HomeMy WebLinkAboutStaff Report 2.A 11/13/2017DATE
November 13, 2017
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City Managenw
SUBJECT: Ordinance Revising Local Cannabis Regulations
RECOMMENDATION
Agenda Item #2.A
It is recommended the Council approve, for first reading, an Ordinance Repealing and Replacing
Chapter 10.15 of the Petaluma Municipal Code "Medical Marijuana ", Retitling the Chapter
"Cannabis" and Extending the City's Regulations to Medical and Non- Medical Cannabis Uses in
the City.
BACKGROUND
The City Council has considered revisions to the City's cannabis regulations several times during
the past year; most recently on November 6, 2017. Presented to the City Council for
consideration and first reading last week was a draft ordinance revising the City's cannabis
regulation. The ordinance was intended to reflect direction provided by the City Council at its
October 2, 2017 meeting. A copy of the November 6, 2017 staff report and draft ordinance are
included, as additional background (Attaclunent 2).
The draft ordinance retained the bans contained in Chapter 10. 15, including certain exceptions,
and extended them from medical to non - medical cannabis. Recommended as exempt from the
ban was cultivation in residential zones of up to 6 plants, consistent with Proposition 64;
commercial sales, for a limited number of businesses that serve no customers on site and fill
mail, phone, and e- commerce orders by delivery only; and manufacturing and testing businesses
that do not employ volatile means of extracting or concentrating cannabis or its constituent
properties. These exceptions would be administered with a limited term, revocable, permitting
approach, allowed only in zoning that provides for the particular kind of business activity,
subject to regulations to be issued by the Council.
The City Council received continents from the public and stakeholders at the meeting and
through written submissions, and provided additional input to staff regarding desirable
clarifications and amendments to the draft ordinance. In summary, requested changes were to
assure revised regulations for recreational cannabis do not interfere with allowable activities
associated with medical camlabis permitted by the Compassionate Care Act or Chapter 10.15 of
the City's existing Municipal Code; that licensing of delivery outlets extends to medical as well
as recreational cannabis; and the manner in which manufactures may sell the products they
make.
DISCUSSION
The attached draft ordinance, which repeals and replaces Chapter 10.15 of the Petaluma
Municipal Code "Medical Marijuana" and retitles the chapter "Cannabis," extends the City's
current marijuana regulations to Non - Medical Cannabis Uses, incorporates Council direction
from the November 6, 2017 meeting, and is recommended for your consideration, first reading
and approval. Due to compressed time between last Monday night's meeting and distribution of
the agenda for the November 13, 2017 special meeting (Wednesday November 8, 2017) this
report does not detail the changes that were made to the November 6, 2017 draft. Rather, these
changes are highlighted in a red -lined version of that document, included as Attachment 3 to this
report. Staff will provide a verbal description of the various changes, at your special meeting on
November 13'x', and how they address the Councilmember, public, and stakeholder comments
that have been received.
As previously noted, changes to the City's cannabis regulations should be completed and
effective by January 1, 2018 when State regulations regarding commercial activity go into effect.
A first reading of the draft ordinance on November 13, 2017, second reading and adoption on
November 20, and the requisite 30 -day waiting period that follows will hit that target. In addition
to the regulations being developed for the December 18, 2017 meeting, and a recommended fee
structure, staff will also develop application and permit formats during the next six weeks, so
that Petaluma is prepared to process applications in January 2018.
FINANCIAL IMPACTS
Staff is currently determining an appropriate fee structure to accompany permits for cannabis -
related businesses, based on a Rill cost recovery methodology. These will be provided to the
City Council at its December 18, 2017 meeting for consideration.
ATTACHMENTS
1. November 13, 2017 draft ordinance
2. November 6, 2016 staff report and draft ordinance
3. Redlined version of November 13, 2017 draft ordinance
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ATTACHMENT 1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA
REPEALING AND REPLACING CHAPTER 10.15, "MEDICAL MARIJUANA," OF
THE CITY OF PETALUMA MUNICIPAL CODE, RETITLING THE CHAPTER
"CANNABIS," AND EXTENDING THE CITY'S CANNABIS REGULATIONSTO
MEDICAL AND NON - MEDICAL CANNABIS USES IN THE CITY
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 specified circumstances; and
WHEREAS, on January 1, 2004, Senate Bill 420, known as the "Medical Marijuana
Program" (codified in Health and Safety Code Sections 11362.7 through 11362.85) ( "MMP ")
became effective to.clarify the scope of the CUA; and
WHEREAS, the CUA was limited in scope in that it provided a defense from criminal
prosecution under state law for possession and cultivation of marijuana for qualified patients and
their primary caregivers; established a statewide identification program and afforded qualified
patients, persons with identification cards and their primary caregivers an affirmative defense to
certain enumerated criminal sanctions that otherwise applied to transporting, processing,
administering or distributing marijuana; and
WHEREAS, neither the CUA nor the MMP required or imposed 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, 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, 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 CalAth 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
WHEREAS, on August 29, 2013, Deputy U.S. Attorney General James Cole issued a
memorandum to all federal prosecutors providing guidance on the enforcement of the federal
Controlled Substances Act, 21 U.S.C. 801, et seq., regarding cannabis, indicating that
enforcement of state law by state and local law enforcement and regulatory bodies should remain
the primary means of addressing marijuana related activity in jurisdictions that have enacted
laws legalizing marijuana in some form and that have also implemented strong and effective
regulatory and enforcement systems to control the cultivation, distribution, sale and possession
of marijuana; and
WHEREAS, on November 26, 2013, the Third District Court of Appeal issued its
opinion in Maral v. City of Live Oak, (2013) 221 Cal.AppAth 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 California State Legislature
enacted three bills: AB -243, AB- 266, and SB -643 that together established a regulatory scheme
governing medical marijuana that was collectively entitled the "Medical Marijuana Regulation
and Safety Act" ( "MMRSA "); and
WHEREAS, on December 16, 2014, President Obama signed an omnibus spending bill,
including a budget rider, referred to as the Rohrbacher -Farr amendment, which prohibited the
U.S. Justice Department from using federally - appropriated funds to prosecute medical marijuana
use that complied with state law in states that had legalized medical marijuana; and
WHEREAS, on December 1, 2015, the Fifth District Court of Appeal issued its opinion
in Kirby v. County of Fresno, (2015) 242 Ca1.App.4th 940, 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
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113662.71 of the California Health and Safety Code, a provision of the MMP, preempts local
criminalization of medical marijuana cultivation; and
WHEREAS, although the court in Kirby 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 January, 2016, the City Council adopted amendments to Chapter 10.15
of the Petaluma Municipal Code, partly in response to the MMRSA: to prohibit commercial
cannabis activity in the City; to prohibit marijuana cultivation in the City (except for limited
indoor and outdoor cultivation by qualified patients and primary caregivers in residential areas,
subject to limitations intended to avoid nuisance conditions); to restrict medical marijuana
delivery in the City; prohibit granting of entitlements for marijuana uses in the City; and to
declare violations of the chapter to be a public nuisance; and
WHEREAS, in United States v. McIntosh, (2016) 833 F3d 1163, filed August 16, 2016,
the Ninth Circuit Court of appeals construed the Rohrbacher -Farr budget rider as prohibiting the
U. S. Department of Justice from spending funds from relevant appropriations acts for the
prosecution of individuals who engaged in conduct permitted by state medical marijuana laws
and who fully complied with such laws; and
WHEREAS, in November, 201.6, California voters approved the Control, Regulate and
Tax Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of Marijuana
Act ( "AUMA "), which established a regulatory scheme for nonmedical marijuana similar to that
established for medical marijuana under the MMRSA; and
WHEREAS, following its adoption by California voters, the AUMA was codified in
various provisions of state law, including in Article 2 entitled "Cannabis" in the Uniform
Controlled Substances Act within the California Health and Safety Code, and in Division 10
entitled the "Medicinal and Adult -Use Cannabis Regulation and Safety Act" of the California
Business and Professions Code; and
WHEREAS, the AUMA decriminalized for purposes of state law, subject to specified
restrictions, certain specified nonmedical cannabis uses pursuant to California Health and Safety
Code section 11362.1, including: possession, processing, transporting, purchasing, obtaining and
giving away to persons 21 years old or older, without compensation, not more than 28.5 grams of
non - concentrated cannabis or not more than 8 grams of concentrated cannabis, including
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cannabis contained in cannabis products; possessing, planting, cultivating, harvesting, drying or
processing not more than six living cannabis plants and possessing the cannabis produced by the
plants; smoking or ingesting cannabis or cannabis products, and possessing, transporting,
purchasing, obtaining, using, manufacturing, or giving away to persons 21 years of age or older
without compensation cannabis accessories,; and
WHEREAS, in accordance with California Health and Safety Code section 11362.2,
subdivision (a), the personal cultivation of cannabis permitted under the AUMA must be in
accordance with reasonable local regulations; must ensure that living plants and cannabis they
produce in excess of 28.5 grams are kept within a private residence or upon the grounds of a
private residence in a locked space not visible from a public place; and cannot exceed six living
plants cultivated, harvested, dried or processed within a single private residence at one time; and
WHEREAS, in accordance with California Health and Safety Code section 11362.2,
subdivision (b), paragraphs (1) and (2), the AUMA permits local agencies to impose reasonable
regulations on personal cannabis cultivation and processing, so long as such regulations are not a
complete prohibition on such activity within a private residence or an accessory structure to a
private residence that is fully enclosed and secure; and
WHEREAS, in accordance with California Business and Professions Code section
26080, subdivision (b), the AUMA prohibits local jurisdictions from preventing those that are
licensed under the AUMA from transporting cannabis or cannabis products on public roads; and
WHEREAS, in accordance with California Health and Safety Code section 113 62,2, subdivision
(b), paragraph (3), the AUMA authorizes local agencies to completely ban outdoor cultivation of
cannabis on the grounds of private residences, unless and until the California Attorney General
determines that adult use of cannabis is lawful under federal law, and
WHEREAS, in accordance with California Health and Safety Code section 11362.45,
subdivisions (f) and (g), the AUMA permits public and private employers to maintain drug and
alcohol free workplaces, to prohibit cannabis use by employees, and to restrict or prohibit
cannabis activity in buildings owned, leased or occupied by a local agency; and
WHEREAS, in accordance with California Business and Professions Code section
26200, subdivision (a), nothing in the AUMA supersedes or limits the authority of a local
jurisdiction to regulate or prohibit within the local jurisdiction the establishment or operation of
cannabis businesses that are subject to state license requirements under the AUMA ; and
WHEREAS, cannabis 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,
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manufacture, distribute, dispense, or possess with intent to manufacture, distribute or dispense
cannabis for any reason, even though state law decriminalizes under specified state statutes
specified use of cannabis by specified persons; and
WHEREAS, the Rohrbacher -Farr Amendment, which prohibits the U.S. Justice
Department from using federally- appropriated funds to prosecute medical marijuana use that
complies with state law in states that have legalized medical marijuana, has been extended most
recently in the spending bill President Trump signed on May 5, 2017, and remains ,in effect; and
WHEREAS, the August 29, 2013 memorandum issued by Deputy U.S. Attorney General
James Cole has not been rescinded and remains in effect directing that enforcement of state law
by state and local law enforcement and regulatory bodies should remain the primary means of
addressing marijuana related activity in jurisdictions that have enacted laws legalizing marijuana
in some form and that have also implemented strong and effective regulatory and enforcement
systems to control the cultivation, distribution, sale. and possession of marijuana; and
WHEREAS, the City Council has held workshops and discussed potential updates to the
City's cannabis regulations in response to the AUMA on June 26, 2017 and on October 2,'2017,
at which workshops the City Council received comments from various stakeholders and
interested parties, and provided City staff policy direction; and
WHEREAS, the City Council considered a new draft ordinance entitled "Cannabis"
intended to replace Chapter 10.15 in the Petaluma Municipal Code at the November 6, 2017 City
Council meeting, at which meeting the City Council discussed comments on the draft ordinance
received from community members and other stakeholders and gave staff further direction
regarding preparation of an ordinance to replace existing Chapter 10.15 in the Petaluma
Municipal Code; and
WHEREAS, the City Council's direction to staff regarding adoption of local cannabis
regulations following enactment of the AUMA reflects a dual focus on recognizing and
respecting the will of the California voters in approving the AUMA, through adoption of less
restrictive local cannabis regulations, while at the same time promoting the public health, safety
and welfare of the Petaluma community through strong and effective local regulatory and
enforcement systems to, in conjunction with state law, control the cultivation, distribution, sale
and possession of cannabis in the City; and
FINDINGS
WHEREAS, the City of Petaluma Police Department, City residents and other public
entities have reported adverse impacts from the outdoor cultivation of cannabis within the City,
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including offensive odors, increased risk of trespassing and burglary, and acts of violence in
connection with the commission of such crimes or the occupants' attempts to prevent such
crimes; and
WHEREAS, the strong odor of cannabis plants, which increases as the plants mature, is
offensive to many individuals and creates an attractive nuisance, alerting people to the location
of valuable cannabis 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 cannabis 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 attributed to illegal indoor cannabis cultivation
operations; and
WHEREAS, to protect the public health, safety, and welfare, it is the desire of the City
Council to replace Chapter 10.15 of the City of Petaluma Municipal Code prohibiting medical
marijuana dispensaries and commercial marijuana activity, and limiting medical marijuana
cultivation, and delivery of marijuana within the City, while preserving access of qualified
caregivers and primary caregivers to medical cannabis, with a new chapter 10.15 entitled
"Cannabis" making medical and nonmedical cannabis subject to the City's cannabis regulations
in accordance with the City's general police power pursuant to Article XI, Section 7 of the
California Constitution and the authority for local cannabis regulations contained in the AUMA;
and
WHEREAS, mindful of the fact that cannabis possession and use is prohibited under
federal law and 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 cannabis
under state law, or to engage in any public nuisance; and
WHEREAS, for purposes of compliance with the California Environmental Quality Act
( "CEQA ") and the CEQA Guidelines, the City Council finds that new Petaluma Municipal Code
Chapter 10.15 will result in negligible environmental impacts, if any, because a) the exceptions
in Section 10. 15.040 for manufacture and sale of topical or edible cannabis products, cannabis
testing laboratories and cannabis delivery -only sales are, pursuant to that section, subject to
granting of a license, permit or other authorization or notice issued by an authorized city official,
which discretionary approval will be subject to CEQA review for each such proposed use; and b)
the revisions to the City's cannabis cultivation regulations pursuant to Section 10.15.050 are
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minor and intended only to harmonize the regulations with the AUMA, with negligible
anticipated environmental impacts; and
WHEREAS, in view of the negligible environmental impacts anticipated from new
Chapter 10.15 (that will not be subject to subsequent CEQA review), this ordinance is exempt
from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines because there is no
possibility that the activity may have a significant impact on the environment, as well as pursuant
to Section 15301 of the CEQA Guidelines, which applies to the operation, repair maintenance,
permitting, and licensing or minor alteration of existing public or private structures, facilities, or
mechanical equipment involving negligible or no expansion of use beyond that existing at the
time of the lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines,
which applies to construction and location of limited numbers of new, small facilities or
structures, installation of small new equipment and facilities in small structures, and -the
conversion of existing small structures from one use to another where only minor modifications
are made in the exterior of the structure;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PETALUMA AS FOLLOWS:
Section 1: Chapter 10.15, Entitled "Medical Marijuana," of the Petaluma Municipal
Code, is hereby repealed in its entirety.
Section 2: The above, recitals are hereby declared to be true and correct and are
incorporated into this ordinance by this reference.
Section 3: A New Chapter 10.15, Entitled "Cannabis," is hereby added to the Petaluma
Municipal Code, to read as follows:
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CHAPTER 10.15
CANNABIS
Section 10.15.010 Purpose.
The purpose of this chapter is to recognize and respect the will of the California voters in
approving in November, 2016, Proposition 64, the Control, Regulate and Tax Adult Use
of Marijuana Act, referred to as the Adult Use of Marijuana Act ( "AUMA "), which
legalized, subject to certain restrictions, specified nonmedical cannabis uses for purposes
of state law, through adoption of less restrictive local cannabis regulations, while at the
same time promoting the public health, safety and welfare of the Petaluma community
by:
A. Protecting citizens from the secondary impacts associated with cannabis
dispensaries and commercial cannabis activity, including, but not limited to, increased
public consumption of cannabis and the potential for increased cannabis DUIs, illegal
resale of cannabis obtained at low cost from dispensaries, loitering, robbery, assaults, and
other crimes;
B. Protecting citizens from secondary impacts associated with commercial cannabis
activity such as cannabis 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 cannabis delivery, including, but
not limited to, delivery during nighttime hours and delivery by minors;
D. Preventing increased demands for police response resulting from activities at
cannabis dispensaries and cultivation sites, commercial cannabis activity and cannabis
delivery and thereby avoiding reduction in the ability of the city's public safety officers
to respond to other calls for service; and
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E. Maintaining the access of qualified patients and primary caregivers to medical
cannabis and medical cannabis products.
Section 10.15.020 Definitions
For purposes of this chapter, the following terms are defined as follows:
A. "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, as
defined in California Business and Professions Code section 26001, subdivision (f), as
that section and subdivision may be amended or interpreted by the California courts or
superseded by any successor statute, "Cannabis" also means the separated resin, whether
crude or purified, obtained from cannabis. "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 calve, or the sterilized seed of
the plant which is incapable of germination. "Cannabis" does not mean "industrial hemp"
as defined by Section 11018.5 of the California Health and Safety Code, as that section
may be amended or interpreted by the California courts or superseded by any successor
statute. "Cannabis" includes "medical cannabis."
B. "Cannabis concentrate" means cannabis that has undergone a process to
concentrate one or more active cannabinoids, thereby increasing the product's potency, in
accordance with the definition in California Business and Professions Code section
26001, subdivision (h), as that section and subdivision may be amended or interpreted by
the California courts or superseded by any successor statute.
C. "Cannabis products" means cannabis that has undergone a process whereby the
plant material has been transformed into a concentrate, including, but not limited to,
concentrated cannabis, or an edible or topical product containing marijuana or
concentrated cannabis and other ingredients in accordance with the definition in
California Health and Safety Code section 11018.1, as that section may be amended or
interpreted by the California courts or superseded by any successor statute.
D. "Commercial cannabis activity" means the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, labeling, transportation, distribution,
delivery or sale of cannabis and cannabis products in accordance with the definition in
California Business and Professions Code Section 26001, subdivision (k), as that section
and subdivision may be amended or interpreted by the California courts or superseded by
any successor statute.
E. "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 26001, subdivision (m), as that section
and subdivision may be amended or interpreted by the California courts or superseded by
any successor statute.
F. "Customer" means a natural person 21 years of age or older in accordance with
the definition in California Business and Professions Code Section 26001, subdivision
(n), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute.
G. "Delivery" means the commercial transfer of cannabis or cannabis products to a
customer and includes the use by a retailer of any technology platform in accordance with
the definition in California Business and Professions Code section 26001, subdivision
(p), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute.
H. "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 at that location, as well
as an establishment that delivers, pursuant to express authorization by local ordinance,
medical cannabis and medical cannabis products as part of a retail sale. Dispensary does
not include the following uses, so long as the location of such uses is otherwise regulated
by and strictly complies with this code and other applicable law, including California
Health and Safety Code Section 11362.5, known as the CUA, and California Health and
Safety Code Section 11362.7 and following, known as the MMP, as such sections may be
amended or interpreted by the California courts or superseded by any successor statute:
1. A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety
Code.
2. A health care facility licensed pursuant to Chapter 2 of Division 2 of the
Health and Safety Code.
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3. 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.
4. A residential care facility for the elderly licensed pursuant to Chapter 3.2 of
Division 2 of the Health and Safety Code.
5. The delivery, administration or provision of medical cannabis 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.
I. "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.
J. "Licensee" means any person holding a license under Division 10, entitled
"Cannabis," of the California Business and Professions Code, and includes the holder of
a testing laboratory license, in accordance with the definition in California Business and
Professions code section 26001, subdivision (z), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
K. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or
prepare a cannabis product, in accordance with the definition in California Business and
Professions Code section 26001, subdivision (ag), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
L. "Manufacturer" means a licensee that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly by extraction methods, or independently by means of chemical synthesis, or by
a combination of extraction and chemical synthesis at a fixed location that packages or
repackages marijuana or marijuana products or labels or re- labels its container, in,
accordance with the definition in California Business and Professions Code section
26001, subdivision (ah), as that section and subdivision may be amended or interpreted
by the California courts or superseded by any successor statute.
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M. "Medical cannabis" or "medical cannabis product" means cannabis or a cannabis
product, respectively, intended to be sold for use pursuant to the Compassionate Use Act
of 1996 (Proposition 215), found at section 11362.5 of the California Health and Safety
Code, by a medicinal cannabis patient in California who possesses a physician's
recommendation, in accordance with the definition in California Business and
Professions Code section 26001, subdivision (ai), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
N. "Primary caregiver" shall have the same definition as set forth in California
Health and Safety Code Section 11362.7, subdivision (d), as that section and subsection
may be amended or interpreted by the California courts, including but not limited, to the
California Supreme Court case of People v. Mentch (2008) 45 Cal. 4th 274, or
superseded by any successor statute.
O. "Qualified patient" shall have the same definition as set forth in California Health
and Safety Code Section 11362.7, subdivision (f), as that section and subsection may be
amended or interpreted by the California courts or superseded by any successor statute.
P. "Private residence" means a house, an apartment unit, a mobile home, or other
similar dwelling, in accordance with the definition in California Health and Safety Code
section 113 62.2, subdivision (b), paragraph (5), as that section, subdivision and paragraph
may be amended or interpreted by the California courts or superseded by any successor
statute.
Q. "Sell," "sale," and "to sell" mean any transaction whereby, for any consideration,
title to cannabis is transferred from one person to another, and includes the delivery of
cannabis or cannabis products pursuant to an order placed for the purchase of the same
and soliciting or receiving an order for the same, but does not include the return of
cannabis or cannabis products by a licensee to the licensee from whom the cannabis or
cannabis product was purchased, in accordance with the definition in California Business
and Professions Code section 26001, subdivision (as), as that section and subdivision
may be amended or interpreted by the California courts or superseded by any successor
statute.
R. "Testing laboratory" means a laboratory, facility or entity in the state that offers
or performs tests of cannabis or cannabis products and that is both of the following:
accredited by an accrediting body that is independent from all other persons involved in
commercial cannabis activity in the state and licensed by the Bureau of Cannabis Control,
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in accordance with the definition in California Business and Professions Code section
26001, subdivision (at), as that section and subdivision may be amended or interpreted by
the California courts or superseded by any successor statute.
S. "Volatile solvent" means a solvent that is or produces a flammable gas or vapor
that, when present in the air in sufficient quantities, will create explosive or ignitable
mixtures, in accordance with the definition in California Health and Safety Code section
113 62.3, subdivision (b), paragraph (3), as that section, subdivision and paragraph may
be amended or interpreted by the California courts or superseded by any successor
statute.
Section 10.15.030 Prohibition of Dispensaries
It is 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, except
for dispensaries that qualify for the exception in section 10.15.040(D).
Section 10.15.040 Commercial Cannabis Activity
A. It is 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, commercial cannabis
activity, other than the commercial cannabis activity specified in paragraphs B through D
in this section. The exceptions in paragraphs B through D shall only apply: 1) while and
to the extent the activity is conducted pursuant to and in accordance with a current, valid,
unexpired, unrevoked, fully -paid, license, permit, or other authorization or notice issued
by an authorized city official, and pursuant to and in accordance with all other applicable
state and local laws and regulations, including, but not limited to, the regulations adopted
or promulgated pursuant to section 10.15.090; and 2) to commercial cannabis activity
conducted in areas of the city where such uses are permitted in accordance• with the city's
zoning regulations.,
B. Manufacture and only business to business (non - retail) sale of topical or edible
cannabis products using cannabis infusions, infusion processes, or cannabis concentrates.
but excluding manufacture of cannabis products involving volatile solvents, and
excluding repackaging cannabis or cannabis products or re- labeling cannabis or cannabis
product containers;
C. Testing laboratories;
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D. Retail sale of cannabis and cannabis products using a delivery -only method in
accordance with section 10.15.060, at a maximum of two different locations in the city,
with no sale of cannabis or cannabis products to customers, primary care givers or
qualified patients occurring at the business location, no customers permitted at the
business location at any time, and no signage at the business location or on the delivery
vehicles indicating the presence of cannabis or cannabis products or that the seller sells
cannabis or cannabis products.
Section 10.15.050 Cannabis Cultivation
It is 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 cultivation of cannabis, other
than the cultivation of cannabis in accordance with and as specified in paragraphs A and
B in this section. The exceptions in paragraphs A and B are not subject to, and do not
require, issuance of a license, permit, or other authorization or notice issued by an
authorized city official.
A. Indoor cultivation of not more than six living cannabis plants in a private
residence, or a lesser number if both indoor cultivation pursuant to this paragraph A and
outdoor cultivation pursuant to paragraph B of this section is occurring at the private
residence, such that the total number of living cannabis plants at the private residence,
including indoor and outdoor cultivation, does not exceed a total of six living cannabis
plants; where the cultivation area does not exceed 50% or 100 square feet of the non-
living or garage area of the private residence; does not displace any required on -site
parking; is within a fully- enclosed and secure structure with no visual or olfactory
evidence of cultivation detectable from the public right of way or other private property;
does not utilize lighting that exceeds 1,200 watts; does not require the use of an electric
generator; and does not involve the use of volatile solvents; and
B. Outdoor cultivation on the grounds of a private residence, but only where less
than the six living cannabis plants permitted pursuant to paragraph A are being cultivated
within a fully- enclosed and secure structure, such that the total number of living cannabis
plants at the private residence, including indoor and outdoor cultivation, does not exceed
a total of six living cannabis plants; with no visual or olfactory evidence of cultivation
detectable from the public right of way or other private property; and where the outdoor
/to
cultivation does not utilize lighting that exceeds 1,200 watts, does not require the use of
an electric generator, and does not involve the use of volatile solvents.
Section 10.15.060 Cannabis Delivery
Subject to the requirements of California Business and Professions Code section 26080,
subdivision (b), which prohibits local jurisdictions from preventing those that are licensed
under the AUMA from transporting cannabis or cannabis products on public roads within
the jurisdiction, as that section and subdivision may be amended or interpreted by the
California courts or superseded by any successor statute, it is 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 cannabis; except for delivery of cannabis:
A. That qualifies for the exception in section 10.15.040(D); and
B. Delivery of medical cannabis to qualified patients and primary care givers in the
City of Petaluma from cannabis sellers lawfully operating outside the City of Petaluma in
accordance with all applicable state and local laws.
For cannabis delivery to qualify for the exceptions in paragraphs A or B of this section,
such delivery must 1) be carried out by a person at least 21 years of age; and 2) occur
between the hours of 8:00 a.m. and 8:00 p.m.
Section 10.15.070 Cannabis Entitlements
No cannabis dispensary, commercial cannabis activity or cannabis delivery operation,
.(other than commercial cannabis activity or cannabis dispensary or delivery operations
that qualify for one or more of the exceptions specified in paragraphs B through D of
section 10.15.040), or cannabis cultivation, however described by the applicant, will
eligible for or be issued any license, permit, or other authorization, notice or other
entitlement 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 10.15.080 Medical Cannabis
No provision of this chapter is to be construed as prohibiting qualified patients and
primary care givers in the City of Petaluma from cultivating medical cannabis, or as
prohibiting sale or delivery of medical cannabis or medical cannabis products to qualified
17
patients or primary care givers in the City of Petaluma, in accordance with all applicable
state and local laws and regulations, including the requirements of this chapter and any
regulations promulgated hereunder.
Section 10.15.090 Regulations
The City Council shall, by duly adopted resolution, adopt regulations, or authorize the
City Manager to promulgate regulations, intended to implement the requirements of this
chapter in accordance all applicable provisions of the city charter, this chapter, the CUA,
the MMP, the AUMA, and other applicable law. The City Council shall review this
chapter and any regulations adopted or promulgated pursuant to this section from time to
time, as necessary to ensure effective implementation of this chapter and protection of the
public health, safety and welfare.
Section 10.15.100 Prohibited Cannabis Activities a Public Nuisance. Any
cannabis dispensary, commercial cannabis activity, cannabis cultivation, cannabis
delivery or other cannabis use or activity caused or permitted to exist in the city in
violation of any provision of this chapter or any of the regulations adopted or
promulgated thereunder 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 3: 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 as well as pursuant
to Section 15301 of the CEQA Guidelines, which applies to the operation, repair maintenance,
permitting, and licensing or minor alteration of existing public or private structures, facilities, or
mechanical equipment involving negligible or no expansion of use beyond that existing at the
time of the lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines,
which applies to construction and location of limited numbers of new, small facilities or
structures, installation of small new equipment and facilities in small structures, and the
conversion of existing small structures from one use to another where only minor modifications
are made in the exterior of the structure.
Section 4: 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 or federal 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
unconstitutional, unlawful or otherwise invalid.
Section 5: 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 13th day of November 2017.
ADOPTED this day of
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Claire Cooper, City Clerk
2017, by the following vote:
David Glass, Mayor
APPROVED AS TO FORM:
Eric Danly, City Attorney
II.
ATTACHMENT 2
DATE: November 6, 2017
TO: Honorable Mayor and Members of the City Council
FROM: John C. Brown, City 1blanag
SUBJECT: Ordinance Revising Local Cannabis Regulations
RECOMMENDATION
It is recommended that Council approve, for first reading, an Ordinance Repealing and
Replacing Chapter 10.1 S of the Petaluma Municipal Code "Medical Marijuana ", Retitling the
Chapter "Cannabis" and Extending the City's Regulations to Medical and Non - Medical
Cannabis Uses in the City.
BACKGROUND
Petaluma adopted an ordinance regulating medical marijuana on January 21, 2007, and updated
it on January 6, 2016. The ordinance bans medical marijuana- related activities, except those
protected by the State Compassionate Care Act, The ban excludes residential grows under 100
square feet (including three mature plants grown outdoors), and deliveries to legal cardholders
from suppliers that comply with the Compassionate Care Act.
In November 2016, California voters passed Proposition 64 (Prop. 64) legalizing recreational
cannabis. Prop. 64 went into effect on November 9, 2016; commercial sales provisions are
effective January 1, 2018. The City needs to update its regulations prior to January 1, 2018 to
conform to provisions of Prop. 64; to impose local preferences where discretion exists; and to
provide clarity for those wishing to operate cannabis- related businesses.
The City Council conducted two public discussions earlier this year, related to the City's
cannabis regulations. The first was a workshop conducted on June 26, 2017; the second was part
of the regular City Council meeting of October 2, 2017.
Discussion in June 2017 focused on extending the City's current bans on medical marijuana to
recreational activities associated with cultivation, sales and delivery, manufacturing, and testing,
Council members did not want to allow commercial -scale cultivation, or extending small -scale
cultivation outside the existing exceptions provided in residential zoning. The Council expressed
a range ol'opinions, however, regarding other cannabis - related issues. Several Councilmembers
indicated a desire to review more data before offering direction to amend the City's ordinance.
Areas of interest were: crime rates associated with dispensaries in the cities that have permitted
theirs; how cannabis - related businesses address Federal banking restrictions; how other
jurisdictions justified permitting schemes in conflict with Federal law; whether any criminal
prosecution of an elected or appointed official has occurred in jurisdictions with permitting
schemes; impacts on emergency rooms and emergency medical calls related to cannabis; and
whether other cities had issued permits, then revoked them, and why.
Staff conducted research between June and October, including contact with law enforcement
agencies in California Colorado and Washington; local first responders and hospital emergency
room staff; and professionals assigned to cannabis regulation in other California agencies. Staff
also conducted extensive review of reports, studies, news articles and other written material.
Findings were presented to the City Council at the October 2, 2017 meeting, A copy of the
October 2, 2017 staff report is provided as Attachment 2.
Staff reported that dispensaries and commercial cannabis outlets can increase localized crime,
but have not thus far been shown to have appreciably done so, Increased crime as a definitive
trend, particularly in California, remains to be shown, Negative long -term health effects,
associated with children and adolescents in particular, may occur but it does not appear cannabis
use has appreciably increased demands on emergency medical services. Given the status of
federal enforcement, banking and cash handling are problematic for cannabis - related businesses,
but some solutions have been implemented and others are being further explored. It was
determined other cities have addressed legalization utilizing a permissive approach, issuing time
limited pert-nits or licenses, and have done so in conformance with their respective state laws
irrespective of the Federal government's position, Associated with this question was the concern
that decision makers may be liable for permitting uses involving a substance classified as illegal
under federal law. Staff researched this question relying on legal articles, federal court cases,,
and consultation with the Opinions Unit of the State Attorney General's Office, the local office
of the Federal Drug Enforcement Agency, and staff from cities that issue permits, Staff found no
instance of a city official held liable for violating Federal law,
Following that portion of the October 2, 2017 meeting, staff discussed with Council its
recommendations for amendments to the City's cannabis regulations. Those recommendations
attempted to preserve the City's ban with exclusions approach, recognizing cannabis - related
businesses would need a business license, and should be licensed or permitted to provide the City
the greatest flexibility to cease business operations should circumstances warrant that action.
Lased on these findings, staff recommended the existing bans contained in Chapter 10, 15, with
certain exceptions, be retained and made applicable to both medical and non - medical cannabis.
Exempt from the ban would be cultivation in residential zones of up to 6 plants, consistent with
Proposition 64; commercial sales, for a limited number of businesses that serve no customers on
site and fill mail, phone, and e- commerce orders by delivery only; and manufacturing and testing
businesses that do not employ volatile means of extracting or concentrating cannabis or its
constituent properties, for which cannabis - related activities are ancillary to primary activities,
Suggestions regarding restrictions and limiting conditions on these activities were also
recommended or discussed, as detailed in Attachment 2, Staff recommended that these
exceptions be addressed through a limited term, revocable, permitting approach, and allowed
only in zoning that provides for the particular kind of business activity,
21
The City Council considered, and accepted these recommendations, but requested that staff
broaden the exception for manufacturing and testing to allow for a broader range of activities
beyond those cons idered ancillary, and including small -scale production and boutique products.
DISCUSSION
The attached draft ordinance, which repeals and replaces Chapter 10.15 of the Petaluma
Municipal Code "Medical Marijuana" and retitles the chapter "Cannabis ", extends the City's
current marijuana regulations to Non - Medical Cannabis Uses, incorporates the changes directed
by the City Council on October 2, 2017, and is provided for your consideration, first reading and
approval. Globally, the draft ordinance replaces references to "marijuana" with "cannabis,
consistent with the enabling legislation authorized by Proposition 64. It makes a series of
changes to recitals, to provide the findings for expanding the City's ban to recreational cannabis,
changing cultivation allowances, the additional exemptions for manufacturing testing, and retail
delivery; and environmental review. Changes also modify definitions to incorporate the
language of Proposition 64 enabling legislation and to address the changes directed by the City
Council. Key sections of the draft Ordinance are Sections 10. 15.040 — "Commercial Cannabis
Activity ", 10. 15,050 — "Marijuana Cultivation, 10. 15.060 — "Cannabis Delivery ", and 10.1.5.080
— "Regulations ".
Section 10. 15,040 enumerates exceptions to the ban on commercial activities. Included in
exceptions is manufacture of certain products utilizing cannabis infusions, or infusion processes.
The section does not allow manufacture of cannabis products involving cannabis using volatile
solvents. The section allows for testing, which would include quality control, potency, and
constituent testing, but would not allow for testing requiring extractions utilizing volatile
compounds. The section provided for very limited sale of recreational cannabis and dispensing
of medicinal products, but only with no sale of cannabis products on site, no customers permitted
on site at any time, no on -site or on- delivery vehicle signage indicating the presence of cannabis
products, and at a maximum of only two locations in Petaluma. These exceptions will only be
allowed with valid, unexpired, unrevoked, fully -paid, licenses, pennits, or other authorization
issued by the City in accordance with all applicable state and laws and only when consistent with
zoning.
Section 10. 15,050 amends the residential cultivation exemption to allow for no more than six
plants, consistent with Proposition 64, which may be grown indoors or outdoors, with conditions
regulating and restricting such cultivation.
Section 10. 15,060 provides that the only delivery that may be conducted in Petaluma is that
consistent with Section 10.15.040, makes consistent with Proposition 64 the minimum allowable
age of delivery personnel, and limits hours of delivery operation between 8;00 am and 8;00 pm.
Section 10, 15.080 provides that regulations will be developed to promulgate the requirements of
this chapter. The Council will note that the recommended ordinance does not, for the most part,
detail requirements, conditions, limitations, and restrictions to be placed on cannabis related
businesses. These will be addressed in a separate set of regulations currently under development.
A resolution providing for the approval of these regulations will be presented to the City Council
2Z
for consideration in December 2017. This approach provides greater flexibility; changes to the
regulations that may be necessary or desirable in the fixture will not require an ordinance
amendment.
As noted, changes to the City's cannabis regulations need to be- completed and effective by
January 1, 2018 when State regulations regarding commercial activity go into effect. A first
reading of the draft ordinance on November 6, 2017, second reading and adoption on November
20, and the requisite 30 day waiting period that follows will assure the January 2018 deadline is
met. In addition to the regulations being developed for the December 4, 2017 meeting, and a
recommended fee structure, staff will also develop application and permit formats during the
next two months, so that Petaluma is prepared to process applications in January 2018,
FINANCIAL IMPACTS
Staff is currently determining an appropriate fee structure to accompany permits for cannabis -
related businesses, based on a full cost recovery methodology. These will be provided to the
City Council in December 2017 for consideration. As noted, the narrow approach to retail,
manufacturing, and testing activities reflected in the recommended ordinance take into
consideration the City's existing resources and the need limit staff time and expense taken in
regulatory activities.
ATTACHMENTS
1. Draft Ordinance
2. October 2, 2017 staff report
ATTACHMENT 1
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA
REPEALING AND REPLACING CHAPTER 10,15, 44MEDICAL MARIJUANA," OF
THE CITY OF PETALUMA MUNICIPAL CODE, RETITLING THE CHAPTER
"CANNABIS," AND EXTENDING THE CITY'S CANNABIS REGULATIONS TO
MEDICAL AND NON - MEDICAL CANNABIS USES IN THE CITY
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 specified circumstances; and
WHEREAS, on January 1, 2004, Senate Bill 420, known as the "Medical Marijuana
Program" (codified in Health and Safety Code Sections 11362,7 through 11362,85) ( "MMP ")
became effective to clarify the scope of the CUA; and
WHEREAS, the CUA was limited in scope in that it provided a defense from criminal
prosecution under state law for possession and cultivation of marijuana for qualified patients and
their primary caregivers; established a statewide identification program and afforded qualified
patients, persons with identification cards and their primary caregivers an affirmative defense to
certain enumerated criminal sanctions that otherwise applied to transporting, processing,
administering or distributing marijuana; and
WHEREAS, neither the CUA nor the MMP required or imposed 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, 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 DUls, 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
ZLf
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 Cal.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
WHEREAS, on August 29, 2013, Deputy U.S. Attorney General ,Tames Cole issued a
memorandum to all federal prosecutors providing guidance on the enforcement of the federal
Controlled Substances Act, 21 U.S.C, 801, el seq., regarding cannabis, indicating that
enforcement of state law by state and local law enforcement and regulatory bodies should remain
the primary means of addressing marijuana related activity in jurisdictions that have enacted
laws legalizing marijuana in some form and that have also implemented strong and effective
regulatory and enforcement systems to control the cultivation, distribution, sale and possession
of marijuana; and
WHEREAS, on November 26, 2013, the Third District Court of Appeal issued its
opinion in Maral v. Ci>), of Live Oak (2013) 221 Ca1.AppAth 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 California State Legislature
enacted tlu-ee bills; AB -243, AB- 266, and SB -6 that together established a regulatory scheme
governing medical marijuana that was collectively entitled the "Medical Marijuana Regulation
and Safety Act" ( "MMRSA" ); 43; and
WHEREAS, on December 16, 2014, President Obama signed an omnibus spending bill,
including a budget rider, referred to as the Rohrbacher -Farr amendment, which prohibited the
US, Justice Department from using federally - appropriated funds to prosecute medical marijuana
use that complied with state law in states that had legalized medical marijuana; and
WHEREAS, on December 1, 2015, the Fifth District Court of Appeal issued its opinion
in Kirby v, County of Fresno, (2015) 242 Cal.App,4"' 940, 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 California Health and Safety Code, a provision of the MMP, preempts local
criminalization of medical marijuana cultivation; and
25
WHEREAS, although the court in Kirby 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 January, 2016, the City Council adopted amendments to Chapter 10,15
of the Petaluma Municipal Code, partly in response to the MMRSA, to: prohibit commercial
cannabis activity in the City; to prohibit marijuana cultivation in the City (except for limited
indoor and outdoor cultivation by qualified patients and primary caregivers in residential areas,
subject to limitations intended to avoid nuisance conditions); to restrict medical marijuana
delivery in the City; to prohibit granting of entitlements for marijuana uses in the City; and to
declare violations of the chapter to be a public nuisance; and
WHEREAS, in United States v, UcIntosh, (2016) 833 F3d 1163, filed August 16, 2016,
the Ninth Circuit Count of appeals construed the Rohr•baeher -Farr budget rider as prohibiting the
U, S, Department of Justice from spending fiends from relevant appropriations acts for the
prosecution of individuals who engaged in conduct permitted by state medical marijuana laws
and who frilly complied with such laws; and
WHEREAS, in November, 2016, California voters approved the Control, Regulate and
Tax Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of Marijuana
Act ( "AUMA "), which established a regulatory scheme for nonmedical marijuana similar to that
established for medical marijuana under the MMRSA; and
WHEREAS, following its adoption by California voters, the AUMA was codified in
various provisions of state law, including in Article 2 entitled "Cannabis" in the Uniform
Controlled Substances Act within the California Health and Safety Code, and in Division 10
entitled the "Medicinal and Adult -Use Cannabis Regulation and Safety Act" of the California
Business and Professions Code; and
WHEREAS, the AUMA decriminalized for purposes of state law, subject to specified
restrictions, certain specified cannabis uses pursuant to California Health and Safety Code
section 11362.1, including: possession, processing, transporting, purchasing, obtaining and
giving away to persons 21 years old or older without compensation not more than 28,5 grams of
non- concentrated cannabis or not more than 8 grams of concentrated cannabis, including
carmabis contained in cannabis products; possessing, planting, cultivating, harvesting, drying or
I
processing not more than six living cannabis plants and possessing the cannabis produced by the
plants; smoking or ingesting cannabis or cannabis products, and possessing, transporting,
purchasing, obtaining, using, manufacturing, or giving away to persons 21 years of age or older
without compensation cannabis accessories,; and
WHEREAS, in accordance with California Health and Safety Code section 11362,2,
subdivision (a), the personal cultivation of cannabis permitted under the AUMA must be in
accordance with reasonable local regulations; must ensure that living plants and cannabis they
produce in excess of 28,5 grams are kept within a private residence or upon the grounds of a
private residence in a locked space not visible from a public place; and cannot exceed six living
plants cultivated, harvested, dried or processed within a single private residence at one time; and
WHEREAS, in accordance with California Health and Safety Code section 11362,2,
subdivision (b), paragraphs (1) and (2), the AUMA permits local agencies to impose reasonable
regulations on personal cannabis cultivation and processing, so long as such regulations are not a
complete prohibition on such activity within a private residence or an accessory structure to a
private residence that is fully enclosed and secure; and
WHEREAS, in accordance with California Business and Professions Code section
26080, subdivision (b), the AUMA prohibits local jurisdictions from preventing those that are
licensed under the AUMA from transporting cannabis or cannabis products on public roads; and
WHEREAS, in accordance with California Health and Safety Code section 113 62,2, subdivision
(b), paragraph (3), the AUMA authorizes local agencies to completely ban. outdoor cultivation of
cannabis on the grounds of private residences, unless and until the California Attorney General
determines that adult use of cannabis is lawfid under federal law, and
WHEREAS, in accordance with California Health and Safety Code section 113 62,45,
subdivisions (f) and (g), the AUMA permits public and private employers to maintain drug and
alcohol free workplaces, to prohibit cannabis use by employees, and to restrict or prohibit
cannabis activity in buildings owned, leased or occupied by a local agency; and
WHEREAS, in accordance with California Business and Professions Cade section
26200, subdivision (a), nothing in the AUMA supersedes or limits the authority of a local
jurisdiction to regulate or prohibit within the local jurisdiction the establishment or operation of
cannabis businesses that are subject to state license requirements under the AUMA ; and
WHEREAS, cannabis 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,
2%
manufacture, distribute, dispense, or possess with intent to manufacture, distribute or dispense
cannabis for any reason, even though state law decriminalizes under specified state statutes
specified use of cannabis by specified persons; and
WHEREAS, the Rohrbacher -Farr Amendment, which prohibits the U.S, Justice
Department from using federally- appropriated funds to prosecute medical marijuana use that
complies with state law in states that have legalized medical marijuana, has been extended most
recently in the spending bill President Trump signed on May 5, 2017, and remains in effect; and
WHEREAS, the August 29, 2013 memorandum issued by Deputy U.S. Attorney General
James Cole has not been rescinded and remains in effect directing that enforcement of state law
by state and local law enforcement and regulatory bodies should remain the primary means of
addressing marijuana related activity in jurisdictions that have enacted laws-legalizing marijuana
in some form and that have also implemented strong and effective regulatory and enforcement
systems to' control the cultivation, distribution, sale and possession of marijuana; and
WHERE, AS, the' City Council has held workshops and discussed potential updates to the
City's cannabis regulations in response to the AUMA on June 26, 2017 and on October 2, 2017,
at which workshops the City Council received comments from various stakeholders and
interested parties, and provided City staff policy direction; and
WHEREAS, the City Council's direction to staff regarding adoption of local cannabis
regulations following enactment of the AUMA reflects a dual focus on recognizing and
respecting the will of the California voters in approving the AUMA, through adoption of less
restrictive local cannabis regulations, while at the same time promoting the public health, safety
and welfare of the Petaluma community through strong and effective local regulatory and
enforcement systems to, in conjunction with state law, control the cultivation, distribution, sale
and possession of cannabis in the City; and
M-1
FINDINGS
WHEREAS, the City of Petaluma Police Department, City residents and other public
entities have reported adverse impacts from the outdoor cultivation of cannabis within the City,
including offensive odors, increased risk of trespassing and burglary, and acts of violence in
connection with the commission of such crimes or the occupants' attempts to prevent such
crimes; and
WHEREAS, the strong odor of cannabis plants, which increases as the plants mature, is
offensive to many individuals and creates an attractive nuisance, alerting people to the location
of valuable cannabis 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 cannabis 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 attributed to illegal indoor cannabis cultivation
operations; and
WHEREAS, to protect the public health, safety, and welfare, it is the desire of the City
Council to replace Chapter 10,15 of the City of Petaluma Municipal Code prohibiting medical
marijuana dispensaries and commercial marijuana activity, and limiting medical marijuana
cultivation, and delivery of marijuana within the City, with a new chapter 10,15 entitled
"Cannabis" making medical and nonmedical cannabis subject to the City's cannabis regulations
in accordance with the City's general police power pursuant to Article XI, Section 7 of the
California Constitution and the authority for local cannabis regulations contained in the AUMA;
and
WHEREAS, mindful of the fact that cannabis possession and use is prohibited under
federal law and 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 cannabis
under state law, or to engage in any public nuisance; and
WHEREAS, for purposes of compliance with the California Environmental Quality Act
( "CFQA ") and the CEQA Guidelines, the City Council finds that new Petaluma Municipal Code
Chapter 10.15 will result in negligible environmental impacts, if any, because a) the exceptions
in Section 10. 15,040 for manufacture of topical or edible cannabis products, cannabis testing
laboratories and cannabis delivery -only sales are, pursuant to that section, subject to granting of a
license, permit or other authorization or notice issued by an authorized city official, which
MIF
discretionary approval will be subject to CEQA review for each such proposed use; and b) the
revisions to the City's cannabis cultivation regulations pursuant to Section 10,15,050 are minor
and intended only to harmonize the regulations with the AUMA, with negligible anticipated
environmental impacts; and
WHEREAS, in-view of the negligible environmental impacts anticipated from new
Chapter 10,15 (that will not be subject to subsequent CEQA review), this ordinance is exempt
from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines because there is no
possibility that the activity may have a significant impact on the environment, as well as pursuant
to Section 15301 of the CEQA Guidelines, whicli applies to the operation, repair maintenance,
permitting, and licensing or minor alteration of existing public or private structures, facilities, or
mechanical equipment involving negligible or no expansion of use beyond that existing at the
time of the lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines,
which applies to construction and location of limited numbers of new, small facilities or
structures, installation of small new equipment and facilities in small structures, and the
conversion of existing small structures from one use to another where only minor modifications
are made in the exterior of the structure;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PETALUMA AS FOLLOWS:
Section 1: Chapter 10.15, Entitled "Medical Marijuana," of the Petaluma Municipal
Code, is hereby repealed in its entirety,
Section 2: The above recitals are hereby declared to be true and correct are incorporated
into this ordinance by this reference,
Section 3: A New Chapter 10,15, Entitled "Cannabis," is hereby added to the Petaluma
Municipal Code, to read as follows;
CHAPTER 10.15
CANNABIS
Section 10.15.010 Purpose,
The dual purpose of this chapter is to recognize and respect the will of the California
voters in approving in November, 2016, Proposition 64, the Control, Regulate and Tax
Adult Use of Marijuana Act, referred to as the Adult Use of Marijuana Act ( "AUMA "),
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which legalized, subject to certain restrictions, specified cannabis uses for purposes of
state law, through adoption of less restrictive local cannabis regulations, while at the
same time promoting the public health, safety and welfare of the Petaluma community
by;
A. Protecting citizens from the secondary impacts associated with cannabis
dispensaries and commercial cannabis activity, including, but not limited to, increased
public consumption of cannabis and the potential for increased cannabis DUls, illegal
resale of cannabis obtained at low cost from dispensaries, loitering, robbery, assaults, and
other crimes,
B. Protecting citizens from secondary impacts associated with commercial cannabis
activity such as cannabis 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 cannabis delivery, including, but
not limited to, delivery during nighttime hours and delivery by minors
D. Preventing increased demands for police response resulting from activities at
cannabis dispensaries and cultivation sites, commercial cannabis activity and .cannabis
delivery and thereby avoiding reduction in the ability of the city's public safety officers
to respond to other calls for service.
Section 10,15,020 Definitions
For purposes of this chapter, the following terms are defined as follows;
A. "Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis
indica, or Cannabis iuderalis, 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, as
defined in California Business and Professions Code section 26001, subdivision (0, as
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that section and subdivision may be amended or interpreted by the California courts or
superseded by any successor statute, "Cannabis" also means the separated resin, whether
crude or purified, obtained from cannabis, "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. "Cannabis" does not mean "industrial hemp"
as defied by Section 11018,5 of the California Health and. Safety Code, as that section
may be amended or interpreted by the California courts or superseded by any successor
statute,
B. "Cannabis concentrate" means cannabis that has undergone a process to
concentrate one or more active cannabinoids, thereby increasing the product's potency, in
accordance with the definition in California Business and Professions Code section
26001, subdivision (h), as that section and subdivision may be amended or interpreted by
the California courts or superseded by any successor statute,
C. "Cannabis products" means cannabis that has undergone a process whereby the
plant material has been transformed into a concentrate; including, but not limited to,
concentrated cannabis, or an edible or topical product containing cannabis or
concentrated cannabis and other ingredients in accordance with the definition in
California Health and Safety Code section 11018,1, as that section may be amended or
interpreted by the California courts or superseded by any successor statute.
D. "Commercial cannabis activity" means the cultivation, possession, manufacture,
'distribution, processing, storing, laboratory testing, labeling, transportation, distribution,
delivery or sale of cannabis and cannabis products in accordance with the definition in
California Business and Professions Code Section 260.01, subdivision (k), as that section
and subdivision may be amended or interpreted by the California courts or superseded by
any successor statute,
E. "Cultivation" means any activity involving the planting, growing, harvesting,
drying, curing, grading, or trimming of cannabis, in accordance with the definitions in
California Business and Professions Code Section 26001, subdivision (in), as that section
and subdivision may be amended or interpreted by the California courts or superseded by
any successor statute.
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F. "Customer" means a natural person 21 years of age or older in accordance with
the definition in California Business and Professions Code Section 26001, subdivision
(n), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute.
G. "Delivery" means the commercial transfer of cannabis or cannabis products to a
customer and includes the use by a retailer of any technology platform in accordance with
the'definition in California Business and Professions Code section 26001, subdivision
(p), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute.
H. "Dispensary" means a facility where medical cannabis, medical camlabis
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, Dispensary does not
include the following uses, so long as the location of such uses is otherwise regulated by
and strictly complies with this code and other applicable law, including California Health
and Safety Code Sectionl1362,5, as such section may be amended or interpreted by the
California courts or superseded by any successor statute;
1. A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety
Code,
2. A health care facility licensed pursuant to Chapter 2 of Division 2 of the
Health and Safety Code,
3. 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.
4, A residential care facility for the elderly licensed pursuant to Chapter 32 of
Division 2 of the Health and Safety Code,
5. The delivery, administration or provision of medical cannabis 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
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with an identification card who has designated the individual as a primacy
caregiver,
1, "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,
J. "Licensee" means any person holding a license under Division 10, entitled
"Cannabis," of the California Business and Professions Code, and includes the holder of
a testing laboratory license, in accordance with the definition in California Business and
Professions code section 26001, subdivision (z); as that section and subdivision may be
amended or interpreted by the California courts' or superseded by any successor statute,
K. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or
prepare a cannabis product, in accordance with the definition in California Business and
Professions Code section 26001, subdivision (ag), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute,
L. "Manufacturer" means a licensee that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly by extraction methods, or independently by means of chemical synthesis, or by
a combination of extraction and chemical synthesis at a fixed location that packages or
repackages cannabis or cannabis products or labels or re- labels its container, in
accordance with the definition in California Business and Professions Code section
26001, subdivision (ah); as that section and subdivision may be amended or interpreted
by the California courts or superseded by any successor statute,
M, "Medical cannabis" or "medical cannabis product" means cannabis or a cannabis
product, respectively, intended to be sold for use pursuant to the Compassionate Use Act
of 1996 (Proposition 215), found at section 11362,5 of the California Health and Safety
Code, by a medicinal cannabis patient in California who possesses a physician's
recommendation, in accordance with the definition in California Business and
Professions Code section 26001, subdivision (ai), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute,
31
N. "Primary caregiver" shall have the same definition as set forth in California
Health and Safety Code Section 113623, subdivision (d), as that section and subsection
may be amended or interpreted by the California courts, including but not limited, to the
California Supreme Court case of People v. Mentch (2008) 45 Cal, 4th 214, or
superseded by any successor statute.
0. "Qualified patient" shall have the same definition as set forth in California Health
and Safety Code Section 1 1362,7, subdivision (f), as that section and subsection may be
amended or interpreted by the California courts or superseded by any successor statute.
P. "Private residence" means a house, an apartment unit, a mobile home, or other
similar dwelling, in accordance with the definition in California Health and Safety Code
section 11362.2, subdivision (b), paragraph (5), as that section, subdivision and paragraph
may be amended or interpreted by the California courts or superseded by any successor
statute,
Q. "Sell," "sale," and "to sell" mean any transaction whereby, for any consideration,
title to cannabis is transferred from one person to another, and includes.the delivery of
cannabis or cannabis products pursuant to an order placed for the purchase of the same
and soliciting or receiving an order for the same, but does not include the return of
cannabis or cannabis products by a licensee to the licensee from whom the cannabis or
cannabis product was purchased, in accordance with the definition in California Business
and Professions Code section 26001, subdivision (as), as that section and subdivision
may be amended or interpreted by the California courts or superseded by any successor
statute.
R. "Testing laboratory" means a laboratory, facility or entity in the state that offers
or performs tests of cannabis or cannabis products and that is both of the following;
accredited by an accrediting body that is independent from all other persons involved in
commercial cannabis activity in the state and licensed by the Bureau of Cannabis Control,
in accordance with the definition in California Business and Professions Code section
26001, subdivision (at), as that section and subdivision may be amended or interpreted by .
the California courts or superseded by any successor statute.
S. "Volatile solvent" means a solvent that is or produces a flammable gas or vapor
that, when present in the air in sufficient quantities, will create explosive or ignitable
mixtures, in accordance with the definition in California Health and Safety Code section
113 623, subdivision (b), paragraph (3), as that section, subdivisiob and paragraph may
be amended or interpreted by the California courts or superseded by any successor
statute.
Section 10.15.030 Prohibition of Dispensaries
It is 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.
Section 10.15.040 Commercial Cannabis Activity
A. It is 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, commercial cannabis
activity, other than the commercial cannabis activity specified in paragraphs B through D
in this section. The exceptions in paragraphs B through D shall only apply; 1) while and
to the extent the activity is conducted pursuant to and in accordance with a current, valid,
unexpired, unrevoked, fully -paid, license, permit, or other authorization or notice issued
by an authorized city official, and pursuant to and in accordance with all other applicable
state and local laws and regulations, including, but not limited to, the regulations adopted
or promulgated pursuant to section 10,15.080; and 2) to commercial cannabis activity
conducted in areas of the city where such uses are permitted uses in accordance with the
city's zoning regulations.
B, Manufacture and sale of topical or edible cannabis products using cannabis
infusions or infusion processes, but excluding manufacture of cannabis products
involving volatile solvents or cannabis concentrates, including, but not limited to,
cannabis concentrates using volatile solvents, and excluding repackaging cannabis or
cannabis products or re- labeling cannabis or cannabis product containers;
C. Testing laboratories;
D. Sale of cannabis and cannabis products using a delivery -only method in
accordance with section 10.15.060, at a maximum of two different locations in the city,
with no sale of cannabis or cannabis products on site, no customers permitted on site at
any time, and no on -site or on- delivery vehicle signage indicating the presence of
cannabis or cannabis products or that the seller sells cannabis or cannabis products,
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Section 10.15.050 Cannabis Cultivation
It is 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 cultivation of cannabis, other
than the cultivation of cannabis in accordance with and as specified in paragraphs A and
B in this section. The exceptions in paragraphs A and B are not subject to, and do not
require, issuance of a license, permit, or other authorization or notice issued by an
authorized city official,
A. Indoor cultivation of not more than six living cannabis plants in a private
residence, or a lesser number if both indoor cultivation pursuant to this paragraph A and
outdoor cultivation pursuant to paragraph B of this section is Occurring at the private
residence, such that the total number of living cannabis plants at the private residence,
including indoor and outdoor cultivation, does not exceed a total of six living cannabis
plants; where the cultivation area does not exceed 50% or 100 square feet of the non-
living or garage area of the private residence; does not displace any required on -site
parking; is within a fully- enclosed and secure structure with no visual or olfactory
evidence of cultivation detectable from the public right of way or other private property;
does not utilize lighting that exceeds 1,200 watts; does not require the use of an.electric
generator; and does not involve the use of volatile solvents; and
B. Outdoor cultivation on the grounds of a private residence, but only where less
than the six living cannabis plants permitted pursuant to paragraph A are being cultivated
within a fully - enclosed and secure stricture, such that the total number of living cannabis
plants at the private residence, including indoor and outdoor cultivation, does not exceed
a total of six living cannabis plants; -with no visual or olfactory evidence of cultivation
detectable from the public right of way or other private property; and where the outdoor
cultivation does not utilize lighting that exceeds 1,200 watts, does not require the use of
an electric generator, and does not involve the use of volatile solvents,
M
Section 10.15.060 Cannabis Delivery
Subject to the requirements of California Business and Professions Code section 26080,
subdivision (b), as that section and subdivision may be amended or interpreted by the
California courts or superseded by any successor statute, it is 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 cannabis, except for delivery of cannabis that
qualifies for the exception in section 10,15,040(C) where;
A, The delivery is carried out by a person at least 21 years of age; and
B. The delivery occurs between the hours of 8;00 a,m, and 8;00 p,m,
Section 10.15.070 Cannabis Entitlements
No cannabis dispensary, commercial cannabis activity or cannabis delivery operation,
(other than commercial cannabis activity or cannabis delivery operations that qualify for
one or more of the exceptions specified in paragraphs b through D of section 10, 15.040),
or cannabis cultivation, however described by the applicant, will eligible for or be issued
any license, permit, or other authorization, notice or other entitlement 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 10,15.080 Regulations
The City Council shall, by duly adopted resolution, adopt regulations, or authorize the
City Manager to promulgate regulations, intended to implement the requirements of this
chapter in accordance all applicable provisions of the city charter, this chapter, the
AUMA, and other applicable law. Regulations adopted or promulgated pursuant to this
section shall be reviewed from time to time as necessary to ensure effective
implementation of this chapter and protection of the public health, safety and welfare.
Section 10.15.090 Prohibited Cannabis Activities a Public Nuisance. Any
cannabis dispensary, commercial cannabis activity, cannabis cultivation, cannabis
delivery or other use or activity caused or permitted to exist in the city in violation of any
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provision of this chapter or any of the regulations adopted or promulgated thereunder
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 4: 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 as well as pursuant
to Section 15301 of the CEQA Guidelines, which applies to the operation, repair maintenance,
permitting, and licensing or minor alteration of existing public or private structures, facilities, or
mechanical equipment involving negligible or no expansion of use beyond that existing at the
time of the lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines,
which applies to construction and location of limited numbers of new, small facilities or
structures, installation of small new equipment and facilities in small structures, and the
conversion of existing small structures from one use to another where only minor modifications
are made in the exterior of the structure,
Section 5: 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 or federal 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
unconstitutional, unlawful or otherwise invalid,
Section 6: The City Clerk is hereby directed to publish or post this ordinance or a synopsis
fbi- the period and in the manner provided by the City Charter and any other applicable law,
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INTRODUCED and ordered posted /published this sixth day of November 2017.
ADOPTED this twentieth day of November, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
David Glass, Mayor
APPROVED AS TO FORM:
Claire Cooper, City Clerk Eric Danly, City Attorney
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ATTACHMENT 3
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA
REPEALING AND REPLACING CHAPTER 10.15, "MEDICAL MARIJUANA," OF
THE CITY OF PETALUMA MUNICIPAL CODE, RETITLING THE CHAPTER
"CANNABIS," AND EXTENDING THE CITY'S CANNABIS REGULATIONSTO
MEDICAL AND NON - MEDICAL CANNABIS USES IN THE CITY
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 specified circumstances; and
WHEREAS, on January 1, 2004, Senate Bill 420, known as the "Medical Marijuana
Program" (codified in Health and Safety Code Sections 11362.7 through 11362.85) ( "MMP")
became effective to clarify the scope of the CUA; and
WHEREAS, the CUA was limited in scope in that it provided a defense from criminal
prosecution under state law for possession and cultivation of marijuana for qualified patients and
their primary caregivers; established a statewide identification program and afforded qualified
patients, persons with identification cards and their primary caregivers an affirmative defense to
certain enumerated criminal sanctions that otherwise applied to transporting, processing,
administering or distributing marijuana; and
WHEREAS, neither the CUA nor the MMP required or imposed 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, 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
41
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 CalAth 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
WHEREAS, on August 29, 2013, Deputy U.S. Attorney General James Cole issued a
memorandum to all federal prosecutors providing guidance on the enforcement of the federal
Controlled Substances Act, 21 U.S.C. 801, et seq., regarding cannabis, indicating that
enforcement of state law by state and local law enforcement and regulatory bodies should remain
the primary means of addressing marijuana related activity in jurisdictions that have enacted
laws legalizing marijuana in some form and that have also implemented strong and effective
regulatory and enforcement systems to control the cultivation, distribution, sale and possession
of marijuana; and
WHEREAS, on November 26, 2013, the Third District Court of Appeal issued its
opinion in Maral v. City of Live Oak, (2013) 221 Cal.AppAth 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 California State Legislature
enacted three bills: AB -243, AB- 266, and SB -643 that together established a regulatory scheme
governing medical marijuana that was collectively entitled the "Medical Marijuana Regulation
and Safety Act" ( "MMRSA "); and
WHEREAS, on December 16, 2014, President Obama signed an omnibus spending bill,
including a budget rider, referred to as the Rohrbacher -Farr amendment, which prohibited the
U.S. Justice Department from using federally - appropriated funds to prosecute medical marijuana
use that complied with state law in states that had legalized medical marijuana; and
WHEREAS, on December 1, 2015, the Fifth District Court of Appeal issued its opinion
in Kirby v. County of Fresno, (2015) 242 Ca1.App.41h 940, 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 California Health and Safety Code, a provision of the MMP, preempts local
criminalization of medical marijuana cultivation; and
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WHEREAS, although the court in Kirby 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 January, 2016, the City Council adopted amendments to Chapter 10.15
of the Petaluma Municipal Code, partly in response to the MMRSA: to prohibit commercial
cannabis activity in the City; to prohibit marijuana cultivation in the City (except for limited
indoor and outdoor cultivation by qualified patients and primary caregivers in residential areas,
subject to limitations intended to avoid nuisance conditions); to restrict medical marijuana
delivery in the City; prohibit granting of entitlements for marijuana uses in the City; and to
declare violations of the chapter to be a public nuisance; and
WHEREAS, in United States v. McIntosh, (2016) 833 F3 1163, filed August 16, 2016,
the Ninth Circuit Court of appeals construed the Rohrbacher -Farr budget rider as prohibiting the
U. S. Department of Justice from spending funds from relevant appropriations acts for the
prosecution of individuals who engaged in conduct permitted by state medical marijuana laws
and who fully complied with such laws; and
WHEREAS, in November, 2016, California voters approved the Control, Regulate and
Tax Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of Marijuana
Act ( "AUMA "), which established a regulatory scheme for nonmedical marijuana similar to that
established for medical marijuana under the MMRSA; and
WHEREAS, following its adoption by California voters, the AUMA was codified in
various provisions of state law, including in Article 2 entitled "Cannabis" in the Uniform
Controlled Substances Act within the California Health and Safety Code, and in Division 10
entitled the "Medicinal and Adult -Use Cannabis Regulation and Safety Act" of the California
Business and Professions Code; and
WHEREAS, the AUMA decriminalized for purposes of state law, subject to specified
restrictions, certain specified nonmedical cannabis uses pursuant to California Health and Safety
Code section 11362.1, including: possession, processing, transporting, purchasing, obtaining and
giving away to persons 21 years old or older, without compensation, not more than 28.5 grams of
non - concentrated cannabis or not more than 8 grams of concentrated cannabis; including
cannabis contained in cannabis products; possessing, planting, cultivating, harvesting, drying or
processing not more than six living cannabis plants and possessing the cannabis produced by the
y3
plants; smoking or ingesting cannabis or cannabis products, and possessing, transporting,
purchasing, obtaining, using, manufacturing, or giving away to persons 21 years of age or older
without compensation cannabis accessories,; and
WHEREAS, in accordance with California Health and Safety Code section 113 62.2,
subdivision (a), the personal cultivation of cannabis permitted under the AUMA must be in
accordance with reasonable local regulations; must ensure that living plants and cannabis they
produce in excess of 28.5 grams are kept within a private residence or upon the grounds of a
private residence in a locked space not visible from a public place; and cannot exceed six living
plants cultivated, harvested, dried or processed within a single private residence at one time; and
WHEREAS, in accordance with California Health and Safety Code section 113 62.2,
subdivision (b), paragraphs (1) and (2), the AUMA permits local agencies to impose reasonable
regulations on personal cannabis cultivation and processing, so long as such regulations are not a
complete prohibition on such activity within a private residence or an accessory structure to a
private residence that is fully enclosed and secure; and
WHEREAS, in accordance with California Business and Professions Code section
26080, subdivision (b), the AUMA prohibits local jurisdictions from preventing those that are
licensed under the AUMA from transporting cannabis or cannabis products on public roads; and
WHEREAS, in accordance with California Health and Safety Code section 11362.2, subdivision
(b), paragraph (3), the AUMA authorizes local agencies to completely ban outdoor cultivation of
cannabis on the grounds of private residences, unless and until the California Attorney General
determines that adult use of cannabis is lawful under federal law, and
WHEREAS, in accordance with California Health and Safety Code section 11362.45,
subdivisions (f) and (g), the AUMA permits public and private employers to maintain drug and
alcohol free workplaces, to prohibit cannabis use by employees, and to restrict or prohibit
cannabis activity in buildings owned, leased or occupied by a local agency; and
WHEREAS, in accordance with California Business and Professions Code section
26200, subdivision (a), nothing in the AUMA supersedes or limits the authority of a local
jurisdiction to regulate or prohibit within the local jurisdiction the establishment or operation of
cannabis businesses that are subject to state license requirements under the AUMA ; and
WHEREAS, cannabis 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
yy
cannabis for any reason, even though state law decriminalizes under specified state statutes
specified use of cannabis by specified persons; and
WHEREAS, the Rohrbacher -Farr Amendment, which prohibits the U.S. Justice
Department from using federally - appropriated funds to prosecute medical marijuana use that
complies with state law in states that have legalized medical marijuana, has been extended most
recently in the spending bill President Trump signed on May 5, 2017, and remains in effect; and
WHEREAS, the August 29, 2013 memorandum issued by Deputy U.S. Attorney General
James Cole has not been rescinded and remains in effect directing that enforcement of state law
by state and local law enforcement and regulatory bodies should remain the primary means of
addressing marijuana related activity in jurisdictions that have enacted laws legalizing marijuana
in some form and that have also implemented strong and effective regulatory and enforcement
systems to control the cultivation, distribution, sale and possession of marijuana; and
WHEREAS, the City Council has held workshops and discussed potential updates to the
City's cannabis regulations in response to the AUMA on June 26, 2017 and on October 2, 2017,
at which workshops the City Council received comments from various stakeholders and
interested parties, and provided City staff policy direction; and
WHEREAS, the City Council considered a new draft ordinance entitled "Cannabis"
intended to replace Chapter 10.15 in the Petaluma Municipal Code at the November 6, 2017 City
Council meeting, at which meeting the City Council discussed comments on the draft ordinance
received from community members and other stakeholders and gave staff further direction
regarding preparation of an ordinance to replace existin Chapter 10.15 in the Petaluma
Municipal Code; and
WHEREAS, the City Council's direction to staff regarding adoption of local cannabis
regulations following enactment of the AUMA reflects a dual focus on recognizing and
respecting the will of the California voters in approving the AUMA, through adoption of less
restrictive local cannabis regulations, while at the same time promoting the public health, safety
and welfare of the Petaluma community through strong and effective local regulatory and
enforcement systems to, in conjunction with state law, control the cultivation, distribution, sale
and possession of cannabis in the City; and
FINDINGS
WHEREAS, the City of Petaluma Police Department, City residents and other public
entities have reported adverse impacts from the outdoor cultivation of cannabis within the City,
including offensive odors, increased risk of trespassing and burglary, and acts of violence in
"T.45r
connection with the commission of such crimes or the occupants' attempts to prevent such
crimes; and
WHEREAS, the strong odor of cannabis plants, which increases as the plants mature, is
offensive to many individuals and creates an attractive nuisance, alerting people to the location
of valuable cannabis 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 cannabis 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 attributed to illegal indoor cannabis cultivation
operations; and
WHEREAS, to protect the public health, safety, and welfare, it is the desire of the City
Council to replace Chapter 10.15 of the City of Petaluma Municipal Code prohibiting medical
marijuana dispensaries and commercial marijuana activity, and limiting medical marijuana
cultivation, and delivery of marijuana within the City, while preserving access of qualified
caregivers and primary caregivers to medical cannabis, with a new chapter 10.15 entitled
"Cannabis" making medical and nonmedical cannabis subject to the City's cannabis regulations
in accordance with the City's general police power pursuant to Article XI, Section 7 of the
California Constitution and the authority for local cannabis regulations contained in the AUMA;
and
WHEREAS, mindful of the fact that cannabis possession and use is prohibited under
federal law and 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 cannabis
under state law, or to engage in any public nuisance; and
WHEREAS, for purposes of compliance with the California Environmental Quality Act
( "CEQA ") and the CEQA.Guidelines, the City Council finds that new Petaluma Municipal Code
Chapter 10.15 will result in negligible environmental impacts, if any, because a) the exceptions
in Section 10.15.040 for manufacture and sale of topical or edible cannabis products, cannabis
testing laboratories and cannabis delivery -only sales are, pursuant to that section, subject to
granting of a license, permit or other authorization or notice issued by an authorized city official,
which discretionary approval will be subject to CEQA review for each such proposed use; and b)
the revisions to the City's cannabis cultivation regulations pursuant to Section 10. 15.050 are
minor and intended only to harmonize the regulations with the AUMA, with negligible
anticipated environmental impacts; and
0
WHEREAS, in view of the negligible environmental impacts anticipated from new
Chapter 10.15 (that will not be subject to subsequent CEQA review), this ordinance is exempt
from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines because there is no
possibility that the activity may have a significant impact on the environment, as well as pursuant
to Section 15301 of the CEQA Guidelines, which applies to the operation, repair maintenance,
permitting, and licensing or minor alteration of existing public or private structures, facilities, or
mechanical equipment involving negligible or no expansion of use beyond that existing at the
time of the lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines,
which applies to construction and location of limited numbers of new, small facilities or
structures, installation of small new equipment and facilities in small structures, and the
conversion of existing small structures from one use to another where only minor modifications
are made in the exterior of the structure;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PETALUMA AS FOLLOWS:
Section 1: Chapter 10.15, Entitled "Medical Marijuana," of the Petaluma Municipal
Code, is hereby repealed in its entirety.
Section 2: The above recitals are hereby declared to be true and correct and are
incorporated into this ordinance by this reference.
Section 3: A New Chapter 10.15, Entitled "Cannabis," is hereby added to the Petaluma
Municipal Code, to read as follows:
q7
CHAPTER 10.15
CANNABIS
Section 10.15.010 Purpose.
The dual-purpose of this chapter is to recognize and respect the will of the California
voters in approving in November, 2016, Proposition 64, the Control, Regulate and Tax
Adult Use of Marijuana Act, referred to as the Adult Use of Marijuana Act ( "AUMA "),
which legalized, subject to certain restrictions, specified nonmedical cannabis uses for
purposes of state law, through adoption of less restrictive local cannabis regulations,
while at the same time promoting the public health, safety and welfare of the Petaluma
community by:
A. Protecting citizens from the secondary impacts associated with cannabis
dispensaries and commercial cannabis activity, including, but not limited to, increased
public consumption of cannabis and the potential for increased cannabis DUIs, illegal
resale of cannabis obtained at low cost from dispensaries, loitering, robbery, assaults, and
other crimes;-
B. Protecting citizens from secondary impacts associated with commercial cannabis
activity such as cannabis 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 cannabis delivery, including, but
not limited to, delivery during nighttime hours and delivery by minors,-
D. Preventing increased demands for police response resulting fiom activities at
cannabis dispensaries and cultivation sites, commercial cannabis activity and cannabis
delivery and thereby avoiding reduction in the ability of the city's public safety officers
to respond to other calls for service; and
q%
D-. E. Maintaining the access of ialified patients and primarcaregivers to medical
cannabis and medical cannabis products.
Section 10.15.020 Definitions.
For purposes of this chapter, the following terms are defined as follows:
A. "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, as
defined in California Business and Professions Code section 26001, subdivision (f), as
that section and subdivision may be amended or interpreted by the California courts or
superseded by any successor statute, "Cannabis" also means the separated resin, whether
crude or purified, obtained from cannabis. "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. "Cannabis" does not mean "industrial hemp"
as defined by Section 11018.5 of the California Health and Safety Code, as that section
may be amended or interpreted by the California courts or superseded by any successor
statute. "Cannabis" includes "medical cannabis."
B. "Cannabis concentrate" means cannabis that has undergone a process to
concentrate one or more active cannabinoids, thereby increasing the product's potency, in
accordance with the definition in California Business and Professions Code section
26001, subdivision (h), as that section and subdivision maybe amended or interpreted by
the California courts or superseded by any successor statute.
C. "Cannabis products" means cannabis that has undergone a process whereby the
plant material has been transformed into a concentrate, including, but not limited to,
concentrated cannabis, or an edible or topical product containing marijuana or
concentrated cannabis and other ingredients in accordance with the definition in
California Health and Safety Code section 11018. 1, as that section may be amended or
interpreted by the California courts or superseded by any successor statute.
D. "Commercial cannabis activity" means the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, labeling, transportation, distribution,
Z9
delivery or sale of cannabis and cannabis products in accordance with the definition in
California Business and Professions Code Section 26001, subdivision (k), as that section
and subdivision may be amended or interpreted by the California courts or superseded by
any successor statute.
E. "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 26001, subdivision (m), as that section
and subdivision may be amended or interpreted by the California courts or superseded by
any successor statute.
F. "Customer" means a natural person 21 years of age or older in accordance with
the definition in California Business and Professions Code Section 26001, subdivision
(n), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute.
G. "Delivery" means the commercial transfer of cannabis or cannabis products to a
customer and includes the use by a retailer of any technology platform in accordance with
the definition in California Business and Professions Code section 26001, subdivision
(p), as that section and subdivision may be amended or interpreted by the California
courts or superseded by any successor statute.
H. "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 at that location,
irk ° as well as an establishment that delivers, pursuant to express authorization by
local ordinance, medical cannabis and medical cannabis products as part of a retail sale.
Dispensary does not include the following uses, so long as the location of such uses is
otherwise regulated by and strictly complies with this code and other applicable law;
including California Health and Safety Code Section-11362.5, known as the C TJA, and
California Health and Safety Code Section 11362.7 and followin -a, known as the MMP,
as such sections may be amended or interpreted by the California courts or superseded by
any successor statute:
1. A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety
Code.
2. A health care facility licensed pursuant to Chapter 2 of Division 2 of the
Health and Safety Code.
3. 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.
4. A residential care facility for the elderly licensed pursuant to Chapter 3.2 of
Division 2 of the Health and Safety Code.
5. The delivery, administration or provision of medical cannabis 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.
I. "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.
J. "Licensee" means any person holding a license under Division 10, entitled
"Cannabis," of the California Business and Professions Code, and includes the holder of
a testing laboratory license, in accordance with the definition in California Business and
Professions code section 26001, subdivision (z), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
K. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or
prepare a cannabis product, in accordance with the definition in California Business and
Professions Code section 26001, subdivision (ag), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
L. "Manufacturer" means a licensee that conducts the production, preparation,
propagation, or compounding of cannabis or cannabis products either directly or
indirectly by extraction methods, or independently by means of chemical synthesis, or by
a combination of extraction and chemical synthesis at a fixed location that packages or
repackages marijuana or marijuana products or labels or re- labels its container, in
accordance with the definition in California Business and Professions Code section
26001, subdivision (ah), as that section and subdivision may be amended or interpreted
by the California courts or superseded by any successor statute.
J5j
M. "Medical cannabis" or "medical cannabis product" means cannabis or a cannabis
product, respectively, intended to be sold for use pursuant to the Compassionate Use Act
of 1996 (Proposition 215), found at section 11362.5 of the California Health and Safety
Code, by a medicinal cannabis patient in California who possesses a physician's
recommendation, in accordance with the definition in California Business and
Professions Code section 26001, subdivision (ai), as that section and subdivision may be
amended or interpreted by the California courts or superseded by any successor statute.
N. - "Primary caregiver" shall have the same definition as set forth in California
Health and Safety Code Section 11362.7, subdivision (d), as that section and subsection
may be amended or interpreted by the California courts, including but not limited, to the
California Supreme Court case of People v. Mentch (2008) 45 Cal. 4th 274, or
superseded by any successor statute.
O. "Qualified patient" shall have the same definition as set forth in California Health
and Safety Code Section 113 62.7, subdivision (f), as that section and subsection may be
amended or interpreted by the California courts or superseded by any successor statute.
P. "Private residence" means a house, an apartment unit, a mobile home, or other
similar dwelling, in accordance with the definition in California Health and Safety Code
section 113 62.2, subdivision (b), paragraph (5), as that section, subdivision and paragraph
may be amended or interpreted by the California courts or superseded by any successor
statute.
Q. "Sell," "sale," and "to sell" mean any transaction whereby, for any consideration,
title to cannabis is transferred from one person to another, and includes the delivery of
cannabis or cannabis products pursuant to an order placed for the purchase of the same
and soliciting or receiving an order for the same, but does not include the return of
cannabis or cannabis products by a licensee to the licensee from whom the cannabis or
cannabis product was purchased, in accordance with the definition in California Business
and Professions Code section 26001, subdivision (as), as that section and subdivision
may be amended or interpreted by the California courts or superseded by any successor
statute.
R. "Testing laboratory" means a laboratory, facility or entity in the state that offers
or performs tests of cannabis or cannabis products and that is both of the following:
accredited by an accrediting body that is independent fiom all other persons involved in
commercial cannabis activity in the state and licensed by the Bureau of Cannabis Control,
52.
in accordance with the definition in California Business and Professions Code section
26001, subdivision (at), as that section and subdivision may be amended or interpreted by
the California courts or superseded by any successor statute.
S. "Volatile solvent" means a solvent that is or produces a flammable gas or vapor
that, when present in the air in sufficient quantities, will create explosive or ignitable
mixtures, in accordance with the definition in California Health and Safety Code section
11362.3, subdivision (b), paragraph (3), as that section, subdivision and paragraph may
be amended or interpreted by the California courts or superseded by any successor
statute.
Section 10.15.030 Prohibition of Dispensaries
It is 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. except
for dispensaries that qualify for the exception in section 10.15.040(D).
Section 10.15.040 Commercial AanjuCannabis Activity
A. It is 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, commercial cannabis
activity, other than the commercial cannabis activity specified in paragraphs B through D
in this section. The exceptions in paragraphs B through D shall only apply: 1) while and
to the extent the activity is conducted pursuant to and in accordance with a current, valid,
unexpired, unrevoked, fully -paid, license, permit, or other authorization or notice issued
by an authorized city official, and pursuant to and in accordance with all other applicable
state and local laws and regulations, including, but not limited to, the regulations adopted
or promulgated pursuant to section 10.15. 090; and 2) to commercial cannabis activity
conducted in areas of the city where such uses are permitted a -se -in accordance with the
city's zoning regulations.
B. Manufacture and only business to business (non- retail) sale of topical or edible
cannabis products using cannabis infusions., er- infusion processes, or cannabis
concentrates. but excluding manufacture of cannabis products involving volatile solvents
I , Ri n bul. of r, '+ a +„ ., l.; n r,+ +
er- E- ri�3fi E E%f'Tit�t�-sy �E3Ezi' 'b, - arrrns�cc irccic�ii— iis�1}g
�r1, enter, and excluding repackaging cannabis or cannabis products or re- labeling
cannabis or cannabis product containers;
53
C. Testing laboratories;
D. Retail Ssale of cannabis and cannabis products using a delivery -only method in
accordance with section 10.15.060, at a maximum of two different locations in the city,
with no sale of cannabis or cannabis products to customers, primary care givers or
qualified patients oecurrin1) on-e at the business location, no customers permitted on-at
site—the business location at any time, and no on site or on delivery = ehiele signage at the
business location or on the delivery vehicles indicating the presence of cannabis or
cannabis products or that the seller sells cannabis or cannabis products.
Section 10.15.050 Cannabis Cultivation
It is 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 cultivation of cannabis, other
than the cultivation of cannabis in accordance with and as specified in paragraphs A and
B in this section. The exceptions in paragraphs A and B are not subject to, and do not
require, issuance of a license, permit, or other authorization or notice issued by an
authorized city official.
A. Indoor cultivation of not more than six living cannabis plants in a private
residence, or a lesser number if both indoor cultivation pursuant to this paragraph A and
outdoor cultivation pursuant to paragraph B of this section is occurring at the private
residence, such that the total number of living cannabis plants at the private residence,
including indoor and outdoor cultivation, does not exceed a total of six living cannabis
plants; where the cultivation area does not exceed 50% or 100 square feet of the non-
living or garage area of the private residence; does not displace any required on -site
parking; is within a fully- enclosed and secure structure with no visual or olfactory
evidence of cultivation detectable from the public right of way or other private property;
does not utilize lighting that exceeds 1,200 watts; does not require the use of an electric
generator; and does not involve the use of volatile solvents; and
B. Outdoor cultivation on the grounds of a private residence, but only where less
than the six living cannabis plants permitted pursuant to paragraph A are being cultivated
within a fully- enclosed and secure structure, such that the total number of living cannabis
plants at the private residence, including indoor and outdoor cultivation, does not exceed
a total of six living cannabis plants; with no visual or olfactory evidence of cultivation
detectable from the public right of way or other private property; and where the outdoor
,!514
cultivation does not utilize lighting that exceeds 1,200 watts, does not require the use of
an electric generator, and does not involve the use of volatile solvents.
Section 10.15.060 Cannabis Delivery
Subject to the requirements of California Business and Professions Code section 26080,
subdivision (b), which prohibits local 7urisdietions from preveiitin� those that are licensed
under the AUMA from transporting cannabis or cannabis products on public roads within
the jurisdiction, as that section and subdivision may be amended or interpreted by the
California courts or superseded by any successor statute, it is 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 cannabis; ; except for delivery of cannabis:
A. qualifies for the exception in section
10.15.040(1); and
B. Delivery of medical cannabis to qualified patients and primary care givers in the
City of Petaluma from cannabis sellers lawfi lyoperating outside the Citv of Petaluma in
accordance with all applicable state and local laws.-wlie-re
For cannabis delivery to qualify for the exceptions in paragraphs A or B of this section,
such delivery must-L)
A—. The ldefi efy is be carried out by a person at least 21 years of age; and Q
B ,ray occurs between the hours of 8:00 a.m. and 8:00 p.m.
im
Section 10.15.070 Cannabis Entitlements
No cannabis dispensary, commercial cannabis activity or cannabis delivery operation,
(other than commercial cannabis activity or cannabis dispensary or delivery operations
that qualify for one or more of the exceptions specified in paragraphs b-R through D of
section 10.15.040), or cannabis cultivation, however described by the applicant, will
eligible for or be issued any license, permit, or other authorization, notice or other
entitlement 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 10.15.080 Medical Cannabis
No provision of this chapter is to be construed as prohibiting qualified patients and
primary care givers in the City of Petaluma from cultivating medical eannabis. of as
prohibiting sale or delivery of medical cannabis or medical cannabis products to qualified
patients or primary care givers in the Citv of Petaluma_ in accordance with all applicable
state and Local laws and regLilations, including the requirements of this chapter and any
regulations promulgated hereunder.
Section 10.15.080090 Regulations
The City Council shall, by duly adopted resolution, adopt regulations, or authorize the
City Manager to promulgate regulations, intended to implement the requirements of this
chapter in accordance all applicable provisions of the city charter, this chapter, the CUA,
the MMP, the AUMA, -and other applicable law. Regulations The City Council shall
review this chapter and anv regulations adopted or promulgated pursuant to this section
4iM�aed from time to time as necessary to ensure effective implementation of
this chapter and protection of the public health, safety and welfare.
Section 10.15.090 Prohibited Cannabis Activities a Public Nuisance. Any
cannabis dispensary, commercial cannabis activity, cannabis cultivation, cannabis
delivery or other cannabis use or activity caused or permitted to exist in the city in
violation of any provision of this chapter or any of the regulations adopted or
promulgated thereunder 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 3: 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 as well as pursuant
to Section 15301 of the CEQA Guidelines, which applies to the operation, repair maintenance,
permitting, and licensing or minor alteration of existing public or private structures, facilities, or
mechanical equipment involving negligible or no expansion of use beyond that existing at the
time of the lead agency's determination, and pursuant to Section 15303 of the CEQA Guidelines,
which applies to construction and location of limited numbers of new, small facilities or
structures, installation of small new equipment and facilities in small structures, and the
conversion of existing small structures from one use to another where only minor modifications
are made in the exterior of the structure.
Section 4: 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 or federal 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
unconstitutional, unlawful or otherwise invalid.
Section 5: 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.
57
INTRODUCED and ordered posted /published this 13"' day of November 2017.
ADOPTED this day of 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
David Glass, Mayor
APPROVED AS TO FORM:
Claire Cooper, City Clerk Eric Danly, City Attorney