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Home My WebLink AboutPlanning Commission 2018-02-13 Agenda Packet AGENDA SAN RAFAEL PLANNING COMMISSION REGULAR MEETING TUESDAY, February 13, 2018, 7:00 P.M. COUNCIL CHAMBERS, CITY HALL, 1400 FIFTH AVENUE SAN RAFAEL, CALIFORNIA • Sign interpreters and assistive listening devices may be requested by calling 415/485-3085 (voice) or 415/ 485-3198 (TDD) at least 72 hours in advance. Copies of documents are available in accessible formats upon request. • Public transportation to City Hall is available through Golden Gate Transit, Line 20 or 23. Paratransit is available by calling Whistlestop Wheels at 415/454-0964. • To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products. Any records relating to an agenda item, received by a majority or more of the Agency Board less than 72 hours before the meeting, shall be available for inspection in the Community Development Department, Third Floor, 1400 Fifth Avenue, and placed with other agenda-related materials on the table in front of the Council Chamber prior to the meeting. THE PLANNING COMMISSION WILL TAKE UP NO NEW BUSINESS AFTER 11:00 P .M. AT REGULARLY SCHEDULED MEETINGS. THIS SHALL BE INTERPRETED TO MEAN THAT NO AGENDA ITEM OR OTHER BUSINESS WILL BE DISCUSSED OR ACTED UPON AFTER THE AGENDA ITEM UNDER CONSIDERATION AT 11:00 P.M. THE COMMISSION MAY SUSPEND THIS RULE TO DISCUSS AND/OR ACT UPON ANY ADDITIONAL AGENDA ITEM(S) DEEMED APPROPRIATE BY A UNANIMOUS VOTE OF THE MEMBERS PRESENT.APPEAL RIGHTS: ANY PERSON MAY FILE AN APPEAL OF THE PLANNING COMMISSION'S ACTION ON AGENDA ITEMS WITHIN FIVE BUSINESS DAYS (NORMALLY 5:00 P.M. ON THE FOLLOWING TUESDAY) AND WITHIN 10 CALENDAR DAYS OF AN ACTION ON A SUBDIVISION. AN APPEAL LETTER SHALL BE FILED WITH THE CITY CLERK, ALONG WITH AN APPEAL FEE OF $350 (FOR NON -APPLICANTS) OR A $4,476 DEPOSIT (FOR APPLICANTS) MADE PAYABLE TO THE CITY OF SAN RAFAEL, AND SHALL SET FORTH THE BASIS FOR APPEAL. THERE IS A $50.00 ADDITIONAL CHARGE FOR REQUEST FOR CONTINUATION OF AN APPEAL BY APPELLANT. CALL TO ORDER PLEDGE OF ALLEGIANCE RECORDING OF MEMBERS PRESENT AND ABSENT APPROVAL OR REVISION OF ORDER OF AGENDA ITEMS PUBLIC NOTIFICATION OF MEETING PROCEDURES URGENT COMMUNICATION Anyone with an urgent communication on a topic not on the agenda may address the Commission at this time. Please notify the Community Development Director in advance. CONSENT CALENDAR 1. Minutes 01/23/18 PUBLIC HEARINGS 2. Cannabis Zoning – Zoning Ordinance amendment (ZO17-003) to Title 14 of the San Rafael Municipal Code (Zoning Ordinance) 1) adding definitions, land use provisions and parking requirements for cannabis businesses within the city limits, specifically medical cannabis delivery, medical cannabis product manufacturing, and cannabis testing; 2) clarifying prohibition on cultivation for agricultural uses in the Wetland Overlay District; 3) prohibiting non-medical cannabis businesses; and 3) amending home occupation standards; Citywide; City of San Rafael applicant; Case No: ZO17-003. Project Planner: Raffi Boloyan DIRECTOR’S REPORT COMMISSION COMMUNICATION ADJOURNMENT I. Next Meeting: February 27, 2018 II. I, Anne Derrick, hereby certify that on Friday, February 9, 2018, I posted a notice of the February 13, 2018 Planning Commission meeting on the City of San Rafael Agenda Board. IN THE COUNCIL CHAMBERS OF THE CITY OF SAN RAFAEL, January 23, 2018 Regular Meeting San Rafael Planning Commission Minutes For a complete video of this meeting, go to http://www.cityofsanrafael.org/meetings CALL TO ORDER Present: Larry Paul Jack Robertson Barrett Schaefer Sarah Loughran Jeff Schoppert Berenice Davidson Mark Lubamersky Absent: None Also Present: Raffi Boloyan, Senior Planner Alan Montes, Assistant Planenr PLEDGE OF ALLEGIANCE RECORDING OF MEMBERS PRESENT AND ABSENT APPROVAL OR REVISION OF ORDER OF AGENDA ITEMS PUBLIC NOTIFICATION OF MEETING PROCEDURES URGENT COMMUNICATION CONSENT CALENDAR 1. Minutes 01/09/18 Jeff Schoppert moved and Barrett Schaefer seconded to approve minutes as presented. The vote is as follows: AYES: Larry Paul, Barrett Schaefer, Sarah Loughran, Jeff Schoppert, Berenice Davidson, Mark Lubamersky NOES: None ABSTAIN: Jack Robertson ABSENT: None PUBLIC HEARINGS 2. 3773 Redwood Highway (Oakmont Senior Living) – Request for a Use Permit and Environmental and Design Review for a new 83,093 sq. ft. assisted care facility containing 89 units and 93 beds; APN: 179-064-01; General Commercial (GC) Zone; Bill Mabry, Applicant; Eric Ziedrich, Owner; Case Numbers: ED17-035 & UP17-012. Project Planner: Alan Montes Staff Report and Exhibits 1,2,3,4,5,6,8,9,10,11,12 Exhibit 7 - Air Quality Impact Analysis Report Appendix A - Part 1 Appendix A - Part 2 Jeff Schoppert moved and Barrett Schaefer seconded to adopt resolution approving project as presented with condition to require the Applicant to provide Zip Code data of its occupants to the City as follows: 1) 90 days after Certificate of occupancy is granted. 2) 90 days after 90% of all beds are occupied. The vote is as follows: AYES: Jeff Schoppert NOES: Larry Paul, Jack Robertson, Sarah Loughran, Berenice Davidson, Mark Lubamersky, Barrett Schaefer ABSTAIN: None ABSENT: None This motion fails. Jeff Schoppert moved and Sarah Loughran seconded to adopt resolution approving project as presented. The vote is as follows: AYES: Jack Robertson, Barrett Schaefer, Sarah Loughran, Jeff Schoppert, Berenice Davidson, Mark Lubamersky NOES: Larry Paul ABSTAIN: None ABSENT: None DIRECTOR’S REPORT COMMISSION COMMUNICATION ADJOURNMENT ___________________________________ ANNE DERRICK, Administrative Assistant III APPROVED THIS_____DAY____OF_______, 2018 _____________________________________ Berenice Davidson, Chair Community Development Department – Planning Division Meeting Date: February 13, 2018 Agenda Item: Case Numbers: ZO17-003 Project Planner: Raffi Boloyan 485-3095 REPORT TO PLANNING COMMISSION SUBJECT: Cannabis Zoning – Zoning Ordinance amendment (ZO17-003) to Title 14 of the San Rafael Municipal Code (Zoning Ordinance) 1) adding definitions, land use provisions and parking requirements for cannabis businesses within the city limits, specifically medical cannabis delivery, medical cannabis product manufacturing, and cannabis testing; 2) clarifying prohibition on cultivation for agricultural uses in the Wetland Overlay District; 3) prohibiting non-medical cannabis businesses; and 3) amending home occupation standards; Citywide; City of San Rafael applicant; Case No: ZO17-003 EXECUTIVE SUMMARY In response to a recent state law that became effective on January 1, 2018, the City has been considering it’s position on whether to allow certain facets of the cannabis industry in San Rafael. The City Council has convened an ad hoc subcommittee to research the matter and over the past two months, adopted an Ordinance for regulating and licensing certain cannabis related businesses and set up a pilot program identifying the maximum number of licenses it will initially allow for each type of allowable cannabis- related establishments. The Council’s direction and actions approved limited licenses in each of the following three business types in the entire Cannabis business chain: Cannabis testing/lab (4 licenses), cannabis infused products (8 licenses) and cannabis delivery (4 licenses). The Council has specified that the only businesses in these three facets that will be considered in San Rafael are medicinal, with the exception testing/lab, which would allow both medicinal and recreational adult use. With the framework established by the Council, the Commission is asked to establish the zoning regulations for these uses. Following extensive research, staff is recommending that: • All three types of businesses be allowed in the Industrial, Industrial Office and Core-Canal Industrial/Office zoning districts. • Cannabis testing/lab and cannabis delivery be allowed in the Office and Commercial/Office zones • Cannabis infused products be allowed in the Commercial/Office zones The regulatory scheme that is proposed, follows the structure of City’s Massage Ordinance, where the regulation/licensing of these uses would be administered through a separate license process contained in the Municipal Code (SRMC 10.96 adopted in Dec 2017), not a land use entitlement such as a Use Permit. The Zoning Ordinance would solely specify in which zoning district the uses would be permitted (ie no Use Permit required) and a potential business would then apply for license. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 2 Therefore, there are a series of proposed edits to the Zoning Ordinance to add/modify definitions, amend the land use tables, establish parking standards for the new uses and modify/clarify other portions of the zoning ordinance. The City Council will be the final decision-making authority on the proposed amendments, following the review and recommendation of the Planning Commission. The Commission’s Rules and Procedures require a majority vote of the entire Commission (4 votes) to pass a Resolution recom mending an amendment to the Zoning Ordinance. RECOMMENDATION It is recommended that the Planning Commission adopt the attached Resolution (Exhibit 1), recommending City Council Zoning adoption of Zoning Ordinance amendments to allow certain cannabis-related businesses in certain zoning districts. BACKGROUND State Law: Last year was a bellwether year for California cannabis legislation, with the passing of voter initiative Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act, also known as (AUMA), cities and counties throughout California are revisiting local cannabis regulations to address a legal cannabis regulatory landscape. The City of San Rafael has prohibited medical cannabis dispensaries since 1997, in response to the passing of the 1996 Compassionate Use Act, a ballot initiative known as Proposition 215. Since that time, no cannabis businesses have been permitted in City limits. On November 8, 2016, the voters of the State of Calif ornia enacted Proposition 64 to allow for nonmedical/recreation adult-use. The developing regulatory framework in AUMA establishes a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis. City Staff Review: In response to the state election results, the San Rafael City Council, at a January 2017 study session, reviewed the statutory law of AUMA and instructed staff to form a City Council ad-hoc subcommittee to review San Rafael’s cannabis policies. The Medical Cannabis Council Ad-Hoc Subcommittee (MC Subcommittee) included Councilmember Kate Colin and Councilmember John Gamblin. Staff support included the: City Manager, Police Chief, Fire Chief, Community Development Director, Assistant City Attorney, and the Economic Development Director. Over the course of several months, the subcommittee reviewed all license types available under the State’s medical cannabis framework Medical Cannabis Regulation and Safety Act of 2015 (MCRSA) and developed a set of recommendations for full Council consideration. 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. MAUCRSA reconciles the State’s medical cannabis regulations of the Medical Cannabis Regulation and Safety Act (MCRSA) with AUMA’s nonmedical/recreation adult-use cannabis regulations. The State issued the newly revised regulations on November 16, 2017 under their emergency rule making process. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 3 Urgency Cannabis Ordinance: On December 4, 2017, the City Council conducted a public hearing and reviewed what will be the first of many steps to enact local cannabis regulations for San Rafael. The first step was to create a cannabis ordinance in San Rafael’s Municipal Code that outlines what the City will regulate and prohibit before the State of California began accepting cannabis applications on January 2, 2018. State law reserves to local jurisdictions the right to impose additional local regulations on medical and nonmedical/adult-use (recreational) commercial activities, and to prohibit them entirely if they choose to do so. The MC Subcommittee reviewed federal and state regulatory milestones to understand the evolution of legal medical cannabis and the implications for the City of San Rafael. The MC Subcommittee decided to only focus on medical, while prohibiting nonmedical/ recreational adult-use commercial cannabis activities for now. Consensus was reached on exploring a limited number of medical cannabis permits in San Rafael to meet the following objectives: • Discreet, low impact and minimal public interface • Provide safe patient access • Improve transparency and reduce public safety risks • Add new revenue to support city infrastructure and services • Create new jobs, produce artisan products • Promote a diversified economy On December 4, 2017, the Council adopted Ordinance No. # 1949, amending the City’s Municipal Code and adding a new Chapter (SRMC 10.96) regulating commercial cannabis activity in San Rafael city limits, as an Urgency Ordinance, in order to advance local regulations before the State of California begins accepting commercial cannabis applications on January 2, 2018. The Staff report and Ordinance are attached (Exhibit 2). Video proceedings from this meeting can be viewed here. This Urgency Ordinance was adopted for the immediate preservation of the public peace, health or safety, because without a clear statement as to which commercial cannabis activities will be permitted in San Rafael, there is a possibility that state law will issue licenses for a much wider variety of commercial cannabis activities in the City than the MC Subcommittee has recommended. The urgency Ordinance established the following: Permitted Medical Cannabis Commercial Operations Authorize a limited number of commercial medical cannabis operator licenses: • Medical cannabis delivery (State License Type 9) • Medical cannabis product manufacturing, ie infused products (State License - Class N) • Cannabis testing lab (State License – Type 8). The State of California will only be providing cannabis testing labs with one license to service both medical and nonmedical/ recreational adult-use for public safety reasons. Prohibited Medical Cannabis Commercial Operations The new ordinance prohibits the following commercial medical cannabis activities: • Cultivation, processing and some manufacturing activities • Dispensaries Prohibited Nonmedical/Recreation Adult-use Cannabis Commercial Operations The new ordinance also prohibits: • All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA pending further staff reviews of the State’s new MAUCRSA regulations. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 4 The permitted medical cannabis commercial licenses listed in the Urgency Ordinance required future Council action to decide on the number of operator licenses that will be available under San Rafael’s pilot medical cannabis program. Medical Cannabis Pilot Program: On January 16, 2018, the City Council adopted Resolution No. 14455, outlining the application process/requirements and establishing the number of licenses that will be allowed for each type of allowable cannabis-related business. The Staff report from this meeting and Resolution No. 1455 are attached (Exhibit 3). Video proceedings from this meeting can be viewed here. The Council approved the application process/form and established that the maximum number of license for each allowable cannabis-related business would be as follows: • Cannabis testing/lab (medicinal and recreational adult use) - 4 • Cannabis infused products (medicinal) - 8 • Cannabis delivery (medicinal) - 4 PROJECT DESCRIPTION Following the Council’s adoption of an Urgency Ordinance to establish a Municipal Code Section (SRMC 10.96) for the regulation and licensing of medicinal Cannabis businesses and adopting the pilot program with license limits, the City must next establish the land use/zoning rules for allowing cannabis-related uses, specifically the type of cannabis-related uses that will be allowed, where those uses will be allowed in the city and whether land use permits are required for cannabis-related uses. The State law went into effect January 1, 2018, at which time the State commenced issuing licenses for cannabis uses. Therefore, the ordinance amendments to the City’s Zoning regulations are proposed to provide a clear statement as to which commercial cannabis activities will be permitted in San Rafael. Edits proposed to SRMC Title 14 (Zoning Ordinance) include the following: • establish definitions for cannabis-related businesses; • Identify which commercial, office and industrial districts within which cannabis-related uses would be permitted; • add language clarifying prohibition of cannabis-related business in certain overlay districts; and • amend prior zoning regulations pertaining to medical marijuana. PROPOSED AMENDMENTS Zoning Ordinance Amendments: Staff is recommending a series of amendment to the San Rafael Municipal Code (SRMC) to modify Title 14 (Zoning) and establish new definitions for new land use classifications, amend the land use tables to establish the allowable type and location for cannabis uses, and make other amendments to the Zoning Ordinance to update prior sections addressing medical marijuana. These proposed ordinance amendments follow the recommendations of the MC Subcommittee and prior Council action and include the following: Chapter 14.03 Definitions Given that the Council and the MC Subcommittee have identified certain types of medical cannabis uses that will be considered for San Rafael, new land use classifications must be added to the Zoning REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 5 Ordinance. Therefore, the following new definitions are proposed to be added to SRMC 14.03 (Definitions) related to cannabis uses. “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. “Cannabis Testing/lab” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products (either medicinal and adult use) 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. “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. “Cannabis Infused Products” means producing edible or topical products that include pre extracted cannabis oils, to create edibles, beverages, capsules, vape cartridges tinctures or topical for medicinal purposes. 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 facility by multiple businesses that perform cannabis infused products, (similar to a commercial kitchen). Shared manufacturing is regulated by the State of California as Type S Cannabis license. Distribution and transport of cannabis infused products as part of normal operations of the business is considered an ancillary use to this category and therefore allowed “Dispensary” means a storefront or facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale. “Medical cannabis” or “medicinal cannabis” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), as further defined by SRMC 10.96.040. SRMC 14.03 currently includes a definition for "Medical marijuana dispensary" that was established in 1997 in respons e to the State law allowing medical cannabis use (Proposition 215). Given the recent changes to state law, a current definition in the zoning ordinance is proposed for deletion: “Medical marijuana dispensary” which is means a facility where marijuana is made available for medical purposes in accordance with Health and Safety Code Section 11362.5 (Proposition 215). REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 6 Chapter 14.05.020 – Land Use Regulations (GC, NC, O, C/O, R/O, FBWC) Modify the land use table for the Commercial Zoning Districts (Table 14.05.020) by adding the following land use classifications to allow “cannabis testing/lab” and “cannabis delivery” in the “Office (O)” and “Commercial/Office(C/O)” zoning districts. In addition, cannabis infused products are proposed to be added to the C/O District. • “Cannabis testing/lab” and “cannabis delivery” are proposed to be permitted by right (P), in the Office (O) and Commercial/Office (C/O) zones. That means that they can operate without a requirement to obtain a Use Permit, but will still have to comply with the licensing process established by Chapter 10.96 and City Council resolution which establishes a limit on number of cannabis businesses by each business type. • “Cannabis infused products” are proposed to be permitted in the Commercial/Office (C/O) District. There is a state requirement that any cannabis business be more than 600 feet away from a school (per state law) which would be disclosed under footnote 33 of the table. Staff is also proposing an additional separation requirement of 300 feet away from nearest residential zoning district (single family, medium density or high density residential districts), which is disclosed under footnote 32 of the table. Business that do not meet the separation requirements would otherwise be prohibited. • All proposed new cannabis-related uses would be prohibited in the General Commercial (GC), Neighborhood Commercial (NC), Residential/Office (R/O) and Francisco Blvd West (FBWC). The new land use classifications are proposed to be inserted in the location of the land use table shown below (between the existing text) and the new text is identified with italics/underline. Table 14.05.020 Type of Land Use GC NC O C/O R/O FBWC * Additional Use Regulations Printing shops P P P CZ Cannabis Related Uses Cannabis Testing/lab P P *Subject to additional regulations and permitting (See SRMC Chapter 10.96) REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 7 Cannabis Delivery P P *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Cannabis Infused Products P (32) Card rooms See Chapter 10.36 (32) Shall not be located within three hundred (300) feet away of a residential zoning district (R, DR or HR), as measured from the property lines of each parcel. If within 300 ft, then use is prohibited. (33) Shall not be located within 600 feet from schools (public and private), as measured from the property lines of each parcel. Chapter 14.06.020 – Land Use Regulations (I, LI/O, CCI/O, LMU) Modify the land use table for the Industrial zoning districts (Table 14.06.020) by adding the following land use classifications to allow “cannabis testing/lab,” “cannabis delivery” and “cannabis infused products” in the in the “Industrial (I)”, “Light Industrial/Office (LI/O)” and “Core Canal Industrial/Office (CCI/O)” zoning districts. There is a also a proposed requirement that this sort of use be more than 600 feet away from a school (per state law). • The new uses are proposed to be permitted by right (P), in the I, LI/O and CCI/O Districts. That means that they can operate without a requirement to obtain a Use Permit, but will still have to comply with the licensing process established by Chapter 10.96 and City Council Resolution which establishes a limit on number of cannabis businesses by each business type. • The new uses would be prohibited in the Lindaro Mixed Use (LMU) District, given that all of that District falls within 600 ft. of a Davidson Middle School. The new land use classifications are proposed to be inserted in the location of the land use table shown below (between the existing text) and the new text is identified with italics/underline. Table 14.06.020 Types of Land Use I LI/O CCI/O LMU Additional Use Regulations Printing Shops P P P P REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 8 Cannabis Related Uses Cannabis Testing/lab P (1) P (1) P (1) *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Cannabis Delivery P (1) P (1) P (1) *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Cannabis Infused Products P (1) P (1) P (1) *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Card Rooms C See Chapter 10.36 (1) Shall not be located within 600 feet from schools (public and private), as measured from the property lines of each parcel. Chapter 14.13.030 – Land Use Regulations (-WO) Proposed changes to the Wetland Overlay (-WO) District table would clarify that the current land use of “Agriculture, cultivation of crops” does not include cultivation of cannabis. This change consists of a new note that would be added under the “Additional Use Regulations” column which excludes cultivation of cannabis. This new land use clarification is proposed to be inserted in the location of the land use table shown below with the new text identified with italics/underline. Table 14.13.030 Type of Land Use WO Additional Use Regulations Agriculture, cultivation of crops C Excludes cultivation of cannabis, which is prohibited throughout the City of San Rafael REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 9 Chapter 14.16 (Site and Use Regulations): 14.16.245 – Prohibition on Medical Marijuana dispensaries The current Zoning Ordinance includes a prohibition on medical marijuana dispensary (SRMC 14.16.245). This code was established in 1997, following the passage of SB 215, which allowed for medical marijuana use. This section is proposed for deletion and addition of a new, more comprehensive statement, is proposed to clarify the City’s zoning regulations pertaining to cannabis uses following the passage of the Proposition 64. The following site and use regulation is proposed for deletion, as noted by strikethrough text. 14.16.245 - Medical marijuana dispensary. A medical marijuana dispensary is not an allowable use within any district of the city. In it’s place, a new site and use regulation is proposed to be added as 14.16.245 and is proposed to state: 14.16.045 - Cannabis Uses Specific medical cannabis uses are allowed by the Zoning Ordinance, as specified in the land use tables and as defined by the definition chapter, including and limited to cannabis testing/lab (both medicinal and recreational adult use), cannabis infused products (medicinal only) and cannabis delivery (medicinal only). All other medicinal or recreational medical cannabis uses, such as dispensaries, cultivation, and processing are prohibited. The land use regulations contained pertaining to cannabis in this Title do not apply to personal cultivation or use of cannabis. Personal cultivation and use of cannabis shall be subject to State law and any limitation imposed by state law. 14.16.220 - Home Occupations San Rafael currently has a home occupation ordinance, which allows for home occupation businesses to occur within a residence, as long as the business is conducted as an accessory business use to the residence. The Ordinance establishes standards that home occupations must comply with (use of less than 25% of home size, no outdoor storage, no more than 1 client at a time, etc). Lastly, the Ordinance lists specific types of home occupation businesses that are prohibited, due to the nature of the business and the tendency of that business to increase beyond established limit once started. The current home occupation standards are contained in SRMC 14.16.220. “Medical marijuana dispensary”, is one of the types of businesses specifically prohibited as a home occupation (SRMC 14.16.220.F.l). Given that there now are new State laws that allow personal use and cultivation, edits to the list of prohibited uses provided under the Home Occupation section are proposed: The modifications proposed to the existing Ordinance are shown below (as strikethough for deletion and italics/underline for new text). F. Uses that are Prohibited. The following uses by the nature of the business or operation have a pronounced tendency once started to rapidly increase beyond the limits permitted for home occupations or cannot operate in compliance with applicable licensing requirements or the home occupation performance standards and ther eby substantially impair the use and value of a residential area for residence purposes (e.g., the use would generate impacts on the surrounding neighborhood that are more frequent than that usually experienced in an average residential occupancy in the di strict under normal circumstances wherein no home occupation exists. This may include but not be limited to REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 10 a home occupation that would generate traffic associated with the business outside of normal daytime business hours or on Sundays, or other impacts not typically associated with a home occupation use such as excess vehicle parking or storage of materials or equipment). Therefore the uses specified below, and any use determined by the community development director to be similar in its operations or po tential impacts, shall not be permitted as home occupations: a. Animal keeping for commercial purposes (such as commercial pet sitting, boarding or animal training); b. Auto repair, minor or major; c. Auto sales; d. Carpentry; e. Dance instruction; f. Dental or medical offices; g. Painting of vehicles, trailers or boats; h. Photo-developing or photo studios; i. Private schools with organized classes; j. Upholstering; k. Fortunetelling. l. Any cannabis related business (personal use and cultivation are permitted subject to limitations of state law) Medical marijuana dispensary, which is not permitted in any district within the city of San Rafael; m. Firearms dealer; n. Taxi service, dispatch, or vehicle tow service. These proposed edits do not alter the original intent of the current home occupation ordinance, which was to not allow cannabis uses from a home. It is important to note that the prohibition relates to cannabis business uses as a home occupation only and does not relate to personal use and cultivation which is governed by State law. Chapter 14.18 (Parking Site and Use Regulations): Given the introduction of new land use categories in the land use tables, there is also a need to establish a parking standard for those new land use types. Given that the types of cannabis related land uses that are proposed to be allowed in San Rafael are not retail based, parking requirements would be similar to other distribution or manufacturing or laboratory type of uses already contained in the zoning ordinance, which would be 1 space for every 500 sq. ft. of building area. Therefore, the new parking standards are proposed to be inserted in the location of Chart 14.18.040 as shown below (between the existing text) and the new text is identified with italics/underline. Chart 14.18.040 Use Classification Off-Street Parking Required Wholesale and distribution 1 space per 500 sq. ft. gross building sq. ft. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 11 Cannabis testing/lab, cannabis infused products and cannabis delivery 1 space per 500 gross building sq. ft. Marinas 3 spaces for every 4 boat slips. Plus parking for support uses in the marina, such as restaurants or retail uses. ANALYSIS San Rafael General Plan 2000 Consistency: The proposed Zoning Ordinance text amendment would be consistent with the following San Rafael General Plan 2020 policies contained in the Land Use and Economic Vitality Elements: Land Use (LU) Policies LU-14 (Land Use Compatibility), LU-16 (Building and Automotive Services) and LU-17 (Limited Retail and Service Uses in industrial and Office Areas) and LU-22 (Odor Impacts). The Zoning Ordinance amendments to allow certain cannabis-related uses in the Industrial and limited commercial area would be compatible with other testing, manufacturing and delivery types of uses in those areas. Additional regulations specific to cannabis-related business would assure limited interface with residential or school uses. In addition, the limitations that will be established on the number of licenses through adoption of a separate City Council Resolution will minimize the potential for cannabis uses to take over the City’s limited industrial and light industrial areas or to impact certain important uses such as building and automotive services. Furthermore, no retail uses of cannabis are proposed to be allowed, therefore, will not impact the City’s limited industrial areas. Although the three types of cannabis uses proposed to be allowed in San Rafael would include certain office areas, specifically the Commercial/Office land use designation. The City does have an overabundance of office space and high vacancies that can absorb the limited number of cannabis related uses. Lastly, any potential odor impacts from cannabis uses would be regulated through the licensing process and the types and quantities of cannabis that can be stored in these uses will be minimal. Economic Vitality Element (EV) Policies EV-1 (Economic Health and Quality of Life), EV-2 (Seek, Retain and Promote Business that Enhance San Rafael), EV-6 (Shop Locally) and EV-8 (Diversity of our Economic Base). With the passage of the new state law, there is significant demand and interest in a wide range of cannabis uses throughout the State. Each City and county is evaluating this topic and evaluating options for how their communities will address cannabis uses. The cannabis industry and the potential for taxation can bring significant financial benefits to a community. In addition to establishing the regulatory framework and the types of cannabis uses that will be allowed in the City of San Rafael, we are also exploring options to modify the City’s taxing authority to collect taxes on the businesses within the City of San Rafael. It is likely that a ballot initiative will be considered to establish a local cannabis excise tax in the near future. These proposed amendments would open the City to accommodate a few types of uses in the cannabis business chain, in limited numbers. The addition of these businesses will diversify the city’s economic base, especially at a time where the retail industry is changing, and thereby effecting the City’ tax base. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 12 Zoning Ordinance Consistency: As proposed, the text amendments to the Zoning Ordinance would be consistent with the San Rafael Zoning Ordinance (Title 14). Adding zoning regulations pertaining cannabis-related uses would further implement the State Law (Proposition 215) and the City’s Urgency Ordinance (Ord.1949) and would facilitate implementation of Resolution 14455 by identifying the districts within which cannabis-related uses would be allow in the City of San Rafael. State law established licenses for each specific type of business in the overall cannabis supply chain, ranging from cultivation, to testing, transport, delivery, dispensary, etc. In total, there are parts of the supply chain and for each type of cannabis business, there is a separate state license type for medicinal and recreational adult use. The City Council has focused the types of business it will allow in San Rafael to three from the supply chain: testing/lab, infused products and delivery. As such, the proposed Zoning Ordinance amendments respects the Council’s past actions by proposing regulations pertaining to those three types of cannabis-related business. Other cannabis related businesses would not be permitted. The City Council has approved a licensing process and application process by Resolution, No. 14455, establishing limits on the number of licenses for each specific cannabis use at four (4) for each of the three business types, except infused products, for which eight (8) licenses are allowed. The proposed Zoning Ordinance amendments would add definitions for these new uses; land use allowances identify Zoning Districts within which each of these uses would be allowed; establish parking requirements for these types of uses; and provide other clean up and clarifications. Once a business identifies an appropriate location based on the allowable uses and locations established by the proposed Zoning amendments, all businesses would still need to: comply with State laws and the State’s permitting process; comply with the local permitting and license process regulating cannabis; and be within the maximum number of licenses established by the Council (SRMC 10.96). The regulatory scheme that is proposed is that the zoning would only establish areas these new businesses could operate. No land use permit (i.e. Use Permit) is proposed to be required. The application process and approval of businesses, licensing, and enforcement would be administered through a separate chapter regulating business types in the Municipal Code. This sort of regulatory framework is similar to the City’s massage ordinance. The main reason this regulatory scheme is proposed is that most of the regulation related to cannabis business is not land use related, but rather business specific and it is recommended that the best manner in which to regulate this is through the business ordinance, not zoning Below, is more detailed analysis on the proposed changes to the land use tables: Industrial Zoning Districts, • Lab/testing, delivery and production infusion are types of businesses that would be similar to business types that are currently allowed in these districts. The only difference is that they include cannabis. For example, delivery of any products is already allowed in these districts, • All three of the use types are proposed to be allowed in the I, LI/O and CCI/O, but not in the Lindaro Mixed use permit (LMU). The reason they are not proposed for the LMU District is that State law prohibits any cannabis business to be located within 600 feet of a school, and all of the LMU District falls within that distance. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 13 • In all cases, based on State law, any cannabis use in the I ,LI/O and CCI/O districts would be prohibited if located within 600 feet of a school and the separation requirement will be checked prior to providing any zoning clearance. Commercial Zoning Districts • All three of the use types are proposed to be allowed in the C/O Districts, but delivery and testing/lab would only be allowed in the Office Districts. The reason infused products is not proposed to be allowed in the O Districts is that the O District typically has office buildings, with multi tenant spaces in an office setting, and infused products use would not be similar to other uses in those area. Infused products includes assembly or production some sort of food, cream or other product and the assembly or making of products would not be compatible with typical office uses. In the C/O District, there are more commercial buildings, that would be more appropriate to have a use that makes a product and infuses it with cannabis. • In all cases, based on State law, any cannabis use is prohibited if located within 600 feet of a school and the separation requirement will be checked prior to providing any zoning clearance. In addition, given the potential odor and hours of operation impacts form a cannabis infusing business, it may not be compatible with residential nearby. Since a majority of the C/O Districts are near residential districts, a requirement has also been included to prohibit the use if within 300 ft of a residential district. Applicable sections of the Zoning Map, that contain the districts with proposed amendments are attached (Exhibit 4). These limitations established by the Council on the number of licenses that can be issued in San Rafael for the three different cannabis uses (delivery, testing/laboratory and infused products) would prevent an onslaught of such uses and prevent overwhelming the City’s limited industrial and light industrial base to the detriment of the City. In the future, the Council may consider increasing or decreasing the number of licenses through adoption of a resolution. The key is that these three specific types of cannabis uses have been selected given that the function and nature of these uses is really no different than other businesses that may perform the same functions in those same districts. Given that the action before the Commission this evening is a recommendation on a Zoning Ordinance amendment, the Commission’s rules and procedures require a majority vote of the entire Commission (4 votes) to carry. This is different than normal actions by the Commission which require a majority of those present to pass an action. ENVIRONMENTAL DETERMINATION The proposed Zoning Ordinance text amendment is categorically exempt from the requirements of t he California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 14 CRR Section 15061(b)3 (General Rule) which exempts projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. If the Planning Commission determines that this project is in an environmentally-sensitive area, further study may be required. NEIGHBORHOOD MEETING / CORRESPONDENCE Notice of this hearing was conducted in accordance with noticing requirements contained in Chapter 29 of the Zoning Ordinance. A Notice of Public Hearing was published in the Marin IJ , on January 30, 2018, 15 days in advance of this meeting. REPORT TO PLANNING COMMISSION - Case No: ZO17-003 Page 14 There have been a variety public comments during City Council meetings regarding the City’s consideration of cannabis businesses. Nearly all of the comments made during City Council meetings have been about the need to allow cannabis related businesses in San Rafael and been in support of allowing certain businesses. At this time, there have been no specific comments on the proposed Zoning Ordinance amendments. OPTIONS The Planning Commission has the following options: 1. Recommend approval of the Zoning Ordinance amendments as presented (staff recommendation) 2. Recommend approval of the Zoning Ordinance amendments with certain modifications, changes or additional conditions of approval. 3. Continue the application to allow staff to address any of the Commission’s comments or concerns 4. Recommend denial of the proposed amendments and direct staff to return with a revised Resolution project EXHIBITS 1. Draft Resolution 2. December 4, 2017 City Council Staff Report and Ordinance No. 1949 Creating Cannabis Ordinance 3. January 16, 2018 City Council Staff Report and Resolution No 14455 Adopting Pilot Program for Cannabis 4. Zoning Ordinance Maps of areas within the City zoned I, LI/I, CCI/O, O and C/O 5. Public Hearing Notice published in Marin IJ Exhibit 1 - Page 1 RESOLUTION NO. ____ RESOLUTION OF THE CITY OF SAN RAFAEL PLANNING COMMISSION RECOMMENDING TO THE CITY COUNCIL ADOPTION OF AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING SAN RAFAEL MUNICIPAL CODE TITLE 14 – ZONING, SPECIFICALLY AMENDING SELECTED CHAPTERS AND SECTIONS TO INCORPORATE ZONING REGULATIONS FOR CANNABIS USES, INCLUDING: A) ADD/MODIFY DEFINITIONS; B) ADD/MODIFY LAND USE TABLES; C) DELETE AND UPDATED OBSOLETE PROVISIONS; D) AMEND SITE AND USE AND HOME OCCUPATIONS REGULATIONS; AND E) ADD PARKING REGULATIONS; CITYWIDE (FILE NO. ZO17-003) WHEREAS, the City of San Rafael has prohibited medical cannabis dispensaries since 1997, in response to the passing of the 1996 Compassionate Use Act, a ballot initiative known as Proposition 215. Since that time, no cannabis businesses have been permitted in City limits; 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/recreation adult-use. Cities and counties throughout California are revisiting local cannabis regulations to address a legal cannabis regulatory landscape; and WHEREAS, Proposition 64 allows for nonmedical/recreation adult-use. The developing regulatory framework in AUMA establishes a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis; and WHEREAS, Proposition 64 reserves to local jurisdictions the right to impose additional local regulations on medical and nonmedical/recreation adult-use commercial activities, and to prohibit them entirely if they choose to do so. WHEREAS, in January 2017, San Rafael City Council reviewed the statutory law of AUMA and instructed staff to form a City Council ad-hoc subcommittee to review San Rafael’s cannabis policies. The Medical Cannabis Council Ad-Hoc Subcommittee (MC Subcommittee) included Councilmember Kate Colin and Councilmember John Gamblin and City staff from various departments; 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; and WHEREAS, over the course of several months, the MC Subcommittee reviewed all license types available under the State’s medical cannabis framework Medical Cannabis Regulation and Safety Act of 2015 (MCRSA) to develop a set of recommendations for full Council consideration; and Exhibit 1 - Page 2 WHEREAS, the MC Subcommittee reviewed federal and state regulatory milestones to understand the evolution of legal medical cannabis and the implications for the City of San Rafael. The MC Subcommittee decided to only focus on medical, while prohibiting nonmedical/recreational adult-use commercial cannabis activities for now. Consensus was reached on exploring a limited number of medical cannabis permits in San Rafael and was to be forwarded to the full City Council for review and action. The consensus was to meet the following objectives: a) Discreet, low impact and minimal public interface; b) Provide safe patient access, c) Improve transparency and reduce public safety risks; d) Add new revenue to support city infrastructure and services; e) Create new jobs, produce artisan products; and f) Promote a diversified economy; and WHEREAS, on December 4, 2017, the Council conducted a public hearing to consider an Urgency Ordinance. In conclusion, the Council adopted Ordinance No. # 1949, amending the City’s Municipal Code and adding a new Chapter (SRMC 10.96) regulating commercial cannabis activity in San Rafael city limits, as an Urgency Ordinance, in order to advance local regulations before the State of California begins accepting commercial cannabis applications on January 2, 2018; and WHEREAS, Urgency Ordinance # 1949 was adopted for the immediate preservation of the public peace, health or safety, because without a clear statement as to which commercial cannabis activities will be permitted in San Rafael, there is a possibility that state law will issue licenses for a much wider variety of commercial cannabis activities in the City than the MC Subcommittee has recommended. The urgency Ordinance established the following: Permitted Medical Cannabis Commercial Operations Authorize a limited number of commercial medical cannabis operator licenses: • Medical cannabis delivery (State License Type 9) • Medical cannabis product manufacturing, ie infused products (State License - Class N) • Cannabis testing lab (State License – Type 8). The State of California will only be providing cannabis testing labs with one license to service both medical and nonmedical/recreational adult-use for public safety reasons. Prohibited Medical Cannabis Commercial Operations The new ordinance prohibits the following commercial medical cannabis activities: • Cultivation, processing and some manufacturing activities • Dispensaries Prohibited Nonmedical/Recreation Adult-use Cannabis Commercial Operations The new ordinance also prohibits: • All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA pending further staff reviews of the State’s new MAUCRSA regulations. WHEREAS, on January 16, 2018, the Council conducted a public hearing and considered a Resolution outlining the application process/requirements and establishing the number of licenses; and. Exhibit 1 - Page 3 WHEREAS, on January 16, 2018, the City Council adopted Resolution No 14455, which approved the application process/form and established the following number of licenses: a) Four (4) licenses for Cannabis testing/lab (medicinal and adult use); b) Eight (8) licenses or Cannabis infused products (medicinal); and c) Four (4) licenses for Cannabis delivery (medicinal); and WHEREAS, following the Council’s adoption of an Ordinance No. 1949 to establish a Municipal Code Section (SRMC 10.96) for the regulation and licensing of medicinal Cannabis businesses and the adoption of Resolution No 14455 to create a pilot program with license limits, the City must next establish the land use/zoning rules for allowing cannabis-related uses, specifically the type of cannabis-related uses that will be allowed, where those uses will be allowed in the city and whether land use permits are required for cannabis uses; and WHEREAS, City staff initiated amendments to San Rafael Municipal Code (SRMC) Title 14- Zoning (Zoning Ordinance) to implement the prior actions and outline appropriate Zoning Districts for the new uses and public notice for the amendments to the Zoning Ordinance were noticed in the Marin Independent Journal on January 30, 2018; and WHEREAS, the amendments to the San Rafael Municipal Code, Title 14, do not propose any changes to City policies or regulations that would result in a direct or indirect physical, environmental impact; therefore it has been determined that this ordinance amendment is covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and is not subject to environmental review; and WHEREAS, on February 13, 2018, the Planning Commission held a duly-noticed public hearing on the proposed amendments to the San Rafael Municipal Code, Title 14, accepting all public testimony and the written report of the Department of Community Development, and recommended to the City Council the approval of the amendments; and NOW, THEREFORE, BE IT RESOLVED, that the Planning Commission recommends to the City Council adoption of the amendments to the San Rafael Municipal Code Title 14, Zoning, as outlined in the attachment “Attachment 1”, based on the following findings as required under Zoning Code Section 14.27.060: 1. The amendments to San Rafael Municipal Code Title 14 – Zoning are consistent with the policies and programs of the San Rafael General Plan 2020 in that: a. As proposed, the amendments would update the Zoning Ordinance to 1) incorporate the definitions, land use allowances and parking requirements for cannabis uses into the Zoning Ordinance; 2) delete or update obsolete provisions; 3) update existing Site and Use regulation related to cannabis-related uses; and 4) update Home Occupations regulations to clarify the City’s intent for cannabis uses as home occupations. This action would be consistent with General Plan Program LU-23a (Zoning Ordinance Amendments), which encourages periodic updates to the Zoning Ordinance in order to maintain a current and internally consistent code; and reflect the prior actions by the Council. Exhibit 1 - Page 4 b. As proposed, the amendments would be consistent with Land Use (LU) Policies LU-14 (Land Use Compatibility), LU-16 (Building and Automotive Services) and LU-17 (Limited Retail and Service Uses in industrial and Office Areas) and LU-22 (Odor Impacts). The Zoning Ordinance amendments to allow certain cannabis-related uses in the Industrial and limited commercial area would be compatible with other testing, manufacturing and delivery types of uses in those area. Additional regulations specific to cannabis-related business would assure limited interface with residential or school uses. In addition, the limitations that will be established on the number of licenses through adoption of a separate City Council Resolution will minimize the potential for cannabis uses to take over the City’s limited industrial and light industrial areas or to impact certain important uses such as building and automotive services. Furthermore, no retail uses of cannabis are proposed to be allowed, therefore, will not impact the City’s limited industrial areas. Although the three types of cannabis uses proposed to be allowed in San Rafael would include certain office areas, specifically the Commercial/Office land use designation. The City does have an overabundance of office space and high vacancies that can absorb thelimited number of cannabis uses. Lastly, any potential odor impacts from cannabis uses would be regulated through the licensing process and the types and quantities of cannabis that can be stored in these uses will be minimal. c. As proposed, the amendments would be consistent with Economic Vitality Element (EV) Policies EV-1 (Economic Health and Quality of Life), EV-2 (Seek, Retain and Promote Business that Enhance San Rafael), EV-6 (Shop Locally) and EV-8 (Diversity of our Economic Base). With the passage of the new state law, there is significant demand and interest in a wide range of cannabis uses throughout the State. Each City and county is evaluating this topic and evaluating options for how their communities will address cannabis uses. The cannabis industry and the potential for taxation can bring significant financial benefits to a community. In addition to establishing the regulatory framework and the types of cannabis uses that will be allowed in the City of San Rafael, we are also exploring options to modify the City’s taxing authority to collect taxes on the businesses within the City of San Rafael. It is likely that a ballot initiative will be considered to establish a local cannabis excise tax in the near future. These proposed amendments would open the City to accommodate a few types of uses in the cannabis business chain, in limited numbers. The addition of these businesses will diversify the city’s economic base, especially at a time where the retail industry is changing, and thereby effecting the City’ tax base. 2. The public health, safety and general welfare are served by adoption of the proposed Zoning Ordinance amendments, in that they would: a) correct errors and inconsistencies and delete obsolete code provisions; b) incorporate new code provisions to address a State-wide voter initiative to allow for nonmedical/recreation adult-use; c) Reflect the San Rafael City Council’s prior actions to allow certain cannabis-related uses; c) implement policies and programs in the San Rafael General Exhibit 1 - Page 5 Plan 2020 that encourage periodic update to the Zoning Ordinance and ensure consistency with the General Plan; and d) promote existing and new businesses and industry to serve residents of San Rafael and Marin County. The foregoing Resolution was adopted at the regular City of San Rafael Planning Commission meeting held on the 13th day of February 2018. Moved by Commissioner _____________ and seconded by Commissioner ________________. AYES: COMMISSIONERS NOES: COMMISSIONERS ABSENT: COMMISSIONERS SAN RAFAEL PLANNING COMMISSION ATTEST: BY: Paul Jensen, Secretary Berenice Davidson, Chair Attachment 1 -Amendments to San Rafael Municipal Code (SRMC) Title 14 -Zoning Exhibit 1 Attachment 1 Page 1 of 7 Attachment 1 Amendments to San Rafael Municipal Code (SRMC) Title 14 -Zoning The following sections of the San Rafael Municipal Code (SRMC) Title 14 – Zoning are hereby amended as follows: Chapter 14.03 - Definitions 1. Amend the list of definitions in Section 14.03.030 by inserting new definitions, as identified by underline/italics, in alphabetical order, as follows: “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. “Cannabis Testing/lab” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products (either medicinal and adult use) 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. “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. “Cannabis Infused Products” means producing edible or topical products that include pre extracted cannabis oils, to create edibles, beverages, capsules, vape cartridges tinctures or topical for medicinal purposes. 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 facility by multiple businesses that perform cannabis infused products, (similar to a commercial kitchen). Shared manufacturing is regulated by the State of California as Type S Cannabis license. Distribution and transport of cannabis infused products as part of normal operations of the business is considered an ancillary use to this category and therefore allowed Exhibit 1 Attachment 1 Page 2 of 7 “Dispensary” means a storefront or facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale. “Medical cannabis” or “medicinal cannabis” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), as further defined by SRMC 10.96.040. 2. Amend the list of definitions in Section 14.03.030 by deleting the following existing definition in it’s entirety, as noted by strikethrough text, as follows: “Medical marijuana dispensary” which is means a facility where marijuana is made available for medical purposes in accordance with Health and Safety Code Section 11362.5 (Proposition 215). Chapter 14.05.020 – Land Use Regulations (GC, NC, O, C/O, R/O, FBWC) 3. Amend Table 14.05.020 by inserting new land use classifications, land use allowance and additional use regulations, as noted by underline/italics, in the location specified below, as indicated below: Table 14.05.020 Type of Land Use GC NC O C/O R/O FBW C* Additional Use Regulations Printing shops P P P CZ Cannabis Related Uses Cannabis Testing/lab P P *Subject to additional regulations and permitting (See Exhibit 1 Attachment 1 Page 3 of 7 SRMC Chapter 10.96) Cannabis Delivery P P *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Cannabis Infused Products P (32) Card rooms See Chapter 10.36 4. Amend the footnotes to the Table 14.05.020 by inserting new footnotes, noted by underline/italics, in numerical order specified below, as indicated below: (32) Shall not be located within three hundred (300) feet away of a residential zoning district (R, DR or HR), as measured from the property lines of each parcel. If within 300 ft, then use is prohibited. (33) Shall not be located within 600 feet from schools (public and private), as measured from the property lines of each parcel. Chapter 14.06.020 – Land Use Regulations (I, LI/O, CCI/O, LMU) 5. Amend the Table 14.06.020 by inserting new land use classifications, permitting authority and additional use regulations, as noted by underline/italics, in the location specified below, as indicated below: Table 14.06.020 Types of Land Use I LI/O CCI/O LMU Additional Use Regulations Exhibit 1 Attachment 1 Page 4 of 7 Printing Shops P P P P Cannabis Related Uses Cannabis Testing/la b P (1) P (1) P (1) *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Cannabis Delivery P (1) P (1) P (1) *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Cannabis Infused Products P (1) P (1) P (1) *Subject to additional regulations and permitting (See SRMC Chapter 10.96) Card Rooms C See Chapter 10.36 6. Amend the footnotes Table Section 14.05.020 by inserting a new footnote, noted by underline/italics, as specified below, as indicated below: (1) Shall not be located within 600 feet from schools (public and private), as measured from the property lines of each parcel. Exhibit 1 Attachment 1 Page 5 of 7 Chapter 14.13.030 – Land Use Regulations (-WO) 7. Amend the land use table in Section 14.13.030 by inserting new language under the “Additional Use Regulations” column, noted by underline/italics, as indicated below: Table 14.13.030 Type of Land Use WO Additional Use Regulations Agriculture, cultivation of crops C Excludes cultivation of cannabis, which is prohibited throughout the City of San Rafael Chapter 14.16.245 – Prohibition on Medical Marijuana dispensaries 8. Delete Section 14.16.245 in its entirety, as noted by strikethrough, as indicated below: 14.16.245 - Medical marijuana dispensary. A medical marijuana dispensary is not an allowable use within any district of the city. Chapter 14.16.045 – Cannabis Uses 9. Add a new Section 14.16.045, by inserting new title and text, as noted by underline/italics, as indicated below: 14.16.045 - Cannabis Uses Specific medical cannabis uses are allowed by the Zoning Ordinance, as specified in the land use tables and as defined by the definition chapter, including and limited to cannabis testing/lab (both medicinal and recreational adult use), cannabis infused products (medicinal only) and cannabis delivery (medicinal only). All other medicinal or recreational medical cannabis uses, such as dispensaries, cultivation, and processing are prohibited. Exhibit 1 Attachment 1 Page 6 of 7 The land use regulations contained pertaining to cannabis in this Title do not apply to personal cultivation or use of cannabis. Personal cultivation and use of cannabis shall be subject to State law and any limitation imposed by state law. Chapter 14.16.220 - Home Occupations 10. Amend the section to delete and replace subsection l, as noted by strikethrough underline/italics, as indicated below: F. Uses that are Prohibited. The following uses by the nature of the business or operation have a pronounced tendency once started to rapidly increase beyond the limits permitted for home occupations or cannot operate in compliance with applicable licensing requirements or the home occupation performance standards and thereby substantially impair the u se and value of a residential area for residence purposes (e.g., the use would generate impacts on the surrounding neighborhood that are more frequent than that usually experienced in an average residential occupancy in the district under normal circumstan ces wherein no home occupation exists. This may include but not be limited to a home occupation that would generate traffic associated with the business outside of normal daytime business hours or on Sundays, or other impacts not typically associated with a home occupation use such as excess vehicle parking or storage of materials or equipment). Therefore the uses specified below, and any use determined by the community development director to be similar in its operations or potential impacts, shall not be permitted as home occupations: a. Animal keeping for commercial purposes (such as commercial pet sitting, boarding or animal training); b. Auto repair, minor or major; c. Auto sales; d. Carpentry; e. Dance instruction; f. Dental or medical offices; g. Painting of vehicles, tr ailers or boats; h. Photo-developing or photo studios; i. Private schools with organized classes; j. Upholstering; k. Fortunetelling. l. Any cannabis related business (personal use and cultivation are permitted subject to limitations of state law) Medical marijuana dispensary, which is not permitted in any district within the city of San Rafael ; m. Firearms dealer; n. Taxi service, dispatch, or vehicle tow service. Exhibit 1 Attachment 1 Page 7 of 7 Chapter 14.18.40 (Parking Requirements): 11. Amend the Chart 14.18.040 by inserting new land use classifications and parking requirements, noted by underline/italics in the location specified below, as indicated below: Chart 14.18.040 Use Classification Off-Street Parking Required Wholesale and distribution 1 space per 500 sq. ft. gross building sq. ft. Cannabis testing/lab, cannabis infused products and cannabis delivery 1 space per 500 gross building sq. ft. Marinas 3 spaces for every 4 boat slips. Plus parking for support uses in the marina, such as restaurants or retail uses. Agenda Item No: 7.a Meeting Date: December 4, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Danielle O’Leary, Econ. Development Director City Manager Approval: ______________ TOPIC: CANNABIS REGULATION SUBJECT: AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36937(b), AMENDING TITLE 10 OF THE SAN RAFAEL MUNICIPAL CODE TO ADD NEW CHAPTER 10.96 REGULATING CANNABIS BUSINESSES WITHIN CITY LIMITS, SPECIFICALLY AUTHORIZING BY LICENSE MEDICAL CANNABIS DELIVERY, MEDICAL CANNABIS PRODUCT MANUFACTURING, AND CANNABIS TESTING ; AND PROHIBITING NONMEDICAL CANNABIS BUSINESSES RECOMMENDATION: Hold a public hearing and adopt urgency ordinance by a 4/5 vote of the Council. BACKGROUND: This year has been a bellwether year for California cannabis legislation, with the passing of voter initiative Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act, also known as (AUMA), cities and counties throughout California are revisiting local cannabis regulations to address a legal cannabis regulatory landscape. The City of San Rafael has prohibited medical cannabis dispensaries since 1997, in response to the passing of the 1996 Compassionate Use Act, a ballot initiative known as Proposition 215. Since that time, no cannabis businesses have been permitted in City limits. On November 8, 2016, the voters of the State of California enacted Proposition 64 to allow for nonmedical/recreation adult-use. The developing regulatory framework in AUMA establishes a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis. In response to the election results, the San Rafael City Council, at a January 2017 study session, reviewed the statutory law of AUMA and instructed staff to form a City Council ad-hoc subcommittee to review San Rafael’s cannabis policies. The Medical Cannabis Council Ad-Hoc Subcommittee (MC COPYExhibit 2-1 Subcommittee) included Councilmember Kate Colin and Councilmember John Gamblin. Staff support included the: City Manager, Police Chief, Fire Chief, Community Development Director, Assistant City Attorney, and the Economic Development Director. Over the course of several months, the subcommittee reviewed all license types available under the State’s medical cannabis framework Medical Cannabis Regulation and Safety Act of 2015 (MCRSA) and developed a set of recommendations for full Council consideration. 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. MAUCRSA reconciles the State’s medical cannabis regulations of the Medical Cannabis Regulation and Safety Act (MCRSA) with AUMA’s nonmedical/recreation adult-use cannabis regulations. The State issued the newly revised regulations on November 16, 2017 under their emergency rule making process. ANALYSIS: Tonight, the City Council will be reviewing the first of many steps to enact local cannabis regulations for San Rafael. The first step begins with creating a cannabis urgency ordinance in San Rafael’s Municipal Code that outlines what the City will regulate and prohibit before the State of California begins accepting cannabis applications on January 2, 2018. State law reserves to local jurisdictions the right to impose additional local regulations on medical and nonmedical/recreation adult-use commercial activities, and to prohibit them entirely if they choose to do so. The MC Subcommittee reviewed federal and state regulatory milestones to understand the evolution of legal medical cannabis and the implications for the City of San Rafael. The MC Subcommittee decided to only focus on medical, while prohibiting nonmedical/recreation adult-use commercial cannabis activities for now. Consensus was reached on exploring a limited number of medical cannabis permits in San Rafael to meet the following objectives: • Discreet, low impact and minimal public interface • Provide safe patient access • Improve transparency and reduce public safety risks • Add new revenue to support city infrastructure and services • Create new jobs, produce artisan products • Promote a diversified economy Urgency Cannabis Ordinance Ordinarily, to adopt an ordinance the City Council must approve introduction of the ordinance at a first meeting, and then finally adopt it at a second meeting not less than 5 days later. Additionally, once adopted, the ordinance normally will not become effective for 30 days. However, Government Code Section 36937(b) authorizes a city council to adopt at a single meeting an “urgency” ordinance that will take effect immediately, in cases where the council makes findings that it is required “for the immediate preservation of the public peace, health or safety” and the ordinance is passed by a four-fifths (4/5) vote of the city council. Staff is recommending that the Council adopt the attached ordinance, amending the City’s municipal code to add a new chapter 10.96 regulating commercial cannabis activity in San Rafael city limits, as an urgency ordinance, in order to advance local regulations before the State of California begins accepting commercial cannabis applications on January 2, 2018. Staff recommends that the Council may find that immediate adoption is necessary f or the immediate preservation of the public peace, health or safety, because without a clear statement as to which commercial cannabis activities will be COPYExhibit 2-2 permitted in San Rafael, there is a possibility that state law will issue licenses for a much wider variety of commercial cannabis activities in the City than the MC Subcommittee has recommended. The proposed ordinance follows the recommendations proposed by the MC Subcommittee: Permitted Medical Cannabis Commercial Operations Authorize a limited number of commercial medical cannabis operator licenses: • Medical cannabis delivery (State License Type 9) • Medical cannabis product manufacturing (State License - Class N) • Cannabis testing lab (State License – Type 8) The State of California will only be providing cannabis testing labs with one license to service both medical and nonmedical/recreation adult-use for public safety reasons. Prohibited Medical Cannabis Commercial Operations The new ordinance prohibits the following commercial medical cannabis activities: • Cultivation, processing and some manufacturing activities • Dispensaries Prohibited Nonmedical/Recreation Adult-use Cannabis Commercial Operations The new ordinance also prohibits: • All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA pending further staff reviews of the State’s new MAUCRSA regulations. The permitted medical cannabis commercial licenses listed in the urgency ordinance will require future Council approval by resolution to decide on the number of operator licenses that will be available under San Rafael’s pilot medical cannabis program. A draft resolution and application process, along with zoning recommendations will come before Council in January 2018. FISCAL IMPACT: There will be future fiscal impacts associated with regulating commercial medical cannabis in San Rafael city limits including: • Local Taxing Options: evaluate special tax vs. general tax for consideration of a San Rafael cannabis excise tax. ▪ Special tax: must be approved by two-thirds of local voters and is levied for a specific purpose; next eligible election cycles June 2018 or November 2018. ▪ General tax: can be approved by a simple voter majority; next eligible election for a Cannabis General Excise Tax would be 2020. • Excise Revenue Tax Projections: with a local tax in place, staff estimates the general fund could net approximately $1 million in revenues depending on the size and scope of the licensing process. • Administrative Staff Time: for creating an operator licensing program, processing applications and annual renewals, collecting business license taxes and conducting oversight activities. • Administrative Cost Recovery Fees: recover the reasonable regulatory costs for issuing licenses and permits, performing investigation, inspections, and audits and enforcing these regulations. (i.e., application fees, license fee, renewal fee, administrative fees) COPYExhibit 2-3 OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt urgency ordinance effective immediately. 2. Modify urgency ordinance and adopt effective immediately. 3. Direct staff to return with more information. 4. Take no action. RECOMMENDED ACTION: Hold a public hearing and adopt urgency ordinance by a vote of 4/5 of the Council. ATTACHMENTS 1. Urgency Ordinance Adding New Chapter 10.96 to the San Rafael Municipal Code COPYExhibit 2-4 Exhibit 2-5ORDINANCE NO. 1949 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL, PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 36937(b), AMENDING TITLE 10 OF THE SAN RAFAEL MUNICIPAL CODE TO ADD NEW CHAPTER 10.96 REGULATING CANNABIS BUSINESSES WITHIN CITY LIMITS, SPECIFICALLY AUTHORIZING BY LICENSE MEDICAL CANNABIS DELIVERY, MEDICAL CANNABIS PRODUCT MANUFACTURING, AND CANNABIS TESTING; AND PROHIBITING NONMEDICAL CANNABIS BUSINESSES THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES ORDAIN AS FOLLOWS: DIVISION 1. FINDINGS 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, detailed regulations for the implementation of MCRSA were subsequently issued by the State's Department of Food and Agriculture, Department of Fish and Wildlife, Department of Public Health, Department of Pesticide Regulation, Water Resources Control Board, and by a new "Bureau of Medical Marijuana Regulations" in the State Department of Consumer Affairs; 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, the State of California will begin to accept applications and issue licenses for a wide range of commercial cannabis activities on January 2, 2018, but will base its action on each license application, in part, on the provisions of commercial cannabis activity regulations, if any, adopted by the local jurisdiction in which the commercial cannabis activity would be located; 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, the governing State agencies only issued their newly revised regulations on November 16.2017. under their emergency rule making process; and WHEREAS, having only had access to the nearly 300 pages of final state regulations since November 16, the City of San Rafael has had insufficient time to develop and adopt comprehensive Exhibit 2-6regulations to govern commercial cannabis activities within the city limits in advance of the January 1, 2018 onset of state licensing; and WHEREAS, in order to limit commercial cannabis activities in the City of San Rafael to those determined by the City Council to be beneficial rather than detrimental to the residents, workers and visitors in the City, the City Council finds that it is necessary for the immediate preservation ofthe public peace, health or safety to adopt on an urgency basis, pursuant to Government Code Section 36937(b), the limited regulations set forth in this ordinance specifying the types of commercial cannabis activities that will be allowed or prohibited to operate in San Rafael starting on January 2, 2018; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS: DIVISION 2. MUNICIPAL CODE AMENDMENT. Title 10 of the San Rafael Municipal Code, entitled "BUSINESSES, PROFESSIONS, OCCUPATIONS, INDUSTRIES AND TRADES," is hereby amended to add new Chapter 10.96 entitled "Medical Cannabis Business," to read in its entirety as follows: 10.96.010 -Purpose and Intent It is the purpose and intent of this chapter 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 ofthe residents and patients ofthe city. The City Council may adopt by resolution any regulations or policies that will further the purpose of this chapter, and that do not conflict with the provisions herein. It is also the purpose and intent of this chapter to prohibit all non-medical commercial cannabis activity within the City. All definitions, authority, scope, responsibilities, requirements, standards, conditions, exemptions, procedures and penalties described within state law are adopted and incorporated. Sec. 10.96.020 -In General The Economic Development Director or her/his designee shall administer and enforce the provisions of this Chapter, applicable state law, and the rules and regulations promulgated by the State Department of Public Health and Department of Consumer Affairs Bureau of Cannabis Control or other state designated regulatory authority. This Chapter and the regulations contained herein apply to the entire City. 10.96.030 -Findings The San Rafael City Council finds: Exhibit 2-71. Since 1996, marijuana for personal medicinal purposes, when recommended by a physician, has been legal in the State of California; and 2. In 2016, California voters enacted Proposition 64, intended to create a comprehensive system to legalize, control, and regulate the cultivation, processing, manufacture, distribution, testing, and sale of non-medical cannabis, including cannabis products, for use by adults 21 years and older, and to tax the cultivation and retail sale of cannabis for non-medical use; and 3. In 2017, the Governor signed a bill to combine the regulation of both medical and non-medical cannabis under one umbrella licensing and regulatory system, entitled the "Medical and Adult-Use Cannabis Regulation and Safety Act" (MAUCRSA or Act); and 4. The Act does not limit the authority of a local governing body to adopt and enforce local ordinances regulating businesses licensed under the Act or to completely prohibit such businesses within the local jurisdiction to the full extent authorized to a local agency by the Act; and 5. The use, cultivation, distribution, production, possession and transportation of marijuana or cannabis remains illegal under Federal law, and marijuana remains classified as a "controlled substance" by both California and Federal law; and 6. This City Council does not have the authority to, and nothing in this Chapter is intended to, authorize, promote, condone or aid the production, distribution or possession of cannabis in violation of any applicable law; and 7. The City Council intends to prohibit all non-medical commercial cannabis activity within the City limits; and 8. The City Council intends to regulate the use, acquisition, cultivation, production, and distribution of medical commercial cannabis activity in a manner that is consistent with the California Constitution and the Act. The regulations are intended to apply to all medical cannabis operations in the city by any medical cannabis business licensed under the state law. Medical commercial cannabis activity can have an impact on health, safety, and community resources, and this Chapter is intended to license medical cannabis businesses where it will have a minimal impact; and 9. To the extent that medical cannabis businesses are registered and authorized by the State of California to operate in the corporate limits of the city, the City Council desires to provide for their licensing and regulation to protect the public health, safety and general welfare of the citizens of the city; and 10. This chapter is to be construed to protect the public over medical cannabis business interests. Operation of a medical cannabis business is a revocable privilege and not a right in the city. There is no property right for an individual or business to have a medical cannabis business in the city; and Exhibit 2-811. Medical cannabis is a heavily regulated industry in the city, and the city has a zero tolerance policy for violations of this chapter. 10.96.040 -Definitions For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms, and phrases set forth in this section shall have the meanings given them in this section: A. "Act" means the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). B. "Applicant" means an owner of the applicant entity applying for a City and state license. e. "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 D. "Cannabis business" means any business that engages in commercial cannabis activity. E. "Cannabis Distribution" means the procurement, sale, and transport of cannabis and cannabis products between entities licensed pursuant to state regulations. F. "Cannabis Processing" means any method used to prepare cannabis or its byproducts for commercial sale, including but not limited to: drying, cleaning, curing, packaging, and extraction of active ingredients to create cannabis related products and concentrates. G. "Cannabis products" has the same meaning as in Section 11018.1 of the Health and Safety Code. H. "Commercial cannabis activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products as provided for in Business and Professions Code section 26000 et seq .. I. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Exhibit 2-9J. "Delivery" means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform. K. "Dispensary" means a facility where cannabis, cannabis products, or devices for the use of cannabis or 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, cannabis and cannabis products as part of a retail sale. L. "License" refers to anyone (1) of the licenses described in Section 10.96.050 that specifically authorizes a person to conduct medical commercial cannabis activity in the City. M. "Licensee" means a person issued a state license under the Act to engage in medical cannabis business or a person issued a cannabis business license under Section 10.96.050 ofthis Chapter. N. "Licensing authority" means the state agency responsible for the issuance, renewal, or reinstatement of the state license, or the state agency authorized to take disciplinary action against the licensee. O. "Locallicensing authority" means the Economic Development Director or her/his designee charged with the administration ofthis chapter. P. "Manufacturer" means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or 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 relabels its container. Q. "Medical cannabis" or "medicinal cannabis" 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 Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician's recommendation. R. "M-License" means a state license issued for commercial cannabis activity involving medicinal cannabis. S. "Non-medical Cannabis" means all uses of cannabis not included within the definition of medical cannabis. T. "Premises" means the designated structure(s) and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where commercial cannabis activity is defined in subdivision (k) of section 26001 of the Business and Professions Code will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee. U. "State" means the State of California. Exhibit 2-10v. "State license" means a state license issued pursuant to California Business & Professions Code Sections 26000, et seq .. w. "Type N" means a state license issued for manufacturers that produce edible products or topical products using infusion processes, or other types of cannabis products other than extracts and concentrates, but do not conduct extractions. A Type N licensee may also package and label cannabis products on the licensed premises. x. "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: i. Accredited by an accrediting body that is independent from all other persons involved in the medical cannabis industry in the state. ii. Licensed by the Bureau of Cannabis Control within the Department of Consumer Affairs. 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. 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 (pl. 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. No license shall issue ifthe 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. Exhibit 2-11D. 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. 10.96.060 -Business license Tax Required The requirements of this chapter shall be in addition to any business license and business license tax requirements imposed pursuant to chapter 10.04 ofthis code. 10.96.070 -State license Required In addition to a license identified in Section 10.96.050 any cannabis business operating within City boundaries must possess the appropriate state license issued by the appropriate licensing authority required by state law. If a state license has not yet been issued at the time of the license application, the cannabis business shall describe how it will meet the state licensing requirements, and provide supporting documentation as required by the local licensing authority. 10.96.080 -Cannabis Business -Prohibitions A. Except as provided in Section 10.96.050, cannabis cultivation, cannabis processing, cannabis distribution, and cannabis dispensaries shall be prohibited activities in the City, and no person or entity shall conduct or engage in said activities, except where the City is preempted by federal or state law from enacting a prohibition on any such activity or prohibiting a person or entity from conducting or engaging in any such activity. B. Except as provided in Section 10.96.050, cannabis dispensaries shall be prohibited activities in the City and no license shall be issued for a medical or non-medical cannabis dispensary retail storefront. C. All cannabis businesses operating in violation of this Chapter are expressly prohibited. No entity that distributed medical cannabis prior to the enactment of this Chapter shall be deemed to have been a legally established use under the provisions of this Chapter, and such use shall not be entitled to claim legal nonconforming status for the purposes of licensing. 10.96.090 -Cannabis Cultivation Commercial or personal cultivation of cannabis within the City, for non-medical or medical use, is prohibited except as provided by Health and Safety Code section 11362.1. Exhibit 2-13The foregoing Ordinance No.1949 was adopted at a Regular Meeting of the City Council on December 4, 2017, by the following vote, to wit: AYES: NOES: ABSENT: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips COUNCILMEMBERS: None COUNCILMEMBERS: None Agenda Item No: 8.a Meeting Date: January 16, 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Economic Development Prepared by: Danielle O’Leary, Econ. Development Director City Manager Approval: ______________ TOPIC: SAN RAFAEL MEDICAL CANNABIS POLICY UPDATE SUBJECT: RESOLUTION ESTABLISHING MEDICAL CANNABIS PILOT PROGRAM OPERATOR LICENSE PROCESS RECOMMENDATIONS: 1. Accept report and Adopt Medical Cannabis Business (MCB) Resolution BACKGROUND: State Law: On November 8, 2016, the voters of the State of California enacted Proposition 64 to allow for nonmedical/recreation adult-use. The regulatory framework in AUMA (Adult Use of Marijuana Act) establishes a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis. The City of San Rafael has prohibited medical cannabis dispensaries since 1997, in response to the passing of the 1996 Compassionate Use Act, a ballot initiative known as Proposition 215. Since that time, no cannabis businesses have been permitted in City limits. In 2015, the State of California began development of MCRSA (Medical Cannabis Regulation and Safety Act), which was the first comprehensive regulatory effort enacted by the State through legislative action. City Staff Review: In response to the election results of Proposition 64, the San Rafael City Council, at a January 2017 study session, reviewed the statutory law of AUMA and instructed staff to form a City Council ad -hoc subcommittee to review San Rafael’s cannabis policies. A decision was made to pursue limited industry COPYExhibit 3-1 segments of medicinal cannabis and resulted in the formation of t he Medical Cannabis Council Ad-Hoc Subcommittee (MC Subcommittee) which included Councilmember Kate Colin and Councilmember John Gamblin. Staff support included the: City Manager, Police Chief, Fire Chief, Community Development Director, Assistant City Attorney, and the Economic Development Director. Over the course of several months, the subcommittee reviewed all license types available under the State’s medical cannabis framework, the Medical Cannabis Regulation and Safety Act of 2015 (MCRSA), and developed a set of recommendations for full Council consideration. 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. MAUCRSA reconciles the State’s Medical Cannabis Regulation and Safety Act (MCRSA) with AUMA’s nonmedical/recreation adult-use cannabis regulations. The State issued the newly revised regulations on November 16, 2017 under their emergency rule making process. Urgency Cannabis Ordinance: On December 4, 2017, Council adopted Ordinance No. 1949 (the “Cannabis Urgency Ordinance”), an urgency ordinance adding new Chapter 10.96 to the San Rafael Municipal Code to advance local regulations for commercial cannabis activity in San Rafael city limits before the State of California’s January 1, 2018 start date for accepting commercial cannabis applications. The Cannabis Urgency Ordinance establishes the following regulations: Permits Medical Cannabis Commercial Operations Authorizes a limited number of commercial medical cannabis operator licenses: • Medical cannabis delivery (State License Type 9) • Medical cannabis infused product manufacturing (State License - Type N) • Cannabis testing lab (State License – Type 8) Prohibits Medical Cannabis Commercial Operations • Cultivation, processing and some manufacturing activities • Dispensaries Prohibits Nonmedical/Recreation Adult-use Cannabis Commercial Operations • All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA pending further staff reviews of the State’s new MAUCRSA regulations. ANALYSIS: The Cannabis Urgency Ordinance established only a general regulatory framework, with the details of the requirements and restrictions for cannabis businesses to be established by a subsequent City Council resolution. Therefore, following the Council’s adoption of the Cannabis Urgency Ordinance , the MC Subcommittee met on January 8, 2018, to review the number of licenses recommended by staff and to provide feedback on staff’s proposals for the Medical Cannabis Business (“MCB”) operator license application process. Staff has prepared a resolution for adoption of the proposed policies and procedures (hereafter referred to as the Medical Cannabis Business, or MCB, Resolution), which is attached to this report. The following MCB operator license amounts are recommended for Council consideration: • Cannabis Testing Labs (State License Type 8): 4 licenses • Medical Cannabis Infused Products Manufacturing (State License Type N): 8 licenses • Medical Cannabis Delivery (State License Type 9): 4 licenses COPYExhibit 3-2 The MC Subcommittee also reviewed the MCB operator license application, which includes a selection process outlined below: • Round 1: Call for applications • Round 2: Pre-screen • Round 3: Ranking • Round 4: Operator selection • Round 5: Zoning clearance, business license tax, operator permit issuance The eligibility and ranking process is proposed to consist of the following evaluation areas: 1. Round 1: Call for applications: A two week open call for medical cannabis application submittals, date and time to be determined. 2. Round 2: Pre-Screen: each principal must undergo a criminal history check demonstrating compliance with the eligibility requirements of SRMC section 10.96 and certification of completed application. 3. Round 3: Ranking: Applications will be evaluated based on the following criteria: Business Plan Executive Summary, Safety and Security Plan, Patient Benefits & Education , Local Preference, Qualifications of Principals, Community Benefits. If 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. 4. Round 4: Operator Selection: within 45 business days of notification, operators will have the ability to look for sites within permitted zoning districts and return with an identified site to apply for zoning clearance, business license tax and operator license issuance. 5. Round 5: Zoning Clearance, Business License Tax, and Operator license issued: once 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 and is eligible for annual renewal. The MCB operator license application and renewal fees are based on a cost-recovery model for application intake, processing, and compliance monitoring. All costs are calculating using the fully burdened rates (salary + benefits) of the respective City staff listed below. 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 Review Time: 1 $100 COPYExhibit 3-3 Coordinator/Director hour 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 Total Costs $3,600 In addition to establishing the application process and associated fees, the City must next establish zoning rules for allowing cannabis uses in San Rafael Municipal Code Title 14 (Zoning Ordinance). Proposed zoning changes will go before Planning Commission in February and will be presented to the Council for adoption in early March, along with consideration of a resolution of intent to establish a City of San Rafael cannabis taxation measure. FISCAL IMPACT: There will be future fiscal impacts associated with reg ulating commercial medical cannabis in San Rafael city limits including: • Local Taxing Options: evaluate special tax vs. general tax for consideration of a San Rafael cannabis excise tax. ▪ Special tax: must be approved by two-thirds of local voters and is levied for a specific purpose; next eligible election cycles June 2018 or November 2018. ▪ General tax: can be approved by a simple voter majority; next eligible election for a Cannabis General Excise Tax would be 2020. • Excise Revenue Tax Projections: with a local tax in place, staff estimates the general fund could net approximately $1 million in revenues depending on the size and scope of the licensing process. • Administrative Staff Time: for creating an operator licensing program, processing applications and annual renewals, collecting business license taxes and conducting oversight activities. • Administrative Cost Recovery Fees: recover the regulatory costs for issuing licenses and permits, performing investigation, inspections, and audits and enforcing these regulations. (i.e., application fees, license fee, renewal fee, administrative fees) OPTIONS: The City Council has the following options to consider on this matter: 1. Accept report and adopt MCB Resolution. 2. Accept report and MCB Resolution with modifications. 3. Provide feedback on MCB Resolution and direct staff to return with more information. COPYExhibit 3-4 4. Take no action. RECOMMENDED ACTION: 1. Accept report and adopt MCB Resolution. ATTACHMENTS 1. MCB Resolution COPYExhibit 3-5 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. Exhibit 3-6 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. Exhibit 3-7 (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: Exhibit 3-8 • 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 Exhibit 3-9 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. Exhibit 3-10 (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 Exhibit 3-11 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 Exhibit 3-12 Exhibit 4-2I!: RS R7.S RIO R20 RIa R2a DR MR2 MR2.S MR3 MRS HRI HR1.S HR1.8 ZONING DISTRICT CODES RESIDENTIAL DISTRICT CODES SINGLE-FAMILY RESIDENTIAL DISTRICTS Single Family Residential District (5,000 sq ft lot minimum) Single Family Residential District (7,500 sq ft lot minimum) Single Family Residential District (10,000 sq ft lot minimum) Single Family Residential District (20,000 sq ft lot minimum). Single Family Residential District (1 acre lot minimum) Single Family Residential District (2 acre lot minimum) DUPLEX RESIDENTIAL DISTRICTS Duplex Residential District (2,500 sq ft per dwelling unit) MULTIFAMILY RESIDENTIAL DISTRICTS: MEDIUM DENSITY Medium Density Residential District (2,000 sq ft per dwelling unit) Medium Density Residential District (2,500 sq ft per dwelling unit) Medium Density Residential District (3,000 sq ft per dwelling unit) Medium Density Residential District (5,000 sq ft per dwelling unit) MULTIFAMILY RESIDENTIAL DISTRICTS: HIGH DENSITY High Density Residential District (1,000 sq ft per dwelling unit) High Density Residential District (1,500 sq ft per dwelling unit) High Density Residential District (1,800 sq ft per dwelling unit) NON-RESIDENTIAL DISTRICT CODES GC NC C/O o RIO FBWC 4SRC HO CSMU 2/3MUE 2/3MUW WEV S/MR/O I LI/O celio LMU PD M P/QP P/OS W -H -WO -C -EA COMMERCIAL DISTRICTS General Commercial District Neighborhood Commercial Commercial/ Office District Office District Residential/ Office District Francisco Boulevard West Commercial District DOWNTOWN DISTRICTS Fourth Street Retail Core District Hetherton Office Cross Street Mixed Use District Second/Third Mixed Use District East Second/Third Mixed Use District West West End Village District Fifth/Mission Residential/ Office District INDUSTRIAL DISTRICTS Industrial District Light Industrial/ Office District Core Canal Industrial/ Office District Lindaro Mixed Use District OTHER DISTRICTS Planned Development District . Marine District Public/ Quasi-Public District Parks / Open Space District Water District OVERLAY DISTRICTS Hillside DeVelopment Overlay District Wetland Overlay District Canalfront Review Overlay District 'Q":_'h 1 __ I A 11~ ___ o. II ,,~o.n r\,.T.o. ..... ln'TT ll~C'I+ ..... ~,...+ CITY OF SAN RAFAEL NOTICE OF PUBLIC HEARING You are invited to attend the Planning Commission hearing on the following project: PROJECT: Zoning Ordinance amendment (ZO17-003) to Title 14 of the San Rafael Municipal Code (Zoning Ordinance) to add definitions, land use provisions and parking requirements for cannabis businesses within the city limits, specifically medical cannabis delivery, medical cannabis product manufacturing, and cannabis testing; 2) prohibiting non-medical cannabis businesses; and 3) amendments to home occupation standards. State law (California Environmental Quality Act) requires that this project be reviewed to determine if a study of potential environmental effects is required. It has been determined that this project will not have a significant effect on the environment and no environmental review will be completed. This project qualifies for a Categorical Exemption from the provisions of the California Environmental Quality Act Guidelines under 14 CRR Section 15061(b)3 (General Rule) which exempts projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment). If the Planning Commission determines that this project is in an environmentally-sensitive area, further study may be required. HEARING DATE: Tuesday, February 13, 2018 at 7:00 P.M. LOCATION: San Rafael City Hall – City Council Chambers 1400 Fifth Avenue at "D" Street San Rafael, California WHAT WILL HAPPEN: You can comment on the project. The Planning Commission will consider all public testimony and decide whether to recommend approval of the project to the City Council for final action. A separate City Council hearing will be conducted with public notice following Planning Commission review and commendation. IF YOU CANNOT ATTEND: You can send written correspondence by email to the address above, or by mail/hand delivery to the Community Development Department, Planning Division, City of San Rafael, 1400 5th Avenue, San Rafael, CA 94901. FOR MORE INFORMATION: Contact Raffi Boloyan, Planning Manager at (415) 485-3095 or raffi.boloyan@cityofsanrafael.org. You can also come to the Planning Division office, located in City Hall, 1400 Fifth Avenue, to look at the file for the proposed project. The office is open from 8:30 a.m. to 4:30 p.m. on Monday, Tuesday and Thursday and 8:30 a.m. to 1:30 p.m. on Wednesday and Friday. You can also view the staff report after 5:00 p.m. on the Friday before the meeting at http://www.cityofsanrafael.org/meetings SAN RAFAEL PLANNING COMMISSION /s/ Paul A Jensen Paul A Jensen Community Development Director At the above time and place, all correspondence received will be noted and all interested parties will be heard. If you challenge in court the matter described above, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered at, or prior to, the above referenced public hearing (Government Code Section 65009 (b) (2)). Appeals of decisions by the Planning Commission to the City Council shall be made by filing a notice thereof in writing with the required fee to the Planning Division of the Community Development Department within 5 working days of a decision involving Title 14 (Zoning) (SRMC Section 14.28.030) or within 10 calendar days of a decision involving Title 15 (Subdivisions) (SRMC 15.56.010). Sign Language and interpretation and assistive listening devices may be requested by calling (415) 485-3085 (voice) or (415) 485-3198 (TDD) at least 72 hours in advance. Copies of documents are available in accessible formats upon request. Public transportation to City Hall is available through Golden Gate Transit, Line 22 or 23. Para-transit is available by calling Whistlestop Wheels at (415) 454-0964. To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products. (Please publish in the Marin Independent Journal on Tuesday, January 30, 2018.)