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HomeMy WebLinkAbout2017-09-26; City Council; ; Adopt Ordinance No. CS-323 adding Chapter 8.90 (Cannabis) to Title 8 of the Carlsbad Municipal Code and amending Section 1.080.010 to make violations of Chapter 8.90 misdCITY COUNCIL Staff Report Meeting Date: To: From: Staff Contact: Sept. 26, 2017 Mayor and City Council Kevin Crawford, City Manager Sheila Cobian, City Clerk Services Manager sheila.cobian@carlsbadca.gov or 760-434-2917 CA Review rJs Subject: Adopt Ordinance No. CS-323 adding Chapter 8.90 (Cannabis) to Title 8 of the Carlsbad Municipal Code and amending Section 1.080.010 to make violations of Chapter 8.90 misdemeanors Recommended Action Adopt Ordinance No. CS-323 adding Chapter 8.90 (Cannabis) to Title 8 of the Carlsbad Municipal Code to prohibit commercial cannabis activity and regulate the cultivation of cannabis for personal use, and amending Section 1.08.010 of Chapter 1.08 (Penalty) to make violations of Chapter 8.90 misdemeanors. Executive Summary /Discussion Ordinance No. CS-323 was introduced and first read at the City Council meeting held on Sept. 12, 2017. On a motion by Council Member Packard, seconded by Council Member M. Schumacher, the City Council voted 4/1 (C. Schumacher -No) to introduce the Ordinance presented as Exhibit 1 (Option 1). The second reading allows the City Council to adopt the ordinance which will become effective thirty days after adoption. Fiscal Analysis The proposed ordinance would preserve the status quo and thereby has no fiscal impact. Opting to regulate and tax commercial cannabis activities instead of banning them could provide tax revenue to the city. Additionally, Proposition 64 sets up a state grant fund for law enforcement, fire protection, or other local programs addressing public health and safety associated with implementing this law. However, cities that ban commercial cultivation, personal outdoor cultivation at a private residence, or the retail sale of cannabis are ineligible to receive these grant funds. Next Steps The City Clerk will have the ordinance or a summary ofthe ordinance published in a newspaper of general circulation within fifteen days following adoption of the ordinance. Environmental Evaluation (CEQA) The requested action is not a project within the definition of the California Code of Regulations, Title 14, Chapter 3, section 15378(a) since the action has no potential for resulting in either a direct change in the environment or a reasonably foreseeable indirect change in the environment. September 26, 2017 Item #10 Page 1 of 7 Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. Ordinance No. CS-323 September 26, 2017 Item #10 Page 2 of 7 ORDINANCE NO. CS-323 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADDING CHAPTER 8.90 (CANNABIS) TO TITLE 8 OF THE CARLSBAD MUNICIPAL CODE TO PROHIBIT COMMERCIAL CANNABIS ACTIVITY AND REGULATE THE CULTIVATION OF CANNABIS FOR PERSONAL USE, AND AMENDING SECTION 1.08.010 OF CHAPTER 1.08 (PENALTY) TO MAKE VIOLATIONS OF CHAPTER 8.90 MISDEMEANORS Exhibit 1 WHEREAS, the Carlsbad Municipal Code currently prohibits all commercial cannabis activity through permissive zoning, by which all uses not expressly allowed are prohibited; and WHEREAS, the federal Controlled Substances Act, 21 U.S.C. section 801 to 899, makes it unlawful to manufacture, distribute, dispense, or possess cannabis, except as part of a research study approved by the U.S. Food and Drug Administration and with U.S. Drug Enforcement Administration registration; and WHEREAS, in 1996, California voters approved Proposition 215, codified as California Health and Safety Code sections 11362.5 et seq., entitled the Compassionate Use Act, to ensure that seriously ill individuals have the right to obtain and use cannabis for medical purposes when recommended by a physician, and to exempt qualified patients and their primary caregivers from criminal prosecution under state law; and WHEREAS, in Gonzales v. Raich, 545 U.S. 1 (2005), the United States Supreme Court held that cannabis, including where used for medical purposes, violates federal law under the Controlled Substances Act, such that Federal law enforcement agents may continue to enforce the Controlled Substance Act against Californians who use cannabis for medical purposes; and WHEREAS, on January 1, 2016, the California Medical Cannabis Regulation and Safety Act became effective, requiring cities desiring to ban delivery of cannabis to do so expressly to avoid state­ issued licenses to deliver within a city's jurisdiction; and WHEREAS, on November 9, 2016, the Adult Use of Marijuana Act, also known as Proposition 64, became effective, authorizing certain personal use and cultivation of cannabis at a private residence and creating a state licensing and regulatory scheme for various commercial cannabis activities; and WHEREAS, on June 27, 2017, the Medicinal and Adult-Use Cannabis Regulation and Safety Act became effective, establishing a single state regulatory structure for both medicinal and adult-use cannabis; and September 26, 2017 Item #10 Page 3 of 7 WHEREAS, state law preserves cities' authority to prohibit commercial cannabis activity, and to reasonably regulate indoor cultivation and ban outdoor cultivation for personal use within their jurisdictions; and WHEREAS, the state does not yet have its regulatory and licensing program in place but intends to begin issuing licenses under these laws by January 1, 2018; and WHEREAS, the purpose of this ordinance is to preserve the status quo by expressly prohibiting commercial cannabis activity to avoid the issuance of state licenses for commercial cannabis activities within Carlsbad's jurisdiction, and to ban outdoor cultivation and reasonably regulate indoor cultivation at a private residence by requiring the structure be completely enclosed, secured, and screened from view from public places and neighboring properties; and WHEREAS, cannabis-related activities have resulted in crimes committed in Carlsbad including illegally operating dispensaries, delivery and sale of cannabis to youths, an explosion at an apartment building from a large-scale chemical cannabis extraction process, the robbery of a cannabis delivery driver at gunpoint, and a fire at a residence from commercial cannabis extraction; and WHEREAS, permitting commercial cannabis activities in Carlsbad would increase the availability of cannabis and risk increasing cannabis-related crimes and other undesirable secondary effects such as cannabis-related traffic deaths, youth cannabis use, and cannabis-related emergency room admissions. that: NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ordain as follows SECTION 1: The above recitations are true and correct. SECTION 2: That Chapter 8.90 is added to the Carlsbad Municipal Code to read as follows: Chapter 8.90 CANNABIS 8.90.010 Purpose. This chapter is declarative of existing law. The Carlsbad Municipal Code, Title 21 (Zoning), only allows land uses permitted by the code. No provision of the Carlsbad Municipal Code allows any cannabis operation or land use of any kind within any zone. The purpose and intent of this chapter is to clarify the intent of the Carlsbad Municipal Code to prevent the cultivation, delivery, distribution, and sale of cannabis within Carlsbad city limits to the fullest extent of the law. Commercial cannabis activity has judicially recognized adverse secondary effects on the community including, but not limited to, increases in crime in the vicinity of or as a result September 26, 2017 Item #10 Page 4 of 7 of the commercial cannabis activity; increases of fraud in obtaining or using state-issued identification cards and licenses; interference with residential property owners1 enjoyment of their properties when such properties are located in the vicinity of commercial cannabis activity as a result of increases in crime, litter, noise, and vandalism; and the deterioration of neighborhoods. Prohibition of commercial cannabis activity is necessary to prevent these adverse secondary effects and the blighting or degradation of the neighborhoods in the vicinity of commercial cannabis activity while at the same time protecting the rights of those individuals who desire to use cannabis within his or her private residence as authorized under the Adult Use of Marijuana Act. Further, it is the intent of this chapter to limit the demands on police and other city resources and allow time for the state to establish and implement its regulatory and licensing programs under the Medical Cannabis Regulation and Safety Act of 2015, the Adult Use of Marijuana Act of 2016, and the Medicinal and Adult-Use Cannabis Regulation and Safety Act of 2017. This chapter is not intended to conflict with federal or state law. It is the intention ofthe City Council that this chapter be interpreted to be compatible with federal and state law. To the extent that this chapter may be deemed to conflict with any provision of state law, the City Council has determined that the subject of the conflict is a municipal affair. 8.90.020 Definitions. For the purposes of this chapter, the following definitions apply: "Commercial cannabis activity,, means any cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, distribution, delivery, or sale of cannabis requiring a license from the State under Division 10 of the California Business and Professions Code, whether or not carried on for profit and including medical cannabis cooperatives and collectives, except as approved by the U.S. Drug Enforcement Administration or the U.S. Food and Drug Administration. "Cultivation,, means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. "Delivery,, means the transfer of cannabis, including the use of any technology platform to arrange for or facilitate the transfer of cannabis, by any business, cooperative, or collective, whether or not carried on for profit, to or from any location within the City of Carlsbad. "Cannabis,, means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin extracted from any part of the plant, whether crude or purified; every compound, manufacture, salt, derivative, mixture, concentrate, or preparation of the plant, its seeds, or resin; and edible or topical products containing any of the above. "Cannabis,, does not include industrial hemp, as defined in California Health and Safety Code section 11018.5. "Indoors,, means a code compliant space within a building, greenhouse, or other structure which is fully enclosed, with a complete roof enclosure supported by connecting walls September 26, 2017 Item #10 Page 5 of 7 extending from the ground to the roof, and is secured against unauthorized entry, and accessible only through one or more locking doors. "Private residence" means a house, an apartment unit, a mobile home, or other similar dwelling unit. 8.90.030 Prohibited Activities. A. Commercial cannabis activity is prohibited within the City of Carlsbad. No person shall engage in any commercial cannabis activity. No permit, license, or other authorization shall be issued for any commercial cannabis activity. This prohibition does not apply to the carriage of cannabis on public roads in the City of Carlsbad to the limited extent required by Sections 26080(b) and 26090(e) of the California Business and Professions Code. B. To the extent not already covered by subsection A, delivery of cannabis is prohibited. No person shall conduct delivery or participate in the delivery of cannabis. C. Cultivation of cannabis is prohibited, except indoors at a private residence as authorized by Section 11362.2(a) of the California Health and Safety Code. Cannabis grown indoors shall be completely screened from view from public places and neighboring properties. Nothing in this chapter is intended to, nor shall it be construed to, preclude any owner of real property from limiting or prohibiting cannabis cultivation by its tenants. D. No person shall smoke or ingest cannabis in any public place. 8.90.040 Public Nuisance. Any violation of this chapter is hereby declared a public nuisance and, as such, may be abated or enjoined from further operation within the City of Carlsbad. 8.90.050 Violations. A. Any person who violates this chapter shall be guilty of a misdemeanor except: where Division 10, Chapter 6, Article 2 of California Health and Safety Code limits punishment to an infraction; or where the limited exemptions from criminal prosecution under Sections 11362. 71 or 11362. 775 of the California Health and Safety Code, related to qualified patients and designated primary caregivers, apply. Under subsection 1.08.010(() of this code, each and every day during which a violation occurs shall be a separate offense. B. The city may impose administrative penalties under Chapter 1.10 of this code for violations of this chapter. 8.90.060 Severability. If any section, subsection, sentence, or clause of this chapter is held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this chapter. September 26, 2017 Item #10 Page 6 of 7 SECTION 3: That Carlsbad Municipal Code section 1.08.010 is amended to read as follows: 1.08.010 Designated. A.Whenever in Chapters 6.03, 8.16, 8.44, 8.48, 8.50, 8.90, 11.28 and 15.12, or as specified in Sections 1.13.040, 1.20.330(c), 1.20.330(d), 10.130, 6.04.130, 8.17.200(A)(1), 8.17.200(A)(2), 8.17.200(A)(3), 8.17.200(A)(4} and 17.04.070 of this code any act is prohibited or is made or declared to be unlawful or an offense, or the doing of any act is required or the failure to do any act is declared to be unlawful or a misdemeanor, the violation of any such provision is a misdemeanor and shall be punished by a fine not exceeding $1,000.00 or imprisonment for a term not exceeding six months, or by both such fine and imprisonment unless some other fine or penalty is stated in said chapter or section. EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption; and the City Clerk shall certify the adoption of this ordinance and cause the full text of the ordinance or a summary of the ordinance prepared by the City Attorney to be published at least once in a newspaper of general circulation in the City of Carlsbad within fifteen days after its adoption. INTRODUCED AND FIRST READ at a Regular Meeting of the Carlsbad City Council on the 12th day of September, 2017, and thereafter PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of September, 2017, by the following vote, to wit: AYES: NOES: M. Hall, K. Blackburn, M. Schumacher, M. Packard. C. Schumacher. ABSENT: None. APPROVED AS TO FORM AND LEGALITY: =----­CELIA A. BREWER, City Attorney (SEAL) September 26, 2017 Item #10 Page 7 of 7