CC 2018-06-12_12a AGMC_Cannabis Delivery Services_PP Presentation
CONSIDERATION of options relating to AMENDing THE Arroyo Grande Municipal Code REgarding the cITY LICENSING of CANNABIS DELIVERY SERVICES
6/14/2018
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What is This Item About?
Communication with the Council by staff and the public regarding:
A check-in related to adopted City policy regarding commercial cannabis activities
Identification of issues with implementation
Recommendations for improving the effectiveness of the policy
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Prior Discussion (Issue Identification)
New industry
Evolving State regulations
Local Land Use Control
Special Land Use factors
Limited Financial and Staff Resources
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Recommendations (Policy Formulation)
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Rationale (Policy Formulation)
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Policy Goals (Policy Formulation)
Prohibit commercial land uses
Allow reasonable indoor cultivation
Prohibit outdoor personal cultivation
Allow access to home delivery by patients and most recently recreational consumers
Require a local delivery license
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Policy Adoption
October 10, 2017 - The City Council adopted Ordinance 687
November 9, 2017 - Ordinance 687 becomes effective.
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Policy Implementation
Evolving Regulatory Environment
State Regulations
Local Regulations
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State Requirement - Premises
The State now requires a premises
Why? The State wants an established business location, where they can inspect if they choose to do so, to assure compliance with State Cannabis Regulations.
What happens in the premises? Cannabis products are stored there, drivers pick-up product and return, most likely large sums of cash will be stored on site.
The State does have minimum regulations for:
Location
Security
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Local Permits
Commercial Cannabis Uses are prohibited
The City can issue up to 3 Local Delivery Licenses
These licenses allow delivery of medical and recreational cannabis to be conducted into the City.
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Disagreement (Policy Implementation)
Disagreement in the meaning of the AGMC
The only delivery permit holder has been trying to establish a retail non-storefront on East Grand Avenue to satisfy the State requirement premises
The AGMC prohibits commercial cannabis uses
Communication with the State Bureau of Cannabis Control
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Arguments to Establish a Retail Non-Storefront Location
The City issued a permit to deliver.
The permit holder asserts the State says they must have a premises in the City.
At one point, the State was told that the use appears consistent with the permit issued by the City to provide delivery services only in the City of Arroyo Grande.
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Commercial Uses are Prohibited
Commercial Cannabis Uses are Prohibited
Staff believes that the plain language of the AGMC and the clear legislative history prohibits commercial cannabis land uses in the City but allows legally established cannabis retailers
located outside the City to deliver cannabis products into the City after receiving a local delivery license from the Arroyo Grande Police Department.
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Unorthodox Process
Interpretation to allow the use creates a glaring lack of forethought in process, no opportunity for public review, and is not legally defensible:
No intent for a single, much less up to three, brick and mortar operations for delivery services in the City.
Complete lack of mention of non-storefront retail cannabis uses in any land use tables such as Table 16.36.030(A) – “Uses Permitted Within Mixed Use and Commercial Districts”
Lack of any general development standards, performance standards, or specific use development standards for cannabis uses that are known for safety and compatibility concerns by the
public and professional staff.
1/23/2018
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Moving Forward
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Moving Forward
Maintain the prohibition on all commercial cannabis activities, with the exception of delivery by Cannabis Delivery Services licensed by the City pursuant to Chapter 5.95 of the Arroyo
Grande Municipal Code.
Maintain the prohibition on all commercial cannabis activity, but modify the AGMC to instead rely on the new State licensing and delivery regulations as it relates only to delivery services.
Provide direction to amend the City’s Municipal Code and allow Non-Storefront cannabis retailers to locate their physical premises in the City.
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Recommendation
Staff is recommending maintaining the prohibition of all commercial cannabis uses and repeals Chapter 5.95 and instead rely on the State’s new comprehensive regulations and delivery
procedures.
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Rationale
Staff believes that the City’s licensing process is duplicative and no longer necessary.
A significant amount of Police Department and Community Development staff time is required for implementing the City’s regulations.
The failure to achieve the policy goal of allowing access to cannabis to patients in their homes with the use of a local licensing process which is currently limited to a maximum of
3 providers.
This is the fastest method to achieve the policy goal of getting a wide variety of medicine to patients.
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Rationale
Access to all newly State licensed cannabis retailers who choose to provide service to the City of Arroyo Grande.
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1/23/2018
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1/23/2018
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