olson wrote on a tiffs agreed to stop doingbust- fundraising Web page he creat- ness with Medical Marijuana of ed to fight the lawsuit. The ef- J the Rockies, until the mountain fort so far has brought in just shop closedIts doors andhad to $674. Daw'dThompson, lawyer for the anU-marijuana group Safe Streets Alliai seU off its pot at fire-sale The closure came after the lawsuitto shutdown Cotorado's marijuana industry, in DenverIn Febnii pnees. pot shop's bank. Bank of the With another lawsuit pend- West, closed the shop's account mg m scutfaern Colorado, the and was dismissed as a Dlain- I am being buried cases represent a new ap- at. proach tofightmg marijuana. If mkgtd dte federal government wont "Its policy is never to offer accounts to recreational mari- procedure." stop its expansion, pot oppo- juana businesses, " the court or- nents say, federal racketeermg der said. JERRYOLSON lawsuits could. Marijuana may Medical Marijuana of the Rockies be legal under state law, but AndJust last week, a bonding company in Des Moines, Iowa, owner federal drug law stiU considers paid"$50, 000 to get out "of the any marijuana business orga- lawsuit. nized crime. "We are out of the business "It is still iUegal to cultivate, of bonding marijuana business- views A construction company seU or possess marijuana under es in Colorado and elsewhere and insurance company work- federal tow, " saidBnanBames, until this is settled poIiticaBy," tag with Alternative Holistic lawyer for Safe Streets AUi- Healing haven't abandoned the ance, a Washington-basedantt- said Therese Wietoge, spokes- woman for Merchants Bonding job. crime group that brought the Company Mutual. "It's a frivolous lawsuit," lawsuits on behalf of neighbors Thecase of the mountain pot said the pot shop's lawyer, Mat- of the two Colorado pot busi- shop shows that racketeering thew Buck. "It has not affected » nesses.

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