MOTION: Approve the minutes from previous meetings E1-E-4. Moved by Vice Chair Newman, second by Commissioner Keldorf.

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MINUTES OF THE EL SEGUNDO PLANNING COMMISSION Regularly Scheduled Meeting September 13, 2018 A. Call to Order The meeting was called to order at 5:30 p.m. B. Roll Call Present: Absent: Chair Baldino Vice Chair Newman Commissioner Keldorf Commissioner Hoeschler Commissioner Wingate C. Pledge of Allegiance Commissioner Keldorf led the pledge D. Public Communications None E. Consent Calendar 1. Consideration and possible other action regarding approval of the August 23, 2018 Planning Commission Meeting Minutes. 2. Consideration and possible other action regarding approval of the August 09, 2018 Planning Commission Meeting Minutes. 3. Consideration and possible other action regarding approval of the July 12, 2017 Special Planning Commission Meeting Minutes. 4. Consideration and possible other action regarding approval of the June 14, 2017 Planning Commission Meeting Minutes. MOTION: Approve the minutes from previous meetings E1-E-4. Moved by Vice Chair Newman, second by Commissioner Keldorf. Motion carried by the following vote (4-0): Ayes Baldino, Newman, and Keldorf, Absent Hoeschler and Wingate 5

F. Call Items from Consent Calendar None. G. Written Communications None. H. New Business Public Hearing None I. Continued Business 5. New Structure within the Downtown Specific Plan. The applicant requests the approval of a Downtown Design Review to allow the construction of a new two-story garage and storage structure in the middle of the lot.(rt) Applicant: Joseph Baker Address: 146 Richmond Street Contract Planning Technician Russell Toler gave a brief staff report describing the project and requested approvals. Chair Baldino inquired where is it stated in the Resolution the statement regarding brick veneers. Mr. Toler stated that it is located on Stamp Page No. 29 under Conditions No. 2. Chair Baldino Opened Public Communication Applicant Joseph Baker gave a brief discussion on the project and was available to answer any questions. Commissioner Keldorf asked staff if the issue of brick veneers covering all of the cement stucco. Planning Manager Gregg McClain stated that it not specified. Vice Chair Newman stated that she is in favor of the brick veneer. Mr. Baldino stated that he is going to defer to the applicant discretions. Ms. Newman inquired on the length construction of the project and what will be the actual square footage to be added. Mr. Baker stated that the length of construction to completions will be about a year. He stated that he is adding 2000 square foot. Close Public Communication MOTION: Adopt Resolution No. 2848, Approving a Downtown Design Review to allow the construction of a new two-story garage and storage structure in the middle of the lot. Striking any references to brick veneer in Condition No. 2. of the resolution. 6

Moved by Chair Baldino, second by Vice Chair Newman. Motion carried by the following vote (3-0): Ayes Baldino, Newman, Keldorf Absent Hoeschler and Wingate J. Report from Planning and Building Safety Director or designee None. K. Upcoming Agenda Items and Schedule None. L. Planning Commissioners Comments The Commissioner s thanked EDAC for Champions of Business Celebrations event that was held on September 12, 2018 at the Lakers facility. Congrats to Jeanie Buss on receiving an awarded in our business communities in El Segundo. M. Adjournment Chair Baldino adjourned the meeting at 5:47 p.m. PASSED AND APPROVED ON THIS 13TH DAY OF SEPTEMBER 2018. Sam Lee, Secretary of the Planning Commission Director, Planning and Building Safety Ryan Baldino, Chairman Planning Commission City of El Segundo, CA 7

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On November 15, 2016, the City Council adopted urgency Ordinance 1542 1 amending ESMC Title 4 (Business Regulations and Licensing) to prohibit issuance of a license for any commercial marijuana activity (medicinal or recreational) in the City. This ordinance was adopted in response to the passage of Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act ( AUMA ) and SB 94, the Medicinal and Adult Use Cannabis Regulation and Safety Act ( MAUCRSA ). These two laws decriminalized the adult use of recreational marijuana and created a combined regulatory and licensing program for medicinal and commercial marijuana activities. Exhibit No. contains a list of marijuana-related business types that may apply for a State license. On November 15, 2016, the City Council also adopted a moratorium temporarily prohibiting the issuance of any permit for marijuana-related land uses in the City. The moratorium was extended twice by Ordinance Nos. 1545 and 1561 and is due to expire on November 14, 2018. Discussion In this section, staff is providing an update on the status of regulations at the regional, State, and Federal levels. At the regional level, staff surveyed the regulations of 14 cities in the area, including nine South Bay cities and five other cities in Los Angeles County. 2 Ten of the 14 cities surveyed banned all commercial marijuana related uses. Santa Monica has permitted medicinal retail and light manufacturing activities, but prohibited all commercial non-medicinal uses. Long Beach, Culver City and Los Angeles permit most or all commercial marijuana uses with restrictions on the hours of operation, locations, and the number of permits. In the City of Los Angeles a total of 164 retail dispensaries have been permitted to-date. The nearest three dispensaries to El Segundo are in the Playa Del Rey and Westchester neighborhoods. 3 Los Angeles County, which has jurisdiction over unincorporated areas directly east of El Segundo and elsewhere in the County, bans all commercial marijuana-related uses. At the State level, after the passage Proposition 64 and Senate Bill SB 94, the newly formed Bureau of Cannabis Control ( BCC ) began issuing licenses to commercial marijuana businesses in January 2018. BCC issues licenses to Retailers, Distributors, Microbusinesses, Testing Laboratories, and Cannabis Event Organizers (See Exhibit No. 3), but it may only issue licenses in jurisdictions where local ordinances permit and regulate such businesses. To-date BCC has issued more than 5,000 licenses statewide. 4 On February 16, 2018, State Senator Lara introduced Senate Bill 1302 amending Section 26200 of the Business and Professions Code to prohibit a local government from adopting or enforcing 1 On December 6, 2016, the City Council also adopted regular Ordinance No. 1544 with the same prohibitions as Ordinance No. 1543. 2 The 14 cities are: Hermosa Beach, Manhattan Beach, Redondo Beach, Hawthorne Lawndale, Gardena, Torrance, Lomita, Rancho Palos Verdes, Los Angeles, Culver City, Long Beach, Santa Monica, and Pasadena. 3 City of Los Angeles Department of Cannabis Regulation website: http://cannabis.lacity.org/legal-businesses 4 In addition to the BCC, the California Department of Public Health issues licenses for cannabis manufacturers and the California Department of Food & Agriculture issues licenses for cultivators. 2 9

any ordinance that would prohibit a licensee from delivering cannabis within or outside of the jurisdictional boundaries of the local jurisdiction. This means that even if El Segundo prohibits all marijuana-related uses within its jurisdiction, someone licensed to operate a dispensary in another jurisdiction would be allowed to deliver marijuana to a customer in El Segundo. On May 31, 2018, the bill s author requested that the bill be placed on inactive status (on hold) and there has not been any action on it since May. On March 31, 2018, the Governor signed into law Assembly Bill AB 106, which authorized BCC, the California Department of Public Health, and the Department of Food and Agriculture to conduct criminal background checks of applicants for State licenses and requires the California Department of Justice (DOJ) to forward requests for federal criminal records to the U.S. Federal Bureau of Investigation (FBI). In addition, the bill appropriated $10.7 million for the purpose of tracking cannabis and cannabis-related products. The intent of the law is to boost enforcement and to inhibit activities that remain illegal according to State Law. Nationally, nine states 5 and the District of Columbia have legalized recreational marijuana use and eight of those States also legalized its commercial sale. Another 20 states legalized marijuana for medical purposes. At the Federal level, the law is unchanged and the Federal Controlled Substances Act ( CSA ) classifies as a schedule 1 substance with no legal medical use and high potential for abuse. However, an important change has occurred with regard to enforcement of Federal Law with the incoming Trump administration in January 2018. Under previous administrations going back to 2009, the Justice Department gave guidance to U.S. Attorneys to prosecute marijuana-related crimes only in specific limited circumstances. As a result, in those nine States where commercial marijuana activity has been de-criminalized, businesses and individuals engaging in such activity had a degree of certainty that they would not be prosecuted under Federal Law. However, on January 4, 2018, the Justice Department issued a memo rescinding previous guidance pertaining to marijuana enforcement. As a result, local U.S. Attorneys have more discretion to prosecute violations of Federal Law related to marijuana. Generally, the January memo has increased uncertainty for investors, the cannabis industry, the banking industry, states and local governments. At this time, it is unclear whether U.S. Attorney s offices in California will increase prosecution of commercial marijuana uses considered legal under California Law. Conclusion Based on the regulations in the surrounding cities and unincorporated areas, none of the adjacent cities permit commercial marijuana activity. The City of Los Angeles is the exception, but the Los Angeles International Airport (LAX) serves as a buffer between El Segundo and the dispensaries located in the Westchester area. As a result, the City is relatively insulated from legal marijuanarelated commercial activity and a prohibition on all commercial marijuana uses continues to be effective. 5 Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont, and Washington. https://en.wikipedia.org/wiki/cannabis_in_the_united_states#state_and_territory_laws 3 10

At the State level, it appears that the legislature is making efforts to prevent illicit drug activity to take place under the guise of licensed businesses, which may prevent some of the potential sideeffects of marijuana legalization. The status of SB 1302 regarding the delivery of marijuana will be important to follow, because it may have a significant impact on the City s approach to this issue. At the Federal level, it will be important to follow the Justice Department s actions to enforcement of marijuana laws and any legislation from Congress on medical and/or recreational marijuana. In conclusion, staff believes that the current prohibition on commercial marijuana uses is sustainable and should be maintained. However, as developments occur at various government levels, the City can change its position through future ordinances. In light of the pending expiration of the temporary moratorium on issuance of permits for marijuana-related activity, staff proposes certain amendments to ESMC Chapter 15-13B to further clarify the City s intent to prohibit all commercial marijuana-related land uses. As mentioned above, ESMC Title 4 (Business Regulations and Licensing) prohibits the issuance of a license for any commercial marijuana-related activity. However, ESMC Chapter 15-13B (Medical Cannabis Cultivation and Distribution), which is in Title 15 (Zoning Code) was adopted before the State legalized recreational/adult use marijuana and related commercial activities. The revised chapter will clarify that the prohibition applies to all types of marijuana-related land uses, whether medicinal or recreational, consistent with the City s long-standing intent and purpose. The revised chapter will also set reasonable restrictions on cultivation of cannabis for personal use, consistent with State Law. General Plan and Zoning Consistency Consistency with the El Segundo General Plan ESMC Section 15-1-1 (Purpose, Title) states that Title 15 is the primary tool for implementation of the goals, objectives, and policies of the El Segundo General Plan. Accordingly, the Planning Commission must find that the proposed Zone Text Amendment is consistent with those goals, objectives, and policies. Planning staff believes there is substantial evidence in the record to support the findings required for the Planning Commission to recommend City Council approval of the proposed amendment. The findings are discussed in the proposed resolution. Consistency with the El Segundo Municipal Code. Pursuant to ESMC Title 15, Chapter 26 (Amendments), in order to recommend City Council approval of the proposed amendments, the Planning Commission must find that the amendments are necessary to carry out the general purpose of ESMC Title 15. The purpose of this Title (ESMC 15-1-1) is to serve the public health, safety, and general welfare and to provide economic and social advantages resulting from an orderly planned use of land resources. Planning staff believes there is substantial evidence in the record to support the findings required for the Planning Commission to recommend City Council approval of the proposed amendment. The findings are discussed in the proposed resolution. 4 11

Environmental Review This ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to 14 Cal. Code Regs. 15061(b)(3),because it does not have the potential to cause significant effects on the environment. The ordinance amends the El Segundo Municipal Code to clarify the existing prohibitions on cannabis-related land uses and activities. The ordinance does not portend any development or changes to the physical environment. Following an evaluation of possible adverse impacts, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. In addition to the foregoing general exemption, the following categorical exemption applies: 14 Cal. Code Regs. 15308 (actions taken for the protection of the environment). Recommendation For the foregoing reasons, Staff recommend that the Planning Commission adopt Resolution No. 2851 recommending that the City Council approve Environmental Assessment (EA) No. EA-1199 and Zone Text Amendment (ZTA) No. 17-07. 5 12

RESOLUTION NO. 2851 A RESOLUTION RECOMMENDING THAT THE CITY COUNCIL APPROVE ENVIRONMENTAL ASSESSMENT NO. EA-1199 AND ZONE TEXT AMENDMENT NO. ZTA 17-07 TO AMEND THE MUNICIPAL CODE TO PROHIBIT CANNABIS-RELATED LAND USES AND ACTIVITIES IN ALL ZONES AND SPECIFIC PLAN AREAS THROUGHOUT THE CITY TO THE MAXIMUM EXTENT ALLOWED BY STATE LAW The Planning Commission of the City of El Segundo does resolve as follows: SECTION 1: The Planning Commission finds and declares that: A. On November 5, 1996, the voters of the State of California approved Proposition 215, codified as Health and Safety Code Section 11362.5 et seq., and entitled the Compassionate Use Act of 1996 ( CUA ). The CUA exempted qualified patients and their primary caregivers from criminal liability under state law for the possession and cultivation of marijuana for personal medical use. B. The intent of the CUA was to enable persons in the State of California who are in need of marijuana for medicinal purposes to obtain it and use it under limited, specified circumstances. C. The State enacted Senate Bill 420 in October 2003, codified at Health and Safety Section 11362.7, et seq., ( Medical Marijuana Program Act, or MMPA ) to clarify the scope of the Compassionate Use Act of 1996 and to allow cities and other governing bodies to adopt and enforce rules and regulations consistent with SB 420. The MMPA created a state-approved voluntary medical marijuana identification card program and provided for certain additional immunities from state marijuana laws. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the Medical Marijuana Program to expressly recognize the authority of counties and cities to [a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective and to civilly and criminally enforce such ordinances. D. The CUA and MMPA did not legalize marijuana, but provided limited defenses to certain categories of individuals with respect to certain conduct and certain state criminal offenses. E. In City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal.4th 729, the California Supreme Court held that [n]othing in the CUA or the MMP expressly or impliedly limits the inherent authority of a local jurisdiction, by its own ordinances, to regulate the use of its land.... Additionally, in Maral v. City of Live Oak (2013) 221 Cal.App.4th 975, the Court of Appeal held that there is no right and certainly no constitutional right to cultivate medical marijuana..... The Court in Maral affirmed the ability of a local governmental entity to prohibit the 13

cultivation of marijuana under its land use authority. F. The Federal Controlled Substances Act, 21 U.S.C. 801 et seq., classifies marijuana as a Schedule 1 Drug, which is defined as a drug or other substance that has a high potential for abuse, that has no currently accepted medical use in treatment in the United State, and that has not been accepted as safe for use under medical supervision. The Federal Controlled Substances Act makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute or dispense, marijuana. The Federal Controlled Substances Act contains no exemption for medical purposes. G. On October 9, 2015 Governor Brown signed three bills into law (AB 266, AB 243, and SB 643) which collectively are known as the Medical Marijuana Regulation and Safety Act ( MMRSA ). MMRSA established a State licensing scheme for commercial medical marijuana uses while protecting local control by requiring that all such businesses must have a local license or permit to operate in addition to a State license. MMRSA allowed a City to completely prohibit commercial medical marijuana activities. H. On March 1, 2016, the City Council adopted Ordinance No. 1518, adding Chapter 11 to Title 7 and Chapter 13B to Title 15 of the El Segundo Municipal Code to clarify that commercial cannabis activities, cultivation of medical cannabis, delivery of medical cannabis, medical marijuana dispensaries, and medical marijuana collectives are prohibited in all zones and specific plan areas of the city. I. On November 8, 2016, the voters of the State of California passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act ( AUMA ). The AUMA decriminalizes (under California law), controls and regulates the cultivation, processing, manufacture, distribution, testing and sale of nonmedical marijuana, including marijuana products, for use by adults 21 years of age or older. The AUMA also taxes the commercial growth and retail sale of marijuana. It does not, and cannot, affect federal regulations regarding marijuana or its derivatives. J. On November 15, 2016, the City Council adopted Ordinance No.1543, a forty-five-day interim zoning ordinance prohibiting the issuance of any permit for marijuana-related land uses in any zone throughout the City. K. On December 6, 2016, the City Council adopted Ordinance No. 1544, adding Chapter 14 to Title 4 and amending Chapter 11 of Title 7 of the Municipal Code to expressly prohibit all commercial marijuana activity to the extent allowed by state law. 2 14

L. On December 20, 2016, the City Council adopted Ordinance No. 1545 extending the moratorium for an additional period of ten months and fifteen days. M. On November 7, 2017, the City Council adopted Ordinance No. 1561 extending the moratorium for an additional year. N. The AUMA made it lawful under state and local law for persons 21 years of age or older to: (1) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of marijuana not in the form of concentrated cannabis; (2) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of marijuana in the form of concentrated cannabis, including as contained in marijuana products; (3) Possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the plants; (4) Smoke or ingest marijuana or marijuana products; and (5) Possess, transport, purchase, obtain, use, manufacture, or give away marijuana accessories to persons 21 years of age or older without any compensation whatsoever. (Health & Safety Code 11362.1.) O. The AUMA added Division 10 to the Business & Professions Code, which grants state agencies the exclusive authority to create, issue, renew, discipline, suspend or revoke licenses for marijuana-related businesses, including the transportation, storage, distribution sale, cultivation, manufacturing, and testing of marijuana. P. The AUMA expressly preserves local control over the regulation of cannabis-related businesses and cannabis-related land uses, including the authority to completely prohibit any cannabis business licensed under Division 10 within its jurisdiction. (Business & Professions Code 26200, et seq.) Q. Under the AUMA, no city may completely prohibit persons 21 years of age or older from planting, cultivating, harvesting, drying, or processing up to six cannabis plants at any one time inside a private residence or inside an accessory structure to a private residence located upon the grounds of a private residence that is fully enclosed and secure. (Health & Safety Code 11362.2(b)(2).) However, a city may enact and enforce reasonable regulations on indoor cultivation and may completely prohibit the outdoor 3 15

cultivation of cannabis. (Health & Safety Code 11362.2(b)(1) and (3).) R. On June 27, 2017, the Governor signed Senate Bill (SB) 94, which took effect immediately. SB 94 merges existing state laws regarding medicinal and recreational (adult use) marijuana by repealing the Medical Cannabis Regulation and Safety Act (MCRSA) and including certain MCRSA provisions within the licensing provisions of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). The consolidated provisions are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). S. MAUCRSA expressly preserves the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis (marijuana) businesses licensed by the state, including, without limitation, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of cannabis businesses within the local jurisdiction. T. Since the adoption of Ordinance No. 1543, City planning staff, working in conjunction with the City Attorney and local law enforcement, has reviewed and considered the following: (1) federal and state laws pertaining to cannabis; (2) information and data from jurisdictions in other states that have previously decriminalized recreational cannabis, including documented evidence regarding the secondary impacts associated with legalization and the proliferation of cannabis-related uses and activities; (3) ordinances of other California cities that either prohibit or regulate cannabisrelated uses; (4) opinions and bulletins from law enforcement agencies in California and in other states regarding impacts associated with cannabisrelated uses and activities; and (5) information regarding the effects of cannabis use. U. Cannabis-related land uses and activities can adversely affect the health, safety, and well-being of City residents. Cannabis cultivation and distribution can attract crime, lead to fires, expose minors to cannabis, negatively impact neighborhoods, damage buildings, require dangerous electrical alterations and use, and create the nuisance of strong and noxious odors. (White Paper on Marijuana Dispensaries, California Police Chiefs Association s Task Force on Marijuana Dispensaries, April 22, 2009, p. 12.) A study released in May 2016 by AAA Foundation for Traffic Research found that fatal crashes involving drivers who recently used marijuana doubled in the state of Washington after it legalized marijuana. (Prevalence of Marijuana Involvement in Fatal Crashes: Washington, 2010-2014, May 2016, AAA Foundation for Traffic Safety.) Based on these facts and other evidence, there is a concern that the proliferation of cannabis-related uses 4 16

and activities in the City would result in increased crime and other negative secondary effects like those experienced in other communities throughout California and around the country. To safeguard against these deleterious secondary effects, the City Council finds it is necessary to maintain the prohibition on cannabis-related uses and activities in all zones and specific plan areas to the maximum extent permissible under State law. V. Although cannabis-related land uses and activities are already prohibited in all areas of the City pursuant to the Municipal Code, the proposed ordinance would update the existing prohibitions to account for changes in the law made by the AUMA and MAUCRSA. U. On September 27, 2018, the Planning Commission held a public hearing to receive public testimony and other evidence regarding the proposed ordinance including information provided to the Planning Commission by city staff, and; W. This Resolution and its findings are made based upon the evidence presented to the Commission at its September 27, 2018, hearing. SECTION 2: General Plan Consistency. Based upon oral and written testimony and other evidence received at the public hearing held for this item, and upon studies and investigations made by staff on behalf of the Planning Commission, the Planning Commission finds that the proposed Ordinance is consistent with the goals, policies, and objectives of the General Plan. The General Plan sets as a goal a high quality of life for all residents. The General Plan does not permit or contemplate the establishment or operation of cannabis-related land uses anywhere in the City. The Land Use Element of the General Plan is implemented through the City s Zoning Code. The El Segundo Zoning Code is permissive in nature, meaning uses that are not expressly authorized by the Code are prohibited. Cannabis-related uses have never been allowed anywhere in the City and are expressly prohibited. Although this is the current state of the law, the proposed amendments to the Zoning Code are intended to update the City s existing prohibitions to account for changes in the law made by the AUMA and MAUCRSA. By prohibiting cannabis-related uses, the City is preventing the negative secondary effects and other adverse impacts associated with such uses. The Planning Commission further finds that the proposed Zoning Code Amendment will not adversely affect surrounding properties. The Amendment is a City-wide Zoning Code Amendment that prohibits cannabis-related uses and activities to the maximum extent allowed under State law. The prohibition prevents the negative secondary effects associated with such uses, enhances the health, safety, and welfare of the community, and will not adversely affect surrounding properties. SECTION 3: Zone Text Amendment Findings. In accordance with ESMC Chapter 15-26 (Amendments), the proposed ordinance is consistent with and necessary to carry out the purpose of the ESMC as follows: 5 17

The ordinance is necessary and consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources. The ordinance is intended to clarify that all cannabis-related uses and activities are prohibited to the maximum extent allowed under State law. The prohibition prevents the negative secondary effects associated with such uses, enhances the health, safety, and welfare of the community, and will not adversely affect surrounding properties. SECTION 4: Environmental Assessment. The proposed ordinance does not have the potential to cause significant effects on the environment and, therefore, the project is exempt from the California Environmental Quality Act (CEQA) pursuant to 14 Cal. Code Regs. 15061(b)(3). The ordinance amends the El Segundo Municipal Code to clarify the existing prohibitions on cannabis-related land uses and activities. The ordinance does not portend any development or changes to the physical environment. Following an evaluation of possible adverse impacts, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. In addition to the foregoing general exemption, the following categorical exemption applies: 14 Cal. Code Regs. 15308 (actions taken for the protection of the environment). SECTION 5: Recommendations. The Planning Commission recommends that the City Council adopt the proposed ordinance attached as Exhibit A which would implement the Zone Text Amendment and prohibit cannabis-related land uses and activities in all zones and specific plan areas throughout the City to the maximum extent allowed under State law. SECTION 6: Reliance on Record. Each and every one of the findings and determination in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the Planning Commission in all respects and are fully and completely supported by substantial evidence in the record as a whole. SECTION 7: Limitations. The Planning Commission s analysis and evaluation of the project is based on information available at the time of the decision. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. In all instances, best efforts have been made to form accurate assumptions. SECTION 8: This Resolution will remain effective until superseded by a subsequent resolution. SECTION 9: The Commission secretary is directed to mail a copy of this Resolution to any person requesting a copy. 6 18

SECTION 10: This Resolution may be appealed within 10 calendar days after its adoption. All appeals must be in writing and filed with the City Clerk within this time period. Failure to file a timely written appeal will constitute a waiver of any right of appeal. PASSED AND ADOPTED this 27 th day of September 2018. ATTEST: Ryan Baldino, Chair City of El Segundo Planning Commission Sam Lee, Secretary Baldino - Newman - Hoeschler - Wingate - Keldorf - APPROVED AS TO FORM: Mark D. Hensley, City Attorney By: David King, Assistant City Attorney 7 19

ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AMENDING TITLE 15, CHAPTER 13B OF THE EL SEGUNDO MUNICIPAL CODE PROHIBITING CANNABIS-RELATED USES AND ACTIVITIES IN ALL ZONES AND SPECIFIC PLAN AREAS OF THE CITY The City Council of the City of El Segundo does ordain as follows: SECTION 1: The City Council finds and determines as follows: A. On November 5, 1996, the voters of the State of California approved Proposition 215, codified as Health and Safety Code Section 11362.5 et seq., and entitled the Compassionate Use Act of 1996 ( CUA ). The CUA exempted qualified patients and their primary caregivers from criminal liability under state law for the possession and cultivation of marijuana for personal medical use. B. The intent of the CUA was to enable persons in the State of California who are in need of marijuana for medicinal purposes to obtain it and use it under limited, specified circumstances. C. The State enacted Senate Bill 420 in October 2003, codified at Health and Safety Section 11362.7, et seq., ( Medical Marijuana Program Act, or MMPA ) to clarify the scope of the Compassionate Use Act of 1996 and to allow cities and other governing bodies to adopt and enforce rules and regulations consistent with SB 420. The MMPA created a state-approved voluntary medical marijuana identification card program and provided for certain additional immunities from state marijuana laws. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the Medical Marijuana Program to expressly recognize the authority of counties and cities to [a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective and to civilly and criminally enforce such ordinances. D. The CUA and MMPA did not legalize marijuana, but provided limited defenses to certain categories of individuals with respect to certain conduct and certain state criminal offenses. E. In City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal.4th 729, the California Supreme Court held that [n]othing in the CUA or the MMP expressly or impliedly limits the inherent authority of a local jurisdiction, by its own ordinances, to regulate the use of its land.... Additionally, in Maral v. City of Live Oak (2013) 221 Cal.App.4th 975, the Court of Appeal held that there is no right and certainly no constitutional right to cultivate medical marijuana..... The Court in Maral affirmed the ability of a local governmental entity to prohibit the cultivation of marijuana under its land use authority. 1 20

F. The Federal Controlled Substances Act, 21 U.S.C. 801 et seq., classifies marijuana as a Schedule 1 Drug, which is defined as a drug or other substance that has a high potential for abuse, that has no currently accepted medical use in treatment in the United State, and that has not been accepted as safe for use under medical supervision. The Federal Controlled Substances Act makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute or dispense, marijuana. The Federal Controlled Substances Act contains no exemption for medical purposes. G. On October 9, 2015 Governor Brown signed three bills into law (AB 266, AB 243, and SB 643) which collectively are known as the Medical Marijuana Regulation and Safety Act ( MMRSA ). MMRSA established a State licensing scheme for commercial medical marijuana uses while protecting local control by requiring that all such businesses must have a local license or permit to operate in addition to a State license. MMRSA allowed a City to completely prohibit commercial medical marijuana activities. H. On March 1, 2016, the City Council adopted Ordinance No. 1518, adding Chapter 11 to Title 7 and Chapter 13B to Title 15 of the El Segundo Municipal Code to clarify that commercial cannabis activities, cultivation of medical cannabis, delivery of medical cannabis, medical marijuana dispensaries, and medical marijuana collectives are prohibited in all zones and specific plan areas of the city. I. On November 8, 2016, the voters of the State of California passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act ( AUMA ). The AUMA decriminalizes (under California law), controls and regulates the cultivation, processing, manufacture, distribution, testing and sale of nonmedical marijuana, including marijuana products, for use by adults 21 years of age or older. The AUMA also taxes the commercial growth and retail sale of marijuana. It does not, and cannot, affect federal regulations regarding marijuana or its derivatives. J. On November 15, 2016, the City Council adopted Ordinance No.1543, a forty-five-day interim zoning ordinance prohibiting the issuance of any permit for marijuana-related land uses in any zone throughout the City. K. On December 6, 2016, the City Council adopted Ordinance No. 1544, adding Chapter 14 to Title 4 and amending Chapter 11 of Title 7 of the Municipal Code to expressly prohibit all commercial marijuana activity to the extent allowed by state law. L. On December 20, 2016, the City Council adopted Ordinance No. 1545 extending the moratorium for an additional period of ten months and fifteen days. M. On November 7, 2017, the City Council adopted Ordinance No. 1561 extending the moratorium for an additional year. 2 21

N. The AUMA made it lawful under state and local law for persons 21 years of age or older to: (1) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of marijuana not in the form of concentrated cannabis; (2) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of marijuana in the form of concentrated cannabis, including as contained in marijuana products; (3) Possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the plants; (4) Smoke or ingest marijuana or marijuana products; and (5) Possess, transport, purchase, obtain, use, manufacture, or give away marijuana accessories to persons 21 years of age or older without any compensation whatsoever. (Health & Safety Code 11362.1.) O. The AUMA added Division 10 to the Business & Professions Code, which grants state agencies the exclusive authority to create, issue, renew, discipline, suspend or revoke licenses for marijuana-related businesses, including the transportation, storage, distribution sale, cultivation, manufacturing, and testing of marijuana. P. The AUMA expressly preserves local control over the regulation of cannabis-related businesses and cannabis-related land uses, including the authority to completely prohibit any cannabis business licensed under Division 10 within its jurisdiction. (Business & Professions Code 26200, et seq.) Q. Under the AUMA, no city may completely prohibit persons 21 years of age or older from planting, cultivating, harvesting, drying, or processing up to six cannabis plants at any one time inside a private residence or inside an accessory structure to a private residence located upon the grounds of a private residence that is fully enclosed and secure. (Health & Safety Code 11362.2(b)(2).) However, a city may enact and enforce reasonable regulations on indoor cultivation and may completely prohibit the outdoor cultivation of cannabis. (Health & Safety Code 11362.2(b)(1) and (3).) R. On June 27, 2017, the Governor signed Senate Bill (SB) 94, which took effect immediately. SB 94 merges existing state laws regarding medicinal and recreational (adult use) marijuana by repealing the Medical Cannabis Regulation and Safety Act (MCRSA) and including certain MCRSA provisions within the licensing provisions of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). The consolidated provisions are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). S. MAUCRSA expressly preserves the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis (marijuana) businesses licensed by the state, including, without limitation, local zoning and land use requirements, business 3 22

license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of cannabis businesses within the local jurisdiction. T. Since the adoption of Ordinance No. 1543, City planning staff, working in conjunction with the City Attorney and local law enforcement, has reviewed and considered the following: (1) federal and state laws pertaining to cannabis; (2) information and data from jurisdictions in other states that have previously decriminalized recreational cannabis, including documented evidence regarding the secondary impacts associated with legalization and the proliferation of cannabis-related uses and activities; (3) ordinances of other California cities that either prohibit or regulate cannabis-related uses; (4) opinions and bulletins from law enforcement agencies in California and in other states regarding impacts associated with cannabis-related uses and activities; and (5) information regarding the effects of cannabis use. U. On September 27, 2018, the Planning Commission held a duly noticed public hearing and adopted Resolution No. 2851 recommending that the City Council approve Zone Text Amendment No. 17-07 to clarify and update the existing prohibition on cannabis-related uses in activities in all zones and specific plan areas throughout the City. V. On October 16, 2018, the City Council held a duly noticed public hearing on in order to receive and consider public testimony on the subject of this Ordinance. W. The City Council finds that cannabis-related land uses and activities can adversely affect the health, safety, and well-being of City residents. Cannabis cultivation and distribution can attract crime, lead to fires, expose minors to cannabis, negatively impact neighborhoods, damage buildings, require dangerous electrical alterations and use, and create the nuisance of strong and noxious odors. (White Paper on Marijuana Dispensaries, California Police Chiefs Association s Task Force on Marijuana Dispensaries, April 22, 2009, p. 12.) A study released in May 2016 by AAA Foundation for Traffic Research found that fatal crashes involving drivers who recently used marijuana doubled in the state of Washington after it legalized marijuana. (Prevalence of Marijuana Involvement in Fatal Crashes: Washington, 2010-2014, May 2016, AAA Foundation for Traffic Safety.) Based on these facts and other evidence, there is a concern that the proliferation of cannabis-related uses and activities in the City would result in increased crime and other negative secondary effects like those experienced in other communities throughout California and around the country. To safeguard against these deleterious secondary effects, the City Council finds it is necessary to maintain the prohibition on cannabis-related uses and activities in all zones and specific plan areas to the maximum extent permissible under State law. X. Although cannabis-related land uses and activities are already prohibited in all areas of the City pursuant to the Municipal Code, the proposed ordinance would update the existing prohibitions to account for changes in the law made by the AUMA and MAUCRSA. 4 23

SECTION 2: General Plan Consistency. Based upon oral and written testimony and other evidence received at the public hearing held for this item, and upon studies and investigations made by staff on behalf of the City Council, the City Council finds that the proposed Ordinance is consistent with the goals, policies, and objectives of the General Plan. The General Plan sets as a goal a high quality of life for all residents. The General Plan does not permit or contemplate the establishment or operation of cannabis-related land uses anywhere in the City. The Land Use Element of the General Plan is implemented through the City s Zoning Code. The El Segundo Zoning Code is permissive in nature, meaning uses that are not expressly authorized by the Code are prohibited. Cannabis-related uses have never been allowed anywhere in the City and are expressly prohibited. Although this is the current state of the law, the proposed amendments to the Zoning Code are intended to update the City s existing prohibitions to account for changes in the law made by the AUMA and MAUCRSA. By prohibiting cannabis-related uses, the City is preventing the negative secondary effects and other adverse impacts associated with such uses. The City Council further finds that the proposed Zoning Code Amendment will not adversely affect surrounding properties. The Amendment is a City-wide Zoning Code Amendment that prohibits cannabis-related uses and activities to the maximum extent allowed under State law. The prohibition prevents the negative secondary effects associated with such uses, enhances the health, safety, and welfare of the community, and will not adversely affect surrounding properties. SECTION 3: Authority. This ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including, but not limited to, Article XI, Section 7 of the California Constitution, the Compassionate Use Act, the Medical Marijuana Program Act, the Medical Marijuana Regulation and Safety Act, and the Control, Regulate and Tax Adult Use of Marijuana Act, and the Medicinal and Adult-Use Cannabis Regulation and Safety Act. SECTION 4: Section 1-6 of Title 15 of the El Segundo Municipal Code is amended to add the following definitions: CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA): A statute that requires all jurisdictions in the State of California to evaluate the extent of environmental degradation posed by proposed development. CANNABIS: all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin, including cannabis infused in foodstuff or any other ingestible or consumable product containing cannabis. Cannabis also means the separated resin, whether crude or purified, obtained from cannabis. The term cannabis includes medical cannabis for the purposes set forth in the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. Cannabis does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other 5 24

compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. Cannabis does not mean industrial hemp as defined by Section 11018.5 of the Health and Safety Code. CANNABIS ACCESSORIES: any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. CANNABIS CULTIVATION: any activity involving the planting, growing, cultivating, harvesting, drying, curing, grading, trimming or processing of cannabis. CANNABIS CULTIVATION FACILITY: a facility where cannabis is cultivated, prepared, and packaged for sale to cannabis dispensaries, to cannabis product manufacturing facilities, or to other cannabis cultivation facilities, but not to consumers. CANNABIS DELIVERY: the commercial transfer of cannabis or cannabis products to a customer. Delivery also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed under this division, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products. CANNABIS DISPENSARY: a facility or location, whether fixed or mobile, where cannabis, cannabis products, or devices for the use of cannabis are offered, made available to, or provided, either individually or in any combination, with or without remuneration, for medical, recreational, or other purposes. CANNABIS DISTRIBUTION: the procurement, sale, and transport of cannabis and cannabis products between state-licensed entities for commercial use purposes. CANNABIS ESTABLISHMENT: a cannabis cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a cannabis dispensary. CANNABIS MANUFACTURE: to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. CANNABIS PRODUCT MANUFACTURING FACILITY: a facility where cannabis and cannabis products are manufactured, prepared and packaged for sale to other cannabis product manufacturing facilities or to cannabis dispensaries, but not to consumers. 6 25

CANNABIS PRODUCTS: cannabis 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 topical product containing cannabis or concentrated cannabis and other ingredients. CANNABIS-RELATED ACTIVITY: any commercial cannabis activity, cultivation of cannabis, delivery of cannabis or cannabis products, distribution of cannabis or cannabis products, dispensing of cannabis or cannabis products, manufacture of cannabis or cannabis products, sale of cannabis or cannabis products, and the operation or establishment of a cannabis or medical cannabis cooperative, dispensary, delivery service, or provider. Cannabis-related activity does not include the cultivation, planting, harvesting, drying, processing or possession of up to six cannabis plants at one time by persons 21 years of age or older when conducted within a single private residence and in a manner consistent with Health & Safety Code Section 11362.2 and any other applicable regulations. CANNABIS STORAGE FACILITY: a facility used for the storage of cannabis, cannabis products or cannabis accessories. CANNABIS TESTING FACILITY: a facility where cannabis is analyzed and certified for safety and potency. COMMERCIAL CANNABIS ACTIVITY: the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products. PRIVATE RESIDENCE: a house, an apartment unit, a mobile home, or other similar habitable dwelling. SECTION 5: Chapter 13B of Title 15 of the El Segundo Municipal Code is deleted in its entirety and replaced as follows: Chapter 13B CANNABIS-RELATED USES AND ACTIVITIES 15-13B-1: Definitions. 15-13B-2: Prohibited uses and activities. 15-13B-3: Cultivation of cannabis for personal use. 15-13B-4: Interpretation. 15-13B-1: Definitions 7 26