City of Chino
CA

Staff Report

Ordinance to prohibit commercial marijuana activities throughout the City and to establish reasonable regulations for the personal cultivation of marijuana

Information

Department:Community Development DepartmentSponsors:
Category:Planning and Development

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  2. O2017-012 (This file has not yet been converted to a viewable format)

Budget String

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Body

BACKGROUND

In October 2015, the State legislature adopted the Medical Cannabis Regulation and Safety Act (“MCRSA”) to establish a statewide regulatory system for the licensing and operation of commercial medical marijuana businesses. MCRSA explicitly allows cities to prohibit each of the permitted types of commercial medical marijuana businesses.

At the November 8, 2016 election, California voters approved Proposition 64, also known as the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”). AUMA legalized the limited personal use and possession of marijuana, and preempted cities from prohibiting the cultivation of up to 6 marijuana plants for personal use indoors at a private residence. However, a city may completely prohibit the outdoor personal cultivation of marijuana.

AUMA also established a statewide regulatory system for the licensing and operation of commercial marijuana businesses for recreational use, which was similar to the medical marijuana regulatory scheme enacted by MCRSA. AUMA also explicitly allows cities to prohibit each of the permitted types of commercial marijuana businesses.

Recently, the State legislature adopted SB 94, also known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). The purpose of MAUCRSA is to reconcile the differences between the MCRSA and the AUMA, and to bring medical and recreational marijuana businesses into the same regulatory scheme.

Under the MAUCRSA, on or about January 1, 2018, the State of California will begin issuing state licenses for commercial marijuana operations (both medical and recreational). Local governments maintain regulatory and land use authority over all of these new commercial marijuana operations that the State will be licensing. Cities may completely prohibit these businesses, allow some but not others, or allow all of them. Cities may also impose stricter regulations than the State on any marijuana business type they allow. However, to maintain local control over these businesses, local governments are advised to expressly determine by ordinance whether each different type of business operation will be allowed in a city before the beginning of the new year. Thus, a failure to affirmatively address these operations through local ordinance may be interpreted to allow commercial marijuana operations to conduct business in a city pursuant to a valid state license, if that city does not expressly prohibit that license type.

 

ISSUES/ANALYSIS

Commercial Marijuana Activities

 

The City’s municipal code currently has prohibitions in Title 20 (“Zoning”) against marijuana processing, marijuana delivery, marijuana dispensaries, and marijuana cultivation. (See generally Chino Municipal Code section 20.01.060.) The City’s municipal code also currently has Chapter 10.70 (“Mobile Marijuana Dispensaries”), which prohibits mobile marijuana dispensaries and deliveries throughout the City. However, these prohibitions pre-date the AUMA and the MAUCRSA, and therefore do not necessarily cover each of the 20 types of licenses the State will begin issuing in January 2018.

 

The State marijuana licenses will be for retail sales, cultivation, manufacturing, testing, distribution, and micro businesses. There will be the same twenty different license types available for medical and recreational commercial operations, to be distinguished by either an “A” for adult-use (i.e., recreational) or an “M” for medical use. (Business & Professions Code § 26050.)

 

Generally speaking, manufacturing involves the preparation of marijuana products such as oils and edible products, and distribution involves the transportation of marijuana and marijuana products between licensed commercial facilities (e.g. transporting marijuana between the cultivation site and the testing facility). Deliveries of marijuana are covered by the “retailer” category of licenses.

 

The specific license types are as follows, with the majority being for various types of marijuana cultivation:

 

1.              Type 1 = Cultivation; Specialty outdoor; Small.

2.              Type 1A = Cultivation; Specialty indoor; Small.

3.              Type 1B = Cultivation; Specialty mixed-light; Small.

4.              Type 1C = Cultivation; Specialty cottage; Small.

5.              Type 2 = Cultivation; Outdoor; Small.

6.              Type 2A = Cultivation; Indoor; Small.

7.              Type 2B = Cultivation; Mixed-light; Small.

8.              Type 3 = Cultivation; Outdoor; Medium.

9.              Type 3A = Cultivation; Indoor; Medium.

10.              Type 3B = Cultivation; Mixed-light; Medium.

11.              Type 4 = Cultivation; Nursery.

12.              Type 5 = Cultivation; Outdoor; Large.

13.              Type 5A= Cultivation; Indoor; Large

14.              Type 5B = Cultivation; Mixed-light; Large.

15.              Type 6 = Manufacturer 1.

16.              Type 7 = Manufacturer 2.

17.              Type 8 = Testing laboratory.

18.              Type 10 = Retailer.

19.              Type 11 = Distributer.

20.              Type 12 = Microbusiness

 

The proposed ordinance specifically prohibits each of these types of licenses from operating within the City by adding a new Chapter 5.65 (“Marijuana Uses and Activities Prohibited”) to the Chino Municipal Code. Because “mobile marijuana dispensaries” and/or “marijuana deliveries” would be covered by the “Retailer” category described above, the proposed ordinance would delete the existing Chapter 10.70 from the Chino Municipal Code.

 

Personal Marijuana Cultivation

 

Currently, the City’s municipal code completely prohibits marijuana cultivation throughout the City in Section 20.01.060(C). However, the City’s municipal code currently does not address the personal cultivation of up to 6 marijuana plants indoors at a private residence, which the City may not prohibit under Proposition 64. Therefore, the City’s existing prohibition against marijuana cultivation is now preempted by State law to the extent it prohibits the indoor personal cultivation of up to 6 marijuana plants at a private residence. The City may continue to prohibit the outdoor cultivation of marijuana for personal use, and may establish reasonable regulations for the indoor cultivation of marijuana.

 

The proposed ordinance prohibits the outdoor cultivation of marijuana throughout the City and establishes reasonable regulations for the indoor cultivation of up to 6 marijuana plants at a private residence. The proposed regulations include, among other things:

 

·         The 6 plants must be grown entirely within a private residence or a fully-enclosed accessory structure to a private residence, and must not be visible from a neighboring property or public right of way.

·         Odors from marijuana cultivation must not be detectable from a neighboring property or public right of way.

·         The marijuana plants and marijuana grown from the plants in excess of 28.5 grams must be in a locked space on the property.

·         Marijuana cultivation cannot displace required parking at the private residence.

·         There must be a fire extinguisher kept in the room where the marijuana cultivation is occurring.

·         Any lighting used for the marijuana cultivation must not exceed the rated wattage and capacity of the circuit breaker, and must not result in light shining outside of the private residence or accessory structure.

·         A tenant must have landlord and/or property owner control to cultivate marijuana at a private residence.

·         A violation of the enumerated regulations is declared a public nuisance which may be abated by the City.

 

 

ENVIRONMENTAL IMPACT

 

The proposed ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that it will not have a significant effect or physical change to the environment.

 

 

Meeting History

Nov 7, 2017 7:00 PM Video City Council Regular Meeting
draft Draft
RESULT:APPROVED [UNANIMOUS]
MOVER:Gary George, Council Member
SECONDER:Tom Haughey, Mayor Pro Tem
AYES:Gary George, Paul Rodriguez, Eunice M. Ulloa, Tom Haughey, Earl C. Elrod