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No. A city that adopts an ordinance prohibiting the establishment of medical or recreational <br />marijuanabusinesses is not eligible to receive a distribution of state marijuana tax revenues. <br />If the voters in my city vote to reject the ban, when will the Oregon Liquor Control <br />Commission or Oregon Health Authority begin registering or licensingmarijuana <br />businesses? <br />Section 31 of HB 4014 (2016) provides that licensing or registration on the first business day of <br />the January immediately following the date of the statewide general election.This date was <br />chosen to provide an opportunity for cities and counties to adopt localtime, place or manner <br />restrictions, business license ordinances and forms and to take other action required to address <br />issues and concerns relating to the addition of marijuana businesses in the city. Cities dealing <br />with this situation will want to visit with their city attorney to discuss action steps and to further <br />determine if there are home rule or business license possibilities to prohibit some or all <br />marijuana business activities. <br />My city requires businesses to obtain a license to operate, and city ordinance provides <br />that the city will not issue a business license if a business operates in violation of local, <br />state or federal law, creating an effective ban on marijuana businesses. Can we <br />continue to enforce that ordinance instead of adopting a ban using the procedure <br />described in ORS 475B.800? <br />Yes. The League has taken the position that cities may still adopt and enforce their business <br />license ordinances. However, a city should be prepared to defend its authority to do so. <br />1 <br />ORS chapter 475B does not contain a broad express preemption on local government authority. <br />Nothing in ORS 475B makes the ban procedures in the law the exclusive means for prohibiting <br />marijuana businesses. Consequently, the League has taken the position that ORS 475B does not <br />prevent a city from banning marijuana activities through other means, such as adopting or <br />enforcing a business license ordinance that prohibits issuance of a business license to a business <br />operating in violationof local, state or federal law. <br />However, cities that decide to enforce a business license ordinance instead of adopting a ban <br />under ORS 475B.800 should consult their city attorney about the case of City of Cave Junction v. <br />State of Oregon, Josephine County Circuit Court Case #14CV0588, which is currently on appeal <br />before the Oregon Court of Appeals. At issue in that case is whether the city of Cave Junction <br />may enforce its business license ordinance, which prohibits issuance of a business license to a <br />business operating in violation of local, state or federal law. <br />If my city adopts a ban under ORS 475B.800 and the ban is approved by the voters at a <br />statewide general election, will it be possible to repeal the ban at a later time? <br />Yes, ORS 475B.800 provides the mechanism by which a city that has effectively banned <br />marijuana businesses may repeal that prohibition. The process by which a city or county may <br />opt in to allow marijuana businesses is quite similar to the process required (and described <br />above) by which a city opted out of allowing marijuana businesses. <br />1 <br />Section 57 of HB 3400 does provide that Measure 91 supersedes any “inconsistent” local enactments. Although some people <br />have suggested that Section 57 is a broad preemption of local authority, the League disagrees. The liquor control act contains <br />similar wording and the Oregon appellate courts have not interpreted that section to be a broad preemption. For more <br />information and analysis of the inconsistency provision in Measure 91, as amended by ORS 475B, see the memorandum on the <br />League’s A-Z Marijuana Resources webpage entitled, “Measure 91 and Local Control.” <br />Frequently Asked Questions About Local Regulation of Marijuana 5 <br />May 24, 2016 <br /> <br />