title
CANNABIS REGULATORY PROGRAM - POLICY PROJECT UPDATE DISPENSARIES
recommended action
RECOMMENDATION
Discussion and informational item only. No action is required.
body
Summary
In Spring of this year, City Council directed the City Manager to engage in an analysis of a cannabis program which evaluates other business lines beyond what is currently allowed under the city’s existing ordinances. Currently, city ordinances allow four (4) medical dispensaries and four (4) medical cultivation sites. Business lines could include testing, manufacturing, distribution and delivery for both medicinal and adult use (also known as recreational use).
As part of a phased approach, staff is presenting this information to the Commission as an update on the progress of this project including a recap of outreach that has been conducted to date. The update comes before the Commission in advance of a future Phase 1 proposal to allow the sale of adult use (recreational) cannabis in existing medical dispensaries.
DISCUSSION
Background
Measures P and Q were passed by the voters on November 8, 2016 through the General Election.
The two initiatives removed the prohibition on medical cannabis dispensaries, allowed medical cannabis cultivation businesses within the City, and allowed an increase to the business license tax on medical cannabis and cannabis-related businesses.
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 three (3) 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 measure also set 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 27, 2017, the Governor signed into law Senate Bill 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act, which established 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 November 7, 2017, City Council adopted ordinance 2017-11-07-1502, which made changes relative to the City’s medical cannabis businesses permitting program. This included banning non-medical cannabis businesses. Adoption of the ordinance implemented a ban on outdoor personal cultivation, and placed certain restrictions on indoor cultivation.
On January 9, 2018, the County of San Joaquin approved an agreement to provide consulting services for the development and implementation of a sustainable regulatory structure for commercial and personal cannabis. Their selection process deemed Freedman and Koski, Inc as the best suited consultant to conduct this analysis. The County’s agreement allowed other jurisdiction to enter in cooperative agreements with the vendor to perform the same cannabis policy services. On April 17, 2018, the City approved a Co-operative Agreement between the City and Freedman and Koski, Inc to conduct a review of the City’s current policy, conduct public engagement, and provide recommendations to improve the City’s current cannabis business regulatory program.
Present Situation
In Spring of this year, City Council directed to the City Manager to engage in an analysis of a cannabis program which evaluates other business lines beyond the city’s existing ordinances. The current ordinances allow for 4 medical dispensaries and 4 medical cultivation sites. Business lines could include testing, manufacturing, distribution and delivery for both medicinal and adult use (also known as recreational use).
As part of a phased approach, staff is presenting this information as an update on the progress of this project including a recap of outreach that has been conducted to date. The update comes before the Commission in advance of a future Phase 1 proposal to allow the sale of adult use (recreational) cannabis in existing medical.
The City is currently in Phase One of the process. Attachment A includes a revised scope of work and phases. Freedman and Koski Inc, the city’s consultant, will provide a presentation as an update of the overall project, the phased approach, and a recap of the community outreach.
Public Outreach
On July 18, 2018, the City hosted two community meetings to launch the public engagement for the project and to begin gathering data from the community on a variety of topics. Attachment B includes a summary of the findings.
This report is being provided only as an update on the project’s progress and does not require any action at this time.
Attachment A - Project Outline
Attachment B - Summary of Community Engagement