HomeMy WebLinkAboutCC Resolution 14455 (Medical Cannabis Resolution)Medical Cannabis Resolution 1-16-2018 City of San Rafael
RESOLUTION NO. 14455
RESOLUTION OF THE SAN RAFAEL CITY COUNCIL ADOPTING MEDICAL CANNABIS
PILOT PROGRAM POLICIES, PRACTICES AND PROCEDURES FOR ADMINISTERING AND
ENFORCING THE MEDICAL CANNABIS PILOT PROGRAM SET FORTH IN SAN RAFAEL
MUNICIPAL CODE CHAPTER 10.96, REGULATING COMMERCIAL CANNABIS ACTIVITY
WITHIN SAN RAFAEL CITY LIMITS.
WHEREAS, in 2015, the State Legislature adopted the “Medical Marijuana [now
“Cannabis”] Regulation and Safety Act” (MCRSA) establishing a state licensing process for
“commercial cannabis activity,” defined as including “cultivation, possession, manufacture,
processing, storing, laboratory testing, labeling, transporting, distribution, or sale of medical
cannabis or a medical cannabis product, except as permitted for qualifying patients and primary
caregivers;” and
WHEREAS, on November 8, 2016, the voters of the State of California enacted
Proposition 64, the “Control, Regulate and Tax Adult Use of Marijuana Act” (AUMA), to allow for
nonmedical adult use of cannabis, and implementing regulations were subsequently developed
by the state agencies for this act as well; and
WHEREAS, in July 2017, the Governor signed Senate Bill 94, entitled the “Medical and
Adult-Use Cannabis Regulation and Safety Act” (MAUCRSA), which took effect immediately.
The MAUCRSA directed that the MCRSA’s medical cannabis regulations be coordinated with
AUMA’s nonmedical cannabis regulations; and
WHEREAS, on December 4, 2017, the City Council enacted Ordinance No. 1949, an
urgency ordinance adding new Chapter 10.96 to the San Rafael Municipal Code to limit the
commercial cannabis activities that will be allowed in the City of San Rafael starting on January
2, 2018 to those determined by the City Council to be beneficial rather than detrimental to the
residents, workers and visitors in the City; and
WHEREAS, Ordinance No. 1949 provided that the City Council shall, by resolution,
adopt reasonable regulations for the license process for the medical commercial cannabis
activities permitted within the City, and for the number of each license type to be issued;
NOW, THEREFORE, BE IT RESOLVED, that the City Council hereby adopts the
following Medical Cannabis Pilot Operator Licensing Program:
SECTION 1. PURPOSE AND INTENT
It is the purpose and intent of this resolution to regulate medical cannabis businesses located
within the San Rafael city limits, in order to promote the health, safety, and general welfare of
residents and businesses within the City. This resolution governs the establishment and
operation of cannabis testing laboratories, medicinal cannabis infused product manufacturers,
and medicinal cannabis delivery.
Medical Cannabis Resolution 1-16-2018 City of San Rafael
SECTION 2. DEFINITIONS
For the purposes of this Program, the definitions below shall apply:
(a) “Applicant” means an owner applying for a City Medical Cannabis Business Operator
license.
(b) “Bureau” means the Bureau of Cannabis Control within the California Department of
Consumer Affairs.
(c) “City” means City of San Rafael.
(d) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or
Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude
or purified, extracted from any part of the plant; and every compound, manufacture, salt,
derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also
means the separated resin, whether crude or purified, obtained from 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. For the purpose of this division, “cannabis” does not mean “industrial hemp”
as defined by Section 11018.5 of the Health and Safety Code.
(e) “Cannabis Testing Lab” means a laboratory, facility, or entity in the State that offers or
performs tests of cannabis or cannabis products as further defined in SRMC 10.96.040.
This sort of use is regulated by the State of California as a Type 8 Cannabis license.
(f) “Cannabis Delivery” means the commercial transfer of medicinal cannabis or cannabis
products to a customer. “Delivery” also includes the use by a retailer of any technology
platform. This sort of use is regulated by the State of California as a Type 9 Cannabis
license.
(g) “Cannabis Manufacturing” means producing edible or topical products that include pre
extracted cannabis oils, to create edibles, beverages, capsules, vape cartridges tinctures
or topical. This sort of use is regulated by the State of California as a Class N (Infusions)
Cannabis license. Cannabis manufacturing may also include shared use of a
manufacturing facility by multiple businesses that perform manufacturing, (ie commercial
kitchen). Shared manufacturing is regulated by the State of California as Type S
Cannabis license.
(h) “Licensee” means any person holding a City Medical Cannabis Business Operator
License.
(i) “Medical cannabis” or “Medical cannabis product” means cannabis or a cannabis
product, intended to be sold for use pursuant to the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a
medicinal cannabis patient in California who possesses a physician’s recommendation.
Medical Cannabis Resolution 1-16-2018 City of San Rafael
(j) “Operator License” means a City Medical Cannabis Business Operator license.
(k) “Owner” means any of the following, as defined in Section 26001 of the
Business and Professions Code:
1) A person with an aggregate ownership interest of 20 percent or more in
the person applying for a license or a licensee, unless the interest is
solely a security, lien, or encumbrance.
2) The chief executive officer of a nonprofit or other entity
3) A member of the board of directors of a nonprofit
4) An individual who will be participating in the direction, control, or
management of the person applying for a license.
(l) “Person” includes any individual, firm, partnership, joint venture, association,
corporation, Limited Liability Company, estate, trust, business trust, receiver, syndicate,
or any other group or combination acting as a unit, and the plural as well as the singular.
(m) “Purchaser” means the customer who is engaged in a transaction with a licensee for
purposes of obtaining medical cannabis or medical cannabis products.
(n) “Qualified patient” means person who is entitled to the protections of Section 11362.5,
but does not have an identification card issued, as defined by 11362.7 of the Health and
Safety Code.
(o) “Sell”, “sale,” and “to sell” include any transaction whereby, for any consideration, title to
cannabis or cannabis products 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.
SECTION 3. LICENSING PROCESS
(a) Any person seeking to sell and or deliver, manufacture, or providing laboratory testing
services located in San Rafael city limits must first obtain a Medical Cannabis Business
(MCB) operator license prior to operating.
(b) The Medical Cannabis Business Operator Licensing Program will make the following
limited licenses available:
• Testing Labs (State License Type 8): 4 licenses
• Medical Infused Products Manufacturing (State License Type N): 8 licenses
• Medical Delivery (State License Type 9): 4 licenses
SECTION 4. REVIEW AND ACTION ON APPLICATIONS
(a) The initial Medical Cannabis Business Operator License Application Review Committee
(“Committee”_ includes (1) MC Subcommittee Councilmember, Police Chief, Fire Chief,
Community Development Director and Economic Development Director, and/or their
designees, to review and rank applications.
(b) The Medical Cannabis Business (MCB) operator license application ranking process
shall consist of the following areas of evaluation:
Medical Cannabis Resolution 1-16-2018 City of San Rafael
• Business Executive Summary (20 POINTS -MAXIMUM)
• Safety and Security Plan (20 POINTS - MAXIMUM)
• Patient Benefits & Education (20 POINTS - MAXIMUM)
• Local Enterprise Preference (10 POINTS - MAXIMUM)
• Qualifications of Principals (20 POINTS - MAXIMUM)
• Community Benefits (10 POINTS - MAXIMUM)
An application is required to receive a total of 85 points to move forward. The Committee
shall rank all the applications and shall issue a written decision setting forth the ranking
for each application, the ranking of each application in each of the ranking categories,
and an explanation of the facts and reasoning supporting the rankings. The Committee
shall serve a copy of its written decision on each applicant by email.
An applicant who has received a ranking of less than 85 points may appeal that decision
to the City Manager or his or her designee, by filing a written appeal with the City
Manager’s office within five (5) business days after the date of service of the written
ranking decision on the applicant. The appeal shall not be accepted for filing unless
accompanied by an appeal fee in an amount determined by resolution of the City
Council. In determining the appeal, the City Manager/designee will review the
Committee’s written decision on the appellant’s application and the application itself. In
addition, within five (5) business days after the filing of the appeal, the City
Manager/designee shall set a time for a hearing, not to exceed two hours in length, at
which the appellant may appear to review the Committee’s decision and to present
evidence or argument why the Committee’s ranking should be modified. The hearing
shall occur no later than thirty (30) days following the filing of the appeal unless another
time is agreed to by the appellant. The hearing may be recorded by audiotape or written
minutes.
Within ten (10) business days after completion of the hearing on the appeal, the City
Manager/designee shall issue a written decision on the appeal shall either confirming or
modifying the ranking given by the Committee. The decision shall be in served upon the
appellant by email, or regular mail through the United States Post Office. The City
Manager’s decision will be final, with no appeal to the City Council, and shall be subject
to judicial review according to the provisions and time limits set forth in Code of Civil
Procedure Section 1094.6; however the filing of any such action shall not stay any
lottery or subsequent award of operator licenses as provided herein.
After the appeal period has run without the filing of any appeals, or after the final
decision by the City Manager on any and all appeals, if the Committee determines that
the number of pre-screened and ranked applicants exceeds 100% of the maximum
number of licenses available, then a lottery will be conducted after the ranking round.
(c) Operator Selection. W ithin 45 days of notification of written and e-mail notification,
operators will have the ability to look for sites within permitted zoning districts and return
with identified site to apply for zoning clearance, business license tax and operator
Medical Cannabis Resolution 1-16-2018 City of San Rafael
license issuance.
(d) Zoning Clearance, Business License Tax, and Operator permit issued. Once the
operator has found a business location, and has an executed lease agreement, or
signed application by the property owner, planning staff will confirm zoning clearance.
The applicant can then proceed with filing for a business license tax certificate, and the
operator license will be issued.
SECTION 5. FEES
The Medical Cannabis Business Operator License application and renewal fees are based on a
cost-recovery model for application intake, processing, and compliance monitoring.
Process Steps
Staff Coordination
Per Applicant
Cost
Application Intake
Econ. Dev Coordinator
Review Time: 1-2
hours
$200
Criminal Background
Check
Police
Review Time: 1
hour
$100
Application Review and
Ranking
Econ. Development
Director, Police Chief, Fire
Chief, Community
Development Director, (1)
MC Subcommittee Council
member
Review Time: 2-3
hours
$1,500
Operator Notification
Econ. Development
Coordinator/Director
Review Time: 1
hour
$100
Zoning Clearance,
Business Tax
Certificate, Operator
License Issuance
Senior Planner, Revenue
Manager, Economic
Development Director
Review Time: 2-3
hours
$300
Compliance Inspections
Senior Code Enforcement
Officer
Review Time: 3-4
hours
$600
Annual Gross Receipts
Audits
Contract with Outside
Agency
Review Time 3-4
hours
$800
SECTION 6. OPERATING REQUIREMENTS
All Medical Cannabis Business operator licensees shall comply with all of the following
operating requirements:
(a) The licensee shall meet all operating requirements of the Medicinal and Adult-use
Cannabis Regulation and Safety Act, and requirements set forth by the Bureau and the
California Department of Public Health.
Medical Cannabis Resolution 1-16-2018 City of San Rafael
(b) The licensee shall obtain and maintain the State of California license for the equivalent
State cannabis license type. Obtain and maintain all other required State and local
licensees, permits, or approvals as required.
(c) Odor Control. No cannabis odors shall be detectable outside the commercial facility.
(d) Advertising and Marketing Restrictions. All signage shall meet the City zoning code’s
sign requirements and shall not advertise any activity related to cannabis.
(e) Operating Hours. A licensee may operate between the hours of:
1) Medical Delivery: 9AM to 9PM up to seven days a week, unless
modified as condition of license to address site specific conditions.
2) Cannabis Testing Labs: 7AM – 6PM up to seven days a week, unless
modified as condition of license to address site specific conditions.
3) Cannabis Infused Product Manufacturing: 7 AM – 6 PM, evenings
available as a condition of the license; up to seven days a week, unless
modified as condition of license to address site specific conditions.
(f) Contact Person. A licensee shall provide the City with the name and phone number of
an on-site community relations staff person or designee to whom one can provide notice
if there are operating concerns. The licensee shall make a good faith effort to encourage
residents to call this person to try to solve operating concerns before any calls or
complaints are made to the City.
SECTION 7. TERMS OF LICENSE
(a) Licenses issued under this resolution shall be valid for 12 months from the date of
issuance.
SECTION 8. LICENSE SUPENSION, MODIFICATION AND REVOCATION
(a) Any license issued under the terms of this resolution may be suspended, modified, or
revoked by the Economic Development Director, or his or her designee, for cause
including but not limited to violation of any the requirements or provisions of this
resolution, or conflicts with State law.
(b) Written Notice Required. The Economic Development Director, or designee, before
revoking or suspending any Medical Cannabis Business operator license shall serve
the licensee with written notice of revocation or suspension, provided in the manner set
forth in Section 1.08.060 of the San Rafael Municip al Code, of the alleged grounds for
revocation or suspension and the date for a hearing, to be held no less than ten (10)
days and no more than sixty (60) days after the service of the written notice , to
consider whether the Medical Cannabis Business operator license shall be revoked or
suspended.
(c) Hearing. The Economic Development Director, or designee, shall appoint a hearing
officer to hear and consider all evidence at the hearing. The hearing may, after being
Medical Cannabis Resolution 1-16-2018 City of San Rafael
commenced within the time specified pursuant to subsection (b) of this section, be
continued for good cause by the hearing officer from time -to-time. The hearing officer
may require such legal briefing as may be required to address any issues raised at the
hearing.
(d) Notice of Decision; Judicial Review. Within a reasonable time, but not more than thirty
(30) days following the conclusion of the hearing, the hearing officer shall issue a
written decision as to whether the Medical Cannabis Business operator license shall
be revoked or suspended, supported by factual findings and determinations referenced
by supporting evidence. The written decision shall be served on the operator licensee
as provided in Code of Civil Procedure Section 1094.6, with a copy submi tted to the
city clerk and the city attorney. The written decision of the hearing officer shall be final
and shall be subject to judicial review according to the provisions and time limits set
forth in Code of Civil Procedure Section 1094.6 .
SECTION 9. TRANSFER OF LICENSE
(a) A licensee shall not operate under the authority of a Medical Cannabis Business
operator license at any location other than the address stated in the application for the
license.
(b) The Medical Cannabis Business operator license is nontransferable.
SECTION 10. ENFORCEMENT
It is unlawful for any person to violate any provision or fail to comply with any of the
requirements of this resolution, and any such violation shall be enforceable in accordance with
the provisions of Chapters 1.40, 1.42, 1.44, and 1.46 of the San Rafael Municipal Code.
SECTION 11. SIX-MONTH PROGRESS REPORT AND REVIEW
Six months following the adoption of the resolution, the Economic Development Director shall
prepare a progress report on the Medical Cannabis Pilot Operator Licensing Program for
Council review.
BE IT FURTHER RESOLVED that any amendments to the Medical Cannabis Pilot
Operator Licensing Program Policies, Practices and Procedures as deemed necessary from
time-to-time shall require an amendment to this resolution by City Council action.
I, LINDSAY LARA, Interim City Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was adopted at a regular meeting of the City Council on the 16th day of January 2018.
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
____________________________
Lindsay Lara, Interim City Clerk