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.
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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
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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.
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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).
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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)
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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.
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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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;
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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
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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
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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
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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
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R
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A
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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
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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
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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