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HomeMy WebLinkAboutStaff Report 4.A 01/04/2016DATE: January 4, 2016 Agenda Item #4.A TO: Honorable Mayor and Members o the City Council through City Manager I FROM: Patrick Williams, Police Chie Eric Danly, City Attorney I SUBJECT: Introduction of an Ordinance Amending Chapter 10. 15, "Medical Marijuana," of Title 10 Peace, Safety, and Morals, Part III, Offenses Against Public Health and Safety, of the City of Petaluma Municipal Code, which Prohibits Dispensaries in the City, to Also Prohibit Specified Commercial Cannabis Activity, Cultivation and Delivery of Medical Marijuana in the City of Petaluma RECOMMENDATION It is recommended that the City Council introduce the attached Ordinance Amending Chapter 10.15, "Medical Marijuana," of Title 10 Peace, Safety, and Morals, Part III, Offenses Against Public Health and Safety, of the City of Petaluma Municipal Code, which Prohibits Dispensaries in the City, to Also Prohibit Specified Commercial Cannabis Activity, Cultivation and Delivery of Medical Marijuana in the City of Petaluma. BACKGROUND The issue of cultivating marijuana in Petaluma arises frequently, in requests for permitting from those who are interested in conducting commercial cultivation; interest shown by individuals who want to cultivate for personal medicinal use; in public safety incidents that include electrical fires or ignition of chemical substances utilized in the cultivation process; from crimes occurring at grow sites; and from neighborhood concerns regarding odors, late night traffic, and related nuisances. Accordingly, the City Council has indicated interest in discussing the subject of marijuana cultivation. On September 23, 2015, the City Council conducted a workshop to consider staff recommendations for regulations that would prohibit the cultivation of marijuana in the City, except for limited cultivation for medical purposes in areas zoned for residential use. The City Council provided additional guidance to staff, and asked that a revised ordinance be returned for further City Council consideration and approval. In 1970, Congress enacted the Controlled Substance Act (CSA) which, among other things, makes it illegal to import, manufacture, distribute, possess, or use marijuana in the United States. Marijuana is still illegal under federal law as it exists today. In 1996, the voters of the State of California approved Proposition 215, which is codified as Health and Safety Code Section 11362.5, et seq., entitled "The Compassionate Use Act of 1996" ("CUA"), which creates a limited exception from criminal liability for seriously ill persons who are in need of medical marijuana for specified medical purposes and who obtain and use medical marijuana under limited, specified circumstances. Proposition 215 expressly anticipates the enactment of additional local legislation. It provides: "Nothing in this section shall be construed to supersede legislation prohibiting persons from engaging in conduct that endangers others, nor to condone the diversion of marijuana for non-medical purposes" (Health and Safety Code Section 11362.5(b)(2)). On January 1, 2004, the Legislature adopted Senate Bill 420, known as the Medical Marijuana Program ("MMP"), which was codified in Health and Safety Code Sections 11362.7 through 11362.83. The MMP establishes the term "qualified patient," defined as a person whose physician has recommended the use of marijuana to treat a serious illness or any other illness for which marijuana provides relief. (Health and Safety Code, §11362.7(f); see also §11362.5(b)(1)(a)) The MMP also establishes the term "primary caregiver," defined as a person who is designated by a qualified patient and "has consistently assumed responsibility for the housing, health, or safety" of the patient." (Health and Safety Code, §1 1362.7(d); see also §11362.5(e)) Qualified patients and primary caregivers for qualified patients have immunity from state criminal liability for possession of marijuana. (Health and Safety Code, § 11362.7(e)) On January 21, 2007, the City Council adopted Ordinance No. 2269 N.C.S., adding Chapter 10.15 to the Municipal Code, which prohibited dispensaries within Petaluma City limits. The ordinance was written to protect residents from the secondary impacts associated with dispensaries, such as illegal sales, loitering, fraud, assaults and other crimes, and to prevent increased demands for police response resulting from those activities. Chapter 10.15 did not address marijuana cultivation. Following enactment of the CUA and MMP, there was extensive litigation regarding the extent that cities and counties could regulate medical marijuana. In 2013, the California Supreme Court finally settled the issue of dispensary bans. In City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc., (2013) 56 Cal.4th 729, the California Supreme Court held that cities have the authority under their land use and police powers to restrict, limit or entirely exclude facilities that distribute medical marijuana and to enforce such policies by nuisance actions. In the same year, following the Riverside case, the Third District Court of Appeal held in Maral v. City of Live Oak, (2013) 221 Cal.App.4th 975 that cities have the authority to ban marijuana cultivation within their boundaries. Thus, it is now settled that California cities have the authority to ban both marijuana dispensaries and cultivation under the law as it exists today. Recently three bills, AB 243, AB 266, and SB 643, collectively entitled the "Medical Marijuana Regulation and Safety Act" ("MMRSA") were signed by the Governor. The three bills were triple joined and signed as a package. The legislation creates a statewide regulatory and licensing program covering a broad range of medical marijuana related activities, including cultivation, commercial cannabis activity, transport, delivery, and physician recommendations of medical marijuana. In some ways the new medical marijuana regulatory scheme is similar to that governing alcohol, with the state licensing distributers/retailers, and local governments retaining some local control through exercise of their police powers. AB 243, part of the MMRSA regulating medical marijuana cultivation, prohibits in Health and Safety Code Section 11362.777, subdivision (b), cultivating medical marijuana without first obtaining both a permit from the local jurisdiction in which the cultivation will occur, and a state 2 license. Under this subdivision, if a local jurisdiction does not have land use regulations or ordinances regulating marijuana cultivation in effect by March 1, 2016, the state will be the sole licensing authority for medical marijuana cultivation in that jurisdiction. Apparently, the March 1 deadline remained in the final draft of the legislation by mistake, and Assemblyman Wood, the bill's author, will be introducing urgency legislation to delete the deadline. However, the urgency amendment is not expected to take effect prior to the current March 1 deadline. Unless/until the March 1 deadline is removed, local agencies that do not have medical marijuana cultivation regulations in effect prior to that time will be unable to regulate medical marijuana cultivation. Subdivision (g) of Section 11362.777 creates an exception from state licensing requirements for qualified patients cultivating marijuana in cultivation areas that do not exceed 100 square feet for their personal medical use and not for sale, distribution, donation, or provision to any other person or entity, and for primary care givers cultivating marijuana in cultivation areas that do not exceed 500 square feet exclusively for the personal medical use of not more than five specified qualified patients for whom they act as primary caregivers without compensation except as permitted by law. This exception in the MMRSA is important for local jurisdictions like Petaluma that are considering banning medical marijuana cultivation, subject to an exception for qualified patients and primary caregivers, because it excuses eligible qualified patients and primary caregivers from obtaining state cultivation licenses, which they would be unable to obtain without a local permit. City staff has advised against issuing medical marijuana permits, because marijuana remains illegal under federal law. So far the City Council has indicated no intention to issue local medical marijuana permits. Without the exception in subdivision (g) of Section 11362.777, the City would need to issue local permits for qualified patients and primary care givers to be able to cultivate medical marijuana without violating state law. Section 11362.777 also provides in subdivision (g) that the exemption in that section does not prevent local jurisdictions from regulating or banning the cultivation, storage, manufacture, transport, provision or other activity by exempt persons, or impair the enforcement of such regulations or bans. In other words, the MMRSA expressly permits local agencies like Petaluma to ban local cultivation of medical marijuana altogether, regardless of the exception for qualified patients and primary caregivers in subdivision (g). If the City adopts a cultivation ban that includes an exception for qualified patients and primary caregivers, the City can ban all marijuana cultivation in the City, except that of qualified patients and primary caregivers in accordance with the ordinance requirements, and eligible patients and primary caregivers can as a result avoid violating local and state cultivation regulations. AB 266, part of the MMRSA regulating commercial cannabis activity such as manufacturing, distributing, processing, storing, testing, labeling, transporting, or selling medical cannabis or medical cannabis products, provides in Business and Professions Code Section 19315, Subdivision (a), that nothing in that chapter shall be interpreted to supersede or limit existing local authority for law enforcement activity, enforcement of local zoning requirements or local ordinances, or enforcement of local permit or licensing requirements. AB 266 provides in Business and Professions Code Section 19340, subdivision (a) that medical marijuana deliveries as defined can only be made by a dispensary and in a local jurisdiction that does not explicitly prohibit it by a local ordinance. Together, these MMRSA provisions recognize the authority of local jurisdictions to ban or otherwise regulate commercial cannabis activity like marijuana processing, as well as local delivery of medical marijuana. SB 643, part of the MMRSA regulating physician cannabis recommendations and commercial cannabis activity provides in 3 subdivision (a) of Section 19319 of the Health and Safety Code that qualified patients and primary caregivers as defined are exempt from the licensing requirements under that chapter. These statutes provide a legal basis for the City to ban commercial cannabis activity and marijuana delivery while excluding from the ban delivery to qualified patients and primary caregivers that is consistent with the ordinance. If the City adopts commercial cannabis and delivery bans that include an exception for qualified patients and primary caregivers, they can avoid violating local and state commercial cannabis and delivery regulation. On November 6, 2015, staff from the Police Department met with representatives of the Sonoma Alliance for Medical Marijuana (SAMM), the Sonoma County Growers Alliance (SCGA), and Americans For Safe Access (AFSA). All three local organizations provide support services for MMP patients. They expressed interest in working with the City to develop local regulations. The dialogue was productive and they appreciated the work by staff to address nuisance issues while respecting patient rights. After review of the proposed ordinance they asked that we consider the following: They requested the City of Petaluma follow the same local regulations adopted by the County of Sonoma. Removal of the restriction limiting the indoor cultivation areas that are not locally prohibited to 50% of the non -living or garage area of a residence. Provision of a permit process to benefit from the local tax revenue. Medical marijuana laws can be used by subjects in Petaluma to skirt the law and to grow marijuana illegally -for commercial sale. This is typically achieved by subjects obtaining Proposition 215 cards from multiple medical marijuana patients and using these cards to grow additional marijuana for commercial sale. The unclear distinction between medical and illegal commercial cultivation and the lack of regulation for medical marijuana cultivation creates difficulties for law enforcement and the community by: 1) enabling large indoor cultivation areas in homes which reduces the quality and quantity of housing; 2) increasing building and fire code violations, thus exposing residents and neighbors to potential hazards and endangering first responders; 3) exposing residents to health hazards from mold and water damage; 4) creating increased nuisance conditions in neighborhoods; and 5) increasing other illegal activities such as the frequency of home invasion robberies, gun use, and a loss of a neighborly community. Recent trends indicate an increase in the use of homes in Petaluma for cultivation for illegal commercial sale, including: • Of the more than 30 community town hall meetings held since 2013, marijuana cultivation in neighborhoods has remained one of the top five neighborhood complaints made by the residents of Petaluma. • Complaints from property owners who have rented their homes, and have subsequently discovered that the renters have converted their homes to indoor marijuana grows. • A significant increase in home invasion robberies. Recent attacks have involved guns and assaults. • An increase in the number of complaints from neighbors about indoor or outdoor grows. M On November 16, 2015, the Petaluma City Council considered, for introduction and first reading, a draft ordinance prepared in response to its September guidance. That draft created a single exception to a ban on cultivation: qualified individuals could utilize up to 100 square feet of non- living, indoor space, at their residence. That exception would allow cultivation inside a house, or in an enclosed ancillary structure, such as a garden shed, as long as the structure consisted of opaque walls, a roof, and has a door with a lock. Based on testimony provided at the public meeting, and similar correspondence, the City Council provided further direction related to outdoor cultivation. A majority of the Council members were also in favor of excluding from the City's cultivation ban limited outdoor cultivation for qualified patients and primary caregivers consisting of up to three mature plants that can be cultivated outdoors, as part of the 100 square foot maximum. The timing of State legislation was also discussed, with respect to completing Petaluma's regulatory changes so that they will take effect prior to March 1, 2016. Subsequently, on December 1, 2015, the Fifth District Court of Appeal issued its opinion in Kirby v. County of Fresno, (2015), which upheld a county ordinance banning medical marijuana dispensaries, cultivation and storage, but invalidated the ordinance's classification of local medical marijuana cultivation as a misdemeanor. The court held that Section 11362.71 of the MMP preempts local criminalization of medical marijuana cultivation. Although the court in Kirby v. County of Fresno invalidated on preemption grounds the local criminalization of medical marijuana cultivation as a misdemeanor, the court noted that local prosecution of the failure to abate a public nuisance involving medical marijuana cultivation is not preempted, because the Legislature recognizes the failure to abate a public nuisance after notice as a separate crime. The attached ordinance is consistent with the holding in Kirby, as is the existing Chapter 10.15 of the Petaluma Municipal Code, by defining violations of the chapter to be public nuisances. DISCUSSION Were it not for the legitimate needs of some individuals for medical marijuana and to cultivate limited quantities for personal use and for caregivers, because of the public safety and nuisance impacts discussed in the foregoing paragraphs, it would be staff's recommendation to completely prohibit marijuana cultivation in the same way the City Council has banned marijuana dispensaries. The feedback obtained from the City Council during the September 23, 2015 workshop recognized the legitimate needs of a segment of thecommunity for medicinal marijuana, as well as the importance of ensuring the health and safety of our entire community. Accordingly, staff has prepared an ordinance intended to exercise the local authority recognized in the MMRSA and in the medical marijuana case law to ban within the City of Petaluma most medical marijuana -related activity, including dispensaries, cultivation, commercial cannabis activity and delivery, subject to specified exceptions for qualified patients and primary caregivers. (Attachment 1). The limited exceptions for qualified patients and primary caregivers in the attached ordinance are intended to work in conjunction with exemptions in the MMRSA so that qualified patients and primary caregivers in Petaluma can cultivate and receive delivery of sufficient medical marijuana without violating local or state law and without creating nuisance conditions in the City that create safety risks and diminish the quality of life for all citizens. 5 The proposed ordinance creates exceptions to local bans on medical marijuana activity, as opposed to establishing a permit scheme. The reason for this approach is that marijuana is still an illegal substance under federal law. Thus, the ordinance provides for limited circumstances under which the City will not enforce its prohibition on marijuana cultivation and other marijuana related activity without expressly authorizing any marijuana related activity. This avoids involving the City and City officials in activity that purports to authorize violations of federal law The attached ordinance addresses the concerns expressed by a majority of the Council that cultivation should not occur inside the living areas of structures. A majority of the Council members were also in favor of excluding from the City's cultivation ban limited indoor and outdoor cultivation for qualified patients and primary caregivers. The attached ordinance attempts to balance the health and welfare of medical marijuana patients and the health and welfare of all Petaluma citizens by ensuring that the exceptions for qualified patients and caregivers do not lead to public nuisances from marijuana odor, attractiveness to theft and related criminal activity. The Council also expressed concerns regarding excessive energy use and adequate ventilation; these considerations are addressed in the attached document. In summary, the provisions of the attached ordinance which would amend Chapter 10.15 of the Petaluma Municipal Code concerning medical marijuana and which is recommended to the Council for its approval include: 1. An updated purpose section to reflect the purposes behind expanding Chapter 10.15 to address in addition to dispensaries medical marijuana cultivation, commercial cannabis activity, and delivery. 2. A replacement definitions section that adds definitions required by the expanded chapter and updates definitions to conform to definitions in the MMRSA. 3. An updated dispensary prohibition that also prohibits commercial cannabis activity, subject to exceptions specified in the chapter. 4. A prohibition against marijuana cultivation, subject to specified exceptions for qualified patients and primary caregivers. 5. A prohibition against medical marijuana delivery, subject to specified exceptions for qualified patients and primary caregivers. 6. A revised prohibition against the granting of medical marijuana entitlements in the City, consistent with the expanded purposes of the chapter. 7. A revised enforcement provision expanded to establish that all activity prohibited under the chapter is a public nuisance. The following requirements must be satisfied for qualified patients and primary caregivers to qualify for the exception to the cultivation ban contained in the attached ordinance: • Only qualified patients and primary caregivers as defined by law are eligible. • Either a qualified patient or primary caregiver must reside full-time at the residence where the medical marijuana cultivation occurs to qualify. • No cultivation of medical marijuana in any agricultural, commercial, office, industrial, open space, special purpose, or overlay/combining zoning districts is eligible for the exception. 2 • Cultivation using grow lights that exceed one thousand two hundred (1,200) watts or generators or gas products is not eligible for the exception. • Only outdoor cultivation consisting of 3 or fewer mature plants is eligible for the exception. • Cultivation that can be seen or smelled from the public right of way or private property is not eligible for the exception. • Cultivation inside of residences that are not in full compliance with the City's Municipal Code, including its building code and fire code, is ineligible for the exception. • Indoor cultivation that exceeds the lesser of 50% of the non -living area/garage area of a residence or 100 square feet, or that displaces required on-site parking is not eligible for the exception. • Where indoor and outdoor cultivation are both occurring at the same residence, only cultivation that meets all the requirements for eligible indoor and outdoor cultivation and that does not exceed a total 100 square feet for the indoor and outdoor cultivation areas combined is eligible for the exception. • Cultivation must remain at all times a secondary or accessory use to the residential use of the residence to be eligible for the exception. It should be noted that the scope of the medical marijuana related activity prohibited in the attached ordinance is expanded compared to the ordinance previously submitted to the City Council. In particular, the prohibition of commercial cannabis activity and of delivery in the City (subject to an exception for delivery from a dispensary outside the City to qualified patients and caregivers within the City where specified additional requirements are met) are new. The addition of a prohibition against commercial cannabis activity is intended to permit treating as a nuisance commercial medical marijuana processing in the City. Such processing, such as processing extracting hash oil from marijuana, has resulted in property loss in the City and poses significant risk of personal injury and property damage. (See the information contained in the relevant recitals in the attached ordinance.) For purposes of harmonizing Petaluma's medical marijuana ordinance with the MMRA, it is necessary to address commercial cannabis activity in the City ordinance as it is the definition of commercial cannabis activity in the MMRA that covers marijuana processing. The definition of cultivation in the MMRA does not cover processing. The addition of a delivery ban, subject to a specified exception for qualified patients and primary caregivers, is intended to address health and safety hazards, negative neighborhood impacts and increased demands on the police department that can result from medical marijuana delivery occurring during nighttime hours, or consisting of large amounts of marijuana, or involving medical marijuana delivery by minors. FISCAL IMPACT City departments will expend staff time investigating complaints, conducting inspections and enforcing violations. Recent case law decisions diminish the potential for legal challenges to local regulations like the ones proposed. The attached ordinance has been purposely drafted to conform to the authority reserved in the MMRSA for local medical marijuana regulation. However, the state medical marijuana laws are complex and many are of recent enactment, and no City program is completely free from risk of litigation. Fines and cost recovery can be sought for violations of the City ordinance. 7 ATTACHMENTS 1. Ordinance ATTACHMENT 1 171- to�N 060M AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING CHAPTER 10.15, "MEDICAL MARIJUANA" OF THE CITY OF PETALUMA MUNICIPAL CODE PROHIBITING DISPENSARIES IN THE CITY TO ALSO PROHIBIT SPECIFIED COMMERCIAL CANNABIS ACTIVITY, CULTIVATION AND DELIVERY OF MEDICAL MARIJUANA IN THE CITY OF PETALUMA WHEREAS, in 1996 the voters of the state of California approved Proposition 215 which was codified as Health and Safety Code Section 11362.5, et seq., and entitled "The Compassionate Use Act of 1996" ("CUA"); and WHEREAS, the intent of the CUA was to enable persons who are in need of marijuana for medical purposes to obtain and use it under limited, specific circumstances; and WHEREAS, on January 1, 2004, Senate Bill 420, known as the "Medical Marijuana Program" (codified at Health and Safety Code Sections 11362.7 through 11362.83) ("MMP") became effective to clarify the scope of the CUA; and WHEREAS, the CUA is limited in scope in that it provides a defense from criminal prosecution under state law for possession and cultivation of marijuana for qualified patients and their primary caregivers; establishes a statewide identification program and affords qualified patients, persons with identification cards and their primary caregivers an affirmative defense to certain enumerated criminal sanctions that would otherwise apply to transporting, processing, administering or distributing marijuana; and WHEREAS, neither the CUA nor the MMP requires or imposes an affirmative duty or mandate upon local governments, such as the City of Petaluma, to allow, authorize or sanction the establishment and the operation of facilities cultivating, distributing, or processing medical marijuana within their boundaries; and WHEREAS, on May 5, 2013, the California Supreme Court issued its opinion in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc., (2013) 56 Ca1.4th 729, which held that neither the CUA nor the MMP expressly or impliedly preempts the authority of California cities and counties, under their traditional land use and police powers, to restrict, limit, or entirely exclude facilities that distribute medical marijuana, and to enforce such policies by nuisance actions; and E WHEREAS, on November 26, 2013, the Third District Court of Appeal issued its opinion in Mar•al v. City of Live Oak (2013) 221 Cal.App.4th 975, which held that the CUA and the MMP do not preempt a city's police power to prohibit the cultivation of all marijuana within that city; and WHEREAS, during the 2014/2015 legislative session, the Legislature enacted three bills regulating medical marijuana collectively entitled the "Medical Marijuana Regulation and Safety Act" ("MMRSA"): AB -243, AB- 266, and SB -643; and WHEREAS, Health and Safety Code Section 11362.777, which is part of the MMRSA, provides in subdivision (b) that cultivation of medical marijuana prior to obtaining both a permit from the city, county or city and county in which the cultivation will occur and a state license is prohibited, and that if a city, county, or city and county does not have land use regulations or ordinances regulating or prohibiting the cultivation of marijuana, either expressly or otherwise under principles of permissive zoning, then commencing March 1, 2016 the state will be the sole licensing authority for medical marijuana cultivation applicants in that city, county, or city and county; and WHEREAS, Health and Safety Code Section 11362.777 provides in subdivision (g) that that section does not apply to qualified patients cultivating marijuana pursuant to Health and Safety Code Section 11362.5 in cultivation areas that do not exceed 100 square feet for their personal medical use and not for sale, distribution, donation, or provision to any other person or entity, or to primary care givers cultivating marijuana pursuant to Health and Safety Code Section 11362.5 in cultivation areas that do not exceed 500 square feet exclusively for the personal medical use of not more than five specified qualified patients for whom they are the primary caregiver within the meaning of Health and Safety Code Section 11362.7 without compensation except in full compliance with Health and Safety Code section 11362.765, subdivision (c); and WHEREAS, Health and Safety Code Section 11362.777 further provides in subdivision (g) that the exemptions from the requirements of that section do not prevent a city, county or city and county from regulating or banning the cultivation, storage, manufacture, transport, provision or other activity by the exempt person, or impair the enforcement of that regulation or ban; and 10 WHEREAS, Business and Professions Code Section 19340, which is part of the MMRSA, provides in subdivision (a) that medical marijuana deliveries as defined can only be made by a dispensary and in a city, county or city and county that does not explicitly prohibit it by a local ordinance; and WHEREAS, on December 1, 2015, the Fifth District Court of Appeal issued its opinion in Kirby v. County of Fresno, (2015), which upheld a county ordinance banning medical marijuana dispensaries, cultivation and storage, but invalidated the ordinance's classification of local medical marijuana cultivation as a misdemeanor, holding that section 113662.71 of the MMP preempts local criminalization of medical marijuana cultivation; and WHEREAS, although the court in Kirby v. County of Fresno invalidated on preemption grounds the local criminalization of medical marijuana cultivation as a misdemeanor, the court noted that local prosecution of the failure to abate a public nuisance involving medical marijuana cultivation is not preempted, because the Legislature recognizes the failure to abate a public nuisance after notice as a separate crime; and WHEREAS, in 2007 the Petaluma City Council adopted Chapter 10.15 of the Petaluma Municipal Code prohibiting medical marijuana dispensaries in the City to promote the public health, safety and welfare and protect citizens from impacts associated with medical marijuana dispensaries, including, but not limited to, increased public consumption of marijuana and the potential for increased marijuana DUIs, illegal resale of marijuana obtained at low cost from dispensaries, loitering, fraud in obtaining or use of medical marijuana identification cards, robbery, assaults and other crimes, and increased demands for police response resulting from activities at medical marijuana dispensaries reducing the ability of the city's public safety officers to respond to other calls for service; and WHEREAS, marijuana remains an illegal substance under the Federal Controlled Substances Act, 21 U.S.C. 801, et seq., which makes it unlawful for any person to cultivate, manufacture, distribute, dispense, or possess with intent to manufacture, distribute or dispense marijuana for any reason, even though state law decriminalizes under specified state laws specified use of medical marijuana by specified persons; and WHEREAS, the City of Petaluma Police Department, City residents and other public entities have reported adverse impacts from the outdoor cultivation of marijuana within the City, including offensive odors, increased risk of trespassing and burglary, and acts of violence in 11 connection with the commission of such crimes or the occupants' attempts to prevent such crimes; and WHEREAS, the strong odor of marijuana plants, which increases as the plants mature, is offensive to many individuals and creates an attractive nuisance, alerting people to the location of valuable marijuana plants and creating an increased risk of crime; and WHEREAS, Petaluma has experienced structure fires and building damage threatening the quality and safety of City neighborhoods as a result of indoor marijuana cultivation within the City, with 7 such incidents occurring between December, 2010 and May, 2015, and a total of 33 structure fires within the Sonoma County area have been attributed to illegal indoor marijuana cultivation operations; and WHEREAS, Petaluma has experienced property loss valued at approximately $344,000, and the Sonoma County area has suffered property loss estimated at approximately $1,693,000 as a result of commercial cannabis activity, due to such causes as substandard wiring and electrical systems, grow lights, and use of butane to illegally extract hash oil; and WHEREAS, to protect the public health, safety, and welfare, it is the desire of the City Council to add to existing provisions in the City of Petaluma Municipal Code prohibiting medical marijuana dispensaries new provisions prohibiting cultivation, commercial cannabis activity, and delivery of marijuana within the City, subject to specified exceptions; and WHEREAS, it is the Council's intention that nothing in this chapter shall be deemed to conflict with federal law as contained in the Controlled Substances Act, 21 U.S.C. Section 841, by permitting, or otherwise authorizing, any activity which is lawfully and constitutionally prohibited under that law; and WHEREAS, mindful of the fact that marijuana possession and use is prohibited under federal law and partially decriminalized under state law, it is the Council's intention that nothing in this chapter shall be construed, in any way, to expand the rights of anyone to use or possess marijuana under state law; engage in any public nuisance; violate federal law, or engage in any activity in relation to the cultivation, distribution, or consumption of marijuana that is otherwise illegal; 12 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1: Chapter 10.15, Medical Marijuana, of the Petaluma Municipal Code is hereby amended as follows: Section 10.15.010, Purpose, is hereby amended to read as follows: Section 10.15.010 Purpose. The purpose of this chapter is to promote the public health, safety and welfare by: A. Protecting citizens from the secondary impacts associated with medical marijuana dispensaries and commercial cannabis activity, including, but not limited to, increased public consumption of marijuana and the potential for increased marijuana DUIs, illegal resale of marijuana obtained at low cost from dispensaries, loitering, fraud in obtaining or use of medical marijuana identification cards, robbery, assaults, and other crimes. B. Protecting citizens from secondary impacts associated with commercial cannabis activity such as medical marijuana cultivation, including, but not limited to, electrical fires and ignition of chemical substances utilized in the cultivation process, crimes occurring at grow sites, and neighborhood concerns regarding odors, late night traffic, and related nuisances. C. Protecting citizens from secondary impacts of medical marijuana delivery, including, but not limited to, delivery for recreational use, delivery of quantities of marijuana exceeding the reasonable requirements of qualified patients and primary caregivers, delivery during nighttime hours, and delivery by minors. D. Preventing increased demands for police response resulting from activities at medical marijuana dispensaries and cultivation sites, commercial cannabis activity and medical marijuana delivery and thereby avoiding reduction in the ability of the city's public safety officers to respond to other calls for service. 13 Section 10.15.020 Definitions is hereby amended to read as follows: "Commercial cannabis activity" means cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical cannabis or a medical cannabis product, except as set forth in California Business and Professions Code Section 19319, related to qualifying patients and primary caregivers, in accordance with the definition in California Business and Professions Code Section 19300.5, subdivision (k), as that section and subdivision may be amended or interpreted by the California courts or superseded by any successor statute. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis, in accordance with the definition in California Business and Professions Code Section 19300.5, subdivision (1), as that section and subdivision may be amended or interpreted by the California courts or superseded by any successor statute. "Delivery" 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 a qualified patient as defined in Section 11362.7 of the California Health and Safety Code , or a testing laboratory, in accordance with the definition in California Business and Professions Code section 19300.5, subdivision (m), as that section and subdivision may be amended or interpreted by the California courts or superseded by any successor statute. "Dispensary" means a facility where medical cannabis, medical cannabis products, or devices for the use of medical cannabis or 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, in accordance with the definition in California Business and Professions Code Section 19300.5, subdivision (n), as that section and subdivision may be amended or interpreted by the California courts or superseded by any successor statute. Dispensary does not include the following uses, so long as the location of such uses is 14 otherwise regulated by and strictly complies with this code and other applicable law, including California Health and Safety Code Sections 11362.5 and 11362.7, et seq, as such sections may be amended from time to time: A. A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code. B. A health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code. C. 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. D. A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code. E. The delivery, administration or provision of medical marijuana by a designated primary caregiver to the qualified patient of the primary caregiver or to the person with an identification card who has designated the individual as a primary caregiver at the primary residence of the qualified patient or person with an identification card who has designated the individual as a primary caregiver. "Fully enclosed and secure structure" means a code compliant space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more locking doors. "Mature plant" means a plant that has flowers, or is more than 12 inches wide, or more than 12 inches tall. "Primary caregiver" shall have the same definition as set forth in California Health and Safety Code Section 11362.7, as it may be amended or superseded by any successor statute, and as interpreted by the California courts, including but not limited to the California Supreme Court case of People v. Mentch (2008) 45 Cal. 4th 274. "Qualified patient" shall have the same definition as set forth in California Health and Safety Code Section 11362.7, as it may be amended or superseded by any successor statute, 15 and as interpreted by the California courts. "Residence" means a legal dwelling unit and all detached structures such as garages, sheds, greenhouses, and other structures on the same legal parcel(s) as the dwelling unit. Section 10.15.030, Prohibition of medical marijuana dispensaries, is hereby amended to read as follows: 10.15.030 Prohibition of Medical Marijuana Dispensaries and Commercial Cannabis Activity It shall be unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in the City of Petaluma, the operation of a dispensary or commercial cannabis activity except as otherwise expressly provided in this chapter. Section 10.15.040, Establishment or maintenance of medical marijuana dispensaries declared a public nuisance, is hereby repealed in its entirety and replaced with: 10.15.040 Prohibition of Medical Marijuana Cultivation It shall be unlawful for any person to engage in, conduct or calTy on, or to permit to be engaged in, conducted or carried on, in the City of Petaluma, the cultivation of marijuana other than: 1. Indoor cultivation that is solely for the personal use of one qualified patient and that at all times remains an accessory use to the primary residence of either the qualified patient or his or her primary caregiver; where the cultivation area does not exceed 50% or 100 square feet of the non -living or garage area of the residence, or a lesser amount in accordance with paragraph 2 of this section, whichever is less; that does not displace any required on-site parking; that is within a fully -enclosed and secure sti acture with no visual or olfactory evidence of cultivation detectable from the public right of way or other private property; that does not utilize lighting that exceeds 1,200 16 watts; that does not require the use of an electric generator; and that does not use gas products (CO2, butane, etc.); and 2. Outdoor cultivation that is solely for the personal use of one qualified patient that at all times remains an accessory use to the primary residence of either the qualified patient or his or her primary caregiver; where the cultivation area does not exceed 100 square feet, or a lesser amount so that the total cultivation area pursuant to this section including indoor and outdoor cultivation at the residence does not exceed a combined total of 100 square feet; that does not exceed three (3) mature plants, with no visual or olfactory evidence of cultivation detectable from the public right of way or other private property; that does not utilize lighting that exceeds 1,200 watts; that does not require the use of an electric generator; and that does not use gas products (CO2, butane, etc.). Section 10.15.050, Prohibition of Medical Marijuana Delivery, is hereby added to read as follows: 10.15.050 Prohibition of Medical Marijuana Delivery It shall be unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in the City of Petaluma, the delivery of medical marijuana, except for delivery of medical marijuana: From a dispensary outside the city that is operating in accordance with applicable state and local law to a qualified patient or primary caregiver within the city in accordance with the requirements of Health and Safety Code Section 19340, any successor statute, and any regulations promulgated under California Health and Safety Code Section 19340 or any successor statute, where: 1. Persons delivering medical marijuana in the city possess no more than 1 pound of medical marijuana at any time while making medical marijuana deliveries in the city; and 2. The delivery is carried out by a person at least 18 years of age; and 3. The delivery occurs between the hours of 8:00 a.m. and 8:00 p.m. 17 Section 10.15.060, Prohibition of Medical Marijuana Entitlements is hereby added to read as follows: Section 10.15.060, Prohibition of Medical Marijuana Entitlements No medical marijuana dispensary, commercial cannabis activity, medical marijuana cultivation operation, or medical marijuana delivery operation, however described by the applicant, will eligible for or be issued any entitlement, license or permit to operate in the city, or have any such entitlement renewed, including, but not limited to, any business license or home occupation permit, and any such application shall be denied citing this section. Section 10.15.0700, Public Nuisance, is hereby added to read as follows: Section 10.15.070 Public Nuisance. Any medical marijuana dispensary, commercial cannabis activity, cultivation, delivery or other use or activity caused or permitted to exist in the city in violation of any provision of this chapter shall be and is hereby declared a public nuisance. Violations of this chapter may be enforced by any applicable laws or ordinances, including, but not limited to, Chapter 1.10 of this code. Section 2: The City Council finds that adoption of this ordinance is exempt from the California Environmental Quality Act ("CEQA"), pursuant to Section 15061(b)(3) of the CEQA Guidelines (Title 14, Chapter 3 of the California Code of Regulations) because there is no possibility that the activity may have a significant impact on the environment. Section 3: If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared 18 unconstitutional, unlawful or otherwise invalid. Section 4: The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. INTRODUCED and ordered posted/published this ADOPTED this day of 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Claire Cooper, City Clerk day of , 2016. David Glass, Mayor APPROVED AS TO FORM: Eric Danly, City Attorney 19