CC 2017-09-26_10a PP_Intro Ordinance_Marijuana Regulations
REGULATIONS FOR MARIJUANA AND MARIJUANA DELIVERY SERVICES
(DEVELOPMENT CODE AMENDMENT CASE NO. 17-003)
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AMENDMENTS TO THE ARROYO GRANDE MUNICIPAL CODE
CHAPTER 16.62 OF TITLE 16 – Cannabis
CHAPTER 5.95 OF TITLE 5 - Cannabis Delivery Services
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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.
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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
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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
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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.
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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)
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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
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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.
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consistent with the AUMA
Making sure rules are clear in light of evolving state legislation
measured approach
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Questions
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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.
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Direction Matrix
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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
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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.
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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.
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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.
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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.
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Other Commercial Businesses
Retail
Manufacturing
Testing Laboratories
Warehousing/Distribution
Delivery Services
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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.
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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
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