RESOURCE MANAGEMENT AGENCY

a) Conduct public hearing regarding the draft Cannabis Businesses Ordinance (adding Chapter 7.02 of the San Benito County Code) proposed by the ad hoc committee in consultation with key stakeholders;

b) Make 2035 General Plan consistency findings and determinations as set forth in the Planning Commission's Resolution No. 2017-26;

c) Find that adoption of Ch. 7.02, is  exempt pursuant to CEQA Guidelines sections 15060, subdivision (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment),15061, subdivision (b)(3) (there is no possibility the activity in question may have a significant effect on the environment), 15308 (regulatory activity to assure the protection of the environment); and 15183 (projects consistent with a Community Plan, General Plan, or zoning), and direct the RMA Director to file a Notice of Exemption;

d) Consider adoption of an Ordinance adding Chapter 7.02 of the San Benito County Code relating to regulation of Cannabis Businesses in the unincorporated areas of the County: 

1)              Waive the reading;

2)              Accept the introduction;

3)              Adopt the Ordinance;

and

e) Direct staff to make requested revisions to Ch. 7.02, including, but not limited, revisions in light of the passage of SB 94 ("MAUCRSA").

SBC FILE NUMBER: 790

ORDINANCE NO. 958

Overview of State Cannabis Laws:

Over the past two years, there have been substantial changes in state law relating to cannabis cultivation and distribution, including the enactment of detailed state regulatory schemes for medicinal cannabis (the Medical Cannabis Regulation and Safety Act) and non-medicinal cannabis (sometimes referred to as "recreational marijuana" or “recreational cannabis”) (Prop. 64, the Adult Use of Marijuana Act). These new state laws preserve strong local control over both personal cannabis cultivation and cannabis business activities, specifically, with regard to cannabis business activities (both medicinal and non-medicinal) which may be regulated or completely banned. On June 27, 2017, Senate Bill 94 was approved by Governor Brown which repealed MCRSA and includes certain provisions of MCRSA in the licensing provisions of AUMA. Under SB 94, these consolidated provisions are known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act ("MAUCRSA").

As relevant here, the  MAUCRSA phases out the collective and cooperative model of cannabis cultivation and distribution, and replaces it with a state licensing system that treats the medicinal cannabis industry like other commercial industries in the state. Under the MAUCRSA, a state and local license or entitlement is required before a person may engage in cannabis business activities, e.g., cultivation of cannabis marijuana except cultivation for personal use in compliance with state and local laws.

Procedural Background:

On January 10, 2017, the Board of Supervisors appointed the current Marijuana Ad Hoc Committee members (Supervisor Rivas and Supervisor Medina)  and directed staff to bring forward an ordinance pertaining to cannabis businesses in San Benito County.

The draft ordinance explicitly prohibits cannabis business activities (defined in state law as “commercial cannabis activities”), with the exception of cannabis businesses engaged in the cultivation or transportation of medicinal cannabis, which are not prohibited under the proposed ordinance.

In May, the San Benito County Board of Supervisors and the San Benito County Planning Commission each held a meeting for staff to present the draft ordinance for review and direction with regard to whether any of the provisions should be explored further, stricken, or other provisions added. Members of the public were invited to provide their own input and perspectives at each of these meetings to either the Board of Supervisors or the Planning Commission on this draft ordinance.

Following those meetings, staff met and conferred again with the ad hoc committee and stakeholders. Medicinal cannabis nursery and transportation permits were added to the proposed ordinance, as well as, including regulatory provisions similar to those expected to be adopted at the state level.

On June 21, 2017, a public hearing was held regarding the draft cannabis businesses ordinance and the Planning Commission adopted a resolution recommending that the Board of Supervisors adopt an Ordinance adding Chapter 7.02 of the San Benito County Code relating to Cannabis Businesses, making 2035 General Plan consistency findings and determinations, and making appropriate findings and determinations under the California Environmental Quality Act (“CEQA”). Specifically, the Planning Commission made certain recommended revisions to the draft ordinance.

The ad hoc and staff request the Board of Supervisors consider adoption of the resolution of the Planning Commission.

General Plan Consistency:

Staff has reviewed the 2035 General Plan and has determined that the ordinance is consistent with said General Plan.

The Planning Commission determined that the proposed ordinance is consistent with the 2035 General Plan, Section 9 Health and Safety Element which “provides guidance for how to protect county residents, workers, visitors, and properties from unreasonable risks associated with natural and manmade hazards. One of the main strategies used by the County to maintain safety is to require distance between known hazards and places where people live, work, and congregate.” Goal HS-5.2, Sensitive Land Use Locations, states, “[t]he County shall ensure adequate distances between sensitive uses and facilities or operations that may produce toxic or hazardous air pollutants or substantial odors.” The Ordinances are consistent with Goal HS-5.2 in that setbacks are required from sensitive land use areas, as well as, from all boundary lines so as to reduce the contact with odors from cannabis cultivation on residential properties.

The Planning Commission further found:

1. the proposed ordinance is consistent with the 2035 General Plan, Section 3 Land Use Element, GOAL LU-3.1 Agricultural Diversification, states, “[t]he County shall support existing farms, vineyards, and other agricultural operations and encourage the agricultural industry to continue diversification that includes organic, value-added, small-scale, sustainable, and community-supported agricultural practices throughout the county.” The Ordinance is consistent with Goal LU-3.1 in that not prohibiting certain cannabis business activities creates diversity of available agricultural-type opportunities and thereby promotes the diversification of use of agricultural and rangeland zones; and

    

2. the proposed ordinance is consistent with the 2035 General Plan, Section 3 Land Use Element, GOAL LU-6.3 Industrial Uses, states, “[t]he County shall encourage industrial land uses to locate in areas that would not pose significant land use conflicts and in a manner appropriate to the type of industrial activity proposed, such as industry in direct support of agricultural operations in agricultural areas and general light industrial services nodes near existing and proposed major transportation infrastructure (e.g., highways like State Route 25 corridor in the North County, arterial roads, rail, and airports).” The Ordinance is consistent with Goal LU-6.3 in that the zones identified for cannabis business activities encompass all areas where the nodes have been identified, and that the ordinance allows cannabis cultivation in industrial areas.

    

3. the proposed ordinance is consistent with the 2035 General Plan, Section 4, Economic Development Element, focuses on diversifying the local economy. GOAL ED-1.5 Quality of Life Improvements, states, “[t]he County shall focus economic development efforts on creating positive change in the county relative to residents and workers’ quality of life. This should include considering air quality, education opportunities, safety, water quality, scenic beauty, and recreational opportunities during economic development decisions.” The Ordinance is consistent with Goal ED-1.5 in that cannabis cultivation sites and cannabis transporters will be subject to stringent regulations, including, but not limited to the prohibition of outdoor cultivation, odor filtration requirements, and a track-and-trace program which is intended to deter criminal activity and trespass; and

    

4. the proposed ordinance is consistent with the 2035 General Plan, Section 4, GOAL ED-1.6 Agricultural Base Diversification, states, “[t]he County shall diversify the existing agricultural base by encouraging strong relationships between traditional agricultural industries and emerging agricultural-related industries, and emphasizing the expansion of value-added agricultural products in the county.” The Ordinance is consistent with Goal ED-1.5 in that cannabis business is an emerging agricultural-related industry with a local base of persons interested in entering the cannabis industry, as well as, persons and entities outside the County looking for cannabis business opportunities in San Benito County.

The Board of Supervisors is requested to make the above 2035 General Plan consistency findings that were made by the Planning Commission and incorporated in their recommendation.

Environmental Review:

Staff has conducted the environmental review of this ordinance under CEQA and CEQA Guidelines.

The Planning Commission determined that the proposed ordinance is categorically exempt pursuant to CEQA Guidelines sections 15060, subdivision (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15061, subdivision (b)(3) (there is no possibility the activity in question may have a significant effect on the environment). In addition to the foregoing general exemptions, the Board of Supervisors further finds that the Ordinances are categorically exempt from review under CEQA under the Class 8 Categorical Exemption (regulatory activity to assure the protection of the environment).

Additionally, the Planning Commission found that based on the evidence in the record and described in the public hearing, the proposed ordinance (Project) is exempt from CEQA pursuant to CEQA Guideline Section 15183 of Title 14 of the California Code of Regulations. CEQA Guideline Section 15183 provide that projects which are consistent with a Community Plan, General Plan or Zoning for which an EIR has been certified “shall not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects which are peculiar to the project or its site.” An EIR was certified by the Board of Supervisors for the adoption of the County of San Benito General Plan. The proposed ordinance is consistent with the general plan.  Therefore, the proposed project qualifies for the exemption under CEQA Guideline Section 15183, because the proposed ordinance is consistent with the General Plan, for which an EIR was certified.

The Board of Supervisors is requested to make the above CEQA exemption findings that were made by the Planning Commission and incorporated in their recommendation.

a) Conduct public hearing regarding the draft Cannabis Businesses Ordinance (adding Chapter 7.02 of the San Benito County Code) proposed by the ad hoc committee in consultation with key stakeholders;

b) Make 2035 General Plan consistency findings and determinations as set forth in the Planning Commission's Resolution No. 2017-26;

c) Find that adoption of Ch. 7.02, is  categorically exempt pursuant to CEQA Guidelines sections 15060, subdivision (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment),15061, subdivision (b)(3) (there is no possibility the activity in question may have a significant effect on the environment), 15308 (regulatory activity to assure the protection of the environment); and 15183 (projects consistent with a Community Plan, General Plan, or zoning), and direct the Resources Management Agency Director to file a Notice of Exemption;

d) Consider adoption of an Ordinance adding Chapter 7.02 of the San Benito County Code relating to regulation of Cannabis Businesses in the unincorporated areas of the County: 

1)              Waive the reading;

2)              Accept the introduction;

3)              Adopt the Ordinance;

and

e) Direct staff to make requested revisions to Ch. 7.02, including, but not limited, revisions in light of the passage of SB 94 ("MAUCRSA").