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TOWN OF LOS ALTOS HILLS January 6, 2016
Staff Report to the Planning Commission
SUBJECT: AMENDMENTS TO THE ZONING ORDINANCE PROHIBITING THE
ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES, MEDICAL
MARIJUANA OR CANNABIS CULTIVATION, INCLUDING PERSONAL
CULTIVATION, ALL MEDICAL MARIJUANA OR CANNABIS
COMMERCIAL OPERATIONS, AND MEDICAL MARIJUANA OR
CANNABIS DELIVERIES WITHIN THE TOWN LIMITS; FILE#438-15-MISC
FROM: Steve Padovan, Consultant Planner
APPROVED: Suzanne Avila, AICP, Planning Director 5 `
RECOMMENDATION:
That the Planning Commission:
Review the staff report and draft ordinance prohibiting medical marijuana dispensaries,
cultivation, deliveries, and all commercial operations within Town limits, consider any revisions
to the ordinance, and forward a recommendation to the City Council to adopt the ordinance
(Attachment 1).
BACKGROUND
On October 9,2015, California State Assembly Bills 243 and 266 and Senate Bill 643 (collectively
known as the Medical Marijuana Regulation and Safety Act or MMRSA) were signed into law
establishing a regulatory framework for the production, transportation, and sale of medical
marijuana in the state. These laws create new standards for doctors when prescribing medical
marijuana to patients (SB 643), create regulations for the licensing and sale of cannabis (AB 266),
and regulate the cultivation and processing of marijuana (AB 243). Under the MMRSA, local
agencies will continue to retain the ability to regulate medical marijuana cultivation, operations
and deliveries within their jurisdictions, including the authority to prohibit all medical marijuana
operations. However, if a local agency does not have land use regulations or an ordinance
regulating or prohibiting the cultivation of medical marijuana in place, either expressly or under
the principles of permissive zoning, by March 1, 2016, the State will become the sole licensing
authority for medical marijuana cultivation in Los Altos Hills.
DISCUSSION
Under Section 10-1.309(a) of the Los Altos Hills Municipal Code ("LAHMC"):
"Land or structures in any district shall hereafter be used only for the purposes listed in this
chapter as permitted in that district, and in accordance with the regulations established by
Staff Report to the Planning Commission
Medical Marijuana Regulations
January 6,2016
Page 2 of 3
this chapter for that district, and in accordance with any conditions and requirements which
may have been established in connection with the authorization of any variance or the
granting of any conditional use permit."
This code section establishes the Town's permissive zoning principles by stating that any use not
listed as permitted or conditionally permitted in a zoning district cannot be established or operate
within that district. This would prohibit the establishment of commercial medical marijuana
dispensaries, medical offices serving medical marijuana patients, and the processing of the
marijuana plants beyond growing and harvesting. However, the Town's two zoning districts,
Residential Agricultural (R-A) and Open Space Reserve (OSR), do allow "agriculture" as a
permitted use.
"Agriculture" is defined in section 10-1.202 of the LAHMC as "animal husbandry, livestock
farming, flower growing, crop and tree farming, and viticulture." Being that the Town has no
other regulations regarding the growing and cultivation of marijuana,that type of operation would
likely fall under crop farming and thus be a permitted use in the two zoning districts. In addition,
the Town has no procedures for licensing medical marijuana farmers nor any
regulations on cultivation. Consequently, based on the MMRSA, if the Town takes no action, the
task of licensing would be controlled by the State as of March 1, 2016. The proverbial window
would close and the Town would no longer have the authority to license or likely prohibit these
operations.
Therefore, in order to maintain local control, staff is recommending that the Town amend the
LAHMC to prohibit the cultivation of marijuana and prohibit the establishment of medical
marijuana dispensaries, commercial operations, and deliveries. The reasoning for the outright
prohibition on medical marijuana commercial activity and personal cultivation is based on the
following:
- The time frame for the Town to develop, adopt and enact new regulations on marijuana
cultivation is not adequate (must be in effect by March 1, 2016), as the typical ordinance
adoption process takes several months;
- There have been no requests by residents to establish medical marijuana operations in the
Town;
- The prohibition can be enacted quickly and does not prevent the Town from modifying its
regulations on medical marijuana in the future (although any new regulations would be
required to comply with the regulatory guidelines outlined in the MMRSA);
- Taking no action will result in the State becoming the sole licensing authority for medical
marijuana cultivation and the Town relinquishing its authority to permit or prohibit those
types of medical marijuana operations.
Proposed Amendments
In order to prohibit medical marijuana operations, the following amendments to the LAHMC are
proposed:
Staff Report to the Planning Commission
Medical Marijuana Regulations
January 6,2016
Page 3 of 3
1) New definitions for Cannabis, Cannabis cultivation, Cannabis delivery operations,
Commercial cannabis activity, and Dispensary will be added to Section 10-1.202 of the
LAHMC;
2) Section 10-1.701, "Primary uses permitted (R-A)," subsection (b) "Agriculture", will be
amended to read, "Agriculture, except those uses identified as prohibited under Section
10-1.706."
3) The addition of Section 10-1.706, "Prohibited uses." with the following language: "The
following uses are prohibited in the Residential Agricultural District: (a) Medical
marijuana or cannabis cultivation, including cultivation for personal use; (b) All
commercial medical marijuana or cannabis activities; (c) Medical marijuana or
cannabis dispensaries; (d) Processing of medical marijuana or cannabis; (e) Medical
marijuana or cannabis delivery operations, including deliveries from non-resident
medical marijuana or cannabis operations to any location within the Town.";
4) Section 10-1.801, "Primary uses permitted (OSR)" subsection (a) "Agricultural uses,
including horticulture and grazing", will be amended to read, "Agricultural uses,
including horticulture and grazing except those uses identified. as prohibited under
Section 10-1.804."
5) The addition of Section 10-1.804, "Prohibited uses." with the following language: "The
following uses are prohibited in the Open Space Reserve District: (a)Medical marijuana
or cannabis cultivation, including cultivation for personal use; (b) All commercial
medical marijuana or cannabis activities; (c) Medical marijuana or cannabis
dispensaries; (d) Processing of medical marijuana or cannabis; (e) Medical marijuana
or cannabis delivery operations, including deliveries from non-resident medical
marijuana or cannabis operations to any location within the Town.";
CEQA STATUS
The project is categorically exempt from the provisions of the California Environmental Quality
Act (CEQA)pursuant to Section 15061(b)(3) of the CEQA Guidelines, because it can be seen
with certainty that there is no possibility that the ordinance will have a significant effect on the
environment.
ATTACHMENTS
1. Draft Ordinance to the Los Altos Hills Municipal Code amending Sections 10-1.202, 10-
1.701(b) and 10-1.801(a) and adding Sections 10-1.706 and 10-1.804
2. League of California Cities Summary on Medical Marijuana Regulation and Safety Act
ATTACHMENT 1
ORDINANCE
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING
SECTIONS 10-1.202, 10-1.701 AND 10-1.801 AND ADDING SECTIONS 10-
1.706 AND 10-1.804 TO THE LOS ALTOS HILLS MUNICIPAL CODE
PROHIBITING THE ESTABLISHMENT OF MEDICAL MARIJUANA
DISPENSARIES, MEDICAL MARIJUANA OR CANNABIS CULTIVATION,
INCLUDING PERSONAL CULTIVATION, ALL COMMERCIAL MEDICAL
MARIJUANA OR CANNABIS ACTIVITIES, AND MEDICAL MARIJUANA
OR CANNABIS DELIVERY OPERATIONS WITHIN THE TOWN LIMITS
WHEREAS, in 1996, the voters of the State of California approved Proposition 215
(known as the Compassionate Use Act("CUA")), adding section 11362.5 to the California Health
& Safety Code; and
WHEREAS, on January 1, 2004, the State Legislature enacted the "Medical Marijuana
Program" ("MMP"), codified as Health & Safety Code sections 11362.7 to 11362.83, clarifying
the scope of the CUA and establishing a voluntary program for identification cards issued by
counties for qualified patients and primary caregivers, and provide criminal immunity to qualified
patients and primary caregivers for certain activities involving medical marijuana, including the
collective or cooperative cultivation of medical marijuana; and
WHEREAS, the California Supreme Court ruled unanimously in City of Riverside v.
Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Ca1.4th 729,that the CUA and
the MMP do not preempt local ordinances that completely and permanently ban medical marijuana
dispensaries, collectives, and cooperatives; and
WHEREAS, in Maral v. City of Live Oak(2013) 221 Cal.App.4th 975, the Third District
Court of Appeal held, based on Inland Empire, that there was no right to cultivate medical
marijuana and that a city could implement and enforce a complete ban on this activity, including
a ban on personal cultivation; and
WHEREAS, on October 9, 2015, Governor Brown signed Assembly Bills 243 and 266
and Senate Bill 643 (collectively known as the Medical Marijuana Regulation and Safety Act or
"MMRSA"), which taken together create a broad state regulatory and licensing system governing
the cultivation, testing, and distribution of medical marijuana, the manufacturing of marijuana
products, and physician recommendations for medical marijuana, and provide immunity to
marijuana businesses operating with both a state license and a local permit; and
WHEREAS, while the new legislation expressly preserves local control over medical
marijuana facilities and land uses, including the authority to prohibit all medical marijuana
businesses and cultivation, newly-added Health & Safety Code section 11362.777, subdivision
(c)(4) provides that if a city does not have a land use regulation or ordinance regulating or
prohibiting marijuana cultivation in place, either expressly or otherwise under principles of
permissive zoning, or chooses not to administer a conditional permit program under that section,
then, commencing March 1, 2016, the State Department of Food and Agriculture will become the
sole licensing authority for marijuana cultivation in that jurisdiction; and
WHEREAS, medical marijuana and cannabis businesses, dispensaries, commercial
operations, and delivery operations are not listed in the Zoning Code as either permitted or
conditionally permitted land uses and are, therefore, prohibited under the Town's permissive
zoning provisions,as set forth in Section 10-1.309, subdivision(a)of the Los Altos Hills Municipal
Code; and
WHEREAS, "agriculture" is defined in the Los Altos Hills Municipal Code as "animal
husbandry, livestock farming, flower growing, crop and tree farming, and viticulture" and is a
permitted use throughout the Town, and the growing and cultivation of medical marijuana or
cannabis could be classified as "crop farming;" and
WHEREAS, many California communities have experienced adverse impacts and
negative secondary effects from medical marijuana establishments and cultivation sites, including
hazardous construction, unsafe electrical wiring, noxious odors and fumes affecting neighboring
properties and businesses, increased crime in and around such land uses, and the diversion of
medical marijuana to minors; and
WHEREAS, it is reasonable to conclude that medical marijuana dispensaries, marijuana
cultivation facilities, commercial medical marijuana or cannabis activities, and medical marijuana
deliveries could cause similar adverse impacts on the public health, safety, and welfare of the
residents of the Town of Los Altos Hills; and
WHEREAS, it is in the interests of the health, safety, and welfare of the residents of the
Town of Los Altos Hills to prohibit, in express terms, medical marijuana and cannabis
dispensaries, cultivation, commercial activities, and delivery services; and
WHEREAS, the City Council of the Town of Los Altos Hills finds that this project is
exempt from California Environmental Quality Act (CEQA) pursuant to "general exemptions"
described in Section 15061(b)(3) of the CEQA Guidelines, since the ordinance would not have
any significant effects on the environment.
NOW, THEREFORE, the City Council of the Town of Los Altos Hills does hereby
ORDAIN as follows:
SECTION I. FINDINGS.
Based on the entirety of the record as described above, the City Council for the Town of
Los Altos Hills hereby makes the following findings:
1. The foregoing recitals are true and correct and made a part of this Ordinance.
2. This project is exempt from California Environmental Quality Act (CEQA)
pursuant to "general exemptions" described in Section 15061(b)(3)of the CEQA Guidelines, since
the ordinance would not have any significant effects on the environment.
3. The proposed Zoning Ordinance amendments are consistent with the adopted
General Plan because the prohibited uses are not compatible with the low density, semi-rural
atmosphere of the community.None of the amendments will conflict with or impede achievement
of any of the objectives, goals, policies,programs, or general land use designations established in
the General Plan and are compatible with such General Plan objectives,policies, general land uses,
and programs.
SECTION II. AMENDMENTS.
The City Council hereby amends the following sections of the Los Altos Hills Municipal Code to
read as follows (with additions indicated in double underline). Sections and subsections that are
not amended by this ordinance are not included below, and shall remain in full force and effect.
1. Section 10-1.202 Designated. is hereby amended:
Accessory use or accessory structure means a subordinate use or subordinate structure
customarily incident to and located on the same lot or parcel with the primary use.
Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin,whether crude or
purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means
the separated resin, whether crude or purified, obtained from marijuana. "Cannabis" also
means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by
Chapter 1407 of the Statutes of 1972. "Cannabis" 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 the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant
which is incapable of germination. For the purpose of this chapter, "cannabis" does not
mean"industrial hemp"as defined by Section 81000 of the Food and Agricultural Code or
Section 11018.5 of the Health and Safety Code.
Cannabis cultivation means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis.
Cannabis delivery operations means the commercial transfer of medical cannabis or
medical cannabis products from a dispensary, up to an amount determined by the Bureau
of Medical Marijuana Regulation to a primary caregiver or qualified patient as defined in
Section 11362.7 of the California Health and Safety Code, or a testing laboratory.
"Delivery" also includes the use by a dispensary of any technology platform owned and
controlled by the dispensary, or independently licensed under the state that enables
qualified patients or primary caregivers to arrange for or facilitate the commercial transfer
by a licensed dispensary of medical cannabis or medical cannabis products.
Commercial cannabis activity includes cultivation, possession,manufacture,processing,
storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis
or a medical cannabis product.
Dispensary means a facility where medical cannabis, medical cannabis products, or
devices for the use of medical cannabis or where medical cannabis products are offered,
either individually or in any combination, for retail sale, including an establishment that
delivers, pursuant to express authorization by local ordinance, medical cannabis and
medical cannabis products as part of a retail sale.
2. Section 10-1.701 Primary uses permitted (R-A). is hereby amended:
Section 10-1.701 Primary uses permitted (R-A).
The following primary uses shall be permitted in the Residential-Agricultural District:
(a) Primary dwellings; and
(b) Agriculture, except those uses identified as prohibited under Section 10-1.706.
3. Section 10-1.801 Primary uses permitted (OSR). is hereby amended:
Section 10-1.801 Primary uses permitted (OSR).
The following primary uses shall be permitted in the Open Space Reserve District:
(a) Agricultural uses, including horticulture and grazing, except those uses identified
as prohibited under Section 10-1.804.
(b) Forest preserves; and
(c) Other open space uses.
4. Section 10-1.706 Prohibited uses. is hereby added to read as follows:
Section 10-1.706 Prohibited uses.
The following uses are prohibited in the Residential-Agricultural District (R-A):
a Medical marIuana or cannabis cultivation includin• cultivation for .ersonal use.
(b) All commercial medical marijuana or cannabis activities;
(c) Medical marijuana or cannabis dispensaries:,
(d) Processing of medical marijuana or cannabis;
(e) Medical marijuana or cannabis delivery operations, includin• deliveries from non-
resident medical marijuana or cannabis operations to any location within the Town.
5. Section 10-1.804 Prohibited uses. is hereby added to read as follows:
Section 10-1.804 Prohibited uses.
The following uses are prohibited in the Open Space Reserve District (OSR):
(a) Medical marijuana or cannabis cultivation, including cultivation for personal use;
(b) All commercial medical marijuana or cannabis activities:,
(c) Medical marijuana or cannabis dispensaries;
(d) Processing of medical marijuana or cannabis;
(e) Medical marijuana or cannabis delivery operations, including deliveries from non-
resident medical marijuana or cannabis operations to any location within the Town.
SECTION III. SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstance
is held invalid or unconstitutional, the remainder of this ordinance, including the application of
such part or provision to other persons or circumstances shall not be affected thereby and shall
continue in full force and effect. To this end, provisions of this ordinance are severable. The City
Council of the Town of Los Altos Hills hereby declares that it would have passed each section,
subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that
any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be
held unconstitutional, invalid, or unenforceable.
SECTION IV. EFFECTIVE DATE AND PUBLICATION.
This ordinance shall take effect thirty (30) days after adoption. Within fifteen days after
the passage of this ordinance the City Clerk shall cause this ordinance or a summary thereof to be
published once, with the names of those City Councilmembers voting for or against it in a
newspaper of general circulation in the Town of Los Altos Hills, as required by law.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
BY:
Mayor
ATTEST:
City Clerk
APPROVED AS TO FORM:
City Attorney
' League of California Cities - Medical Marijuana • Page 1 of 3
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Home > Policy&Advocacy> Hot Issues > Medical Marijuana
Medical Marijuana Regulation and Safety Act
Background ; Resources In the News - Ordinances
In a historic move, Gov.Jerry Brown signed a comprehensive package of bills to establish a
regulatory structure around the state's multi-billion dollar medical marijuana industry. For
the first time since voters passed Proposition 215 in 1996, multiple stakeholders including
local government, law enforcement, unions and portions of the industry, came to an
agreement on what the regulatory structure should look like. Together, AB 266, AB 243,
and SB 643 comprise the Medical Marijuana Regulation & Safety Act.
AB 243 (Wood) Medical Marijuana
• Places the Department of Food and Agriculture (DFA) in charge of licensing and
regulation of indoor and outdoor cultivation sites. Creates a Medical Cannabis
Cultivation Program within the department.
Mandates the Department of Pesticide Regulation (DPR) to develop standards for
pesticides in marijuana cultivation, and maximum tolerances for pesticides and
other foreign object residue.
• Mandates the Department of Public Health (DPH)to develop standards for
production and labelling of all edible medical cannabis products.
• Assigns joint responsibility to DFA, Department of Fish and Wildlife (DFW), and the
State Water Resources Control Board (SWRCB) to prevent illegal water diversion
associated with marijuana cultivation from adversely affecting California fish
population.
• Specifies that DPR, in consultation with SWRCB, is to develop regulations for
application of pesticides in all cultivation.
o Specifies various types of cultivation licenses.
o Directs the multi-agency task force headed by DFW and SWRCB to expand its
existing enforcement efforts to a statewide level to reduce adverse impacts of
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^ League of California Cities - Medical Marijuana Page 2 of 3
marijuana cultivation, including environmental impacts such as illegal discharge
into waterways and poisoning of marine life and habitats.
AB 266 (Bonta, Cooley.Jones-Sawyer, Lackey, Wood) Medical Marijuana
Protects local control as it establishes a statewide regulatory scheme, headed by
the Bureau of Medical Marijuana Regulation (BMMR)within the Department of
Consumer Affairs (DCA).
• Provides for dual licensing: state will issue licenses, and local governments will
issue permits or licenses to operate marijuana businesses, according to local
ordinances. State licenses will be issued beginning in January 2018.
• Revocation of a local license or permit will unilaterally terminate the ability of the
business to operate in that jurisdiction.
• Expressly protects local licensing practices, zoning ordinances, and local
constitutional police power. •
• Caps total cultivation for a single licensee at four acres statewide, subject to local
ordinances.
• Requires local jurisdictions that wish to prevent delivery services from operating
within their borders to enact an ordinance affirmatively banning this activity. No
specific operative date for the ban is specified.
• Specifies that DCA will issue the following licenses: Dispensary, Distributor,
Transport, and Special Dispensary Status for licensees who have a maximum of
three dispensaries. Specifies various sub-categories of licensees (indoor
cultivation, outdoor cultivation, etc.)
o Limits cross-licensing to holding a single state license in up to two separate
license categories, as specified. Prohibits medical marijuana licensees from also
holding licenses to sell alcohol. •
• Grandfathers in vertically integrated businesses (i.e. businesses that operate and •
control their own cultivation, manufacturing, and dispensing operations) if a local
ordinance allowed or required such a business model and was enacted on or
before July 1, 2015. Also requires such businesses to have operated in compliance
with local ordinances, and to have been engaged in all the covered activities on
July 1, 2015.
• Requires establishment of uniform health and safety standards, testing
standards, and security requirements at dispensaries and during transport of the
product.
o Specifies a standard for certification of testing labs, and specified minimum
testing requirements. Prohibits testing lab operators from being licensees in any
other category, and from holding a financial or ownership interest in any other
category of licensed business.
• Includes a labor peace agreement under which unions agree not to engage in
strikes, work stoppages, etc. and employers agree to provide unions reasonable
access to employees for the purpose of organizing them. Specifies that such an
agreement does not mandate a particular method of election.
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League of California Cities - Medical Marijuana Page 3 of 3
• Provides for civil penalties for unlicensed activity, and specifies that applicable
criminal penalties under existing law will continue to apply. •
• Specifies that patients and primary caregivers are exempt from the state licensing
requirement, and provides that their information is not to be disclosed and is •
confidential under the California Public Records Act.
• Phases out the existing model of marijuana cooperatives and collectives one year
after DCA announces that state licensing has begun.
• Preserves enforcement authority of the city of Los Angeles with respect to
Measure D, the local regulatory structure for medical marijuana within the city
limits.
SB 643 (McGuire) Medical Marijuana
• Directs the California Medical Board to prioritize investigation of excessive
recommendations by physicians.
• Imposes fines ($5000.00) against physicians for violating prohibition against
having a financial interest in a marijuana business.
u Recommendation for cannabis without a prior examination constitutes
unprofessional conduct.
• Imposes restrictions on advertising for physician recommendations.
Places DFA in charge of cultivation regulations and licensing, and requires a track
and trace program.
• Codifies dual licensing(state license and local license or permit), and itemizes
disqualifying felonies for state licensure.
• Places DPR in charge of pesticide regulation; DPH in charge of production and
labelling of edibles.
• Upholds local power to levy fees and taxes.
In 2014, the League and the California Police Chiefs Association cosponsored SB 1262 by
Sen. Lou Correa (D-Santa Ana).
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