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Ordinance No. 977 - Extending a Temporary Moratorium Pertaining to Private Marijuana Cultivation and Non-Medical Marijuana Facilities ORDINANCE NO. 977 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, EXTENDING A TEMPORARY MORATORIUM PERTAINING TO PRIVATE MARIJUANA CULTIVATION AND NON-MEDICAL MARIJUANA FACILITIES The City Council of the City of Rosemead does ordain as follows: SECTION 1. Findings. A. As set forth in Municipal Code section 17.40.020, the City of Rosemead prohibits all medical marijuana dispensaries and marijuana cultivation facilities. The term "marijuana cultivation facility" includes any property where marijuana cultivation occurs. B. On October 9, 2015, Assembly Bills 243 and 266 and Senate Bill 643 (collectively, the "Medical Cannabis Regulation and Safety Act" or "MCRSA") were enacted to create a state regulatory and licensing system governing the cultivation, testing, and distribution of medical marijuana, the manufacturing of medical marijuana products, and physician recommendations for medical marijuana. MCRSA expressly preserved local control over medical marijuana facilities and land uses, including the authority to prohibit medical marijuana facilities and cultivation completely. C. On November 8, 2016, the voters of the State of California approved Proposition 64, entitled the"Control, Regulate and Tax Adult Use of Marijuana Act" ("AUMA"). D. Under Proposition 64, individuals may possess and use specified amounts of marijuana and may cultivate up to six marijuana plants per private residence. Under Health and Safety Codc section 11362.2(b), cities may prohibit private outdoor marijuana cultivation, but may not prohibit completely private indoor cultivation of six marijuana plants or less. Cities, however, may reasonably regulate private indoor cultivation of six marijuana plants or less. E. Proposition 64 also established a regulatory system for commercial marijuana businesses commencing at Business and Professions Code section 26000. Under Proposition 64, recreational marijuana cultivators, manufacturers, distributors, retailers, and testing laboratories may operate lawfully if they obtain a state license to operate and comply with local ordinances. The state will not issue licenses if the proposed marijuana business violates a local ordinance. F. Business and Professions Code section 26200, which is part of Proposition 64, expressly recognizes the ability of cities to completely prohibit all recreational marijuana businesses or to regulate such businesses. G. Following Proposition 64's passage, the City Council determined that it was imperative that the City maintain local control over all marijuana land uses to the fullest extent allowed by law. The City anticipated that Proposition 64 would encourage the establishment of various marijuana businesses within the City. The Municipal Code does not currently address recreational marijuana businesses. While no such business can operate in the City lawfully without a state license, express Municipal Code regulations regarding recreational marijuana dispensaries, cultivation facilities, manufacturing sites, transporters, distributors, testing laboratories, and microbusinesses were deemed necessary to provide clear guidelines regarding the scope of prohibited conduct and minimize the potential for confusion regarding the City's policies. H. Express Municipal Code regulations are also necessary to provide clear guidance regarding the scope of permissible private cultivation. The City anticipates that many individuals will begin to cultivate marijuana at their private residences following the passage of Proposition 64. 1. The City Council concluded that the adoption of a comprehensive marijuana ordinance that addresses both private cultivation and commercial recreational marijuana businesses would take time and require careful consideration and input from various community stakeholders and the general public. Until that process was complete, an interim urgency ordinance under Government Code section 65858(a) was necessary to protect the public health, safety, and welfare. J. On December 13, 2016, the City Council adopted Ordinance No. 969 establishing a 45-day moratorium pertaining to private marijuana cultivation and non-medical facilities. K. On January 24, 2017, the City Council adopted Ordinance No. 971 under Government Code section 65858 to extend the moratorium pertaining to private marijuana cultivation and non-medical facilities until December 12,2017. L. Since December 13, 2016, City staff has undertaken an initial investigation of these matters including consideration of what provisions should be included in a permanent ordinance regarding non-medical marijuana with regard to marijuana businesses (including cultivation, manufacturing, distribution, testing, and retail sales), outdoor cultivation, indoor cultivation, and delivery of non-medical marijuana to residents of the City of Rosemead. M. As the City studied the issue of marijuana regulations and dealt with the unpermitted marijuana facility, California's marijuana laws continued to undergo important changes. On June 27, 2017, the Governor signed Senate Bill 94, which repealed MCRSA and included provisions from MCRSA regarding medical marijuana in the AUMA, so that the regulations governing both medical and non-medical marijuana were contained under one regulatory structure. Senate Bill 94 renamed the AUMA as the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA"). In addition to consolidating state laws regarding medical marijuana and adult-use marijuana, Senate Bill 94 introduced more uniform terminology. Senate Bill 94 revised references in existing law to "marijuana" or "medical marijuana" to instead refer to "cannabis'' or "medicinal cannabis", and revised references to "nonmedical" to "adult-use." N. On September 16, 2017, the Governor signed Assembly Bill 133, which further revised MAUCRSA's provisions regarding marijuana deliveries, the state licensing of marijuana businesses, and marijuana taxation. O. The Bureau of Cannabis Control has announced that the state will begin issuing temporary licenses under MAUCRSA for marijuana businesses on or about January 1, 2018. In the meantime, the Department of Consumer Affairs, Department of Food and Agriculture, and the Department of Public Health, which are each responsible for issuing state marijuana licenses, are drafting state regulations that will implement MAUCRSA. It is anticipated that the state will release draft regulations for public review in November, 2017. P. As described in the findings supporting Ordinance Nos. 969 and 971, which the City Council incorporates herein, marijuana establishments and activities often present health, welfare, and public safety issues for cities. Several California cities and counties have experienced serious adverse impacts associated with and resulting from marijuana dispensaries, delivery services, and cultivation sites. According to these communities and according to news stories widely reported, marijuana land uses have resulted in and/or caused an increase in crime, including burglaries, robberies, violence, and illegal sales and use of marijuana in the areas immediately surrounding such marijuana activities. There have also been large numbers of complaints of odors related to marijuana cultivation and storage. Marijuana cultivation sites are often associated with illegal construction, unsafe electrical wiring, excessive water use, and fire hazards. It is reasonable to conclude that marijuana businesses and private cultivation under Proposition 64 would cause similar adverse impacts on the public health, safety, and welfare in the City. Q. In order to protect the public health, safety, and welfare, the City Council reaffirms its desire to amend the Municipal Code to address, in express terms, recreational marijuana businesses, marijuana deliveries, and private marijuana cultivation. The City Council hereby determines that the Municipal Code remains in need of further review and possible revision to protect the public against potential negative health, safety, and welfare impacts and to address private marijuana cultivation and the new marijuana business models recognized under Proposition 64. R. In light of the recent changes to state marijuana law and the pending release of state marijuana regulations, City staff needs additional time to review a potential permanent marijuana ordinance and receive direction from the City Council, while avoiding the potential adverse impacts of non-medical marijuana facilities and private marijuana cultivation that may arise as the City develops such permanent regulations. S. Government Code section 65858 provides that after a notice pursuant to Government Code section 65090 and public hearing, the City Council may extend the interim urgency ordinance for 10 months and 15 days ("First Extension"), and, after the First Extension, extend the interim urgency ordinance for a year. The City has complied with the notice and public hearing requirements of Government Code sections 65858(a) and 65090. Government Code section 65858(d) requires that prior to adoption of the ordinance extending the moratorium, a report is required to be submitted to the City Council describing the measures taken to alleviate the condition which led to the adoption of the ordinance. That report has been made available to the public at the City Clerk's Office. In addition, the agenda report accompanying this ordinance provides the information required under Government Code section 65858(d). T. Failure to adopt this ordinance extending the moratorium would impair the orderly and effective implementation of contemplated amendments to the Municipal Code. U. The City Council further finds that the extension of this moratorium is a matter of local and City-wide importance and is not directed towards any particular person or entity that seeks to cultivate marijuana in Rosemead. SECTION 2. Environmental Findings. The City Council exercises its independent judgment and finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(6)(3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The ordinance maintains the status quo and prevents changes in the environment pending the completion of the contemplated municipal code review. Because there is no possibility that this ordinance may have a significant adverse effect on the environment, the adoption of this ordinance is exempt from CEQA. SECTION 3. Extension of Moratorium. In accordance with Government Code section 65858(a), and pursuant to the findings, the City Council: (1) finds that there exists a current and immediate threat to the public health, safety, and welfare requiring this interim urgency ordinance; (2) finds that this ordinance is necessary for the immediate preservation of the public peace, health, and safety as set forth herein; and (3) declares and imposes a temporary moratorium for the immediate preservation of the public health, safety and welfare as set forth below: A. In accordance with the authority granted the City of Rosemead under Government Code section 65858(a), and pursuant to the findings stated herein, for a period of 1 year from the expiration date of December 12, 2017: 1. Non-medical marijuana facilities are prohibited in all zoning districts in the City and may not be established or operated anywhere in the City. 2. No person or entity may cultivate marijuana at any location in the City, except that a person may cultivate no more than six living marijuana plants inside his or her private residence, or inside an accessory structure to his or her private residence located upon the grounds of that private residence that is fully enclosed and secured against unauthorized entry, provided that the owner of the property provides written consent expressly allowing the marijuana cultivation to occur, the person conducting the marijuana cultivation complies with all applicable Building Code requirements, there is no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of marijuana cultivation, and the marijuana cultivation complies with Health and Safety Code section I1362.2(a)(3). 3. A non-medical marijuana facility may not deliver marijuana from any fixed or mobile location, either inside or outside the city, to any person in the City, except in accordance with Business and Professions Code §26054. B. For purposes of this ordinance, the following definitions apply: "Cultivate" means to plant, grow, harvest, dry, cure, grade, and/or trim marijuana. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana. "Marijuana" shall have the meaning set forth in Health and Safety Code section 11018. `Non-medical marijuana facility" means any building, property, business, establishment, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a state license or nonprofit license under Business and Professions Code sections 26000 and following, including but not limited to marijuana cultivation, marijuana distribution, marijuana transportation, marijuana storage, manufacturing of marijuana products, marijuana processing, the sale of any marijuana or marijuana products, and the operation of a marijuana microbusiness. C. City staff is directed to study appropriate modifications to the City's ordinances regarding non-medical marijuana facilities and marijuana cultivation. D. Pending the completion of such studies and the adoption of an ordinance to establish appropriate operational and zoning regulations, it is necessary for the immediate preservation of the public health, safety and welfare that this ordinance takes effect immediately. In the absence of immediate effectiveness, such uses in the City may conflict with existing regulations or requirements. E. This ordinance will take effect immediately upon adoption by a four-fifths vote of the City Council. SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. Effective Date and Duration. This urgency ordinance enacted under California Government Code section 65858(a) will take elect immediately upon adoption by a four-fifths (4/5) vote of the City Council. This ordinance will remain in effect for 1 year from the effective date, and will expire on December 12, 2018. SECTION 6. Study. City Staff is directed to continue to study and analyze issues related to the establishment or operation of recreational marijuana businesses and private marijuana cultivation within the City, including but not limited to, reviewing new and proposed State law and Slate regulations, evaluating conflicts in state and federal law concerning the validity of the legislation, the potential impacts of such facilities or activities on public health, safety and welfare of the community, the desirability of such facilities or activities in various zones, and the extent of regulatory controls, if any, to impose on such facilities or activities. SECTION 7. Report. Staff is directed to provide a written report to the City Council at least ten days prior to the expiration of this ordinance, describing the study conducted of the conditions that led to the adoption of this ordinance, in accordance with state law. SECTION S. Publication. The City Clerk is directed to certify this ordinance and cause it to be published in the manner required by law. PASSED, APPROVED, AND ADOPTED this 14th day of November, 2017. r --);-_ ----- Polly Low idayor APPROVED AS TO FORM: ATTEST. - itch� Cy Attorney Marc Donohue. City Clerk 10-DAY REPORT ON THE CITY OF ROSEMEAD'S MORATORIUM ON PRIVATE MARIJUANA CULTIVATION AND NON-MEDICAL MARIJUANA FACILITIES BACKGROUND On December 13, 2016, pursuant to Government Code section 65858, the City Council of the City of Rosemead enacted Ordinance No. 969 as an urgency measure imposing a 45-day moratorium on private marijuana cultivation and non-medical marijuana facilities. The Ordinance prohibits non-medical marijuana facilities citywide, prohibits any person or entity from cultivating marijuana at any location in the City (with a limited exception for personal indoor cultivation of six marijuana plants or less), and prohibits non-medical marijuana facilities from delivering to any person in the City. Government Code section 65858 allows an initial 45-day moratorium to be extended for up to 10 months and 15 days after a noticed public hearing is held. On January 24, 2017, the City Council extended the moratorium until December 12,2017. Government Code section 65858 also allows a second extension for up to an additional 12 months. As required by Government Code section 65858(d), the City must produce a report 10 days prior to extending a moratorium that describes the measures taken since the adoption of the urgency ordinance. UPDATE ON THE MEASURES TAKEN TO ALLEVIATE THE CONDITIONS THAT LED TO THE ADOPTION OF THE URGENCY ORDINANCE 1. The City is currently considering its options for regulating private marijuana cultivation and non-medical marijuana facilities and businesses. With regard to private marijuana cultivation, the City must evaluate the extent to which it wants to regulate private indoor cultivation of six marijuana plants or less and the extent to which it wants to allow and regulate other forms of private cultivation. With regard to non-medical marijuana businesses, the City must analyze a range of regulatory options and their potential impacts on the community and the enforceability of non-medical marijuana regulations. 2. The City is analyzing the potential negative impacts that could stem from private cultivation and/or non-medical marijuana businesses, including but not limited to property crimes, loitering, drugged driving, business displacement, nuisance conditions, and fire hazards. This analysis includes an evaluation of issues that other cities have faced or are facing with regard to marijuana land uses and how the City could avoid or minimize negative secondary effects that may occur if the City were to allow non-medical marijuana facilities. 3. The adoption of a comprehensive marijuana ordinance that addresses both private cultivation and commercial recreational marijuana businesses will take time and careful consideration and will require input from various community stakeholders and the general public. There has been insufficient time since the adoption of Ordinance No. 969 and Ordinance No. 971 to complete this process, especially with the adoption of Senate Bill 94, which amends existing state law regulations on marijuana. The City. therefore, needs additional time, as allowed under Government Code section 65858, to fully address the conditions that led to the adoption of Ordinance Nos. 969 and 971. R `� City of Wpsemeacf %I ,,r„),.ROrt,, • I. (013 S E V.11 I I A 8 11 I V 1 R I)I'U Bo A wc) (Ol A(11.A1tVIHFIiti, ROSE AII AU l Al IF1)NNIV4CT0 VA o-111.Ran 1111 HI( N 62! - ,nl i ▪ \Alvn. U12(» IR M,VG vR,I C_akK NOTICE OF PUBLIC HEARING BEFORE THE CITY COUNCIL OF THE CITY OF ROSEMEAD ON NOVEMBER 14, 2017 CONSIDERATION OF AN EXTENSION OF INTERIM URGENCY ORDINANCE NO. 977, EXTENDING THE TEMPORARY MORATORIUM ON PRIVATE MARIJUANA CULTIVATION AND NON-MEDICAL MARIJUANA FACILITES WITHIN THE CITY OF ROSEMEAD NOTICE IS HEREBY GIVEN that the Rosemead City Council will conduct a public hearing on Tuesday, November 14, 2017, at 7:00 p.m., at Rosemead City Hall, located at 8838 East Valley Boulevard, Rosemead, to consider and act upon a proposed extension to an interim urgency ordinance under Government Code section 65858 extending the temporary moratorium on private marijuana cultivation and non-medical marijuana facilities within the City of Rosemead. The proposed extension will be for one year. ENVIRONMENTAL DETERMINATION: The proposed Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The proposed ordinance maintains the status quo and prevents changes in the environment pending the completion of the contemplated municipal code review. Because there is no possibility that this ordinance may have a significant adverse effect on the environment, the adoption of this ordinance is exempt from CEQA. Written comments should be received before November 14, 2017. Comments should be sent to: City Clerk's Office, 8838 East Valley Boulevard, Rosemead, CA 91770. Pursuant to Government Code section 65858(d), a written report describing the measures taken to alleviate the conditions that led to the adoption of the interim urgency ordinance will be made available at the City Clerk's Office 10 days before the hearing noticed above. Pursuant to Government Code Section 65009 (b), if this matter is subsequently challenged in court, the challenge may be limited to only those issues raised at the public hearing described in this notice or in written correspondence delivered to the City of Rosemead at, or prior to, the public hearing. For further details on this proposal, please contact Lily Valenzuela, Interim Community Development Director, at (626) 569-2142 or Itrinh©cityofrosemead.org. In addition, the City Council Agenda and Staff Report will be available on the City's website under "City Calendar” (www.cityofrosemead.org) by the end of the day on Wednesday, November 8, 2017. Any person interested in the above proceedings may appear at the time and place indicated above to testify in support of, or in opposition to, the item(s) indicated in this notice. STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) § CITY OF ROSEMEAD I. Marc Donohue, City Clerk of the City Council of the City of Rosemead, California, do hereby certify that the foregoing Urgency Ordinance No. 977, was duly adopted by the City Council of the City of Rosemead, California, at a regular meeting thereof held on the 14'^ day of November, 2017, by the following vote, to wit: AYES: ARMENTA, CLARK, LOW, LY NOES: NONE ABSENT: ALARCON ABSTAIN: NONE adir Marc Donohue, City Clerk