CITY OF ELK GROVE CITY COUNCIL STAFF REPORT

CITY OF ELK GROVE CITY COUNCIL STAFF REPORT AGENDA ITEM NO. 9.2 AGENDA TITLE: Conduct a public hearing to consider introduction of an Ordinance adopting Elk Grove Municipal Code Chapter 23.83 regarding Indoor Personal Marijuana Cultivation, amending Elk Grove Municipal Code Table 23.27-1, and repealing Elk Grove Ordinance 04-2017 (CEQA Exempt) MEETING DATE: March 22, 2017 PREPARED BY: DEPARTMENT HEAD: Jonathan P. Hobbs, City Attorney Shane Diller, Assistant Development Services Director Jonathan P. Hobbs, City Attorney Darren Wilson, Development Services Director RECOMMENDED ACTION: By a vote of 4-1 (Maita, voting no) at its March 2, 2017 meeting, the Planning Commission recommended that the City Council find the proposed Zoning Code amendments exempt from the California Environmental Quality Act and introduce and waive the full reading, by substitution of title only, an ordinance adding Elk Grove Municipal Code Chapter 23.83 relating to Indoor Personal Marijuana Cultivation, repeal Ordinance No. 04-2017 relating to a Moratorium on Commercial Marijuana Land Use and Marijuana Cultivation, and amending Chapter 23.27 relating to Allowed Land Uses and Required Entitlements (CEQA Exempt). The final effect of the ordinance, if passed, is that all commercial marijuana activity, including commercial deliveries, shall be prohibited in the City. Consistent with state law, personal cultivation of up to six marijuana plants will be permitted in a private residence, or associated accessory structure, subject to the proposed regulations. Medical marijuana dispensaries would continue to be prohibited in the City. 1

Elk Grove City Council March 22, 2017 Page 2 of 6 BACKGROUND INFORMATION: Consistent with state law, the EGMC prohibits all medical marijuana cultivation, as well as medical marijuana dispensaries in the City. The EGMC also prohibits the commercial delivery of medical marijuana, as authorized by state law. (See EGMC 23.27.020 [Use Table 23.27-1, prohibiting medical marijuana dispensaries and cultivation in all zones]; EGMC, Chapter 9.31 [defining and prohibiting medical marijuana dispensaries]; City of Riverside v. Inland Empire Patients Health and Wellness Center (2013) 56 Cal.4th 729 [cities may prohibit medical marijuana dispensaries]; Maral v. City of Live Oak (2013) 221 Cal.App.4th 975 [cities may prohibit medical marijuana cultivation]; EGMC 9.31.035 [prohibiting marijuana delivery]; Bus. & Prof. Code 19340(a) [cities may prohibit commercial medical marijuana deliveries].) On November 8, 2016, California voters approved Proposition 64, which is the initiative known as the Adult Use of Marijuana Act ( AUMA ). Subject to local and state restrictions and regulations, AUMA generally legalizes the nonmedical, recreational use of marijuana by persons 21 years of age and over. (Health & Saf. Code 11362.1.) AUMA prohibits smoking or ingesting marijuana: (1) in any public place (except in locally authorized marijuana distribution shops, none of which are authorized in the City of Elk Grove); (2) where smoking tobacco is prohibited; (3) within 1,000 feet of a school, day care center, or youth center while children are present; and (4) while driving, or riding in the passenger seat of any vehicle used for transportation. (Health & Saf. Code 11362.3, 11362.4.) Consistent with the law prior to the passage of AUMA, public and private employers may continue to adopt regulations to maintain a drug and alcohol free workplace. (Health & Saf. Code 11362.45(f).) AUMA creates a comprehensive dual state and local regulatory and licensing scheme governing commercial nonmedical marijuana activities, including the commercial cultivation, testing, manufacturing, and distribution of nonmedical marijuana. The State must develop regulations and begin issuing state licenses under AUMA by January 1, 2018. (Bus. & Prof. Code 26012). Under this dual licensing structure, cities may adopt local ordinances regulating or completely prohibiting nonmedical marijuana businesses and commercial activities, including marijuana deliveries. (Bus. & Prof. Code 26200(b)). Without both a state and local permit, commercial marijuana business cannot operate within a city. 2

Elk Grove City Council March 22, 2017 Page 3 of 6 Similar to a city s authority over medical marijuana, cities may continue to prohibit all outdoor personal cultivation of nonmedical marijuana. (Health & Saf. Code, section 11362.2(b)(3)). Limited indoor personal cultivation of marijuana is allowed under AUMA and cannot be completely prohibited by cities. For each single family residence, AUMA allows indoor personal cultivation of up to six marijuana plants, and the possession of the marijuana produced by the plants, all subject to reasonable regulations adopted by the applicable city or county. (Health & Saf. Code 11362.1(a)(3), 11362.2(b)(2)). On December 14, 2016, the City Council adopted an urgency ordinance. (Ordinance 30-2016) placing a moratorium on all commercial marijuana activity and all marijuana cultivation within the City of Elk Grove, until such time as reasonable regulations intended to protect the public health and safety could be adopted. Under state law, that moratorium would be in effect for 45 days (Gov. Code 65858). On January 25, 2017, the City Council extended the moratorium for an additional 10 months and 15 days (the maximum allowed by law), to December 13, 2017. (Ordinance 04-2017). The City s Code also permissibly goes somewhat further than state law under AUMA, and it prohibits smoking of any substance in public places were prohibited by the owner, as well as within 300 feet of schools, day care centers, playgrounds, parks, amusement centers, or youth sports facilities. (EGMC Ch. 6.22). Additionally, as mentioned above, new state law under AUMA prohibits smoking or ingesting marijuana in any public place, unless authorized by the City. (Health & Saf. Code 11362.3). This combination of state and local laws is adequate from staff s perspective to address public consumption of marijuana. Consistent with new state law adopted by AUMA, this proposed Zoning Code amendment would establish reasonable guidelines for personal marijuana cultivation inside a private residence or associated accessory structure. The proposed ordinance would also repeal the moratorium currently in place (Ordinance 04-2017). Government Code section 65858(h) provides that, at least ten days before the expiration of the moratorium, the City shall issue a report describing measures taken to alleviate the condition leading to the moratorium. This staff report shall serve as that report. On March 2, 2017, the Planning Commission considered the proposed ordinance and Zoning Code amendments. The Planning Commission 3

Elk Grove City Council March 22, 2017 Page 4 of 6 recommended adoption of the proposed ordinance by a vote of 4-1 (Maita, voting no). ANALYSIS: As stated above, state law, through AUMA, allows a person to cultivate up to six marijuana plants indoors for personal use. While the City cannot completely prohibit this use, AUMA allows cities to impose reasonable regulations to reasonably regulate such indoor personal cultivation. The regulations proposed by this ordinance are summarized below: Reinforces state law that marijuana may not be cultivated or accessible to persons under 21 years of age; Prohibits the commercial cultivation, testing, or retail sale of marijuana within the City of Elk Grove; Reinforces state law that cultivation shall be limited to no more than six marijuana plants per residence; Requires that any person cultivating marijuana be a full-time resident at the location where the marijuana is being grown; Prohibits all outdoor cultivation of marijuana; Cultivation is only permitted in a private residence, consistent with AUMA; Reinforces that no growing operation can be constructed in violation of applicable codes governing structures, including the Zoning Code, the California Building Code, Electrical Code, and Fire Code, as adopted by the City of Elk Grove; Prohibits grow lighting in excess of 1,200 watts per residence; Prohibits the indoor use of generators or gas products in the cultivation activity; Requires personal cultivation performed in a residence to be done in a manner that does not alter the primary use of any kitchen, bathroom, or bedroom; Requires that the private residence or accessory structure in which the marijuana is cultivated be locked except when in use; Prohibits cultivation activity from being visible from the public right-ofway; Prohibits marijuana cultivation in any rented residence without express consent of the owner; Prohibits emission of odors in violation of the EGMC. 4

Elk Grove City Council March 22, 2017 Page 5 of 6 The ordinance also sets forth enforcement mechanisms for violations of the EGMC, including the imposition of fines and the seizure of marijuana plants exceeding the six-plant limit, all subject to administrative appeals. Amendments to the Zoning Code are also proposed to the Allowable Uses table (Table 23.27-1), to include references to marijuana cultivation under the Human Services category. The proposed amendments are included as Exhibit B to the proposed ordinance. To summarize the changes: Commercial Marijuana Activity is a new category to the land use table, and such use is prohibited within the City. A use regulation note will direct the reader to the marijuana cultivation ordinance where the definition of commercial marijuana activity is located. Medical Marijuana Cultivation will be amended to read Indoor Marijuana Cultivation, and it will be listed as a permitted use, subject to the specified regulations, in zones where single family residences are allowed. The Medical Marijuana Dispensary category shall be amended to add a use regulation note directing the reader to Chapter 9.31 of the EGMC. Medical Marijuana Dispensaries will remain prohibited within the City. ENVIRONMENTAL ANALYSIS: The California Environmental Quality Act (section 21000, et. seq. of the California Public Resources Code, hereafter CEQA) requires analysis of agency approvals of discretionary projects. A project, under CEQA, is defined as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines 15378(a)). The enactment of this ordinance does not constitute the approval of a project under CEQA, and it is exempt from CEQA. (Pub. Res. Code 21065, CEQA Guidelines 15060(c),(2)(3); 15061(b)(3); 15064(d)(3); 15378(a)). The proposed amendments to Zoning Code would impose reasonable regulations and standards on the indoor personal cultivation of marijuana, as allowed by AUMA. The proposed amendments set specific requirements related to appropriate zoning, location, number of plants and various other standards not impacting the physical environment. The amendments reinforce compliance with existing State and local regulations adopted by 5

Elk Grove City Council March 22, 2017 Page 6 of 6 the City of Elk Grove (California Building, Electrical, and Fire Codes). Cultivation activities would be subject to existing performance standards, including prohibiting any use from creating noxious odorous emission in a manner of quantity that are detrimental to or endanger the public health, safety, comfort or welfare. A continued prohibition on all commercial activities related to the cultivation of marijuana maintains the status quo and would not cause a significant impact on the environment. All indoor personal cultivation activities would occur within the confines of a residential structure or associated accessory structure, thereby resulting in no physical change to the environment. Therefore, the proposed code amendments would not constitute the approval of a project under CEQA, and are exempt from CEQA. (Pub. Res. Code 21065, CEQA Guidelines 15060(c),(2)(3); 15061(b)(3); 15064(d)(3); 15378(a)). FISCAL IMPACT: There are no direct fiscal impacts to this item. It is anticipated that the Police Department and Code Enforcement Division will be able to handle the enforcement of this ordinance with existing resources. ATTACHMENTS: 1. Ordinance a. Exhibit A- Chapter 23.83 b. Exhibit B- Table 23.27-1 2. Ordinances 04-2017 and 30-2016 (moratoria) 6

ATTACHMENT 1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ELK GROVE ADDING ELK GROVE MUNICIPAL CODE CHAPTER 23.83 RELATING TO INDOOR PERSONAL MARIJUANA CULTIVATION, REPEALING ORDINANCE NO. 04-2017 RELATING TO A MORATORIUM ON COMMERCIAL MARIJUANA LAND USE AND MARIJUANA CULTIVATION, AND AMENDING CHAPTER 23.27 RELATING TO ALLOWED LAND USES AND REQUIRED ENTITLEMENTS (CEQA EXEMPT) WHEREAS, on November 8, 2016, California voters approved Proposition 64, which is commonly known as the Adult Use of Marijuana Act ( AUMA ); and WHEREAS, AUMA recognizes a city s authority to regulate and/or prohibit marijuana related business and marijuana cultivation; and WHEREAS, AUMA provides that a person may possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the marijuana plants, and that a city may enact and enforce reasonable regulations to reasonably regulate such actions and conduct, but that a city may not completely prohibit such actions or conduct inside a private residence or inside a fully enclosed accessory structure to a private residence located on the grounds of the private residence. NOW, THEREFORE, the City Council of the City of Elk Grove does ordain as follows: Section 1: Purpose The purpose of this Ordinance is to add regulations relative to marijuana cultivation and commercial marijuana business and activities. The City Council has authority to adopt this ordinance pursuant to California Constitution Article XI, Section 7, Health and Safety Code Section 11362.2, and other statutory and case law governing the authority of cities. Section 2: Findings California Environmental Quality Act (CEQA) Finding: The enactment of this ordinance does not constitute the approval of a project under the California Environmental Quality Act ( CEQA ), and it is exempt from CEQA. (Pub. Res. Code 21065, CEQA Guidelines 15060(c),(2)(3); 15061(b)(3); 15064(d)(3); 15378(a)) 7

Evidence: The California Environmental Quality Act (section 21000, et. seq. of the California Public Resources Code, hereafter CEQA) requires analysis of agency approvals of discretionary projects. A project, under CEQA, is defined as the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (CEQA Guidelines 15378(a)). The proposed amendments to Title 23 would impose reasonable regulations and standards on the indoor personal cultivation of marijuana, as allowed by AUMA. The proposed amendments set specific requirements related to appropriate zoning, location, number of plants and various other standards not impacting the physical environment. The amendments reinforce compliance with existing State and local regulations adopted by the City of Elk Grove (California Building, Electrical, and Fire Codes). Cultivation activities would be subject to existing performance standards, including prohibiting any use from creating noxious odorous emission in a manner of quantity that are detrimental to or endanger the public health, safety, comfort or welfare. A continued prohibition on all commercial activities related to the cultivation of marijuana maintains the status quo and would not cause a significant impact on the environment. All permitted indoor personal cultivation activities would occur within the confines a residential structure or associated accessory structure, thereby resulting in no physical change to the environment. Therefore, the proposed code amendments would not constitute the approval of a project under CEQA, and are exempt from CEQA (Pub. Res. Code 21065, CEQA Guidelines 15060(c),(2)(3); 15061(b)(3); 15064(d)(3); 15378(a)). General Plan Consistency Finding: The proposed amendments to the Elk Grove Municipal Code are consistent with the General Plan goals, policies, and implementation programs. Evidence: The City s General Plan Goals and Policies recognize the need for diversified uses, while equally protecting the health, safety and welfare of its residents and the environment. The proposed amendments would put into place reasonable regulations for personal cultivation of marijuana in accordance with AUMA. These regulations require compliance with existing State and local regulations, including but not limited to the California Building, Electrical and Fire Codes as well as various performance standards in the Municipal Code. By placing reasonable regulations on cultivation of marijuana for personal use, the City is providing a mechanism to ensure the protection of the health, safety and welfare of its residents and the environment which is consistent with the General Plan goals, policies, and implementation programs. 8

Section 3: Adopt Elk Grove Municipal Code Chapter 23.83 relating to indoor personal marijuana cultivation. Elk Grove Municipal Code Chapter 23.83 is hereby adopted to read as set forth in Exhibit A. Section 4: Repeal of Moratorium on Commercial Marijuana Land Use and Marijuana Cultivation. Ordinance No. 30-2016 Moratorium on Commercial Marijuana Land Use and Marijuana Cultivation and Ordinance No. 04-2017 Extending a Moratorium on Commercial Marijuana Land Use and Marijuana Cultivation are hereby repealed as of the effective date of this ordinance. The staff report dated March 22, 2017 shall serve as the report required by California Government Code, section 65858(h). Section 5: Amend Elk Grove Municipal Code Chapter 23.27 Allowed Uses and Required Entitlements. Table 23.27-1 is hereby amended as set forth at Exhibit B. Section 6: No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner that imposes upon the City or any officer or employee thereof a mandatory duty of care towards persons and property within or without the City, so as to provide a basis of civil liability for damages, except as otherwise imposed by law. Section 7: Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. This City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the ordinance be enforced. Section 8: Savings Clause The provisions of this ordinance shall not affect or impair an act done or right vested or approved or any proceeding, suit or prosecution had or commenced in any cause before such repeal shall take affect; but every such act done, or right vested or accrued, or proceeding, suit or prosecution shall remain in full force and affect to all intents and purposes as if such ordinance or part thereof so repealed had remained in force. No 9

offense committed and no liability, penalty or forfeiture, either civilly or criminally incurred prior to the time when any such ordinance or part thereof shall be repealed or altered by said Code shall be discharged or affected by such repeal or alteration; but prosecutions and suits for such offenses, liabilities, penalties or forfeitures shall be instituted and proceeded with in all respects as if such prior ordinance or part thereof had not been repealed or altered. Section 9: Effective Date and Publication This Ordinance shall take effect thirty (30) days after its adoption. In lieu of publication of the full text of the ordinance within fifteen (15) days after its passage, a summary of the ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the City Council and a certified copy shall be posted in the office of the City Clerk, pursuant to GC 36933(c)(1). INTRODUCED: ADOPTED: EFFECTIVE: STEVE LY, MAYOR of the CITY OF ELK GROVE ATTEST: APPROVED AS TO FORM: JASON LINDGREN, CITY CLERK JONATHAN P. HOBBS, CITY ATTORNEY Date signed: 10

EXHIBIT A Chapter 23.83 INDOOR PERSONAL MARIJUANA CULTIVATION Sections: 23.83.010 Purpose and intent 23.83.020 Definitions 23.83.030 Cultivation of marijuana for personal use 23.83.040 Enforcement 23.83.010 Purpose and intent. It is the purpose and intent of this Chapter to enact and enforce reasonable regulations to reasonably regulate the ability of an individual twenty-one (21) years of age or older to possess, plant, cultivate, harvest, dry, or process, for personal noncommercial use, not more than six (6) living marijuana plants indoors and to possess the marijuana produced by the plants, all in accordance with the Adult Use of Marijuana Act of 2016 and, specifically, Sections 11362.1 and 11362.2 of the Health and Safety Code. The cultivation of marijuana for personal noncommercial use may only take place in accordance with this Chapter. Nothing herein is intended to alter or amend any other local, state, or federal law or regulations concerning marijuana. 23.83.020 Definitions. Consistent with the definitions set forth in the Adult Use of Marijuana Act of 2016, for the purposes of this Chapter, the following words shall have the following meaning. If a word is not defined in this Chapter, the common and ordinary meaning of the word shall apply. A. Accessory structure means a legally existing fully enclosed detached structure no larger than one hundred twenty square feet (120 ft 2 ) in size that is fully enclosed with walls for all perimeters of the building, including, without limitation, a storage shed located on the same legal parcel as a private residence. B. Commercial marijuana activity means the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transportation, or sale of marijuana and marijuana products for commercial purposes, whether or not conducted with a license issued in accordance with Division 10 of the Business and Professions Code (Business and Professions Code sections 26000, et seq.). C. Cultivate or Cultivation means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana. D. Distribution means the commercial procurement, sale, and transport of marijuana and marijuana products whether or not conducted with a license issued in accordance with Division 10 of the Business and Professions Code (Business and Professions Code sections 26000, et seq.). 11

E. Indoor means inside a private residence, residential structure, or accessory structure. F. Legal parcel means any parcel of real property that may be separately sold in compliance with the Subdivision Map Act (Government Code sections 66410 et. seq.). G. Manufacture means the commercial production, preparation, propagation, or compounding of marijuana or marijuana products either directly or indirectly or by extractions and chemical synthesis at a fixed location that packages or repackages marijuana or marijuana products or labels or re-labels its container. H. Marijuana means all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resins. Marijuana does not include: a. Industrial hemp, as defined in Health and Safety Code section 11018.5; or b. The weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink or other product. The terms marijuana and cannabis shall be synonymous and have the same meaning. I. Marijuana products means 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 topical product containing marijuana or concentrated cannabis and other ingredients. J. Outdoor means any location within the City of Elk Grove that is not within a fully enclosed structure. K. Premises means a single, legal parcel of property. Where contiguous legal parcels are under common ownership or control, such contiguous legal parcels shall constitute a single premises for purposes of this Chapter. L. Private residence means a legally existing house, apartment unit, mobile home, or other similar dwelling. A legally existing accessory structure located on the same legal parcel as a private residence shall be considered a part of that private residence. M. Residential structure means any building or portion thereof legally existing which contains living facilities, including provisions for sleeping, eating, cooking and sanitation on a premises or legal parcel located within a zoning district authorizing such use and which may be legally occupied by persons. 23.83.030 Cultivation of marijuana for personal use. The following regulations shall apply to the cultivation of marijuana for personal use within the City. A. It shall be unlawful and a public nuisance for any person under twenty-one (21) years of age to cultivate marijuana. B. It shall be unlawful and a public nuisance for any person to cultivate marijuana for any commercial marijuana activity. Notwithstanding the 12

foregoing, nothing herein is intended to prohibit the transportation of marijuana or marijuana products on public roads by a licensee duly licensed and acting in compliance with Division 10 of the Business and Professions Code (Business and Professions Code section 26000, et seq.). Commercial delivery of marijuana in the City is prohibited. C. It shall be unlawful and a public nuisance for any person twenty-one (21) years of age or older who own, lease, occupy, or have charge or possession of any legal parcel or premises within any zoning district in the City of Elk Grove to cultivate marijuana for personal use except as provided for in this Chapter 23.83. D. Limitations on Cultivation. Not more than a total of six (6) living marijuana plants may be planted, cultivated, harvested, dried, or processed inside a single private residence and/or inside an accessory structure located on the grounds where the private residence is located, at any one time. The living marijuana plants and any marijuana produced by the plants in excess of 28.5 grams shall be kept within the private residence or accessory structure located upon the premises, in a locked space, and not visible by normal unaided vision from a public view. E. Residency Requirement. Any person who cultivates marijuana for personal use shall reside full-time on the premises where the marijuana cultivation occurs. F. Outdoor Cultivation Prohibited. It shall be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any legal parcel or premises within any zoning district in the City of Elk Grove to cause, or allow such parcel or premises to be used for, the outdoor cultivation of marijuana or marijuana products. G. Cultivation in Private Residences Only. Personal cultivation of marijuana is prohibited in all zoning districts except inside a private residence or inside an accessory structure located on the same legal parcel as a private residence, as permitted under EGMC section 23.27.020 and Use Table 23.27-1, and all subject to the regulations set forth in this Chapter. H. Indoor Personal Cultivation. The indoor personal cultivation of marijuana inside a private residence or inside an accessory structure located on the same legal parcel as a private residence, as permitted herein, shall only be conducted consistent with the following minimum standards: 1. Structures shall comply with all laws concerning building and construction of structures, including, without limitation, and as applicable, the Zoning Code, the California Building Code, Electrical Code, and Fire Code, as adopted by the City of Elk Grove. 2. Marijuana cultivation lighting shall not exceed a total of one-thousand twohundred (1,200) watts for the cultivation area within the private residence. 3. The indoor use of generators and/or the indoor use of gas products, including, without limitation, CO 2, butane, propane, and natural gas shall be prohibited for the cultivation of marijuana. 13

4. The private residence shall maintain fully functional kitchen, bathroom, and bedroom facilities for use by the residents and guests, and the private residence shall not be used primarily for marijuana cultivation. 5. Marijuana cultivation areas shall not be readily accessible to persons under twenty-one (21) years of age. 6. Any private residence or accessory structure used for marijuana cultivation shall contain a lock on the entry door, which shall remain locked at all times, except when the accessory structure is in use or occupied by a person twenty-one (21) years of age or older authorized to cultivate marijuana pursuant to this Chapter. 7. Marijuana cultivation activities, including marijuana plants and equipment, shall not be visible from a public right-of-way. 8. No marijuana may be cultivated in a rented private residence without the express consent of the property owner. 9. Marijuana cultivation shall not be conducted in such a manner as to emit detrimental odorous emissions outside of the private residence in violation of EGMC section 23.60.050. 23.83.040 Enforcement. A. Violations of this Chapter shall constitute a public nuisance and may be enforced pursuant to the provisions of Title 1 and Chapter 16.18 of this Municipal Code. B. Consistent with the restrictions set forth in California Health and Safety Code section 11362.2(a)(3), the City may seize and destroy any living marijuana plants found in excess of the six (6) plants allowed under EGMC section 23.83.030.D. Any marijuana plants seized pursuant to this section shall be held by the City for not less than fifteen (15) days to allow the owner of the marijuana plants to pursue an administrative appeal pursuant to EGMC Chapter 1.11. If an appeal is not properly filed (including the payment of any applicable appeal fee) within this time period, the City may thereafter destroy the seized marijuana plants. C. Upon discovery of a violation of this Chapter, the City may require all marijuana plants and marijuana in excess of 28.5 grams to be removed from the premises upon 24 hours notice from the City, or immediately if the City determines such action is necessary to protect the health, welfare and/or safety of the public and/or occupants of the premises. D. The remedies set forth in this Chapter shall be cumulative and in addition to any and all other remedies, civil, equitable or criminal, afforded to the City under the law. Pursuit of one remedy under this Chapter, or any other provision of law, shall not preclude pursuit of any other remedy provided herein or any other provision of law. E. Any notice of violation of this Chapter may be appealed pursuant to EGMC Chapter 1.11. 14

EXHIBIT B Table 23.27-1: Allowed Uses and Required Entitlements for Base Zoning Districts Agricultural Zoning Districts Residential Zoning Districts Commercial Zoning Districts Office Zoning Districts Industrial Zoning Districts Open Space Zoning District Specific Use Regulations Land Use \ Zoning District AG-80 AG-20 AR-5/10 AR-2 AR-1 RD-1/2/3 RD-4/5/6 RD-7 RD-10/15 RD-20/25/30 LC GC SC AC C-O BP MP LI HI O Human Services Uses Commercial Marijuana Activity - - - - - - - - - - - - - - - - - - - - EGMC 23.83 Medical Indoor Marijuana Cultivation P P P P P P P P 6 P 6 P 6 P 17 P 18 P 19 P 19 P 19 P 8 P 8 EGMC 23.83 Medical Marijuana Dispensary - - - - - - - - - - - - - - - - - - - - EGMC 23.83EGMC 9.31 Notes that pertain to the residential zoning districts: 6. Permitted inside the private residence of an authorized work facility, and all subject to EGMC 23.83 Notes that pertain to the commercial zoning district: 17. Permitted inside an authorized private caretaker residence or inside the private living space of an authorized live-work facility, and all subject to EGMC 23.83 18. Permitted inside an authorized private caretaker residence, inside the private living space of an authorized live-work facility, or inside authorized private multifamily dwellings, and all subject to EGMC 23.83 19. Permitted inside an authorized private caretaker residence, and subject to EGMC 23.83 Notes that pertain to the industrial zoning district: 8. Permitted inside an authorized private caretaker residence, and all subject to EGMC 23.83 15

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Incorporated July 1, 2000 CITY OF ELK GROVE 8401 Laguna Palms Way Telephone: (916) 683-7111 Elk Grove, California 95758 Fax: (916) 627-4400 www.elkgrovecity.org City of Elk Grove City Council NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on Wednesday, March 22, 2017, at the hour of 6:00 p.m., or as soon thereafter as the matter may be heard, the Elk Grove City Council will conduct a public hearing at City Hall in the Council Chambers, 8400 Laguna Palms Way, Elk Grove, California, to consider the following matter: ZONING CODE AMENDMENT UNDER TITLE 23 INDOOR PERSONAL MARIJUANA CULTIVATION CHAPTER 23.83: The proposed action is a City-initiated amendment to Title 23 (Zoning) of the Elk Grove Municipal Code adding Chapter 23.83 Indoor Personal Marijuana Cultivation. The proposed amendments would establish guidelines for cultivation of marijuana for personal use within zones legally permitted under the Adult Use of Marijuana Act (AUMA). The proposed action would also amend Table 23.27-1 Allowable Uses and Requirement Entitlements for Base Zoning Districts of Title 23 to prohibit commercial marijuana activity in all zones, and to permit personal marijuana cultivation, in appropriate zones, subject to specified regulations. Additionally, this action would repeal the Urgency Ordinance placing a moratorium on commercial marijuana land uses and marijuana cultivation in the City, which was adopted by the City Council on December 14, 2016 and extended on January 25, 2017 The Planning Commission reviewed this item on March 2, 2017 and voted 4-1 to recommend the Amendment. LOCATION/APN: Citywide ENVIRONMENTAL: The enactment of this ordinance does not constitute the approval of a project under the California Environmental Quality Act ( CEQA ), and it is exempt from CEQA. (Pub. Res. Code 21065, CEQA Guidelines 15060(c),(2)(3); 15061(b)(3); 15064(d)(3); 15378(a)) Information or questions regarding this item should be referred to Shane Diller, (916) 687-3002, or to the office of Development Services Planning, 8401 Laguna Palms Way, Elk Grove, CA, 95758. All interested persons are invited to present their views and comments on this matter. Written statements may be filed with the City Clerk at any time prior to the close of the hearing scheduled herein, and oral statements may be made at said hearing. If you challenge the subject matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Clerk, 8401 Laguna Palms Way, Elk Grove, CA, 95758, at or prior to the close of the public hearing. 24

This meeting notice is provided pursuant to Section 23.14.040 of Title 23 of the Elk Grove Municipal Code. Dated/Published: March 10, 2017 JASON LINDGREN CITY CLERK, CITY OF ELK GROVE ADA COMPLIANCE STATEMENT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Office of the City Clerk at (916) 478-3635. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. 25