Note from TheGardeningSnail: the following may have been prepared by running a PDF Image file through a program that converts Image to Print. My Apologies for any Textual Gremlins that may have crept in.
STAFF REPORT
AGENDA ITEM: Waive Second Reading of and Adopt Ordinance No. 632, an Ordinance of the City Council of the City of Livingston Amending Title 5, Chapters 2, 3, 5 and 7 of the Livingston Municipal Code to Allow Limited Commercial Cannabis Activities, Prohibit Personal Outdoor Cultivation of Cannabis, and Allow Indoor Personal Cultivation of up to Six Cannabis Plants by Qualified Adults
MEETING DATE: December 19, 2017
PREPARED BY: Jose M. Sanchez, City Attorney
RECOMMENDATION:
Waive second reading of and adopt Ordinance No. 632, an Ordinance of the City Council of the City of Livingston Amending Title 5, Chapters 2, 3, 5 and 7 of the Livingston Municipal Code to Allow Limited Commercial Cannabis Activities, Prohibit Personal Outdoor Cultivation of Cannabis, and Allow Indoor Personal Cultivation of up to Six Cannabis Plants by Qualified Adults.
BACKGROUND AND ANALYSIS:
On December 5, 2017, the City Council introduced and waived the first reading of this comprehensive Ordinance addressing commercial cannabis uses and personal cannabis cultivation within the City. It is now before the Council for final adoption. At the December 5th Council meeting, the following amendments were made to the Ordinance (shown in the redlined version attached to this report):
– Size limitations were removed for indoor and mixed light (greenhouse) commercial cultivation operations (pages 6-7, and 9);
– The buffer between commercial cannabis businesses and residential uses, parks and libraries was increased from 200 feet to 400 feet, with the exception of testing labs, which must be at least 200 feet away from these sensitive uses (page 10);
– Language was added to allow any affected party, or a Council Member, to appeal or call up the Planning Commission’s decision on a commercial cannabis permit (page 12);
– Security measures were heightened to require “key card” access for entry and exit to a cannabis business, and also to require deadbolts on certain doors and identity screening of visitors (page 18);
– Firearms are permitted at a cannabis business, if carried legally by a business owner or properly licensed security personnel (page 19); and
– Proper waste disposal requirements were added for personal cannabis cultivation (page 23).
History:
Cannabis businesses (commercial uses) are currently prohibited in Livingston. The City also regulates personal (non-commercial) cannabis cultivation, only allowing qualified patients and caregivers to grow up to two medical cannabis plants outdoors at a residence. The City also currently allows for the indoor cultivation of six plants by individuals 21 years of age and older as required by Proposition 64, however, this is not reflected in the City’s Code. At a joint meeting of the Planning Commission and the City Council on October 3, 2017, direction was given to City Staff to draft an Ordinance to allow certain cannabis businesses to operate in the City, and to allow limited indoor personal cultivation of cannabis subject to reasonable regulations as allowed for by state law.
On November 15, 2017, the Planning Commission held a public hearing on a proposed Ordinance amending the Municipal Code to allow limited, non-retail cannabis businesses in the City and to also allow limited personal cultivation of cannabis within a private residence.
Extensive regulations for both commercial cannabis activities and personal cultivation are included in the Ordinance to address public safety concerns, to prevent negative impacts on adjacent properties, to ensure cost recovery by the City, and to require buffers between cannabis businesses and schools, daycares, youth centers, parks, and libraries.
Recent legislation enacted by California voters and the state Legislature allows for medical and recreational cannabis businesses to obtain state licenses in 2018, if the local jurisdiction where the business wants to locate allows the use. These businesses will include retail storefronts, manufacturers of cannabis products, distributors, cultivators, and testing -labs. Additionally, changes to state law require that cities allow adults 21 years of age and older to grow up to six cannabis plants within their private dwelling (property owners, however, may still prohibit it).
At the November 15th meeting, the Planning Commission approved a Resolution recommending that the City Council approve the proposed Ordinance with some amendments. On December 5th the Council introduced the Ordinance with several amendments to implement the Planning
Commission’s recommendations. The City Council now has before it an Ordinance that:
…,. Brings the City’s personal cannabis cultivation regulations in line with state law by allowing adults 21 year of age and older to grow up to six plants inside a private residence (property owner permission is required and building regulations must be met); personal outdoor cultivation would be prohibited;
Allows limited commercial cannabis uses (manufacturing, testing, indoor cultivation, distribution, and medical cannabis delivery) to obtain a City permit, approved by the Planning Commission, to operate within limited areas of the City, as follows:
• Cannabis testing laboratories allowed within the C-3 (service commercial), M-1 (limited industrial), and M-2 (general industrial) zones;
• Cannabis manufacturing (oil extraction, food, and topical production), indoor cultivation, distribution businesses, and microbusinesses (no retail; no outdoor cultivation) allowed within M-1 (limited industrial), and M-2 (general industrial) zones; and
• Medical cannabis delivery throughout the City (originating from outside the City).
Requires that cannabis businesses be located at least 600 feet from schools, daycares, and youth centers;
Requires that cannabis businesses be located at least 400 feet from residential uses, parks, and libraries; testing labs must be at least 200 feet from these sensitive uses;
Requires stringent security and operational standards to reduce negative impacts of the businesses and increase the likelihood that the City has legitimate, successful businesses;
Authorizes the City Council to set the maximum number of businesses for each allowed use by Resolution;
Authorizes the City Manager to create the application process for the discretionary cannabis permit;
Designates the Planning Commission as the approval body for the discretionary permit with appeals going to the City Council;
Requires each cannabis business to enter into an operational agreement with the City, whereby the City collects impact fees and contributions to offset any excessive staff time and enforcement activity required by the business and to ensure a positive impact on the community; and
Authorizes the City Council to set permit fees by Resolution.
History of the legalization of cannabis in California:
Medical cannabis has been legal in California since 1996 when voters enacted the Compassionate Use Act (“CUA”). Codified in the State’s Health and Safety Code, it provides qualified patients with an affirmative defense to criminal charges for possession of a reasonable amount of cannabis needed for medical conditions. In 2003, the California Legislature adopted the Medical Marijuana Program Act (“MMPA”). This law enhanced access to medical cannabis for qualified patients and caregivers by allowing for collective, cooperative cultivation projects (known as “dispensaries”). The State enacted the Medical Marijuana Regulation and Safety Act (“MMRSA”) in September 2015, instituting a comprehensive state-level licensure and regulatory scheme for cultivation, manufacturing, distribution, transportation, laboratory testing, and dispensing of medical cannabis. Since then, MMRSA was renamed the Medical Cannabis Regulation and Safety Act (“MCRSA”). It legalized and regulated for-profit commercial medical marijuana activity in California, and phases out the current “nonprofit” collective and cooperative model. MCRSA also provided that cities and counties retain local regulatory authority over medical cannabis.
In November 2016, California voters passed Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”), legalizing recreational cannabis use for adults 21 years of age and older with certain restrictions. The new law mirrors MCRSA in many respects, and creates a comprehensive regulatory and licensing structure for commercial nonmedical cannabis businesses-from cultivators to manufacturers, to retailers. It also requires cities and counties to permit adults 21 years of age and older to cultivate up to six (6) cannabis plants inside a private residence. Local jurisdictions may still prohibit all outdoor cultivation.
In an attempt to better align the regulations for medical and nonmedical cannabis businesses, the California Legislature passed Senate Bill 94 in June 2017, which was signed by the Governor and went into effect immediately. Senate Bill 94 repealed much of MCRSA and merged certain portions of that law with AUMA to create a more comprehensive regulatory structure for both medical and recreational cannabis. The new comprehensive regulatory system created by Senate Bill 94 intended to regulate all commercial cannabis uses, is called the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The State Bureau of Cannabis Control is currently working with several State agencies to draft regulations for all of the various license types. State licenses for all cannabis businesses are expected to be ready for issuance in January 2018, or soon after.
General Plan and CEQA:
The Planning Commission found that the Ordinance is consistent with the overall goals, objectives, policies, and programs of the General Plan to maintain a balance of land uses that provides for economic development, diversified industrial uses, and increased employment opportunities with commercial and industrial employers to support a fiscally sound community. The Ordinance is consistent with the General Plan land use policies in that it allows for limited cannabis uses in industrial and commercials zones of the City, and ensures appropriate buffers between these uses and residential areas and other sensitive uses.
Because the ordinance requires a cannabis business to obtain a discretionary use permit from the City, it is exempt from further environmental review under the California Environmental Quality Act (CEQA) per Business and Professions Code section 26055(h). Each individual cannabis permit applicant would be required to follow CEQA review regulations at the time an application is submitted. The proposed changes in personal cannabis cultivation are exempt from CEQA review requirements pursuant to section 15061(b)(3) which is the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and CEQA does not apply where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment.
ATTACHMENTS:
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