HomeMy WebLinkAboutO-1725 amending Chapter 17.86 and Chapter 9.10 modifying specific rules for commercial cannabis business retail storefront operationsO 1725
ORDINANCE NO. 1725 (2023 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING CHAPTER 17.86 (REGULATIONS
FOR SPECIFIC LAND USES AND ACTIVITIES) AND CHAPTER 9.10
(CANNABIS REGULATIONS) OF THE MUNICIPAL CODE MODIFYING
SPECIFIC RULES FOR COMMERCIAL CANNABIS BUSINESS RETAIL
STOREFRONT OPERATIONS
WHEREAS, on May 1, 2018, the City Council of the City of San Luis Obispo
adopted regulations allowing for the operation of commercial cannabis businesses and
personal cultivation in the City; and
WHEREAS, Municipal Code Chapter 17.86 and Chapter 9.10 establishes the
hours of operations and the age restrictions for access to commercial cannabis retail
storefronts operating in the City; and
WHEREAS, the City currently has two permitted commercial cannabis retail
storefronts operating in the City; and
WHEREAS, the permitted commercial cannabis retail storefronts requested the
City expand the hours of operations from 9:00 a.m. and 8:00 p.m., daily to 7:00 a.m. and
9:00 p.m., daily; and allow individuals 18 to 20 years of age who have a valid physician’s
recommendation for medicinal cannabis to access retail storefronts; and
WHEREAS, on October 18, 2022, City Council directed staff to further evaluate
and return with recommendations addressing requests to modify the regulations for hours
of operations and access restrictions for medicinal cannabis customers 18 to 20 years of
age; and
WHEREAS, the State of California’s Department of Cannabis Control’s Code of
Regulations allows licensed cannabis retailers and delivery businesses to operate
between the hours of 6:00 a.m. and 10:00 p.m. and allows licensed cannabis retailers
who possess either an M-designation license or and A- and M-designation license to sell
medicinal cannabis goods to individuals who are at least 18 years of age and who
possess a valid physician’s recommendation; and
WHEREAS, City staff conducted extensive public outreach for the requested
changes submitted by the permitted commercial cannabis retail storefronts; and
WHEREAS, consistent with State of California’s regulations and the feedback
collected during the public outreach component of the requested changes evaluation, the
City desires to continue to support existing and future commercial cannabis retail
storefront operations by amending Chapter 17.86 and Chapter 9.10 of the Municipal
Code; and
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WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, on February 8, 2023, for the purpose of considering updates to the City’s
commercial cannabis program including amending Chapter 17.86 and Chapter 9.10 of
the Municipal Code for retail storefront operations and making recommendations to the
City Council regarding such amendments.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence presented, the Council makes
the following findings.
1. The proposed amendments to Chapter 17.86 and Chapter 9.10 are consistent
with State of California’s Department of Cannabis Control’s Code of
Regulations.
2. The proposed amendments establish reasonable regulations for the operation
of commercial cannabis retail storefront businesses in the City.
3. The proposed amendments continue to promote the public health, safety, and
welfare of the City as they relate to commercial cannabis business operations.
4. The City requires discretionary review and approval of permits, licenses, and
other authorizations to engage in commercial cannabis activity. Such review
and approval include applicable environmental review.
SECTION 2. Section 17.86.080 (E)(5)(f), Commercial Cannabis Development
Standards, of the San Luis Obispo Municipal Code is hereby amended as follows:
f. The use permit to be issued under this chapter shall include, but is not limited
to, the following conditions:
i. The obtaining and maintaining of the commercial cannabis operator
permit and appropriate state license.
ii. Payment of all applicable current and future state and local taxes and all
applicable commercial cannabis fees and related penalties established by
the city council, including but not limited to application, administrative
review, inspection, etc.
iii. The commercial cannabis operator permit or a controlling interest in the
permit may not be assigned, transferred or bequeathed, by operation of
law or otherwise, unless permitted as described in Chapter 9.10, and the
permit shall terminate automatically on such event.
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iv. Any commercial cannabis operator permit issued pursuant to this chapter
and Chapter 9.10 expires after one year, unless renewed.
v. Prohibition of on-site consumption of cannabis at: (A) at a commercial
cannabis business or commercial cannabis activity location; (B) any other
business, club or cooperative or event, regardless if open to the public or
only to members; and (C) anywhere an entry or other fee is charged to
attendees or the host or thing of value or consideration is received or
exchanged.
vi. Prohibition of the possession, storage, sale, distribution or consumption
of alcoholic beverages on the premises, or the holding of license from the
State Division of Alcoholic Beverage Control for the sale of alcoholic
beverages, or operating a business that sells alcoholic beverages on or
adjacent to the commercial cannabis activity site.
vii. No cannabis products or cannabis accessories may be displayed in
windows or visible from the public right-of-way or from places accessible
to the general public.
viii. Prohibition of minors and persons under the age of twenty-one on the
premises, even if accompanied by a parent or guardian, unless the person
is at least eighteen years of age and is also in possession of a valid
physician’s recommendation for medical cannabis.
ix. Outdoor storage of cannabis or cannabis products is prohibited.
SECTION 3. Section 17.86.080 (E)(10), Retail - Storefront, of the San Luis Obispo
Municipal Code is hereby amended as follows:
10. Retail - Storefront.
a. Commercial cannabis storefront retail may be conditionally permitted,
subject to the requirements of this section and the obtaining and maintaining
of a commercial cannabis operator permit, and the appropriate state
license, in the following zones:
i. Retail commercial (C-R);
ii. Service commercial (C-S);
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial
Cannabis Development Standards.
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ii. Only three retail storefronts, which must front arterial streets, will be
allowed within the city. Selection of the retail commercial cannabis
operator will be selected from qualified commercial cannabis operators
as set forth in Chapter 9.10, Cannabis Regulations. One of the retail
storefronts shall have a medicinal license and may also have an adult
use license.
iii. Retail storefronts shall be located at least one thousand feet from any
preschool, elementary school, junior high school, high school, public
park or playground, six hundred feet from any licensed day care
center, and three hundred feet from any residentially zoned area.
Youth centers do not require a buffer. Distance shall be measured from
the nearest point of the property line to the nearest point of the property
line of the enumerated use using a direct straight-line measurement.
iv. Retail storefronts must be separated from each other by at least one
thousand feet.
v. Hours of operation shall be limited between seven a.m. to nine p.m.
vi. Retail storefronts that possess a valid State of California cannabis
retailer license with an A-designation must include a sign at each
entrance of a retail storefront that prohibits persons under twenty-one
years of age from entering. Retail storefronts that possess a valid State
of California cannabis retailer license with an M-designation or both an
A-designation and an M-designation must include a sign at each
entrance of the retail storefront that prohibits persons under twenty-
one years of age from entering unless the person is at least eighteen
years of age and is also in possession of a valid physician’s
recommendation for medical cannabis.
SECTION 4. Section 9.10.230, Minors, of the San Luis Obispo Municipal Code is
hereby amended as follows:
A. Minors shall not be allowed on the premises of a commercial cannabis business
having either an “A” or “M” license, or both, even if accompanied by a parent or
guardian.
B. No person under twenty-one years of age shall be allowed on the premises of
a commercial cannabis business having an “A” license only.
C. No person under twenty-one years of age shall be allowed on the premises of
a commercial cannabis business having either an “M” license or both an “A”
and “M” license unless the person is at least eighteen years of age and is also
in possession of a valid physician’s recommendation for medical cannabis.
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D. Every entrance to an “A” licensed commercial cannabis business shall be
clearly and legibly posted with the following notice: “ENTRY ONTO THESE
PREMISES BY PERSONS UNDER 21 YEARS OF AGE IS PROHIBITED BY
LAW. VALID PHOTO ID REQUIRED.” Each letter of the notice must be at least
two inches high and clearly visible.
E. Every entrance to an “M” licensed or both an “A” and “M” licensed commercial
cannabis business shall be clearly and legibly posted with the following notice:
“ENTRY ONTO THESE PREMISES BY PERSONS UNDER 21 YEARS OF
AGE IS PROHIBITED BY LAW UNLESS THE PERSON IS EIGHTEEN YEARS
OF AGE OR OLDER AND IS ALSO IN POSSESSION OF A VALID
PHYSICIAN’S RECOMMENDATION FOR MEDICAL CANNABIS. VALID
PHOTO ID REQUIRED.” Each letter of the notice must be at least two inches
high and clearly visible.
F. No person, business, or other entity conducting a commercial cannabis activity
with either an “A” or “M” state license shall employ any person who is not at
least twenty-one years of age. (Ord. 1647 § 4 (Exh. A (part)), 2018)
SECTION 5. Section 9.10.250 (C), Security and public safety measures, of the
San Luis Obispo Municipal Code is hereby amended as follows:
C. Hours of Operation.
1. Retail Storefront. Retail storefront commercial cannabis business shall not
operate between the hours of nine p.m. and seven a.m.
2. Retail Non-Storefront (Delivery Services). Retail non-storefront (delivery
services) commercial cannabis business shall not operate between the
hours of ten p.m. and six a.m.
3. Commercial Other than Retail. All commercial cannabis activity other than
retail is prohibited between the hours of ten p.m. and seven a.m. (Ord. 1647
§ 4 (Exh. A (part)), 2018)
SECTION 6. Environmental Review. The proposed amendments to Chapter 17.86
and Chapter 9.10 of the Municipal Code was reviewed in accordance with the California
Environmental Quality Act (CEQA) Guidelines. The proposed amendments are
determined to be exempt from environmental review pursuant to CEQA Guidelines
Section 15061(b)(3), the General Rule exemption which exempts activities that can be
seen with certainty to have no possibility for causing a significant effect on the
environment. The proposed amendments constitute minor modifications to the rules
governing commercial cannabis business retail storefront operations and do not have a
significant effect on the environment. Any new retailer-applicant would be required to
comply with all applicable state and local law, including a showing of CEQA compliance
or exemption.
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SECTION 7. Action. The City Council hereby adopts an ordinance amending
Chapter 17.86 and Chapter 9.10 of the Municipal Code modifying the hours of operations
and access requirements for commercial cannabis retail storefronts.
SECTION 8. Ordinance Number 1647 (2018 Series) is hereby amended and
superseded to the extent inconsistent herewith.
SECTION 9. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalid or unenforceability shall not affect the validity or
enforcement of the remaining provisions of this Ordinance, or any other provisions of the
City’s rules and regulations. It is the City’s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
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SECTION 10. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to its final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 7th day of March 2023, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the 21st day of March 2023, on the following
vote:
AYES: Council Member Francis, Pease, Shoresman, Vice Mayor Marx,
and Mayor Stewart
NOES: None
ABSENT: None
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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3/23/2023 | 10:47 AM PDT