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CC - Item 2A - Interim Urgency Ord. No 877. Establishing a Moratorium on Medical Marijuana Dispensaries in the cityROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY C UNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: JUNE 30, 2009 SUBJECT: INTERIM URGENCY ORDINANCE NO. 877 - ESTABLISHING A MORATORIUM ON MEDICAL MARIJUANA DISPENSARIES IN THE CITY SUMMARY With recent changes to state and federal law regarding medical marijuana dispensaries, cities have seen a dramatic increase in inquiries from individuals interested in opening these types of businesses. Specifically, and as discussed in more detail in the ordinance itself, certain officials of the federal government have indicated an intent to make marijuana enforcement a low priority. At the same time, the California Court of Appeals will hear arguments in August on a key case on the legality of medical marijuana dispensaries. The City of Rosemead is currently limited in its ability to regulate medicinal marijuana dispensaries as it does not have an ordinance in place addressing this type of use. In January 2007, the City Council adopted Interim Urgency Ordinance No. 849 which placed a temporary moratorium to address marijuana dispensaries. The initial 45-day period was extended for an additional 10 months and 15 days by the City Council in February 2007. Given the federal government's intent to make marijuana enforcement a low priority and the potential legal issues from the California Court of Appeals, it would be prudent that City Council consider adopting an interim urgency ordinance which would establish a moratorium on medical marijuana dispensaries in the City of Rosemead. Approval of Ordinance No. 877 (Attachment A) by a four-fifths vote would prohibit approval of any medical marijuana dispensaries for a period of 45-days. If it takes staff and the City Attorney more than 45-days to update the ordinance, the City Council has the option of extending the moratorium for an additional period of time. It is likely that this will be the case, because unless the Court of Appeals issues a decision immediately following arguments on the dispensary case, the matter will not be decided until after the initial 45-day period has ended. Staff Recommendation Staff recommends that the City Council adopt Interim Urgency Ordinance No. 877 entitled "An interim urgency ordinance of the City Council of the City of Rosemead, California, establishing a moratorium on medical marijuana dispensaries in the City." ITEM NO. 2.A APPROVED FOR CITY COUNCIL AGENDA: City Council Meeting June 30, 2009 Page 2 of 2 LEGAL REVIEW This staff report has been reviewed and approved by the City Attorney. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. gaeki Community Development Director Attachment A - Interim Urgency Ordinance No. 877 ORDINANCE NO. 877 AN URGENCY INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, ESTABLISHING A MORATORIUM ON MEDICAL MARIJUANA DISPENSARIES IN THE CITY THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, FINDS AS FOLLOWS: SECTION 1. FINDINGS. Based on information contained in the record, the City Council makes the following findings: A. California has adopted laws regarding the use, possession and cultivation of medical marijuana. 1. In 1996, the voters of the State of California approved Proposition 215 (the Compassionate Use Act of 1996 - the "Act"), which was codified as Health and Safety Code Section 11362.5. The intent of the Act was to enable seriously ill Californians to legally possess, use, and cultivate marijuana under very limited circumstances. 2. In 2003, Senate Bill No. 420 ("SB 420") was enacted to clarify the scope of the Act and to allow cities and counties to adopt and enforce rules and regulations consistent with SB 420 and the Act, but also permitted patients and caregivers to form collectives or cooperatives for the cultivation of their medical marijuana. The Act and SB 420, together with applicable rules and regulations, are often known as the Medical Marijuana Program. 3. The establishment and operation of medical marijuana dispensaries are not authorized under the Act or SB 420. B. Many California cities have responded to the Act and SB 420 by regulating or prohibiting medical marijuana dispensaries. C. Many California cities and counties have adopted ordinances prohibiting or heavily regulating such dispensaries. 1. Cities that have permitted the establishment of medical marijuana dispensaries have witnessed an increase in crime, such as burglaries, robberies, and sales of illegal drugs in the areas immediately surrounding such dispensaries. 2. The United States Department of Justice's California Medical Marijuana Information Report advised that large-scale drug traffickers have been posing as "caregivers" to obtain and sell marijuana, thus increasing the likelihood that such traffickers in illegal drugs in the City, thereby endangering the public health, safety and welfare. 3. A number of cities in Los Angeles County have prohibited or imposed moratoria on medical marijuana dispensaries. Rosemead's Municipal Code does not currently expressly permit or prohibit medical marijuana dispensaries. This situation creates a substantially increased likelihood persons will seek to locate in such establishments within the City of Rosemead, thus creating a potential current and immediate threat to the public health, safety, or welfare. D. The law regarding medical marijuana dispensaries is in a state of conflict and flux. 1. The United States Supreme Court ruled in United States v. Oakland Cannabis Buyers' Cooperative (2001) 532 U.S. 483 that, notwithstanding California law, the federal Controlled Substances Act continues to prohibit marijuana use, distribution, and possession, and that no medical necessity exception exists to these prohibitions. 2. The United States Supreme Court ruled in Gonzales v. Raich (2005) 545 U.S. 1 that pursuant to the commerce clause, the federal government has the power to prohibit the local cultivation and use of marijuana, even though such cultivation and use complies with California law. 3. It is not clear what position the federal government will take in enforcing or changing existing laws regarding the use, possession and cultivation of marijuana for medical purposes. ' (a) In the wake of the Gonzales decision, the. federal government continued to enforce its anti-drug laws against medical marijuana dispensary operators. However, on February 25, 2009, U.S. Attorney General Eric Holder suggested a shift in the federal government's position on the prosecution of medical marijuana dispensaries by stating that the actions of federal law enforcement agencies would be consistent with the President's campaign statement that he would allow states to regulate medical marijuana without interference from the federal government. (b) Subsequently, on March 18, 2009, U.S. Department of Justice, Attorney General Holder stated the current administration's stance on the prosecution of medical marijuana distributors operating under enabling state laws as "The policy is to go after those people who violate both federal and state law." Furthermore, Holder stated that law enforcement officers will target those who attempt to "use medical marijuana laws as a shield for other illegal activity." (c) Members of U.S. Congress have stated that they anticipate introduction of bills which would, among other things, have the effect of legalizing the medicinal use of marijuana in California, or impose moratoriums on all federal government enforcement against users of marijuana for medical purposes. (d) Both the U.S. Congress and the Obama Administration have not provided any guidance as to what types of facilities dispensing medical marijuana, if any, are consistent under both California and federal laws. 4. On February 23, 2009, California Assembly Member Ammiano introduced Assembly Bill 390, which could remove marijuana and its derivatives from statutes defining and regulating controlled substances. This bill would also remove all civil and criminal penalties for adults 21 years of age or older who cultivate, possess, transport, sell or use marijuana. 5. Despite clear direction from the United States Supreme Court that medical marijuana dispensaries violate federal law, such facilities continue to operate throughout California and the power of cities and counties to regulate them is the subject of ongoing litigation. For example, the City of Anaheim's prohibition on medical marijuana dispensaries was challenged and is currently being considered by the Court of Appeal. 6. Oral arguments in the Anaheim case - properly titled Qualified Patients Association et al. v. City of Anaheim - are expected to be heard in August before the California Court of Appeals, Fourth Appellate District, Division Three. The resulting decision may uphold or reject the rights to cities to prohibit the ownership, management, and operation of medical marijuana dispensaries within their boundaries. This matter was not before the Court of Appeal when the City last adopted a moratorium on the subject of medical marijuana dispensaries. 7. The potential for change.in Federal enforcement of the Controlled Substances Act and the Court of Appeal decision on the subject of medical marijuana dispensaries create a new level of legal uncertainty that requires City Staff to again study the potential impacts of medical marijuana dispensaries in the City. E. It is necessary for the City to study the appropriate type of local regulation required for medical marijuana dispensaries together with the potential impact medical marijuana dispensaries may have on the public's health, safety and welfare. 1. Currently the City's Municipal Code does not expressly permit or prohibit the establishment and operation of medical marijuana dispensaries but applicants could require a use determination from the City pursuant to Section 17.12.030 of the City's Municipal Code, thus allowing the potential for the establishment or prohibition of such uses within the City on a case by case basis. 2. There exists a potential for inconsistent project review in that absence of clear policy direction based upon a thorough review of the City's land use goals and policies as well as information obtained from other cities and counties regarding the potentially positive and negative impacts that operation of such facilities may have on the community. 3. The current status of the state and federal law is fraught with inherent inconsistencies and pending judicial and administrative interpretations and the status of existing litigation and proposed legislation indicates a high level of community and statewide concerns regarding the establishment of medicinal marijuana dispensaries, warrants further review and consideration by the City in the establishment of appropriate local regulation for medical marijuana dispensaries. 4. The United States Supreme Court in Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency (2002) 535 U.S. 302 has upheld interim planning processes and determined that they are an essential tool of successful development. F. The City finds that an interim prohibition on such uses and the issuance of any such applicable entitlements is necessary for a period of 45 days. 1. Based on the foregoing, permitting the ownership, establishment or operation of medical marijuana dispensaries prior to resolution of the currently pending lawsuits challenging local regulation of medical marijuana dispensaries, would result in the current and immediate threat to the public health, safety, and welfare. 2. An initial period of 45 days will permit City Staff to undertake an initial investigation of these mattes and recommend a course of action to the City Council. 3. Government Code § 65858 authorizes the City Council to adopt, as an urgency measure, an Interim Ordinance prohibiting any uses which may be in conflict with its existing or proposed General Plan, Zoning Ordinance or land use policies and which the City is considering or studying or intends to study within a reasonable time. SECTION 2. ENVIRONMENTAL REVIEW. The City Council finds that: That this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; rather it prevents changes in the environment pending the completion of the contemplated Municipal Code review. SECTION 3. IMPOSITION OF MORATORIUM. The City Council orders as follows: A. In accordance with the authority granted the City of Rosemead under Government Code § 65858(a), and pursuant to the findings stated herein, for a period of 45 days from the date of adoption of this Ordinance: 1. No medical marijuana dispensary may be established or operated in any zone of the City. 2. No use permit, site development permit, tentative map, parcel map, variance, grading permit, building permit, building plans, zone change, business license or other applicable approval will be accepted, approved or issued for the establishment or operation of a medical marijuana dispensary. B. As used in this Ordinance, the following definitions apply: 1. "Establish" or "operate" a medical marijuana dispensary (as defined in this Ordinance) means and includes any of the following: (a) The opening or commencement of the operation of a medical marijuana dispensary; (b) The conversion of an existing business, facility, use establishment, or location to a medical marijuana dispensary; (c) The addition of a medical marijuana dispensary to any other existing business, facility, use, establishment or location. 2. "Marijuana" means all parts of the plant Cannabis, whether growing . or not; the seeds thereof; the resin extracted from any part of the plant; and every compound manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It includes marijuana infused in foodstuff. It 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 resin extracted therefrom), fiber, oil, or cake, or the sterilized seeds of the plant that are incapable of germination. 3. "Medical marijuana dispensary" means any business, facility, use, establishment or location, whether fixed or mobile, where medical marijuana is made available to and/or distributed by or to one or more of the following: a "primary caregiver," "a qualified patient," or a person with an "identification card," as these terms are defined in California Health and Safety Code § 11362.5 and following. A "medical marijuana dispensary" does not include the following uses, as long as the location of such uses are otherwise regulated by this code or applicable law: a clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code, a health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code, a residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code, a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code, a residential hospice, or a home health agency licensed pursuant to Chapter 8 of Division 2 of the Health and Safety Code, as long as any such use complies strictly with . applicable law including, but not limited to, Health and Safety Code § 11362.5 and following. SECTION 4. EFFECTIVE DATE AND DURATION. Pursuant to Government Code § 65858(a) this Ordinance shall take effect immediately but shall be of no further force and effect forty-five (45) days from its date of adoption, unless the City Council, after notice and public hearing as provided under Government Code § 65858(a) and adoption of the findings required by Government Code § 65858(c), subsequently extends this Ordinance. SECTION 5. REPORT ON INTERIM MORATORIUM. Pursuant to Government Code § 65858(d), 10 days prior to the expiration or any extension of this Interim Ordinance, the City Council will issue a written report describing the measures taken to alleviate the conditions which led to the adoption of this Interim Ordinance. SECTION 6. PUBLICATION. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect immediately and shall be in effect for a period of 45 days. INTRODUCED at the special meeting of Rosemead City Council on June 30, 2009. PASSED, APPROVED AND ADOPTED this day of 2009. Margaret Clark, Mayor ATTEST: Gloria Molleda, City Clerk APPROVED AS TO FORM: Joseph M. Montes, City Attorney