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CC 2017-09-26_10a PP_Intro Ordinance_Marijuana Regulations REGULATIONS FOR MARIJUANA AND MARIJUANA DELIVERY SERVICES (DEVELOPMENT CODE AMENDMENT CASE NO. 17-003) 10/27/2017 1 AMENDMENTS TO THE ARROYO GRANDE MUNICIPAL CODE CHAPTER 16.62 OF TITLE 16 – Cannabis CHAPTER 5.95 OF TITLE 5 - Cannabis Delivery Services 10/27/2017 2 Background Adult Use of Marijuana Act (AUMA) 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. 3 Previous Council Direction On June 27, 2017, the City Council considered the need for local regulations for land uses associated with the AUMA The Council directed the preparation of an ordinance to: prohibit outdoor cultivation and all commercial uses, except allow limited delivery services, and; regulate personal cultivation for non-medical marijuana consistent with existing City regulations for medical marijuana The Planning Commission recommended adoption of the proposed ordinance on September 5, 2017 4 Personal Cultivation (Indoors) Cannot prohibit but can enforce reasonable regulations Current 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 5 Personal Cultivation (Indoors) cont. The Proposed Ordinance clarifies the definition of private residence and the requirement to allow cultivation in accessory structures consistent with the AUMA: A private residence means a house, an apartment unit, a mobile home, or other similar dwelling, and not just in detached single family dwellings; Indoor cultivation may occur in accessory structures that are enclosed and secure for cultivation of medical and non-medical marijuana; and The prohibition of cultivation in a garage, kitchen, bathroom or occupied bedroom of the dwelling is deleted for both medical and non-medical cultivation as it was considered overly restrictive and may not provide sufficient opportunities to cultivate. 10/27/2017 6 Prohibitions Proposed ordinance continues to prohibit the following uses at this time but allows for reconsideration as the industry and public familiarity increases: Outdoor personal cultivation Commercial cultivation (including outdoors, in greenhouses, or in industrial buildings under artificial lighting) Other Commercial Marijuana Businesses (including brick-and-mortar retail, manufacturing, storage, distribution, and testing facilities) 10/27/2017 7 Allowed Deliveries Delivery services from outside the City are currently allowed for medical marijuana Medical marijuana delivery permits - 1 approved, maximum of 3 Well regulated, required Police staff time to set up but expected to be manageable going forward Deliveries for non-medical marijuana is predicted to be very similar in operation The proposed ordinance modifies current regulations so that they are applicable to non-medical operations as well 10/27/2017 8 Recommendation The Planning Commission recommends that the City Council introduce the proposed Ordinance amending Chapter 16.62 of Title 16 and Chapter 5.95 of Title 5 of the Arroyo Grande Municipal Code relating to marijuana and marijuana delivery services prohibits all commercial marijuana activity within the City except for limited delivery; bans outdoor cultivation; and reasonably regulates indoor cultivation. The proposed ordinance is intended to provide consistency with the AUMA that our rules are clear in light of evolving state legislation, and a measured approach. 10/27/2017 consistent with the AUMA Making sure rules are clear in light of evolving state legislation measured approach 9 Questions 10/27/2017 10 Recommendations Allows 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 11 Direction Matrix 10/27/2017 12 Considerations how the new law may effect staff resources to meet current policy priorities. Guiding standard: Public Health, Safety, and Welfare Mitigating impacts from incompatible uses Potential impacts both positive and negative 13 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 14 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 15 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 16 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 17 Other Commercial Businesses Retail Manufacturing Testing Laboratories Warehousing/Distribution Delivery Services 10/27/2017 18 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 19 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 20