The URL can be used to link to this page

Home My WebLink AboutOrdinance 1960 (Medical Cannabis Business Policy)CLERK'S CERTIFICATE I, LINDSAY LARA, City Clerk of the City of San Rafael, and Ex-Officio Clerk of the Council of said City, do hereby certify that the foregoing ORDINANCE NO. 1960 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 10.96 OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED "MEDICAL CANNABIS BUSINESS" TO AUTHORIZE AN ADDITIONAL CATEGORY OF CANNABIS BUSINESS LICENSE WITHIN CITY LIMITS FOR MEDICAL CANNABIS DISTRIBUTION is a true and correct copy of an Ordinance of said City, and was introduced at a REGULAR meeting of the City Council of the City of San Rafael, held on the 21 st day of May 2018; was published as required by City Charter in the MARIN INDEPENDENT JOURNAL, a newspaper published in the City of San Rafael, and passed and adopted as an Ordinance of said City at a REGULAR meeting of the City Council of said City, held on the 4th day of June 2018, by the following vote, to wit: AYES: NOES: ABSENT: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips COUNCILMEMBERS: None COUNCILMEMBERS: None WITNESS my hand and the official Seal of the City of San Rafael this 6th day of June 2018 ~tvL<-- LINDSAY LARA City Clerk ORDINANCE NO. 1960 AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 10.96 OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED "MEDICAL CANNABIS BUSINESS" TO AUTHORIZE AN ADDITIONAL CATEGORY OF CANNABIS BUSINESS LICENSE WITHIN CITY LIMITS FOR MEDICAL CANNABIS DISTRIBUTION THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS. WHEREAS, California law, including the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and regulations adopted pursuant thereto, authorizes both medical and nonmedical/recreational adult-use commercial cannabis activities in the state; and WHEREAS, the State of California began to accept applications and issue licenses for numerous types of commercial cannabis activities within the state on January 2, 2018; and WHEREAS, state law reserves to local jurisdictions the right to impose additional local regulations on medical and nonmedical/recreational adult-use commercial cannabis activities , and to prohibit them entirely if they choose to do so; and WHEREAS, to provide for the orderly regulation of the medical commercial cannabis industry within the City of San Rafael, with the intent of encouraging economic growth and job creation while protecting the public health, safety and welfare of the residents and patients of the City, the City Council, on December 4,2017, adopted an urgency ordinance adding Chapter 10.96 to the San Rafael Municipal Code ("SRMC") entitled "Medical Cannabis Business"; and WHEREAS, SRMC Chapter 10.96 authorizes, subject to issuance of a City cannabis business license, three specified types of state-licensed commercial cannabis businesses to operate within the San Rafael City Limits, namely Testing Laboratory License (Type 8 state license); Manufacturer License -Medical (Type N, M state license); and Medical Cannabis Delivery License (Type-9 state license); and WHEREAS, the City Council finds that businesses licensed for medical cannabis distribution are a crucial part of the state-licensed medical cannabis business supply chain in that: 1) distributors are the only license type that can transport cannabis products and are also the only licensees that can coordinate the required third-party testing of licensees' products; 2) prior to any retail sale, licensees must ensure that a distributor undertakes quality assurance packaging and labeling reviews of their products; and 3) distributors are almost exclusively in charge of collection and remittance of the cultivation and excise taxes to the California Department of Tax and Fee Administration ("CDTFA"); and therefore the Council finds that the effective operation of medical cannabis businesses in San Rafael requires that businesses licensed for medical cannabis distribution also be permitted in the City; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS: 1 ORIGINAL DIVISION 2. MUNICIPAL CODE AMENDMENT. Section 10.96.050 of the San Rafael Municipal Code is hereby amended to read in its entirety as follows: 10.96.050 -Medical Cannabis Businesses Authorized -License Required Notwithstanding section 10.96.080, the City shall allow medical commercial cannabis activity and testing laboratories by license only, as described below. A. Each cannabis business seeking to operate within the City must first apply and be issued the appropriate license to operate within the City. The license is specific to the location where the commercial cannabis business will be operating. Multiple operating locations for the same cannabis business will require separate licenses. Each license is non-transferrable. B. A cannabis business may apply for any of the following: 1. Testing Laboratory License. A testing laboratory license is required for all activities for which MAUCRSA requires a Type 8 state license. 2. Manufacturer License -Medical. A Manufacturer license is required for all activities for which MAUCRSA requires a Type N, M state license. 3. Medical Cannabis Delivery License. A Type-9 Non-Storefront Retailer License is required for all activities for which MAUCRSA requires a Type- 9 Non-Storefront Retailer state license to conduct retail cannabis sales exclusively by delivery as defined in Business and Professions Code section 26001 (p). For the purpose of licensing, a medical cannabis delivery non-storefront retailer license shall not be considered a medical marijuana dispensary as described in Section 14.16.245. 4. Medical Cannabis Distribution License. A Distribution license is required for all activities for which MAUCRSA requires a Type 11 state license. 5. No license shall be issued if the cannabis activity is not a permitted land use in the City. C. The City Council shall adopt by resolution reasonable regulations pertaining to the license process for the above identified medical commercial cannabis businesses allowed within the City. D. The City Council shall adopt by resolution a limit on the number of each license type to be issued. E. Unless expressly permitted and outlined in this chapter, all other types of cannabis business (medical or non-medical) are prohibited within City limits. 2 DIVISION 3. CALIFORNIA ENVIRONMENTAL QUALITY ACT. This Ordinance is exempt from the California Environmental Quality Act ("CEQA") pursuant to the State CEQA Guidelines, since it can be seen with certainty that there is no possibility that this Ordinance or its implementation would have a significant effect on the environment (14 Cal. Code Regs. Section 15061 (b)(3)). DIVISION 4. PUBLICATION; EFFECTIVE DATE This Ordinance shall be published once in full before its final passage in a newspaper of general circulation published and circulated in the City of San Rafael, County of Marin, State of California and shall be in full force and effect 30 days after its final pas age. ATTEST: LINDSAY LARA, City Clerk The foregoing Ordinance No. 1960 was read and introduced at a regular meeting of the City Council of the City of San Rafael on the 21 st day of May 2018, and was ordered passed to print by the following vote, to wit: AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None and will come up for f,ldoption as an Ordinance of the City of San Rafael at a regular meeting of the City Council to be held on the 4th day of June 2018. LINDSAY LARA, City Clerk 3