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HomeMy WebLinkAboutURGNCY Ord 1300 and Ord 1301 - PDMC 25.34.120CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: CONSIDERATION OF AN URGENCY ORDINANCE AND A ZONING ORDINANCE AMENDMENT THAT WILL AMEND PALM DESERT MUNICIPAL CODE SECTION 25.34.120 TO PROHIBIT CANNABIS DISPENSARIES, CANNABIS MANUFACTURES, CULTIVATION, AND DELIVERY OF CANNABIS IN THE CITY. SUBMITTED: Tony Bagato, Acting Director of Community Development APPLICANT: City of Palm Desert CASE NO: Urgency Ordinance and ZOA 15-322 DATE: December 1, 2015 CONTENTS: Urgency Ordinance No.1300 Ordinance No. 1301 Legal Notices BB&K Memo Recommendation Waive further reading, and: 1. Adopt Ordinance No. 1300 establishing an Interim Urgency Ordinance to create a temporary moratorium on cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis in the City, and 2. Pass Ordinance No. 1301to seconding reading, approving ZOA 15-322 amending Palm Desert Municipal Code Section 25.34.120 to prohibit cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis in the City. Planning Commission Action The proposed ZOA is scheduled for the December 1, 2015, Planning Commission meeting. Staff will present the Planning Commission recommendation at the City Council meeting on December 10, 2015. Staff Report Urgency Ordinance and ZOA 15-322 - Cannabis Page 2 of 5 December 10, 2015 Executive Summa Approval of staff's recommendation will approve an interim urgency ordinance to create a temporary moratorium on cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis in the City, and will approve a Zoning Ordinance Amendment (ZOA) that prohibit medical cannabis dispensaries, cultivation, and transportation/delivery. Palm Desert Municipal Code Section 25.34.120 currently states: "Medical marijuana dispensaries are prohibited in all City zones, and no permit shall be issued therefor." (Ord No.1259). The current ordinance does not address marijuana/cannabis cultivation and delivery, and staff is recommending an interim urgency ordinance establishing a temporary moratorium on cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis in the City. In addition, there have been recent changes in State law that will establish State regulations after March 1, 2016. The City may pass an ordinance to regulate or prohibit medical marijuana/cannabis before March 1, 2016, however, if the City does not adopt a new ordinance, only the State regulations would apply to medical marijuana/cannabis use and the City would not have the same control to regulate or prohibit them. Due to the complexity of the legal and social issues surrounding medical cannabis, staff is recommending that the City adopt a Zoning Ordinance Amendment that will institute a complete ban on medical cannabis dispensaries, cultivation, and transportation/delivery. Background In December 2005, the City Council adopted Ordinance No. 1106, Chapter 25.34.120 of the Palm Desert Municipal Code relative to Medical Marijuana Dispensaries as an urgency ordinance prohibiting dispensaries within the City limits. The current ordinance does not specifically prohibit other medical cannabis uses, such as planting, growing, harvesting, drying, storing, processing, or delivery. The City has received several citizen complaints regarding medical marijuana cultivation, processing and delivering in residential and commercial districts. The reporting parties indicate that this activity creates health and safety concerns, noxious odors, and an increase in unwanted vehicular traffic within neighborhoods. The California legislature recently adopted legislation identified as the Medical Marijuana Regulation and Safety Act (AB 243, AB 266, and SIB 643)(MMRSA) to comprehensively regulate medical marijuana (medical cannabis). The MMRSA recognizes and preserves local control to regulate or ban medical cannabis cultivation, transportation, and distribution. The MMRSA confirms and clarifies that, in addition to the complete land use control over retail dispensaries recognized in the City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal. 4th 729, municipalities have the power to regulate or ban the cultivation and distribution of medical marijuana. Maral v. City of Live Oak (2013) 221 Cal.AppAth 975. Staff Report Urgency Ordinance and ZOA 15-322 - Cannabis Page 3 of 5 December 10, 2015 Although the MMRSA allows municipalities to regulate or ban cannabis cultivation, manufacturing, transportation, and distribution of medical cannabis within their jurisdictions, it requires some local enabling legislation to accomplish some aspects of the regulations a jurisdiction wants to adopt. If a city or county chooses to regulate these activities comprehensively, it must adopt an overlay of local regulatory standards that are at least as strict as the state's default regulations. Specifically, the MMRSA provides that if a city or county has not banned or regulated cannabis cultivation by March 1, 2016, then cultivation in that jurisdiction will be subject only to state law on this issue.' Discussion Although a "prohibited unless permitted" zoning ordinance has been interpreted by the courts to prohibit marijuana dispensaries, to some, the Riverside decision leaves open the following issues: • Whether a city's "similar use determination" is potentially available to determine that marijuana dispensaries and cultivation are similar to other permitted uses and thus should also be permitted (i.e., listed marijuana uses as expressly prohibited and not subject to the similar use determination would remove all doubt); and • Whether transportation and non -retail distribution are regulated under existing municipal zoning codes. The MMRSA gives the City explicit authority to close these issues. The cultivation, transportation, and distribution of marijuana can create problems relating to public health and safety, crime, water and air quality, and energy consumption. Marijuana uses can create nuisance activity such as loitering and criminal activity in business and residential districts. Specifically, mobile delivery can create issues relating to responsibility and resources to monitor and enforce state law, questions of patient qualification, and risks relating to the high use of large sums of cash for mobile transactions. Cultivation can create air quality, energy, and water quality damage and impair building maintenance and safety. For example, the increased moisture necessary to grow marijuana indoors can create excessive mold growth and structural damage. Additionally, the equipment utilized to grow marijuana indoors can pose a risk of fire and electrical hazards due to dangerous electrical alterations and use. Further, inadequate ventilation combined with the use of pesticides and fertilizers in an enclosed space can lead to chemical contamination within structures. Staff is recommending that the City adopt an ordinance banning or regulating these uses. This is especially important in light of the looming March 1, 2016, deadline to adopt cultivation regulations or a ban. Staff is recommending that the City develop regulations or adopt a ban for: 1) medical marijuana distribution facilities; 2) marijuana cultivation; and 3) marijuana transportation. 1 It is possible that this deadline provision will be repealed and allow cultivation regulation any time. Staff Report Urgency Ordinance and ZOA 15-322 - Cannabis Page 4 of 5 December 10, 2015 Regulations of Medical Cannabis Dispensaries As indicated above, the City of Riverside successfully defended its total ban of medical cannabis distribution facilities. The City of Riverside zoning ordinance categorizes medical marijuana dispensaries as prohibited uses throughout the city and provides that they may be abated as public nuisances. While the City of Riverside has exercised a total ban on medical marijuana dispensaries, other cities have decided to permit and regulate dispensaries within their jurisdiction. Regulations can include, for example: • Limiting the number of dispensaries. • Separation requirements from parks, schools, churches, and other dispensaries. • Limiting the use to a specific zoning designation. • Security requirements for the operation of the dispensary. • Hours of operation. • Loitering prohibition. Regulation of Medical Cannabis Cultivation The City of Live Oak has successfully defended a total ban on the cultivation of marijuana for any purpose within that city. It's legally upheld regulation provides that "marijuana cultivation by any person, including primary caregivers and qualified patients, collectives, cooperatives, or dispensaries" is prohibited in all zones. The MMRSA allows this approach. Alternatively, some cities are allowing cultivation with regulations such as: • Outdoor, residential cultivation so long as plants are enclosed, screened, and five (5) feet from the property line. • Indoor cultivation only with a permit. • Property owner must approve of cultivation on the property. • Limiting number of plants. Should the City choose to leave cultivation unregulated, under the currently enacted version of the MMRSA, on March 1, 2016, only state law would control cultivation activities in Palm Desert. Regulation of Cannabis Delivery Mobile delivery of products consistently creates issues for cities because of the inherent transitory nature of the activity. A quick search of weedmaps.com identifies several cannabis dispensaries that currently operate in Palm Desert. These mobile delivery services are often attempts to avoid the effects of local dispensary bans. State law will regulate the delivery of medical marijuana unless delivery is explicitly prohibited by local ordinance. In light of the foregoing, the City has the option to ban or regulate mobile delivery. Regulations could include the following: Staff Report Urgency Ordinance and ZOA 15-322 - Cannabis Page 5 of 5 December 10, 2015 • Hours of operation. • Amount of money or marijuana that can be carried at one time. • Time spent at one location. Conclusion The City has multiple options for the ban or regulation of medical cannabis. Due to the complexity of the legal and social issues surrounding medical cannabis, staff is recommending that the City institute a complete ban on medical cannabis dispensaries, cultivation, and transportation/delivery. Environmental The Ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment), 1 5060(c)(3) (the activities are not "projects" as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because they have no potential for resulting in physical change to the environment, directly or indirectly and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it can be seen with certainty that it will not have a significant effect or physical change to the environment. Fiscal Impact No fiscal impact to the City associated with the Urgency Ordinance and the Zoning Ordinance Amendment. Submitted By: Tony Bagato, Acting Iffirector of Community Development M. Wohlmuth, City Manager ORDINANCE NO. 1300 AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 ESTABLISHING A TEMPORARY MORATORIUM ON CANNABIS DISPENSARIES, CANNABIS MANUFACTURERS, CULTIVATION, AND DELIVERY OF CANNABIS IN THE CITY PENDING THE COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S MUNICIPAL AND ZONING CODES WHEREAS, in 1996, the voters of the State of California approved Proposition 215 (codified as Health & Safety Code Section 11362.5 et seq. and entitled "The Compassionate Use Act of 1996"); and WHEREAS, the intent of Proposition 215 was to enable seriously ill Californians to legally possess, use, and cultivate marijuana for medical use under state law; and WHEREAS, in 2003, the California Legislature adopted SB 420, the Medical Marijuana Program ("MMP"), codified as Health and Safety Code Section 11362.7 et seq., which permits qualified patients and their primary caregivers to associate collectively or cooperatively to cultivate marijuana for medical purposes without being subject to criminal prosecution under the Penal Code; and WHEREAS, neither the Compassionate Use Act ("CUK) nor the MMP require nor impose an affirmative duty or mandate upon local governments to allow, authorize, or sanction the establishment of facilities that cultivate or process medical marijuana within its jurisdiction; and WHEREAS, in May 2013, the California Supreme Court issued its decision in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal. 4th 729, holding that cities have the authority to regulate or ban outright medical marijuana land uses; and WHEREAS, under the Federal Controlled Substances Act, codified in 21 U.S.C. Section 801 et seq., the use, possession, and cultivation of marijuana are unlawful and subject to federal prosecution without regard to a claimed medical need; and WHEREAS, on October 9, 2015, Governor Jerry Brown signed the "Medical Marijuana Regulation and Safety Act" ("Act") into law; and WHEREAS, the Act becomes effective January 1, 2016 and contains provisions which allow for local governments to regulate licenses and certain activities thereunder; and ORDINANCE NO.1300 WHEREAS, the Act contains a provision which sets forth that the State shall become the sole authority for regulation under certain parts of the Act, unless local governments have "land use regulations or ordinances regulating or prohibiting the cultivation of marijuana..." (Health & Saf. Code, §11362.777(c)(4)); and WHEREAS, several California cities have reported negative impacts of marijuana cultivation, processing, and distribution uses, including offensive odors, illegal sales, and distribution of marijuana, trespassing, theft, violent robberies and robbery attempts, fire hazards, and problems associated with mold, fungus, and pests; and WHEREAS, marijuana plants, as they begin to flower and for a period of two months or more, produce a strong odor, and detectable far beyond property boundaries if grown outdoors; and WHEREAS, the strong smell of marijuana creates an attractive nuisance, alerting persons to the location of the valuable plants, and creating a risk of burglary, robbery, or armed robbery; and WHEREAS, the indoor cultivation of marijuana has potential adverse effects to the health and safety of the occupants; including structural damage to the building due to increased moisture and excessive mold growth which can occur and can pose a risk of fire and electrocution; additionally, the use of pesticides and fertilizers can lead to chemical contamination within the structure; and WHEREAS, the Attorney General's August 2008 Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use recognizes that the cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that nearby homes or businesses may be negatively impacted by nuisance activity such as loitering or crime; and WHEREAS, based on the experiences of other cities, these negative effects on the public health, safety, and welfare are likely to occur, and continue to occur, in the City due to the establishment and operation of marijuana cultivation, processing, and distribution uses; and WHEREAS, the City's Municipal Code ("Code") does not authorize, nor explicitly prohibit, the cultivation, processing, delivery and distribution of medical cannabis; and WHEREAS, based on the findings above, the potential establishment of cannabis dispensaries, cultivation, cannabis manufacturers and delivery of cannabis uses in the City without regulation poses a current and immediate threat to the public health, safety and welfare in the City due to the negative land use and other impacts of such uses as described above; and WHEREAS, the issuance or approval of business licenses, subdivisions, use permits, variances, building permits, or any other applicable entitlement for cannabis RAI ORDINANCE NO. 1300 dispensaries, cultivation, cannabis manufacturers and delivery of cannabis will result in the aforementioned threat to public health, safety, or welfare; and WHEREAS, it is in the interest of the City, its residents, and its lawfully permitted businesses that City staff undertake a study to consider zoning, zoning ordinance amendments, and/or other measures to regulate the establishment and operation of cannabis dispensaries, cultivation, cannabis manufacturers and delivery of cannabis uses in the City; and WHEREAS, California Government Code Section 65858 expressly authorizes the City Council to adopt by four -fifths (4/5) vote, without following the procedures otherwise required for the adoption of a zoning ordinance, an urgency ordinance which is necessary for the immediate protection of the public health, safety and welfare; and WHEREAS, it is the present intention of the City Council to keep this Urgency Ordinance in effect only until the adoption of an ordinance establishing regulations regarding commercial and industrial cultivation, processing, and distribution of medical marijuana in the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals The City Council hereby finds that all of the foregoing recitals and the staff report presented herewith are true and correct and are hereby incorporated and adopted as findings of the City Council as if fully set forth herein. SECTION 2. Findings The City Council hereby finds, determines and declares that this Urgency Ordinance adopted pursuant to California Government Code Section 65858 is necessary because: A. The Act becomes effective January 1, 2016 and contains provisions which allow for local governments to regulate licenses and certain activities thereunder. B. The Act contains a provision which sets forth that the State shall become the sole authority for regulation under certain parts of the Act, unless local governments have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana in place. C. To allow time for the City to consider, study, and enact regulations for medical marijuana cultivation, processing, and distribution uses, it is necessary to temporarily suspend the approval of any and all use permits, variances, building permits, or any other entitlement or permit authorizing the establishment of marijuana cultivation uses, 3 ORDINANCE NO. 1300 marijuana processing uses, and marijuana dispensaries as defined herein, as such uses may be in conflict with the development standards and implementation regulations that the City will ultimately impose after the City has considered and studied this issue, which shall be accomplished within a reasonable time. D. A moratorium will provide the City with time to study marijuana cultivation uses, marijuana processing uses, and marijuana dispensaries and potential impacts such land uses may have on the public health, safety, and welfare. E. Without the imposition of a temporary moratorium on the establishment of marijuana cultivation, processing, and dispensary uses as described herein, the City anticipates that one (1) or more commercial cannabis cultivation centers may attempt to locate in the City before a non -urgency ordinance would become effective. F. There is a current and immediate threat to the public health, safety, and welfare of the City and its community, thereby necessitating the immediate enactment of this moratorium as an urgency ordinance in order to ensure that permits for such facilities are established only under adequate regulations. Imposition of a moratorium will allow the City sufficient time to conclude the preparation of a comprehensive ordinance for the regulation of such activities. SECTION 3. Urgent Need Based on the foregoing recitals and findings, all of which are deemed true and correct, this interim ordinance is urgently needed for the immediate preservation of the public health, safety, and welfare. This interim ordinance shall take effect immediately upon adoption and shall be of no further force and effect forty-five (45) days following the date of its adoption unless extended in accordance with the provisions set forth in Government Code Section 65858. SECTION 4. Definitions For purposes of this ordinance, the following definitions shall apply: A. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. B. "Cannabis dispensary" means a facility where medical cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either 9 ORDINANCE NO. 1300 individually or in any combination, for retail sale, including an establishment that delivers medical cannabis and cannabis products as part of a retail sale. C. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured medical cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or relabels its container D. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of medical cannabis. E. "Delivery" means the commercial transfer of medical cannabis or cannabis products. SECTION 5. Prohibited Use For the period of this ordinance or any extension thereof cannabis dispensaries, cultivation, cannabis manufacturers, and delivery of cannabis, as defined herein, shall be explicitly declared prohibited uses in all zoning districts of the City. During the effective period of this ordinance, no use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, shall be approved or issued for the establishment or operation of a dispensaries, cannabis cultivation, cannabis manufacturers, and delivery of cannabis as defined herein in any zoning district, and no person shall otherwise establish such businesses or operations in any zoning district. SECTION 6. Penalty for Violation No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this Urgency Ordinance. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this Urgency Ordinance, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this Urgency Ordinance, any condition caused or permitted to exist in violation of any of the provisions of this Urgency Ordinance is declared a public nuisance and may be abated as provided in Chapter 8.20 of the Palm Desert Municipal Code and/or under state law. SECTION 7. Authority This interim urgency ordinance is enacted pursuant to the authority conferred upon the City Council of the City of Palm Desert by Government Code 65858, and therefore shall be in full force and effect immediately upon its adoption by a four -fifths (4/5) vote of the City Council. This interim urgency ordinance shall continue in effect for 5 ORDINANCE NO. 1300 forty-five (45) days from the date of its adoption and shall thereafter be of no further force and effect unless, after notice pursuant to Government Code Section 65090 and a public hearing, the City Council extends the interim urgency ordinance for an additional period of time pursuant to Government Code 65858. Government Code 65858 further provides that such an urgency measure may be extended following compliance with that section for up to an additional twenty-two (22) months and fifteen (15) days beyond the original forty-five(45) day period. SECTION 8. Council Direction During the period of this ordinance, and any extension thereof, the City Council hereby directs City Staff to: (1) review and consider options for the regulation or prohibition of cannabis cultivation, cannabis manufacturing, cannabis dispensary and cannabis delivery uses in the City, including but not limited to the development of appropriate rules and regulations governing the location and operation of such uses; and (2) to issue a written report describing the measures which the City has taken to address the conditions which led to the adoption of this ordinance with the City Council ten (10) days prior to the expiration of this interim urgency ordinance, or any extension thereof, and such report shall be made available to the public. SECTION 9. CEQA The City Council finds that this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections 15060(c)(3) because this activity is not a project as defined by Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, 15060(c)(3) (the activities are not "projects" as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because they have no potential for resulting in physical change to the environment, directly or indirectly and pursuant to CEQA Guidelines Section 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it can be seen with certainty that it will not have a significant effect or physical change to the environment. SECTION 10. Severability If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Urgency Ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Urgency Ordinance. The City Council hereby declares that it would have adopted this Urgency Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. 0 ORDINANCE NO. 1300 SECTION 11. Publication The City Clerk shall certify as to the adoption of this Urgency Ordinance and shall cause it to be published within fifteen (15) days of the adoption and shall post a certified copy of this Urgency Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with California Government Code Section 36933. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the day of 2015, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT HARGREAVES CITY ATTORNEY Susan Marie Weber MAYOR rl ORDINANCE NO. 1300 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF PALM DESERT ) I, Rachelle D. Klassen, City Clerk of the City of Palm Desert, California, do hereby certify that the foregoing Urgency Ordinance was adopted at a regular meeting of the City Council of the City of Palm Desert held on the th day of 12015, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ORDINANCE NO.1301 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA AMENDING PALM DESERT MUNICIPAL CODE SECTION 25.34.120 TO PROHIBIT CANNABIS DISPENSARIES, CANNABIS MANUFACTURERS, CULTIVATION, AND DELIVERY OF CANNABIS IN THE CITY. WHEREAS, in 1996, the voters of the State of California approved Proposition 215 (codified as Health & Safety Code Section 11362.5 et seq. and entitled "The Compassionate Use Act of 1996"); and WHEREAS, the intent of Proposition 215 was to enable seriously ill Californians to legally possess, use, and cultivate marijuana for medical use under state law; and WHEREAS, in 2003, the California Legislature adopted SB 420, the Medical Marijuana Program ("MMP"), codified as Health and Safety Code Section 11362.7 et seq., which permits qualified patients and their primary caregivers to associate collectively or cooperatively to cultivate marijuana for medical purposes without being subject to criminal prosecution under the Penal Code; and WHEREAS, neither the Compassionate Use Act ("CUK) nor the MMP require nor impose an affirmative duty or mandate upon local governments to allow, authorize, or sanction the establishment of facilities that cultivate or process medical marijuana within its jurisdiction; and WHEREAS, in May 2013, the California Supreme Court issued its decision in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal. 4th 729, holding that cities have the authority to regulate or ban outright medical marijuana land uses; and WHEREAS, under the Federal Controlled Substances Act, codified in 21 U.S.C. Section 801 et seq., the use, possession, and cultivation of marijuana are unlawful and subject to federal prosecution without regard to a claimed medical need; and WHEREAS, on October 9, 2015, Governor Jerry Brown signed the "Medical Marijuana Regulation and Safety Act" ("Act") into law; and WHEREAS, the Act becomes effective January 1, 2016 and contains provisions which allow for local governments to regulate licenses and certain activities thereunder; and WHEREAS, the Act contains a provision which sets forth that the State shall become the sole authority for regulation under certain parts of the Act, unless local governments have "land use regulations or ordinances regulating or prohibiting the cultivation of marijuana..." (Health and Safety Code §11362.777(c)(4); and ORDINANCE NO. 1301 WHEREAS, several California cities have reported negative impacts of marijuana cultivation, processing, and distribution uses, including offensive odors, illegal sales, and distribution of marijuana, trespassing, theft, violent robberies and robbery attempts, fire hazards, and problems associated with mold, fungus, and pests; and WHEREAS, marijuana plants, as they begin to flower and for a period of two months or more, produce a strong odor, and detectable far beyond property boundaries if grown outdoors; and WHEREAS, the strong smell of marijuana creates an attractive nuisance, alerting persons to the location of the valuable plants, and creating a risk of burglary, robbery, or armed robbery; and WHEREAS, the indoor cultivation of marijuana has potential adverse effects to the health and safety of the occupants; including structural damage to the building due to increased moisture and excessive mold growth which can occur and can pose a risk of fire and electrocution; additionally, the use of pesticides and fertilizers can lead to chemical contamination within the structure; and WHEREAS, the Attorney General's August 2008 Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use recognizes that the cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that nearby homes or businesses may be negatively impacted by nuisance activity such as loitering or crime; and WHEREAS, based on the experiences of other cities, these negative effects on the public health, safety, and welfare are likely to occur, and continue to occur, in the City due to the establishment and operation of marijuana cultivation, processing, and distribution uses; and WHEREAS, the City's Municipal Code ("Code") does not address the cultivation, processing, delivery and distribution of medical cannabis; and WHEREAS, based on the findings above, the potential establishment of cannabis dispensaries, cultivation, cannabis manufacturers and delivery of cannabis uses in the City without regulation poses a current and immediate threat to the public health, safety and welfare in the City due to the negative land use and other impacts of such uses as described above; and WHEREAS, the issuance or approval of business licenses, subdivisions, use permits, variances, building permits, or any other applicable entitlement for cannabis dispensaries, cultivation, cannabis manufacturers and delivery of cannabis will result in the aforementioned threat to public health, safety, or welfare. E I*]N0]1`.I_1`.us] =1`L9>1111111KIE NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Palm Desert as follows: SECTION 1. Incorporation of Recitals. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations and further finds that the following regulations are necessary and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert from the identified adverse impacts of marijuana cultivation, processing, dispensing, delivery, and distribution within the City limits. SECTION 2. Amendment to the Palm Desert Municipal Code. Section 25.34.120 of the Palm Desert Municipal Code is hereby amended to read as follows: "25.34.120 Medical Cannabis Uses A. Purpose and Intent 1. It is the purpose and intent of this Section, pursuant to the City's constitutional and charter authority to promote and protect the health, safety, and general welfare of the residents and businesses within the City by regulating the cultivation, distribution, delivery and processing of medical cannabis. 2. Nothing in this chapter shall be construed to (1) permit persons to engage in conduct that endangers others or causes a public nuisance, (2) permit the use or cultivation of cannabis for non -medical purposes, or (3) permit any activity relating to the dispensing, cultivation, processing, delivery or distribution of cannabis that is illegal under state or federal law. B. Definitions For purposes of this Section, the following definitions shall apply: 1. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. 2. "Cannabis dispensary' means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. 4 ORDINANCE NO. 1301 3. "Cannabis manufacturer" means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or relabels its container 4. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. 5. "Delivery" means the commercial transfer of cannabis or cannabis products. C. Prohibited Activities 1. Cannabis dispensaries, cultivation, cannabis manufacturers, delivery of cannabis, and other medical cannabis uses, as defined herein, shall be considered prohibited uses in all zoning districts of the City. No use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, shall be approved or issued for the establishment or operation of a dispensaries, cannabis cultivation, cannabis manufacturers, and delivery of cannabis as defined herein in any zoning district, and no person shall otherwise establish such businesses or operations in any zoning district. 2. Nothing in this Section shall be construed to permit the sale, processing, or distribution of medical cannabis for commercial use or profit as is otherwise prohibited under state or federal law. D. Prohibited Activities Declared A Public Nuisance Any use or condition caused or permitted to exist in violation of this Section shall be and is hereby declared a public nuisance that may be abated by the City and/or subject to all available legal remedies, including but not limited to civil injunctions. E. Penalties For Violations 1. Violations of this Section constitute an infraction or misdemeanor and may be enforced by any applicable law. Notwithstanding any other provision of this Code, a violation of this Section is subject to civil and criminal penalties. 2. Each person is guilty of a separate offense each day a violation is allowed to continue and every violation of this chapter shall constitute a separate offense and shall be subject to all remedies." SECTION 3. Compliance with the California Environmental Quality Act. The City Council finds that this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines Sections 15060(c)(3) because this activity is M ORDINANCE NO.1301 not a project as defined by Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that it will not have a significant effect or physical change to the environment. SECTION 4. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance for any reason is held to be invalid or unconstitutional by the 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 adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 5. Publication. The City Clerk shall certify as to the adoption of this Ordinance and shall cause it to be published within fifteen (15) days of the adoption and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk, in accordance with California Government Code Section 36933. PASSED, APPROVED and ADOPTED by the City Council of the Desert, California, at its regular meeting held on the day of 2015, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT. CALIFORNIA Susan Marie Weber MAYOR City of Palm 41 CITY OF PALM DESERT LEGAL NOTICE INTERM URGENCY ORDINANCE NOTICE OF INTENT TO ADOPT AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ENACTED PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 65858 ESTABLISHING A TEMPORARY MORATORIUM ON CANNABIS DISPENSARIES, CANNABIS MANUFACTURERS, CULTIVATION, AND DELIVERY OF CANNABIS IN THE CITY PENDING THE COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S MUNICIPAL AND ZONING CODES CEQA Review: The Ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment), 1 5060(c)(3) (the activities are not "projects" as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because they have no potential for resulting in physical change to the environment, directly or indirectly and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it can be seen with certainty that it will not have a significant effect or physical change to the environment. Project Location/ Description: City-wide Recommendation: Staff is recommending approval of the Interim Urgency Ordinance. Public Hearing: The public hearing will be held before the City Council on December 10, at 4:00 pm. Public Review: The Interim Urgency Ordinance is available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the Planning Commission hearing. All comments and any questions should be directed to: Tony Bagato, Acting Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 ext.480 tbagato@cityofpalmdesert.org PUBLISH: DESERT SUN RACHELLE KLASSEN, CITY CLERK NOVEMBER 29, 2015 PALM DESERT, CALIFORNIA CITY OF PALM DESERT LEGAL NOTICE CASE NO. 15-322 NOTICE OF INTENT TO ADOPT A ZONING ORDINANCE AMENDMENT UPDATING SECTION_ 25.34.120 TO PROHIBIT CANNABIS DISPENSARIES, CANNABIS MANUFACTURES, CULTIVATION AND DELIVERY OF CANNABIS IN THE CITY. CEQA Review: The Ordinance is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activities will not result in a direct or reasonably foreseeable indirect physical change in the environment), 1 5060(c)(3) (the activities are not "projects" as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because they have no potential for resulting in physical change to the environment, directly or indirectly and 15061(b)(3) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it can be seen with certainty that it will not have a significant effect or physical change to the environment. Project Location/ Description: City-wide Recommendation: Staff is recommending approval of the Zoning Ordinance Amendment. Public Hearing: The public hearing will be held before the City Council on December 10, at 4:00 pm. Public Review: The Zoning Ordinance Amendment is available for public review daily at City Hall. Please submit written comments to the Planning Department. If any group challenges the action in court, issues raised may be limited to only those issues raised at the public hearing described in this notice or in written correspondence at, or prior to the Planning Commission hearing. All comments and any questions should be directed to: Tony Bagato, Acting Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 ext.480 tbagato@cityofpalmdesert.org PUBLISH: DESERT SUN RACHELLE KLASSEN, CITY CLERK NOVEMBER 29, 2015 PALM DESERT, CALIFORNIA BEST BEST & KRIEGER ATTORNEYS AT LAW B. Cultivation Under the Act, if the City wishes to ban or regulate medical marijuana cultivation, it must adopt an ordinance addressing those goals prior to March 1, 2016. Otherwise, the City will lose its authority to ban or regulate cultivation within its city limits. The State would then become the sole licensing authority. The Act's author has agreed to remove this strict deadline via clean-up legislation, but to be safe; the City should enact an ordinance by the end of February 2016 to protect its interests. Under case law, and as confirmed by the Act, the City may institute a complete ban on medical marijuana cultivation (Maral v. City of Live Oak (2013) 221 Cal.AppAth 975) or regulate it, for example, by banning all outdoor cultivation, banning all indoor cultivation, requiring a permit, or limiting the number of plants that can be cultivated on any given parcel. Some cities that have regulated cultivation have experienced problems. For example, the indoor cultivation of marijuana can have potential adverse effects to not only the health and safety of the occupants but to the structures as well. The increased moisture necessary to grow indoors can create excessive mold growth and structural damage. Additionally, the equipment utilized to grow indoors can pose a risk of fire and electrocution due to dangerous electrical alterations and use. Further, the inadequate ventilation combined with the use of pesticides and fertilizers in an enclosed space can lead to chemical contamination within the structure. If the City does intend to regulate cultivation, applicants would first have to obtain a local permit or license and then would be allowed to apply for a state license. If this is the City's intent, Best Best & Krieger LLP can assist with putting together the appropriate framework. C. Deliveries and Mobile Dispensaries Under the Act, if the City wishes to ban or regulate deliveries or mobile dispensaries, it must adopt an ordinance that explicitly prohibits or regulates these activities. The Act specifically states that deliveries can only be made by a dispensary and in a city, county, or city and county that does not explicitly prohibit it by local ordinance (Bus. & Prof. Code, § 19340(a).) There is no similar March 1, 2016 deadline with respect to mobile delivery, however, it is recommended that the City take related action on mobile delivery when it acts on the cultivation issue. Many cities have struggled with mobile delivery of medical marijuana. Mobile delivery services frequently operate in an attempt to undermine local dispensary bans by bringing marijuana directly to consumers. Mobile delivery has increased risks because it is difficult to ensure the delivery business is fully complying with California law, or that these businesses are providing appropriate medical services to patients in need. The City could ban mobile dispensaries outright. Or, the City could choose to regulate their operation. For example, -2- BEST BEST & KRIEGER ATTORNEYS AT LAW the City can control hours of operation, the amount of money or marijuana that can be carried at one time, and even the amount of time spent at one location by these services. These regulations could serve to mitigate some of the risks these mobile dispensaries pose. CONCLUSION If the City wishes to regulate or ban the cultivation of medical marijuana, it needs to act before March 1, 2016. If the City would also like to regulate or ban mobile dispensaries, it should do so in connection with its action on cultivation. Staff's recommendation to the City Council is to retain the City's ban on brick -and -mortar dispensaries and to adopt outright bans on both cultivation and mobile delivery. Attached to this memorandum are a draft ordinance and staff report that would retain the ban on dispensaries and to also prohibit cultivation and mobile delivery as discussed therein. ROBERT HARGREAVES JELL TREMBLAY -3-