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CC 2016-03-08_11a Presentation Medical MarijuanaItem 11.A. Consideration of Development of a revised ordinance relating to medical marijuana Arroyo Grande City Council March 8, 2016 1 Background 2015 - October, Gov. Brown signed AB266, AB 243 and SB 643 – Medical Marijuana Regulation and Safety Act (MMRSA) On November 24, 2015 the City Council directed the preparation of an ordinance to become effective prior to the March 1st deadline to prohibit cultivation of marijuana to ensure clarity and consistency for purposes of enforcement, and to ensure local control. On December 1, 2015 the Planning Commission recommended that the Council adopt the proposed ordinance prohibiting medical marijuana dispensaries, cooperatives and collectives, cultivation of medical marijuana, and deliveries of medical marijuana or medical cannabis products. On January 12 and 26th the Council introduced and adopted an ordinance to expressly makes clear that cultivation and all commercial medical marijuana uses are prohibited would provide an opportunity to reduce enforcement issues relating to cultivation operations and preserves local control. Clean up language inserted regarding delivery services consistent with our existing ordinance. 2 Analysis Concerns regarding the severity of the ordinance by those who advocate for medical marijuana and by delivery entities who wish to deliver inside the City limits Concerns regarding past nuisance issues and safety concerns created by a group growing “collectively” in the City Testimony received at Council and PC regarding demonstrated significant nuisance issues as well as requests for regulation instead of prohibition for cultivation. Although there are widely recognized benefits to medical marijuana.. The regulatory landscape is fluid and evolving. Adoption of the ord. does not preempt our ability to modify the ordinance in the future should changes at the ballot or courts or regulatory schemes precipitate another look. 3 Criteria to weigh alternatives Provide some opportunity for residents to legally obtain or grow medical cannabis in the City limits for the purposes of medical use Maintain local control instead of state regulation over the long term Ensure regulations do not impact enforcement capabilities Ensure regulations are unambiguous and legally defensible 4 Alternatives Do not modify existing ordinance and maintain a total ban on medical marijuana within City limits No opportunity to legally obtain within the City Maintains local control Clear and easily enforced Unambiguous and legally defensible Permit limited cultivation of medical marijuana Limits grow area to 50 sq. ft. with 10 ft. height limit within a SF residence Maintains local control Potentially increased enforcement issues Legally defensible but continually evolving 5 Alternatives, continued Revise ordinance to potentially allow deliveries Allow restricted deliveries in the City Unless prohibited, will become state regulated in 2018 May result in increased neighborhood nuisance issues Operates under legal gray area of cooperatives/collectives to qualified patients Allow a medical marijuana dispensary Allow residents and non residents to obtain from a “brick and mortar” dispensary Maintains local control Few in the region – none within the county and would likely create unintended consequences Legally defensible If modifications are directed, a revised ordinance would require Planning Commission review and recommendation prior to Council consideration 6 Recommendation It is recommended that the City Council provide direction regarding the development of a revised medical marijuana ordinance 7 C. The limited indoor cultivation of marijuana in the City of Arroyo Grande is permitted subject to the following restrictions and standards: 1. The marijuana is cultivated by a qualified patient for his or her personal use. 2. The marijuana is cultivated inside a detached single family dwelling on property where the qualified patient resides on a full-time basis. 3. No more than fifty (50) contiguous square feet of the interior of the dwelling, shall be devoted to the cultivation of medical marijuana. The medical marijuana cultivation area shall not exceed 10 feet in height. These restrictions apply regardless of how many qualified patients are residing on the property. 4. The area used for cultivation complies with California Building, Electrical and Fire Codes as adopted by City of Arroyo Grande. 5. The marijuana cultivation is concealed so that it is not visible from the exterior of the property, the public right-of-way, and/or neighboring properties. 6. All medical marijuana cultivated pursuant to this section shall be for the personal use only of a qualified patient residing on the property and may not be distributed to any other person, collective or cooperative. The qualified patient shall not participate in medical marijuana cultivation in any other residential location within the City of Arroyo Grande. 7. The lighting for the cultivation shall not exceed 1200 watts. The use of flammable or combustible products, including but not limited to, propane and butane for cultivation and processing is prohibited. 8. The cultivation of marijuana shall not take place in a kitchen, bathroom or occupied bedroom of the dwelling. 9. The marijuana cultivation shall not adversely affect the health or safety of the occupants of other property in the vicinity by creating dust, glare, heat, noise, noxious gasses, odor, smoke, traffic, 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. 10. Nothing in this subsection is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting medical marijuana cultivation by tenants. 8 9 Other jurisdictions in the County County set for return to board of supervisors to regulate cultivation. SLO Resolution clarifying zoning code implicitly does not allow marijuana dispensaries by not including them within the code. Delivery not explicitly banned, but has not issued a license for mobile delivery as of yet ordinance in place about offensive smells wafting over property lines due to outdoor grow operation Atascadero Planning commission recommended regulating cultivation Mobile delivery is banned Morro Bay and Grover Beach Allows cultivation for card carrying patients and caregivers Do not ban delivery Pismo Ban on cultivation but reconsidering in March Allows delivery Paso Robles Ban on cultivation Allows delivery 10 AB 243 (Wood) Medical Marijuana Places the Department of Food and Agriculture (DFA) in charge of licensing and regulation of indoor and outdoor cultivation sites. Creates a Medical Cannabis Cultivation Program within the department. Mandates the Department of Pesticide Regulation (DPR) to develop standards for pesticides in marijuana cultivation, and maximum tolerances for pesticides and other foreign object residue. Mandates the Department of Public Health (DPH) to develop standards for production and labelling of all edible medical cannabis products.  Assigns joint responsibility to DFA, Department of Fish and Wildlife (DFW), and the State Water Resources Control Board (SWRCB) to prevent illegal water diversion associated with marijuana cultivation from adversely affecting California fish population. Specifies that DPR, in consultation with SWRCB, is to develop regulations for application of pesticides in all cultivation. Specifies various types of cultivation licenses. Directs the multi-agency task force headed by DFW and SWRCB to expand its existing enforcement efforts to a statewide level to reduce adverse impacts of marijuana cultivation, including environmental impacts such as illegal discharge into waterways and poisoning of marine life and habitats. 11 AB 266 (Bonta, Cooley, Jones-Sawyer, Lackey, Wood) Medical Marijuana Protects local control as it establishes a statewide regulatory scheme, headed by the Bureau of Medical Marijuana Regulation (BMMR) within the Department of Consumer Affairs (DCA). Provides for dual licensing: state will issue licenses, and local governments will issue permits or licenses to operate marijuana businesses, according to local ordinances. State licenses will be issued beginning in January 2018. Revocation of a local license or permit will unilaterally terminate the ability of the business to operate in that jurisdiction. Expressly protects local licensing practices, zoning ordinances, and local constitutional police power. Caps total cultivation for a single licensee at four acres statewide, subject to local ordinances. Requires local jurisdictions that wish to prevent delivery services from operating within their borders to enact an ordinance affirmatively banning this activity. No specific operative date for the ban is specified. Specifies that DCA will issue the following licenses: Dispensary, Distributor, Transport, and Special Dispensary Status for licensees who have a maximum of three dispensaries. Specifies various sub-categories of licensees (indoor cultivation, outdoor cultivation, etc.) Limits cross-licensing to holding a single state license in up to two separate license categories, as specified. Prohibits medical marijuana licensees from also holding licenses to sell alcohol. Grandfathers in vertically integrated businesses (i.e. businesses that operate and control their own cultivation, manufacturing, and dispensing operations) if a local ordinance allowed or required such a business model and was enacted on or before July 1, 2015. Also requires such businesses to have operated in compliance with local ordinances, and to have been engaged in all the covered activities on July 1, 2015. Requires establishment of uniform health and safety standards, testing standards, and security requirements at dispensaries and during transport of the product. Specifies a standard for certification of testing labs, and specified minimum testing requirements. Prohibits testing lab operators from being licensees in any other category, and from holding a financial or ownership interest in any other category of licensed business. Includes a labor peace agreement under which unions agree not to engage in strikes, work stoppages, etc. and employers agree to provide unions reasonable access to employees for the purpose of organizing them. Specifies that such an agreement does not mandate a particular method of election. Provides for civil penalties for unlicensed activity, and specifies that applicable criminal penalties under existing law will continue to apply. Specifies that patients and primary caregivers are exempt from the state licensing requirement, and provides that their information is not to be disclosed and is confidential under the California Public Records Act. Phases out the existing model of marijuana cooperatives and collectives one year after DCA announces that state licensing has begun. Preserves enforcement authority of the city of Los Angeles with respect to Measure D, the local regulatory structure for medical marijuana within the city limits. 12 SB 643 (McGuire) Medical Marijuana Directs the California Medical Board to prioritize investigation of excessive recommendations by physicians. Imposes fines ($5000.00) against physicians for violating prohibition against having a financial interest in a marijuana business. Recommendation for cannabis without a prior examination constitutes unprofessional conduct. Imposes restrictions on advertising for physician recommendations. Places DFA in charge of cultivation regulations and licensing, and requires a track and trace program. Codifies dual licensing (state license and local license or permit), and itemizes disqualifying felonies for state licensure. Places DPR in charge of pesticide regulation; DPH in charge of production and labeling of edibles. Upholds local power to levy fees and taxes.  13