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HomeMy WebLinkAbout03 PC REPORT CANNABIS BUSINESSES AND ACTIVITY AGENDA REPORT ITEM 43 MEETING DATE: JANUARY 23, 2024 TO: PLANNING COMMISSION FROM: COMMUNITY DEVELOPMENT DEPARTMENT CITY ATTORNEY SUBJECT: CODE AMENDMENT (CA) 2024-0001 (ORDINANCE NO. 1540) — CANNABIS BUSINESSES AND ACTIVITY RECOMMENDATION That the Planning Commission adopt Resolution No. 4481 , recommending that the Tustin City Council adopt Draft Ordinance No. 1540, amending Tustin City Code (TCC) Sections 3141 , 3152, 9270, and 9297 related to the regulation of cannabis businesses and activity within the City. APPROVAL AUTHORITY TCC Section 9295f authorizes the Planning Commission to make a recommendation to the City Council on proposed amendments to TCC Article 9, Chapter 2 (Zoning Code). Draft Ordinance No. 1540 also contains proposed amendments to TCC Article 3, Chapter 1 (Business Regulations), Sections 3141 and 3152. The Planning Commission is not being asked to make recommendations with respect to the proposed amendments to the City's Business Regulations. BACKGROUND AND DISCUSSION Proposed Code Amendment Proposed CA 2024-0001 would update the TCC to ensure that it is not inconsistent with the Medicinal Cannabis Patients' Right of Access Act, that became effective on January 1 , 2024. Legislative Background In 1996, the voters of the State of California approved Proposition 215, entitled "The Compassionate Use Act of 1996" ("CUX) to enable seriously ill Californians, under the care of a physician, to legally possess, use, and cultivate marijuana for medical use under State law. In 2003, the California Legislature adopted SB 420, entitled the Medical Marijuana Program Act ("MMPA") that permitted qualified patients and their 1806078.1 Planning Commission Report January 23, 2024 Code Amendment 2024-0001 Page 2 primary care givers to associate collectively or cooperatively to cultivate marijuana for medical purposes without being subject to criminal prosecution under the California Penal Code. Neither the CUA nor the MMPA required or imposed an affirmative duty on local government agencies to allow, authorize, or sanction the establishment of facilities that cultivate, possess, or distribute medical marijuana within their jurisdictions. On December 4, 2006, the City Council adopted Ordinance No. 1322, that prohibited marijuana land uses, including medical marijuana dispensaries, in order to promote the health, safety, morals and general welfare of the residents and businesses of the City. On October 9, 2015, the "Medical Marijuana Regulation and Safety Act" ("MMRSA"), which was comprised of the State Legislative Bills known as Assembly Bill (AB) 243, AB 266, and Senate Bill (SB) 643, were signed into law. The MMRSA became effective on January 1 , 2016, and contained provisions governing the cultivation, processing, transportation, testing, and distribution of medical marijuana to qualified patients. The MMRSA also confirmed the right of local government entities to enact ordinances regulating or prohibiting marijuana cultivation, processing, delivery, and distribution, but required that any local government agency that wished to prohibit marijuana delivery into, or cultivation of marijuana within its jurisdiction, do so expressly by ordinance. On January 19, 2016, the City Council adopted Ordinance No. 1466, that expressly prohibited marijuana cultivation, processing, delivery, and distribution in all zoning districts within the City. On November 8, 2016, California voters approved Proposition 64 known as the Adult Use of Marijuana Act ("AUMA"). The AUMA created a regulatory scheme that called for licensing, taxing, oversight, and enforcement of recreational marijuana businesses within the State of California. Like the MMRSA before it, the AUMA expressly provided that local government entities have the right to adopt and enforce ordinances regulating or completely prohibiting cannabis businesses within their jurisdictions, subject to certain exceptions. In addition to creating a regulatory framework for marijuana businesses, the AUMA legalized certain activities by persons 21 years or older pertaining to the use, possession, processing, transportation, purchasing, cultivation, and harvesting of marijuana for recreational purposes. Some of the specific activities that were legalized by the AUMA included: 1 . Possessing, processing, transporting, purchasing, obtaining, or giving away, to adults aged 21 or older without compensation whatsoever, recreational marijuana in certain specified amounts (Health & Safety Code §§ 11362.1 (a)(1) and (a)(2)); Planning Commission Report January 23, 2024 Code Amendment 2024-0001 Page 3 2. Possessing, planting, cultivating, harvesting, drying, or processing not more than six (6) living marijuana plants and possessing the marijuana produced by those plants, provided that such activity is conducted within a person's private residence (i.e. house, apartment unit, mobile home or other similar dwelling), or upon the grounds of that private residence (e.g. in an outdoor garden area), are in a locked space, and are not visible by normal unaided vision from a public place (Health & Safety Code §§ 11362.1 (a)(3) and 11362.2(a)(2), (a)(3), and (b)(5)); and 3. Smoking or ingesting of marijuana and marijuana products (Health & Safety Code§ 11362.1(a)(4)). While local governments were permitted to regulate and prohibit cannabis businesses licensed under the AUMA, the AUMA specified that local government entities could not prohibit the foregoing activities, with the exception that local government could prohibit the processing, planting, cultivating, harvesting, and drying of marijuana outdoors upon the grounds of a private residence. In response to the AUMA, the City Council adopted Ordinance No. 1478 to ensure that the TCC did not prohibit activity and/or land uses expressly permitted by the AUMA. In all other respects, the TCC continued to prohibit all other cannabis activities and land uses to the greatest extent permitted by California law. On September 8, 2022, the Governor signed SIB 1186 into law. SIB 1186 is known as the Medicinal Cannabis Patients' Right of Access Act. It became effective on January 1 , 2024, and does the following: • Prohibits local jurisdictions from adopting or enforcing any regulations that prevent the retail sale by delivery of medicinal cannabis to patients or their caregivers. • Prohibits local jurisdictions from adopting or enforcing any regulations that have the effect of preventing the retail sale by delivery of medicinal cannabis to patients or their caregivers in a timely or readily accessible manner, including any of the following to the extent that such a regulation would prevent retail sale by delivery of medicinal cannabis: o Limitation of the number of businesses authorized to deliver medicinal cannabis to locations within the local jurisdiction. o Limitation of the operating hours of medicinal cannabis delivery businesses. o Limitation of the frequency of sales by delivery of medicinal cannabis. Planning Commission Report January 23, 2024 Code Amendment 2024-0001 Page 4 o Restriction of the types and quantities of medicinal cannabis that can be sold by delivery. o Prohibition of the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the local jurisdiction is conducted by a licensed, non-storefront retailer. However, the Medicinal Cannabis Patients' Right to Access Act did not affect the authority of local jurisdictions to regulate or prohibit cannabis activity and uses in other respects. ANALYSIS To the greatest extent possible under California law, the TCC has consistently prohibited the use of any property within the City's borders for purposes of any form of cannabis activity, regardless of whether that use was tied to medicinal or recreational marijuana. Aside from the personal cannabis uses and activities (which the TCC permits as mandated by the AUMA), the TCC currently contains prohibitions on use of property for any type of cannabis business or activity. These prohibitions are found in both the Business Regulations and Land Use provisions of the TCC. Specifically, TCC Section 9270c states, in relevant part, "Marijuana dispensaries as defined in this Code are expressly prohibited in all zoning districts." The TCC goes on to broadly define a "Marijuana Dispensary" in Section 9297 as: "`Marijuana Dispensary' [shall be defined as] any person, association, business, facility, use, establishment, location, delivery service, cooperative, collective, or provider, whether fixed or mobile, that possesses, cultivates, processes, distributes, makes available or otherwise facilitates the distribution of marijuana (in any form or incorporated into any other product), whether for recreational or medicinal use, to any person, including, but not limited to, a qualified patient, a person with an identification card, or a primary caregiver as those terms are defined in California Health and Safety Code Sections 11362.5 and 11362.7 et seq., as may be amended from time to time. "Marijuana dispensary" shall not include an individual aged twenty-one (21) years or older who: (1) Possess, processes, transports, purchases, obtains or gives away to adults aged twenty-one (21) or older without compensation whatsoever, recreational marijuana; or Planning Commission Report January 23, 2024 Code Amendment 2024-0001 Page 5 (2) Possesses, plants, cultivates, harvests, dries, or purchases six (6) or fewer living marijuana plants or who possesses the marijuana produced by those plants, provided that such activity is conducted within the person's "private residence", as that phrase is defined by California Health and Safety Code Section 11362.2(b)(5), or upon the grounds of that private residence, provided that such activities are conducted within a fully enclosed, locked space, and are not visible by normal unaided vision from a public place." Given the existing broad definition of "Marijuana Dispensary" within the TCC, coupled with its comprehensive ban of all activity that fits within that definition, the TCC currently prohibits activities that the State has made legal, and which State law has identified as activities that cannot be completely prohibited by local government agencies. The purpose of proposed CA 2024-0001 is to remove language within the TCC that conflicts with State law, while at the same time maintaining as much of the City's existing provisions related to cannabis activities as possible. Proposed CA 2024-0001 does this by removing the definition of "Marijuana dispensary" and replacing it with a substantially similar definition for "Cannabis Business", which carves out exceptions for those activities that the State has expressly indicated cannot be prohibited. With respect to the retail sale by delivery of medicinal cannabis, CA 2024-0001 would authorize a cannabis business to deliver medicinal cannabis to a qualified patient or their caregiver to a location within the City, provided that certain conditions are met. Specifically, the cannabis business must be licensed by the State as required by the California Business & Professions Code, and any deliveries must be made in compliance with existing State law. Further, deliveries must be made to a building on a residential property. Stated differently, deliveries cannot be made to empty lots, or to commercial or industrial locations. Finally, CA 2024-0001 would prohibit delivery of medicinal cannabis to publicly owned or operated land, public or private schools, day care facilities, youth centers, and public or private parks. All other cannabis uses and activities within the City remain illegal under CA 2024-0001 , including delivery of recreational cannabis within the City, and the establishment of a physical cannabis business within the boundaries of the City. The Medicinal Cannabis Patients' Right of Access Act stipulates that a local government cannot prohibit the establishment of physical premises of a licensed non-storefront retailer when it would prevent the delivery of medicinal cannabis within the jurisdiction. This requirement may force some remote jurisdictions to permit a physical retail location from which medicinal cannabis deliveries can be made. Tustin, on the other hand, is not remote, and medicinal cannabis deliveries can be conveniently and timely delivered to patients and caregivers within the City from licensed businesses located in Santa Ana and Costa Mesa. Therefore, prohibiting a physical location within the City from which Planning Commission Report January 23, 2024 Code Amendment 2024-0001 Page 6 medicinal cannabis deliveries can be made does not have the effect of preventing the delivery of medicinal cannabis as set forth in SB 1186. ENVIRONMENTAL ANALYSIS The proposed CA 2024-0001 is not subject to the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Sections 15060 (c) (2), as it can be seen with certainty that the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, and 15060(c)(3), since the activity is not a project as defined in Section 15378, because it has no potential for resulting in physical change to the environment, directly or indirectly. Attachments: A. Planning Commission Resolution No. 4481 B. Draft Ordinance No. 1540 Prepared by: Jason McEwen, Assistant City Attorney Presented by: Michael Daudt, Assistant City Attorney Approved by: Justina L. Willkom, Community Development Director ATTACHMENT A RESOLUTION NO. 4481 AN RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TUSTIN, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL ADOPT ORDINANCE NO. 1540, AMENDING TUSTIN CITY CODE SECTIONS 3141 , 3152, 9270, AND 9297 TO UPDATE THE CITY'S BUSINESS AND LAND USE REGULATIONS PERTAINING TO CANNABIS BUSINESSES (CODE AMENDMENT 2024-0001) The Planning Commission of the City of Tustin does resolve as follows: I. The Planning Commission finds and determines as follows: A. That in 1996, California voters approved Proposition 215, entitled The Compassionate Use Act ("CUA"), codified in Health and Safety Code Section 11362.5 et seq. The CUA, which was intended to enable seriously ill persons to obtain and use marijuana for medical purposes, exempted qualified patients and their primary caregivers from criminal prosecution under State law for the cultivation, distribution, possession, and use of marijuana under specified circumstances. B. That in 2003, the California Legislature enacted Senate Bill (SB)420, known as the Medical Marijuana Program Act ("MMPA"), codified in Health and Safety Code Section 11362.7 et seq. The MMPA clarified the scope and application of the CUA, better defined the regulatory framework for the cultivation, distribution, possession and use of medical marijuana, and recognized the right of cities to regulate the operation, location, and establishment of medical marijuana dispensaries. C. That on February 6, 2006, the City Council adopted Ordinance No. 1309, an interim urgency ordinance, and found that medical marijuana dispensaries are not permitted uses in any zoning district in the City of Tustin ("City") and expressly prohibited the establishment of any medical marijuana dispensary in the City for 45 days pending the commencement of appropriate studies and consideration of alternative land use approaches for addressing the health, safety, and welfare issues associated with the regulation of medical marijuana dispensaries in the City. On March 20, 2006, the City Council adopted Ordinance No. 1310, extending Ordinance No. 1309 for an additional 10 months and 15 days. D. That on December 4, 2006, the City Council adopted Ordinance No. 1322. The purpose and intent of Ordinance No. 1322 was to prohibit all illegal uses, including medical marijuana dispensaries, to promote the health, safety, morals and general welfare of the residents and businesses within the City. Resolution No. 4481 Page 2 E. That on May 6, 2013, the California Supreme Court in the case of City of Riverside v. Inland Empire Patient's Health and Wellness Center, Inc., 2013 WL 1859214 (Cal.), affirmed the right of municipalities to ban medical marijuana dispensaries, holding that neither the CUA nor the MMPA preempted a zoning ordinance declaring medical marijuana dispensaries a prohibited use of land. F. That on October 9, 2015, Governor Brown signed the "Medical Marijuana Regulation and Safety Act" ("MMRSA"), which was comprised of the State legislative bills known as Assembly Bill (AB) 243, AB 266, and Senate Bill (SB) 643, into law. G. That the MMRSA, effective as of January 1 , 2016, contains provisions that govern the cultivating, processing, transporting, testing, and distributing of medical cannabis to qualified patients. The MMRSA also contains new statutory provisions that: 1 . Expressly provide that the MMRSA does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances, or enforcement of local permit or licensing requirements regarding marijuana (Business & Professions Code §19315(a)); 2. Expressly provide that the MMRSA does not limit the authority or remedies of a local government under any provision of law regarding marijuana, including but not limited to a local government's right to make and enforce within its limits all police regulations not in conflict with general laws (Business & Professions Code § 19316(c)); and 3. Require a local government that wishes to prevent marijuana delivery activity, as defined in Business & Professions Code section 19300.5(m) of the MMRSA, from operating within the local government's boundaries to enact an ordinance affirmatively banning such delivery activity (Business & Professions Code § 19340(a)). H. That on January 19, 2016, the City Council adopted Ordinance No. 1466. The purpose of Ordinance 1466 was to prohibit marijuana cultivation, processing, delivery, and distribution in all zoning districts within the City. I. That on November 8, 2016, California voters approved Proposition 64—the Control, Regulate, and Tax Adult Use of Marijuana Act (the "Adult Use of Marijuana Act") legalizing certain activities by adults aged 21 or older pertaining to recreational marijuana including: Resolution No. 4481 Page 3 1 . Possessing, processing, transporting, purchasing, obtaining, or giving away, to adults aged 21 or older without compensation whatsoever, of recreational marijuana in certain specified amounts (Health & Safety Code §§ 11362.1(a)(1) and (a)(2)); 2. Possessing, planting, cultivating, harvesting, drying, or processing of not more than six living marijuana plants and possessing the marijuana produced by those plants, provided that such activity is conducted within a person's private residence (i.e. house, apartment unit, mobile home or other similar dwelling), or upon the grounds of that private residence (e.g. in an outdoor garden area), are in a locked space, and are not visible by normal unaided vision from a public place (Health & Safety Code §§ 11362.1(a)(3) and 11362.2(a)(2), (a)(3), and (b)(5)); and 3. Smoking or ingesting of marijuana and marijuana products (Health & Safety Code § 11362.1(a)(4)). J. That, pursuant to the Adult Use of Marijuana Act (AUMA), local entities may not completely prohibit any of the foregoing activities, except that local entities may prohibit possessing, planting, cultivating, harvesting, drying, and processing of marijuana outdoors upon the grounds of a private residence ((Health & Safety Code § 11362.2(b)(3)). K. That on April 18, 2017, the City Council adopted Ordinance No. 1478. The purpose of Ordinance No. 1478 was to amend the Tustin City Code ("TCC") to ensure that it did not prohibit activity and/or uses expressly permitted pursuant to the AUMA. L. That on September 8, 2022, the Governor of the State of California signed SB 1186 (the "Medicinal Cannabis Patients' Right of Access Act") which, effective January 1 , 2024, prohibits local jurisdictions from enforcing any regulations which prohibit or have the effect of prohibiting delivery of medicinal cannabis to medicinal cannabis patients or their primary caregivers. M. That pursuant to the provisions of the TCC, delivery of cannabis, whether medicinal or recreational, is not listed as a "permitted use" in any zoning district in the City; and that such uses and activities are expressly prohibited in all zoning districts within the City. N. That the City Council desires to modify TCC sections 3141 , 3152, 9270, and 9297 to comply with State law. Resolution No. 4481 Page 4 O. That Code Amendment (CA) 2024-0001 is consistent with the goals, objectives, and policies of the General Plan as a whole and is not inconsistent with any element thereof. Further, CA 2024-0001 is necessary in order to ensure that the TCC is not inconsistent with State law. Specifically, this Ordinance is necessary in order to amend the TCC so that it does not prohibit activity and/or uses that are expressly permitted pursuant to the Medicinal Cannabis Patients' Right of Access Act. P. That CA 2024-0001 is not subject to the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Sections 15060 (c) (2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in physical change to the environment, directly or indirectly. Q. That on January 23, 2024, a public hearing was duly noticed, called, and held by the Planning Commission on CA 2024-0001 II. The Planning Commission hereby recommends that the City Council adopt Ordinance No. 1540, amending TCC Sections 3142, 3152, 9270, and 9297 to update the City's Business and Land Use regulations pertaining to Cannabis Businesses. Resolution No. 4481 Page 5 PASSED AND ADOPTED, at a regular meeting of the Planning Commission of the City of Tustin on the 23rd day of January, 2024. STEVE KOZAK Chairperson JUSTINA L. WILLKOM Planning Commission Secretary APPROVED AS TO FORM: MICHAEL DAUDT Assistant City Attorney Resolution No. 4481 Page 6 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) I, Justina L. Willkom, the undersigned, hereby certify that I am the Planning Commission Secretary of the City of Tustin, California; that Resolution No. 4481 was duly passed and adopted at a regular meeting of the Tustin Planning Commission, held on the 23rd, day of January, 2024. PLANNING COMMISSIONER AYES: PLANNING COMMISSIONER NOES: PLANNING COMMISSIONER ABSTAINED: PLANNING COMMISSIONER ABSENT: JUSTINA L. WILLKOM Planning Commission Secretary Exhibit A: Draft Ordinance No. 1540 ATTACHMENT B DRAFT ORDINANCE NO. 1540 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA, AMENDING TUSTIN CITY CODE SECTIONS 3141 , 3152, 9270, AND 9297 TO UPDATE THE CITY'S BUSINESS AND LAND USE REGULATIONS PERTAINING TO CANNABIS BUSINESSES (CODE AMENDMENT 2024-0001) The City Council of the City of Tustin does hereby ordain as follows: SECTION 1 . The City Council finds and determines as follows: A. That in 1996, California voters approved Proposition 215, entitled The Compassionate Use Act ("CUA"), codified in Health and Safety Code Section 11362.5 et seq. The CUA, which was intended to enable seriously ill persons to obtain and use marijuana for medical purposes, exempted qualified patients and their primary caregivers from criminal prosecution under State law for the cultivation, distribution, possession, and use of marijuana under specified circumstances. B. That in 2003, the California Legislature enacted Senate Bill (SB)420, known as the Medical Marijuana Program Act ("MMPA"), codified in Health and Safety Code Section 11362.7 et seq. The MMPA clarified the scope and application of the CUA, better defined the regulatory framework for the cultivation, distribution, possession and use of medical marijuana, and recognized the right of cities to regulate the operation, location, and establishment of medical marijuana dispensaries. C. That on February 6, 2006, the City Council adopted Ordinance No. 1309, an interim urgency ordinance, and found that medical marijuana dispensaries are not permitted uses in any zoning district in the City of Tustin ("City") and expressly prohibited the establishment of any medical marijuana dispensary in the City for forty-five (45) days pending the commencement of appropriate studies and consideration of alternative land use approaches for addressing the health, safety, and welfare issues associated with the regulation of medical marijuana dispensaries in the City. On March 20, 2006, the City Council adopted Ordinance No. 1310, extending Ordinance No. 1309 for an additional ten (10) months and fifteen (15) days. D. That on December 4, 2006, the City Council adopted Ordinance No. 1322. The purpose and intent of Ordinance No. 1322 was to prohibit all illegal uses, including medical marijuana dispensaries, to promote the health, safety, morals and general welfare of the residents and businesses within the City. 1806052.1 Ordinance No. 1540 Page 2 E. That on May 6, 2013, the California Supreme Court in the case of City of Riverside v. Inland Empire Patient's Health and Wellness Center, Inc., 2013 WL 1859214 (Cal.), affirmed the right of municipalities to ban medical marijuana dispensaries, holding that neither the CUA nor the MMPA preempted a zoning ordinance declaring medical marijuana dispensaries a prohibited use of land. F. That on October 9, 2015, Governor Brown signed the "Medical Marijuana Regulation and Safety Act" ("MMRSA"), which was comprised of the State legislative bills known as Assembly Bill (AB) 243, AB 266, and Senate Bill (SB) 643, into law. G. That the MMRSA, effective as of January 1 , 2016, contains provisions that govern the cultivating, processing, transporting, testing, and distribution of medical cannabis to qualified patients. The MMRSA also contains new statutory provisions that: 1 . Expressly provide that the MMRSA does not supersede or limit local authority for local law enforcement activity, enforcement of local ordinances, or enforcement of local permit or licensing requirements regarding marijuana (Business & Professions Code §19315(a)); 2. Expressly provide that the MMRSA does not limit the authority or remedies of a local government under any provision of law regarding marijuana, including but not limited to a local government's right to make and enforce within its limits all police regulations not in conflict with general laws (Business & Professions Code § 19316(c)); and 3. Require a local government that wishes to prevent marijuana delivery activity, as defined in Business & Professions Code section 19300.5(m) of the MMRSA, from operating within the local government's boundaries to enact an ordinance affirmatively banning such delivery activity (Business & Professions Code § 19340(a)). H. That on January 19, 2016, the City Council adopted Ordinance No. 1466. The purpose of Ordinance 1466 was to prohibit marijuana cultivation, processing, delivery, and distribution in all zoning districts within the City. I. That on November 8, 2016, California voters approved Proposition 64—the Control, Regulation, and Tax Adult Use of Marijuana Act (the "Adult Use of Marijuana Act") legalizing certain activities by adults aged 21 years or older pertaining to recreational marijuana including- 1 . Possessing, processing, transporting, purchasing, obtaining, or giving away, to adults aged 21 years or older without compensation 1806052.1 Ordinance No. 1540 Page 3 whatsoever, of recreational marijuana in certain specified amounts (Health & Safety Code §§ 11362.1(a)(1) and (a)(2)); 2. Possessing, planting, cultivating, harvesting, drying, or processing of not more than six (6) living marijuana plants and possessing the marijuana produced by those plants, provided that such activity is conducted within a person's private residence (i.e. house, apartment unit, mobile home or other similar dwelling), or upon the grounds of that private residence (e.g. in an outdoor garden area), are in a locked space, and are not visible by normal unaided vision from a public place (Health & Safety Code §§ 11362.1(a)(3) and 11362.2(a)(2), (a)(3), and (b)(5))-1 and 3. Smoking or ingesting of marijuana and marijuana products (Health & Safety Code § 11362.1(a)(4)). J. That, pursuant to the Adult Use of Marijuana Act (AUMA), local entities may not completely prohibit any of the foregoing activities, except that local entities may prohibit possessing, planting, cultivating, harvesting, drying, and processing of marijuana outdoors upon the grounds of a private residence ((Health & Safety Code § 11362.2(b)(3)). K. That on April 18, 2017, the City Council adopted Ordinance No. 1478. The purpose of Ordinance No. 1478 was to amend the Tustin City Code ("TCC") to ensure that it did not prohibit activity and/or uses expressly permitted pursuant to the Adult Use of Marijuana Act. L. That on September 8, 2022, the Governor of the State of California signed SB 1186 (the "Medicinal Cannabis Patients' Right of Access Act") which, effective January 1 , 2024, prohibits local jurisdictions from enforcing any regulations which prohibit or have the effect of prohibiting delivery of medicinal cannabis to medicinal cannabis patients or their primary caregivers. M. That pursuant to the provisions of the TCC, delivery of cannabis, whether medicinal or recreational, is not listed as a "permitted use" in any zoning district in the City; and that such uses and activities are expressly prohibited in all zoning districts within the City. N. The City Council desires to modify TCC Sections 3141 , 3152, 9270, and 9297 to comply with State law. O. That Code Amendment (CA) 2024-0001 is consistent with the goals, objectives, and policies of the General Plan as a whole and is not inconsistent with any element thereof. Further, CA 2024-0001 is necessary in order to ensure that the TCC is not inconsistent with State law. 1806052.1 Ordinance No. 1540 Page 4 Specifically, this Ordinance is necessary in order to amend the TCC so that it does not prohibit activity and/or uses that are expressly permitted pursuant to the Medicinal Cannabis Patients' Right of Access Act. P. That CA 2024-0001 is not subject to the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Sections 15060 (c) (2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in physical change to the environment, directly or indirectly. Q. That on January 23, 2024, the Planning Commission adopted Resolution No. 4481 , and recommended that the City Council adopt Ordinance No. 1540, approving CA 2024-0001 R. That on , a public hearing was duly noticed, called, and held by the City Council on CA 2024-0001 SECTION 2. The definition for "Marijuana Dispensary" found at Section 3141 of Part 4 of Chapter 1 of Article 3 of the TCC is hereby deleted in its entirety. SECTION 3. Section 3141 (Definitions) of Part 4 of Chapter 1 of Article 3 of the TCC is hereby amended to add a definition for "Cannabis Business" to read as follows (new text underlined): Cannabis Business. Any person, association, business, facility, use, establishment, location, delivery service, cooperative, collective, or provider, whether fixed or mobile, that possesses, cultivates, processes, distributes, makes available or otherwise facilitates the distribution of cannabis (in any form or incorporated into any other product), whether for recreational or medicinal use, to any person, including, but not limited to, a qualified patient, a person with an identification card, or a primary caregiver as those terms are defined in California Health and Safety Code Sections 11362.5 and 11362.7 et seq., as may be amended from time to time. "Cannabis Business" shall not include the following: (1) An individual aged twenty-one (21) years or older who: (a) Possess, processes, transports, purchases, obtains or gives away to adults aped twenty-one (21) years or older without compensation whatsoever, recreational marijuana; or (b) Possesses, plants, cultivates, harvests, dries, or purchases six (6) or fewer living marijuana plants or who possesses the 1806052.1 Ordinance No. 1540 Page 5 marijuana produced by those plants, provided that such activity is conducted within the person's "private residence", as that phrase is defined by California Health and Safety Code Section 11362.2(b)(5), or upon the grounds of that private residence, provided that such activities are conducted within a fully enclosed, locked space, and are not visible by normal unaided vision from a public place. (2) A business entity licensed pursuant to, and acting in compliance with, California Business & Professions Code Section 26000 et seq. and California Code of Regulations Sections 15400 et seq., which engages in the retail sale by delivery of medicinal cannabis to medicinal cannabis patients to a location within the City, provided that the following conditions are met: (a) The method of delivery is in full compliance with the provisions of California Business & Professions Code Section 26090 et seq. and California Code of Regulations Sections 15400 et seq. (as may be amended from time to time); (b) The delivery is made to a building on a residential property with an existing physical address. For purposes of this section, a "residential Property" is limited to the following: any dwelling unit, including single-family, multi-family, and accessory dwelling units, apartment, condominium, duplex, hotel, motel, mobile home, rest home, or townhouse or townhome as those terms are defined by Section 9791 of this Code; (c) The delivery is not made to any of the following, regardless of whether the location is a "residential property" as described in subsection (b) of this section: 1 . Any address located on publicly owned land or any address on land or in a building leased by any public agency, as that phrase is defined by California Government Code Section 65M or 2. Any school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, whether such institution or entity is public or private. 3. Any public or private park. For purposes of this section, "public or private park" shall mean any park operated by the City or any park situated on privately owned property within the City that is generally open for public use and shall include all sidewalks or other public rights-of-way which are located 1806052.1 Ordinance No. 1540 Page 6 immediately adjacent to any public or private park. A park shall be deemed generally open for public use if it is open to any person(s) other than the owner of the privately owned Property upon which the park is situated, including, but not limited to, tenants, quests, or customers. (d) The delivery must originate from an entity licensed pursuant to, and acting in compliance with, California Business & Professions Code Section 26000 et seq. which is not located within the City of Tustin. For purposes of this section the terms "medicinal cannabis" and "medicinal cannabis patients" shall have the same meanings as those terms are defined in California Business & Professions Code Section 26321(b). SECTION 4. Section 3152 of Part 5 of Chapter 1 of Article 3 of the TCC is hereby amended and restated in its entirety to read as follows (new text underlined, deletions in c+riLo+hrni inh): 3152 MARWANA DISPENSARIES CANNABIS BUSINESSES Mariii aRa rIOSI98 ,c Cannabis Businesses as defined�4 by Section 3141 of this Code are expressly prohibited within the City. SECTION 5. Subsection (c) of Section 9270 (Regulations) of Part 7 of Chapter 2 of Article 9 of the TCC is hereby amended to read as follows (new text underlined, deletions in strikethrni irrh): c. Prohibited Uses Any use that is not expressly permitted in a district as a permitted use or as a conditionally permitted use, including a use in a district determined to be similar in character to a particular use allowed in such district as provided in this Code, shall be deemed a prohibited use and such use shall not be allowed in such district. Mariii aRa diSp8Rsarie- Cannabis Businesses as defined �4 by Section 3141 of this Code are expressly prohibited in all zoning districts. SECTION 6. The definition for "Marijuana Dispensary" found at Section 9297 of Part 9 of Chapter 2 of Article 9 of the TCC is hereby deleted in its entirety. SECTION 7. Section 9297 of Part 9 of Chapter 2 of Article 9 of the TCC is hereby amended to add a definition for "Cannabis Business" to read as follows (new text underlined): 1806052.1 Ordinance No. 1540 Page 7 "Cannabis Business" means any person, association, business, facility, use, establishment, location, delivery service, cooperative, collective, or provider, whether fixed or mobile, that possesses, cultivates, processes, distributes, makes available or otherwise facilitates the distribution of cannabis (in any form or incorporated into any other product), whether for recreational or medicinal use, to any person, including, but not limited to, a qualified patient, a person with an identification card, or a primary caregiver as those terms are defined in California Health and Safety Code Sections 11362.5 and 11362.7 et seq., as may be amended from time to time. "Cannabis Business" shall not include the following: (1) An individual aged twenty-one (21) years or older who: (a) Possesses, processes, transports, purchases, obtains or gives away to adults aged twenty-one (21) years or older without compensation whatsoever, recreational marijuana; or (b) Possesses, plants, cultivates, harvests, dries, or purchases six (6) or fewer living marijuana plants or who possesses the marijuana produced by those plants, provided that such activity is conducted within the person's "private residence", as that phrase is defined by California Health and Safety Code Section 11362.2(b)(5), or upon the grounds of that private residence, provided that such activities are conducted within a fully enclosed, locked space, and are not visible by normal unaided vision from a public place. (2) A business entity licensed pursuant to, and acting in compliance with, California Business & Professions Code Section 26000 et seq. and California Code of Regulations Sections 15400 et seq., which engages in the retail sale by delivery of medicinal cannabis to medicinal cannabis patients to a location within the City, provided that the following conditions are met: (a) The method of delivery is in full compliance with the provisions of California Business & Professions Code Section 26090 et seq. and California Code of Regulations Sections 15400 et seq. (as may be amended from time to time); 1806052.1 Ordinance No. 1540 Page 8 (b) The delivery is made to a building on a residential property with an existing physical address. For purposes of this section, a "residential property" is limited to the following: any dwelling unit, including single-family, multi-family, and accessory dwelling units, apartment, condominium, duplex, hotel, motel, mobile home, rest home, or townhouse or townhome as those terms are defined by Section 9791 of this Code; (c) The delivery is not made to any of the following, regardless of whether the location is a "residential property" as described in subsection (b) of this section: 1 . Any address located on publicly owned land or any address on land or in a building leased by any public agency, as that phrase is defined by California Government Code Section 65M or 2. Any school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center, whether such institution or entity is public or private. 3. Any public or private park. For purposes of this section, "public or private park" shall mean any park operated by the City or any park situated on privately owned property within the City that is generally open for public use and shall include all sidewalks or other public rights-of-way which are located immediately adjacent to any public or private park. A park shall be deemed generally open for public use if it is open to any person(s) other than the owner of the privately owned Property upon which the park is situated, including, but not limited to, tenants, quests, or customers. (d) The delivery must originate from an entity licensed pursuant to, and acting in compliance with, California Business & Professions Code Section 26000 et seq. which is not located within the City of Tustin. For purposes of this section the terms "medicinal cannabis" and "medicinal cannabis patients" shall have the same meanings as those terms are defined in California Business & Professions Code Section 26321(b). 1806052.1 Ordinance No. 1540 Page 9 SECTION 8. Effective Date. This Ordinance shall take effect on the 31 st day after its adoption. The City Clerk or his or her duly appointed deputy shall certify to adoption of the Ordinance and cause this Ordinance to be published as required by law. SECTION 9. CEQA Exemption. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to California Code of Regulations, Title 14, Chapter 3, Sections 15060 (c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 10. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held out to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Tustin hereby declares that it would have adopted this Ordinance and each section, subsection, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin on this day of , 2024. AUSTIN LUMBARD, MAYOR ATTEST: ERICA N. YASUDA, CITY CLERK 1806052.1 Ordinance No. 1540 Page 10 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF TUSTIN ) CERTIFICATION FOR ORDINANCE NO. 1540 Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, does hereby certify that the whole number of the members of the City Council of the City of Tustin is five; that the above and foregoing Ordinance No. 1540 was duly passed, and adopted at a regular meeting of the Tustin City Council held on the _ day of , 2024, by the following vote: COUNCILPERSONS AYES: COUNCILPERSONS NOES: COUNCILPERSONS ABSTAINED: COUNCILPERSONS ABSENT: Erica N. Yasuda, City Clerk Published: 1806052.1