ORDINANCE RECITALS

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1 ORDINANCE AN ORDINANCE OF THE CITY OF CITRUS HEIGHTS AMENDING CHAPTER 47, CHAPTER 50, CHAPTER AND CHAPTER OF THE CITRUS HEIGHTS MUNICIPAL CODE TO PROHIBIT MEDICAL MARIJUANA DELIVERIES AND MEDICAL MARIJUANA BUSINESSES AND TO AMEND MEDICAL MARIJUANA CULTIVATION REGULATIONS RECITALS WHEREAS, Health and Safety Code section , the Compassionate Use Act of 1996 ( CUA ), adopted by the voters in the State of California, authorizes a limited defense to criminal charges for the use, possession or cultivation of marijuana for medical purposes when a qualified patient has a doctor's recommendation for the use of marijuana; and WHEREAS, Health and Safety Code section et seq., the Medical Marijuana Program Act ( MMPA ), was adopted by the state legislature and offers some clarification on the scope of the Compassionate Use Act of 1996, and section specifically authorizes cities and other governing bodies to adopt and enforce rules and regulations related to medical marijuana; and WHEREAS, Business and Professions Code section et seq., the Medical Marijuana Regulation and Safety Act ( MMRSA ), was adopted by the Legislature in 2015 and regulates the commercial activity of medical marijuana and assigns certain state agencies with regulatory tasks regarding commercial medical marijuana, including product labeling and environmental regulation; and WHEREAS, neither the CUA, MMPA or MMRSA prevent a city from using its constitutional authority to enact nuisance and land use regulations regarding medical marijuana cultivation, dispensaries or commercial businesses, including the ability to enact a prohibition on such activities; and WHEREAS, the MMRSA, among other matters, authorizes certain state agencies to issue licenses for commercial medical marijuana businesses; and WHEREAS, Business and Professions Code section requires commercial medical marijuana businesses to obtain a state license and any necessary permit, license or authorization from the local jurisdiction in which the business operates; and WHEREAS, Business and Professions Code section specifically recognizes that a city may regulate commercial medical marijuana businesses pursuant to the police power granted to cities in Section 7 of Article XI of the California Constitution; and WHEREAS, the MMRSA, among other matters, enacts Business and Professions Code section 19340, which authorizes licensed medical marijuana dispensaries to make medical marijuana deliveries in any jurisdiction that does not explicitly prohibit such deliveries; and WHEREAS, a city may regulate or ban medical marijuana deliveries and commercial medical marijuana businesses pursuant to its police power derived from Article XI, Section 7 of the California

2 Constitution, which provides a city may make and enforce within its limits all local police, sanitary, and other ordinances and regulations not in conflict with general laws; and WHEREAS, Chapter 47 and Chapter of the Citrus Heights Municipal Code currently prohibit medical marijuana dispensaries from operating anywhere in the City, and the Citrus Heights Municipal Code also currently strictly regulates the cultivation of medical marijuana within the City; and WHEREAS, the cultivation of medical marijuana in other cities has resulted in calls for service to the police department, including calls for robberies and thefts, and it is reasonable to assume that commercial medical marijuana businesses and medical marijuana deliveries will have similar impacts; and WHEREAS, there is a threat to the public health, safety and welfare of the community if medical marijuana businesses operate in the City or if medical marijuana deliveries are made in the City, and such activities may result in harmful effects to the businesses, property owners and residents of the City; and WHEREAS, Table 2-2 of Section and Table 2-5 of Section of the Citrus Heights Municipal Code currently establish the zones in which medical marijuana cultivation is allowed within the City and incorporate specific use regulations contained in Section of the Citrus Heights Municipal Code; and WHEREAS, Section of the Citrus Heights Municipal Code currently regulates the cultivation of medical marijuana inside residences and accessory structures, and prohibits all other forms of cultivation; and WHEREAS, Section currently sets limits on the square footage that may be used for medical marijuana cultivation, and the City Council desires to amend the current use regulations to create a limit on the cubic footage that may be used for medical marijuana cultivation; and WHEREAS, the City Council desires to add definitions to Chapter 106, Zoning, and Chapter 50, Nuisances, of the Citrus Heights Municipal Code to specifically define medical marijuana; and WHEREAS, the City Council desires to prohibit all commercial medical marijuana businesses from operating in the City of Citrus Heights; and WHEREAS, the City Council desires to prohibit the delivery of medical marijuana in the City of Citrus Heights; and WHEREAS, the Planning Commission held a duly noticed public hearing on the proposed amendments on August 24, 2016, at which time all interested parties had the opportunity to be heard. Following the public hearing, the Planning Commission recommended that the City Council adopt the amendments; and

3 WHEREAS, the City Council held a duly noticed public hearing on the proposed amendments on September 8, 2016 at which time all interested parties had the opportunity to be heard. NOW THEREFORE, the City of Citrus Heights does ordain as follows: Section 1. Recitals Made Findings The above recitals are hereby declared to be true and correct and findings of the City Council of the City of Citrus Heights. Section 2. Amendment to Municipal Code Chapter 47, Medical Marijuana Dispensaries is hereby amended to read as follows (with text in strikeout format indicating deletion and underlined text indicating addition): Chapter 47 - MEDICAL MARIJUANA DISPENSARIES, BUSINESSES & DELIVERIES ARTICLE I MEDICAL MARIJUANA Sec Findings and purpose. (a) (b) (c) In enacting this article chapter, it is the intent of the city council of the City of Citrus Heights to protect the safety and welfare of the general public. The Federal Controlled Substances Act, 21 U.S.C. section 841, prohibits the possession, sale and distribution of marijuana, and the city council finds that sanctioning the opening or establishment of medical marijuana dispensaries or commercial medical marijuana businesses or allowing the delivery of medical marijuana within the City would be inconsistent with federal law. Furthermore, the city council finds that medical marijuana dispensaries are public nuisances in that many violent crimes have been committed that can be traced back to the proliferation of marijuana dispensaries, including armed robberies and murders. Increased noise and pedestrian traffic, including nonresidents in pursuit of marijuana, and out of area criminals in search of prey, are commonly encountered near outside marijuana collectives, cooperatives and dispensaries. The city council further finds that it is reasonable to conclude that medical marijuana deliveries and commercial medical marijuana businesses are likely to cause many of these same adverse impacts. Allowing medical marijuana collectives, cooperatives and dispensaries, or allowing commercial medical marijuana businesses or medical marijuana deliveries, would be inconsistent with the city's mission to be the city of choice for residents and businesses to prosper and thrive and be a model of "neighborhood engagement" because medical marijuana dispensaries attract crime and detract from legitimate businesses. Therefore, in order to protect the integrity of the city and the goals upon which this city were founded, the city council finds that it is in the best interest of the residents of the city to prohibit marijuana dispensaries, commercial medical marijuana businesses and medical marijuana deliveries.

4 (d) The purpose of this article chapter is to prohibit medical marijuana dispensaries and commercial medical marijuana businesses from being opened or established in the city, and to prohibit medical marijuana deliveries from occurring in the city. Nothing in this article chapter shall be deemed to permit or authorize any use or activity which is otherwise prohibited by any state or federal law. Sec Definitions. For the purpose of this article chapter, unless the context clearly requires a different meaning, the words, terms and phrases hereinafter shall have the meaning given them in this section. City means the City of Citrus Heights. Commercial medical marijuana business means any activity licensed pursuant to the Medical Cannabis Regulation and Safety Act, Business and Professions Code section et seq., including but not limited to medical marijuana cultivation, distribution, manufacturing, transporting and testing. Medical marijuana means marijuana used for medical purposes in accordance with the Compassionate Use Act (Health and Safety Code ) and the Medical Marijuana Program Act (Health and Safety Code et seq.). Medical marijuana delivery means the transfer of medical marijuana or medical marijuana products from a medical marijuana dispensary to a qualified patient or primary caregiver, as well as the use by a dispensary of any technology platform to arrange for or facilitate the transfer of medical marijuana or medical marijuana products. Medical marijuana dispensary or dispensary means: (1) Any facility, building, structure or location, whether fixed or mobile, where a primary caregiver makes available, sells, transmits, gives or otherwise provides medical marijuana to two or more of the following: a qualified patient or a person with an identification card, or a primary caregiver, in strict accordance with Health and Safety Code section et seq.; or (2) Any facility, building, structure or location where qualified patients and/or persons with identification cards and/or primary caregivers meet or congregate in order to collectively or cooperatively, distribute, sell, dispense, transmit, process, deliver, exchange or give away marijuana for medicinal purposes pursuant in Health and Safety Code section et seq., and such group is organized as a medical marijuana cooperative or collective as set forth in the attorney general guidelines. The terms "primary caregiver," "qualified patient," and "person with an identification card" shall be as defined in Health and Safety Code section et seq. For purposes of this article chapter, a "medical marijuana dispensary" shall not include the following uses, as long as the location of such uses are otherwise regulated by applicable law and complies strictly with applicable law, including but not limited to, Health and Safety Code section et seq.: (1) A clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code;

5 (2) A health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code; (3) A residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code; (4) A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code; (5) A residential hospice, or a home health agency licensed pursuant to Chapter 8 of the Health and Safety Code. Medical marijuana products means medical marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or tropical product containing marijuana or concentrated cannabis and other ingredients. Person means any individual, partnership, co-partnership, firm, association, joint stock company, corporation, limited liability corporation, collective, cooperative, or combination thereof in whatever form or character. Sec Medical marijuana dispensaries prohibited. Medical marijuana dispensaries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, the operation of a medical marijuana dispensary. Sec Medical marijuana deliveries prohibited. Medical marijuana deliveries are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, medical marijuana deliveries. This section shall not be interpreted to prohibit the transportation of medical marijuana through the city on public roads, as long as such transportation does not involve the delivery of medical marijuana within the city. Sec Commercial medical marijuana businesses prohibited. Commercial medical marijuana businesses are prohibited in the city. It shall be unlawful for any person to engage in, conduct, carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, a commercial medical marijuana business. Sec Penalty. (a) Violation of this article chapter is a public nuisance and shall be a misdemeanor.

6 (b) Nothing in this article chapter in any way limits any other remedy that may be available to the city, or any penalty that may be imposed by the city, for violations of this article chapter. Such additional remedies, include, but are not limited to, injunctive relief, administrative citations, or a cause of action under the California Narcotics Nuisance Abatement Act (Health and Safety Code 11570). Section 3. Amendment to Municipal Code The following definition is hereby added to Section Definitions of the Citrus Heights Municipal Code to read as follows: Medical Marijuana means marijuana used for medical purposes pursuant to the Compassionate Use Act (California Health and Safety Code section ) and the Medical Marijuana Program Act (California Health and Safety Code section et seq.) Section 4. Amendment to Municipal Code Subsection (j) and Subsection (k) of Section of the Citrus Heights Municipal Code are amended to read as follows (with text in strikeout format indicating deletion and underlined text indicating addition): j. Medical marijuana cultivation occurring inside a residential structure shall be in an area no larger than 50 square feet, and shall not exceed a volume of greater than 300 cubic feet, regardless of how many qualified patients or primary caregivers reside at the premises. k. Medical marijuana cultivation occurring inside a fully enclosed and secure structure shall not exceed 100 square feet, and shall not exceed a volume of greater than 600 cubic feet, regardless of how many qualified patients or primary caregivers reside at the premises. Section 5. Amendment to Zoning Code The definition of Medical Marijuana Cultivation contained in Section of the Citrus Heights Municipal Code is amended to read as follows: Medical Marijuana Cultivation. The planting, growing, harvesting, drying or processing of marijuana plants or any part thereof for medical purposes pursuant to the Compassionate Use Act (California Health and Safety Code section ) and the Medical Marijuana Program Act (California Health and Safety Code section et seq.) Section 6. Amendment to Zoning Code The following definitions are hereby added to Section of the Citrus Heights Municipal Code to read as follows:

7 Commercial medical marijuana business means any activity licensed pursuant to the Medical Cannabis Regulation and Safety Act, Business and Professions Code section et seq., including but not limited to medical marijuana cultivation, distribution, manufacturing, transporting and testing. Medical marijuana delivery means the transfer of medical marijuana or medical marijuana products from a medical marijuana dispensary to a qualified patient or primary caregiver, as well as the use by a dispensary of any technology platform to arrange for or facilitate the transfer of medical marijuana or medical marijuana products. Medical marijuana products means medical marijuana that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or tropical product containing marijuana or concentrated cannabis and other ingredients. Section 7. Amendment to Zoning Code Section of the Citrus Heights Municipal Code is amended to read as follows (with text in strikeout format indicating deletion and underlined text indicating addition): Sec Medical Marijuana Dispensaries, Deliveries & Businesses A. Purpose and Intent. This section identifies that medical marijuana dispensaries, deliveries and businesses, are not permitted uses in any zone of the City, and therefore, such use will not appear as an allowed use anywhere in the City. B. Medical Marijuana Dispensary as a Prohibited Use. A medical marijuana dispensary, as defined in Section is prohibited in all zones of the City. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a medical marijuana dispensary. C. Medical Marijuana Deliveries as a Prohibited Use. Medical marijuana deliveries, as defined in Section are prohibited in all zones of the City. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of medical marijuana deliveries. D. Commercial Medical Marijuana Businesses as a Prohibited Use. A commercial medical marijuana business, as defined in Section is prohibited in all zones of the City. No permit or any other applicable license or entitlement for use, nor any business license, shall be approved or issued for the establishment, maintenance or operation of a commercial medical marijuana business. Section 8. Severability If any section of this Ordinance is determined to be unenforceable, invalid, or unlawful, such determination shall not affect the enforceability of the remaining provisions of this Ordinance.

8 Section 9. CEQA. This Ordinance is exempt from the California Environmental Quality Act (CEQA) per CEQA Guidelines section 15061(b)(3). Section 15061(b)(3) states that CEQA applies only to those projects that have the potential to cause a significant effect on the environment. The adoption of the proposed Ordinance is exempt from CEQA because the adoption of the proposed amendments to the Municipal Code does not, in itself, allow the construction of any building or structure. This Ordinance, therefore, has no potential for resulting in significant physical change in the environment, directly or ultimately. Section 10. Effective Date and Publication This Ordinance shall take effect thirty (30) days after its adoption, and within fifteen (15) days after its passage, shall be posted in three public places. PASSED AND ADOPTED by the City Council of the City of Citrus Heights this day of, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Jeannie Bruins, Mayor ATTEST: Amy Van, City Clerk

ORDINANCE NO

ORDINANCE NO. 2015 1415 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, AMENDING CHAPTER 5.54 OF THE SAN MARCOS MUNICIPAL CODE TO PROHIBIT THE CULTIVATION OF MARIJUANA, THE DELIVERY