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HomeMy WebLinkAbout 4.1 RECREATIONAL CANNABIS ACT: DISCUSSION OF ORDINANCES FOR CONSIDERATION IN THE VILLAGE OF MOUNT PROSPECT4/17/2020 BoardDocs® Pro Agenda Item Details Meeting Oct 08, 2019 - JOINT VILLAGE BOARD AND PLANNING & ZONING COMMISSION - COMMITTEE OF THE WHOLE Ca t e g o r y 4. DISCUSSION ITEMS Subject 4.1 RECREATIONAL CANNABIS ACT: DISCUSSION OF ORDINANCES FOR CONSIDERATION IN THE VILLAGE OF MOUNT PROSPECT Access Public Type Discussion Public Content Background and History Public Act 101-0027, which creates the Cannabis Regulation and Tax Act (the ""Act"'), was signed into state law on June 25,, 2019 by the Illinois General Assembly and goes into effect January 1,, 2020. The Act legalizes the sale of adult use recreational cannabis and regulates possession, sale, and consumption. It also defines the various types of cannabis business establishments and regulates each. The Act in its full form (600+ pages) can be accessed at the following link: htt• 9�9_-_g gislation/publicacts/101/101-0027.htm. At the September 24, 2019 Joint Committee of the Whole/Planning and Zoning Commission meeting, staff and legal counsel provided information on the Act and answered various questions on the topic to both the Village Board and the Planning and Zoning Commission. The Village heard public input from various organizations., businesses and residents regarding the potential retail sale of recreational cannabis in the Village. The Village Board also provided direction as to what type of regulations could be appropriate, should the board decide to allow retail sale. Follow Up Information Based upon question raised at the Joint COW meeting by the public, commission and board, the following is additiona' information on the regulatory details of the Act, and how the Village can propose to address the issues raised. Tax im Should the Village allow retail sale of recreational cannabis, the Village may impose an additional tax of up to 3.0% ("Cannabis Retailers Occupation Tax"). This is in addition to the 1.0% regular and 1.0% home -rule sales taxes already in place in the Village. The estimated local sales tax generated through a single recreational cannabis retailer is just over $400,000 per year. The amount of tax the village can collect in this fashion does not have w! and is separate from any moneys received through the disbursement of the state"s Cannabis Regulation Fund. Transportation of cannabis. Transport of cannabis for retail sale (not individual possession) is regulated as a Cannabi Business Establishment under the Act. These transporters must be licensed by the Illinois Department of Agriculture and are the only distributors of product to Cannabis Dispensing Organizations (retailers). In the attached opt -in ordinance, this business type would be a conditional use only in the Il Light Industry zoning district. I Nuisance ordinances. Related to personal consumption of cannabis to the point of nuisance, all regulations within Chapter 23, Article XIV would apply. This includes nuisances as defined as: Any condition or use of any premises which is detrimental to the property of others, a threat to health or safety, or which causes or tends to cause substantial diminution in the value of other property. Nuisance shall also include all conditions set forth in section 23.1403 of this article, any other condition declared to be a nuisance in this code, and any condition declared to be ? nuisance in 720 Illinois Compiled Statutes 5/47-5. Regulations contained within Article XIV include abatement procedures, including applications of injunctive relief and nuisance fees. Cultivation and registration of cannabis Under the Act, only registered medical cannabis patients over 21 year I of age may participate in home cultivation of a maximum of five plants. Plants may not be cultivated in an area subject to public view and precautions must ensure that the plants are secure from unauthorized access or access byl https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 1/3 4/17/2020 BoardDocs® Pro a person under 21 years of age. Cultivation must occur in an enclosed locked space on residential property lawfully i possession of the medical cannabis patient or with the consent of the person in lawful possession of the property. An owner or lessor of residential property may prohibit the cultivation of cannabis by a lessee. The Village cannot prohibill home cultivation in these circumstances; however, a registration system would be created for those choosing to cultivate. Similar to the Village rental license registration programthe cultivator must register with the Village or be subject to potential for a ticket or fine should the Village be made aware of unregistered plants. Note that the registration must comply with the Act and HIPPA laws, meaning it would not be possible for the Village to proactively target specific persons to register - the burden is on the cultivator to register should they choose to grow in their residence. I Action to Consider: Qpt-Out ODtion One of the actions that could be considered at a future public hearing is 'Atopting out"". Opting out simply prohibits the recreational retail sale and associated growing and manufacturing businesses (""Cannabis Business Establishments"") from occurring within the Village boundaries. It will not prohibit residents from purchasing cannabis elsewhere and consuming in legal locations (such as a private residence) within the Village. It will also not prohibit those with a medical card from purchasing at the Village's current medical cannabis dispensary, nor will it prohibit home cultivation for those with medical cards per the Act. As contained in the draft opt -out ordinance, the ordinance also includes a provision to prohibit any Cannabis Lounge or Social Space. Certain societal impacts of legalization, such as impaired driving and medical emergency calls, will still apply to the Village even if an opt -out ordinance is approved. Opting out does not impact the amount of funds the Village will receive through the Cannabis Regulation Fund. Per the Act, 8.0% of state revenue deposited in the Cannabis Regulation Fund (consisting of state excise and sales taxes, and licensing fees) will be transferred to the Local Government Distributive Fund, to fund crime prevention programs, training, and interdiction efforts relating to the illegal cannabis market and cannabis -based DUIs. The groundwork for spending these funds is not yet in place; a sort of audit -based system is expected to ensure the funds are spent in accordance with the Act. Staff does not have an estimate of what these revenues will be for the Village. Action to Consider: O,pt-In 0 and Proposed Re, ullation The approval of the Cannabis Regulation and Tax Act has led to the creation of many different supporting businesses, including dispensaries, craft growers., cultivation centers,, processors, transporters., infusers., etc. All of these Cannabis Business Establishments are addressed in the attached draft opt -in ordinance. The following summarizes the proposed ""opt -in"" text amendments, including restrictions proposed in the draft ordinance, based upon feedback at the prior COW meeting and internal analysis. Notation in parentheses identifies which section this language is found. • Definitions of each Cannabis Business Establishment type, as well as supporting terms such as "Cannabis Lounge or Social Space" would be added to Chapter 11 Merchants, Businesses, Occupations and Amusements" This chapter would have an entire section, Article XLI, devoted to Cannabis Business Establishments. [Item 2 • Details of the operation of a dispensing organization, including minimum age of 21 to purchase, how to verify age, and what building enhancements must be completed for any retail dispensary (such as installation of video security cameras). Also included in the regulations include adverting restriction. Note that the hours of operation per the Act are 6 AM through 10 PM, though the Village may further restrict hours of operation eithe via code or conditional use process. [Items 3,, 5f 6., 8f 9f 11f 14,, and 15] • Language prohibiting any Cannabis Lounges or Social Spaces is included, which would prohibit any restaurant or other business from allowing on-site consumption. [Item 7] • Language regarding unlawful operation of any cannabis business establishment is included, including provision for the Village Manager to suspend or revoke business licenses and conditional use permits if necessary. [Item., 12 and 13] Operation of a motor vehicle by any person under 21 under the influence of cannabis is deemed unlawful. [Item 10]. All other DUI regulations apply for those over the age of 21 as noted in Village Code Section 18 . 501 �W � SX411M= Each type of Cannabis Business Establishment is listed in the Use Table (Section 14.604rather than grouping them as a whole. This allows the board to decide on each business type and also ensures that definitions of what constitute a "business establishment" are not changed over time. Cannabis Dispensing Organizations (dispensaries) would be a conditional use in the B3 and I-1 zoning districts. All others (growers/cultivators, infusers, processors or transporters) would be a conditional use in the I-1 zoning district. 0 No zoning districts were identified for a permitted use for any cannabis business establishment. The zoning code would further restrict location, prohibiting any facility from operating within 100 feet of any public or private nursery school, preschool, primary, or secondary school,, church/place of worship or hospital. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 2/3 4/17/2020 BoardDocs® Pro This restriction mirrors the liwuor code. A map of this restriction is attached to the memo_. ® Additional distance restrictions were considered, including 250 feet and 500 feet of a school, church or hospital. These maps are also attached for reference. The code also ensures that cannabis business establishments are located a minimum of 1,500 feet from each other. Taxation Also included for review is a taxation ordinance. This ordinance would correspond with any opt -in ordinance, and allow the Village to collect the maximum 3% Cannabis Retailers Occupation Tax in addition to home rule and regular sales taxes. 1. Motion to refer an Opt Out Ordinance to the Village Board for review. 2. Motion to refer an Opt In Ordinance to the Planning and Zoning Commission for Public Hearing. 3. Discretion of the Village Board. 9 Estimated $440,000 in retail sales taxes annually for each retail dispensary, if approved. In either case (opt -in or out), the Village will receive its portion of the state"s Cannabis Regulation Fund. Rough estimates based upon the state"s projected revenue for cannabis sales have this dollar amount at $3 per capita, or $168,000 annually. Map with 100' restriction.jpg (642 KB) Map with 500' restriction.pdf (2.,502 KB) Map with 250' restriction.pdf (2,,429 KB) Opt -Out Draft Ordinance October 2019.docx (19 KB) Opt -In Draft Ordinance 10.08.2019.docx (34 KB) Opt -In Taxation Draft Ordinance.docx (29 KB) Opt -In Draft Ordinance 10.08.2019 REVISED 10 8 2019.docx (34 KB) Administrative Content Executive Content https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 3/3