MEETING DATE: 11/21/2017
DEPARTMENT: RESOURCE MANAGEMENT AGENCY
DEPT HEAD/DIRECTOR: John Guertin
AGENDA ITEM PREPARER: Sarah Dickionson
SBC DEPT FILE NUMBER: 790
SUBJECT:
RESOURCE MANAGEMENT AGENCY - J. GUERTIN
a) Consider adoption of a Cannabis Businesses Ordinance adding Chapter 7.02 of the San Benito County Code prohibiting any and all commercial cannabis activities within the unincorporated area of San Benito County;
b) 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), and 15308 (regulatory activity to assure the protection of the environment) and direct the RMA Director to file a Notice of Exemption;
1) Waive the reading;
2) Accept the introduction;
3) Continue to December 12, 2017 for adoption.
c) Approve publication of first display ad and direct County Counsel to publish second display ad after adoption.
and
d) Provide direction to staff whether staff should continue to develop a cannabis businesses ordinance at the Planning Commission level for future review by the Board of Supervisors.
Or:
Take no action, rely on the language prohibiting cannabis businesses as stated in Ch. 11.15, and provide direction to staff whether staff should continue to develop a cannabis businesses ordinance at the Planning Commission level for future review by the Board of Supervisors.
SBC FILE NUMBER: 790
AGENDA SECTION:
REGULAR AGENDA
BACKGROUND/SUMMARY:
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 On June 27, 2017, Senate Bill 94 was approved by Governor Brown which repealed MCRSA and includes certain provisions of MCRSA in the licensing provisions of AUMA.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, as applicable, 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. (See San Benito County Code Chapter 11.15.)
The County has a permissive zoning code specifically identifying the uses permitted by right or with a conditional use permit within each County zone, and commercial cannabis activities have never been allowed within the unincorporated area of the County.
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. Over the past several months staff and the Ad Hoc have presented various versions of a draft ordinance for review and direction to the San Benito County Planning Commission and Board of Supervisors. Members of the public were invited to provide their own input and perspectives at these meetings.
On November 1, 2017, the Planning Commission did not take any action to make a recommendation to the Board of Supervisors regarding the draft cannabis businesses ordinance which would have excepted medicinal cannabis cultivation and transportation of medicinal cannabis from the prohibition of cannabis business activities within the unincorporated area of San Benito County. The Planning Commission continued the hearing to December 6, 2017 at 6:00pm regarding that draft.
Beginning January 1, 2018 state licensing authorities shall begin issuing licenses under SB 94. The state licensing authorities will not issue permits for a cannabis business activity if it violates the provisions of any local ordinance or regulation. While the County clearly bans medical marijuana dispensaries (See San Benito County Code §25.29.160 [Prohibition of Establishing or Operation of Marijuana Dispensaries]), it is unclear whether relying on permissive zoning for other cannabis business activities is sufficient to prevent the State from issuing a permit for cannabis business activities, including, but not limited to cultivation, distribution, testing laboratory, manufacturing, micro-businesses, delivery, and retail.
In light of the imminent ability for state licensing authorities to implement SB 94 and the County’s current inability to regulate cannabis businesses within its jurisdiction, staff requests the Board of Supervisors consider adoption of the proposed ordinance prohibiting any and all cannabis business activities within the unincorporated area of San Benito County.
Accordingly, the proposed ordinance makes it clear that all cannabis business activities, including, but not limited to, cultivation, processing, packaging, labeling, storing, distribution, transportation, testing laboratory, manufacturing, micro-businesses, delivery, and retail of cannabis and cannabis products are banned in the unincorporated area of the County.
Environmental Review:
Staff has conducted the environmental review of this ordinance under CEQA and CEQA Guidelines.
Staff 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, Staff further finds that the Ordinance is categorically exempt from review under CEQA under the Class 8 Categorical Exemption (regulatory activity to assure the protection of the environment).
The Board of Supervisors is requested to make the above CEQA exemption findings.
Alternatively, the Board of Supervisors May Prefer to Rely on Ch. 11.15 to Prohibit Cannabis Business Activities:
If the Board prefers to not adopt a ban ordinance and continue to develop a cannabis business ordinance, the County could rely on the existing Chapter 11.15 which does indicate that no cannabis business activities are permitted except as authorized by Chapter 7.02, which does not currently exist. In this case, the Board would take no action on Chapter 7.02, and staff would bring this matter back at a future meeting after further consideration of the Planning Commission.
BUDGETED:
SBC BUDGET LINE ITEM NUMBER:
CURRENT FY COST:
STAFF RECOMMENDATION:
RESOURCE MANAGEMENT AGENCY - J. GUERTIN
a) Consider adoption of a Cannabis Businesses Ordinance adding Chapter 7.02 of the San Benito County Code prohibiting any and all commercial cannabis activities within the unincorporated area of San Benito County;
b) 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), and 15308 (regulatory activity to assure the protection of the environment) and direct the RMA Director to file a Notice of Exemption;
1) Waive the reading;
2) Accept the introduction;
3) Continue to December 12, 2017 for adoption.
c) Approve publication of first display ad and direct County Counsel to publish second display ad after adoption.
and
d) Provide direction to staff whether staff should continue to develop a cannabis businesses ordinance at the Planning Commission level for future review by the Board of Supervisors.
Or:
Take no action, rely on the language prohibiting cannabis businesses as stated in Ch. 11.15, and provide direction to staff whether staff should continue to develop a cannabis businesses ordinance at the Planning Commission level for future review by the Board of Supervisors.
ADDITIONAL PERSONNEL: