CC 2015-11-24_12a Medical MarijuanaItem 12.a. Consideration of DEVELOPMENT OF AN ORDINANCE RELATING TO MEDICAL MARIJUANA
City Council Meeting November 24, 2015
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Background
1996 – CA Proposition 215 “Compassionate Use Act”
2003 – CA Medical Marijuana Program Act, provided clarifications
Uncertainty due to federal law that categorizes marijuana as a controlled
substance
2008 -City Council adopted Ord. 599 prohibiting dispensaries.
2013 – CA Supreme Court local governments have the power to ban dispensaries and Sate Court of Appeals held local
authority to prohibit cultivation.
2015 - October, Gov. Brown signed AB266, AB 243 and SB 643 – Medical Marijuana Regulation and Safety Act (MMRSA).
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Analysis
MMRSA expressly preserves the authority of a City’s zoning power and police power under the State Constitution.
Includes extensive provisions relating to cultivation and contains language
that provides that if a city does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana by March 1, 2016 the State will become the sole licensing
authority.
City may have specific regulations or rely on permissive zoning but some areas may be unclear.
To ensure clarity and consistency for purposes of enforcement, and to ensure
local control (legislation is still evolving) City should adopt and ordinance to prohibit or regulate.
If we proceed with an ordinance, clean up language may be inserted regarding delivery
services consistent with our existing ordinance.
Adopting an ordinance that expressly makes clear that cultivation and all commercial medical marijuana uses are prohibited would provide
an opportunity to reduce enforcement issues relating to cultivation operations.
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Recommendation
It is recommended that the City Council provide direction regarding the development of an ordinance relating to medical marijuana
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AB 243 (Wood) Medical Marijuana
Places the Department of Food and Agriculture (DFA) in charge of licensing and regulation of indoor and outdoor cultivation sites. Creates a Medical Cannabis Cultivation Program within
the department.
Mandates the Department of Pesticide Regulation (DPR) to develop standards for pesticides in marijuana cultivation, and maximum tolerances for pesticides and other foreign
object residue.
Mandates the Department of Public Health (DPH) to develop standards for production and labelling of all edible medical cannabis products.
Assigns joint responsibility
to DFA, Department of Fish and Wildlife (DFW), and the State Water Resources Control Board (SWRCB) to prevent illegal water diversion associated with marijuana cultivation from adversely
affecting California fish population.
Specifies that DPR, in consultation with SWRCB, is to develop regulations for application of pesticides in all cultivation.
Specifies various types
of cultivation licenses.
Directs the multi-agency task force headed by DFW and SWRCB to expand its existing enforcement efforts to a statewide level to reduce adverse impacts of marijuana
cultivation, including environmental impacts such as illegal discharge into waterways and poisoning of marine life and habitats.
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AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, Wood) Medical Marijuana
Protects local control as it establishes a statewide regulatory scheme, headed by the Bureau of Medical Marijuana Regulation (BMMR) within the Department of Consumer Affairs (DCA).
Provides
for dual licensing: state will issue licenses, and local governments will issue permits or licenses to operate marijuana businesses, according to local ordinances. State licenses will
be issued beginning in January 2018.
Revocation of a local license or permit will unilaterally terminate the ability of the business to operate in that jurisdiction.
Expressly protects
local licensing practices, zoning ordinances, and local constitutional police power.
Caps total cultivation for a single licensee at four acres statewide, subject to local ordinances.
Requires
local jurisdictions that wish to prevent delivery services from operating within their borders to enact an ordinance affirmatively banning this activity. No specific operative date for
the ban is specified.
Specifies that DCA will issue the following licenses: Dispensary, Distributor, Transport, and Special Dispensary Status for licensees who have a maximum of three
dispensaries. Specifies various sub-categories of licensees (indoor cultivation, outdoor cultivation, etc.)
Limits cross-licensing to holding a single state license in up to two separate
license categories, as specified. Prohibits medical marijuana licensees from also holding licenses to sell alcohol.
Grandfathers in vertically integrated businesses (i.e. businesses
that operate and control their own cultivation, manufacturing, and dispensing operations) if a local ordinance allowed or required such a business model and was enacted on or before
July 1, 2015. Also requires such businesses to have operated in compliance with local ordinances, and to have been engaged in all the covered activities on July 1, 2015.
Requires establishment
of uniform health and safety standards, testing standards, and security requirements at dispensaries and during transport of the product.
Specifies a standard for certification of testing
labs, and specified minimum testing requirements. Prohibits testing lab operators from being licensees in any other category, and from holding a financial or ownership interest in any
other category of licensed business.
Includes a labor peace agreement under which unions agree not to engage in strikes, work stoppages, etc. and employers agree to provide unions reasonable
access to employees for the purpose of organizing them. Specifies that such an agreement does not mandate a particular method of election.
Provides for civil penalties for unlicensed
activity, and specifies that applicable criminal penalties under existing law will continue to apply.
Specifies that patients and primary caregivers are exempt from the state licensing
requirement, and provides that their information is not to be disclosed and is confidential under the California Public Records Act.
Phases out the existing model of marijuana cooperatives
and collectives one year after DCA announces that state licensing has begun.
Preserves enforcement authority of the city of Los Angeles with respect to Measure D, the local regulatory
structure for medical marijuana within the city limits.
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SB 643 (McGuire) Medical Marijuana
Directs the California Medical Board to prioritize investigation of excessive recommendations by physicians.
Imposes fines ($5000.00) against physicians for violating prohibition against
having a financial interest in a marijuana business.
Recommendation for cannabis without a prior examination constitutes unprofessional conduct.
Imposes restrictions on advertising for
physician recommendations.
Places DFA in charge of cultivation regulations and licensing, and requires a track and trace program.
Codifies dual licensing (state license and local license
or permit), and itemizes disqualifying felonies for state licensure.
Places DPR in charge of pesticide regulation; DPH in charge of production and labelling of edibles.
Upholds local
power to levy fees and taxes.
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