Chapter 5.06
MARIJUANA-RELATED ACTIVITIES
Sections:
5.06.001 Statement of purpose.
5.06.004 Characteristics of license.
5.06.006 Collection of tax and penalties.
5.06.007 Duty to keep receipts, invoices and other records.
5.06.008 Rules and regulations.
5.06.001 Statement of purpose.
The purpose of this chapter is to promote the public health, safety, and general welfare by establishing standards in the city for the operation of marijuana-related activities as allowed by state law. (Ord. 3258, 2020)
5.06.002 Definitions.
For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning:
(1) “Marijuana-related activities” means an activity involved with the growing, processing, wholesaling, or selling of marijuana, cannabinoid product, cannabinoid concentrate, or cannabinoid extract regulated by the Oregon Health Authority or the Oregon Liquor Control Commission.
(2) “Marijuana items” means marijuana, cannabinoid products, cannabinoid concentrates and cannabinoid extracts, as further defined in ORS 475B.015.
(3) “Marijuana retailer” means a person that sells marijuana items to a consumer in this state and who holds a retail license issued by the Oregon Liquor Control Commission.
(4) “Retail sale price” means the price paid for a marijuana item, excluding tax, to a marijuana retailer by or on behalf of a consumer of the marijuana item.
(5) “Marijuana” means the plant Cannabis family Cannabaceae, any part of the plant Cannabis family Cannabaceae and marijuana seeds. It does not include industrial hemp or prescription drugs including those containing one or more cannabinoids that are approved by the United States Food and Drug Administration and dispensed by a pharmacy. (Ord. 3258, 2020)
5.06.003 Requirements.
(1) A marijuana-related activity must comply with all applicable requirements of state law.
(2) A marijuana-related activity must obtain a city business license pursuant to Chapter 5.01 SHMC prior to opening.
(3) All products and paraphernalia sold to the public or members of a club or organization must be enclosed in an opaque bag or container upon exiting a dispensary or retail facility.
(4) A marijuana-related activity must provide secure disposal or render impotent marijuana remnants or by-products, including any item with marijuana residue.
(5) Fees for licenses required by this chapter shall be set by resolution of the city council. (Ord. 3258, 2020)
5.06.004 Characteristics of license.
(1) Nontransferable. A license issued pursuant to this chapter is nontransferable.
(2) Term. A license issued pursuant to this chapter shall remain in effect until such time as:
(a) The person who obtained the license ceases to operate the marijuana-related business;
(b) The person who obtained the marijuana-related business license ceases to possess a valid authorization from the Oregon Liquor Control Commission or Oregon Health Authority to legally operate in the state of Oregon;
(c) The person who obtained the marijuana-related business license ceases to comply with the provisions of Chapter 5.01 SHMC or this chapter; or
(d) State statutes, regulations, or guidelines are modified, changed, or interpreted in such a way by state or federal law enforcement officials so as to prohibit operation of a business under this chapter.
(3) The city may revoke a marijuana-related business license upon a finding that the license is no longer in effect, pursuant to subsection (2) of this section. An aggrieved person may appeal the city’s decision to city council by filing a written notice of appeal with the city recorder within 10 days of the city’s decision to revoke the license. (Ord. 3258, 2020)
5.06.005 Tax imposed.
As authorized by ORS 475B.491, the adoption by city council of Resolution No. 1753 on July 20, 2016, and the approval of Ballot Measure 5-260 by the electors of the city, a three percent tax shall be imposed on the retail sale price of all marijuana items sold by a marijuana retailer in the city. (Ord. 3258, 2020)
5.06.006 Collection of tax and penalties.
(1) The tax shall be collected at the point of sale and remitted by each marijuana retailer that engages in the retail sale of marijuana items. The tax is considered a tax upon the marijuana retailer that is required to collect the tax, and the marijuana retailer is considered a taxpayer.
(2) Marijuana retailer shall file a return to the Department of Revenue on or before the last day of January, April, July and October of each year for the previous calendar quarter and shall pay the tax not later than with each quarterly return.
(3) Marijuana retailer may seek an extension of not more than 30 days from the Department of Revenue for filing a return by submitting a written request to the Department of Revenue during or prior to the period for which the extension may be granted.
(4) Interest shall be added at the same rate established under ORS 305.220 from the time the return was originally required to be filed by the marijuana retailer to the time of payment.
(5) If marijuana retailer fails to file a return or pay the tax, a penalty shall be imposed by the Department of Revenue upon the marijuana retailer in the manner provided under ORS 314.400. (Ord. 3258, 2020)
5.06.007 Duty to keep receipts, invoices and other records.
(1) Marijuana retailer shall keep receipts, invoices and other pertinent records related to retail sales or marijuana items as required by rules or regulations adopted pursuant to this chapter. Each record shall be preserved for five years from the time to which the record relates, or for as long as marijuana retailer retains the marijuana items to which the record relates, whichever is longer. During the retention period and at any time prior to the destruction of records, the city may give written notice to the marijuana retailer not to destroy records described in the notice without written permission of the city.
(2) The city or its authorized representative or designee, upon oral or written demand, may make examinations of the books, papers, records and equipment of persons making retail sales of marijuana items and any other investigations as the city deems necessary to carry out the provisions of this chapter. (Ord. 3258, 2020)
5.06.008 Rules and regulations.
The city administrator or their designee may establish rules and regulations necessary to implement the provisions of this chapter. For the purposes of this section, the city administrator’s designee may include the Oregon Department of Revenue pursuant to an agreement entered into under ORS 305.620. (Ord. 3258, 2020)
5.06.009 Penalty.
(1) Notwithstanding the provisions of Chapter 5.01 SHMC, a person who commits, permits, assists in, or attempts a violation of any provision of this chapter is subject to a civil penalty in the amount of not less than $100.00 for the first violation, $500.00 for the second violation, and $1,000 for each subsequent violation within a two-year period starting from the issuance of the first notice of violation.
(2) Each day during which any provision of this chapter is violated constitutes a separate offense.
(3) A violation of the provisions of this chapter shall constitute a Class C misdemeanor. (Ord. 3258, 2020)