018-16 - Ordinance - Amending Chapter 5.12 Business LicensesORDINANCE NO. 018-16
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING PORT
ORCHARD MUNICIPAL CODE CHAPTER 5.12 "BUSINESS LICENSES" IN RESPONSE TO
STATE ACTIONS RELATING TO MARIJUANA.
WHEREAS, the City of Port Orchard has adopted local regulations establishing standards
and procedures for business licenses, including as currently codified in Chapter 5.12 POMC; and
WHEREAS, in the 2015 Legislative session, Governor Inslee approved several changes to
Chapter 69.51A RCW (Medical Cannabis) effective July 1, 2016, which included the replacement
of "medical marijuana collective gardens" with "medical marijuana cooperatives", and the
deletion of medical marijuana dispensaries; and
WHEREAS, on November 12, 2013, the City Council adopted Ordinance 023-13, which
prohibited business licenses from being issued to medical marijuana dispensaries or collective
gardens and prevented such uses from being located within the City; and
WHEREAS, the City Council has determined that medical marijuana cooperatives shall
be permitted within the City as regulated by Chapter 69.51A, and shall be required to obtain
and maintain a City business license; now, therefore and
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS
FOLLOWS:
SECTION 1. The City Council adopts all of the "Whereas" sections of this Ordinance as
findings in support of this Ordinance.
SECTION 2. Port Orchard Municipal Code (POMC) section 5.12.010 "Definitions" is
amended to read as follows:
5.12.010 Definitions.
For the purposes of this chapter, the following terms, phrases, words, and
their derivations shall have the meanings given herein.
(1) "Business" includes all activities, occupations, pursuits or professions
located and/or engaged in within the city with the object of gain, benefit or
advantage to the licensee or to another person or class, directly or indirectly,
whether part-time or full-time. Each business location shall be deemed a
separate business. For the purposes of this chapter, the owner of any apartment
building or buildings containing an aggregate of 10 or more rental units located
on a single or contiguous lot(s) and the owner of any business or commercial
Ordinance No.016-16
Page 2 of 5
building containing any rental units shall be considered to be engaged in a
"business." Utility companies are defined as businesses.
(a) For purposes of this chapter, "business" also includes medical
marijuana cooperatives as defined under chapter 69.51A RCW and marijuana
producers, marijuana processors, marijuana retailers and marijuana retail outlets
as defined in chapter 69.50 RCW.
(2) "Person" means any individual, firm, partnership, company, corporation,
association, receiver, assignee, trust, estate, joint venture, group, joint stock
company, business trust, society or any group of individuals acting as a unit.
(3) "Licensee" means any business granted a business license by the city.
(4) "Premises" includes all lands, structures and places, and also any personal
property which is either affixed to or is otherwise used in connection with any
. such business conducted on such premises.
(5) "City license officer" is the city treasurer, her/his designee or any city of
Port Orchard police officer.
(6) "Minor" means any person under 18 years of age.
(7) "Nonprofit organization" means an organization which has been granted
nonprofit status by the Secretary of State of Washington or the Internal Revenue
Service.
SECTION 3. POMC section 5.12.050 "Disclaimer of city liability" is amended to read as
follows:
5.12.050 Disclaimer of city liability; indemnification.
(1) Issuance of a license pursuant to this chapter does not constitute the
creation of a duty by the city to indemnify the licensee for any wrongful acts
against the public, or to guarantee the quality of goods, services or expertise of a
licensee. The issuance of a license does not shift responsibility from the licensee
to the city for proper training, conduct or equipment of the licensee or his
agents, employees or representatives, even if specific regulations require
standards of training, conduct or inspection. Issuance of the license does not
exempt the licensee from other required permits or licenses.
(2) For all city business licenses issued to businesses operating under
chapters 69.50 RCW and 69.51A RCW, and chapter 16.39 POMC "Recreational
Marijuana:"
(a) All licensees waive and release the City, its officers, elected officials,
employees, volunteers and agents from any liability for injuries, damages, or
liabilities of any kind that result from any arrest or prosecution of business
owners, operators, employees, clients or customers for a violation of federal,
state or local laws and regulations; and
Ordinance No.01fi-16
__ _ Page 3 of 5
(b) All licensees, jointly and severally, if more than one, agree to
indemnify, defend and hold harmless the City, its officers, elected officials,
employees, volunteers and agents, insurers and self-insurance pool against all
liability, claims and demands on account of any injury, loss or damage, including,
without limitation, claims arising from bodily injury, personal injury, sickness,
disease, death, property loss or damage, or any other loss of any kind
whatsoever arising out of or in any manner connected with the operation of the
marijuana business or medical marijuana cooperative that is the subject of the
license.
SECTION 4. POMC section 5.12.070 "General qualifications of licensees" is amended to
read as follows:
5.12.070 General qualifications of licensees.
(1) No license shall be issued, nor shall any license be renewed, pursuant to
the provisions of this chapter to:
(a) An applicant who is under 18 years of age at the time of the
application, unless he/she shall obtain the written consent of said applicant's
parent or guardian to make said application;
(b) An applicant who has had a similar license revoked or suspended,
pursuant to POMC 5.12.120, or its predecessor;
(c) An applicant who shall not first comply with the general laws of the
state;
(d) An applicant who seeks such a license in order to practice some illegal
act or some act injurious to the public health or safety;
(e) An applicant proposing any activity that is known to violate local,
state, and/or federal law, except as otherwise specifically allowed pursuant to
chapters 69.50 RCW and 69.51A RCW, and chapter 16.39 POMC "Recreational
Marijuana."
(2) Any person, including city officials, may submit written complaints or
objections to the city license officer regarding the application for any license, and
the city license officer is additionally authorized to request and receive
information from all city departments as will tend to aid her/him in determining
whether to issue or deny the license. Such information shall be confidential
unless a hearing is requested on the application, or if the applicant shall request
the information in writing. All information, complaints or objections shall be
investigated and considered by the city license officer prior to issuing, denying or
renewing any license.
SECTION 5. POMC section 5.12.120 "Suspension or revocation procedure" is amended
to read as follows:
Ordinance No.03ffl-16
Page 4 of 5
5.12.120 Suspension or revocation procedure.
(1) In addition to the other penalties provided herein or by law, any business
license issued under the provisions of this chapter may be revoked or
suspended, should any or all of the following conditions apply:
(a) The license was procured by fraud, false representation, or material
omission of fact; or
(b)The licensee or any of its employees, officers, agents or servants,
while acting within the scope of their employment, violates or fails to comply
with any of the provisions of this chapter; or
(c) The licensee's continued conduct of the business for which the license
was issued has or will result in a danger to the public health, safety or welfare, or
the violation of any federal or state law or any ordinance or regulation of the
city; provided, however, for purposes of this chapter only, a marijuana use
operated in full compliance with chapters 69.50 RCW or 69.51A RCW, and
chapter 16.39 POMC "Recreational Marijuana" shall not be deemed to violate
federal or state law;" or
(d) The licensee has been convicted in any court of violating any federal,
state or city statute, law, regulation or ordinance upon the business premises
stated in the license; or
(e) The place of business does not conform to city ordinance; or
(f) The license is being used for a purpose different from that for which it
was issued.
(2) Whenever the city license officer determines that there is cause for
suspending or revoking any license issued pursuant to this chapter, the officer
shall notify the person holding the license by mail, return receipt requested, of
the determination. Notice mailed to the address on the license shall be deemed
received three days after mailing. The notice shall specify the grounds for
suspension, denial or revocation.
(3) The licensee may appeal the decision of the city officer to deny or revoke
a business license by filing a written notice of appeal to the city council and
paying the appeal fee of $200.00 within 15 calendar days of the city license
officer's decision.
(4) Upon timely receipt of the notice of appeal, the city license officer shall
set a date for hearing the appeal. The city license officer shall mail notice of the
date of the hearing to the licensee at least 15 calendar days prior to the hearing
date.
(5) The hearing shall be de novo. The city council may affirm, reverse or
modify the city license officer's decision. The appeal fee shall be refundable only
if the city council finds in favor of the applicant.
Ordinance No.010-16
Page 5 of 5
(6) The decision of the city council shall be final. Any person desiring to
appeal must file the appropriate action in Kitsap County superior court within 15
calendar days of the city council's decision.
(7) It is unlawful for any such person whose city business license has been
revoked or suspended to continue operation of the business enterprise, or to
keep the license issued to him/her in his/her possession and control, and the
same shall immediately be surrendered to the city license officer. Following
revocation, no business license shall be issued for a period of 12 months to the
person or business entity whose license was revoked, or to any business entity
owned or controlled by such person or entity.
SECTION 6. If any section, sentence, clause or phrase of this ordinance should be held
to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or
unconstitutionality shall not affect the validity of constitutionality of any other section,
sentence, clause or phrase of this ordinance.
SECTION 7. This ordinance shall be in full force and effect on July 1, 2016. A summary
of this Ordinance may be published in lieu of the entire ordinance, as authorized by State Law.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 28th day of June 2016.
Robert Putaansuu, Mayor
YKJL-OUAQ'VK..
ATTEST:
Brandy Rinearson, CMC, City Clerk • CR
• /C* t; ;j o APPROVED AS TO FORM: Sponsored by:
Sharon Cates, City Attorney Bek Ashby, Councilmembor
PUBLISHED: July 8, 2016
EFFECTIVE DATE: July 1, 2016
NOTICE OF CITY OF PORT ORCHARD
ORDINANCE
The following is a summary of an Ordinance approved by the Port Orchard City Council at their regular Council
meeting held June 28th, 2016.
ORDINANCE NO. 018-16
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AMENDING PORT
ORCHARD MUNICIPAL CODE CHAPTER 5.12 "BUSINESS LICENSES" IN RESPONSE TO
STATE ACTIONS RELATING TO MARIJUANA.
Copies of Ordinance No. 018-16 are available for review at the office of the City Clerk of the City of Port Orchard.
Upon written request a statement of the full text of the Ordinance will be mailed to any interested person without
charge. Thirty days after publication, copies of Ordinance No. 018-16 will be provided at a nominal charge.
City of Port Orchard
Brandy Rinearson
City Clerk
Published: Friday, July 8th, 2016