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1 MEMORANDUM TOWN OF PORTOLA VALLEY TO: Honorable Mayor and Town Council FROM: Leigh F. Prince, Jorgenson, Siegel, McClure & Flegel DATE: October 18, 2017 RE: Receive Update on State Cannabis Regulation, Provide Direction on Local Cannabis Regulation, and Adopt a 45-day Interim Urgency Ordinance RECOMMENDATION: Staff recommends that the Town Council receive updated information regarding State cannabis regulations, receive information regarding local cannabis regulation by local agencies, provide direction to staff relative to pursuing local cannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses and all personal outdoor cultivation, but not prohibiting personal medical marijuana use, medical marijuana delivery or personal indoor cultivation. BACKGROUND: The Town Council held a study session regarding Proposition 64 or the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) in December 2016. The Town Attorney’s staff report dated December 9, 2016 is Attachment 1. Proposition 64 was approved by 57% of the voters statewide, 63% of the voters in San Mateo County and 68% of the voters in Portola Valley. The AUMA took effect on November 9, 2016 and made it legal for persons 21 years of age or older to: smoke or ingest marijuana or marijuana products; possess, process, transport, purchase, obtain or give away to persons of 21 years of age or older 28.5 grams of marijuana or eight grams of concentrated marijuana; and possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use. The AUMA regulates what is commonly referred to as recreational or non-medical marijuana. /LQN WR $WWDFKPHQWV 3DJH Page 30

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Page 1: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

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MEMORANDUM

TOWN OF PORTOLA VALLEY

TO: Honorable Mayor and Town Council

FROM: Leigh F. Prince, Jorgenson, Siegel, McClure & Flegel

DATE: October 18, 2017

RE: Receive Update on State Cannabis Regulation, Provide Direction on Local Cannabis Regulation, and Adopt a 45-day Interim Urgency Ordinance

RECOMMENDATION: Staff recommends that the Town Council receive updated information regarding State cannabis regulations, receive information regarding local cannabis regulation by local agencies, provide direction to staff relative to pursuing local cannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses and all personal outdoor cultivation, but not prohibiting personal medical marijuana use, medical marijuana delivery or personal indoor cultivation.

BACKGROUND: The Town Council held a study session regarding Proposition 64 or the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) in December 2016. The Town Attorney’s staff report dated December 9, 2016 is Attachment 1.Proposition 64 was approved by 57% of the voters statewide, 63% of the voters in San Mateo County and 68% of the voters in Portola Valley.

The AUMA took effect on November 9, 2016 and made it legal for persons 21 years of age or older to: smoke or ingest marijuana or marijuana products; possess, process, transport, purchase, obtain or give away to persons of 21 years of age or older 28.5 grams of marijuana or eight grams of concentrated marijuana; and possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use. The AUMA regulates what is commonly referred to as recreational or non-medical marijuana.

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Since voter approval of the AUMA, the County of San Mateo has been engaged in an effort to develop a regional approach to regulating marijuana. Town staff has participated in a number of those meetings. The conversation around potential regulations has focused on addressing issues that might impact the health, safety and general welfare of communities such as odor, water and power usage, fire safety and security. The County’s effort at developing a regional approach is on-going.

Until recently, medical marijuana, which may be utilized by patients 18 years of age and older or 14 years of age and older with parental/guardian permission, was regulated by the Medical Cannabis Regulation and Safety Act (“MCRSA”). Senate Bill 94 (“SB 94”),which was signed by Governor Brown on June 27, 2017 and became effective immediately, blends together the medical and non-medical marijuana regulations by repealing the MCRSA and inserting certain of its licensing provisions into the AUMA.The two combined are now referred to as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). Generally, the same licensing requirements now apply to both recreational and medicinal marijuana. SB 94 also modifies terminology and marijuana is now referred to as cannabis. Finally, SB 94 requires local jurisdictions to provide the Bureau of Cannabis Control a copy of any ordinance related to commercial cannabis activity and the contact information for the person designated to serve as the contact person regarding commercial cannabis activity within the jurisdiction, with the default being the Town Clerk.

Most recently, Assembly Bill 133 (“AB 133”) allowed vertical integration which was not allowed before unless the licensed premises were separate and distinct. Under AB 133, an applicant may be issued multiple State licenses (e.g. cultivation, manufacturing, testing, retail) for one single physical location.

DISCUSSION: The Town does not have an ordinance specifically related to cannabis activity and at the study session in December 2016, the Town Council did not direct staff to consider options for regulating cannabis land uses in Town beyond what was identified in the AUMA. Therefore, this discussion will identify and discuss current Town zoning regulations as may be applicable to cannabis land uses. It will also identify potential benefits to preparing a specific ordinance related to cannabis land uses. While an ordinance is not required by SB 94, it may simplify matters for the State and limit the amount of interpretation of local zoning regulations necessary in the State’s licensing process.

Personal Residential Cultivation

The AUMA makes it legal for persons 21 years of age or older to cultivate up to six living marijuana plants for personal use. The plants can be grown indoors or outdoors. Local agencies may reasonably regulate, but not ban, personal indoor cultivation within a person’s private residence. Indoor cultivation includes cultivation in a greenhouse on the same property as the residence that is not physically part of the home, as long as it is fully enclosed, secure and not visible from a public space. A local agency may

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regulate or ban personal outdoor cultivation.

Issues that communities are considering relative to personal residential cultivation include, but are not limited to: regulations on indoor cultivation, including those for the safety of children or for ensuring electrical and water access; regulations on properties with more than one residence (e.g. second dwelling units); banning outdoor cultivation; permitting outdoor cultivation, but requiring screening; or considering if different zoning districts should have different regulations. All of these and other issues could be considered if the Town Council decides to prepare an ordinance specifically related to cannabis land uses.

The chart below shows the residential zoning districts in the Town and the permitted, conditional and accessory uses that could be relevant to both the personal cultivation and commercial cultivation (discussed below) of cannabis. Under the AUMA, personal residential indoor and outdoor cultivation is permitted, although as noted above the Town could put parameters around personal indoor cultivation for the health, safety and welfare of the community and could put parameters around or ban outdoor cultivation. The conditional and accessory uses (more relevant to commercial cultivation) currently identified in the zoning code do not specifically consider cannabis cultivation, but the AUMA defines cannabis as an agricultural product and therefore, these uses may be relevant for the Council to consider if it chooses to develop an ordinance specifically relating to cannabis land uses.

Personal Residential Cultivation

Zoning District Permitted Conditional Accessory

Residential Estate (R-E)

Personal Cultivation(AUMA)

· Crop farming, including the sale of products grown exclusively on the premises

· Nurseries and greenhouses, but no retail sales

· Horticulture1

· Sale of agricultural products grown on the premises, butno structure maintained specifically for such purposes

· Horticulture

Single-Family (R-1)

Personal Cultivation(AUMA)

· Landscaping, open space, growing of plants and similar low intensity uses each of which is attendant to adjoining uses in the C-Cdistrict

· Sale of agricultural products grown on the premises, but no structure maintained specifically for such purposes

· Horticulture

1 Horticulture is not defined in the Portola Valley Municipal Code. The dictionary definition is the art or practice of garden cultivation and management.

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Mountainous Residential

(M-R)

Personal Cultivation(AUMA)

· Crop farming, including the sale of products grown exclusively on the premises

· Nurseries and greenhouses, but no retail sales

· Horticulture

· Sale of agricultural products grown on the premises, but no structure maintained specifically for such purposes

· Horticulture

Commercial Cultivation

The Department of Agriculture will issue licenses for the cultivation of cannabis. The AUMA does not require security measures (fences, lighting, etc.) to obtain a license. Nevertheless, the regulatory landscape is in flux and State regulations may be developed and issued regarding the security of commercial cultivation sites. Premises licensed by the State shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued, unless a licensing authority or a local jurisdiction specifies a different radius. Attachment 2 shows a map of the areas (in green) that are within 600 feet of a school, day care or youth center. The State cannot issue a license to an applicant whose operations would violate local law.

Commercial cultivation, similar to personal cultivation, could take place indoors or outdoors. Indoor and outdoor cultivation could have different impacts on the community relative to issues such as odor or water and electricity usage. Indoor cultivation can include cultivation in a greenhouse in residential zoning districts. Beyond that, however, the Town does not have any zoning districts (e.g. light industrial districts) in which indoor cultivation, such as cultivation in a warehouse building, would be possible.

Commercial outdoor cultivation could be possible as a conditional or accessory use in the residential districts as noted in the table above and repeated in the table below. A similar example of commercial cultivation (but of products other than cannabis) would be the Fogarty property which is zoned M-R or the Jelich property which is zoned R-E, both of which have conditional use permits for commercial agricultural activities. Many residential properties are located more than 600 feet from a school or day care and agricultural activities are a conditional use. Cannabis is considered by State law to be an agricultural product and by Federal law to be a Schedule 1 controlled substance.Therefore, the Town Council may want to consider if commercial cannabis cultivation is appropriate in all residential districts and whether it would be appropriate to limit the number of commercial cultivation sites (for example to avoid a nuisance from the odor that could be produced by an over concentration of cultivation sites) and adopt an ordinance specifically relative to such uses.

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Commercial Cultivation

Zoning District Permitted Conditional Accessory

Residential Estate (R-E)

· Crop farming, including the sale of products grown exclusively on the premises

· Nurseries and greenhouses, but no retail sales

· Horticulture

· Sale of agricultural products grown on the premises, but no structure maintained specifically for such purposes

· Horticulture

Single-Family (R-1)

· Landscaping, open space, growing of plants and similar low intensity uses each of which is attendant to adjoining uses in the C-Cdistrict

· Sale of agricultural products grown on the premises, but no structure maintained specifically for such purposes

· Horticulture

Mountainous Residential

(M-R)

· Crop farming, including the sale of products grown exclusively on the premises

· Nurseries and greenhouses, but no retail sales

· Horticulture

· Sale of agricultural products grown on the premises, but no structure maintained specifically for such purposes

· Horticulture

Commercial cannabis cultivation could also occur in the Open Area (O-A) zoning district, which is generally on the east side of Alpine Road. In the O-A zoning district commercial cannabis cultivation is a permitted use as State law defines cannabis as an agricultural use and there would be no local regulation of commercial cultivation in this district without a more specific ordinance adopted by the Council.

Commercial cultivation may also be possible in the Community Commercial (C-C) district. A nursery is a conditional use and cannabis could be grown and sold at a nursery. Nursery is not a term that is defined in the Municipal Code. The general dictionary definition includes a place where young plants are grown for sale or for planting elsewhere. Nothing in the Municipal Code is specific as to whether or not the plants that can be grown in a nursery include cannabis and this could be something addressed by an ordinance.

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Commercial Cultivation

Zoning District Permitted Conditional Accessory

Open Area

(O-A)

· Agricultural uses including horticulture, grazing, minor shelters for stock and equipment, but not including uses listed underSection 18.26.030 unless such uses are authorized by conditional use permit

· Personal cultivation

· Any other use determined by the Planning Commission to be of the same character as other conditional uses

N/A

Community Commercial (C-C)

N/A · Bakeries, for on premises sale

· Drug store

· Nurseries for the propagation and/or sale of plants

· Any other use determined by the Planning Commission to be of the same character as other conditional uses

· Horticulture

Retail Dispensaries

The State is developing a licensing scheme for retail dispensaries and on or before January 1, 2018, will begin issuing licenses for the sale of non-medical cannabis. The Department of Consumer Affairs, which includes the new Bureau of Cannabis Control, will be the licensing agency for retail dispensaries. Retail sales will be both of plant-based products and products in the form of food, oil and beverages. As with cultivation, these retail dispensaries will not be within 600 feet of a school or child care center. In addition, the Department of Food and Agriculture is developing a “track and trace” identifier system to track each plant from cultivation to retail sale.

There are currently few proposed or existing cannabis retail dispensaries in San Mateo County. Most local communities have issued temporary moratorium bans on cannabis-related businesses while they assess the impact or wait for a more coordinated county-wide approach. Attachment 3 provides a listing of what steps other communities have taken to ban or regulate medical and non-medical cannabis. The exception to the ban and wait and see approach appears to be existing and proposed dispensaries in Pacifica and in larger cities such as San Francisco, Oakland and San Jose. Cities that allow dispensaries have placed caps on the number of dispensaries, limited the zoning districts in which they may be located, increased buffers from schools and required additional security measures. If the Council wishes to allow retail locations, it may wish

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to address these issues in a local cannabis ordinance.

Planning staff has reviewed the location where retail dispensaries would be possible by looking at its commercial zoning districts and the 600-foot radius from a school or child care center as required by the AUMA. There is one basic location (Nathhorst Triangle) and two zoning districts – community commercial and administrative professional -- in which retail dispensaries could be located. Below is a map showing the potential location for retail dispensaries and a chart identifying the permitted, conditional and accessary uses in these districts.

Retail Location Map

Retail Dispensaries

Zoning District Permitted Conditional Accessory

Community Commercial (C-C)

N/A · Bakeries, for on premisessale

· Drug store2

· Nurseries for thepropagation and/or sale of

· Horticulture

2 A “drugstore” is a “pharmacy” as defined under California Business and Professions (“B&P”) Code. Unless licensed as a pharmacy by the State of California pursuant to B&P Code Section 4001, a business may not call itself a “drugstore” and doing so would be a violation of B&P Code Section 4343. If a business wishes to operate a pharmacy/drugstore in the Town, it would first need to obtain a permit from the State of California Board of Pharmacy. The Board of Pharmacy does not license medical marijuana dispensaries as a “pharmacy” or “drugstore” because California law (as under Federal law) marijuana is a Schedule 1 controlled substance. Based on the foregoing, it would be inappropriate to characterize a dispensary as a drugstore for purposes of the zoning code.

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plants

· Any other use determined bythe Planning Commission tobe of the same character asother conditional uses

Administrative Professional (A-P)

N/A · Bakeries, for on premisessale

· Medical and dental clinics

· Drug store

· Nurseries for thepropagation and/or sale ofplants

· Any other use determined bythe Planning Commission tobe of the same character asother conditional uses

· Horticulture

None of these conditional uses is specific to cannabis. Nevertheless, there are some potential categories that could be open for interpretation. For example, because cannabis can be included in edibles, it is foreseeable that an applicant could come in for a use permit for a bakery with a focus on baked cannabis products. The zoning ordinance does not define a bakery. The general definition of a bakery is a place where bread and cakes are sold (but usually not containing Schedule 1 controlled substances). It is also foreseeable that the Planning Commission could be the decision maker (absent an appeal) relative to whether a cannabis retail use is a use of the same character as other conditional uses allowed by the zoning ordinance (e.g. a drug store or a convenience store). Rather than requiring staff and the Planning Commission to make complex interpretations on an ad hoc basis as to whether a particular cannabis operation fits within the definition of a conditional use under the Town’s zoning ordinance (which could be problematic for State licensing purposes as well), staff is recommending that the Council assert its legislative authority and specifically identify what cannabis uses are a conditional use and what, if any, specific requirements or regulations are appropriate for such uses (e.g. limit on number of retailers or standard conditions related to security).

Testing & Manufacturing

The Department of Public Health will be issuing licenses for manufacture and testing laboratories. Based on the current zoning ordinance, there are no locations in Town where testing and manufacturing would be allowed.

Delivery Services

A local agency may ban or regulate delivery businesses (the brick and mortar) within its boundaries, but may not ban a delivery service from using public streets to deliver cannabis products. Online research indicates several delivery services are currently

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operating around and have delivery available in Portola Valley. Fifty percent of all medical marijuana deliveries are done via a delivery service and that number is expected to increase. Deliveries can be made by a State licensed retailer. State law requires the customer requesting delivery (but not the business or driver) to maintain a copy of the delivery request, which after AB 133 can be electronic. While delivery service is banned in unincorporated San Mateo County, many communities do permit it and given that public streets may be used to deliver cannabis, a delivery ban would be difficult to enforce.

Taxation

Personal cultivation and use is exempt from taxation. Relative to commercial operations, State law imposes an excise tax at the rate of 15% of gross sales receipts and there are also restrictions on how the funds can be spent (e.g. law enforcement, research, etc.). This tax will be in addition to existing State and local sales tax. State and local sales tax can range from 5% to 10% depending on the jurisdiction. When the sales tax is combined with the excise tax, the total percentage tax could approach 25%at the retail level. Some are concerned that such high tax rates could incentivize retailers to enter the black market to avoid taxation. There is also a separate state cultivation tax on all cannabis harvested at a rate of $9.25 per dry weight ounce onbuds and flowers and $2.75 per dry weight on all leaves. If the Town wished to impose a tax, any Town imposed tax would be in addition to the above described taxes.

Interim Urgency Ordinance

Although the Town is required by SB 94 to provide a copy of any ordinance related to commercial cannabis activity to the State, it is not required to adopt an ordinance. Nevertheless, for ease of interpretation and to facilitate the will of the voters in a manner that is appropriate specifically for the Town and protects the health, safety and welfare of the Town’s citizens, staff is recommending that the Town Council adopt an interim urgency ordinance to prohibit cannabis land uses. This will also allow the Town adequate time to complete a process to create an ordinance specifically related to cannabis land uses. Doing so would allow the Town to be proactive rather than reactive to any State issued license or reactive to applications for conditional use permits. Furthermore, a temporary moratorium is appropriate since the State will begin issuing licenses on or before January 1, 2018 and there is inadequate time for the Town to complete a robust public process and adopt an ordinance with an effective date (ordinances require two readings and are not effective until 30 days after the second reading) prior to January 1, 2018.

State law (Government Code Section 65858) allows a Town to adopt an interim ordinance that prohibits otherwise allowed uses when those uses conflict with a land use proposal (e.g. zoning amendments) that the Town is considering, studying or intending to study within a reasonable period of time. An interim ordinance requires a four-fifths vote of the Council (if only four Council members are present, the vote must

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be unanimous) and must contain a finding that there is a current immediate threat to the public health, safety or welfare, and may be adopted without notice and adoption procedures required for other ordinances. The measure has an initial duration of 45 days and may be extended for an additional 10 months and 15 days after notice, including a written report issued ten days prior to the expiration of the interim ordinance describing the measures taken to alleviate the condition which led to the adoption of the ordinance, and a public hearing. Subsequently, the measure could be extended for another year. It would be possible to initially extend the interim ordinance for 22 months and 15 days (not for 10 months and 15 days and then another year) if 10-day advance public notice was provided prior to adoption of the interim urgency ordinance.

If adopted, the moratorium would be in place and then could be extended at the first meeting in December (alternatively a noticed moratorium could come back to the Council in December and then be extended at the first meeting in January for the longer duration). While the interim ordinance is in place, Town staff could develop a draft ordinance for consideration by the Architectural and Site Control Commission, the Planning Commission and the Town Council. Attachment 4 is an article by the League of California Cities, “Why Cities Should Get Moving on Their Cannabis Ordinance.”

Attachment 5 is an interim urgency ordinance prohibiting all cannabis related land uses, except those specifically allowed by State law (personal residential cultivation) and the use and delivery of medical marijuana as Staff is sensitive to the needs of patients under medical care.

Next Steps The interim urgency moratorium will provide the Town additional time to develop regulations and engage with the community about this issue through consideration of the draft cannabis ordinance. The Town could consider a survey of Town residents to these issues. The various committees if their expertise is relevant to any of the issues could provide input. Finally, the Architectural and Site Control Committee and the Planning Commission would hold hearing on the draft ordinance and make a recommendation to the Town Council, which is the final legislative approval body.

Attachments: 1. Town Attorney Staff Report dated December 9, 20162. 600’ Radius Map3. Other Local Agencies Actions Relative to Cannabis4. Why Cities Should Get Moving on Their Cannabis Ordinance5. Interim Urgency Ordinance of the Town Council of the Town of Portola Valley

Establishing a Temporary Moratorium on the Establishment of Marijuana UsesWithin the Town of Portola Valley

cc: Jeremy Dennis, Town Manager Debbie Pedro, Planning Director

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Cara Silver, Town Attorney

Reviewed by: Jeremy Dennis, Town Manager

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MEMORANDUM

TOWN OF PORTOLA VALLEY

TO: Honorable Mayor and Town Council

FROM: Leigh F. Prince, Town Attorney

DATE: December 9, 2016

RE: Control, Regulate, and Tax Adult Use of Marijuana Act

RECOMMENDATION: Review and consider information and ask clarifying questions regarding the Control, Regulate, and Tax Adult Use of Marijuana Act. Provide direction to staff relative to next steps and/or take action to adopt a moratorium.

BACKGROUND: On November 8, 2016, the voters of the State of California passed Proposition 64 or the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”).The AUMA took effect on November 9, 2016, the day after the election. While previous legislation (the Medical Marijuana Regulation and Safety Act) legalized the medical use of marijuana, the AUMA legalized the nonmedical use of marijuana. The AUMA makes it legal for persons 21 years of age or older to:

1. Smoke or ingest marijuana or marijuana products;2. Possess, process, transport, purchase, obtain or give away to persons of 21

years of age or older 28.5 grams of marijuana or eight grams of concentratedmarijuana, including as contained in marijuana products; and

3. Possess, plant, cultivate, harvest, dry or process up to six living marijuanaplants for personal use.

Marijuana in excess of 28.5 grams that is produced by plants kept pursuant to the personal cultivation provisions of the AUMA must be kept in a locked space on the grounds of a private residence that is not visible from a public place.

The first key element legalized by the AUMA is the personal cultivation of marijuana. Individuals may cultivate up to six plants for personal use. The level of regulation a local government may impose is divided into two categories—indoor cultivation and outdoor

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Page 14: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

Other Local Agency Regulation of Cannabis

Municipality Bans Dispensaries?

Bans commercial cultivation?

Restrictions on indoor personal marijuana cultivation?

Taxation Moratorium Other restrictions

Los Altos Yes – medical and commercial

Yes None No action at this time

Permanent – adopted in 2016

None

Los Altos Hills Yes – medical and commercial

Yes None No action at this time

Permanent – Adopted in 2016

None

Menlo Park Yes – medical and commercial

Yes No No action at this time

45 day while staff develops permanent regulations

Outdoor personal cultivation banned

Mountain View

No- staff drafting zoning changes to allow

Yes None at this time

Supportive and reviewing options

45 day as staff develops zoning/taxation regulations

None

Palo Alto October 30 meeting to consider moratorium

Oct 30 meeting

Oct 30 meeting

Oct 30 meeting

Oct 30 meeting N/A

Redwood City October 23 meeting

PCrecommended allowing medical dispensaries

October 23 meeting

October 23 meeting

October 23 meeting

Oct 23 meeting N/A

San Mateo Yes- medical No –commercial

No One year ending in N/A

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Page 15: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

County Upcoming vote on commercial

greenhouse growing allowed

December 2017

Santa Clara County

Yes - commercial Yes Yes- space issues, lighting

No action at this time

45 day, may be extended 2 years

None

Sunnyvale Yes – medical and commercial

Yes Yes – lighting, ventilation

None No Bans smoking within current smoking regulations

Woodside Yes- commercial Yes None No action at this time

45 day moratorium None

Staff reviewed current cannabis regulations in neighboring municipalities to understand each community’s approach. At

this time, Sunnyvale has banned all commercial cannabis activity, while four others have adopted 45 day moratoriums,

which may be further extended, to allow staff to further review potential options (and await the State’s final guidance). Two

more cities, Palo Alto and Redwood City, will be taking action in the coming weeks, and Palo Alto is expected to adopt a 45 day moratorium. San Mateo County is expected to take further action regarding dispensaries this fall as well.

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Page 16: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

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Page 17: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

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Page 18: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

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Page 19: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

ORDINANCE NO.

INTERIM URGENCY ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PORTOLA VALLEY ESTABLISHING A TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MARIJUANA USES WITHIN THE TOWN OF PORTOLA VALLEY

WHEREAS, on November 8, 2016, the voters of the State of California passed the Control, Regulate, and Tax Adult Use of Marijuana Act (“AUMA”) which took effect on November 9, 2016 and legalized the use of marijuana by persons 21 years of age or older, personal cultivation of up to six plants, and certain commercial activities;

WHEREAS, on June 26, 2017, Senate Bill 94 (“SB 94”) was signed by Governor Brown and became effective immediately. SB 94 blends together medical cannabis regulations (previously regulated under the Medical Cannabis Regulation and Safety Act) and the AUMA. SB 94 requires a local jurisdiction to provide a copy of any ordinance related to commercial cannabis activity to the State;

WHEREAS, all recreational cannabis businesses must have a State license. The AUMA indicates that the State of California shall develop on or before January 1, 2018 regulations and licensing for the cultivation, testing, manufacture, and sale of cannabis;

WHEREAS, the State cannot issue a license to an applicant whose operations would violate local law. The AUMA identifies areas where local governments have the opportunity to impose business and land use regulations on cannabis activities. Local agencies may ban personal outdoor cultivation and regulate personal indoor cultivation and commercial cannabis land uses;

WHEREAS, cannabis related land uses are a new and emerging use. There are a variety of issues for the Town to study and consider that could impact the community including, odor, water and electricity usage and the potential for criminal activity related to businesses that operate on a cash only basis. These and other zoning issues will impact the Town’s determination of where appropriate locations, if any, exist in the Town where cannabis uses would not be incompatible with surrounding land uses;

WHEREAS, the Town Council finds that it is necessary for Town staff, the Planning Commission, and the Town Council to have adequate time to thoroughly study, develop, and adopt regulations regarding medicinal and recreational cannabis uses in the Town of Portola Valley;

WHEREAS, a moratorium on all cannabis uses, except those specifically allowed by state law and the delivery of medicinal cannabis, will provide the Town adequate time to develop a comprehensive approach to cannabis, including participating in discussions with the County of San Mateo and other local cities

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Page 20: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

regarding developing a cohesive regional approach; and

WHEREAS, based on the findings above and in accordance with California Government Code Section 65858, the Town Council of the Town of Portola Valley finds and declares that this ban is necessary as the establishment of cannabis uses within the Town presents a current and immediate threat to public health, safety and welfare of the Town of Portola Valley.

NOW, THEREFORE, the Town Council of the Town of Portola Valley does ORDAIN as follows:

SECTION 1. With the exception of personal medical marijuana use, the personal indoor cultivation of six marijuana plants in accordance with and as allowed by state law and the delivery of medical marijuana, this ordinance prohibits the establishment of anywhere in the Town any and all cannabis or cannabis related land uses, including, but not limited to outdoor cultivation, commercial indoor cultivation, retail sales, or any other manufacturing, warehousing or distribution activity in any zoning district within the Town of Portola Valley.

SECTION 2. The moratorium described in Section 1 shall only apply to zoning and land use activities and is not intended to affect the personal right of persons over twenty-one years to possess up to 28.5 ounces of cannabis or 8 grams of concentrated cannabis or to smoke or ingest cannabis or cannabis products in accordance with State law.

SECTION 3. If any section of this ordinance, or part hereof, is held by a court of competent jurisdiction in a final judicial action to be void, voidable or enforceable, such section, or part hereof, shall be deemed severable from the remaining sections of this ordinance and shall in no way affect the validity of the remaining sections hereof.

SECTION 4. The Town Council hereby finds that this ordinance is not subject to the provisions of the California Environmental Quality Act (CEQA) because the activity is not a project as defined by Section 15378 of the CEQA Guidelines. The ordinance has no potential for resulting in physical change to the environment either directly or indirectly. Furthermore, pursuant to Section 15060(c)(2) of the CEQA Guidelines, the activity will not result in a direct and reasonably foreseeable indirect physical change in the environment because this ordinance prevents changes in the environment pending the contemplated review of possible additions or amendments to the Town of Portola Valley Municipal Code.

SECTION 5. This ordinance is declared to be an urgency measure adopted pursuant to the provisions of Government Code Section 65858. As set forth in the findings above, this ordinance is necessary for preserving the public safety, health, and welfare. Pursuant to Government Code Section 65858, this ordinance is effective immediately and shall be in full force and effect for 45 days from the date of its adoption. After notice pursuant to California Government Code Section 65090 and a public hearing, the Town Council by four-fifths vote, may extend the effectiveness of this ordinance for 10 months

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Page 21: TOWN OF PORTOLA VALLEY - | Almanac Onlinecannabis regulations in the Town of Portola Valley, and adopt a 45-day interim urgency ordinance prohibiting all commercial cannabis land uses

and 15 days and subsequently for one additional year.

SECTION 6. This Town Clerk shall cause this ordinance to be published in a newspaper of general circulation as required by state law.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

By:

________________________

Mayor

ATTEST:

Town Clerk

APPROVED AS TO FORM:

Town Attorney

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