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2019-378-Order No. 2019-014 Recorded 8/22/2019Recorded in Deschutes County CJ2019-378 Nancy Blankenship, County Clerk Commissioners' Journal 08/22/2019 3:24:41 PM 111111111111111111 imiimii For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Prohibiting the Establishment of Certain Marijuana Businesses Within Unincorporated Deschutes County; Referral to the Electors and Declaring an Emergency. ORDINANCE NO. 2019-014 WHEREAS, in November 2014, Ballot Measure 91 was passed by the voters of Oregon generally legalizing recreational use of marijuana within the state; and WHEREAS, the Board of County Commissioners (the "Board") adopted Ordinance No. 2015-009 on December 21, 2015, prohibiting the establishment of marijuana businesses within unincorporated Deschutes County ("Opt Out"); and WHEREAS, after securing legislative assurance in 2016 through the passage of Senate Bill 1598 that statutory right to farm protections would not override local governments' authority to adopt local time, place and manner regulations governing marijuana businesses, the Board adopted Ordinances No. 2016-013, 2016-014, 2016-015, 2016-016, 2016-017, 2016-018 and 2016-019 on June 1 and June 15, 2016, implementing comprehensive land use regulations for the marijuana industry in unincorporated Deschutes County, and subsequently adopted Ordinance No. 2016-012 on August 2, 2016, effectively "Opting In" by repealing Ordinance No. 2015-009; and WHEREAS, following their initial adoption, the Board committed to reexamine Deschutes County's marijuana land use regulations approximately one year post -implementation after gaining additional experience regulating the evolving marijuana industry; and WHEREAS, after hosting thirteen public meetings, work sessions, and hearings attended by state agencies, marijuana industry representatives, and concerned members of the community, on October 24, 2018, the Board of County Commissioners adopted Ordinance No. 2018-012, revising the original marijuana land use regulations; and WHEREAS, twelve petitioners appealed Ordinance No. 2018-012 to the Land Use Board of Appeals ("LUBA") on February 12, 2019, raising new arguments that were not previously presented to the Board; and WHEREAS, after reviewing the Petition for Review filed with LUBA and the new arguments and evidence contained therein, and upon recommendation of county staff, the Board directed the withdrawal of Ordinance No. 2018-012 for additional consideration pursuant to ORS 197.830(13)(b); and WHEREAS, the Board held a duly noticed public hearing on July 3, 2019, to take public testimony from the twelve petitioners (and others) regarding Ordinance No. 2018-012; and PAGE 1 OF 3 - ORDINANCE NO. 2019-014 WHEREAS, concerned members of the community testified during the public hearing that the new arguments raised by the twelve petitioners essentially tasked the County with defending the constitutionality of the State of Oregon's Recreational Marijuana program; and WHEREAS, further testimony noted that despite the provisions of Senate Bill 1598, authorizing local governments to adopt reasonable time, place and manner regulations (which provided the singular basis for the County to repeal its initial Opt Out and allow marijuana businesses), there have been numerous attempts to legislatively strip or limit that authority in the 2017, 2018, and 2019 Oregon Legislative Sessions; and WHEREAS, further testimony also noted that while the County has utilized extensive resources over several years to attempt to develop reasonable time, place, and manner marijuana regulations, there has been noticeable and vocal dissatisfaction from citizens on all sides of the issue consistently expressing doubt that these regulations have the ability to successfully harmonize ostensibly incompatible land uses in the rural County due to marijuana's classification as a farm crop; and WHEREAS, a significant portion of written and oral public testimony received during and after the July 3 public hearing requested that the Board prohibit the establishment of new marijuana businesses ("Opt Out") in unincorporated Deschutes County rather than further revising Ordinance No. 2018-012; and WHEREAS, an Opt Out imposed by Deschutes County will only be applicable within the unincorporated County and will not impact marijuana operations or businesses within any city limits; and WHEREAS, an Opt Out is not in conflict with the aforementioned Ballot Measure 91 wherein the voters of Oregon expressed no opinion or direction regarding marijuana's status as a farm crop, or the appropriate location of commercial grow sites and processing operations; and WHEREAS, an Opt Out will only impact future recreational production and processing businesses and medical marijuana processing facilities; existing marijuana businesses will not be impacted nor will the Opt Out impact or prohibit future medical dispensaries or production sites, or future recreational retail or wholesale; and WHEREAS, disallowing future recreational production sites and future marijuana processing will not impact the availability of marijuana products from medical dispensaries or retail and wholesale outlets; and WHEREAS, for the foreseeable future, it is uncertain if recreational marijuana production sites can be established in the County due to newly -adopted Senate Bill 218 authorizing the Oregon Liquor Control Commission to establish a moratorium on recreational producer licenses until January 2, 2022; and WHEREAS, the State's moratorium enacted by Senate Bill 218 provides a unique opportunity to refer the matter to the Deschutes County voters while minimally impacting any would-be applicants seeking to establish new marijuana production or processing facilities; and WHEREAS, so long as referring the matter to voters at the next General Election, ORS 475B.968 authorizes the County to adopt an ordinance prohibiting the establishment of any one or more of the six categories of state licensed or registered marijuana businesses in the unincorporated area subject to the County's jurisdiction; and WHEREAS, based in substantial part on the testimony provided during and after the aforementioned July 3 public hearing, the Board prefers to immediately impose an Opt Out of new recreational marijuana production and processing businesses and medical marijuana processing facilities within the unincorporated county, and likewise refer the question of whether to continue the Opt Out to the Deschutes County voters at the next General Election on November 3, 2020; now therefore, PAGE 2 OF 3 - ORDINANCE NO. 2019-014 THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. In accordance with ORS 475B.968 the following are prohibited in the unincorporated area subject to the jurisdiction of Deschutes County: (a) Marijuana processing sites registered under ORS 475B.840; (b) Marijuana producers licensed under ORS 475B.070 (c) Marijuana processors licensed under ORS 475B.090; Section 2. This ordinance shall be referred to the electors of Deschutes County at the General Election on Tuesday, November 3, 2020. Section 3. The text of this ordinance shall be provided to (a) the Oregon Health Authority; and (b) the Oregon Liquor Control Commission. Section 4. EMERGENCY. This Ordinance being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this Ordinance takes effect on its passage. Dated this 19of 2�, 2019 ATTEST: ecording Secretary Date of 1St Reading: II day of BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY/, OGON PH PATTI ADAIR, Vice Chair L9,J2 ANTHONY DEBONE 2019. Date of 2nd Reading: 17 day of , 2019. Commissioner Philip G. Henderson Patti Adair Anthony DeBone Effective date: I day of Record of Adoption Vote: Yes No Abstained Excused PAGE 3 OF 3 - ORDINANCE NO. 2019-014