ORDINANCE NO. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS: FINDINGS, LEGISLATIVE NOTICE AND PURPOSE

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ORDINANCE NO. AN ORDINANCE AMENDING THE STOCKTON MUNICIPAL CODE BY AMENDING SECTION 16.20.020 (TABLE 2-2, LAND USES, SERVICES), SECTION 16.80.195 (MEDICAL CANNABIS), AND AMENDING SECTIONS 16.88.030 (PUBLIC HEARING NOTICES) AND 16.240.020 (DEFINITIONS OF SPECIALIZED TERMS AND PHRASES) TO PROHIBIT MEDICAL MARIJUANA DISPENSARIES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS: SECTION I. FINDINGS, LEGISLATIVE NOTICE AND PURPOSE A. In enacting this ordinance, the City Council finds and takes legislative notice as follows: 1. In 1970, Congress enacted the Controlled Substances Act (CSA), 21 U.S.C. section 801 et seq., which, among other things, makes it illegal to import, manufacture, distribute, possess or use marijuana for any purpose in the United States and further provides criminal penalties for marijuana use. 2. In 1996, the voters of the State of California approved Proposition 215, which was entitled the Compassionate Use of Act of 1996 (the "Act;" Health and Safety (H&S) Code Section 11362.5 et seq.). 3. California courts have held that the Act creates a limited exception from criminal liability for seriously ill persons who are in need of medical marijuana for specified medical purposes and who obtain and use medical marijuana under limited, specified circumstances. 4. On January 1, 2004, the "Medical Marijuana Program" (MMP), codified as H&S Code Sections 11362.7 to 11362.83, was enacted by the State Legislature to clarify the scope of the Act and to allow cities and other governing bodies to adopt and enforce rules and regulations consistent with the MMP. The MMP at H&S Code section 11362.765 prohibits the cultivation or distribution of medical marijuana for a profit. 5. Medical marijuana facilities, collectives, cooperatives and dispensaries (collectively dispensaries ) have opened to distribute medical marijuana, along with mobile or delivery dispensaries and large marijuana grow operations in warehouses and residences that remain illegal under the federal CSA and not fully addressed in the Act and MMP. 6. The Act expressly anticipates the enactment of additional local legislation. It provides: "Nothing in this section shall be construed to supersede legislation prohibiting persons from engaging in conduct that endangers others, nor to condone the diversion of marijuana for nonmedical purposes." (H&S Code 1

Section 11362.5.) The MMP similarly anticipates local regulation, providing: Nothing in this article shall prevent a city from adopting and enforcing local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective; civil and criminal enforcement of local ordinances; [and] other laws consistent with this article. (H & S Code Section11362.83.) 7. Several California cities and counties that have permitted the establishment of medical marijuana dispensaries have experienced serious adverse impacts associated with and resulting from such dispensaries. According to news stories widely reported and according to medical marijuana advocates, medical marijuana dispensaries have resulted in and/or caused an increase in crime, including burglaries, robberies, violence, illegal sales of marijuana to, and use of marijuana by, minors and other persons without medical need in the areas immediately surrounding such medical marijuana dispensaries. The City Council reasonably anticipates that the City of Stockton will experience similar adverse impacts and effects. A California Police Chiefs Association compilation of police reports, news stories and statistical research regarding such crimes and secondary impacts is contained in a 2009 white paper report. This compilation, as well as a compilation of other similar accounts, are on file with the City Clerk. It is reasonable to conclude that similar adverse impacts on the public health, safety and welfare will likely also occur in the City of Stockton if medical marijuana dispensaries are permitted. 8. According to at least one recent compilation by a medical marijuana advocacy organization, 85 cities and 8 counties in California have adopted moratoria or interim ordinances prohibiting medical marijuana dispensaries. 121 cities and 8 counties have adopted prohibitions against medical marijuana dispensaries. 9. The California Attorney General has adopted guidelines for the interpretation and implementation of the state's medical marijuana laws, entitled "GUIDELINES FOR THE SECURITY AND NON-DIVERSION OF MARIJUANA GROWN FOR MEDICAL USE (August 2008). "The Attorney General has stated in the guidelines that "[a]lthough medical marijuana 'dispensaries' have been operating in California for years, dispensaries, as such, are not recognized under the law." This selected reference to the guidelines is not intended as the City Council s agreement with or acceptance of the correctness of other provisions and legal conclusions in the guidelines, which are not binding on cities or courts. (People v. Hochanadel (2009) 176 Cal.App. 4th 997.) 10. Concerns about nonmedical marijuana use arising in connection with the Act and the MMP, and the widespread abuse of those laws by persons desiring to sell and use marijuana for recreational, non-medical purposes, also have been recognized by state and federal courts. One example is People v. Leal (2012) 2012 Cal. App. LEXIS 1126, in which the First District Court of Appeal stated: Not surprisingly, it seems that the enhanced protection from arrest has proven irresistible to those illegally trafficking marijuana, for if there is even rough accuracy in the anecdotal estimate by the arresting detective in this case 2

that nearly 90 percent of those arrested for marijuana sales possess either a CUA recommendation or a card then there is obviously widespread abuse of the CUA and the MMP identification card scheme by illicit sellers of marijuana. Ninety percent far exceeds the proportion of legitimate medical marijuana users one would expect to find in the populace at large. For this and other reasons, it is impossible for us not to recognize that many citizens, judges undoubtedly among them, believe the CUA has become a charade enabling the use of marijuana much more commonly for recreational than for genuine medical uses. Other courts have reached similar conclusions. (See, e.g., Bearman v. California Medical Bd. (2009) 176 Cal.App.4th 1588; People ex rel. Lungren v. Peron (1997) 59 Cal.App.4th 1383, 1386 to 1387; Gonzales v. Raich (2005) 545 U.S. 1.) The Attorney General s 2008 guidelines also reflect that concern. (People v. Hochanadel (2009) 176 Cal. App. 4th 997.) 11.. The courts have also issued the following rulings concerning the relationship between federal and state law and the medical use and distribution of marijuana: use, possession, distribution and sale of marijuana remain illegal under the federal CSA. (Bearman v. California Medical Bd. (2009) 176 Cal.App.4th 1588; Ross v. RagingWire Telecommunications, Inc. (2008) 42 Cal. 4th 920); despite California's Act and MMP, marijuana is deemed to have no accepted medical use under federal law. (Gonzales v. Raich (2005) 545 U.S. 1; United States v. Oakland Cannabis Buyers' Cooperative (2001) 532 U.S. 483); medical necessity is not a defense to prosecution under the federal CSA (United States v. Oakland Cannabis Buyers' Cooperative, 532 U.S. 483); and the federal government properly may enforce the CSA despite the Act and MMP (Gonzales v. Raich (2005) 545 U.S. 1); doctor-recommended marijuana use permitted by state law, but prohibited by federal law, is an illegal use of drugs for purposes of the ADA. (James v. City of Costa Mesa (9th Cir. 2012) 684 F.3d 825); there is no fundamental right to obtain or use medical marijuana (Raich v. Gonzalez (2007) 500 F. 3d 850); People v. Urziceanu (2005) 132 Cal.App.4th 747; 3

filling out a form that designates a commercial enterprise as the qualified patient s primary caregiver is insufficient to establish a caregiver status (People ex rel. Lungren v. Peron, 59 Cal.App.4th 1383 (1997): a primary caregiver status requires a specified showing of consistently providing care, independent of any assistance in taking medical marijuana, at or before the time of assuming the responsibility of assisting with medical marijuana (People v. Mentch (2008) 45 Cal.4th 274; operators of a storefront dispensary which sold marijuana to individuals did not operate within the CUA and the MMPA, and did not constitute a primary caregiver such that it was entitled to protections of the CUA and MMPA ( People v. Hochanadel (2009) 176 Cal.App.4th 997 (review denied by California Supreme Court)). 12. Article XI, Section 7 of the California Constitution provides a city may make and enforce within its limits all police, sanitary and other ordinances and regulations not in conflict with general laws. Two reported California decisions have specifically held that cities zoning and land use laws prohibiting medical marijuana dispensaries are not preempted by either the Act or the MMP. (City of Corona v. Naulls (2008) 166 Cal.App.4th 418; City of Claremont v. Kruse (2009) 177 Cal.App.4th 1153.) 13. Despite the CUA and MMP, the United States Attorneys in California have taken actions to enforce the federal CSA against marijuana dispensaries, and have issued letters stating that California cities and officials face possible criminal prosecution for enabling dispensaries to violate the federal CSA. Copies of these letters are attached to the staff report presented to the City Council with this ordinance and are on file with the City Clerk. 14. Allowing medical marijuana dispensaries, and issuing permits, business licenses or other applicable licenses or entitlements providing for the establishment and/or operation of medical marijuana dispensaries poses a threat to the public health, safety and welfare. 15. An ordinance prohibiting medical marijuana dispensaries, and prohibiting the issuance of any permits, licenses and entitlements for medical marijuana dispensaries, is necessary and appropriate to maintain and protect the public health, safety and welfare of the citizens of Stockton. 16. Marijuana plants, when grown outdoors, especially as they mature prior to harvest, often produce a distinctive, strong odor that can be detectable and offensive beyond the borders of the property on which it is grown. 17. Cities, counties and air quality districts in which marijuana is grown outdoors have received large numbers of complaints of odors related to the cultivation of marijuana. 4

18. Marijuana, even when grown for medicinal purposes, is extremely valuable and has a high market value. Many cities have experienced criminal activities where marijuana is grown. 19. The strong smell of marijuana growing, as well as the knowledge of its cultivation, create an attractive nuisance that attracts persons to the growing marijuana, and creates the risk of burglary, trespassing, robbery and armed robbery, often resulting in serious injury or death, and requiring scarce police and public safety resources. 20. Regulating the cultivation of marijuana is necessary and appropriate to maintain and protect the public health, safety and welfare of the citizens of the City of Stockton. B. The purpose of this ordinance is to prohibit the establishment, operation and location of medical marijuana, as defined herein, in the City of Stockton. SECTION II. AMENDMENT TO CODE TABLE 2-2 ALLOWABLE LAND USES AND PERMIT REQUIREMENTS PERMIT REQUIREMENT BY ZONING DISTRICT LAND USES C RE RL RM RH CO CN CG D CL CA IL IG PT PF OS SPECIFIC USE STANDARDS SERVICES Medical Marijuana Dispensaries Prohibited C = Commission Use Permit required 16.80.195 16.80.195. Medical Marijuana Dispensaries Are Prohibited.. A. Medical marijuana dispensaries, as defined herein, are prohibited in the City of Stockton. No person or entity shall operate, locate or otherwise permit or suffer a medical marijuana dispensary within the City of Stockton. B. The City shall not issue, approve or grant any permit, license or other entitlement for the establishment or operation of a medical marijuana dispensary. C. The prohibition in subsections A and B, above, includes, without limitation, renting, leasing, or otherwise permitting a medical dispensary to occupy or use a location, building, structure or vehicle. D. The establishment, maintenance or operation of a medical dispensary, as defined herein, within the City limits of the City of Stockton is a public nuisance. Violations of this ordinance may be enforced by any applicable law, with criminal 5

penalties limited if inconsistent with the Compassionate Use Act of 1996 or California Health and Safety Code Section 11362.7 et seq. 16.88.030. Public hearing notices. A. Content of Notice B. Method of Notice Distribution. Notice shall be provided as follows: 1. Published Notice 2. Mailed Notice. a. Actions. The following actions shall require a mailed notice: i. Council Actions. For specified actions in which the Council is the final Review Authority; and ii. Commission or Director Actions. For all actions in which: (A) The Commission is the final Review Authority (e.g., planned development permits, tentative maps, commission use permits, and variances); or (B) The Director is the final Review Authority and a public hearing is required (e.g., administrative use permits), except heritage tree permits. b. Method. The notice shall be mailed or delivered: i. Timing. At least 10 days before the hearing. ii. Recipients. (A) (B) (C) Subject Owner(s). The owner(s) of the property being considered or the owner s agent, and the applicant; Local Agencies. Each local agency expected to provide schools, water, or other essential facilities or services to the project, and whose ability to provide the facilities and services may be significantly affected; Affected Owners. All owners of real property as shown on the County s latest equalized assessment roll within a radius of 300 feet of the exterior boundaries of the parcel involved in the application, except for: (1) Large family child care homes, which shall be 100 feet, (2) Specific plans and master development plans. which shall be 1,000 feet, and (3) If the number of property owners to whom notice would be mailed is more than 1,000, the Director may choose to provide notice by placing a display advertisement in at least one (1) newspaper of general circulation within the City at least 10 days before the hearing in 6

16.240.020. Definitions of specialized terms and phrases. compliance with Government Code Section 65091(a)(3); "Marijuana" also known as cannabis shall have the same meaning as set forth in California Health and Safety Code Section 11018 as of the effective date of this ordinance and as subsequently amended. Currently under Section 11018, "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 resin. It 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 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. "Marijuana" shall also include concentrated cannabis, the separated resin, whether crude or purified, obtained from marijuana, and any foodstuffs infused with marijuana or concentrated cannabis. "Medical Marijuana Dispensary" means and includes (a) 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 California Health and Safety Code Section 11362.5 et seq., (b) any facility, building, structure or location where qualified patients and/or persons with identification cards and/or primary caregivers meet or congregate to cultivate or distribute marijuana for medical purposes; or (c) any not-for-profit site, facility, building, structure or location where two or more qualified patients and/or persons with an identification card associate, meet or congregate in order to collectively or cooperatively, distribute, sell, dispense, transmit, process, deliver, exchange or give away marijuana for medicinal purposes pursuant to Health and Safety Code Section 11362.5 et seq. and organized as a marijuana cooperative or collective as set forth in Health and Safety Code Section 11362.775. Notwithstanding the foregoing, "medical marijuana dispensary" shall not include or mean the following facility, building or location, or use, which shall not be subject to enforcement for violation of this ordinance, provided that the location of such facility, building or location, or use are otherwise regulated by applicable law, and further provided any such facility, building or location, or use complies strictly with applicable law, including, but not limited to, California Health and Safety Code Section 11362.5 et seq. and California Health and Safety Code Section 11362.7 et seq.: (a). A clinic licensed pursuant to Chapter 1 of Division 2 of the California Health and Safety Code. 7

(b). A health-care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code. (c). 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. (d). A residential care facility for the elderly, licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code. (e). A residential hospice, or a home health agency, licensed pursuant to Chapter 8 of Division 2 of the Health and Safety Code. (f). Any dwelling unit where one (1) qualified patient or person with an identification card, and one other individual identified as the primary caregiver of that qualified patient or person with an identification card associate to collectively or cooperatively cultivate marijuana on-site for the personal medical use of the single qualified patient or person with an identification card Any such cultivation shall comply with all other City ordinances. SECTION III. CEQA This ordinance is not a project within the meaning of Section 15378 of the State CEQA (California Environmental Quality Act) Guidelines, because it has no potential for resulting in physical change in the environment, directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guideline section 15061 (b) (3) because it can be seen with certainty to have no possibility of a significant effect on the environment. SECTION IV. NO VESTED RIGHTS This ordinance prohibits medical marijuana dispensaries. Neither this ordinance, nor any other provision of this Code or action, failure to act, statement, representation, certificate, approval, or permit issued by the City or its departments, or their respective representatives, agents, employees, attorneys or assigns, shall create, confer, or convey any vested or nonconforming right regarding any medical marijuana dispensary. SECTION V. SEVERABILITY In the event any section or portion of this ordinance shall be determined invalid or unconstitutional, such section or portion shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. SECTION VI. EFFECTIVE DATE 8

This ordinance shall take effect and be in full force and effect thirty (30) days after its passage. ADOPTED: EFFECTIVE: ATTEST: ANTHONY SILVA Mayor of the City of Stockton BONNIE PAIGE City Clerk of the City of Stockton 9