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O2557City Council Meeting: October 24, 2017 Santa Monica, California ORDINANCE NUMBER (CCS) (City Council Series) AN INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA REPLACING THE TERM "MEDICAL MARIJUANA DISPENSARY" WITH "MEDICINAL CANNABIS RETAILER" THROUGHOUT THE CITY'S ZONING ORDINANCE, CHAPTER 9.01 THROUGH CHAPTER 9.52 OF ARTICLE 9 OF THE SANTA MONICA MUNICIPAL CODE; CREATING A DEFINITION FOR "MEDICINAL CANNABIS RETAILER" TO REPLACE THE DEFINITION FOR "MEDICAL MARIJUANA DISPENSARY" TO CONFORM WITH STATE LAW; REMOVING CERTAIN REQUIREMENTS FOR MEDICINAL CANNABIS RETAILERS FOR CONSISTENCY WITH STATE LAW AND TO ALLOW FOR SEPARATE REGULATION AND RULEMAKING; AND MODIFYING THE DEFINITION OF "INDUSTRY, LIMITED" TO ALLOW FOR MEDICINAL CANNABIS LIGHT MANUFACTURING WHEREAS, the State of California has had a long history of regulating medicinal cannabis uses within the State; and WHEREAS, in 1996, California voters approved Proposition 215 (codified at Health and Safety Code section 11362.5 and titled the "Compassionate Use Act of 1996"), which provides criminal immunity for patients and primary caregivers for the cultivation and possession of cannabis if a doctor has recommended the cannabis for medical purposes; and WHEREAS, in 2004, Senate Bill 420 was enacted (codified at Health and Safety Code section 11362.7 et seq. and titled the "Medical Marijuana Program Act") to clarify the scope of the Compassionate Use Act of 1996; and WHEREAS, the Medical Marijuana Program Act allows cities and other governing bodies to adopt and enforce laws consistent with its provisions; and 1 WHEREAS, neither the Compassionate Use Act of 1996 nor the Medical Marijuana Program Act provided an effective statewide regulatory system for the medical cannabis industry, and this lack of uniform regulation created uncertainty about the legality of medical cannabis activities and endangered the safety of end users, who have not had the benefit of a monitored supply chain for medical cannabis, quality control, testing or labeling requirements; and WHEREAS, in 2015, Assembly Bills 243 and 266 and Senate Bill 643 were enacted (codified at Business and Professions Code section 19300 et seq. and titled the "Medical Marijuana Regulation and Safety Act") and provided for enhanced statewide marijuana regulations; and WHEREAS, Assembly Bills 243 and 266 and Senate Bill 643 also amended provisions of the Medical Marijuana Program Act related to the cultivation of medical marijuana; and WHEREAS, In November 2016, voters approved Proposition 64, the Adult Use of Marijuana Act (AUMA). Under Proposition 64, adults 21 years of age or older may legally grow, possess, and use cannabis for nonmedicinal purposes, with certain restrictions; and WHEREAS, beginning on January 1, 2018, AVMA authorizes the sale and distribution of cannabis for nonmedicinal purposes through a licensed business; WHEREAS, in 2017, the State legislature enacted Senate Bill 94 which created the Medicinal and Adult -Use Cannabis Regulation and Safety Act ("MAUCRSA") which establishes a robust set of regulations for the medicinal and 2 adult use cannabis markets, aligns all permit types, and authorizes certain state agencies to establish rules governing cannabis operations and to implement the law; and WHEREAS, MAUCRSA continues to preserve local control over cannabis - related uses by (1) requiring medicinal cannabis businesses to obtain both a state license and a local license or permit, if required, to operate legally in California, (2) terminating the ability of a medicinal cannabis business to operate if its local license or permit is terminated, (3) continuing to authorize local governments to enforce local cannabis -related laws, (4) providing for penalties for unlicensed activities, and (5) expressly protecting local licensing practices, zoning and business regulation laws, and local actions taken under the constitutional police power; and WHEREAS, consistent with State actions, the City Council, when adopting its comprehensive update to its Zoning Ordinance in 2015, contemplated authorizing two medicinal cannabis retailers within the City to serve local needs; and WHEREAS, it is necessary to amend certain provisions of the Zoning Ordinance to ensure consistency with the State law revisions that have occurred since the Zoning Ordnance adoption in 2015 and to remove certain provisions that are duplicative of State law; and WHEREAS, certain provisions of the Zoning Ordinance related to medicinal marijuana retailers are more appropriately addressed through regulatory rulemaking; and 191 WHEREAS, the City Council, after reviewing public input, further directed staff to consider authorizing limited medicinal cannabis manufacturing facilities within the City; and WHEREAS, providing for light manufacturing of medicinal cannabis products provides greater access to patients in need while protecting public health, safety and general welfare by prohibiting manufacturing that uses volatile solvents; and WHEREAS, the City Council finds and declares that public health, safety and general welfare require the adoption of the proposed ordinance in that the revisions to the Zoning Ordinance will provide for consistency with State law and allow for greater access to medicinal cannabis for patients in need. NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Interim Zoning Regulations, Santa Monica Municipal Code Chapters 9.01 through 9.52 are hereby amended as follows: (a) The term "Medical Marijuana Dispensary" shall be replaced with "Medicinal Cannabis Retailer" throughout. (b) Santa Monica Municipal Code Section 9.31.185 is hereby amended to read as follows: 9.31.185 Medicinal Cannabis Retailers A. Purpose. The purpose of this Subsection is to ensure that the development of Medicinal Cannabis Retailers does not adversely impact adjacent parcels or the surrounding neighborhoods in which they are located and that they 0 will be developed in a manner that protects the health, safety and general welfare of nearby residents and businesses while providing for the needs of all segments of the community. Medicinal Cannabis Retailers shall be permitted, located, developed and operated consistent with the following development standards: B. Conditional Use Permit. Each Medicinal Cannabis Retailer shall be subject to the approval of a Conditional Use Permit by the Planning Commission, appealable to the City Council. C. Number and Location. A maximum of 2 Medicinal Cannabis Retailers no larger than 2,500 square feet shall be permitted. Medicinal Cannabis Retailers are prohibited within 600 feet of a Child Care and Early Education or Family Day Care Facility, park, school, library, Social Service Center, or other Medicinal Cannabis Retailer. The distance shall be established on the date of application for the Conditional Use Permit. D. Hours of Operation. Medicinal Cannabis Retailers may operate between the hours of 10:00 a.m. and 8:00 p.m. Monday through Saturday and 12:00 p.m. to 7:00 p.m. on Sundays. E. Recommendations. No recommendations for medicinal cannabis shall be issued on-site. F. Delivery. Delivery of medicinal cannabis to patients or primary care givers as defined in Health and Safety Code Section 11362.5 et seq. is permitted. G. Source Requirement. Only medicinal cannabis cultivated in California may be sold in a Medicinal Cannabis Retailer. H. On-site Cultivation. A maximum area of 15% of the total floor area 5 may be used for on-site cultivation of medicinal cannabis. I. Litter. Outdoor trash receptacles shall be available near the entrances to and exits from the establishment. The premises shall be continuously maintained in a safe, clean and orderly condition with twice daily litter pick-up within 500 feet of the Medicinal Cannabis Retailer. J. Inspections. A Medicinal Cannabis Retailer owner shall authorize reasonable City inspection of the property by Santa Monica Code Enforcement and Police staff or other agents or employees of the City to ensure compliance with the conditions of approval imposed by the City in approving this project and will bear the reasonable cost of these inspections as established by the Santa Monica Municipal Code section 2.72.010 and Resolution No. 9905 (CCS) or any successor legislation thereto. These inspections shall be no more intrusive than necessary to ensure compliance with conditions of approval. K. Enforcement Cooperation. A Medicinal Cannabis Retailer, and all employees thereof, shall use best efforts to assist the police in investigating and prosecuting any violations of this Chapter consistent with constitutional provisions. (c) Santa Monica Municipal Code Section 9.51.030(C)(5) is hereby amended to read as follows: Industry, Limited. Establishments engaged in light industrial activities taking place primarily within enclosed buildings and producing minimal impacts on nearby properties. This classification includes the manufacturing of finished parts or products primarily from previously prepared materials; commercial laundries and dry cleaning plants; monument works; printing, engraving, and publishing; sign [y painting shops; machine and electrical shops; computer and electronic product manufacturing; furniture and related product manufacturing; and industrial services. It also includes the preparation, manufacturing, and/or packaging of food, medicinal cannabis, and medicinal cannabis products for off-site use or consumption using nonvolatile solvents, or no solvents. Typical food manufacturing uses include canners, roasters, breweries, wholesale bakeries, and frozen food manufacturers. (d) Santa Monica Municipal Code Section 9.51.030(B)(22)(E) is hereby amended to read as follows: Medicinal Cannabis Retailer. A licensed premises which is a physical location from which retail medicinal cannabis or medicinal cannabis products are intended to be sold for use, pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation. The premises may be closed to the public; sales may be made exclusively by delivery. SECTION 2. In accordance with CEQA Guidelines Section 15061(b)(3), this Interim Zoning Ordinance is exempt from CEQA as it can be seen with certainty that the proposed ordinance does not have the potential to significantly impact the environment. The change in terminology from "Medical Marijuana Dispensary" to "Medicinal Cannabis Retailer" and the additional revisions to the requirements for Medicinal Cannabis Retailers within the City are consistent with 7 recent changes to State law. The modification of the Industry, Light land use definition maintains the allowance of light industrial activities taking place primarily within enclosed buildings and producing minimal impacts on nearby properties. SECTION 3. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 4. 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. SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause this Ordinance, or a summary thereof to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective (30) days from the second reading of the ordinance. E:3 SECTION 6. This Ordinance shall be of no further force or effect sixty days from its effective date, unless it is otherwise extended pursuant to Santa Monica Municipal Code Section 9.46.090. APPROVED AS TO FORM: C LANE DILG City Attorney R Approved and adopted this 24th day of October, 2017. TI'4i WZ4�� Ted Winterer, Mayor State of California ) County of Los Angeles ) ss. City of Santa Monica ) I, Denise Anderson -Warren, City Clerk of the City of Santa Monica, do hereby certify that the foregoing Ordinance No. 2557 (CCS) had its introduction on October 10, 2017, and was adopted at the Santa Monica City Council meeting held on October 24, 2017, by the following vote: AYES: Councilmembers Himmelrich, McKeown, O'Connor, O'Day, Vazquez, Mayor Pro Tem Davis, Mayor Winterer NOES: None ABSENT: None ATTEST: pin�, - V11�t7GG� Denise Anderson -Warren, City Clerk l��Z/lam Date A summary of Ordinance No. 2557 (CCS) was duly published pursuant to California Government Code Section 40806.