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CC - Item 2A - Extension of Urgency Ordinance No. 877 to Prohibit Approval of Applications for Medical Marijuana DespensariesROSEMEAD CITY COUNCIL STAFF REPORT TO: THE HONORABLE MAYOR AND CITY COUNCIL FROM: JEFF ALLRED, CITY MANAGER DATE: AUGUST 11, 2009 41A SUBJECT: EXTENSION OF URGENCY ORDINANCE NO. 877 TO PROHIBIT APPROVAL OF APPLICATIONS FOR MEDICAL MARIJUANA DESPENSARIES SUMMARY On June 30, 2009, pursuant to Government Code section 65858, the Rosemead City Council enacted Urgency Ordinance No. 877, which imposed a moratorium on the approval of applications for land use entitlements for medical marijuana dispensaries for a period of 45 days. During this 45-day period, staff has begun to compile and study the substantial health and safety issues, as well as the inconsistencies between State law and Federal law, regarding the approval of and location of medical marijuana dispensaries. The limited 45-day period has not provided a sufficient amount of time to address the potential adverse impacts that such a use may present if left unregulated. Therefore, such factors warrant the City Council's consideration of the adoption of Urgency Interim Ordinance No. 879 to extend Urgency Interim Ordinance No. 877 for a period of ten (10) months and fifteen (15) days. Staff Recommendation Staff recommends that the City Council introduce and conduct the first reading (by title only) of a City Council Ordinance in Attachment A, and adopt, as an urgency measure pursuant to California Government Code section 65858 (b) Ordinance No. 879 entitled "An Urgency Interim Ordinance of the City Council of the City of Rosemead, California, continuing the provisions of Ordinance No. 877 for a period of ten (10) months and fifteen (15) days to continue the Moratorium on Medical Marijuana Dispensaries in the City" and making findings in support thereof. ANALYSIS Over the past several months, the City has received inquiries from individuals interested in establishing medical marijuana dispensaries in Rosemead. Currently, the City's Municipal Code does not expressly permit or prohibit the establishment and operation of such facilities. However, applicants could require a use determination from the City pursuant to Section 17.12.030 of the Rosemead Municipal Code, thus allowing the potential for the establishment or prohibition on a case by case basis. ITEM NO. APPROVED FOR CITY COUNCIL AGENDA: City Council Meeting August 11, 2009 Page 2 of 2 As indicated in the 10-Day Report" (Attachment B), which was prepared by the City Attorney and made available for public review on July 30, 2009, staff has begun to compile and study the substantial health and safety issues, as well as the inconsistencies between State law and Federal law, regarding the approval of and location of medical marijuana dispensaries. This includes but is not limited to a review of the Qualified Patients Association et al. v. City of Anaheim lawsuit, which is currently pending before the California Court of Appeals, Fourth District. Staff, in conjunction with the City Attorney's office, has identified the Qualified Patients case as key to determining the ultimate legality of commercial operation of medical marijuana dispensaries. In addition to analyzing the impact of the Qualified Patients decision on the City's future regulation of dispensaries, staff has identified immediate health and safety concerns related to the siting of medical marijuana dispensaries, including but not limited to burglaries, robberies, and sales of illegal drugs in the areas surrounding dispensaries. In order for the City to further study the potential impact that a medical marijuana dispensary may have on the community, and due to the on-going Qualified Patients case, staff is recommending that the City Council adopt Ordinance No. 879, extending urgency Ordinance No. 877, for a period of ten (10) months and fifteen (15) days. The extension of this moratorium will allow staff the time needed to continue to study the impacts that such a facility would have on a community and determine an appropriate listing of alternatives for the City Council to consider which would range from tighter regulations to an outright ban on dispensaries within the City. Comprehensive research into the issue will help to ensure that public health, safety, and welfare is being protected at a high standard. 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. Prepared by: S LPP.t SFss" 7' B erSheri Bermejo. Principal Planner Community Development Director Attachment A: Ordinance No. 879 Attachment B: 10-Day Report Attachment C: Ordinance No. 877 ORDINANCE NO. 879 AN URGENCY INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA, CONTINUING THE PROVISIONS OF ORDINANCE NO. 877 FOR A PERIOD OF TEN (10) MONTHS AND FIFTEEN (15) DAYS TO CONTINUE THE 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. At a duly noticed public meeting on June 30, 2009, and after hearing and considering public testimony, the City Council adopted Ordinance No. 877, an interim urgency ordinance establishing a moratorium on medical marijuana dispensaries in the City for a period of 45 days pending a resolution of the conflict in Federal and State law on this issue. B. Government Code Section 65858(a) authorizes the City Council to continue the effect of Ordinance No. 877 for a period of 10 months and 15 days. C. The findings made in Ordinance No. 877 are herby reaffirmed, readopted and incorporated by reference as though they were fully restated herein. D. There have been no substantive changes the conflict between Federal and State law regarding medical marijuana dispensaries in the 45 days since the adoption of Ordinance No. 877. E. The immediate threat to and specific adverse impacts upon the public health safety and welfare that would result from unregulated development of Medical Marijuana Dispensaries justifies extension of the interim urgency moratorium F. It remains necessary for the City to complete its study of 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 Attachment A LA #4829-50134020 vi 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. G. The City finds that an interim prohibition on medical marijuana dispensaries and the issuance of any such applicable entitlements is necessary for an additional period of 10 months and 15 days. 1. An additional period of 10 months and 15 days will permit City Staff to complete its investigation of these matters and recommend a course of action to the City Council. 3. Government Code § 65858 authorizes the City Council to extend, 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, Ordinance No. 877 is hereby extended and the moratorium on medical marijuana dispensaries, as LA 44829-5013-4020 V1 set forth fully in Ordinance No. 877, shall remain in effect for an additional period of 10 months and 15 days. 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 10 months and 15 days from its date of adoption. SECTION 5. 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 10 months and 15 days. INTRODUCED at the regular meeting of Rosemead City Council on 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 LA #4829-50134020 v1 10 DAY REPORT ON THE CITY OF ROSEMEAD'S MORATORIUM ON THE APPROVAL OF APPLICATIONS FOR MEDICAL MARIJUANA DISPENSARIES BACKGROUND On June 30, 2009, pursuant to Government Code section 65858, the Rosemead City Council enacted Urgency Ordinance No. 877, which imposed a moratorium on the approval of applications for land use entitlements for medical marijuana dispensaries for a period of 45 days (the "Initial Ordinance"). This report is submitted in compliance with subsection (d) of Government Code section 65858, which requires the issuance of "a written report describing the measures taken to alleviate the conditions which led to the adoption of the ordinance." UPDATE ON THE MEASURES TAKEN TO ALLEVIATE THE CONDITIONS THAT LED TO THE ADOPTION OF THE INITIAL ORDINANCE 1. In the limited time allotted under the 45 day Initial Ordinance, City staff has begun to compile and study the substantial health and safety issues, as well as the inconsistencies between State law and Federal law, regarding the approval of and location of medical marijuana dispensaries. This includes but is not limited to a review of the Qualified Patients Association et al. v. City of Anaheim lawsuit currently pending before the California Court of Appeals, Fourth District. 2. Staff, in conjunction with the City Attorney's office, has identified the Qualified Patients case as key to determining the ultimate legality of commercial operation of medical marijuana dispensaries. In addition to analyzing the impact of the Qualified Patients decision on the City's future regulation of dispensaries, City staff has identified immediate health and safety concerns related to the siting of medical marijuana dispensaries, including but not limited to burglaries, robberies, and sales of illegal drugs in the areas surrounding dispensaries. Staff has determined that these concerns represent an immediate threat to the safety and health of the neighborhood which would be located close to medical marijuana dispensaries. RECOMMENDATION Due to the on-going Qualified Patients case and to the health and safety concerns noted in this report, staff recommends adoption of the Extension Ordinance. If adopted by the City Council, the Extension Ordinance would extend the moratorium on the approval of applications for land use entitlements for medical marijuana dispensaries for a period of 10 months 15 days. Attachment B 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. Attachment C - - - - . - - 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 At , 2009. ,I U Margar Clark, Mayor ATTEST: A&C~o Gloria Molleda, City Clerk' Ij APPROVED AS TO FORM: h Josep on ¢ ty Attorney STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS. CITY OF ROSEMEAD ) I, Gloria Molleda, City Clerk of the City of Rosemead, California, do hereby certify that the foregoing Urgency Ordinance No. 877 was regularly introduced and placed upon its first reading at a special meeting of the City Council on the30th of June, 2009. That after said Ordinance was duly adopted and passed by the following vote to wit: Yes: Armenta, Clark, Low, Ly, Taylor No: None Absent: None Abstain: None ~J..l~...l (T I\ 11 .AIYPnYI Gloria Molled City Clerk