LOCAL LAW

In a somewhat surprising turn of events in April, King County initiated a four-month ban on any new state-licensed cannabis businesses within its borders. The surprise was because King County has been relatively liberal in embracing cannabis businesses licensed by the State Liquor and Cannabis Board. Equally surprising is that the county imposed the four-month ban without any notice to the public or input from effected stakeholders. An additional kicker is that the county this week opted to tighten existing regulations on producers and processors while also expanding access to retailers.

In the 2012 state election, 63.5 percent of King County voters supported Initiative 502 legalizing cannabis. All but five percent of the precincts throughout King County supported I-502. The weakest support came in Maple Valley, Enumclaw, Black Diamond, Federal Way and Hunts Point. But even in those cities, a majority voted in favor of the initiative.

Apparently though, as of April 2016, at least one county council member received multiple complaints from citizens about the “clustering” of cannabis businesses in certain parts of the county and alleged odor issues and property value declines due to the proximity of those businesses. Some King County council members also expressed dissatisfaction regarding a lack of regulations on producers and processors, aside from existing land use and permitting requirements.

“Last month, King County adopted a new ordinance to end the current moratorium, but to further regulate producers, processors, and retailers.”

Last month, King County adopted a new ordinance to end the current moratorium, but to further regulate producers, processors and retailers. This new ordinance will go into effect 10 days after the County Executive signs it. King County’s own website describes the new ordinance as follows:

Removes all parcels under 10 acres and designated as Rural Area (RA) zones from use in the production (growth), processing and retail sale of cannabis . . . [and] requires the County Executive to identify 10 locations suitable for retail in Neighborhood Business (NB) zoned areas across unincorporated King County.

This new ordinance will allow 10 cannabis retailers to enter certain neighborhood business zones which currently have no cannabis shops but it also breaks up “clustering” by mandating new 1,000-foot buffer requirements between retailers. The ordinance limits production and processing facilities to zones with lots of 10 acres or larger, while still allowing producers and processors to locate in agricultural or industrial zones.

There is probably not much that can be done to change this ordinance as the passage of HB-2136 effectively ended the game of chicken between cannabis businesses and local governments regarding the legality of municipalities banning or regulating cannabis business. There is fear is that King County’s ban is a sign of what is to come from other Washington cities and counties that want to fight back against the statewide increase in the number of retail stores.

The bottom line? The bottom line for anyone with a cannabis business or looking to get into the industry remains the same: Make sure you know your local laws before pursuing a cannabis business license or taking any major business step. Cities and counties have proven more than willing to change their minds about cannabis regulations, bans and zoning laws at the drop of a hat.