In 2014, the Sparks City Council amended Title 5 (Business Licenses, Taxes and Regulations) and Title 20 (Zoning) of the Sparks Municipal Code to provide for, respectively, the issuance of business licenses to, and land use approvals for, Medical Marijuana Establishments (MME).

In November 2016, Nevada citizens approved an Initiative (also known as Question 2) to regulate businesses and to tax marijuana sales to adults 21 years or older. The ballot measure, codified in NRS Chapter 453D, also provides for the operation and taxation of marijuana establishments, which will be regulated by the Nevada Department of Taxation (the “Department”). The Department has until December 31, 2017 to adopt all the regulations necessary to carry out the provisions of NRS 453D to provide for the taxation and regulation of marijuana establishments. Regulated marijuana establishments are cultivation facilities, testing facilities, product manufacturing facilities, distributors and dispensaries.

On May 8, 2017, the Tax commission adopted temporary regulations that will allow existing Medical Marijuana Establishments (MME) that are in good standing with the State of Nevada to apply for a temporary license to sell, manufacture, cultivate or produce non-medical marijuana. Existing MMEs can apply to the Department by May 31^, 2017 for a temporary license. The Department has indicated its intention to approve MMEs to begin cultivating, processing, testing and distributing and selling non-medical marijuana on July 1, 2017. The Department is using the term “marijuana establishment” to refer to such businesses.

Title 20 does not include (non-medical) Marijuana Establishments as a permitted use in any of Sparks’ zoning districts. On April 10, 2017, the Sparks City Council directed the City Manager to prepare, for future City Council consideration, amendments to Title 20 to permit existing MMEs in Sparks to be approved as marijuana establishments, which City staff are referring to as “at retail” marijuana establishments.  On that date, the City Council also directed the City Manager to prepare amendments to Title 5 to enable the City to license existing MMEs for at retail operations.

The City of Sparks requires all MMEs to be reviewed through the Administrative Review process. Per State regulations, all MMEs must be located over 1,000 feet from a public or private school and 300 feet from a community facility (park, church, day care, playground, public swimming pool, facility with the primary purpose to provide recreational opportunities or services to children and adolescents).

In Sparks, cultivation, production (making oils or other products) and testing of medical marijuana are only allowed to operate within the Industrial zoning district. There are restrictions on loading/unloading procedures and hours of operation. Operators must provide a written safety plan, comply with air quality emission standards and no smoking or consumption of any marijuana or products is permitted on the premises. In Sparks, there are six licensed cultivation operations, six licensed production facilities and two licensed testing laboratories.

By State law, the maximum number of allowed medical marijuana dispensaries in Sparks is three. The City restricts medical marijuana dispensaries to the Mixed-Use District – Mixed Use Commercial (MUD-MUC), General Commercial (C2) zoning districts and Industrial (I) zoning district. In the Industrial zoning district, dispensaries are restricted to buildings with public access readily visible from the arterial upon which the dispensary is situated. Some portion of the dispensary parcel must be located within 1,000 feet, as measured from the center, of the following intersections: McCarran Boulevard and Glendale Boulevard; McCarran Boulevard and Greg Street; and Rock Boulevard and Glendale Avenue. Medical marijuana dispensaries cannot be located within 1,000 feet of a Nevada licensed substance abuse treatment centered as measured from the front door. The maximum size of the patient access area of a medical marijuana dispensary is 2,500 square feet. There are restrictions on loading/unloading procedures and hours of operation. Operators must provide a written safety plan and no smoking or consumption of any marijuana or products is allowed on the premises. All three medical marijuana dispensaries in Sparks are in the Industrial zoning district.

It is anticipated that the Department will publish the permanent regulations by the end of 2017. The City Council can then decide if they want to again amend the Sparks Municipal Code to allow businesses other than the existing medical marijuana establishments to grow, produce or sell at retail marijuana.

On June 1, 2017, the Planning Commission conducted a public hearing on CA-2-17. The planning commission recommended that the City Council approve the amendment to Title 20.

This agenda item proposes changes to Title 20, the City ‘s zoning code, to permit existing MMEs to operate as a marijuana establishments, as codified in NRS 453D and referred to, in the proposed Title 20 changes, as “at retail” marijuana establishments.

The proposed code amendments are to Sections 20.03.025 Medical marijuana dispensary and 20.03.026 Medical marijuana production, testing and cultivation.

The proposed ordinance(attached) has the language to be removed shown as strike-out text and the proposed new text is underlined and in red.

In Section 20.03.025, the permitted use will remain “medical marijuana dispensary.” The proposed amendments to the code include administrative changes such as removal of the City’s intent in the preamble and some changes to the reference to the State of Nevada. Where the code references medical marijuana as a product or item, the proposed amendment removes the word medical to allow the sales of marijuana and marijuana-infused products. The other requirements for operations, loading/unloading, and hours of operation do not change with this proposed code amendment. Section D is added to allow the existing three dispensaries to sell or dispense marijuana at retail as allowed by state law if approved by the state provided the establishment has an existing approved Administrative Review.  Medical marijuana dispensaries approved to sell at retail marijuana must comply with their Administrative Review conditions of approval.

For Medical marijuana production, testing or cultivation, Section 20.03.026, the code amendments reference the state rather than a specific state agency. The code amendment also changes the term “production facility” to facility for production of edible marijuana or marijuana-infused products. The facilities are still referred to as medical marijuana establishment however, the item that is being grown, produced or tested is now referred to as marijuana and the code does not distinguish between medical and retail marijuana.  Section C allows an approved medical marijuana cultivation facility, testing laboratory or facility for the production of edible marijuana products or marijuana-infused products to operate at retail as allowed by state law. The Administrative Review approval for the existing medical marijuana establishment applies to the retail component and the business must comply with the conditions of approval for the Administrative Review.

In Section 20.08.002 Definitions, the code amendment proposes a new use. The new use is At Retail Marijuana which is defined as marijuana cultivated, produced and processed into edible or marijuana-infused products, tested or sold for consumption by adults over the age of 21 who do not possess a medical marijuana card in accordance with Nevada Revised Statues Chapter 453D.

1. The City Council can direct the City Manager to not take any action on the proposed amendments to SMC Chapter 20.03.
2. The City Council can provide alternative direction to the City Manager.

I move to adopt Bill No. 2720 amending Title 20 of the Sparks Municipal Code.