City Council Report 915 I Street, 1 st Floor Sacramento, CA

Transcription

1 City Council Report 915 I Street, 1 st Floor Sacramento, CA File ID: October 24, 2017 Public Hearing Item 18 Title: Ordinance Amending, Deleting, and Adding Various Provisions of Title 17 of the Sacramento City Code (The Planning and Development Code) Relating to Cannabis Cultivation, Nonvolatile Manufacturing, Distribution, and Testing (M17-017) [Noticed 10/06/2017; Passed for Publication 10/17/2017; Published 10/20/2017] Location: Citywide Recommendation: Conduct a public hearing and upon conclusion pass an Ordinance amending the Planning and Development Code (Title 17) relating to cannabis cultivation, distribution, and testing. Contact: Joy Patterson, Principal Planner, , Community Development Department Presenter: Joy Patterson, Principal Planner, , Community Development Department Attachments: 1-Description/Analysis 2-Red-lined Ordinance Amending Title 17 3-Ordinance Amending Title 17 Matthew Ruyak, Interim City Attorney Mindy Cuppy, City Clerk John Colville, City Treasurer Howard Chan, City Manager Page 1 of 36

2 File ID: Public Hearing Item 18 Description/Analysis Issue Detail: Over the past two years the City Council has adopted a series of ordinances creating a set of regulations to allow cannabis cultivation, manufacturing and testing in the City of Sacramento. The State of California, with the adoption of the Medicinal Adult Use Cannabis Regulation and Safety Act (MAUCRSA) on June 27, 2017, provided clear direction to local governments in the area of cannabis regulations as the State prepares to start the licensing of cannabis businesses in On July 25, 2017, the Law and Legislation Committee directed staff to prepare draft ordinances to amend Titles 5 and 17 of the City Code to refine existing City regulations and implement provisions of MAUCRSA. Title 5 amendments have been submitted under a different agenda item. The proposed ordinance related to Title 17 modifies, deletes, and adds regulations for cannabis production and testing in the agricultural, commercial and industrial zones in the Planning and Development Code. Staff recommends that the City Council review the proposed amendments to Title 17 and adopt the attached ordinance. Policy Considerations: City Code governing cannabis businesses in Sacramento can be found in Title 17, as well as in Title 5 (Business Licenses and Regulations) that has been submitted under a different agenda item. The proposed ordinance is consistent with City policies related to the regulation of cannabis and address land use policy aspects as directed by the Law and Legislation Committee. Economic Impacts: Not applicable. Environmental Considerations: This action is not a project subject to the California Environmental Quality Act (CEQA) because it is the adoption of an ordinance by the City that requires discretionary review and approval of permits to engage in commercial cannabis activity (Cal. Bus & Prof. Code Section (h)); and it involves only general policy and procedure making and does not have the potential for resulting in either a direct physical change in the environment, or a reasonable foreseeable indirect physical change in the environment (CEQA Guidelines, sections 15002(d), 15378, (b)(3).) Sustainability: Not applicable. Commission/Committee Action: On July 27, 2017, the Law and Legislation Committee considered recommendations on a variety of cannabis related items found in Title 5 and Title 17 of the City Code. The committee directed staff to prepare an ordinance to make modifications to the cannabis distribution, manufacturing and testing regulations found in Title 17 and prepare an ordinance for the Planning and Design Commission for their review and recommendation to the City Council. City of Sacramento October 24, 2017 powered by Legistar Page 2 of 36

3 File ID: Public Hearing Item 18 The Planning and Design Commission heard the proposed ordinance on September 21, By a vote of six ayes, two noes, and five absent the commission voted to recommend that the City Council approve the proposed ordinance with the additional recommendation that applications be analyzed and staff reports be prepared such that uses that are not applied for are expressly excluded from approved conditional use permits and that staff reports be developed in such a manner that discrete uses are separate and distinct so that the hearing body has the ability to consider and adjudicate each use separately as part of the combined production application. Rationale for Recommendation: The proposed ordinance is consistent with existing City of Sacramento cannabis policy and updates the code to be consistent with Title 5 provisions. Financial Considerations: Not applicable. Local Business Enterprise (LBE): Not applicable. Background: The proposed ordinance consists of six changes: Cannabis is now the accepted term for the industry. The ordinance changes the word marijuana to cannabis throughout Title 17 for consistency with the City Code and State of California regulations. The Fire Department has determined, if properly regulated, ethanol can be a safe method of extraction in the manufacturing of cannabis products. The ordinance modifies the definition of volatile solvent to exempt ethanol from the definition of volatile solvent. The distribution of cannabis will require a state license. The ordinance requires a conditional use permit for cannabis distribution in the Heavy Commercial (C-4), Light and Heavy Industrial (M-1, M-1S, M-2, M-2S), Manufacturing, Research, Development (MRD),and Manufacturing, Industrial Park(MRD) zones with a conditional use permit. It also allows cannabis distribution in the General Commercial (C-2) zones with a conditional use permit, if it is not the only cannabis use of the site and if the site is limited to 6,400 square feet. Creates a new category of cannabis production, which includes cultivation, distribution, and non-volatile manufacturing. May eliminate the need for separate conditional use permits if an applicant proposes more than one type of marijuana business at a site. Exempts small manufacturers from the conditional use permit requirements. A small manufacturer is one that complies with the following; City of Sacramento October 24, 2017 powered by Legistar Page 3 of 36

4 File ID: Public Hearing Item 18 o The use is limited to only packing and labeling of cannabis or cannabis products, or producing edible or topical cannabis products using an infusion process; o Extraction processes are not to be conducted; or o The gross revenue of the use is under $100,000 annually. Allows cannabis testing by right if certain criteria are met. The use currently requires a conditional use permit. No changes to the permitted zones is proposed. A testing facility would be permitted by right if it complied with the following: o The cannabis testing site is not located within 600 feet of a school; o Cannabis testing must comply with applicable state and local laws; and o A cannabis testing site cannot exceed 6,400 square feet in area in the C-2 zone. Planning Division staff is part of a citywide team that is developing regulations for cannabis. The City s Cannabis Policy and Enforcement Division holds regular meetings with stakeholders in the City Council chambers and is holding a series of workshops in each of the council districts to inform residents on cannabis related policies and regulations. City of Sacramento October 24, 2017 powered by Legistar Page 4 of 36

5 ORDINANCE NO. Adopted by the Sacramento City Council Date Adopted AN ORDINANCE AMENDING, DELETING, AND ADDING VARIOUS PROVISIONS OF TITLE 17 OF THE SACRAMENTO CITY CODE (THE PLANNING AND DEVELOPMENT CODE) RELATING TO CANNABIS CULTIVATION, NONVOLATILE MANUFACTURING, DISTRIBUTION, AND TESTING. BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. The city council finds the following: 1. As amended by this ordinance, the Planning and Development Code complements, supports, and facilitates the implementation of the goals, policies, and other provisions of the general plan and the city s specific plans and transit village plans; and 2. The amendments in this ordinance promote the public health, safety, convenience, and welfare of the city. SECTION 2. A. Section ( C definitions) of the Sacramento City Code is amended as follows: 1. The definition of cannabis is added to read as follows: Cannabis has the same meaning as in California Business and Professions Code section The definition of cannabis cultivation is added to read as follows: Cannabis cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. 3. The definition of cannabis distribution is added to read as follows: 1 Page 5 of 36

6 Cannabis distribution means the procurement, sale, and transport of cannabis and cannabis products between cannabis businesses. 4. The definition of cannabis is added to read as follows. "Cannabis " means the production, preparation, propagation, and compounding of cannabis and cannabis products, either directly or indirectly by extraction or chemical synthesis methods that are conducted without the use of a volatile solvent. Nonvolatile cannabis manufacturing includes but is not limited to the extraction of resin from a cannabis plant with solvents, the infusion or mixture of cannabis into another substance, the preparation of an edible item that includes cannabis, and the packaging and labeling of cannabis or cannabis products. Nonvolatile cannabis manufacturing does not include cannabis cultivation. 5. The definition of cannabis product is added to read as follows: Cannabis product has the same meaning as in California Health and Safety Code section The definition of cannabis testing is added to read as follows: Cannabis testing means performing scientific analysis of cannabis or cannabis products to determine its chemical profile, the presence of contaminants, or other similar data. B. Except as specifically amended in section A above, all other provisions of section remain unchanged and in full effect. SECTION 3. A. Section ( M definitions) of the Sacramento City Code is amended as follows: 1. The definition of marijuana is amended to read as follows: Marijuana has the same meaning as cannabis. in section of the California Business and Professions Code, which includes marijuana as defined in California Health and Safety Code section The definition of marijuana cultivation is deleted. Marijuana cultivation means any activity involving the planting, growing, 2 Page 6 of 36

7 harvesting, drying, curing, grading, or trimming of marijuana. 3. The definition of marijuana is deleted. "Marijuana " means the production, preparation, propagation, and compounding of marijuana and marijuana products, without the use of a volatile solvent to extract the resin or other substance from any part of a marijuana plant. Nonvolatile marijuana manufacturing includes but is not limited to the extraction of a substance from a marijuana plant with solvents, the infusion or mixture of marijuana into another substance, the preparation of an edible item that includes marijuana, and the packaging and labeling of marijuana or marijuana products. Nonvolatile marijuana manufacturing does not include marijuana cultivation. 4. The definition of marijuana product is amended to read as follows: "Marijuana product" has the same meaning as cannabis product. means an item containing marijuana. Marijuana product includes but is not limited to concentrates, extractions, edibles, and topicals. Marijuana product does not include accessories or paraphernalia that may be used with marijuana but do not contain any marijuana. 5. The definition of marijuana testing is deleted. "Marijuana testing" means performing scientific analysis of marijuana or marijuana products to determine its chemical profile, the presence of contaminants, or other similar data. B. Except as specifically amended in section A above, all other provisions of section remain unchanged and in full effect. SECTION 4. A. The definition of volatile solvent in section ( V definitions) of the Sacramento City Code is amended to read as follows: "Volatile solvent" means volatile organic compound, including (1) explosive gases, such as butane, propane, xylene, styrene, gasoline, kerosene, 02 or H2; and (2) dangerous poisons, toxins, or carcinogens, such as methanol, isopropyl alcohol, methylene chloride, acetone, benzene, toluene, and tri-chloro-ethylene a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Volatile solvent does not include ethanol when used in a manner that will not create explosive or ignitable mixtures, as approved by the fire chief or designee. 3 Page 7 of 36

8 B. Except as specifically amended in section A above, all other provisions of section remain unchanged and in full effect. SECTION 5. A. Section (A zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection B.2 (Industrial and Agricultural Cannabis cultivation 2. The row for marijuana cultivation in the table set forth in subsection B.2 (Industrial Marijuana cultivation ZA B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 6. A. Section (C-2 zone Permitted Uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 4 Page 8 of 36

9 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial Marijuana cultivation ZA 6. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.3 (Industrial Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 7. A. Section (C-4 zone Permitted Uses) of the Sacramento City Code is 5 Page 9 of 36

10 amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial Marijuana cultivation ZA 6. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana Page 10 of 36

11 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 8. A. Section (M-1 zone Permitted Uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Uses) as follows: Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 7 Page 11 of 36

12 (Industrial Marijuana cultivation ZA 6. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.3 (Industrial Marijuana testing B. Except as specifically amended in subsections A and B above, the tables set forth in section remain unchanged and in full effect. SECTION 9. A. Section (M-1(S) zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Uses) of to read as follows: Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Uses) of to read as follows: 8 Page 12 of 36

13 Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Uses) of to read as follows: Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial Marijuana cultivation ZA 6. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.3 (Industrial Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 10. A. Section (M-2 zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural 9 Page 13 of 36

14 Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial Marijuana cultivation ZA 6. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.3 (Industrial 10 Page 14 of 36

15 Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 11. A. Section (M-2(S) zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial 11 Page 15 of 36

16 Marijuana cultivation ZA 6. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.3 (Industrial Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 12. A. Section (MIP zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.2 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.1 (Industrial and Agricultural Cannabis distribution 3. A row is added to the table set forth in subsection B.1 (Industrial and Agricultural 12 Page 16 of 36

17 Cannabis 4. The row for marijuana in the table set forth in subsection B.1 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.1 (Industrial Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 13. A. Section (MRD zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.2 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 23. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural 13 Page 17 of 36

18 Cannabis 4. The row for marijuana in the table set forth in subsection B.3 (Industrial Marijuana The row for marijuana testing in the table set forth in subsection B.3 (Industrial Marijuana testing B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 14. Section (marijuana cultivation) of the Sacramento City Code is deleted. SECTION 15. Section ( marijuana manufacturing) of the Sacramento City Code is deleted. SECTION 16. Section (marijuana testing) of the Sacramento City Code is deleted. SECTION 17. Article IX is added to chapter of the Sacramento City Code to read as follows: Article IX. Cannabis Cannabis production. A. For purposes of this section, cannabis production includes cannabis cultivation, cannabis distribution, and cannabis 14 Page 18 of 36

19 manufacturing. B. Cannabis production may only be established in the A, C-2, C-4, M- 1, M-1(S), M-2, M-2(S), MIP, and MRD zones, except as follows: MRD zones. in the A zone. 1. Cannabis cultivation may not be established in the MIP or 2. Cannabis distribution may not be established in the A zones. 3. Nonvolatile cannabis manufacturing may not be established C. A conditional use permit is required for cannabis production, except for cannabis manufacturing that complies with the following: 1. The use is limited to only packaging and labeling of cannabis or cannabis products, or producing edible or topical cannabis products using an infusion process; 2. Extraction processes are not being conducted; and 3. The gross revenue of the use is under $100,000 annually. D. Except as provided in subsection E, the conditional use permit, as required in subsection C, must be approved by the zoning administrator. E. A conditional use permit, as required in subsection C, must be approved by the planning and design commission where the production site is within 600 feet of: 1. A park identified as a neighborhood park or community park in the city s most recently adopted Parks and Recreation Master Plan; or 2. A park not yet identified in the city s most recently adopted Parks and Recreation Master Plan. F. The zoning decision-maker may approve a conditional use permit for cannabis distribution based on the following findings: 1. The findings set forth in section C; and 2. The proposed cannabis production will not result in undue concentration of cannabis production establishments. G. In any zone, cannabis production must comply with the following 15 Page 19 of 36

20 provisions: 1. Cannabis production must be within a fully enclosed building and must not be visible from the public right-of-way. 2. The cannabis production site cannot be located within 600 feet of a school. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. 3. The cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area. 4. Cannabis production must comply with all applicable state and local laws. 5. Each property owner seeking a conditional use permit for cannabis production shall provide a neighborhood responsibility plan in order for the decision-maker to make the requisite findings identified in subsection F. The neighborhood responsibility plan must address the adverse impacts of cannabis distribution on the surrounding area. Compliance with the neighborhood responsibility plan shall be achieved through an agreement with the city, conditions of approval on the use permit, or through other means acceptable to the city. H. In the C-2 zone, cannabis production must comply with the following provisions: 1. Cannabis distribution and cannabis manufacturing cannot exceed a total of 6,400 square feet in area. 2. Cannabis distribution cannot be the only cannabis production use on the site. I. Notice to city council. As soon as reasonably practicable after the planning and design commission makes a decision on a conditional use permit required to establish cannabis production, the planning director shall report that decision to the city council. J. Procedures for call-up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision described in subsection I by filing a written request with the planning 16 Page 20 of 36

21 director within 10 days of the planning and design commission s decision. If the tenth day is on a non-business day, the last day to file the request is the next business day. Once the request is filed, the council shall notice and set the matter for the hearing before it. Notice of the hearing shall be given in the manner provided in section A.2.a. The hearing before the city council shall be de novo, meaning that the city council shall hear the matter in the same manner that the planning and design commission heard the matter. K. Withdrawal of request for review. The requester under subsection J may withdraw that request. The withdrawal shall be noted on the next regularly scheduled meeting of the city council and shall be considered to have occurred on that date. Any other member of the city council shall have 10 days thereafter to file a request for call-up review. If the tenth day is a non-business day, the last day to file the request is the next business day. Noticing and hearing of the matter shall be as set forth in subsection J Cannabis testing. A. Cannabis testing may only be established in the C-2, C-4, M-1, M- 1(S), M-2, M-2(S), MIP, and MRD zones. B. In any zone, cannabis testing must comply with the following provisions: 1. The cannabis testing site cannot be located within 600 feet of a school. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. 2. The cannabis testing must comply with all applicable state and local laws. C. In the C-2 zone, a cannabis testing site cannot exceed 6,400 square feet in area. 17 Page 21 of 36

22 ORDINANCE NO. Adopted by the Sacramento City Council Date Adopted AN ORDINANCE AMENDING, DELETING, AND ADDING VARIOUS PROVISIONS OF TITLE 17 OF THE SACRAMENTO CITY CODE (THE PLANNING AND DEVELOPMENT CODE) RELATING TO CANNABIS CULTIVATION, NONVOLATILE MANUFACTURING, DISTRIBUTION, AND TESTING. BE IT ENACTED BY THE COUNCIL OF THE CITY OF SACRAMENTO: SECTION 1. The city council finds the following: 1. As amended by this ordinance, the Planning and Development Code complements, supports, and facilitates the implementation of the goals, policies, and other provisions of the general plan and the city s specific plans and transit village plans; and 2. The amendments in this ordinance promote the public health, safety, convenience, and welfare of the city. SECTION 2. A. Section ( C definitions) of the Sacramento City Code is amended as follows: 1. The definition of cannabis is added to read as follows: Cannabis has the same meaning as in California Business and Professions Code section The definition of cannabis cultivation is added to read as follows: Cannabis cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. 3. The definition of cannabis distribution is added to read as follows: 1 Page 22 of 36

23 Cannabis distribution means the procurement, sale, and transport of cannabis and cannabis products between cannabis businesses. 4. The definition of cannabis is added to read as follows. "Cannabis " means the production, preparation, propagation, and compounding of cannabis and cannabis products, either directly or indirectly by extraction or chemical synthesis methods that are conducted without the use of a volatile solvent. Nonvolatile cannabis manufacturing includes but is not limited to the extraction of resin from a cannabis plant with solvents, the infusion or mixture of cannabis into another substance, the preparation of an edible item that includes cannabis, and the packaging and labeling of cannabis or cannabis products. Nonvolatile cannabis manufacturing does not include cannabis cultivation. 5. The definition of cannabis product is added to read as follows: Cannabis product has the same meaning as in California Health and Safety Code section The definition of cannabis testing is added to read as follows: Cannabis testing means performing scientific analysis of cannabis or cannabis products to determine its chemical profile, the presence of contaminants, or other similar data. B. Except as specifically amended in section A above, all other provisions of section remain unchanged and in full effect. SECTION 3. A. Section ( M definitions) of the Sacramento City Code is amended as follows: 1. The definition of marijuana is amended to read as follows: Marijuana has the same meaning as cannabis. 2. The definition of marijuana cultivation is deleted. 2 Page 23 of 36

24 3. The definition of marijuana is deleted. 4. The definition of marijuana product is amended to read as follows: "Marijuana product" has the same meaning as cannabis product. 5. The definition of marijuana testing is deleted. B. Except as specifically amended in section A above, all other provisions of section remain unchanged and in full effect. SECTION 4. A. The definition of volatile solvent in section ( V definitions) of the Sacramento City Code is amended to read as follows: "Volatile solvent" means a solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Volatile solvent does not include ethanol when used in a manner that will not create explosive or ignitable mixtures, as approved by the fire chief or designee. B. Except as specifically amended in section A above, all other provisions of section remain unchanged and in full effect. SECTION 5. A. Section (A zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection B.2 (Industrial and Agricultural Cannabis cultivation 2. The row for marijuana cultivation in the table set forth in subsection B.2 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in 3 Page 24 of 36

25 section remain unchanged and in full effect. SECTION 6. A. Section (C-2 zone Permitted Uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial 6. The row for marijuana in the table set forth in subsection B.3 (Industrial 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial 4 Page 25 of 36

26 B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 7. A. Section (C-4 zone Permitted Uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial 6. The row for marijuana in the table set forth in 5 Page 26 of 36

27 subsection B.3 (Industrial 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 8. A. Section (M-1 zone Permitted Uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Uses) as follows: Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 6 Page 27 of 36

28 (Industrial 6. The row for marijuana in the table set forth in subsection B.3 (Industrial 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial B. Except as specifically amended in subsections A and B above, the tables set forth in section remain unchanged and in full effect. SECTION 9. A. Section (M-1(S) zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Uses) of to read as follows: Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Uses) of to read as follows: Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Uses) of to read as follows: 7 Page 28 of 36

29 Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial 6. The row for marijuana in the table set forth in subsection B.3 (Industrial 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 10. A. Section (M-2 zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural 8 Page 29 of 36

30 Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial 6. The row for marijuana in the table set forth in subsection B.3 (Industrial 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 11. A. Section (M-2(S) zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.3 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis cultivation 9 Page 30 of 36

31 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 4. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis 5. The row for marijuana cultivation in the table set forth in subsection B.3 (Industrial 6. The row for marijuana in the table set forth in subsection B.3 (Industrial 7. The row for marijuana testing in the table set forth in subsection B.3 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 12. A. Section (MIP zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.2 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.1 (Industrial and Agricultural 10 Page 31 of 36

32 Cannabis distribution 3. A row is added to the table set forth in subsection B.1 (Industrial and Agricultural Cannabis 4. The row for marijuana in the table set forth in subsection B.1 (Industrial 5. The row for marijuana testing in the table set forth in subsection B.1 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 13. A. Section (MRD zone Permitted uses) of the Sacramento City Code is amended as follows: 1. A row is added to the table set forth in subsection A.2 (Industrial and Agricultural Cannabis testing regulations in section A row is added to the table set forth in subsection B.3 (Industrial and Agricultural Cannabis distribution 3. A row is added to the table set forth in subsection B.3 (Industrial and Agricultural 11 Page 32 of 36

33 Cannabis 4. The row for marijuana in the table set forth in subsection B.3 (Industrial 5. The row for marijuana testing in the table set forth in subsection B.3 (Industrial B. Except as specifically amended in subsection A above, the tables set forth in section remain unchanged and in full effect. SECTION 14. Section (marijuana cultivation) of the Sacramento City Code is deleted. SECTION 15. Section ( marijuana manufacturing) of the Sacramento City Code is deleted. SECTION 16. Section (marijuana testing) of the Sacramento City Code is deleted. SECTION 17. Article IX is added to chapter of the Sacramento City Code to read as follows: Article IX. Cannabis Cannabis production. A. For purposes of this section, cannabis production includes cannabis cultivation, cannabis distribution, and cannabis manufacturing. B. Cannabis production may only be established in the A, C-2, C-4, M- 1, M-1(S), M-2, M-2(S), MIP, and MRD zones, except as follows: 1. Cannabis cultivation may not be established in the MIP or 12 Page 33 of 36

34 MRD zones. in the A zone. 2. Cannabis distribution may not be established in the A zones. 3. Nonvolatile cannabis manufacturing may not be established C. A conditional use permit is required for cannabis production, except for cannabis manufacturing that complies with the following: 1. The use is limited to only packaging and labeling of cannabis or cannabis products, or producing edible or topical cannabis products using an infusion process; 2. Extraction processes are not being conducted; and 3. The gross revenue of the use is under $100,000 annually. D. Except as provided in subsection E, the conditional use permit, as required in subsection C, must be approved by the zoning administrator. E. A conditional use permit, as required in subsection C, must be approved by the planning and design commission where the production site is within 600 feet of: 1. A park identified as a neighborhood park or community park in the city s most recently adopted Parks and Recreation Master Plan; or 2. A park not yet identified in the city s most recently adopted Parks and Recreation Master Plan. F. The zoning decision-maker may approve a conditional use permit for cannabis distribution based on the following findings: 1. The findings set forth in section C; and 2. The proposed cannabis production will not result in undue concentration of cannabis production establishments. G. In any zone, cannabis production must comply with the following provisions: 1. Cannabis production must be within a fully enclosed building and must not be visible from the public right-of-way. 2. The cannabis production site cannot be located within Page 34 of 36

35 feet of a school. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. 3. The cannabis production site cannot have more than one sign. The sign may be attached or detached. The sign cannot be illuminated and cannot exceed six square feet in area. 4. Cannabis production must comply with all applicable state and local laws. 5. Each property owner seeking a conditional use permit for cannabis production shall provide a neighborhood responsibility plan in order for the decision-maker to make the requisite findings identified in subsection F. The neighborhood responsibility plan must address the adverse impacts of cannabis distribution on the surrounding area. Compliance with the neighborhood responsibility plan shall be achieved through an agreement with the city, conditions of approval on the use permit, or through other means acceptable to the city. H. In the C-2 zone, cannabis production must comply with the following provisions: 1. Cannabis distribution and cannabis manufacturing cannot exceed a total of 6,400 square feet in area. 2. Cannabis distribution cannot be the only cannabis production use on the site. I. Notice to city council. As soon as reasonably practicable after the planning and design commission makes a decision on a conditional use permit required to establish cannabis production, the planning director shall report that decision to the city council. J. Procedures for call-up review. The mayor or the councilmember in whose district the project is located may call up for city council review any decision described in subsection I by filing a written request with the planning director within 10 days of the planning and design commission s decision. If the tenth day is on a non-business day, the last day to file the request is the next business day. Once the request is filed, the council shall notice and set the matter for the hearing before it. Notice of the hearing shall be given in the manner provided in section A.2.a. The hearing before the city council shall be de novo, meaning that the city council shall hear the matter in the same manner 14 Page 35 of 36

36 that the planning and design commission heard the matter. K. Withdrawal of request for review. The requester under subsection J may withdraw that request. The withdrawal shall be noted on the next regularly scheduled meeting of the city council and shall be considered to have occurred on that date. Any other member of the city council shall have 10 days thereafter to file a request for call-up review. If the tenth day is a non-business day, the last day to file the request is the next business day. Noticing and hearing of the matter shall be as set forth in subsection J Cannabis testing. A. Cannabis testing may only be established in the C-2, C-4, M-1, M- 1(S), M-2, M-2(S), MIP, and MRD zones. B. In any zone, cannabis testing must comply with the following provisions: 1. The cannabis testing site cannot be located within 600 feet of a school. For purposes of this section, school means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. 2. The cannabis testing must comply with all applicable state and local laws. C. In the C-2 zone, a cannabis testing site cannot exceed 6,400 square feet in area. 15 Page 36 of 36