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SR 12-05-2017 7B City Council Report City Council Meeting: December 5, 2017 Agenda Item: 7.B 1 of 3 To: Mayor and City Council From: David Martin, Director, City Planning Subject: Introduction for First Reading of an Interim Zoning Ordinance Extending Interim Zoning Ordinance 2557 (CCS) Making Necessary Interim Changes to the Zoning Ordinance to Authorize Medicinal Cannabis Retailers and Medicinal Cannabis Light Manufacturing Within Certain Zoning Districts Recommended Action Staff recommends that the City Council introduce for first reading an Interim Zoning Ordinance extending Interim Zoning Ordinance 2557 (CCS) to April 20, 2020. Executive Summary On October 24, 2017, Council adopted the initial interim ordinance that made necessary interim changes to the Zoning Ordinance to authorize medicinal cannabis retailers and medicinal cannabis light manufacturing within certain zoning districts. The interim ordinance is set to expire on January 23, 2018. The proposed interim ordinance extension would continue, until April 20, 2020, to ensure consistency between Zoning Ordinance regulations and State law regarding medicinal cannabis and to authorize limited light manufacturing of medicinal cannabis. Background During a study session on March 7, 2017, regarding an overall approach to cannabis regulations, Council directed staff to draft an ordinance amending the Santa Monica Municipal Code to address changes in State law related to cannabis regulations and to consider options for allowing certain cannabis-related light manufacturing. Consistent with Council’s prior direction and in order to expeditiously allow certain types of additional medicinal cannabis light manufacturing activities and to update cannabis definitions to align with State law, on October 24, 2017, Council adopted an interim ordinance that effected the following revisions to the Zoning Ordinance: 2 of 3  Replaced the term “medical marijuana dispensary” with “medicinal cannabis retailer” throughout the Zoning Ordinance;  Created a definition for “medicinal cannabis retailer” to replace the definition for “medical marijuana dispensary” to conform with State law;  Removed certain requirements for medicinal cannabis retailers for consistency with State law and to allow for separate regulation and rulemaking; and  Modified the definitions of “industry, limited” to allow for medicinal cannabis light manufacturing. The interim ordinance became effective on November 24, 2017, and pursuant to Santa Monica Municipal Code (SMMC) Section 9.46.090(C) is set to expire on January 23, 2018. The City Council may extend the interim ordinance beyond January 23, 2018 for up to 60 months in accordance with SMMC 9.46.090(C). Discussion The October 10, 2017, Council report provides background information as to the intent of this ordinance. Adoption of the interim ordinance extending the initial interim ordinance would maintain amendments to certain provisions of the Zoning Ordinance ensuring consistency with the State law provisions that have occurred since the Zoning Ordinance adoption in 2015 and removing certain provisions that are duplicative of State Law. It would also provide for light manufacturing of medicinal cannabis products providing greater access to patients in need while protecting public health, safety, and general welfare by prohibiting manufacturing that uses volatile solvents. The initial interim ordinance is set to expire on January 23, 2018. The proposed interim ordinance would extend the term for an additional 27 months. Prior to the expiration of the extended interim ordinance on April 20, 2020, staff would undertake more comprehensive review and community engagement with the Planning Commission and then return to Council with a more permanent solution for adult use of cannabis. This interim period will also likely include further changes in State law, which will be 3 of 3 monitored by staff, and also provide opportunity for examining implementation of adult use cannabis in other jurisdictions. Environmental Analysis The proposed interim ordinance is categorically exempt from the provisions of California Environmental Quality Act (CEQA) pursuant to 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed interim ordinance may have a significant effect on the environment. The recommended interim ordinance extends a previously adopted interim ordinance. Therefore, no further environmental review under CEQA is required. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Prepared By: Tony Kim, Principal Planner Approved Forwarded to Council Attachments: A. October 24, 2017 Council Staff Report (web link) B. October 10, 2017 Council Staff Report (web link) C. March 7, 2017 Council Staff Report (web link) D. Ordinance E. Powerpoint Presentation CITY COUNCIL MEETING Item 7.B IZO 2557 Extension December 5, 2017 Extension of Interim Ordinance 2557 (CCS) Medicinal Cannabis (Item 7.B) CITY COUNCIL December 5, 2017 CITY COUNCIL MEETING Item 7.B IZO 2557 Extension December 5, 2017 Oct 24, 2017:Council adopted initial interim ordinance to authorize medicinal cannabis retailers and medicinal cannabis light manufacturing in certain zoning districts Jan 23, 2018:Interim ordinance expires Background Discussion Recommendation CITY COUNCIL MEETING Item 7.B IZO 2557 Extension December 5, 2017 1447 Background Discussion Recommendation •Proposed interim ordinance would extend the term until April 20, 2020 •Prior to the expiration of the extended interim ordinance: •Request for Applications for medicinal cannabis dispensaries to be posted in 2-3 weeks followed by a selection process •Conduct more comprehensive review and community engagement with the Planning Commission •Return to Council with a more permanent solution for adult use of cannabis •Monitor further changes in State law •Examine implementation of regulations in other jurisdictions CITY COUNCIL MEETING Item 7.B IZO 2557 Extension December 5, 2017 1447 829 Background Discussion Recommendation Recommend that the City Council introduce for first reading an ordinance extending Interim Zoning Ordinance 2557 (CCS). CITY COUNCIL MEETING Item 7.B IZO 2557 Extension December 5, 2017 Extension of Interim Ordinance 2557 (CCS) Medicinal Cannabis (Item 7.B) CITY COUNCIL December 5, 2017