PC 2018-07-17_08a Cannabis DCA
MEMORANDUM
TO: PLANNING COMMISSION
FROM: TERESA MCCLISH, COMMUNITY DEVELOPMENT DIRECTOR
BY: MATTHEW DOWNING, PLANNING MANAGER
SUBJECT: CONSIDERATION OF DEVELOPMENT CODE AMENDMENT
CASE NO. 18-002; AMENDMENTS TO CHAPTER 16.62 OF
TITLE 16 AND REPEALING CHAPTER 5.95 OF TITLE 5 OF THE
ARROYO GRANDE MUNICIPAL CODE RELATING TO
CANNABIS DELIVERY SERVICES; LOCATION – CITYWIDE;
APPLICANT – CITY OF ARROYO GRANDE
DATE: JULY 17, 2018
SUMMARY OF ACTION:
The Ordinance includes the modification of Title 16 and repeal of Chapter 5.95 of Title 5
of the Arroyo Grande Municipal Code as directed by the City Council to remove local
permit requirements for cannabis delivery services. Implementation of the modifications
will result in commercial cannabis delivery services to be permitted by the State and
removes the requirement for a local permit to deliver cannabis products into the City. All
other prohibitions on commercial cannabis activities will remain unaffected.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Removal of local permitting requirements will reduce impacts and cost to Police
Department staff assigned to review applications for cannabis delivery permits.
RECOMMENDATION:
It is recommended the Planning Commission adopt a Resolution recommending the
City Council adopt the proposed Ordinance amending Chapter 16.62 of Title 16 and
repealing Chapter 5.95 of Title 5 of the Arroyo Grande Municipal Code relating to
cannabis delivery services.
BACKGROUND:
In January 2016, the City Council adopted Ordinance No. 675, which added Chapter
16.62 to Title 16 of the Arroyo Grande Municipal Code (AGMC). This prohibited medical
cannabis dispensaries, cooperatives and collectives, deliveries of medical cannabis,
and the cultivation of cannabis within the City. In June 2016, the Council adopted
Ordinance No. 678, which amended AGMC Chapter 16.62 to allow limited indoor
cultivation of medical cannabis and added Chapter 5.95 relating specifically to cannabis
delivery services. In November 2016, the Adult Use of Marijuana Act (AUMA), also
PLANNING COMMISSION
CONSIDERATION OF DEVELOPMENT CODE AMENDMENT CASE NO. 18-002
JULY 17, 2018
PAGE 2
known as Proposition 64, became effective, which authorized certain personal use and
cultivation of cannabis at a private residence. The AUMA also created a State licensing
and regulatory scheme for various commercial cannabis activities. On October 10,
2017, the City Council adopted Ordinance No. 687 to allow limited cannabis delivery as
the only allowed commercial cannabis activity within the City. Subsequent to Ordinance
No. 687 going into effect, the State implemented a new comprehensive licensing and
regulatory system for cannabis, including the adoption of regulations requiring
background checks of licensees, requirements related to premises, testing and quality
control of cannabis, a “track and trace” system for all commercial cannabis activity, and
procedures relating to delivery. Much of the City’s local delivery permitting requirements
are now duplicative of State law and may actually be impeding opportunities for
cannabis delivery into the City. As such, on June 12, 2018, the City Council directed
staff to develop an Ordinance repealing the City’s delivery permitting system. The
proposed modifications are in keeping with that direction.
ANALYSIS OF ISSUES:
The majority of the City’s permit requirements for cannabis deliveries are contained in
Chapter 5.95 of Title 5 of the AGMC (Attachment 1). As directed by the Council, that
Chapter is being repealed in its entirety.
In addition to the repeal of Chapter 5.95 of Title 5 of the AGMC, there are a couple of
minor modifications in Chapter 16.62 of Title 16, which require review and
recommendation by the Planning Commission. These modifications are proposed to
remove references to the City’s permitting requirements, clarify deliveries require State
permitting, and clarify that deliveries must originate from outside the City. For
comparison purposes, a copy of the current Chapter 16.62 regulations is included as
Attachment 2.
ALTERNATIVES:
The following alternatives are provided for the Planning Commission’s consideration:
• Adopt the attached Resolution recommending the City Council adopt the
Ordinance as proposed;
• Modify and adopt the attached Resolution recommending the City Council adopt
the Ordinance; or
• Provide direction to staff.
ADVANTAGES:
Amending the City’s Cannabis Ordinance as directed by Council will remove a
duplicative local delivery permitting requirement, will continue to be consistent with the
AUMA, reduces impacts and cost to Police Department staff, increases the
opportunities for cannabis delivery within the City, and maintains a measured approach
to cannabis regulation that may best protect the public health, safety, and welfare while
leaving options to reconsider the industry in the future.
PLANNING COMMISSION
CONSIDERATION OF DEVELOPMENT CODE AMENDMENT CASE NO. 18-002
JULY 17, 2018
PAGE 3
DISADVANTAGES:
Repealing the City’s local cannabis delivery licensing scheme will give up some local
control; however, the City’s concerns are adequately addressed by the State
regulations.
ENVIRONMENTAL REVIEW:
Staff has reviewed this project in compliance with the California Environmental Quality
Act (CEQA) and has found that the proposal is exempt pursuant to Sections 15061(b)(3)
(general rule) and 15308 (actions by regulatory agencies for the protection of the
environment) of the CEQA Guidelines.
PUBLIC NOTIFICATION:
A notice of public hearing was published in The Tribune and posted at City Hall and on
the City’s website on Friday, July 6, 2018. The Agenda was posted at City Hall and on
the City’s website in accordance with Government Code Section 54954.2. At the time of
report publication, no comments have been received.
ATTACHMENTS:
1. Arroyo Grande Municipal Code Chapter 5.95
2. Arroyo Grande Municipal Code Chapter 16.62
RESOLUTION NO.
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
ARROYO GRANDE RECOMMENDING THE CITY COUNCIL ADOPT AN
ORDINANCE AMENDING CHAPTER 16.62 OF TITLE 16 AND
REPEALING CHAPTER 5.95 OF TITLE 5 OF THE ARROYO GRANDE
MUNICIPAL CODE RELATING TO CANNABIS DELIVERY SERVICES;
DEVELOPMENT CODE AMENDMENT CASE NO. 18-002; LOCATION –
CITYWIDE
WHEREAS, on January 26, 2016 the City Council of the City of Arroyo Grande adopted
Ordinance No. 675 which added Chapter 16.62 to Title 16 of the Arroyo Grande
Municipal Code (AGMC), prohibiting medical marijuana dispensaries, cooperatives and
collectives, deliveries of medical marijuana, and the cultivation of marijuana within the
City; and
WHEREAS, the City Council subsequently determined that it was appropriate to allow
limited cultivation and strictly regulated deliveries of medical marijuana and on June 28,
2016, adopted Ordinance 678, amending AGMC Chapter 16.62 to allow limited indoor
cultivation of medical marijuana and adding Chapter 5.95 relating to delivery services;
and
WHEREAS, on November 9, 2016, the Adult Use of Marijuana Act (AUMA), also known
as Proposition 64, became effective, authorizing certain personal use and cultivation of
marijuana at a private residence and creating a state licensing and regulatory scheme
for various commercial marijuana activities; and
WHEREAS, On October 10, 2017, City Council adopted Ordinance 687 to amend and
clarify the provisions in the AGMC relating to marijuana (cannabis) in order to continue
to prohibit all commercial cannabis activity within the City of Arroyo Grande, except for
limited delivery as permitted by Chapter 5.95, to ban outdoor cannabis cultivation and
reasonably regulate indoor cannabis cultivation; and
WHEREAS, the State has implemented a new comprehensive licensing and regulatory
system for cannabis based upon emergency regulations adopted in December 2017,
and June 2018, including the adoption of regulations requiring background checks of
licensees, requirements related to premises, testing and quality control of cannabis, a
“track and trace” system for all commercial cannabis activity, and procedures relating to
delivery; and
WHEREAS, the City Council of the City of Arroyo Grande desires to amend the
provisions in the AGMC relating to cannabis in order to delete the City’s Cannabis
RESOLUTION NO.
PAGE 2
Delivery Services local licensing regulations and instead allow deliveries by State
licensed cannabis retailers; and
WHEREAS, on June 12, 2018, the City Council of the City of Arroyo Grande directed
the development of an Ordinance to modify the Arroyo Grande Municipal Code to
implement this desire; and
WHEREAS, the Planning Commission has considered Development Code Amendment
18-002 at a duly noticed public hearing on July 17, 2018; and
WHEREAS, the Planning Commission finds, after due study, deliberation, and public
hearing, that the following Development Code Amendment findings can be made in an
affirmative manner:
A. The proposed changes to Title 16 and Title 5 of the Municipal Code will maintain
consistency with the Adult Use of Marijuana Act (Proposition 64), will remove a
duplicative local permitting process for cannabis deliveries into the City, and will
allow deliveries into the City by State licensed cannabis retailers only.
B. The proposed revisions to Title 16 and Title 5 will not adversely affect the public
health, safety, and welfare or result in an illogical land use pattern.
C. The proposed revisions to Title 16 and Title 5 are consistent with the respective
purposes of those Titles, satisfy the intent of Chapters 16.62 and 5.95 of the
Municipal Code, and provide for internal consistency
D. The proposed revisions to Titles 16 and 5 are exempt from review under the
California Environmental Quality Act (CEQA) per Section 15061(b)(3) (general
rule) and 15308 (actions by regulatory agencies for the protection of the
environment) of the CEQA Guidelines.
NOW THEREFORE, BE IT RESOLVED that the Planning Commission of the City of
Arroyo Grande hereby recommends the City Council adopt an Ordinance approving
Development Code Amendment No. 18-002 amending Title 16 and repealing Chapter
5.95 of the Arroyo Grande Municipal Code as attached hereto as Exhibit “A” and
incorporated herein by this reference.
On a motion by Commissioner __________, seconded by Commissioner ________ and
by the following roll call vote to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted this 17th day of July, 2018.
RESOLUTION NO.
PAGE 3
_______________________________
GLENN MARTIN
CHAIR
ATTEST:
_______________________________
MATTHEW DOWNING
SECRETARY TO THE COMMISSION
AS TO CONTENT:
_______________________________
TERESA MCCLISH
COMMUNITY DEVELOPMENT DIRECTOR
EXHIBIT “A”
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE AMENDING CHAPTER 16.62 OF TITLE 16 AND REPEALING
CHAPTER 5.95 OF TITLE 5 OF THE ARROYO GRANDE MUNICIPAL
CODE RELATING TO CANNABIS DELIVERY SERVICES
WHEREAS, on January 26, 2016 the City Council of the City of Arroyo Grande adopted
Ordinance No. 675 which added Chapter 16.62 to Title 16 of the Arroyo Grande Municipal
Code (AGMC), prohibiting medical marijuana dispensaries, cooperatives and collectives,
deliveries of medical marijuana, and the cultivation of marijuana within the City; and
WHEREAS, the City Council subsequently determined that it was appropriate to allow
limited cultivation and strictly regulated deliveries of medical marijuana and on June 28,
2016, adopted Ordinance 678, amending AGMC Chapter 16.62 to allow limited indoor
cultivation of medical marijuana and adding Chapter 5.95 relating to delivery services;
and
WHEREAS, on November 9, 2016, the Adult Use of Marijuana Act (AUMA), also known
as Proposition 64, became effective, authorizing certain personal use and cultivation of
marijuana at a private residence and creating a state licensing and regulatory scheme for
various commercial marijuana activities; and
WHEREAS, On October 10, 2017, City Council adopted Ordinance 687 to amend and
clarify the provisions in the AGMC relating to marijuana (cannabis) in order to continue to
prohibit all commercial cannabis activity within the City of Arroyo Grande, except for
limited delivery as permitted by Chapter 5.95, to ban outdoor cannabis cultivation and
reasonably regulate indoor cannabis cultivation; and
WHEREAS, the State has implemented a new comprehensive licensing and regulatory
system for cannabis based upon emergency regulations adopted in December 2017, and
June 2018, including the adoption of regulations requiring background checks of
licensees, requirements related to premises, testing and quality control of cannabis, a
“track and trace” system for all commercial cannabis activity, and procedures relating to
delivery; and
WHEREAS, the City Council of the City of Arroyo Grande desires to amend the provisions
in the AGMC relating to cannabis in order to delete the City’s Cannabis Delivery Services
local licensing regulations and instead allow deliveries by State licensed cannabis
retailers.
ORDINANCE NO.
PAGE 2
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES
ORDAIN AS FOLLOWS:
SECTION 1. The above recitals and findings are true and correct and are incorporated
herein by this reference.
SECTION 2. Section 16.62.010 of the Arroyo Grande Municipal Code is hereby amended
to read in its entirety as follows:
16.62.010 - Purpose and findings
A. By adoption of this Chapter, with the exception of deliveries into the City of
Arroyo Grande by State licensed cannabis retailers, it is the City Council’s purpose and
intent to: prohibit commercial cannabis activity, including but not limited to medical
cannabis dispensaries, cooperatives and collectives; outdoor cultivation of cannabis; and
manufacture, distribution, processing, storing, laboratory testing, packaging, labeling,
transportation, or sale of cannabis and cannabis products, and the location of premises
for retail or non-storefront retail cannabis businesses; and to reasonably regulate the
ability of individuals to cultivate not more than six (6) cannabis plants indoors for personal
noncommercial use, as permitted by the Adult Use of Marijuana Act (AUMA, Proposition
64), and Health and Safety Code Sections 11362.1 and 11362.2. These regulations
are adopted pursuant to the AUMA and the City of Arroyo Grande’s authority under Article
XI, Section 7 of the California Constitution, in order to promote the health, safety, and
general welfare of the residents and businesses within the City of Arroyo Grande and
prevent adverse impacts which such activities may have on nearby properties and
residents.
B. Pursuant to the City of Arroyo Grande’s police powers authorized in Article XI,
Section 7 of the California Constitution, the City has the power to regulate permissible
land uses within its boundaries and to enact regulations for the preservation of public
health, safety and general welfare of its residents and community. Further, pursuant to
Government Code Sections 38771 through 38775, the City also has the power through
the City Council to declare actions and activities that constitute a public nuisance.
SECTION 3. Subsection A of Section 16.62.060 is hereby amended to read as follows:
A. Except as provided in Section 16.62.070 related to deliveries into the City of
Arroyo Grande, all commercial cannabis activity, including but not limited to medical
cannabis collectives, cooperatives and dispensaries (including mobile dispensaries),
cultivation, manufacture, distribution, processing, storing, laboratory testing, packaging,
labeling, transportation, or sale of cannabis and cannabis products, and the location of
premises for any retail or non-storefront retail cannabis businesses, are not permitted in
or upon any premises in the City of Arroyo Grande.
ORDINANCE NO.
PAGE 3
SECTION 4. Section 16.62.070 of the Arroyo Grande Municipal Code is hereby amended
to read as follows:
16.62.070 - Deliveries
It shall be unlawful for any person to deliver cannabis or cannabis products or
engage in activities that constitute delivery of cannabis or cannabis products anywhere
within the boundaries of in the City of Arroyo Grande, except for cannabis retail
businesses with physical premises located outside of the City of Arroyo Grande that are
licensed by the State Bureau of Cannabis Control. Notwithstanding any provision of this
chapter, nothing herein is intended to prohibit the transportation of cannabis or cannabis
products on public roads by a licensee duly licensed and acting in compliance with
Division 10 of the Business and Professions Code (Business and Professions Code
Sections 26000 et seq.).
SECTION 5. Chapter 5.95 of Title 5 of the Arroyo Grande Municipal Code is hereby
repealed.
SECTION 6. Notwithstanding anything in this Ordinance or in the Arroyo Grande
Municipal Code to the contrary, any cannabis delivery service that has been licensed by
the City in accordance with the provisions of Chapter 5.95 as they previously existed prior
to the repeal provided in Section 5 herein, may continue to deliver medical cannabis or
medical cannabis products in the City of Arroyo Grande in accordance with the laws
governing medical cannabis collectives and cooperatives (reference Health and Safety
Code Section 11362.775), until the expiration of the term of the license as provided in
AGMC Section 5.95.040(D). Such licensees shall continue to comply with the provisions
of Chapter 5.95 as they existed at the time the license was granted and any applicable
provisions of Title 16 California Code of Regulations, Sections 5000 et. Seq. relating to
delivery.
SECTION 7. In accordance with the requirements of Business and Professions Code
Section 26055(f), a copy of this Ordinance shall be provided to the Bureau of Cannabis
Control within the California Department of Consumer Affairs.
SECTION 8. This Ordinance is exempt from CEQA pursuant to CEQA Guidelines
Section15061(b)(3) which is the general rule that CEQA applies only to projects which
have the potential for causing a significant effect on the environment and CEQA does not
apply where it can be seen with certainty that there is no possibility that the activity may
have a significant effect on the environment.
SECTION 9. A summary of this Ordinance shall be published in a newspaper published
and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council
meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text
of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen
(15) days after adoption of the Ordinance, the summary with the names of those City
Council members voting for and against the Ordinance shall be published again, and the
ORDINANCE NO.
PAGE 4
City Clerk shall post a certified copy of the full text of such adopted Ordinance. This
Ordinance shall take effect and be in full force and effect thirty (30) days after its passage.
SECTION 10. This Ordinance shall take effect and be in full force and effect thirty (30)
days after its passage.
SECTION 11. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
On motion by Council Member ______, seconded by Council Member _______, and by
the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was adopted this ____ day of _______, 2018.
ORDINANCE NO.
PAGE 5
___________________________________
JIM HILL, MAYOR
ATTEST:
___________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
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Chapter 5.95 - CANNABIS DELIVERY SERVICES
Sections:
5.95.010 - De nitions.
For the purposes of this chapter the following words and phrases shall have the meanings respectively ascribed to them
by this section:
"Cannabis" means all parts of the plant genus Cannabis savita Linnaeus, Cannabis indicia, or cannabis ruderalis, whether
growing or not; the seeds thereof; the resin, whether crude or puri ed, extracted from any part of the plant; and every
compound, manufacture, salt, derivative, mixture or preparation of the plant, its seeds or resin, and includes "cannabis",
"medical cannabis", "cannabis product" and "medical cannabis product" as de ned in Business and Professions Code
Sections 26001(f) and (ai).
"Cannabis delivery" or "delivery" means the commercial transfer of cannabis or cannabis products to a customer from
one location to another. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the
retailer. "Delivery" shall also have the meaning set forth in Business and Professions Code Section 26001(p).
"Cannabis delivery driver" shall mean any individual who drives or operates a cannabis delivery vehicle in which cannabis
or cannabis products are delivered.
"Cannabis delivery service" means a person or persons engaged in the business of owning, controlling or operating one
or more cannabis delivery vehicles which transport, carry, or deliver cannabis or cannabis products in such cannabis delivery
vehicle, or cannabis delivery vehicles, anywhere within the city of Arroyo Grande.
"Cannabis delivery vehicle" means a motor vehicle, as that term is de ned in the Vehicle Code of the state of California,
used for the transportation of cannabis or cannabis products.
"Chief of police" shall mean the chief of police of the city of Arroyo Grande or his or her designee.
"City" shall mean the city of Arroyo Grande.
"City manager" shall mean the city manager of the city of Arroyo Grande or his or her designee.
"Person" includes any person, rm, association, organization, partnership, joint venture, business trust, corporation or
company.
"Primary caregiver". This shall have the meaning set forth in Health and Safety Code Section 11362.7(d).
"Quali ed patient". This shall have the meaning set forth in Health and Safety Code Section 11362.7(f).
(Ord. No. 687, § 3, 10-10-2017)
5.95.020 - Cannabis delivery service license required; limitation on number of licenses, criteria and granting of licenses.
Every cannabis delivery service shall obtain a cannabis delivery service license from the city prior to any operation within
the city. The chief of police may grant or cause to be granted up to three cannabis delivery service licenses to operate in the
city of Arroyo Grande.
[2]
ATTACHMENT 1
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Cannabis delivery service licenses shall be issued based upon an open application process. The chief of police shall give
public notice of the opening of a thirty (30) day period during which applications for cannabis delivery services will be
accepted by having such notice published in a newspaper of general circulation pursuant to Government Code Section 6061
and posting the notice on the city's website. Applications shall be signed under penalty of perjury that the applicant has
personal knowledge of the information being submitted and that it is true.
Granting of cannabis delivery service licenses shall be made at the sole discretion of the chief of police. The chief of
police shall rank the applications received using the criteria contained in this section, based upon those that best meet the
needs of the community and will deliver services and operate in a manner that will protect the public health and safety. The
highest ranked quali ed applicants equal to the number of available cannabis delivery service licenses shall be granted
licenses pursuant to this chapter. The decision of the chief of police shall be nal.
When the chief of police has reviewed quali ed applications within two years of any open application process under the
provisions of this section and less than three licenses are active, at the discretion of the chief of police, review may be limited
to applications previously submitted through the prior open application process.
In addition to the information required in Section 5.95.050, applicants shall address the following criteria, which shall be
used by the chief of police as a basis for granting cannabis delivery service licenses:
• The applicant shall describe their experience in the cannabis delivery service business, including their
knowledge of applicable cannabis laws and regulations.
• The applicant shall describe its plan and procedures for safely and securely delivering cannabis and
cannabis products. This shall address procedures for preventing theft or diversion of cannabis and
cannabis products.
• The applicant shall demonstrate knowledge relating to where and how the cannabis and cannabis
products they deliver is cultivated, various strains of cannabis, and its experience, if applicable, growing
those strains or comparable agricultural products.
• The applicant shall describe its plan for keeping records required by this chapter.
• The applicant shall describe steps taken to ensure quality, including the purity and consistency of the
cannabis and cannabis products it delivers. This shall include labeling, packaging and how it ensures
consumer safety by testing for biological and chemical contaminants, pursuant to state or federal
standards for food, drugs or tobacco. It shall also include details regarding procedures used to prepare any
cannabis edibles to comply with state food safety requirements, as well as the source of cannabis used in
edible products.
• The applicant shall describe their personnel procedures and hiring practices, including the manner in
which they ensure that employees are familiar with their procedures for safely and securely delivering
cannabis and cannabis products, procedures to prevent theft or diversion, as well as the employee's
knowledge of applicable cannabis laws and regulations. If the applicant maintains an employee handbook,
copies shall be provided with the application.
Cannabis delivery service licenses are not transferable. They shall be deemed terminated if the owner or operator who
was granted a license discontinues or suspends delivery operations for a period of more than thirty (30) days without
permission obtained from the chief of police.
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A.
B.
A.
B.
C.
D.
E.
A.
1.
When the State Bureau of Cannabis Control within the Department of Consumer A airs has commenced issuing licenses
pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Business and Professions Code Sections 26000
et seq.), all cannabis delivery services operating in the city shall also present proof to the chief of police that it has been
issued required state license(s).
(Ord. No. 687, § 3, 10-10-2017)
5.95.030 - Cannabis delivery service license exemptions.
A primary caregiver engaged in the delivery of cannabis to a quali ed patient for which they are the primary
caregiver is exempt from a requirement for a cannabis delivery service license.
A quali ed patient engaged in the transportation of cannabis solely for his or her own personal use is exempt
from a requirement for a cannabis delivery service license.
(Ord. No. 687, § 3, 10-10-2017)
5.95.040 - Fees, business licenses, and term.
Every cannabis delivery service licensed by the city shall pay application and license fees as stated in the city's
master fee schedule. Upon approval of the cannabis delivery service license application, the cannabis delivery
service shall pay the fee as stated in the city's master fee schedule per cannabis delivery vehicle, and the city
shall issue a cannabis delivery vehicle license sticker for each properly insured cannabis delivery vehicle. The
annual cannabis delivery service license renewal fee shall be as stated in the city's master fee schedule per
year, and the annual fee per cannabis delivery vehicle for the license sticker as stated in the city's master fee
schedule. Each applicant shall also present to the city the prescribed amount set by the department of justice
of the state of California for the processing of the applicant's ngerprints.
Each applicant for a cannabis delivery driver's permit shall pay to the city, application fees and annual permit
fees as stated in the city's master fee schedule. The annual renewal permit fee shall also be as stated in the
master city's fee schedule. Each applicant shall present to the city the prescribed amount set by the
department of justice of the state of California for the processing of the applicant's ngerprints.
Each cannabis delivery service shall pay all applicable business license fees as required by Chapter 5.02 of this
code, and pay any other applicable taxes pursuant to federal, state and local law.
Term. All licenses and stickers issued to cannabis delivery services and cannabis delivery drivers shall be for
the period of no more than one calendar year, and shall expire at midnight on the 31st day of December,
subject to annual renewal by the chief of police. Initial annual fees shall be prorated based upon when in the
year it is issued, however, application fees and annual fees shall not otherwise be subject to reductions or
refunds.
Prior to any renewal the chief of police shall review the licensee or permittee for satisfactory performance and
compliance with the provisions of this code during the preceding year, and also con rm the continuing validity
of all information that was submitted by the licensee or permittee during the initial application process.
(Ord. No. 687, § 3, 10-10-2017)
5.95.050 - Cannabis delivery service license application.
In addition to submitting information relating to the selection criteria in Section 5.95.020, every application for
a cannabis delivery service license submitted in response to an open application process shall contain:
Name and address of the applicant.
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2.
3.
4.
5.
6.
B.
A.
B.
If the applicant is a corporation, the names and addresses of its directors. Copies of any relevant articles of
and any medical cannabis collective/cooperative agreement and membership forms shall be submitted with
Area within which the delivery service proposes to operate.
Kind and amount of public liability and property damage insurance covering each vehicle to be used for
cannabis and cannabis products delivered within the city.
Owner's trade name and business address.
Listing of all vehicles to be used for cannabis delivery within the city, their make, model (year), license
plate number and vehicle identi cation number.
Whenever an employee of a cannabis delivery service les an application for a cannabis delivery driver's
permit, or renewal hereof, with the city, the employer cannabis delivery service shall within ten (10) days after
the ling of the application by the employee with the city, submit to the city by First Class U.S. Mail copies of
the results and other records pertaining to the testing of the employee for the use of alcohol and controlled
substances conducted pursuant to mandatory controlled substance and alcohol testing certi cation program
required by Section 5.95.200.
(Ord. No. 687, § 3, 10-10-2017)
5.95.060 - Investigation of cannabis delivery service application.
All applications submitted as part of a cannabis delivery service open application process shall be referred to
the chief of police for investigation in order to determine if the applicant is quali ed. The chief of police shall
obtain a copy of the applicant's criminal record in the United States, if any, and may obtain the criminal record,
if any, in any other country, if obtaining such foreign criminal record is feasible.
The chief of police in making determinations relating to granting cannabis marijuana delivery licenses may
also demand personal references from applicants and may make such further investigation of applicants as
deemed appropriate.
(Ord. No. 687, § 3, 10-10-2017)
5.95.070 - Insurance requirements.
The insurance required before a cannabis delivery service license can be issued shall insure the public against any loss or
damage that may result to any person or property from the operation of any cannabis delivery vehicle used by the cannabis
delivery service in its business as such. The amount of insurance shall not be less than one million dollars ($1,000,000.00) per
occurrence combined single limit for bodily injury and property damage. The city, its o cers, agents and employees shall be
named as additional insureds on any policy. Insurance shall include contractual liability to cover liability assumed in contract,
shall include a severability of interest or equivalent wording, and shall specify that insurance coverage a orded to the city
shall be primary.
(Ord. No. 687, § 3, 10-10-2017)
5.95.080 - Insurance certi cate prerequisite to issuance.
No cannabis delivery service license shall be issued until the applicant rst les with the city a certi cate of insurance, on
a form acceptable by the city. Said certi cate shall provide evidence of insurance in amounts and with conditions acceptable
to the city and shall be approved by the city manager. The cannabis delivery service insurance shall remain in force during
the entire term of the license, and if such insurance is canceled or terminated, it shall be grounds for revocation or
suspension of the license until a valid certi cate is furnished to the city.
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A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
A.
(Ord. No. 687, § 3, 10-10-2017)
5.95.090 - Hold harmless agreement.
As a condition of the license, each cannabis delivery service shall execute an agreement indemnifying and holding
harmless the city, its o cers, agents and employees from any and all damages, claims, liabilities, costs including attorney's
fees, suits or other expenses resulting from and arising out of said cannabis delivery service operations. The agreement shall
provide that the cannabis delivery service agrees to defend, at its sole expense, any action against the city, its o cers, agents
and employees and reimburse the city of any court costs and attorney fees that the city may be required to pay as a result of
any such action or issuance of the license. The city, may, at its sole discretion, participate at its own expense in the defense of
any action, but such participation shall not relieve the licensee of its obligations hereunder.
(Ord. No. 687, § 3, 10-10-2017)
5.95.100 - Revocation or suspension of cannabis delivery service license.
A cannabis delivery service license or a renewal thereof may be revoked or suspended if the license holder:
Has knowingly made a false statement in a material matter either in his or her application or in any
reports or other documents furnished by him or her to the city.
Does not maintain and operate his or her cannabis delivery vehicle and other equipment in the manner
and in the condition required by law and applicable regulations.
Is required to register as a sex o ender under the provisions of Section 290 of the California Penal Code.
Has been convicted of any o ense relating to the use, sale, possession or transportation of narcotics or
habit-forming drugs.
Has utilized drivers who are under suspension, revocation or probation by the department of motor
vehicles for a cause involving the safe operation of a motor vehicle, or have been convicted of any of the
following o enses: driving while intoxicated; or reckless driving involving bodily injury.
Has been convicted of any o ense punishable as a felony, or has been convicted within a ten (10) year
period immediately preceding the crime of theft in either degree.
Has been convicted of any o ense involving moral turpitude.
Utilizes drivers who have been involved in any motor vehicle accident causing death or personal injury.
Utilizes drivers who have been involved in three or more motor vehicle accidents.
Failed to pay required license fees.
Has violated any provision of this chapter or engaged in any conduct that adversely a ects the health,
welfare or safety of the community.
(Ord. No. 687, § 3, 10-10-2017)
5.95.110 - Revocation procedures.
The city may give notice to a cannabis delivery service of its intention to revoke a cannabis delivery service
license. If deemed it will be a hazard to the health, safety or welfare, for the cannabis delivery service to
continue operations pending a revocation hearing, the city may suspend the license and all rights and
privileges thereunder until the hearing on revocation. The notice shall specify a time and place at which a
hearing will be held before a hearing o cer designated by the city manager. The hearing o cer may be a
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department head, or his or her designee, or other disinterested person. The employment, performance
evaluation, compensation and bene ts of the hearing o cer, if any, shall not be directly or indirectly
conditioned upon the determinations made by the hearing o cer.
The hearing shall be conducted not less than seven days after the date of the notice, unless the operator agrees to a
shorter period of time. Unless the cannabis delivery service consents, a hearing must be held within fourteen (14) days of a
suspension. The notice shall specify the reasons for the proposed revocation in su cient detail so as to fully inform the
cannabis delivery service of the reasons which have caused the notice to be given, and if the cannabis delivery service license
has been suspended the reasons for such suspension. A copy of the notice shall be sent to the chief of police.
The cannabis delivery service and chief of police shall each have the right to be represented by counsel, to call
and examine witnesses, cross-examine witnesses, and argue their respective positions. The proceedings shall
be informal, and strict rules of evidence shall not apply. All evidence shall be admissible which is of the kind
that reasonably prudent persons rely on in making decisions.
The hearing o cer shall render a recommended decision in writing to the city manager, and include the
reasons therefore. The city manager may accept, or modify the hearing o cer's recommendation and the
decision of the city manager shall be nal.
(Ord. No. 687, § 3, 10-10-2017)
5.95.120 - Cannabis delivery service operating requirements.
Deliveries shall be directly to the residence or business address of the person ordering the cannabis or
cannabis products. Any other delivery or transaction is prohibited. In accordance with Business and
Professions Code Section 26090(d) the customer requesting delivery shall maintain a copy of the delivery
request and make it available to law enforcement o cers upon request.
No cannabis delivery service shall permit any person other than a cannabis delivery vehicle driver, licensed in
accordance with this chapter, to operate any of its cannabis delivery vehicles in which cannabis is delivered
within the city.
In accordance with the requirements of Business and Professions Code Section 26090(c), during delivery,
licensees shall maintain a physical copy of the delivery request and shall make it available to law enforcement
o cers upon request. Each cannabis delivery service shall maintain a written record of every request for
delivery, including the name of the requestor, the address for the delivery, the quantity and type of cannabis
or cannabis products requested, the date and time the delivery request is received, the cannabis delivery
vehicle that is assigned to make the delivery, and the cannabis delivery driver that is assigned to make the
delivery.
Each cannabis delivery service shall assure that every cannabis delivery driver shall have a copy of the record
of the delivery request during the delivery of any cannabis or cannabis products in the city. Employees
delivering cannabis or cannabis products shall carry a copy of the delivery services license and present it and
the employee's identi cation to law enforcement o cers upon request. Deliveries shall only occur between
the hours of ten a.m. and seven p.m., or as otherwise permitted by state law or regulations adopted by the
bureau of cannabis control.
Other than displaying required cannabis delivery vehicle license stickers, delivery vehicles shall not contain
advertisements for commercial cannabis activities nor shall it advertise the name of the dispensary.
Delivery drivers shall not transport cannabis in excess of any applicable limits established by the bureau of
cannabis control.
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Each cannabis delivery service shall maintain, for a minimum of three years, a written accounting or ledger of all
receipts, credit card transactions, and reimbursements, (including any in-kind contributions) as well as records of
operational expenditures and costs incurred by the cannabis delivery service in accordance with generally accept
accounting practices and standards typically applicable to business records, which records shall be subject to aud
inspection by the city upon request.
Each cannabis delivery service shall keep current the information furnished under Section 5.95.050. The
information shall be furnished to the city.
All products delivered shall have been tested in a manner consistent with the procedures described in the
cannabis delivery service application, as required by Section 5.95.020, or applicable state law.
(Ord. No. 687, § 3, 10-10-2017)
5.95.130 - Cannabis delivery driver's permit—Required.
Every cannabis delivery driver who drives a cannabis delivery vehicle for which a cannabis delivery service license is
required or has been issued shall obtain a cannabis delivery driver's permit from the city prior to driving a cannabis delivery
vehicle within the city.
(Ord. No. 687, § 3, 10-10-2017)
5.95.140 - Application.
Every applicant for a cannabis delivery driver's permit must be employed or have an o er of employment by a
licensed cannabis delivery service. Every cannabis delivery driver shall le an application for a cannabis
delivery driver's permit on a form supplied by the city.
For cannabis delivery drivers employed by a cannabis delivery service, employer cannabis delivery service shall
comply with subsection B. of Section 5.95.050 of this chapter. An applicant for a cannabis delivery driver's
permit shall immediately upon the ling of an application inform the employer of the requirements of this
section and of subsection B. of Section 5.09.050.
(Ord. No. 687, § 3, 10-10-2017)
5.95.150 - Referral of application to chief of police.
The application for a cannabis delivery driver's permit shall be referred to the chief of police, who shall make the same
type of investigation as set forth in Section 5.95.060 and approve or disapprove the application.
(Ord. No. 687, § 3, 10-10-2017)
5.95.160 - Procedure on disapproval.
Within fteen (15) days after noti cation of disapproval, an applicant may appeal to the city manager, in
writing, from the disapproval of the chief of police, giving the reasons in full as to why the permit should be
issued in spite of the disapproval. A copy of the appeal shall be sent by applicant to the chief of police and city
manager at the same time.
The city clerk shall set a hearing on the appeal of the applicant, and shall x a time and a date certain, within
thirty (30) days after the receipt of applicant's appeal by the city (or such longer time as applicant shall agree
to) to hear and consider the appeal of applicant. The city clerk shall notify the applicant, chief of police and city
manager of the time and place of hearing at least seven days prior to the date of the hearing.
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A hearing o cer designated by the city manager shall hear the appeal. The hearing o cer may be a department
or her designee, or other disinterested person. The employment, performance evaluation, compensation and ben
hearing o cer, if any, shall not be directly or indirectly conditioned upon the determinations made by the hearing
All testimony at the hearing shall be given under oath or a rmation. The applicant and chief of police shall
have the right to be represented by counsel. Applicant and chief shall each have the right to call and examine
witnesses, cross-examine witnesses and argue their respective positions. The proceeding shall be informal,
and the strict rules of evidence shall not apply, and all evidence shall be admissible which is of the kind that
reasonably prudent persons rely on in making decisions.
The hearing o cer shall determine the order of procedure and shall rule on all objections to admissibility of evidence.
Applicant and chief of police shall each be given a full and fair hearing. The hearing o cer shall render a recommended
decision in writing to the city manager, and include the reasons therefore within ten (10) days after the close of the hearing.
The city manager may accept, or modify the hearing o cer's recommendation and the decision of the city manager shall be
nal.
(Ord. No. 687, § 3, 10-10-2017)
5.95.170 - Issuance.
Upon receipt of the approval of the city, it shall issue to the applicant a cannabis delivery driver's permit, which shall be
in the form of a card containing the permittee's name, photograph and right index ngerprint.
(Ord. No. 687, § 3, 10-10-2017)
5.95.180 - Notice of revocation—Suspension—Procedures.
The city may give a notice of intention to revoke a cannabis delivery driver's permit, and may suspend such permit
pending a hearing, as in the case of a cannabis delivery service license, and the procedures for revocation, and the rights of
the parties shall be the same, insofar as applicable as in the case of revocation of a cannabis delivery service license.
(Ord. No. 687, § 3, 10-10-2017)
5.95.190 - Automatic suspension of cannabis delivery driver's permit.
Any cannabis delivery driver's permit issued hereunder shall be automatically suspended and be null and void during any
period of time that the cannabis delivery driver's state motor vehicle operator's license is suspended, revoked, or for any
other reason is invalid or inoperative.
(Ord. No. 687, § 3, 10-10-2017)
5.95.200 - Mandatory controlled substance and alcohol testing program.
Every cannabis delivery service shall develop and adopt a mandatory controlled substance and alcohol testing
certi cation program in compliance with Government Code Section 53075.5 and in accordance with the
procedures set forth in Part 40 (commencing with Section 40.1) of Title 49 of the Code of Federal Regulations.
A copy of the mandatory controlled substance and alcohol testing certi cation program adopted pursuant to
this section shall be delivered to the chief of police and city manager.
The employer cannabis delivery service's mandatory controlled substance and alcohol testing certi cation
program shall contain a provision that, while the employer cannabis delivery service license is in e ect, the
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employer cannabis delivery service shall, upon request of the city, make available for inspection copies of all
results and other records pertaining to the testing for the use of alcohol and controlled substances conducted
pursuant to the mandatory controlled substance and alcohol testing certi cation program required by this
section.
The employer cannabis delivery service's mandatory controlled substance and alcohol testing certi cation
program shall, at a minimum, require every cannabis delivery driver to submit to testing at least once every
year and submit to mandatory testing following citation for a moving violation or being involved in a vehicle
accident.
Failure to comply with the requirements of this section constitutes grounds for denial, revocation or
suspension of a cannabis delivery service license pursuant to this chapter. The procedures for denial,
suspension or revocation shall be the same as those prescribed for suspension or revocation of a cannabis
delivery service license elsewhere in this chapter.
(Ord. No. 687, § 3, 10-10-2017)
5.95.210 - Grounds for denial, revocation or suspension of cannabis delivery driver's permit.
The granting of a cannabis delivery driver's permit or a renewal thereof may be denied and an existing permit may be
revoked or suspended if the permit holder or applicant:
Has knowingly made a false statement in a material matter either in his or her application or in any
reports or other documents furnished by him or her to the city.
Does not maintain and operate his or her cannabis delivery vehicle and other equipment in the manner
and in the condition required by law and applicable regulations.
Is required to register as a sex o ender under the provisions of Section 290 of the California Penal Code.
Has been convicted of any o ense relating to the use, sale, possession or transportation of narcotics or
habit-forming drugs.
Within the three-year period immediately preceding the application has been under suspension,
revocation or probation by the department of motor vehicles for a cause involving the safe operation of a
motor vehicle, or has been convicted of any of the following o enses: driving while intoxicated; or
reckless driving involving bodily injury.
Has been convicted of any o ense punishable as a felony, or has been convicted within a ten (10) year
period immediately preceding the crime of theft in either degree.
Has been convicted of any o ense involving moral turpitude.
Has been involved within the two years immediately preceding the application in any motor vehicle
accident causing death or personal injury.
Has been involved in three or more motor vehicle accidents within the year immediately preceding the
application.
Failed to pay required permit fees.
Has violated any provision of this chapter.
(Ord. No. 687, § 3, 10-10-2017)
5.95.220 - Additional cannabis delivery driver conditions.
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In addition to the conditions and grounds for the issuance and retention of a cannabis delivery driver's permit issued
pursuant to this chapter, a cannabis delivery driver's permit shall be issued and retained subject to the following conditions:
The cannabis delivery driver shall be at least twenty-one (21) years old prior to issuance of a cannabis
delivery driver's permit.
Employment, or an o er of employment, as a cannabis delivery driver has been made by a licensed
cannabis delivery service.
The cannabis delivery driver's permit shall become void upon termination of employment of the cannabis
delivery driver.
The cannabis delivery service employer shall notify the city upon termination of employment of a
cannabis delivery driver.
The cannabis delivery driver's permit shall state the name of the cannabis delivery service employer.
The cannabis delivery driver shall return the cannabis delivery driver's permit to the city upon
termination of employment.
The cannabis delivery driver shall not test positive pursuant to the employer cannabis delivery service's
mandatory controlled substance and alcohol testing certi cation program.
(Ord. No. 687, § 3, 10-10-2017)
5.95.230 - Cannabis delivery driver duties.
No cannabis delivery driver shall permit any person other than another cannabis delivery vehicle driver, who
has been issued a permit in accordance with this chapter, to operate the cannabis delivery vehicle in which
cannabis or cannabis products are delivered within the city.
Each cannabis delivery driver shall have a copy of the record of the delivery request during the delivery of any
cannabis or cannabis products in the city.
(Ord. No. 687, § 3, 10-10-2017)
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Chapter 16.62 - CANNABIS
Sections:
16.62.010 - Purpose and ndings.
By adoption of this chapter, it is the city council's purpose and intent, to: prohibit commercial
cannabis activity, including medical cannabis dispensaries, cooperatives and collectives;
outdoor cultivation of cannabis; permit deliveries of cannabis in accordance with Chapter
5.95 of this code; and to reasonably regulate the ability of individuals to cultivate not more
than six cannabis plants indoors for personal noncommercial use, as permitted by the Adult
Use of Marijuana Act (AUMA, Proposition 64), and Health and Safety Code Sections 11362.1
and 11362.2. These regulations are adopted pursuant to the AUMA and the city of Arroyo
Grande's authority under Article XI, Section 7 of the California Constitution, in order to
promote the health, safety, and general welfare of the residents and businesses within the
city of Arroyo Grande and prevent adverse impacts which such activities may have on nearby
properties and residents.
Pursuant to the city of Arroyo Grande's police powers authorized in Article XI, Section 7 of the
California Constitution, the city has the power to regulate permissible land uses within its
boundaries and to enact regulations for the preservation of public health, safety and general
welfare of its residents and community. Further, pursuant to Government Code Sections
38771 through 38775, the city also has the power through the city council to declare actions
and activities that constitute a public nuisance.
(Ord. No. 687, § 2, 10-10-2017)
16.62.020 - Application.
The provisions of this chapter shall apply generally to all property within the boundaries of the city
wherein any of the conditions herein speci ed are found to exist. However, nothing in this chapter is
intended, nor shall it be construed, to burden any defense to criminal prosecution under the provision of
state law relating to the use of medical cannabis.
(Ord. No. 687, § 2, 10-10-2017)
16.62.030 - Administration.
The chief of police, or the chief's designee and/or the director of community development, or the
director's designee, are charged with the responsibility of administering this chapter and exercising the
authority conferred thereby.
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(Ord. No. 687, § 2, 10-10-2017)
16.62.040 - De nitions.
Consistent with the de nitions set forth in state laws relating to cannabis, including but not limited to
the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Business and Professions Code Sections
26000 et seq.), the following words shall have the following meaning:
"Accessory structure" means a legally existing fully enclosed detached structure no larger than that is
fully enclosed with walls for all perimeters of the building, including, without limitation, a storage shed
located on the same legal parcel as a private residence.
"Cannabis" means all parts of the plant genus Cannabis savita Linnaeus, Cannabis indica, or Cannabis
ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or puri ed, extracted from
any part of the plant; and every compound, manufacture, salt, derivative, mixture or preparation of the
plant, its seeds or resin, and includes "cannabis", "medical cannabis", "cannabis product" and "medical
cannabis product", as otherwise de ned in Business and Professions Code Sections 26001(f) and (ai).
"Commercial cannabis activity" means any cultivation, possession, manufacture, distribution,
processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis or
cannabis products, including but not limited to medical cannabis cooperatives and collectives.
"Cultivation" shall have the meaning as set forth in Business and Professions Code Section 26001(l) and
also means the planting, growing, harvesting, drying, processing or storage of one or more cannabis plants
or any part thereof in any location, indoor or outdoor, including a fully enclosed and secure building.
"Delivery" shall have the meaning as set forth in Business and Professions Code Section 26001(p) (m).
"Dispensary" shall mean any facility, location, establishment or similar entity that cultivates, distributes,
delivers, supplies or processes cannabis for medical purposes relating to a quali ed patient or primary
caregiver, pursuant to state law and in accordance with Health and Safety Code Section 11362.5 et seq. A
dispensary shall include a dispensing collective or cooperative and shall include a mobile dispensary and
delivery service.
"Primary caregiver." This shall have the meaning set forth in Health and Safety Code Section 11362.7(d).
"Quali ed patient." This shall have the meaning set forth in Health and Safety Code Section 11362.7(f).
(Ord. No. 687, § 2, 10-10-2017)
16.62.050 - Cultivation.
Except for limited indoor cultivation for personal use as provided in subsection C. herein and
as permitted by Health and Safety Code Section 11362.2, no person or persons owning,
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leasing, occupying, or having charge or possession of any parcel of real property in the city of
Arroyo Grande, including primary caregivers and quali ed patients, collectives, cooperatives
or dispensaries, shall allow such parcel to be used for the cultivation of cannabis. Cultivation
of cannabis in violation of this chapter within the city of Arroyo Grande for any purpose is
prohibited, and is expressly declared to be a public nuisance.
The prohibition contained in this section is intended to constitute an express prohibition on
all outdoor and indoor cultivation of cannabis in the city of Arroyo Grande, except for limited
indoor cultivation for personal use.
The limited indoor cultivation of six or fewer live cannabis plants for personal use is
permitted within a private residence, or inside an accessory structure to a private residence
located upon the grounds of a private residence that is fully enclosed and secure, subject to
the following restrictions and standards, and only to the extent such cultivation is authorized
by state law:
Pursuant to Health and Safety Code Section 11362.2, "private residence" means a
house, an apartment unit, a mobile home, or other similar dwelling. A total of six living
plants may be planted, cultivated, harvested, dried, or processed at a single private
residence at one time.
No more than fty (50) contiguous square feet of the interior of the private residence,
shall be devoted to the cultivation of cannabis. The cannabis plants being cultivated
shall not exceed ten (10) feet in height.
The area used for cultivation shall comply with California Building, Electrical and Fire
Codes as adopted by city of Arroyo Grande.
The cannabis cultivation shall be concealed so that it is not visible from the exterior of
the property, the public right-of-way, and/or neighboring properties.
The lighting for the cultivation shall not exceed twelve hundred (1,200) watts. The use of
ammable or combustible products, including but not limited to, propane and butane
for cultivation and processing is prohibited. If cultivation is in an accessory structure,
light shall not emanate or be visible from outside the accessory structure.
The cannabis cultivation shall not adversely a ect the health or safety of the occupants
of other properties in the vicinity by creating dust, glare, heat, noise, noxious gasses,
odor, smoke, tra c, vibration or other impacts and shall not be maintained in a manner
so as to constitute a hazard due to use or storage of materials, processes, products or
wastes.
Nothing in this subsection is intended, nor shall it be construed, to preclude any
landlord from limiting or prohibiting cannabis cultivation by tenants.
(Ord. No. 687, § 2, 10-10-2017)
16.62.060 - Commercial cannabis activity, medical cannabis collectives, cooperatives and dispensaries prohibited.
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Except as provided in Section 16.62.070 related to deliveries, all commercial cannabis activity,
including but not limited to medical cannabis collectives, cooperatives and dispensaries
(including mobile dispensaries), are not permitted in or upon any premises in the city of
Arroyo Grande.
A medical cannabis dispensary shall not include the following uses, so long as such uses
comply with this code, Health and Safety Code Section 11362.5 et seq., and other applicable
law:
A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code.
A health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and
Safety Code.
A residential care facility for persons with chronic life-threatening illness licensed
pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code.
A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of
the Health and Safety Code.
A hospice or a home health agency licensed pursuant to Chapter 8 of Division 2 of the
Health and Safety Code.
(Ord. No. 687, § 2, 10-10-2017)
16.62.070 - Deliveries.
It shall be unlawful for any person to deliver cannabis or cannabis products or engage in activities that
constitute delivery of cannabis or cannabis products anywhere within the boundaries of in the city of Arroyo
Grande unless the cannabis delivery service and each delivery driver is licensed in accordance with the
provisions of Chapter 5.95 of this code.
Notwithstanding any provision of this chapter, nothing herein is intended to prohibit the transportation
of cannabis or cannabis products on public roads by a licensee duly licensed and acting in compliance with
Division 10 of the Business and Professions Code (Business and Professions Code Sections 26000 et seq.)
(Ord. No. 687, § 2, 10-10-2017)
16.62.080 - Violations and penalties.
Any person that violates any provision of this chapter shall be guilty of a separate o ense for
each and every day during any portion of which any such person commits, continues,
licenses, or causes a violation thereof, and shall be punished accordingly.
A violation of any provision of this chapter shall be subject to any enforcement remedies
available under the law and/or the Arroyo Grande Municipal Code. In addition, the city may
enforce a violation of this chapter by means of civil enforcement through a restraining order,
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a preliminary or permanent injunction, nuisance abatement procedures, or by any other
means authorized by law. Notwithstanding any other provision of this code, no conduct
which is protected from criminal prosecution pursuant to the Compassionate Use Act (Health
and Safety Code Sections 11362.5) and/or the Medical Marijuana Program Act (Health and
Safety Code Sections 11362.7—11362.85) shall be made subject to criminal prosecution by
this code. Violation of any provision in this chapter is a misdemeanor unless the city attorney
authorizes issuance of an infraction citation or les a complaint charging the o ense as an
infraction; or the court, upon the prosecutorial recommendation of the city attorney,
determines that the o ense is an infraction.
(Ord. No. 687, § 2, 10-10-2017)