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CC 2017-06-27_11a PP_Policy Direction_Non Medical Marijuana local regulations for non-medical marijuana 10/27/2017 1 Main Points Non-medical Marijuana is allowed in the State and the licensing and regulatory processes to allow commercial sales will start January 1, 2018. Local control is a key concept and allows cities to develop regulations that range from prohibition to enacting regulations through zoning and other local licensing programs. The State will not issue licenses that are contrary to local regulations. 2 Tonight’s Item Staff presentation of local aspects of non-medical marijuana legislation (Proposition 64, aka, The Control, Regulate, and Tax Adult Use of Marijuana Act, aka Adult Use of Marijuana Act, aka AUMA) and recommendations Forum for Public Comment and input Receive direction from Council 3 Coordinated Effort City Manager Community Development Director Acting Police Chief Other City Department Heads 4 Allowed by the AUMA The AUMA makes it legal for persons 21 years of age or older to smoke or ingest marijuana products, as well as possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older, without any compensation, 28.5 grams of marijuana (1.005 ounces), or 8 grams of concentrated marijuana, including as contained in marijuana products. They can also possess, cultivate, harvest, dry or process up to six living marijuana plants for personal use. 10/27/2017 5 Not Allowed by the AUMA Smoke or ingest in public Smoking where tobacco use is prohibited Smoke or ingest on or near schools when children are present Open containers in vehicles Manufacture with volatile solvents Smoke or ingest while driving or riding in a vehicle 10/27/2017 6 Three Policy Questions Does the City want to establish regulations on the personal indoor cultivation of non-medical marijuana? Does the City want to allow the personal outdoor cultivation of non-medical marijuana? If personal outdoor cultivation of non-medical marijuana is to be permitted by the City, what level and topics of regulations should be developed? 7 Three Policy Questions (cont.) Does the City want to potentially allow any of the following land uses associated with commercial non-medical marijuana? Cultivation Manufacturing Facilities Volatile Manufacturing Facilities Distribution Facilities Testing Laboratories Retail Sales Locations Delivery Services 8 Staff Perspective Staff’s recommendations are not based on individual views of marijuana use, but from the perspective of how the new law may effect staff’s abilities to meet current policy priorities. Guiding standard: Public Health, Safety, and Welfare Mitigating impacts from incompatible uses Potential impacts both positive and negative 9 Unknowns Unknowns - The State is still in the process of developing its licensing process and the regulations needed to protect the public health, safety, and welfare. Without knowing the details of future State regulations, it will be difficult and time consuming to create effective, enforceable, and fair rules. 10/27/2017 10 Timing Timing – Establishing land uses prior to the voter’s consideration of taxing opportunities to recoup the cost of mitigating impacts. Clear Need – Reward vs Risk 10/27/2017 11 Land Attributes City Land Use Attributes – Most commercial non-medical marijuana land uses with the exception of retail sales, will most likely occur on land zoned industrial or agriculture. The City has a relatively small area zoned for industrial uses (22 acres out of 3,795 acres). The industrial zone also allows a mix of uses including limited residential and is located near school sites. 10/27/2017 12 Land Speculation Land Speculation – Staff is seeing local speculation resulting in substantial increases in land values. While this is not necessarily considered a detriment, the potential rapid and singular intensification of the marijuana industry in a limited area may disrupt the ability of existing local businesses to compete fairly due to the mostly cash marijuana industry and thus it may be prudent to allow the industry to stabilize at this time. 10/27/2017 13 Community Character Community Character – A major aspect to the uniqueness of Arroyo Grande is its rural character which is rooted in large areas of prime agricultural soils adjacent to the Arroyo Grande Creek and the row crops grown in them. Staff believes that large scale outdoor growing of marijuana will either take place in greenhouses or behind fences to protect the crops or both. A transition to this type of agricultural crop should be completed gradually, with input from the farming industry as well as with the larger community. 10/27/2017 14 Recommendation Overview Personal Cultivation Indoors; Regulate consistent with current personal medical marijuana rules; consistency modifications to current medical marijuana rules Outdoors; Prohibit Commercial Uses Prohibit at this time Reconsider in the future after effects are better known 15 Personal Cultivation (Indoors) Cannot prohibit but can enforce reasonable regulations Current medical marijuana performance standards include details such as maximum growing area, visibility, and controlling odor, glare, noise, etc. Current regulations are anticipated to remain adequate at protecting public health, safety, and welfare 10/27/2017 16 Recommendations Staff Recommendation 1 - Make current regulations for medical marijuana applicable to non-medical marijuana. Rationale – Based upon the lack of significant complaints, current performance standards appear to be adequately controlling potential neighborhood compatibility and safety concerns. 10/27/2017 17 Recommendations Staff Recommendation 2 - Make current indoor medical marijuana performance standards consistent with the AUMA specifically related to the ability to grow in all private residences (''private residence" means a house, an apartment unit, a mobile home, or other similar dwelling) and not just in detached single family dwellings. Rationale – Since the AUMA is less restrictive for non-medical use, medical users should not be held to a more restrictive standard based upon residence type. 10/27/2017 18 Recommendations Staff Recommendation 3 – Direct staff to develop policies and definitions related to indoor cultivation in accessory structures that are enclosed and secure for cultivation of medical and non-medical marijuana. Rationale – Since the AUMA prohibits cities from banning indoor cultivation in accessory structures, regulations need to be created defining accessory structures and creating development standards related to the meaning of “enclosed and secure” and location specifications such as setbacks and heights. The less restrictive AUMA language for non-medical use should be applied to medical users so they are not held to a more restrictive standard. 10/27/2017 19 Recommendations Staff Recommendation 4 – Delete the prohibition of cultivation in a garage, kitchen, bathroom or occupied bedroom of the dwelling for both medical and non-medical cultivation. Rationale – The prohibition seems overly restrictive and may not provide sufficient opportunities to cultivate. In addition, prohibiting cultivation in a secured garage may violate the AUMA. 10/27/2017 20 Personal Cultivation (Outdoors) City has experienced neighborhood complaints regarding outdoor cultivation operations mainly due to odor, glare from artificial lighting, noise, vibration from fans, and security issues Currently prohibit outdoor cultivation of medical marijuana City may continue to prohibit outdoor personal cultivation or allow it with reasonable regulations. 10/27/2017 21 Recommendations Staff Recommendation 5 – Prohibit outdoor personal cultivation at this time and allow for reconsideration as the industry and public familiarity increases. Rationale – Due to experience gained through staff involvement of issues surrounding neighborhood compatibility including odors and security, staff is concerned with the efficacy of performance standards and impacts to staffing resources already dedicated to currently identified City goals and projects. 10/27/2017 22 Three Policy Questions (cont.) Does the City want to potentially allow any of the following land uses associated with commercial non-medical marijuana? Cultivation Manufacturing Facilities Volatile Manufacturing Facilities Distribution Facilities Testing Laboratories Retail Sales Locations Delivery Services 23 Commercial Cultivation Outdoor, greenhouse, or indoor cultivation is possible Agriculture and industrial zones Potential community issues could include compatibility situations between agriculture and sensitive uses, such as schools and residential uses, and include sounds, odors, dust and chemicals that may accompany agricultural operations and aesthetic changes to the rural character due to the construction of greenhouses and security fences on large agricultural properties. 10/27/2017 24 Recommendations Staff Recommendation 6 – Prohibit commercial cultivation at this time. Rationale – Due to both experience related to neighborhood compatibility for small operations and the potential for significantly increased impacts for larger operations on City agricultural lands surrounded by sensitive uses, commercial cultivation is not recommended at this time. 10/27/2017 25 Other Commercial Businesses Retail Manufacturing Testing Laboratories Warehousing/Distribution Delivery Services 10/27/2017 26 Recommendations Staff Recommendation 7 – Prohibit dispensaries, manufacturing and related commercial marijuana businesses at this time. Rationale – Such uses are not recommended at this time due to limited land area available for such uses and the proximity to schools and sensitive uses, as well as rigorous permitting and monitoring requirements that would significantly impact staff resources already dedicated to currently identified City goals and projects. If such uses are desired, a tax mechanism should be in place prior to or concurrent to implementation of regulations. 10/27/2017 27 Deliveries Delivery services from outside the City are allowed for medical marijuana Medical marijuana delivery permits - 1 approved, maximum of 3 Well regulated and requires much Police staff time Allows patients access to medical marijuana Deliveries for non-medical marijuana is predicted to be very similar in operation 10/27/2017 28 Recommendations Staff Recommendation 8 – Allow limited deliveries to be permitted in a manner similar to the current process and rules in place for medical marijuana deliveries. Rationale – Limited deliveries are not likely to create adverse impacts as currently regulated. Additionally, the generally less restrictive AUMA language for non-medical use should be applied to medical users so they are not held to a more restrictive standard. 10/27/2017 29 Direction Matrix 10/27/2017 30 Going Forward Receive Direction Staff develops amendments to the Municipal Code Presentation of amendments to and recommendation from the Planning Commission Return to the City Council for consideration of adoption. 10/27/2017 31