Agenda Item Title:
Second Reading and Recommendation of Ordinance No. 6553, An Ordinance Amending the Code To Prohibit Alcohol Sales in Medical Cannabis Establishments and to Allow Additional Flexibility on the Commencement of Operations for Medical Cannabis Establishments
Origination Group:
Legal & Finance Committee
Origination Meeting Date:
11/02/2022
City Council First Reading Date:
11/07/2022
City Council Second Reading Date:
11/21/2022
Staff Contact:
City Attorney Joel Landeen/Assistant City Attorney Justin Williams
Agenda Item Summary:
The proposed change to Section 5.74.120 will clearly prohibit the sales or distribution of any alcoholic beverages at a medical cannabis establishment. The prohibition would include alcohol to be served within the establishment, such as a bar or restaurant does, and alcohol to be purchased for consumption elsewhere, similar to a convenience store or liquor store.
The proposed change to Section 5.74.110 will allow the Finance Director to extend the time in which a medical cannabis licensee must begin operations for an additional one year after the initial one-year requirement. The original purpose of the requirement is to ensure licensees are actually using the license and not hoarding or holding them for speculative purposes.
This change is brought to mirror a change currently being made at the state level, which is needed because there is currently not enough cannabis product available for sale and it will take several months until there is. The allowance of an additional year would only apply during this initial industry ramp-up period and would not be permanent or applicable to future licensees. It appears licensees are making genuine efforts to use the licenses and are not unnecessarily delaying commencing operations for speculative reasons.
Funding Source & Fiscal Impact (if applicable):
| Funding | Cost Center |
|---|---|
Recommendations:
Origination Recommendation Action:
Approve