Article Source: City of San Bruno CA
DATE: July 10, 2018
TO: Honorable Mayor and Members of the City Council
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FROM: Marc Zafferano, City Attorney
SUBJECT: Waive First Reading and Introduce Ordinance Regulating Cultivation and Prohibiting the Manufacture, Processing, Laboratory Testing, Labeling, Storing, Wholesale, and Retail Distribution of Non-Medical Cannabis
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BACKGROUND:
Proposition 64 was adopted on the November 8, 2016 ballot (the Adult Use of Marijuana Act or "AU MA"). The Act provides that:
- Recreational cannabis use, possession, transportation, and purchase of specified amounts by adults 21 years or older is legalized, except that certain activities, such as possession or smoking cannabis will still be prohibited in those places otherwise prohibited by state law (such as places of employment) or local ordinance;
- Individuals who are 21 years or older are allowed to grow up to six cannabis plants per residence, indoors, for their personal recreational use; and
- Commercial non-medical cultivation, processing, laboratory testing, labeling, storing, wholesale distribution and retail sales of cannabis is now controlled, licensed, and taxed by an agency to be designated as the Bureau of Cannabis Control, located within the state Department of Consumer Affairs.
With the approval of Proposition 64, state licenses for commercial non-medical marijuana activities started to be issued on January 2, 2018. Under the new rules, which now refer to marijuana as cannabis, local jurisdictions may regulate, but cannot ban, personal cultivation of up to six (6) cannabis plants within a single private residence. A local jurisdiction may ban or regulate personal outdoor cultivation. Further, a local jurisdiction may ban or regulate all commercial cannabis activities, except for the lawful transportation of cannabis (or cannabis products) on public roads.
San Bruno Municipal Code Chapter 6.58 currently prohibits all medical marijuana distribution facilities throughout the City. Collective or cooperative cultivation of medical marijuana is also prohibited. This ordinance does not apply to any of the recreational, personal, or commercial non-medical activities that Proposition 64 directly permits.
On October 25, 2016, the City Council unanimously adopted an urgency ordinance to impose a moratorium on these activities so that the City can further study the effects of Proposition 64 and determine if the City should continue to prohibit some or all of these activities, or regulate them, and if so, in what manner. On November 22, 2016, the City Council extended the interim ordinance as allowed by state law until October 25, 2017.
On September 12, 2017, the City Council received a comprehensive staff report about the status of current federal, state, county, and city regulations pertaining to cannabis. After obtaining public input, the City Council directed that staff return with a final extension of the interim ordinance as allowed by state law to October 25, 2018.
On June 26, 2018, the City Council received a second comprehensive staff report, took public input, and directed staff to return with an ordinance banning all commercial cannabis activities in the City as authorized by state law. The City Council requested that staff continue to monitor developments in the area of cannabis regulation, including with respect to testing facilities.
DISCUSSION:
As previously adopted, the interim urgency ordinance established a ban on commercial cultivation, processing, laboratory testing, labeling, storing, wholesale, distribution, and retail sale and outdoor cultivation. Consistent with Proposition 64, indoor cultivation is limited to residential districts and six plants per residence entirely for the personal use of a resident of the residence who is 21 years of age or older.
The permanent ordinance attached for introduction as new Chapter 6.59 of the Municipal Code would retain all of the provisions of the interim urgency ordinance, and if adopted on July 24, 2018, would become effective 30 days thereafter on August 23, 2018. The interim urgency ordinance would expire only when the permanent ordinance becomes effective.
RECOMMENDATION:
Waive First Reading and Introduce Ordinance Regulating Cultivation and Prohibiting the Manufacture, Processing, Laboratory Testing, Labeling, Storing, Wholesale, and Retail Distribution of Non-Medical Cannabis
FISCAL IMPACT:
None from introduction of the ordinance; if the ordinance is adopted, the City could potentially forego an undetermined amount of net revenue from taxing commercial cannabis activities in the City, after accounting for any unreimbursed administrative and enforcement costs.
ALTERNATIVES:
- Decline to introduce the permanent ordinance, which would keep the interim urgency ordinance in effect until October 25, 2018 or until earlier terminated. After October 25th, the state regulations would apply in San Bruno;
- Provide additional direction to staff regarding the provisions of a permanent ordinance to either ban or regulate commercial cannabis activities.
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FULL Council Agenda Packet WITH Staff Reports can be viewed and downloaded from:
https://sanbruno.ca.gov/gov/elected_officials/city_council_minutes_n_agendas.htm
This document should be available late Friday before the Tuesday Council Meeting
Photo Credit: San Bruno CA Patch Archives
Source Credit: San Bruno CA City Council
Web Site: https://sanbruno.ca.gov
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