PC: Adoption of a Resolution Recommending to the City Council Approval of Zoning Code Amendment (P2017-149-ZCA) Amending Culver City Municipal Code, Title 17 - Zoning Section 17.700.01 - Definitions of Specialized Terms and Phrases, Section 17.220.015 - Commercial District Land Uses and Permit Requirements, Section 17.230.015 - Industrial District Land Uses and Permit Requirements, and 17.210.015 - Residential Zoning District Land Uses and Permit Requirements.
Meeting Date: November 15, 2017
Contact Person/Dept: Michael Allen/Contract Planning Manager
Sol Blumenfeld/Community Development Director
Phone Number: (310) 253-5761/ (310) 253-5660/ (310) 253-5746/ (310) 253-5727
Fiscal Impact: Yes [ ] No [X] General Fund: Yes [ ] No [X]
Public Hearing: [X] Action Item: [ ] Attachments: [X]
Public Notification: (E-Mail) Meetings and Agendas - Planning Commission (11/09/17); (Posted) City Website (11/09/17); (Published) Culver City News (10/19/17).
Department Approval: Sol Blumenfeld, Community Development Director (11/6/17)
______________________________________________________________________
RECOMMENDATION
Staff recommends the Planning Commission adopt a Resolution (Attachment No. 1), recommending to the City Council approval of Zoning Code Amendment (P2017-0149-ZCA), amending Culver City Municipal Code (CCMC) Section 17.220.015 Commercial District Land Uses and Permit Requirements; 17.230.015 Industrial District Land Uses and Permit Requirements; 17.210.015 Residential Zoning District Land Uses and Permit Requirements and Section 17.700.010 - Definition of Specialized Terms and Phrases, in order to allow commercial cannabis businesses through a ministerial approval and establishing the development standards to be in compliance with current State law.
PROCEDURES:
1. Chair calls on staff for a brief staff report and Planning Commission poses questions to staff as desired.
2. Chair opens the public hearing, providing the applicant the first opportunity to speak, followed by the general public.
3. Chair seeks a motion to close the public hearing after all testimony has been presented.
4. Commission discusses the matter and arrives at its decision.
BACKGROUND:
The proposed text amendments and contemplated cannabis related land uses have a unique legislative history with a number of laws regarding cannabis having been passed since 1996. The views and laws around cannabis differ at the State and Federal levels and have evolved over time. Commercial cannabis activities are considered federal criminal offenses under the Controlled Substances Act (CSA) adopted in 1970. The CSA made it unlawful to manufacture, distribute, dispense, or possess any controlled substance and reflects the federal government's view that marijuana is a controlled substance with "no currently accepted medical use."
Despite federal law, and similar to what has occurred in other States, in 1996 California voters passed Proposition 215 (the Compassionate Use Act), which allowed the use of medical cannabis statewide without threat of local or state criminal prosecution. Proposition 215 provided immunity from state law enforcement for patients and their designated primary caregivers to possess and cultivate marijuana for their personal medical use given the recommendation or approval of a California licensed physician. However, Proposition 215 did not cover commercial cultivation or manufacturing of cannabis products and expressly did not allow unlimited amounts of cannabis to be grown anywhere.
In 2003, Senate Bill (SB) 420 broadened Proposition 215 by further protecting patients and caregivers from state criminal prosecution for additional related activities (e.g., transporting medical cannabis) and allowed patients to form medical cultivation "collectives" or "cooperatives" to grow cannabis for medical use, as well as established a voluntary state ID card system run through county health departments.
In 2015, the California Legislature passed the Medical Marijuana Regulation and Safety Act (MMRSA or MCRSA), establishing permitting for marijuana cultivation at the state level (with local approval). Under MCRSA, all medical marijuana businesses, or commercial cannabis activities, must have a state license and a local permit, license, or other authorization in order to operate lawfully within California. The MCRSA is not specific as to the start date, except to state that businesses in good standing with their local jurisdiction may apply for state licensing in 2018.
Proposition 64, commonly known as the Adult Use of Marijuana Act (AUMA), was passed by California voters on November 8, 2016. AUMA goes beyond prior state laws which were restricted to medical cannabis activity, to allow adults 21 or older to possess, use, and cultivate recreational marijuana in certain amounts. An individual may possess p to 28.5 grams of non-concentrated marijuana or eight grams of marijuana in a concentrated from (e.g., marijuana edibles). In addition, an individual may cultivate up to six marijuana plants at a private residence provided that no more than six plants are cultivated on the property at one time. AUMA imposes state taxes on sales and cultivation, provides for industry licensing and establishes standards for cannabis products. Proposition 64 also allows local jurisdictions to regulate (including prohibit) and tax non-medical cannabis. AUMA sets up a state licensing scheme for commercialization of non-medical marijuana and state licenses for a range of commercial cannabis activities.
On June 27, 2017, Governor Brown signed Senate Bill (SB) 94, which repealed MCRSA and merged its provisions with AUMA unifying medicinal and commercial cannabis administration now referred to as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA.
Existing Culver City Regulations:
Currently, the Culver City Municipal Code (CCMC) Section 11.01.075 prohibits the issuance of a business tax certificate for any use or activity that is illegal or unlawful under federal, state or City laws or regulations. Many cities have a similar provision. If the City determines to permit some type of marijuana land use, this section, which includes activities unlawful under federal laws and regulations, requires amendment to make an exception for marijuana facilities. The CCMC is silent regarding specific marijuana land uses. Under Municipal Code section 17.110.005 and 17.200.020.B, land uses that are not listed in the Zoning Code as either permitted or conditionally-permitted land uses are prohibited. Under such permissive zoning principles, the omission of any particular land use from local zoning regulations is the equivalent of an express ban.
On February 13, 2017, the City Council considered a report on the City's options under the 2015 Medical Cannabis Regulation and Safety Act (MCRSA) and the 2016 Adult Use of Marijuana Act (AUMA), also known as Proposition 64. As a response to the changes at the state level, City Council decided to consider whether to change that existing policy, or keep it. The Council also decided to consider a full spectrum of general regulations related to cannabis.
The City Council's Strategic Plan, Goal Five ("Identify New Revenue Sources to Maintain Financial Stability"), Objective One ("Potential Retail Marijuana Excise Tax") states that City Council will consider whether retailers/dispensaries will be permitted in Culver City. If permitted, the City Council would consider a cannabis tax for placement on the ballot during the April 2018 municipal election.
Marijuana Task Force
In order to formulate recommendations, as well as get community input, the City Council created the Marijuana Task Force on February 27, 2017. The purpose of the Marijuana Task Force was to develop a recommended plan, for consideration by the City Council, to address local regulation of recreational and/or medical cannabis. The Task Force held six public meetings as outlined below.
1. Agenda of Task Force Meetings
Task Force Meeting Summary of Meetings
#1 (5/17/17) Draft Map of Potential Marijuana Business Locations with Buffer Zones.
#2 (6/03/17) Discussion on Medical or Recreational Use? Which types of businesses should be permitted?
#3 (6/07/17) When, how, and conditions on Commercial Cannabis Business operations.
#4 (6/21/17) Discussion on Personal Use, Economic Development, and Regulatory Framework.
#5 (7/17/17) Taxation and Cash Handling Issues.
#6 (9/06/17) Discussion on the Draft Ordinance.
DISCUSSION
Proposed Cannabis Business/Land Use Regulations
As a result of the aforementioned Task Force meetings, the three following actions are being considered. However only Number Two below is under the purview of the Planning Commission's recommendation.
1) Regulatory Ordinance - Amending Title 11 of the Culver City Municipal Code, to be reviewed and approved by City Council.
2) Zoning Code Amendment - Adding specified terms related to cannabis land use/business types into the definitions of existing land use terms, to be reviewed by the Planning Commission and approved by City Council.
3) Tax Ordinance - Adopting a business tax specific to cannabis related businesses, to be reviewed and approved by City Council, and subject to a ballot measure in April 2018.
Cannabis Land Use Types
Cannabis Product Sales: A commercial cannabis business 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 to customers at an on-site fixed location, including an establishment that also offers delivery of cannabis and cannabis products as part of a retail sale, in addition to on-site sales, and where the operator holds a valid commercial cannabis business permit from the City of Culver City authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer.
Retailer-Delivery only: A commercial cannabis business 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 to customers, where the premises are closed to the public and sales are conducted exclusively by delivery, where a vehicle is used to convey the cannabis or cannabis products to the customer from a fixed location, and where the operator holds a valid commercial cannabis business permit from the City of Culver City authorizing the operation of a retailer, and a valid state license as required by state law to operate a retailer.
Cultivation: Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
Manufacturer: To compound, blend, extract, infuse, or otherwise make or prepare a cannabis product.
Distribution: The procurement, sale, and transport of cannabis and cannabis products between licensees.
Testing laboratory: 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:
(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.
(2) Licensed by the State of California.
Proposed Cannabis Business Types & Locations
State law provides that no cannabis business activity shall be located within a 600-foot radius of certain sensitive uses primarily where children gather -- K-12 schools, day care centers, or youth centers -- that are in existence at the time the State issues its license. Cities can require a different, more or less, if they so choose. The draft Regulatory Ordinance adopts a 600-foot buffer zone around sensitive uses consistent with State law for retail establishments, however it does not propose a buffer for non-retail storefront cannabis related uses.
Outlined below, the Task Force proposes the following cannabis related land use types, permitted in the corresponding zones and associated standards.
2. Table Visualizing Proposed Ordinance/Regulations
PRIMARY REGULATIONS FOR COMMERCIAL CANNABIS BUSSINESSES
Land Use Types
Permits Required & Fees
Permitted Zones
Distance & Hours Restrictions
Other Noteworthy Standards
Retail
CUP
Business Permit1
CN, CG, CC, CD, CRR, CRB, IL, and IG
600 ft. radius from any school K - 12, day care center, or youth center.2
Onsite Consumption is prohibited.
Up to 3 as part of the Regulatory Ord.
Cultivation
Business Permit1
IG
None.
Onsite Consumption is prohibited.
Up to 3 as part of the Regulatory Ord.
Manufacturing
Business Permit1
IG
None.
Onsite Consumption is prohibited.
Up to 6 as part of the Regulatory Ord.
Testing
Business Permit1
CRB, IL, and IG
None.
Onsite Consumption is prohibited.
Up to 4 as part of the Regulatory Ord.
Distribution
Business Permit1
CRB, IL, and IG
None.
Onsite Consumption is prohibited.
CRB in facilities of 10,000 sq. ft. or more.
Up to 6 as part of the Regulatory Ord.
Deliver/Transport
Business Permit1
CRB, IL, and IG
None.
Onsite Consumption is prohibited.
CRB in facilities of 10,000 sq. ft. or more.
Up to 5 as part of the Regulatory Ord.
1 Fees TBA
2 Hours determined by City Council
Proposed Prohibited/Limited Activities - Regulatory Ordinance
The proposed Zone Text Amendment prohibits outdoor cultivation and on-site consumption. Outdoor cultivation is more appropriate in cities and counties with substantial agricultural lands and less dense population centers. Culver City land uses and development patterns do not present significant opportunities for outdoor commercial cannabis cultivation and may create negative impacts upon sensitive receptors like residential property or schools. Staff believes that it would be challenging to mitigate the land use impacts of outdoor cultivation, including odors, impacts on adjacent land uses, and water quality control, and therefore recommends a prohibition on outdoor commercial cultivation at this time.
The draft Regulatory Ordinance also recommends the prohibition of on-site consumption in connection with cannabis business activities. Since there is not currently a test, such as a field sobriety test for alcohol consumption, to determine if someone is under the influence of cannabis and unfit to drive a motor vehicle. This recommendation addresses the concern that on-site consumption could lead to an increase in the number of drivers operating a motor vehicle under the influence of cannabis with no proven way to enforce DUI laws. This could result in more car accidents, injuries and loss of life.
The draft Regulatory Ordinance and associated Resolution proposes the following limitations on number of establishments within Culver City:
* Cannabis Retail: Up to three (3) establishments
* Cannabis Home Delivery: Five (5) establishments
* Cannabis Cultivation: Three (3) establishments
* Cannabis Manufacturing: Six (6) establishments
* Cannabis Distribution: Six (6) establishments
* Cannabis Testing: Four (4) establishments
The draft Regulatory Ordinance would allow the City Council to reassess the number of commercial cannabis business permits at any time through the adoption of a resolution.
Proposed Zoning Code Amendments
The amendments to the Culver City Municipal Code provide definitions related to cannabis activities as defined above, and amendments to the uses in certain zones to clearly indicate the locations where such activities would be allowed as provided in Attachment 1, Exhibit A.
ENVIRONMENTAL DETERMINATION:
Pursuant to the California Environmental Quality Act (CEQA) Guidelines, an Initial Study was prepared for this Project. The Initial Study determined that the Project does not result in impacts on the environment. In conjunction with the Initial Study, a Negative Declaration (ND) has been prepared pursuant to the CEQA guidelines (Attachment 3).
The Draft ND was circulated for public review from October 24, 2017 to November 14, 2017. Copies of the Draft ND were made available to the public within the City's Planning Division Office at City Hall and on the City's website at www.culvercity.org.
As a result of public review on the Draft ND, the City has received zero letters/emails from public agencies and/or organizations as of the writing of this report. In the event any comments are received after the publishing of this report and prior to the November 14th deadline, those will be provided to the Planning Commission prior to its November 15th meeting.
MOTION:
That the Planning Commission:
Approve the attached Resolution recommending to the City Council approval of Zoning Code Amendment (P2017-0149-ZCA), amending Culver City Municipal Code (CCMC) Section 17.220.015 Commercial District Land Uses and Permit Requirements; 17.230.015 Industrial District Land Uses and Permit Requirements; 17.210.015 Residential Zoning District Land Uses and Permit Requirements and Section 17.700.010 - Definition of Specialized Terms and Phrases, in order to allow commercial cannabis businesses through a ministerial approval and establishing the development standards to be in compliance with current State law.
ATTACHMENTS:
1. Resolution and Exhibit A - Draft Zoning Code Text Amendments
2. Draft Cannabis Regulatory Ordinance
3. Negative Declaration