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HomeMy WebLinkAboutItem #3 -CODE-1058-2017 (Cannabis Regulations)Meeting Date: March 28 & 29, 2018 Item Number: 3 2 PLANNING COMMISSION AGENDA REPORT SUBJECT: Review of proposed ordinance amendments to Title 17 (Zoning Regulations) of the Municipal Code regarding the land use program for Cannabis Activities with a statutory exemption from environmental review, in accordance with Business and Professions Code section 26055 (h). PROJECT ADDRESS: Citywide BY: Rachel Cohen, Associate Planner Phone Number: (805) 781-7574 e-mail: rcohen@slocity.org FILE NUMBER: CODE-1058-2017 FROM: Xzandrea Fowler, Deputy Director RECOMMENDATION: Introduce, take public testimony and adopt a resolution making a recommendation to City Council (Attachment 1) regarding the ordinance amendments to Title 17 (Zoning) of the Municipal Code for Cannabis Activities. Continue the public hearing to a meeting scheduled for Thursday, March 29, 2018, to continue the discussion and review of the proposed ordinance amendments to Title 17 (Zoning Regulations) of the Municipal Code. SUMMARY On March 14, 2017, the City Council adopted Ordinance No. 1633 (Attachment 2), reaffirming that all commercial cannabis activity is illegal in the City of San Luis Obispo. At the same time, Council directed staff to engage with the community and return with recommendations regarding the regulation of cannabis business activity within the City. City staff conducted a significant outreach effort and returned to the City Council for high-level policy direction on a number of outstanding issue areas. On February 20, 2018, the City Council reviewed the process to date – including specific recommendations related to the type and scope of regulations that the City might pursue – and provided policy direction to allow commercial cannabis activities, both medical and recreational, within the City. To implement Council direction, the Planning Commission is being asked to consider draft ordinance amendment language establishing permitting and regulatory requirements for the operation of commercial cannabis activities. 1.0 COMMISSION’S PURVIEW The recommended draft ordinance amendments are being brought before the Planning Commission to provide Commissioners with an opportunity to provide feedback on the proposed land use regulations for Cannabis Activities and to make a recommendation to the City Council regarding their adoption. A Draft Resolution with the ordinance amendment language establishing permitting and regulatory requirements for the operation of commercial cannabis activities is included as Attachment 1. The proposed amendments also provide development standards for personal cultivation. PC3 - 1 USE-2882-2016 35 Prado Road Page 2 2.0 BACKGROUND 2.1 State Law In November 2016, Proposition 64 was approved by California voters. City of San Luis Obispo voters approved the measure with 67.52% of residents voting in favor. After the approval of Prop 64, State legislators consolidated various laws, repealed conflicting statutes, and established new regulatory agencies in SB 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). MAUCRSA is a single regulatory system for commercial cannabis activity in California that requires all persons engaged in commercial cannabis activity to be licensed, allows local jurisdictions to control what activities are permitted in their jurisdiction, and places the protection of the public as the highest priority. The State administrative structure is managed by three main State licensing entities: 1. Bureau of Cannabis Control (within the Department of Consumer Affairs) – licenses all activities associated with the testing, distribution, and sale of cannabis products to the end user. 2. California Department of Public Health, Manufactured Cannabis Safety Branch – licenses all activities associated with the manufacture of cannabis into various concentrates, edibles, supplements, or any other product whether intended for the wholesale market or the end user. 3. California Department of Food and Agriculture – licenses all cultivator activities under the CalCannabis program. Attachment 3 includes more information about these agencies and Attachment 4 provides more information on the MAUCRSA and the license types available for commercial cannabis activities. Full text of SB 94 is available online at: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB94 2.2 City Council Direction March 14, 2017 For many years previously, the City prohibited commercial cannabis activity under principles of permissive zoning, which hold that a use is prohibited unless expressly permitted. After Proposition 64 (the Adult Use of Marijuana Act) was approved by California voters, and while state regulators were in the process of developing plans to implement a regulated cannabis market, Council directed staff to engage with the community and return with recommendations regarding the regulation of cannabis business activity within the City Council provided staff with the following direction: 1. Monitor developments in other jurisdictions 2. Monitor development at the Federal level 3. Engage the community regarding various land use and taxation alternatives that may be appropriate 4. Return to the City Council with a recommendation At the same time, the City Council adopted Ordinance No. 1633 (Attachment 2), prohibiting all commercial cannabis activity in the city, to maintain the status quo while staff conducted public outreach. All commercial cannabis activity is currently illegal in the City of San Luis Obispo PC3 - 2 USE-2882-2016 35 Prado Road Page 3 February 20, 2018 Staff presented to City Council an overview of the proposed draft cannabis regulations as a part of a study session to receive input and feedback. Council provided the following feedback: • Allow commercial cannabis businesses in the City. • Limit the number of retail storefronts to 3 (Adult Use & Medical). • Support a range of license types (e.g., microbusiness, manufacturing, retail, etc.). • Explore the need for buffers from various types of cannabis businesses. • Concern about allowing certain types of concentrates1, especially non-medical concentrates. • Zero Net Energy, specific to cultivation, should be included at the beginning of the business. • Support energy efficiency and water efficiency as incentives in the vendor review process. • Daytime hours of operation with limited evening hours are reasonable. • No on-site consumption at this time. 3.0 COMMUNITY OUTREACH The City Council directed staff to engage the community in discussions regarding various land use and taxation alternatives that may be appropriate. Staff has engaged the community in a consultative manner, seeking input from community members through a variety of channels and outreach methods. Per the City’s Public Engagement and Notification Manual, a “Consult” level of public engagement was implemented. Central to the effort has been the City’s website, which has been updated with information throughout the process. The City has also used its Open City Hall platform to deliver important information about the proposed regulations and gain direct community feedback. The following is the list of engagement activities conducted by staff during the outreach process. • Zoning Regulations Public Workshop – June 2017 • POSAFY Consultation – June 2017 • Chamber of Commerce, Legislative Action Committee –September 2017 • Downtown SLO Board, Issues Committee – September 2017 • Open City Hall – October 13, 2017 • Public Open House, Panel Discussion – October 23, 2017 • Publication of Draft Regulations – January 11, 2018 • Open City Hall – January 11, 2018 4.0 LICENSING REQUIREMENTS 4.1 State License Categories – Difference Between Medical and Adult Use Each of the three licensing agencies have published guidelines for licensing. All licenses except testing labs will have two categories, M (Medicinal) or A (Adult-Use). Business to business activity is only allowed between businesses in the same category (e.g. a manufacturer with an M license can only purchase raw material from a cultivator or distributor with an M license). However, the minimum product labeling standards are the same, and retailers may hold both M and A licenses. As a result, there 1 An umbrella term that refers to a variety of different cannabis extracts such as shatter, rosin, BHO, CO2, wax, crumble, honey oil, dabs, hash, tinctures, and capsules. PC3 - 3 USE-2882-2016 35 Prado Road Page 4 is no need for the City to distinguish between medical and adult use in its r egulations, unless it intends to prohibit adult use business activity. 4.2 State License Categories - Definitions The following definitions from SB 94 describe the different cannabis business activities that are proposed for regulation within the City of San Luis Obispo. 1. Specialty cultivator – indoor only grows under 5,000 s.f. of canopy, includes processing. 2. Small cultivator – indoor only grows under 10,000 s.f. of canopy, includes processing 3. Nursery – indoor only propagation under 10,000 s.f. of floor area 4. Manufacturer I – non-volatile processing of cannabis into any other product 5. Testing – lab testing is required by the State prior to distribution to a retailer 6. Retailer – includes storefront and delivery 7. Distributor – retailers must purchase from licensed distributors 8. Microbusiness – allows a single business to integrate cultivation (10,000 s.f. of canopy max.), manufacturing, distribution and retail sales 5.0 DISCUSSION 5.1 Overview of Draft Regulations for Commercial Cannabis Activities City staff has drafted cannabis regulations under two Municipal Code Chapters. A new chapter is being created within the San Luis Obispo Municipal Code (SLOMC). The new chapter will address commercial cannabis operator selection and licensing, as well as public health and safety standards that will be largely enforced by the Police Department. The new chapter will go directly to the City Council. The second part of the regulations are in SLOMC Chapter 17 (Zoning Regulations) and are focused on land use and development standards. Legal operation of a commercial cannabis business will require a new type of entitlement permit, called a Commercial Cannabis Operator Permit, and a separate use permit for a physical location zoned for such uses, in addition to a state license. Overall, the draft regulations are intended to protect public health, safety, and welfare – and support the local cannabis economy – by permitting and regulating a wide range of cannabis uses, summarized as follows: 1. Allows for access to medical and recreational cannabis in the City, with storefront and delivery options. 2. Prohibits events and onsite consumption. 3. Requires commercial cannabis operators to be certified and ranked prior to applying for a permit. 4. Includes requirements for energy and water efficiency, and limits total amount of cultivation, to ensure consistency with City climate action goals. 5. Limits manufacturing uses to non-volatile processes only. 6. Limits commercial cultivation to indoors only, and total amount of cultivation allowed to 70,000 square feet of total canopy coverage city-wide within an indoor area, cumulatively (includes total canopy of either horizontal or vertical growing situations). PC3 - 4 USE-2882-2016 35 Prado Road Page 5 7. Requires retail storefronts to be located at least 1,000 ft. apart 8. Provides for full cost recovery of City expenses related to all cannabis business monitoring, enforcement and administration The Draft Resolution includes the permitting and regulatory requirements for the operation of commercial cannabis activities (Attachment 1) as well as standards, such as setback, for personal cultivation. 5.2 Zoning Areas Table 1 outlines the various cannabis activities that are allowed within the City and the zones that they will be allowed. All zones will require some level of review. Table 1: Proposed zones where cannabis activities will be allowed Permit Required by Zoning District Land Use AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-D C-R C-T C-S M BP Cannabis Activity Specialty Cultivator D D D Small Cultivator D D D Nursery D D D Manufacturing I D D D Distributor D D D Microbusiness PC* PC* PC* D* D* D* Testing AA AA AA AA Retailer (delivery) D D D Retailer (storefront) PC PC PC Key: A = Allowed AA = Administrative Approval D = Director's Use Permit PC = Planning Commission Use Permit Approval Required * See section 17.99.050 (L) of the Zoning Regulations for specific requirements per zone. 5.3 Planning Commission Discussion Questions The City Council has provided policy direction to allow commercial cannabis activities within the City. Staff is coming to the Planning Commission for feedback on the draft land use regulations. Staff has identified the following areas for Planning Commission discussion: 1. Buffers vs. Overlay Zones: Staff has evaluated a 200-foot buffer from residential zones and a 600-foot buffer from schools and has prepared maps to illustrate the buffers (see Attachment 5). The City Council provided feedback that it may be appropriate to have buffers from certain cannabis activities, but that some activities may not necessitate a buffer. Based on the discussion at the City Council meeting, staff has evaluated an alternative approach to buffers using overlay zones. PC3 - 5 USE-2882-2016 35 Prado Road Page 6 Attachment 6 shows potential overlay zone areas. Staff selected these areas based on several pieces of information: 1) existing planning areas (Airport Area Specific Plan, Mid-Higuera Enhancement Plan, South Broad Street Plan, etc.), 2) areas identified on the buffer maps as being located away from schools and residential zones , and 3) include natural barriers such as the railroad, roadways, topography, and other features that serve the same purpose as buffers based on distance. Staff is recommending use of the overlay zones rather than buffers. The Planning Commission should review the potential overlay zones and provide feedback to staff. 2. Hours of Operation: The City Council discussed that retail and delivery services shall have limited hours of operation. The consensus was that unrestricted daytime hours of operation with limited evening hours would be reasonable. Staff is recommending retail storefronts operate between the hours of 9:00 am and 8:00 pm and delivery (non-storefront retail) between 6:00 am and 10:00 pm. The Planning Commission should provide feedback to staff on the hours of operation. 3. Level of Use Permit Review – Administrative Review vs. Planning Commission Review: Each commercial cannabis activity will require a Commercial Cannabis Operator Permit and a use permit. Table 1 above outlines the staff recommend level of review required for a use permit in the various zones that have been identified to allow cannabis commercial activity. Depending on the type of commercial cannabis activity staff is recommending either an Administrative use permit, a Planning Commission use permit or Administrative Approval. The Planning Commission should provide feedback on the level of use permit review. 6.0 ENVIRONMENTAL REVIEW The proposed amendments to the SLOMC are consistent with existing zoning standards that apply to other uses in the City. Manufacturing, testing, cultivation, distribution and retail uses are currently already permitted or conditionally permitted in designated zoning districts in the City. These amendments impose the same or more stringent zoning requirements on similar cannabis-related uses. As a result, the amendments do not allow or permit new uses or more intensive uses than those already established in existing zoning districts in the City. Until July 1, 2019, Business and Professions Code section 26055, subdivision (h), as amended by SB 94, provides that the California Environmental Quality Act ("CEQA") does not apply to the adoption of an ordinance, rule, or regulation by a local jurisdiction that requires discretionary review and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity, so long as the discretionary review includes any applicable environmental review pursuant to CEQA 7.0 ATTACHMENTS 1. Draft Resolution with the proposed ordinance amendment language 2. Ordinance No. 1633 3. Licensing Agencies 4. MAUCRSA Overview 5. Combined Buffer Map 6. Area Overlay Maps 7. 2-20-2018 City Council PowerPoint Presentation PC3 - 6 RESOLUTION NO. PC-XXXX-18 A RESOLUTION OF THE SAN LUIS OBISPO PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 17 (ZONING) OF THE MUNICIPAL CODE TO ESTABLISH LAND USE REGULATIONS FOR COMMERCIAL CANNABIS BUSINESSES AND PERSONAL CULTIVATION, AND DETERMINING THAT THE ORDINANCE IS STATUTORILY EXEMPT FROM ENVIRONMENTAL REVIEW PURSUANT TO BUSINESS AND PROFESSIONS CODE SECTION 26055 (h) (CODE-1058-2017) WHEREAS, the voters of the State of California approved the Compassionate Use Act in 1996 to provide a defense to criminal prosecution for the cultivation, possession and use of marijuana for medical purposes. Subsequently, the Medical Marijuana Program Act (MMPA) established a voluntary participation, State-authorized medical marijuana identification card and registry database for verification of qualified patients and their primary caregivers; and WHEREAS, in 2015, the State enacted the Medical Cannabis Regulation and Safety Act; and WHEREAS, on November 8, 2016, California voters approved Proposition 64, the Adult Use of Marijuana Act, a voter initiative, which legalized adult personal recreational use, possession and cultivation of cannabis in California, and created a comprehensive regulatory and dual licensing system for commercial cannabis activity in the State effective January 2018; and WHEREAS, Proposition 64 was passed by sixty-seven percent (67%) of the voters in the City of San Luis Obispo; and WHEREAS, prior to the passage of Proposition 64, the City took the position that commercial cannabis activity was prohibited in the city under principles of permissive zoning, which holds that uses that are not expressly allowed or conditionally allowed under z oning regulations are prohibited within the City; and WHEREAS, after the passage of Proposition 64, in 2017 the City Council adopted Ordinance 1633, amending Chapter 9.10 of the Municipal Code to maintain the status quo while the city conducted public outreach, by limiting outdoor cultivation and expressly prohibiting all commercial and industrial recreational and medical marijuana/cannabis-related uses, activities, businesses, or operations within the city; and WHEREAS, City staff has conducted extensive public outreach; and WHEREAS, after review of the information gathered by staff during public outreach, the City Council directed staff to recommend and draft amendments to the Municipal Code to permit commercial cannabis activities within the City; and WHEREAS, in 2017, the California legislature passed and Governor Brown signed Senate Bill 94 which enacted the Medicinal and Adult-Use Cannabis Regulation and Safety Act ATTACHMENT 1 PC3 - 7 Planning Commission Resolution # XXXX-18 CODE-1058-2017, Cannabis Land Use Program Page 2 (“MAUCRSA“), repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”) but incorporated certain provisions of MCRSA into the licensing provisions of established by Proposition 64; and WHEREAS, before any commercial cannabis activities in the City can begin, revision of Title 17, Zoning, and repeal or revision of Title 9, Public Peace, Morals and Welfare (Chapter 9.10,) is required; and WHEREAS, as part of the process to permit commercial cannabis activity in the City, the City desires to update Title 17 and establish a land use program for the operation of cannabis businesses, consistent with current state law; and 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 March 28, 2018 and March 29, 2018, for the purpose of considering amendments to Title 17 (Zoning Regulations) of the Municipal Code to establish land use regulations for the operation of commercial cannabis businesses, and making recommendations to the City Council regarding such amendments . NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San Luis Obispo as follows: Section 1. Findings. Based upon all the evidence, the Commission makes the following findings: 1. The proposed amendments to Title 17 are consistent with existing zoning practices in the City, so that commercial cannabis activities will occur in zones which already allow for similar uses, such as retail, manufacturing and laboratories, consistent with existing performance standards and levels of planning review and is consistent with the general plan. 2. The amendments in this ordinance promote the public health, safety, convenience, and welfare of the city. 3. The proposed amendments establish reasonable regulations regarding the establishment of commercial cannabis businesses in the City, are consistent with State law, maintain local control over land use and balance the City's competing interests in allowing certain commercial and research-related cannabis activities desired by the majority of voters, with the public health, welfare, and safety concerns of the City. 4. The City requires discretionary review and approval of permits, licenses and other authorizations necessary to engage in commercial cannabis activity. Such review and approval include applicable environmental review. Section 2. Environmental Review. Until July 1, 2019, Business and Professions Code ATTACHMENT 1 PC3 - 8 Planning Commission Resolution # XXXX-18 CODE-1058-2017, Cannabis Land Use Program Page 3 section 26055, subdivision (h), as amended by SB 94, provides that the California Environmental Quality Act ("CEQA") does not apply to the adoption of an ordinance, rule, or regulation by a local jurisdiction that requires discretionary review and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity, so long as the discretionary review includes any applicable environmental review pursuant to CEQA. The proposed ordinance is subject to a statutory exemption from CEQA because the City requires discretionary review and approval, including applicable environmental review pursuant to CEQA, of permits, licenses or other authorizations to engage in commercial cannabis activity. Section 3. Recommendation. The Planning Commission does hereby recommend the City Council introduce and adopt an Ordinance amending Title 17 (Zoning) of the Municipal Code regarding the establishment of land use regulations for the operation of commercial cannabis businesses as set forth in Exhibits A, B and C. Upon motion of Commissioner _________________, seconded by Commissioner ___________________, and on the following roll call vote: AYES: NOES: REFRAIN: ABSENT: The foregoing resolution was adopted this 29th day of March, 2018. _____________________________ Doug Davidson, Secretary Planning Commission ATTACHMENT 1 PC3 - 9 EXHIBIT A Chapter 17.99: Cannabis 17.99.010 - Purpose 17.99.020 - Applicability 17.99.030 - Definitions 17.99.040 - Personal Cultivation 17.99.050 - Commercial Cannabis Businesses 17.99.010 Purpose. The purpose of this Chapter is to protect the public health, safety, and welfare, enact strong and effective regulatory and enforcement controls in compliance with State of California law, protect neighborhood character, and minimize potential for negative impacts on people, communities, and the environment within the City if San Luis Obispo by establishing land use requirements and development standards for cannabis activities. Cannabis activity, as defined in Chapter 17.100.030 (“Definitions” “C”), includes the cultivation, possession, manufacturing, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis or a cannabis product for either personal or commercial use. Therefore, this Chapter recognizes that cannabis activities require land use controls due to State legal constraints on cannabis activity, and the potential environmental and social impacts associated with cannabis activity. 17.99.020 Applicability. Nothing in this Article shall be construed to allow any conduct or activity relating to the cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise illegal under local or state law, statute, rule or regulation. It is neither the intent nor the effect of this chapter to condone or legitimize the illegal use, consumption or cultivation of cannabis under federal, state or local law. 17.99.030 Definitions. See Section 17.100 Definitions of this code. Terms used in this ordinance that are defined terms under state cannabis statutes or regulations shall have the same meaning as the respective state definition, as now defined or as the definition may be amended by the state in the future, except as otherwise specifically provided in Section 17.100 Definitions of this code or Chapter 9.10, Cannabis Regulations, of this code. 17.99.040 Personal Cultivation. A. Indoor Personal Cultivation. Indoor personal cultivation of cannabis does not require a permit and is allowed in all private residences subject to all the following minimum performance standards: 1. All indoor personal cultivation, including by a qualified patient or primary caregiver, shall occur only inside a private residence or fully-enclosed and secure accessory building or structure to a private residence. Accessory building or structure for indoor personal cultivation of cannabis does not include a greenhouse or hoop structure. 2. Medical or medicinal cannabis shall be cultivated inside a private residence only by: ATTACHMENT 1 PC3 - 10 EXHIBIT A a. A qualified patient or person with an identification card, as each is defined by Health and Safety code section 11362.7 exclusively for his or her own personal medical use but who does not provide, donate, sell, or distribute medical cannabis to any other person; or b. A primary caregiver, as defined by Health and Safety Code section 11362.7, who cultivates, possesses, stores, manufactures, transports, donates, or provides medical cannabis exclusively for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, but who does not receive remuneration for these activities except for compensation in full compliance with Health and Safety Code Section 11362.765(c). 3. Structures and equipment used for indoor cultivation, such as indoor grow lights, shall comply with all applicable building, electrical and fire code regulations as adopted by the city. 4. All accessory buildings and structures used for indoor cultivation shall comply with the City’s Zoning Regulations and Building Codes. 5. Indoor personal cultivation of cannabis may occur inside a dwelling and/or an accessory building or structure, subject to the following restrictions: a. The cumulative cultivation for medical or medicinal cannabis shall not exceed six (6) cannabis plants per qualified patient per private residence, regardless of how many qualified patients or primary caregivers reside at the premises. Either a qualified patient or a primary caregiver shall reside full-time on the premises where the medical cannabis cultivation occurs. b. For persons other than qualified patients or primary caregivers, all personal cultivation shall be conducted by persons 21 years of age or older, and the cumulative total of cannabis plants on the property, indoor and outdoor, shall not exceed six (6) cannabis plants, regardless of the number of persons residing on the property. 6. Personal cultivation of cannabis shall not interfere with the primary occupancy of the building or structure, including regular use of kitchen(s) or bathroom(s). 7. Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no exterior evidence of cannabis cultivation occurring at the property visible with normal unaided vision from any public place, or the public right-of-way. Personal cultivation of cannabis shall be shielded to confine light and glare to the interior of the structure. 8. Nothing in this section is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting personal cultivation of cannabis by tenants. 9. Nothing in this section is intended, nor shall it be construed, to authorize commercial cultivation of cannabis by qualified patients, persons with an identification card or primary caregivers. 10. Personal cultivation of cannabis shall not create: offensive odors or excessive dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to persons of normal sensitivity who are living, working or lawfully present in the vicinity of the personal cultivation. 11. Cannabis cultivation areas in a private residence shall be locked at all times when the cultivator is not present. ATTACHMENT 1 PC3 - 11 EXHIBIT A B. Outdoor Personal Cultivation. Outdoor personal cultivation of cannabis does not require a permit and is allowable at all private residences, subject to all of the following minimum performance standards: 1. Outdoor personal cultivation of cannabis is not permitted in the front yard between the public right of way and the private residence. Outdoor personal cultivation is only permitted in a rear or side yard that is entirely enclosed by a solid, opaque fence that is associated with a private residence used for residential purposes. 2. The cannabis plants shall be placed at a minimum setback of five (5) feet from the edge of canopy to the property line. 3. Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no exterior evidence of cannabis cultivation occurring at the property visible by normal unaided vision from a public place or the public right-of-way. Cultivation may occur within a greenhouse or hoop structure (as long as it complies with the performance standards), but mixed light cultivation is prohibited. 4. For persons other than a qualified patient or person with an identification card or primary caregiver, as each is defined by Health and Safety Code Section 11362.7, all outdoor personal cultivation shall be conducted by persons 21 years of age or older, an d the cumulative total of cannabis plants on the parcel containing a private residence , indoor and outdoor, shall not exceed six (6) cannabis plants, regardless of number of persons residing on the property, regardless of the number of private residences on the parcel. 5. For qualified patients, persons with an identification card and primary caregivers, the cumulative total of cannabis plants cultivated outside shall not exceed six (6) cannabis plants per parcel containing a private residence, regardless of the number of qualified patients, persons with an identification card and primary caregivers residing on the property, and regardless of the number of private residences on the parcel. 6. Nothing in this section is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting cannabis cultivation by tenants. 7. Nothing in this section is intended, nor shall it be construed, to authorize commercial cultivation of cannabis outdoors. 8. Outdoor personal cultivation of cannabis shall not create: offensive odors or excessive dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the personal cultivation. 17.99.050 Commercial Cannabis Businesses A. Commercial Cannabis Operator Permit. 1. No person or entity shall operate or conduct a commercial cannabis activity or commercial cannabis business without first obtaining both a Commercial Cannabis Operator Permit from the city pursuant to Chapter 9.10, Cannabis Regulations, of the code and a conditional use permit from the City pursuant to this chapter to conduct the commercial cannabis activity at a specific location. Any permit authorizing commercial cannabis activity pursuant to this chapter shall be conditioned upon the holder obtaining and maintaining a City Commercial Cannabis Operator Permit and the appropriate state license for the activity. ATTACHMENT 1 PC3 - 12 EXHIBIT A 2. No permit issued for commercial cannabis activity pursuant to this chapter may be transferred, assigned, or bequeathed, by operation of law or otherwise. 3. The Commercial Cannabis Operator Permit must be renewed each year. 4. Expiration of the use permit shall be consistent with Chapter 17.58, Section 17.58.030(C). B. No entitlement or vested right. No person shall have any entitlement or vested right to licensing under these regulations. Operation of cannabis activity(ies) is a revocable privilege and not a right in the City. The applicant bears the burden of proving that all qualifications for licensure have been satisfied and continuously maintained. C. State Application Required. Filing a local application for cannabis activity(ies) with the City does not constitute an application with the State of California. A separate state application and license process must be followed through with the State. D. Application Requirements. All commercial cannabis activities require qualification through the commercial cannabis operator selection approval process in Chapter 9.10, Cannabis Regulations, of this code and a use permit for a specific location pursuant to this chapter. The application for a use permit shall include the following information: 1. Site plan, floor plans, and a general description of the nature, square-footage, parking and type of cannabis activity(ies) being requested. 2. An operations plan including: a. A security plan to the approval of the Chief of Police, pursuant to criteria approved by resolution of the City Council, including but not limited to o n-site security measures both physical and operational and, if applicable, security measures for the delivery of cannabis associated with the commercial cannabis business and payment of taxes and fees; b. Plan for restriction of access by minors. c. Employee safety and training plan; 
 d. Odor, noise and light management plan; e. Estimated energy usage and energy efficiency plan; f. Estimated water usage and water efficiency plans; and 
 g. Waste management plan. 3. Proposed signage: a. Must comply with City’s Sign Regulations for size, area and type of sign, no exceptions allowed. b. Internal illumination of signs is prohibited. c. No portion of the cannabis plant may be used in any sign visible from the public right-of-way. d. Provide sign size, height, colors, and design of any proposed signage at the site. e. Must include a sign inside the premises that states: “Smoking, ingesting, vaping, eating or consuming cannabis or cannabis products on this site or in a public place is prohibited”. f. Must include a sign at each entrance of a retail storefront that prohibits persons under 21 years of age from entering, except for storefronts holding a M-license for ATTACHMENT 1 PC3 - 13 EXHIBIT A medical marijuana, who may post other appropriate signage as to who is permitted to enter. 4. An analysis that demonstrates neighborhood compatibility and a plan for addressing potential compatibility issues; 5. Vicinity map showing at least six hundred (600) feet of surrounding area and the distances to the following uses: any licensed child day care facility or any pre-school, elementary school, junior high school, or high school and two hundred (200) feet from a residentially zoned area. Distance shall be measured from the nearest point of the property line of the site that contains the commercial cannabis activity to the nearest point of the property line of the enumerated use using a direct straight-line measurement 6. Proof of ownership, option to purchase, (or lease agreement or option to lease with landowner’s express written consent to the proposed commercial cannabis activity(ies) to be conducted on the premises) or other proof of right to apply for the permit at the location; 7. A list of all other uses on the property; F. Commercial Cannabis Development Standards Each Cannabis business is required to meet the following standards: 1. Qualification through the Chapter 9.10, Cannabis Regulations, commercial cannabis operator selection process to apply for a commercial cannabis operator permit. 2. Submittal of a use permit application to conduct the commercial cannabis business within the zones specified for each type of commercial activity listed below. 3. Commercial cannabis facilities shall be located at least six hundred (600) feet from any licensed child day care facility, or any pre-school, elementary school, junior high school, high school, and two hundred (200) feet from any residentially zoned area. 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. 4. All commercial cannabis facilities shall be sited and/or operated in a manner that prevents cannabis odors from being detected offsite. Commercial cannabis activities shall not create offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the commercial facility. 5. All commercial cannabis operations must be concealed from public view at all times and there shall be no exterior evidence of cannabis or cannabis products occurring at the property, visible with normal unaided vision from any public place, or the public right-of- way. Commercial manufacturing of cannabis or cannabis products shall be shielded to confine light and glare to the interior of the structure. 6. All commercial cannabis facilities shall include adequate measures that address enforcement priorities for commercial cannabis activities including restricting access to the public and to minors and ensuring that cannabis and cannabis products are only obtained from and supplied to other permitted licensed sources within the State and not distributed out of State. 7. The permit to be issued under this chapter shall include, but is not limited to, the following conditions: a. The obtaining and maintaining of the Commercial Cannabis Operator Permit and appropriate state license ATTACHMENT 1 PC3 - 14 EXHIBIT A b. 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. c. Execution of a development agreement in accordance with Chapter 17.94 of this code and this section that either: 1) the commercial cannabis business owner will not conduct any commercial cannabis activity, other than testing, in the city at any time unless a valid cannabis tax measure, approved by the voters of the city is in full force and effect; or 2) the commercial cannabis business owner will pay fees, without protest, equivalent to [specify amount of proposed cannabis taxes and the amount annually in arrears by the City Council as the costs of addressing secondary effects from commercial cannabis activity in the city or specify some other method] if the commercial cannabis business opens prior to passage of a cannabis tax measure, or operates after a tax measure fails or is declared invalid, d. The permit or a controlling interest in the permit may not be assigned, transferred or bequeathed, by operation of law or otherwise and the permit shall terminate automatically on such event, e. Any permit issued pursuant to this chapter and chapter 9.10 expires after one year, unless renewed. f. Prohibition of on-site consumption of cannabis at: 1. at a commercial cannabis business or commercial cannabis activity location; 2. any other business, club or cooperative or event, regardless if open to the public or only to members; and 3. anywhere an entry or other fee is charged to attendees or the host or thing of value or consideration is received or exchanged. g. 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 h. 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 i. Prohibition of minors on the premises, even if accompanied by a parent or guardian. j. Outdoor storage of cannabis or cannabis products is prohibited. G. Commercial Cultivation 1. Commercial cannabis cultivation. Commercial cannabis cultivation may be conditionally permitted indoors only, subject to the requirements of this section and the obtaining and maintaining of a Commercial Cannabis Operator’s Permit pursuant to Chapter 9.10, Cannabis Regulations, of this code and appropriate state license, in the following zones: a. Service Commercial (C-S) b. Manufacturing (M) c. Business Park (BP) 2. A maximum of 70,000 square feet of cumulative canopy area (includes total canopy of either horizontal or vertical growing situations) for cultivation and nurseries shall be ATTACHMENT 1 PC3 - 15 EXHIBIT A allowed for indoor commercial cannabis cultivation in the City within the zones identified above, including Microbusinesses under subsection L below. 3. Outdoor commercial cannabis cultivation, including but not limited to cultivation in greenhouses, hoop structures, and by mixed light (part daylight/part artificial light), is prohibited. All commercial cannabis cultivation shall be conducted only inside a fully enclosed legally permitted structure that meets all applicable building and other codes. 4. Commercial cannabis cultivation conditional permits include the following: a. Specialty Cultivator – A maximum of no more than 5,000 square feet of canopy of indoor cultivation (either in horizontal or vertical growing situations) and includes processing. b. Small Cultivator – A maximum of no more than 10,000 square feet of canopy of indoor cultivation (either in horizontal or vertical growing situations) and includes processing. c. Nursery-Cannabis – A maximum of no more than 10,000 square feet of indoor propagation area (either in horizontal or vertical growing situations). 5. Development Standards: 1. Compliance with Subsection F. Commercial Cannabis Development Standards. 2. All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start of the operation. 3. Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and prevent contamination through erosion, leakage, or inadvertent damage from rodents, pests, or wildlife. G. Manufacturing 1. Manufacturing (non-volatile) Permissible. Non-volatile cannabis or cannabis products manufacturing may be conditionally permitted indoors only, subject to the requirements of this section and the obtaining and maintaining of a Commercial Cannabis Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones: a. Service Commercial (C-S) b. Manufacturing (M) c. Business Park (BP) 2. Manufacturing (volatile) Prohibited. Cannabis or cannabis products manufacturing involving volatile solvents, processes, compounds or substances is prohibited 3. Development Standards: 1. Compliance with Subsection F. Commercial Cannabis Development Standards. 2. Outdoor manufacturing of cannabis or cannabis products is prohibited. 3. A complete description of all products used in the manufacturing process including the cannabis supply chain, liquids, solvents, agents, and processes. 4. Storage protocol and hazard response plan. ATTACHMENT 1 PC3 - 16 EXHIBIT A 5. Employee safety and training equipment plan, plus Materials Safety Data Sheet requirements, if any. H. Distribution 1. Commercial cannabis distribution may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a Commercial Cannabis Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones: a. Service Commercial (C-S) b. Manufacturing (M) c. Business Park (BP) 2. Development Standards: 1. Compliance with Subsection F. Commercial Cannabis Development Standards. I. Testing Laboratory 1. Commercial cannabis testing may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a Commercial Cannabis Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones: a. Service Commercial (C-S) b. Manufacturing (M) c. Business Park (BP) d. Office (O) 2. Development Standards: 2. Compliance with Subsection F. Commercial Cannabis Development Standards. 3. The cannabis testing laboratory, as proposed, will comply with all the requirements of the State for the testing of cannabis, including dual licensure and participation in an authorized track and trace program. 4. The owners, investors, permittees, operators, and employees of the cannabis testing laboratory will not be associated with, nor have any financial interest in, any other form of commercial cannabis activity. 5. The cannabis testing laboratory is accredited by an appropriate accrediting agency as approved by the State and further described in Health and Safety Code Section 5238 and as it may be amended. 6. The cannabis testing laboratory operating plan demonstrates proper protocols and procedures for statistically valid sampling methods and accurate certification of cannabis and cannabis products for potency, purity, pesticide residual levels, mold, and other contaminants according to adopted industry standards. J. Retail - Storefront 1. 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: a. Retail Commercial (C-R) ATTACHMENT 1 PC3 - 17 EXHIBIT A b. Community Commercial (C-C) c. Tourist Commercial (C-T) 2. Development Standards: a. Compliance with Subsection F. Commercial Cannabis Development Standards. b. Only 3 retail storefronts 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. c. Retail storefronts must be separated from each other by at least 1,000 feet d. Hours of operation shall be limited between 9:00 am to 8:00 pm. K. Retail - Non-Storefront (Delivery Services) 1. Commercial cannabis non-storefront retail may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a Commercial Cannabis Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and the appropriate state license, in the following zones: a. Service Commercial (C-S) b. Manufacturing (M) c. Business Park (BP) 2. Development Standards: a. Compliance with Subsection F. Commercial Cannabis Development Standards. b. Hours of delivery shall be limited between 6:00 am to 10:00 pm. L. Microbusiness 1. Microbusinesses fall into two groups as described below and may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a Commercial Cannabis Operator Permit pursuant to Chapter 9.10, Cannabis Regulations, and the appropriate state license, in the following zones. a. Microbusinesses with no more than 50% of the gross receipts being from cultivation and manufacturing are allowed in the following zones: 1. Retail Commercial (C-R) 2. Community Commercial (C-C) 3. Tourist Commercial (C-T) b. Microbusinesses with no more than 50% of the gross receipts being from storefront retail sales are allowed in the following zones: 1. Service Commercial (C-S) 2. Manufacturing (M) 3. Business Park (BP) 2. Microbusinesses are subject to the 70,000 square feet of canopy cultivation city-wide limitation (either in horizontal or vertical growing situations) and the limit of 3 retail storefronts city-wide set forth in subsection K above. ATTACHMENT 1 PC3 - 18 EXHIBIT A 3. Development Standards: a. Compliance with Subsection F. Commercial Cannabis Development Standards. b. A maximum of 70,000 square feet of cumulative canopy for cultivation and nurseries shall be allowed for indoor cultivation in the City within the allowed land use zones. c. All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start of the operation. d. Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and prevent contamination through erosion, leakage, or inadvertent damage from rodents, pests, or wildlife. e. Only 3 retail storefronts will be allowed within the City. f. Retail storefronts must be separated from each other by at least 1,000 feet. g. Hours of retail shall be limited to between 9:00 am to 8:00 pm and delivery shall be limited to between 6:00 am to 10:00 pm. ATTACHMENT 1 PC3 - 19 EXHIBIT B Table 9: Uses Allowed by Zone Land Use Permit Required by Zoning District AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-D C-R C-T C-S M BP Cannabis Activity Specialty Cultivator D D D Small Cultivator D D D Nursery D D D Manufacturing I D D D Distributor D D D Microbusiness PC* PC* PC* D* D* D* Testing AA AA AA AA Retailer (delivery) D D D Retailer (storefront) PC PC PC Key: A = Allowed AA = Administrative Approval D = Director's Use Permit PC = Planning Commission Use Permit Approval Required * See section 17.99.050 (L) of the Zoning Regulations for specific requirements per zone. ATTACHMENT 1 PC3 - 20 EXHIBIT C Chapter 17.100: Definitions Cannabis. “Cannabis” or “cannabis product” 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 cannabis plants. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. Cannabis accessories. Any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. Cannabis Activity. Any activity involving cannabis or cannabis products, except for possession or use, which are regulated under state law. Includes commercial cannabis activity as well as personal non-commercial cultivation, processing, storing, labeling, or delivery for personal adult recreational or medicinal use. Canopy. “Canopy” means all of the following: 1. The totality of an individual plant's aboveground parts, including branches, stems, leaves, and flowering structures; 2. The designated area(s) at a licensed premise that will contain mature plants at any point in time; 3. Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all the space(s) within the boundaries; 4. Canopy may be noncontiguous, but each unique area included in the total canopy calculation shall be separated by an identifiable boundary such as an interior wall or by at least 10 feet of open space; and 5. If mature plants are being cultivated using a shelving or stacking system, the surface area of each level shall be included in the total canopy calculation. Commercial Cannabis Activity. The cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in this division. Concentrated Cannabis. The separated resin, whether crude or purified, obtained from cannabis. ATTACHMENT 1 PC3 - 21 EXHIBIT C Cultivation. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cultivation, Indoor. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis enclosed within a structure using artificial lighting. These structures do not have any part open to the outside. Cultivation, Outdoor. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis not within an enclosed structure such as open fields, greenhouses, hoop structures, etc. Cultivation, Personal. Cultivation of cannabis conducted by an individual strictly for that individual’s personal use, possession, processing, transporting, or giving away without any compensation whatsoever in accordance with this Code and State law, including but not limited to Health and Safety Code sections 11362.1 and 11362.2, as may be amended. Personal cultivation also means and includes cultivation of medical cannabis conducted by a qualified patient exclusively for his or her personal medical use, and cultivation conducted by a primary caregiver for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, in accordance with State law, including Health and Safety Code sections 11362.7 and 11362.765, as may be amended. Except as herein defined, personal cultivation does not include, and shall not authorize, any cultivation conducted as part of a business or commercial activity, including cultivation for compensation or retail or wholesale sales of cannabis. Delivery. The commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform owned and controlled by the retailer. Distribution. The procurement, sale, and transport of cannabis and cannabis products between licensees. Edible Product. Cannabis product that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code Greenhouse. A fully enclosed permanent or temporary structure that is clad in transparent material that may contain climate control, such as heating and/or ventilation capabilities, and/or supplemental artificial lighting, and/or use of both natural and artificial lighting (mixed light) for cultivation. Cannabis cultivation within a greenhouse is considered outdoor cultivation. Hoop Structure. A readily removable plastic or fabric covered hoop structure without in-ground footings or foundations. Cannabis cultivation within hoop structures is considered outdoor cultivation. ATTACHMENT 1 PC3 - 22 EXHIBIT C Live Plants. Living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants Manufacturing (Volatile). The production, preparation, propagation, or compounding of 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, using volatile organic compounds, at a fixed location, that packages or repackages cannabis or cannabis products, or labels or relabels its containers. Manufacturing (Non-volatile). The production, preparation, propagation, or compounding of 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, using non-volatile organic or inorganic compounds (see Cannabis Manufacturing (Volatile)), at a fixed location, that packages or repackages cannabis or cannabis products, or labels or relabels its containers. Microbusiness. Allows a single business to integrate cultivation, manufacturing, distribution and retail sales. Mixed-light Cultivation. Cultivation of cannabis using a combination of natural and supplemental artificial lighting (e.g. a greenhouse using natural light during the day and artificial light during the night). Mixed-light cultivation is not allowed. Nursery (Cannabis). A site that produces only clones, immature plants, seeds, or other agricultural products used specifically for the planting, propagation, and cultivation of cannabis. Cultivation as a cannabis nursery shall be indoor only (see Cultivation, Indoor). Product. See “Cannabis” and “Edible Product” and “Topical Product”. Private residence. A house, an apartment unit, a mobile home, or other similar dwelling. Sale/Sell/To Sell Any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom such cannabis or cannabis product was purchased. Retail (Cannabis). Includes storefront and non-storefront (delivery) sale of cannabis and cannabis products. Testing Laboratory. A facility, entity, or site in the State of California that offers or performs tests of cannabis or cannabis products and that is both of the following: 1) Accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the State, and 2) Licensed by the bureau. ATTACHMENT 1 PC3 - 23 EXHIBIT C Topical Product. Cannabis product that is intended to be used for external use. A topical cannabis product is not considered a drug as defined by Chapter 109925 of the California Health and Safety Code. Marijuana. See “Cannabis”. Medical Cannabis. See “Cannabis”. Medical Marijuana. See “Cannabis”. ATTACHMENT 1 PC3 - 24 ORDINANCE NO. 1633 (2017 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, CODIFYING AND REAFFIRMING CURRENT CITY LAW, POLICY AND PRACTICE BY EXPRESSLY PROHIBITING ALL COMMERCIAL AND INDUSTRIAL RECREATIONAL AND MEDICAL MARIJUANA USES, ACTIVITIES AND OPERATIONS AND LIMITING OUTDOOR CULTIVATION OF MEDICAL AND RECREATIONAL MARIJUANA WITHIN THE CITY WHEREAS, in 1996, California voters approved Proposition 215, entitled "The Compassionate Use Act of 1996", providing a defense to state criminal prosecution for specified medical marijuana use, and the Medical Marijuana Program Act established a voluntary participation, State -authorized medical marijuana identification card and registry database for verification of qualified patients and their primary caregivers; and WHEREAS, in 2015, the State Legislature approved the Medical Marijuana Regulation and Safety Act ("MMRSA"), which created an extensive statewide regulatory and licensing system for the cultivation, manufacture, testing, dispensing, distribution and transport of medical marijuana. MMRSA exempted from its regulatory and licensing system, certain medical marijuana cultivation by individual qualified patients and primary caregivers with no more than five qualified patients. In 2016, the State Legislature updated MMRSA by approving AB 21 and SB 837 to address issues not previously addressed in prior legislation and changed the name of MMRSA to the Medical Cannabis Regulation and Safety Act (MCRSA); and WHEREAS, under MCRSA, the State will not issue licenses to operators in jurisdictions that prohibit medical marijuana uses and activities, either expressly or under principles of permissive zoning; and WHEREAS, the City historically has relied on permissive zoning principles to decline permitting of marijuana businesses and uses within the City, and reaffirmed that position by adoption of Resolution 10683 on January 14, 2016; and WHEREAS, on November 8, 2016, California voters passed Proposition 64, entitled "The Control, Regulate, and Tax Adult Use of Marijuana Act" ("AUMA"). AUMA legalized under California law non-medicinal/recreational marijuana use for those 21 years of age and over, and created a comprehensive regulatory, licensing and tax system for the non-medical marijuana industry, including 19 different types of licenses for cultivation, manufacturing, testing, retailer, distributor and microbusiness; and WHEREAS, AUMA allows local governments to ban recreational marijuana businesses entirely, or regulate such businesses, and to reasonably regulate cultivation through zoning and other public health and safety laws, including prohibiting outdoor cultivation outright, but AUMA does require local governments to allow limited indoor cultivation in private residences; and 01633 ATTACHMENT 2 PC3 - 25 Ordinance No. 1633 (2017 Series) Page 2 WHEREAS, despite the changes in California law, the Federal Controlled Substances Act still makes it illegal under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute or dispense, marijuana, and the future of federal government enforcement actions under a new Presidential administration is uncertain in states that have legalized the recreational use of marijuana; and WHEREAS, it will take a substantial amount of time: to conduct public outreach regarding the direction the City should take regarding both medical and recreational marijuana businesses; to draft comprehensive zoning and other regulations relating to commercial recreational and/or medical marijuana activities within the City; to determine whether to pursue certain taxes related to commercial recreational marijuana; and to analyze the potential impacts and health and safety issues relating to such businesses, including, but not limited to, environmental, water, indoor electrical fire hazards, mold, odors and criminal activity; and WHEREAS, AUMA does not contain the protective language relating to permissive zoning that MCRSA does, and, in the absence of an express ordinance either prohibiting or regulating non-medical marijuana business or activities, the City could become subject to State licensing of marijuana businesses and activities within its jurisdiction and/or may not be able preclude the State from issuing licenses to marijuana businesses anywhere in the City; and WHEREAS, it is unclear to the full extent to which AUMA and MCRSA may conflict, how state regulatory provisions ultimately may reconcile the two licensing structures, and whether the provisions of AUMA will control over MCRSA; and WHEREAS, the City has had odor complaints relating to outdoor cultivation of marijuana, resulting in the addition of Chapter 8.22 to the Municipal Code, prohibiting persistent offensive odors from emanating across property or parcel lines; and WHEREAS, the City currently prohibits smoking and controls secondhand smoke, including marijuana smoke and vapors, in public and other places under Chapter 8.16, of its Municipal Code; and WHEREAS, the City Council wishes to preserve its ability to continue its current licensing, permitting, regulation and enforcement practices regarding marijuana uses within its boundaries in order to receive and consider council direction and public outreach to define the appropriate nature and scope of regulations. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. The foregoing recitals are adopted by the City Council as findings in support of the Ordinance. SECTION 2. This Ordinance constitutes an exercise of the City's police powers under the California Constitution and codifies existing law, policy and practice in the City of San Luis Obispo prohibiting marijuana uses and activities. 01633 ATTACHMENT 2 PC3 - 26 Ordinance No. 1633 (2017 Series) Page 3 SECTION 3. Chapter 9.10 is added to the San Luis Obispo Municipal Code, to read as follows: Chapter 9.10 MARIJUANA REGULATION 9.07.010 Purpose and Intent A. The purpose and intent of this chapter is to maintain the status quo while the city conducts public outreach by limiting the outdoor cultivation, and prohibiting manufacturing, processing, laboratory testing, labeling, storing and wholesale and retail distribution and sale of recreational and medical marijuana to protect the health, safety and welfare of the city consistent with state law. B. This chapter is not intended to, nor shall it be construed as, prohibiting or interfering with any right, defense or immunity afforded to qualified patients or their caregivers relating to medical marijuana under the Compassionate Use Act of 1996, the Medical Marijuana Program Act, the Medical Cannabis Regulatory and Safety Act and other applicable California law. C. This chapter is not intended to, and shall not be construed as, prohibiting or interfering with any right, defense or immunity of any individual relating to the recreational use or possession or indoor cultivation of marijuana as permitted by the Control, Regulation and Tax Adult Use of Marijuana Act; provided, nothing in this subsection is to be construed to permit actions violating or not permitted by other provisions of the Municipal Code, including, but not limited to, Chapter 5.01 Business License Program, Chapter 8.16 Smoking Prohibited and Secondhand Smoke Control, Chapter 8.22 Offensive Odors and Chapter 17.22 Use Regulations. 9.10.020 Limitation of Outdoor Cultivation of Marijuana No person shall cultivate, plant, grow, maintain or store more than six marijuana plants outdoors in any location within the City, whether or not located in a greenhouse or other structure designed or used for such activities. 9.10.030 Prohibition of Marijuana -Related Businesses A. Except as otherwise specifically required by California law, any and all commercial or industrial recreational and medical marijuana/cannabis-related uses, activities, businesses, or operations, are prohibited and unlawful within the City of San Luis Obispo. B. This prohibition applies to both for profit and nonprofit commercial and industrial uses, activities, businesses, operations, even if a State license under the Control, Regulate and Tax Adult Use of Marijuana Act or the Medical Cannabis Regulation and Safety Act is not required. C. This prohibition includes, but is not limited to, commercial and/or industrial: cultivation (both indoor and outdoor); manufacturing; processing; laboratory testing; 01633 ATTACHMENT 2 PC3 - 27 Ordinance No. 1633 (2017 Series) Page 4 wholesale or retail distribution, delivery and sale; labeling; storage; or permitting of smoking/vaporizing/ingesting on any business premises, of marijuana/cannabis, marijuana/cannabis products and all marijuana/cannabis derivatives for any purpose. 9.10.40 Violation and Penalties A. Misdemeanor. Any violation of the provisions of this chapter shall be a misdemeanor; provided, that where the city attorney determines that such action would be in the interest of justice, he/she may specify in the accusatory pleading that the offense shall be an infraction. B. Infraction Violation. Where the city attorney determines that, in the interest of justice, a violation of this chapter is an infraction, such infraction is punishable by a fine not exceeding one hundred dollars for a first violation, a fine not exceeding two hundred dollars for a second violation of the same provision within one year, and a fine not exceeding five hundred dollars for each additional infraction violation of the same provision within one year. C. The fine amounts set forth above may be modified, from time to time, by city council resolution. In no event shall such fine amounts exceed the amounts authorized by state law. D. Each person committing, causing, or maintaining a violation of this chapter or failing to comply with the requirements set forth herein shall be deemed guilty of a separate offense for each and every day during any portion of which any violation of any provision of this chapter is committed, continued, maintained, or permitted by such person and shall be punishable accordingly. E. The violation of any provision of this chapter shall be and is hereby declared to be a public nuisance and contrary to the public interest. Any public nuisance under this chapter may, at the city's discretion, be abated by the city by civil process by means of a restraining order, preliminary or permanent injunction or in any manner provided by law for the abatement of such nuisance. The city shall also be entitled to recover its full reasonable costs of abatement. The prevailing party in any proceeding associated with the abatement of a public nuisance shall be entitled to recovery of attorneys' fees incurred in any such proceeding if the city has elected at the initiation of that individual action or proceeding to seek recovery of its own attorneys' fees. F. In lieu of issuing a criminal citation, the city may issue an administrative citation to any person responsible for committing, causing or maintaining a violation of this chapter. Nothing in this section shall preclude the city from also issuing a citation upon the occurrence of the same offense on a separate day. G. The remedies set forth in this chapter are cumulative and additional to any and all other legal remedies available whether set forth elsewhere in the San Luis Obispo Municipal Code, or in state or federal laws, regulations, or case law 01633 ATTACHMENT 2 PC3 - 28 Ordinance No. 1633 (2017 Series) Page 5 SECTION 4 The adoption of this Ordinance maintains the status quo and does not make any change in the current or historic law, policy or practice of the City, and the whole of such action is not an activity which may cause direct or reasonably foreseeable indirect physical change in the environment under Public Resources Code Section 21065 or California Environmental Quality Act ("CEQA") Guidelines Section 15378 (a) and, therefore, is exempt from, and not a project subject to, environmental review. Even if the adoption of this Ordinance codifying existing law is determined to constitute approval of a project under CEQA, and even if the project is not subject to any statutory or categorical exceptions, as a matter of common sense, it can be seen with certainty that there is no possibility that the activity in question, the adoption of the Ordinance codifying existing law, may have a significant effect on the environment under CEQA guidelines section 15061 (b) (3). SECTION 5. This Ordinance shall not be interpreted in any manner to conflict with controlling provisions of state or federal law, including, without limitation, the Constitution of the State of California. If any section, subsection or clause of this ordinance shall be deemed to be unconstitutional or otherwise invalid, the validity of the remaining sections, subsections and clauses shall not be affected thereby. SECTION 6. 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 Tribune, 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 14th day of March 2017, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 4th day of April 2017, on the following roll call vote: AYES: Council Members Christianson, Gomez and Pease, Vice Mayor Rivoire and Mayor Harmon NOES: None ABSENT: None ATTEST: Zez4a Z Y Carrie Gallagher City Clerk 01633 ATTACHMENT 2 PC3 - 29 Ordinance No. 1633 (2017 Series) Page 6 APPROVED AS TO FORM: f, j J. Christine Dietrick 4 City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this day ofA.tL , 2017. Carrie Gallagher City Clerk 01633 ATTACHMENT 2 PC3 - 30 CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA), is accepting applications for state medicinal and adult- use (recreational) cannabis cultivation licenses as of January 1, 2018. The Three Licensing Authorities Who Does What This graphic illustrates the movement of cannabis and cannabis products through the three state agencies responsible for regulating cannabis. BUREAU OF CANNABIS CONTROL Housed within the Department of Consumer Affairs, the bureau licenses testing labs, distributors, retailers, and microbusinesses. 1-800-952-5210 bcc@dca.ca.gov bcc.ca.gov Bureau CALCANNABIS CULTIVATION LICENSING Housed within the Department of Food and Agriculture, CalCannabis licenses cannabis cultivators and manages a track-and-trace system. 1-833-CALGROW (225-4769) calcannabis@cdfa.ca.gov calcannabis.cdfa.ca.gov CalCannabis MANUFACTURED CANNABIS SAFETY BRANCH Housed within the Department of Public Health, MCSB licenses manufacturers of cannabis products, such as edibles and topical products. 1-855-421-7887 mcsb@cdph.ca.gov cdph.ca.gov/mcsb MCSB CULTIVATION CalCannabis MANUFACTURING MCSB DISTRIBUTION Bureau TESTING Bureau RETAIL Bureau MICROBUSINESS BureauDistribution PhaseRegulating ProgramATTACHMENT 3 PC3 - 31 In spring 2017, the Department of Food and Agriculture’s CalCannabis Cultivation Licensing division, the Department of Consumer Affairs’ Bureau of Cannabis Control, and the Department of Public Health’s Manufactured Cannabis Safety Branch released draft regulations for the Medical Cannabis Regulation and Safety Act of 2015. These licensing authorities held several public hearings to accept oral and written comments regarding the draft regulations. The licensing authorities had planned to move forward with a separate draft regulatory package for implementation of Proposition 64: The Adult Use of Cannabis Act of 2016. However, in June 2017, the Legislature passed and the Governor signed into law the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which creates one regulatory system for both medicinal and adult-use (recreational) cannabis. As a result, the three cannabis licensing authorities withdrew the proposed medical cannabis regulations and adopted emergency regulations based on the new law for the commercial medicinal and adult-use (recreational) cannabis industries. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) For more information on cannabis cultivation licensing: calcannabis.cdfa.ca.gov For details on other types of state cannabis licensing: cannabis.ca.gov ATTACHMENT 3 PC3 - 32 S HIGUERA STLAVENDERSTDIABLO DRJO H N S O N A V EGRAND AVEHWY 1 HIGH ST CH O R R O S T FOXHOLLOWRD CHUMASH ST G R O V E S T HEDLEY DR MADONNARDPACIFIC STPEP PER ST BUENAVISTAAVECREEKSIDE STSOUTHWOO D D R AU G U S T A S TW FOOTHILL BLVDBRO AD S T PA C H E C O W A Y MONTEREY STCAROLYNDRTREVORWAY LAUREL LNSERRANO DR SANTAYNEZ AVEOCEANAIRE DR PE R E I R A D RROYALWAYMADONNA R D PATRICIA DRPINE STKENTUCKY AVEORC U T T R D B R O A D S T CALIFOR NIA BLVD CONTENTA CTCENTER STBRANCH ST VIASANBLAS JE NNIFERST CEDAR CTMAPLE S TTHELMA DR TARRAGONLN REDWO OD ST HI L L S T HE L E N A S TANACAPACIR BLVD DEL CAMPOS PER IMETER ST MOUNTA IN STMOUNT BISHOP RD GATHEDRHIGHLAND DR LAVINEDACTLA E N T R A D A A VE CALLE JO A Q UI N ACCESSROAD ROYALWAYHIGUERA STBUE NA VISTAAVE ACCESSROADLOOMISST R O C K V I E W P L TO NINIDR CUESTAAVEDELOROCTGARNETTE DRKING STILE N E D R MUTSUHITO A V E STONERIDGE DR SYDNEY STNI P O M O S T GARCIA DRFREDERICKS ST MUGU ST C O R A L S T DAL I D I O D R SANLUIS D R CALLE MALVAWESTMONT A V E GARFIELDST MARSH STMUI RFIE L D S TREINA CTACCESSROAD ELPASEOCTHATHWAY AVEFLORENCE AVE SANVINCENZO FER N A N D E Z R D N PERIMETER ST EDGEWOODDRSKYLINE DRFENNELSTDELSOLCT C A LLEJOAQUINF AIR WA Y DR BROOKPINEDRSEQUOIA DRCALLEJAZMINB L U E BELL W AYUNNAMED RDC A M P U S W A Y KENTWOODDRTRESANA FARMHOUSELN QUA I L C I R PINE S T BINNSCT CAM D E N S TLINCOLN AVEWEST STVERDE DRBAYLEAFDR LIRIO CTSPOONERD R WESTMONT AVE FOOTHILL BLVD N C H O R R O S T VIAESTEBANLONGVIEW LNSAN SI M E O N S T TRUCKEE ST SAWLEAFCT AND R E W S S T PA R K S T TO R O S T VI A C A R T A DE VAU LRANC HD RACCESS ROAD GA R D E N S T CERROROMAULDO AVE FORTUNACTCRAIG WAY CALLE DE L C A MI N O SFROOMRANCHWAY LA POSA DA D RHUMBERTSTELM CTVIAENSENADAALYSSUM CT VISTADEL BRISA OLIVE STESTELITACTN TASSAJARA DRJUNIPERO WAY MISSION ST W NEWPORT STFELI CIAWAYSOUTH ST UNIVERS ITY ST WILSON ST FONTANA AVE EXPOSITION DRLIZZIE ST FIX L I N I S T MADRID CTROUGEOT PLTWINRIDGE CTBRIARWOOD DR ROUNDHOUSE AVE TANK FARM R D MURLDR TANGLEWOOD DRSYDNEY STHATHWAY AVEDELRIOAVE O S O S S T BR O A D S T SENDEROCTCUMBRECTCEDAR CT BEECH STBUCHON ST POINSETTIAST SA C R A M E N T O D R CHUPARROSA DR GRANADA DR UNNAMEDRDCORNUS CTGANADO RCTJEANDR HOL LYH OC K WAYSU N R O S E L N CARISSA CTRAFAEL WAYROYALWAYSTENNER STLOS FELIZCTSOUTHW O O D D R LOSALAMOS CTROSITA STBIRCH S T PINE S T MURRAY ST BISHOPSTACCESS ROADCIMA CTTURNER STJAM I LEE C TSYLVIACT BOND ST M O N TALBANSTSANTA ROSA ST LAS PRADERASDR MANZ ANITA WAY AMBROSI ACTGR O V E S T CHURCH ST OAKWO O D CTSANTABARBARAST PICO CTPA R K S T OLEACTSOLA CTLOMPOC LNR A N C H O D R SISQUOC STMALIBU DR CASA STP O IN S E T TIA C T M A R I A N W A Y OS O S S T AMBROSIALN W A L K E R S T ROSE A V E CLAIRE DR SPANISHOAKSDRBRECK STAR C H E R S T ST E P H A N I E D R GREGORYCT DAISYLNAC C ESSR OAD ALICITACTLE M O N S T MITCHELL DR MONTECITOST GATHE DRVIA CARTA STAFFORD ST GATHEDRWAVERTREESTPRADO RD HIGUERA STENCANTO LNST A N F O R D D R SONRISA CT OCEANAIRE CT C O U PER DR SPRINGCT ESCUELACTCHERRY LNDEE R ST JO H E L N MIOSSI RD PAULINEWAY OAK ST KRISTYCT CENTER ST SAWLEAF ST FLORA S T PERLALN LAWRENCE D R RICH CTIRONBARKST HE N R Y S T RU T H S TELLEN WAYACCESSROAD ACCESSROADWOODSIDEDRSAN CARLOS DR GOLDEN ROD LNLEROY CTRO S E A L Y CAS I T A S C T WOODBRIDGEST DONNA WAY MONTEREY STINDUSTRIA L W A Y VISTA DELCOLLADOS PERKINS L N EDN A RDROYALCT LOSROBLESCT WOODLANDDR CALLE DE L CAMINOSJOYCECTLUNETA DR MIR A D A D R SEQUOIADRPAULINEWAY VIEWMONT STUNNAMEDRDCA R M E L S T M O R R O S T JANICEDRVILL A G E DRBRESS I P L VIS TA DELLAGOMARGARITA AVE FULLER R DALISALAVEMILL STCORTUNABLUEBELL WAY U N N A M E D R D RAMONA DR VILLACT L O S C E R RO S DR ELLA STMELLO LNCAYUCOS DR GA L L E O N W A Y MCMILLAN AVEWIL DIN G LN MADONNA R D CIRCLESTBE A C H S T CATALINADR V I ACARTA PA R K L A N D T E R SUNFLOWER WAY ATASCAD E R O ST ALLEYVALLECITO CT ROBERTOCTJEFFREY DRCONEJO AVELAKEVIEW STS PERI METERSTGU L F S T TWINRIDGEDR BONETTI DR PI N E C O V E D R TAFT ST LEFF STISLAY STPISMO STUPHAM STPRO SPECT ST B O R O N D A S T LUCCABEEBEE STFELMARDR UNNAMEDRDISABELLA WAY LAWNWOODDRCORAL ST CORRIDA DR SNAPDRAGON WAY WARREN WAY QUAILDRCORDOVA DR MITCHELL DR ELMI RADORCTSERRAMEADOWSRDFELTON WAY FELICIA WAYRACHEL STBUCKEYECTDALY AVE TOLOSA WAY ELCERRITOCT LAWRENCE DR LINDALNA LD E RCT CU ES T A D R LILYLNTANGLEWOODDRFRAMBUESA DRPLUMSTREET MI G U E L I T O C T CLOVER D R BASIL LN CANTOPARKWAYDELMAR CT LEEANNCTCAROLYN DRMONTALBAN ST BAL B O A S T OAKRIDGEDRBLUEROCK DRFLOR ASTK N O LL DRFAIRVIEWST GARNETTEDRCASTILLOCTBROOK STVISTADEL A R R O Y O MURRAY ST MEINECKE AVE KL AM A T H S T SANTAFERDMCCOLLUM ST GEORGE ST MORRISON ST CROSS ST UNNAMEDR DPEACH ST CO U R T S T UNNAMED RDIRIS STCARLA CT ANACAPA CIR BAHI A C T CAZAD E R O S T REBA STSUNROSECTHIND LN FLETCHERAVE KENDALL RD EL C E N T R O ST CAUDILL ST GERDA ST AC CE SSROAD HATHWAY ALY POPULUSAV EAZALEACTASTERAVEPATRICIA C T DEXTER RDYARROWCTGRAVES AVEHENDERSON AVEPE N N Y L NAL HILACCESSROAD PHILLIPS LN VIOLET STDEANZACTJALISCO CTLALUNACTKIL A R N E Y C T ACCESS R O A D DAHLIA L NFERRIN I RDGAIL PLACCESSROAD P RIN C E T O N PLHOWARD STMARIP O S A D R LA D ER A CTANDR E W S S T TAFT ST BUSHNELL STHENDERSONAVELAWTON AVEGRAVES AVEHU A S N A D R B U E N A VISTA AVEMEADOW STLONG STSANDERCOCK STDESERETSTPALM STSUM AC CTVI C T O R I A A V E WALNUT ST HILLCREST PLLEONA AVEWEST ST CHANDLER STTENBROOK STMEADOW STACC ESS RO AD A C C E S S ROAD GARDEN ALYA R E Z Z O MARIGOLD CT M OU N TA IN V IE W S TDARTMOUTHDR VIALAGUNA VISTA FA RRIE R CT POPPY LNPRIVATE DRIVEWAYIRIS ST BIANCHI ST SINGLETREE CTSTERLINGLNFOREMANCT FUNSTON AVE R O C K VIE W CTJEFFREY DRKARENDRKING CTPOLYCANYONSTHUTTON STSTORY STHARRIS STCYPRESS STWARD STPRICE STCORONA CTABBOTT STS TASSAJARA DRUNNAMEDR D HAYS ST A C C E S S ROADWILLOWCIRROSEMARYCTMADRONELN POAPL HOPE ST SLACK ST C O T T O NW O O D L N SAN MARCOS CTCRA N DA L L WAYBULLO C K L NPALM STNOJOQUI LNLACITACTPHILLIPS LNPA S A T I E M P O D R WISTERIALNLAUREL LNB L U E B ELL W AYNASELLA LNFERNWOO D D R BRIDGE ST BOXWO O D C T AL M O N D ST P OL Y V U E DR101SONOCONNOR WAY ALBERT DRACCESS ROADSMITH STRU BI OLNCRAIG WAY D E E R ST ALRITA ST AC C E S S R O A D RACHEL CT DRAKE CIRCAMBRIA STC O LU M B IN E CT P A L OMAR AVEGARIBALDI AVELIV O R N O RES E RVOIR CANYONRD ELCASERIOCTHUMBERT A VECUESTA DRVEG A W A Y C O R T E ZCT LALOMAC T BUTTONWOOD WAYUNNAMEDRDSENDERO STCARPENTER S T LAGUNA LNCREEKSIDEST CUCARACHA CT HOOVER RDARALIA CT TULIP CTCALLE LUPITA LIZZIECTCASTAIC STLOMA B O NIT A DRNIPOMO ALYSWAZEY STDONEGALDR NE W P O R T S T SUELDO STJANE DR KENTUCKY ALY S K Y L A R K L N CY C LA ME N C TDESCANSOSTPEACHPHILLIPS ALY CANYONCIR LALOMITAWAYCL E A R V I E W L N LOMPOC LNVI C E N T E D R PENMAN WAYRAILROAD AVECERROV IS TA CIRCIR SAN J O S E CTDUNCAN RDMAPLE S T PALMMILL ALY MONTE VI S T A PLRICHARDSTPACIFIC STMO N TE REYPALM ALYCOLINA CTASH MORE ST SANADRIANO CT SANTAMA RIA AVE MI S S I O N LN MADONNA R D C ECELIACTSAN LUIS DRSLENDERROCK PL CORRALITOS AVEGRETAP L ANG IE LO U LN RICARDO STCOLLEGE AVECHRISTINAW AY WOODLAND CT CAPISTRANO CT UNNAMEDRDSEQUOIA DREMPRESA DRPHILLIPS LNRUSTICW AYSWEEN EY L N L O B E L IA L NACCESS ROADBENTON WAYACCESS ROAD THREAD LNLO S O S O S VALLEY R D VENABLE ST H O O V ER R D TA H O E RD ACCESSROAD PURPLE SAGELNU NNA ME DR D V ISTA CABALLO AUTO PARK WAYGARNETTE DRHAZEL DREL TIG RE CT SLACK ST ORANGEDRA L MO N D A L YJAYCEE DRVACHELL LNBARRANCACTSA NMI GUELAVEEMPLEO STMIRA SOL DR ACCESS ROADMAGN O L I A S T UNNAM E D R D SANTACLARA STBUCKLEY RD SYCAMO RE DR CALFIRESLUHEADQUARTERSDRIVEWAY SW E E T B A Y L NOLD WINDMILL LNLEXINGTON CTALTA STVENTURE DR C A PITO L IO W AYMADONNARD ELM CT UNNAMED RD UNNAMED RDSANM A TEO D R SANC A R LO S D R UNNAMED RDPARTRIDGED R MADONNAR D PISMOBUCH ON ALYBRIZZOLARA STSHO RT ST CUYAMA DR SEAWARD S T BEDFO RD CT AC C E S S MASON DR OJAI ST CACHUMA DR SPITFIRE ST A C C ESS R O ADSERRANOHTST IBU R ONW A Y SU N S E T D R F IERO L N ACCESSROADELM ST ZACA L N A V O C A D O LN UN NA M EDRD PORTOLA STUN N A M E D R D G U ER R ADR EMILY STSANTAFERD E LC A P IT A N WA Y MARLENE DR DALY AVE ACC ES S R OAD AERODRACCESSROAD CALLE JO AQUIN N A R R O W C T CHAPLI NLNSUBURBAN RD LARKSPUR ST101 N ONCL E A R V I E W L N FRONTAGE RDHERMOSA WAYSANTALUCIADRLACANADADROLD SANTA FE RDHARMONY WAY JESPERSEN RDMALLARD WAYHORIZON LNALLENEWAYLAUREATE L N VIA LA PAZ AIRPOR T D R RAMONA DR AVA L O N S T MONTROSEDR AC C E S S R O A D B O U G A INV ILL EA S T BL A R N E Y L N M O R A BIT O PLPARKERST U N N AM E D RDACCESS ROADDELSUR WAY ALDERSTSAGE ST GRAND AVEMADONNA RDU N N A M E D R D A CC E SS R O A D DELNORTEWAY SANSIMEONST CALLE CROTAL OMADONNA RDA C C E S S ROAD A CCESSROAD DANA STLONGVIEWALYACCESS ROAD SHEFIELD ST C HAP AR RAL CIR AEROVISTA PLPINNACLESRDUNNAMED RDCLARION CT UNNAMEDRDACCESSROADLIM A D R BOYS E N A V E UNNAMED RD ESPERANZA LNOCTAGONWAYCAVALIERLNSIE R R A W A Y 101 S O N AC C E S S R O A D AC CES S ROAD HOPKINS LN POLYCANYONSTELMERCADOST HANSEN LN MEISSNER STETO CIRUNNAMEDRD ELKS LNPI N N A C L E S R D UNNAMEDRDBLUEGRANI TELNAC C E SS ROADUNNAMEDRDA C C E S S ROADACCESSROADACCESSROAD A C CE SS R O A D LOS PALOS DRLOS PALOS DRACCESSROAD ACCESS ROADLOSVERDESDR LOS VERDES DRACCESSROAD A CC ES S RO A D UNNAMED RDUNNAMEDRDA C C E S S ROAD ACCESS ROAD UNNAMED RD UNNAMED RD CRESTVIEWCIRµ 0 0.5 1 1.5 2Miles Other Zones that do not allow Cannabis activity permits Buffers 1000' School 300' Residential Zones ATTACHMENT 5Combined Residential and School Buffer Map PC3 - 33 S HIGUERA STCREEKSIDE STBROAD STPINE STCONTENTA CTCENTER STCEDAR CTMAPL E S T REDWOOD STDELOROCTMUI RF I EL DS T DELSOLCT BROOKPINEDRB L U E B E L L W A Y FARMHOUSE LN PINE S T SAN S I M E O N S T SAWLEAFCT CALLE D EL C A MI N O S L A P O S A D A D R ALYSSUM CTFELICIAWAY TANK FARM R DBEECH ST POINSETTIASTCHUPARROSA DR CORNUS CTHOLLYHOCKWAYS U N R O S E L N C A RIS S A CT BIRCH S T PINE S T LAS PRADERAS DR M A N Z A N IT A WAY AMBROSIACTOLEACT P O IN S E T TIA C T AMBROSIALN SPANISHOAKSDRMONTECITOST WAVERTREESTENCANTO LNSAWLEAF ST PERLALN IRONBARK ST GO L D E N R O D L N E D N A RD CALLE DEL CAMINOS FULLER RD BLUEBELL WAY VILLA CT MELLO LNSUNFLO W ER WAY PROSPECT STSNAPDRAGON WAY ELMIRADORCTFELICIA WAY LINDALNALDERCT LILYLN SANTAFERDCROSS ST SUNROSECTHIND LN KENDALL RD A Z A L E A C TYARROWCTDAHLIA L N MARIP O S A D R LONG STSUM ACCTM A R IG O L D CT POPPY LNPRIVATE DRIVEWAY ROSEMARYCTMADRONELNWISTERIALNB L U E B E L L W A Y BOXWOOD CT C O LU M B IN E C T BUTTONWOOD WAYCREEKSIDE ST HOOVER RDARALIA CT TULIP CTJESPERSENL N MAPL E S T ASHMORE ST ANGIE LOU LNRUSTICWAY L O B E L IA L N THREAD LNH O O VE RRD PURPLE SAGELNVACHELL LNJESPERSON RDMAGN O L I A S T UNNA M E D R D BUCKLEY RD SW E E T B A Y L NOLD WINDMILL LNVENTURE DR ELM C T UNNAMED RDSHORT STA C C E S SSPITFIRE STF IE R O L N ELM S T ZACA L N SANTA FE RD E LC A P IT A N W A Y THREE SISTERS RD AERODRSUBURBAN RD LARKSPUR S T OLD SANTA FE RDJESPERSEN RDHORIZON LNALLENEWAYAIRPO R T D R M O R A BIT O PL ALDERSTA C C E S S RO A D SANSIMEONST A C C E S S R O A D SHEFIELD ST C H A P A R R A L CIR AEROVISTA PLUNNAMED RDUNNAMED R D CLARION CT UNNAMEDRD UNNAMED RD ESPERANZA LNOCTAGONWAYMEISSNER ST EVANS RDPRIVATE DRIVEWAYLOS PALOS DRLOS PALOS DRLOS VERDES DR LOS VERDES DRµ 0 2,500 5,000Feet Buffers 200' Buffer on Residential within Area 600' School 200' Residential Zones Other Zones that do not allow Cannabis activity permits Residential Zones ATTACHMENT 6Airport Overlay Area PC3 - 34 FENNELSTMCMILLAN AVEMORRISON ST A CCE S S ROAD GARIBALDI AVEDUNCAN RDµ 0 250 500Feet Other Zones that do not allow Cannabis activity permits Buffers 600' School 200' Residential Zones Residential Zones ATTACHMENT 6Duncan McMillan Overlay Area PC3 - 35 PINE STMAPL E S T REDWOOD STGRANADA DR PINE S T PRADO RD BONETTI DR CROSS ST HIND LN LONG STCREEKSIDE ST SUELDO STEMPRESA DREMPLEO STMAGN O L I A S T UNNA M E D R D OLD WINDMILL LNZACA L N FRONTAGE RDVIA LA PA Z SHEFIELD ST MEISSNER ST UNNAMED RD UNNAMED RD µ 0 500 1,000Feet Other Zones that do not allow Cannabis activity permits Buffers 600' School 200' Residential Zones Residential Zones ATTACHMENT 6Higuera Commerce Overlay Area PC3 - 36 HIGUERA STFE R N A N D E Z R D W A L K E R S T A R C H E R S T C A R M E L S T BEEBEE STBROOK STBIANCHI ST PARKERSTµ 0 500 1,000Feet Other Zones that do not allow Cannabis activity permits Buffers 200' Buffer on Residential within Area 600' School 200' Residential Zones Residential Zones ATTACHMENT 6Mid-Higuera Overlay Area PC3 - 37 LAVENDERSTTARRAGON LN FENNELSTUNNAMED RDBAYLEAF DR VIAESTEBANSA C R A M E N T O D R UNNAMEDRDINDUSTRI AL W A YROBERTOC T M I G U E L I T O C T BASIL LN UNNAMEDRDUNNAMED RDWILLOWCIRB U L L O C K L N RICARDO STC A P IT O L IO W A Y B O U G A IN V IL L E A S TUNNAMEDRDUNNAMED RDUNNAMEDRDµ 0 500 1,000Feet Other Zones that do not allow Cannabis activity permits Buffers 600' School 200' Residential Zones Residential Zones ATTACHMENT 6Sacramento Industrial Overlay Area PC3 - 38 TREVORWAY H E L E N A S T BLVD DEL CAMPOMUTSUHITO AVESTONERIDGE DR HUMBERTSTROUNDHOUSE AVE MITCHELL DR LAWRENCE DR SAN CARLOS DR PERKINS LNMCMILLAN AVELAWRENCE DR BLUEROCK DRMORRISON S T FLETCHERAVE CAUDILL ST A CCESS ROADGAIL PLBUSHNELL STLAWTON AVEV I C T O R I A A V E LEONA AVECHANDLER STTENBROOK STFUNSTON AVE ACCESS ROADGARIBALDI AVEHUMBERT AVESWEENEY LNSANTACLARA STSANM ATEOD R MASON DR ACCESSROADEMILY STµ 0 500 1,000Feet Other Zones that do not allow Cannabis activity permits Buffers 200' Buffer on Residential within Area 600' School 200' Residential Zones Residential Zones ATTACHMENT 6South Broad Overlay Area PC3 - 39 Cannabis Regulations Policy Direction City of San Luis Obispo ATTACHMENT 7 PC3 - 40 Recommendations Receive a presentation, take public testimony, and provide the following direction to staff: 1.Prepare draft regulations based on direction provided by the City Council with input from the community and Planning Commission, and return to the Council on May 1, 2018, with the resolutions and ordinances necessary to adopt Cannabis Regulations; and 2.Return to the City Council on March 20, 2018, for approval of a Request for Proposals (RFP) to identify a consultant to process applications and establish a list of eligible cannabis business operators. ATTACHMENT 7 PC3 - 41 Overview Proposition 64 Previous SLO City Council Direction Public Outreach and Engagement Draft Regulations Key Policy Questions ATTACHMENT 7 PC3 - 42 Proposition 64 Legalizes Adult Use of Cannabis In November 2016, Proposition 64 was approved by California voters City of San Luis Obispo voters approved the measure by a significant margin -67.52% voted in favor Since the approval of Prop 64, State legislators have been at work consolidating various laws and writing the regulations ATTACHMENT 7 PC3 - 43 Council Direction (March 2017) The City Council took up the issue in March 2017, passing Ordinance 1633, which expressly prohibits all commercial and industrial cannabis business activity within the City At the same time, Council directed staff to: Monitor developments in other jurisdictions Monitor development at the Federal level Engage the community regarding various land use and taxation alternatives that may be appropriate Return to the City Council with a recommendation ATTACHMENT 7 PC3 - 44 Public Outreach Zoning Regulations Public Workshop –June 2017 POSAFY Consultation –June 2017 Chamber of Commerce, Legislative Action Committee – September 2017 Downtown SLO Board, Issues Committee –September 2017 Open City Hall –October 13, 2107 Public Open House –October 23, 2017 Overview of Draft Regulations Published –January 11, 2018 City Council Policy Level Discussion –February 20, 2018 ATTACHMENT 7 PC3 - 45 Scope of Draft Regulations Is intended to support the local cannabis economy and industry growth potential by permitting a wide range of cannabis uses Allows for access to medical and recreational marijuana in the City, with storefront and delivery options Prohibits events and onsite consumption Requires vendors to be certified and ranked prior to applying for a permit Includes requirements for energy and water efficiency, and limits total amount of cultivation, to ensure consistency with City climate action goals ATTACHMENT 7 PC3 - 46 Scope of Draft Regulations Limits manufacturing uses to non-volatile processes only Limits cultivation to indoors only, and total amount of canopy allowed to 70,000 square feet, cumulatively Establishes buffers from cannabis businesses of 200-300 feet from residential zones, and 600 -1,000 feet from schools Requires stores to be located at least 1,000 ft. apart Provides for full cost recovery of city expenses related to all cannabis business monitoring, enforcement and administration ATTACHMENT 7 PC3 - 47 Draft Regulations –Permit Process Two-Step Process for Businesses 1.Annual vendor eligibility/ranking process by 3rd party consultant to City 2.Cannabis Activity Permit application process Administration and Oversight Annual licensing and regular inspections Regulatory Fees Full cost recovery for law enforcement, code enforcement, finance and administration activities Taxation levels and revenue estimates will be developed separately from the regulations ATTACHMENT 7 PC3 - 48 Vendor Selection Process •Open application period for vendors •Annually on July 1 Submit Application •City Council to establish criteria via resolution •Applications vetted and background checks performed 3rd Party Review •Eligibility list established •Priority order rankings published Apply for Cannabis Activity Permit ATTACHMENT 7 PC3 - 49 Cannabis Activity Permits (Guide)Specialty Cultivator •5,000 s.f. max. •Indoor only •C-S, M, BP zones Definitions: Specialty cultivator –indoor only grows under 5,000 s.f., includes processing. Small cultivator –indoor only grows under 10,000 s.f., includes processing Nursery –indoor only propagation under 10,000 s.f. Manufacturer I –non-volatile processing of cannabis into any other product Testing –lab testing is required by the State prior to distribution to a retailer Retailer –includes storefront and delivery Distributor –retailers must purchase from distributors Microbusiness –allows a single business to integrate cultivation (10,000 s.f.max.), manufacturing, distribution and retail sales Type of permit Allowed locations ATTACHMENT 7 PC3 - 50 Cannabis Activity Permits (Guide)Specialty Cultivator •5,000 s.f. max. •Indoor only •C-S, M, BP zones Zones and Permit Types: CS –Service Commercial M –Manufacturing BP –Business Park Specialty Cultivator, Small Cultivator, Nursery, Manufacturing I, Testing, Retailer, Microbusiness CR –Retail Commercial CT –Tourist Commercial CC –Community Commercial Retailer, Microbusiness O –Office zone Testing Type of permit Allowed locations ATTACHMENT 7 PC3 - 51 Cannabis Activity Permits Specialty Cultivator •5,000 s.f. max. •Indoor only •C-S, M, BP zones Small Cultivator•10,000 s.f.max. •Indoor only •C-S, M, BP zones Nursery•10,000 s.f.max. •Indoor only •C-S, M, BP zones only Maximum of 70,000 s.f.of canopy for cultivation and nurseries, cumulatively ATTACHMENT 7 PC3 - 52 Cannabis Activity Permits Manufacturing I•Non- volatile only •C-S, M, BP zones Testing•C-S, M, BP, O zones only Retailer•Up to 3 retail storefronts Citywide •Storefront retail in C- R, C-C, and C-T zones •Non- storefront retailers (delivery only) in C- S, M, BP zones ATTACHMENT 7 PC3 - 53 Cannabis Activity Permits Distributor•C-S, M, BP zones Microbusiness•Indoor cultivation only (subject to limit of 70,000 s.f. city-wide) •In C-R, C-C, C-T zones, max 50% of gross receipts from cultivating, manufacturing •In C-S, M, BP zones max 50% of gross receipts from storefront retail sales (subject to limit of 3 retail storefronts city-wide) ATTACHMENT 7 PC3 - 54 Cannabis Activity Permit Locations ATTACHMENT 7 PC3 - 55 Additional Requirements for Cannabis Activity Permits Cultivators must submit energy and water efficiency plans with permit applications Standard: Achieve Zero-Net Energy compliance by 2020 Security Plans: All cannabis permit applications shall include site specific security plans for review and approval by the Police Department to include video surveillance and other required features Buffers: 200-300 feet from premises to any residence in a residential zone 600-1,000 feet from premises to any pre-school, elementary, middle or secondary school Retail storefronts must be separated by at least 1,000 feet ATTACHMENT 7 PC3 - 56 Additional Requirements for Cannabis Activity Permits Signage Must comply with City’s Sign Regulations for size, area and type of sign, no exceptions allowed Internal illumination of signs is prohibited No portion of the cannabis plant may be used in any sign visible from the public right-of-way No cannabis products may be displayed in store windows and visible from the public right-of-way On-site consumption, whether at a place of business or event, should be prohibited ATTACHMENT 7 PC3 - 57 For Discussion 1.Does the City Council want to allow access to commercial cannabis by City residents? 2.If yes, would the Council want to limit access to medicinal only, or medicinal and adult use? 3.If either, does the Council want to allow storefront sales in the City, or delivery only? 4.If delivery only, does the Council want the delivery business to be located in the City, or only allow deliveries from outside of the City? ATTACHMENT 7 PC3 - 58 For Discussion 5.Does the City Council want to prohibit persons under 21 on the premises of a cannabis business, with the result that persons 18-21 years old will only be able to get medicinal cannabis by delivery? 6.If the City Council wants to allow retail sales either via storefront or delivery by businesses located within the City, does the City Council support other types of cannabis businesses inside the City, or retail only? 7.If the City Council is interested in allowing other types of businesses, does the City Council support allowing a range of license types (cultivation, manufacturing, distribution, microbusiness, testing) to support a local supply chain, and craft producers? 8.If the City Council is interested in allowing cannabis business activity in the City, is a 200-foot buffer from residential areas sufficient, or should the City stick with the State recommended 300-foot buffer from residential areas? 600 or 1,000 foot school buffer? ATTACHMENT 7 PC3 - 59 For Discussion 9.If the City Council is interested in allowing retail sales and manufacturing of cannabis products within the City, does it want to prohibit certain types of concentrates (shatter, wax, hash, etc.) that are typically smoked, vaped, or dabbed? 10.If the City Council wants to allow indoor cultivation in the City, does it want to require these businesses to achieve Zero Net Energy compliance upon establishment of the business, by a date certain, or require other energy efficiency compliance methods such as purchasing green energy offsets? 11.Does the City Council support the concept of using a third- party consultant to develop and implement standards for qualifying and ranking future cannabis business operators? ATTACHMENT 7 PC3 - 60 Next Steps February 20 -City Council Study Session Public testimony Council discussion Council policy direction to staff on proposed regulations March 28 –Planning Commission Public testimony Review of draft regulations Recommendation to the City Council May 1 –City Council review and potential adoption of regulations and related ordinances ATTACHMENT 7 PC3 - 61 Recommendations Receive a presentation, take public testimony, and provide the following direction to staff: 1.Prepare draft regulations based on direction provided by the City Council with input from the community and Planning Commission, and return to the Council on May 1, 2018, with the resolutions and ordinances necessary to adopt Cannabis Regulations; and 2.Return to the City Council on March 20, 2018, for approval of a Request for Proposals (RFP) to identify a consultant to process applications and establish a list of eligible cannabis business operators. ATTACHMENT 7 PC3 - 62