title
RECOMMEND ADOPTION OF AN ORDINANCE AMENDING MEDICAL CANNABIS REGULATIONS AND BANNING CERTAIN CANNABIS BUSINESSES
recommended action
RECOMMENDATION
Staff recommends that the Planning Commission adopt a resolution recommending that the City Council adopt an ordinance amending medical cannabis regulations and banning certain cannabis businesses.
body
Summary
City Council referred the issues of cleanup legislation relating to the City’s existing cannabis ordinance, as well as new or amended legislation relating to cannabis to the Legislation/Environmental Committee. The Committee considered matters relating to the existing regulations and potential new regulations and directed staff to prepare an ordinance amending existing medical cannabis regulations relating to locational restrictions and cultivation area calculations, and banning certain medical and all non-medical cannabis businesses. The proposed ordinance (Attachment A - Redline Ordinance) has been drafted for Planning Commission consideration and recommendation to City Council.
DISCUSSION
Background
On June 28, 2016, the Council adopted Resolutions 2016-06-28-1503-01 and 2016-06-28-1503-02 to place two qualified initiatives (Measures P and Q) before voters on the November 8, 2016 General Election ballot. The two initiatives sought to remove the prohibition on medical cannabis (marijuana) dispensaries, allow medical cannabis cultivation businesses within the City, and allow an increase to the business license tax on medical cannabis and marijuana-related businesses. Both measures were approved by the voters.
Measure P did three things: lifted the ban on medical cannabis dispensaries, expanded the maximum number of medical cannabis dispensaries, and allowed the establishment of medical cannabis cultivation locations. Measure P amended Chapters 5.10, 16.20, 16.80 and 16.240 of the Stockton Municipal Code (SMC) to:
• Remove the prohibition on dispensaries;
• Allow up to four (4) medical cannabis dispensaries in certain commercial and industrial zones, including the two (2) existing dispensaries;
• Allow up to four (4) cultivation sites in industrial zones;
• Impose location restrictions for dispensaries and cultivation operations, including distances from sensitive locations;
• Require a Conditional Use Permit (CUP), Operator Permit, and permits for all employees; and
• Prohibit dispensary owners/operators from owning/operating cultivation operations within the City.
As enacted, Measure P requires two types of permits for medical cannabis businesses: a CUP approved by the Planning Commission, and an Operator Permit approved by the Chief of Police. The CUP must be obtained prior to applying for an Operator Permit. The measure also sets zoning standards that restrict the location of dispensaries and cultivation facilities, including separation distances from sensitive land uses and from other cannabis businesses.
On June 20, 2017 City Council passed a motion to refer the issues of cleanup legislation relating to the City’s existing cannabis ordinance, as well as new or amended legislation relating to cannabis packaging, business applications, manufacturing, transportation and delivery, zoning, testing, and other related issues to the Legislation/Environmental Committee.
On June 27, 2017, the Governor signed into law Senate Bill 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act, which establishes a single system of administration for cannabis laws in California. This bill combined the Medical Cannabis Regulation and Safety Act and the Adult Use of Marijuana Act of 2016 (Proposition 64) into a single system.
On August 30, 2017, the Legislation/Environmental Committee discussed cannabis business regulation in response to the Council’s June 20, 2017 motion. The Committee voted to direct staff to prepare an ordinance amending medical cannabis regulations. Specifically, the committee requested enactment of a ban on all non-medical (or “adult use”) cannabis businesses and medical cannabis businesses engaging in manufacturing, testing, or distribution. The direction also included amendments to the existing cannabis regulations relating to locational restrictions when natural or man-made barriers exist and changing the calculation of the maximum cultivation area to be based on cannabis plant canopy area.
Present Situation
Consistent with the Committee’s direction, an ordinance amending the City’s cannabis regulations was prepared. These code amendments would allow flexibility regarding locational restrictions for proposed medical cannabis businesses and would allow cultivation businesses to take full advantage of the allowable square footage allowed under State law by limiting the cultivation area calculation to the space occupied by the cannabis plants and omitting space used for processing, harvesting, drying, packaging and related functions.
Banning non-medical cannabis businesses and the specified medical cannabis businesses would allow the City time to study these types of businesses and gain insight from other communities’ experience before devising regulations for Stockton. A ban is necessary to retain local control because State law provides that a community must expressly permit or prohibit cannabis businesses; having regulations that are silent and interpreted to mean that the businesses are not allowed does not satisfy this requirement.
At this time, a number of jurisdictions are still developing their policies and ordinances to address newly adopted state law. The ban will provide an opportunity for City staff to evaluate a range of new codes being promulgated by these jurisdictions to inform the council’s choices in moving forward.
To meet this requirement, the regulations must be in effect on January 1, 2018, which would require the Council to take final action on November 7, 2017. The ordinance, if adopted on November 7, would take effect on December 8, 2017, which would meet the State deadline.
Environmental Clearance
The proposed ordinance does not constitute a project under the California Environmental Quality Act (CEQA) and, therefore, no environmental analysis is needed.
Attachment A - Redline Ordinance
This report was prepared by Thomas Pace, Deputy Community Development Director, (209) 937-8446; thomas.pace@stocktonca.gov.