ORDINANCE NO. CCO-17-07

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MT. SHASTA, CALIFORNIA

AMENDING THE MUNICIPAL CODE TITLE 18 (ZONING) FOR THE CULTIVATION, DISTRIBUTION, RETAIL, MANUFACTURING, NURSERY, TESTING, AND TRANSPORT OF COMMERCIAL CANNABIS WITHIN THE CITY OF MOUNT SHASTA

WHEREAS, in 1996, the California electorate approved Proposition 215, the Compassionate Use Act of 1996, which allows a patient, with a doctor’s recommendation, to use cannabis for medical purposes without fear of prosecution or arrest; and

WHEREAS, in 2003, the California legislature passed Senate Bill 420 (Medical Marijuana Program Act) which amended the Health and Safety Code to permit the establishment of medical cannabis dispensaries for the distribution of cannabis for medical purposes; and

WHEREAS, in 2005 the California Board of Equalization began issuing seller’s permits for sales consisting only of medical cannabis; and

WHEREAS, in 2008 the California Attorney General issued guidelines for the security and non-diversion of cannabis grown for medical use; and

WHEREAS, the City of Mt. Shasta in 2010 passed CCO-10-04 “Medical Marijuana Dispensaries” which permit’s medical cannabis dispensaries in the City of Mt. Shasta to regulate the distribution and standards of medical cannabis ; and

WHEREAS, on October 11, 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation and Safety Act further amended on June 27, 2016 as the Medical Cannabis Regulation and Safety Act, which established regulations and a state licensing system for medical cannabis cultivation, manufacturing, delivery and dispensing; and

WHEREAS, the voters of the State of California approved and passed Proposition 64 also known as the Adult Use of Marijuana Act; and

WHEREAS, Health and Safety Code Section 1136.83 provides that cities are free to adopt and enforce local ordinances that regulate the location, operation, or establishment of cannabis dispensaries and cultivation; and

WHEREAS, although the Appellate Court determined the issuance of permits was preempted by federal law, the Court did not conclude whether the sections of the ordinance establishing limitations and prohibiting certain conduct were preempted by federal law (e.g., limiting hours of operation, prohibiting a person under the age of 18 from being on premises unless that person is a qualified patient accompanied by his/her physician, parent, or guardian; prohibiting the use from permitting the consumption of alcohol on the property or in its parking are, etc.); and

WHERAS, the City would retain the authority to determine the existence of a public nuisance for any issues that may arise with a cannabis business facility and could act pursuant to Chapter 6.08; and

WHEREAS, after holding a public hearing, and reviewing the legal status of cannabis under applicable law, the City Council finds that the regulation of cannabis with respect to commercial, medical, and recreational uses in dispensaries, distribution, indoor and mixed light cultivation and nursery facilities, manufacturing facilities, testing facilities, and transportation facilities is necessary to protect the public health, safety, and welfare by mitigating the adverse secondary effects from the operations of these uses on other land uses within the City; and

WHEREAS, the City of Mt. Shasta has a compelling interest in ensuring that cannabis is not distributed in an illicit manner, in protecting the public health, safety, and welfare of it residents, visitors, and business owners, in preserving the peace and quiet of the neighborhoods in which these uses may operate, and in providing access to cannabis to its residents; and

WHEREAS, the proposed Ordinance has been reviewed by City Staff in accordance with the California Environmental Quality Act (CEQA) to determine if there would be any possibility that the proposed ordinance would create any significant environmental impacts, and City Staff has determined that the establishment of regulations for indoor and mixed light cannabis cultivation, dispensing, distribution, manufacturing, testing, and transportation businesses does not meet any of the thresholds that would trigger a significant environmental impact, and thus according to the “general rule exemption” (Section 15061(b)(3)) of the CEQA Guidelines, projects which have no potential for causing a significant effect on the environment are not subject to CEQA, no further environmental analysis is required for this ordinance; and

NOW, THEREFORE, the City Council of the City of Mt. Shasta does ordain as follows:

SECTION 1: Adopts Text Amendment CCO-17-07 amending Title 18 of the City of Mt. Shasta Municipal Code by adding Chapter 18.91 entitled “Cannabis Industry Land Use” to read as follows:

Chapter 18.91 Cannabis Industry Land Use

 18.91.010 Purpose

 18.91.020 Intent

 18.91.030 Land Use Table

 18.91.040 Definitions

 18.91.050 Personal Garden Tag

 18.91.060 Development Standards

 18.91.070 Permits

18.91.010 Purpose

The purpose of this Chapter is to define where cannabis industry as a land use can be located within the identified zoning districts as called out in the Land Use Table in Section 18.91.030. For zoning districts not called out in the table it shall be presumed that the industry is expressly prohibited within that zoning district.

18.91.020 Intent

The intent of this section shall be to insure that cannabis industry facilities are operated in such a manner as to insure the public health and safety of the residents and businesses of the City of Mt. Shasta.

18.91.030 Land Use Table

A. The Land Use Table shall be used to determine whether a cannabis industry is permitted (P), not permitted (NP), and permitted with a Conditional Use Permit (CP). If a Zoning District in Title 18 is not listed in the Land Use Table in this section then the use is prohibited, unless specifically addressed in a Specific Plan, Downtown Enhancement District, or special district regulation.  

Zoning Code Zoning Definition

R1-U Low Density Residential - Urban

R1-B1 Low Density Residential - 10, Sq Ft Minimum

R1 Low Density Residential

R2 Medium Density Residential

C1 Downtown Commercial

C2 General Commercial

EC Employment Center

PD Planned Development

18.91.040 Definitions

The definitions listed here are applicable throughout the Municipal Code where cannabis is referenced. All definitions are intended to comply with those in the City of Mt. Shasta Municipal Code, State regulations, Business and Professions Code, and in the State of California Health and Safety Code, and as they may be amended.

A. Accessory Structure means a detached building subordinate to and located on the same parcel as a residence, the use of which is incidental to that of the residence. Accessory structure does not include a tent, trailer, recreational vehicle, or other vehicle, or any building designed or used for habitation.

B. Address of Record the permanent address of an individual or organization.

C. Applicant shall mean a person who is required to file an application for a permit or license under this municipal code chapter.

D. Batch or Harvest Batch means a specifically identified quantity of dried flower or trim, leaves, and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if applicable, cultivated using State approved pesticides and other agricultural chemicals.

E. Bureau means the Bureau of Cannabis Control, previously named the Bureau of Medical Cannabis Regulation and Bureau of Medical Marijuana Regulation.

F. Cannabis means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. For the purposes of this Section the terms Cannabis and Marijuana shall have the same meaning.

G. Cannabis Dispensary means a premise where cannabis, cannabis products, or devices for the use of non-medical cannabis or medical cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers, pursuant to relevant California state regulations, cannabis and cannabis products as part of a retail sale. For the purpose of this Section the terms Cannabis Dispensary and Cannabis Retail Facility shall have the same meaning.

H. Cannabis Manufacturing Site means the premises that produces, prepares, propagates, or compounds manufactured cannabis or cannabis products, directly or indirectly, by non-volatile extraction methods, and is owned and operated by a licensee for these activities.

I. Cannabis Testing Facility means a public or private laboratory licensed and certified, or approved by the Bureau of Cannabis Regulation or any other regulatory body controlling testing facilities, to conduct research and analyze cannabis, cannabis products, and cannabis concentrate for contaminants and potency.

J. Cannabis Waste means waste that is not hazardous waste, as defined in Public Resource Code section 40191, that contains cannabis and that has been made unusable and unrecognizable in the manner prescribed in state regulation.

K. Canopy means the following:

The designated area(s) at a licensed premises that will contain mature plants at any point in time;

Canopy shall be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain mature plants at any point in time, including all of the space(s) within the boundaries;

Canopy may be noncontiguous but each unique area included in the total canopy calculation shall be separated by an identifiable boundary such as an interior wall or by at least 10 feet of open space;

If mature plants are being cultivated using a shelving system, the surface area of each level shall be included in the total canopy calculation.

L. Cannabis Industry includes cultivation, possession, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis, medical cannabis or a cannabis or medical cannabis product.

M. Commercial Vehicle means a vehicle as defined in Vehicle Code section 260.

N. Comingling means the physical aggregation of harvest batches or nonmanufactured cannabis products by a licensee.

O. Cultivation and/or Cultivate shall mean an activity involving the planting, growing, harvesting, drying, processing, or storage of one or more cannabis plants or any part thereof.

P. Cultivation Site means a location where commercial cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities.

Q. Delivery means the commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use by a retailer of any technology platform owned and controlled by the retailer, or independently licensed, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products.

R. Delivery Employee means an individual employed by a licensed dispensary who delivers medical cannabis goods from the licensed dispensary premises to a medical cannabis patient or primary caregiver at a physical address.

S. Distribution means the procurement, sale, and transport of cannabis and cannabis products between licensed entities.

T. Distributor means a person licensed to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis products from a licensed manufacturer, for sale to a licensed dispensary and as defined by California State Law.

U. Dried Flower means all dead cannabis that has been harvested, dried, cured or otherwise processed, excluding leaves and stems.

V. Employee shall mean any person (whether paid or unpaid) who provides regular labor or regular services for a cannabis business, including but not limited to the location of a cannabis dispensary business.

W. Flowering means that a cannabis plant has formed a mass of pistils measuring greater than one half inch wide at its widest point.

X. Free Sample means any amount of cannabis goods provided to an individual, medical cannabis patient, or primary caregiver without cost or payment or exchange of any other thing of value.

Y. Immature Plant means a cannabis planting not flowering.

Z. Indoor Cultivation Facility shall mean a facility which is licensed by the City of Mt. Shasta and the State of California for the growing of cannabis within an enclosed structure using artificial light, at a rate greater than 25 watts per square foot, and for the purposes of wholesale of cannabis to cannabis manufacturing facilities or cannabis dispensaries.

 AA. Leaves the leafy part of the cannabis plant which contains no flowers. Can also be referred to as “Duff”.

 AB. Licensee means a person issued a state and local license to engage in commercial cannabis activities.

 AC. Lot means a batch, or a specifically identified portion of a batch.

 AD. Manager shall mean an employee responsible for management and/or supervision of a cannabis dispensary business.

 AE. Mature Plant means a cannabis plant that is flowering, see “Flowering” above.

 AF. Mixed Light Cultivation Facility cultivation using a combination of natural and supplemental artificial lighting, below a rate of 25 watts per square foot, in a permanent facility.

 AG. Nonmanufactured Cannabis Product means dried flower, shake, leaf, and pre-rolls intended to be sold for use by cannabis users.

 AH. Nonvolatile Manufacturing means any solvent used in the extraction process that is not a volatile solvent. A nonvolatile solvent includes carbon dioxide used for extraction.

 AI. Nursery means a commercial cannabis licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis.

 AJ. Outdoor Cultivation Facility shall mean a facility which is licensed by the City of Mt. Shasta and the State of California for the growing of cannabis without the use of light deprivation and/or artificial lighting in the canopy area. Supplemental low intensity lighting is permissible only to maintain immature plants as a source for propagation and for the purposes of wholesale of cannabis to cannabis manufacturing facilities or cannabis dispensaries and shall have the same meaning as defined by California State Law.

 AK. Primary Caregiver shall have the same meaning as set forth in the California Health and Safety Code section 11362.7(f).

 AL. Pre-roll means only dried flower rolled in paper prior to retail sale.

 AM. Propagate means to cultivate immature plants from cuttings or seeds.

 AN. Publicly Owned Land means any building or real property that is owned by a city, county, state, federal, or other government entity.

 AO. Residential Area an area that is within 600 feet of any single-family or multifamily residence, other than commercial hotels, motels, and similar establishments.

 AP. Qualified Patient shall have the same meaning as set forth in the California Health and Safety Code section 11362.7(f).

 AQ. School Means any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes.

 AR. Security Monitoring means the continuous and uninterrupted attention to potential alarm signals that can be transmitted from a security alarm system for the purpose of summoning law enforcement.

 AS. Sell, Sale, and to Sell include any transaction whereby, for any consideration, title to cannabis is transferred from one person to another, and includes the delivery of medical cannabis goods pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis goods by a licensee to the licensee from whom such cannabis goods were purchased.

 AT. Stems Highly fibrous material of the cannabis plant in which stabilizes the plant and allows leaves and buds to grow.

 AU. Strain means a hybrid or variety of cannabis with similar or identical combinations of properties such as appearance, taste, color, smell, cannabinoid profile, and potency.

 AV. Transporter means a person who holds a license by the Bureau of Cannabis Regulation to transport medical cannabis or medical cannabis products in an amount above a threshold determined by the bureau between licensees that have been issued a license pursuant to this chapter.

 AW. Trim the leftover cannabis leaf material after the act of trimming that can be used for cooking or extraction.

 AX. Volatile Solvent means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include but are not limited to, butane, hexane, propane, and ethanol.

 AY. Wholesale means the sale of cannabis goods to a distributor for resale to one or more dispensaries

18.91.050 Personal Garden Tags

A. All personal gardens allowed in Section 18.91.030 are required to obtain a Personal Garden Tag with the City of Mt. Shasta.

B. All personal gardens must be located out of public view and meet the following setbacks:

 1. Rear: 10 feet.

 2. Side: 5 feet on each side.

 3. Front: Personal Gardens prohibited in front of buildings and in public view.

C. Personal garden tag applicants can request a setback exemption written petition to the Planning Department.

D. Personal garden tag setback exemption can be granted if the following findings can be made:

 1. The proposed garden would not have an adverse effect of the neighboring properties.

 2. The petitioner can show that an exemption is needed due to circumstance beyond their control.

E. Denied personal garden tag setback exemptions can appeal the Planning Department’s decision as per Chapter 18.32 of the Mt. Shasta Municipal Code.

F. The setbacks for gardens will be measured from the property line to the canopy of the garden.

G. All Personal Garden Tag holders must follow Planning Department policies and standards at all times. Violations of policies and standards may be penalized as per 18.91.080.

18.91.060 Development Standards

Commercial cannabis retail and industry facilities shall meet all of the standards for the Zoning District in which they are allowed and located. They shall meet the other development requirements as referenced in that zoning district and found elsewhere in the Municipal Code.

18.91.070 Permits

All commercial cannabis industry facilities and businesses allowed as shown in 18.91.020 are required to obtain a Business License as required by Title 5 – Business Regulations and a Regulatory License as required by Chapter 5.70 – Cannabis Retail Licenses and Standards and Chapter 5.80 – Commercial Cannabis Licenses and Standards.

18.91.080 Penalties and Enforcement

A. Violation of this chapter shall constitute an infraction, and shall be punished in the manner as specified, at the time of violation, in Cal. Gov’t Code § 36900, or any successor statute which specifies the penalties of infractions.

B. Except as otherwise provided, enforcement of this chapter is at the sole discretion of the city. Nothing in this chapter shall create a right of action in any person against the city or its agents to compel public enforcement of this chapter against private parties.

C. Nothing herein shall prevent a person who violates this chapter from, in the alternative, being charged with and convicted of a misdemeanor or felony under any other applicable provision of the California Penal Code or other local, County, State, or Federal law or regulation.

D. Additionally, as a nuisance per se, any violation of this article shall be subject to injunctive relief, revocation of the business’s Cannabis Retail and/or Industry License, revocation of a Personal Garden Tag, disgorgement, and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any other relief or remedy available at law or equity. The City may also pursue any and all remedies and actions available and applicable under local and state laws for any violations committed by the cannabis business and persons related or associated with the cannabis business.

SECTION 2: Severability

If any provision of this ordinance or the applications thereof to any person or circumstances is held invalid, the remainder of the ordinance and the applications of such provision will remain in effect to the extent permitted by law.

SECTION 3: Effective Date

This ordinance shall be effective thirty (30) days following its second reading and posting as provided for by Government Code.

I HEREBY CERTIFY that the foregoing Ordinance was introduced and read at a regular meeting of the City Council of the City of Mt. Shasta held on the 9th day of October and was passed upon second reading at a regular meeting of the City Council of the City of Mt. Shasta held on the 23rd day of October, 2017.

PASSED, APPROVED, AND ADOPTED this 23rd day of October, 2017 by the following vote:

AYES: Engstrom, Stearns, Wagner, Morter

NOES: Stackfleth

ABSENT: None

ABSTAIN: None

Kathy Morter, Mayor

ATTEST:

Kathryn M. Wilson, Deputy City Clerk

APPROVED AS TO FORM:

John Sullivan Kenny, City Attorney

7957 msan no1c