City Council
MEETING DATE: 1/27/2016
TITLE:
Title
Interim Urgency Ordinance Establishing Regulations for Medical Cannabis Businesses
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends that the City Council adopt Ordinance No. ____, an urgency ordinance adopting regulations on the sale and cultivation of medical cannabis
Body
BACKGROUND:
Cathedral City currently regulates dispensaries but not cultivation through the issuance of conditional use permits, but has not adopted regulations for other types of marijuana businesses. Recent state legislation, the California Medical Marijuana Regulation and Safety Act (“MMRSA”) provides for the licensing and regulation of medical cannabis businesses, including dispensaries and cultivation, in California and gives local governments the authority to enact laws or regulations pertaining to such businesses pursuant to zoning powers. Under the MMRSA, the State will become the sole licensing authority for medical cannabis cultivation in any local jurisdiction that has not enacted land use regulations or ordinances regulating or prohibiting medical cannabis cultivation on or before March 1, 2016. Therefore, Cathedral City must adopt land use regulations on medical cannabis cultivation by the March 1, 2016 deadline or the City could lose regulatory authority over these businesses permanently. This Urgency Ordinance, along with the proposed amendments to Title 5 of the Cathedral City Code, would meet the state’s deadline and preserve Cathedral City’s regulatory authority by regulating medical cannabis dispensaries and cultivation facilities.
DISCUSSION:
Ordinance Number ____, which adds Chapter 5.88 “Medical Cannabis Businesses” to Title 5 of the Cathedral City Code licensing and regulating medical cannabis businesses, was approved by City Council on first reading on January 13, 2015 and will be heard for second reading on January 27, 2015. This ordinance establishes business licenses, ownership restrictions, and operational requirements for medical cannabis dispensaries in cultivation facilities.
This Urgency Ordinance establishes the land use component of Cathedral City’s medical cannabis business regulations by regulating zoning and land use for medical cannabis dispensaries and cultivation facilities in Cathedral City. The ordinance requires that any medical cannabis business obtain a conditional use permit in addition to a business license as required by proposed Ordinance No. ____. The Urgency Ordinance requires a medical cannabis business applicant to first obtain a business license before applying for a conditional use permit, and adds specific distance requirements for cultivation sites, modifies distance requirements for dispensaries, and sets forth more exact criteria for the CUP application process. The Urgency Ordinance also sets forth certain requirements for medical cannabis CUP permit holders, including but not limited to odor filtration requirements, security requirements, and record keeping requirements. An examination of the good moral character of applicants has also been added, and sections protecting the confidentiality of information, including protected health information.
The Urgency Ordinance allows medical cannabis cultivation sites under a CUP in zones I-1, PCC, CBP-2, and OS, along with the already permitted medical cannabis dispensaries under a CUP in Zones I-1, CBP-2, and PCC.
At the January 13, 2015 City Council Meeting, staff discussed the need to adopt the land use regulations as an urgency ordinance in order to meet the March 1, 2016 deadline imposed by the MMRSA. This Urgency Ordinance is proposed for Council adoption pursuant to Government Code section 65858, which authorizes interim zoning regulations to be adopted without following the normal procedures for the adoption of zoning ordinances. This Urgency Ordinance would go into effect immediately and remain effective until March 12, 2016, and may be extended prior to expiration by up to 10 months and 15 days. A permanent zoning ordinance codifying the same regulations contained in this Urgency Ordinance will be presented to the Planning Commission for a recommendation to the City Council on February 3, 2016. The permanent zoning ordinance will be presented to the City Council for first reading on February 10, 2016. If the City declines to adopt the Urgency Ordinance, it risks ceding its authority to regulate medical cannabis cultivation to the state.
FISCAL IMPACT:
All costs associated with the land use regulation of medical cannabis businesses will be covered by fees imposed on the applicants. Additionally, all medical cannabis businesses are required to pay up to a 15% tax on its proceeds pursuant to Chapter 3.48 of the Cathedral City Municipal Code. City Staff is currently working with Vicente Sederberg LLC to determine whether modifications or additions to the Chapter 3.48 are appropriate.
ATTACHMENTS:
Interim Urgency Ordinance