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City staff proposes clearer application window, $50 fee and lottery rules after state cannabis law change
Summary
City staff recommended amending the city's cannabis ordinance to set a defined application period, use a random lottery if more than two qualifying applicants apply for each zone, and add a nominal $50 application fee; staff also warned a recent state tax change eliminated local cannabis revenue sharing.
City staff presented proposed amendments to the local cannabis ordinance after recent state-level changes.
Mr. Huttenon briefed the council that a state law change that took effect May 25 allows local governments to issue retail registrations to applicants who hold preliminary state licenses. He said the city's original ordinance left the registration timing and tie-breaking process vague, and recommended a clearer process: post a defined application window with a firm closing date, accept complete applications within that period, and if more than two compliant applicants apply for a permitted zone, select recipients by a random lottery and name alternates to fill spots if winners do not open in time.
To reduce frivolous applications and offset review costs, Huttenon suggested a nominal application fee of $50. He said staff has been receiving heavy inquiry—"as many as 10 to 12 businesses" per week—about registration and zoning compliance.
Huttenon also warned that a legislative tax bill approved at a special session removed the prior local cannabis government aid: "Previously ... up to 20% of the sales tax collected for cannabis sales would be dispersed back to local government. That is gone ... that amount is now 0," he said, noting the state will retain sales tax revenue and local compliance and zoning review will be a local expense.
With council direction, staff said it would draft the amended ordinance for consideration at the next meeting. No ordinance amendment vote was taken at this session.
