O 694 ORDINANCE NO. 694
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. 694
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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. 694
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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. 694
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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 Brown, seconded by Council Member Harmon, and by the
following roll call vote to wit:
AYES: Council Members Brown, Harmon, and Mayor Hill
NOES: Mayor Pro Tern Ray
ABSENT: Council Member Barneich
the foregoing Ordinance was adopted this 14th day of August, 2018.
ORDINANCE NO. ( 'V(
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JIM ILL, MAYOR
ATTEST:
KE LY E ORE, CITY CLERK
APPROVED AS TO CONTENT:
JAMES ,,We AN, CITY MANAGER
APPROVED AS TO FORM: '
,may��L ��I/
H ER K. WHITHAM, CITY ATTORNEY
OFFICIAL CERTIFICATION
I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San.
Luis Obispo, State of California, do hereby certify under penalty of perjury, that
the attached Ordinance No. 694 which was introduced at a regular meeting of the
City Council on July 24, 2018; was passed and adopted at a regular meeting of
the City Council on the 14th day of August 2018; and was duly published in
accordance with State law (G.C. 40806).
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 23rd
day of August 2018.
KELLY 'E1/MORE, CITY CLERK
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