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ORDINANCE 1577 ORDINANCE NO. 1577 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AMENDING TITLE 15, CHAPTER 13B OF THE EL SEGUNDO MUNICIPAL CODE PROHIBITING CANNABIS-RELATED USES AND ACTIVITIES IN ALL ZONES AND SPECIFIC PLAN AREAS OF THE CITY The City Council of the City of EI Segundo does ordain as follows: SECTION 1: The City Council finds and determines as follows: A. On November 5, 1996, the voters of the State of California approved Proposition 215, codified as Health and Safety Code Section 11362.5 et seq., and entitled the Compassionate Use Act of 1996 ("CUA"). The CUA exempted qualified patients and their primary caregivers from criminal liability under state law for the possession and cultivation of marijuana for personal medical use. B. The intent of the CUA was to enable persons in the State of California who are in need of marijuana for medicinal purposes to obtain it and use it under limited, specified circumstances. C. The State enacted Senate Bill 420 in October 2003, codified at Health and Safety Section 11362.7, et seq., ("Medical Marijuana Program Act," or "MMPA") to clarify the scope of the Compassionate Use Act of 1996 and to allow cities and other governing bodies to adopt and enforce rules and regulations consistent with SB 420. The MMPA created a state-approved voluntary medical marijuana identification card program and provided for certain additional immunities from state marijuana laws. Assembly Bill 2650 (2010) and Assembly Bill 1300 (2011) amended the Medical Marijuana Program to expressly recognize the authority of counties and cities to "[a]dopt local ordinances that regulate the location, operation, or establishment of a medical marijuana cooperative or collective" and to civilly and criminally enforce such ordinances. D. The CUA and MMPA did not "legalize" marijuana, but provided limited defenses to certain categories of individuals with respect to certain conduct and certain state criminal offenses. E. In City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 CalAth 729, the California Supreme Court held that "[n]othing in the CUA or the MMP expressly or impliedly limits the inherent authority of a local jurisdiction, by its own ordinances, to regulate the use of its land. . . ." Additionally, in Maral v. City of Live Oak (2013) 221 Cal.AppAth 975, the Court of Appeal held that "there is no right — and certainly no constitutional right—to cultivate medical marijuana. . . . ." The Court in Maral affirmed the ability of a local governmental entity to prohibit the cultivation of marijuana under its land use authority. ORDINANCE No. 1577 Page 1 of 10 F. The Federal Controlled Substances Act, 21 U.S.C. § 801 of seq., classifies marijuana as a Schedule 1 Drug, which is defined as a drug or other substance that has a high potential for abuse, that has no currently accepted medical use in treatment in the United State, and that has not been accepted as safe for use under medical supervision. The Federal Controlled Substances Act makes it unlawful under federal law for any person to cultivate, manufacture, distribute or dispense, or possess with intent to manufacture, distribute or dispense, marijuana. The Federal Controlled Substances Act contains no exemption for medical purposes. G. On October 9, 2015 Governor Brown signed three bills into law (AB 266, AB 243, and SB 643) which collectively are known as the Medical Marijuana Regulation and Safety Act ("MMRSA"). MMRSA established a State licensing scheme for commercial medical marijuana uses while protecting local control by requiring that all such businesses must have a local license or permit to operate in addition to a State license. MMRSA allowed a City to completely prohibit commercial medical marijuana activities. H. On March 1, 2016, the City Council adopted Ordinance No. 1518, adding Chapter 11 to Title 7 and Chapter 13B to Title 15 of the EI Segundo Municipal Code to clarify that commercial cannabis activities, cultivation of medical cannabis, delivery of medical cannabis, medical marijuana dispensaries, and medical marijuana collectives are prohibited in all zones and specific plan areas of the city. I. On November 8, 2016, the voters of the State of California passed Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act ("AUMA"). The AUMA decriminalizes (under California law), controls and regulates the cultivation, processing, manufacture, distribution, testing and sale of nonmedical marijuana, including marijuana products, for use by adults 21 years of age or older. The AUMA also taxes the commercial growth and retail sale of marijuana. It does not, and cannot, affect federal regulations regarding marijuana or its derivatives. J. On November 15, 2016, the City Council adopted Ordinance No.1543, a forty-five-day interim zoning ordinance prohibiting the issuance of any permit for marijuana-related land uses in any zone throughout the City. K. On December 6, 2016, the City Council adopted Ordinance No. 1544, adding Chapter 14 to Title 4 and amending Chapter 11 of Title 7 of the Municipal Code to expressly prohibit all commercial marijuana activity to the extent allowed by state law. L. On December 20, 2016, the City Council adopted Ordinance No. 1545 extending the moratorium for an additional period of ten months and fifteen days. M. On November 7, 2017, the City Council adopted Ordinance No. 1561 extending the moratorium for an additional year. ORDINANCE No. 1577 Page 2 of 10 N. The AUMA made it "lawful under state and local law" for persons 21 years of age or older to: "(1) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of marijuana not in the form of concentrated cannabis; (2) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of marijuana in the form of concentrated cannabis, including as contained in marijuana products; (3) Possess, plant, cultivate, harvest, dry, or process not more than six living marijuana plants and possess the marijuana produced by the plants; (4) Smoke or ingest marijuana or marijuana products; and (5) Possess, transport, purchase, obtain, use, manufacture, or give away marijuana accessories to persons 21 years of age or older without any compensation whatsoever." (Health & Safety Code § 11362.1.) O. The AUMA added Division 10 to the Business & Professions Code, which grants state agencies the exclusive authority to create, issue, renew, discipline, suspend or revoke licenses for marijuana-related businesses, including the transportation, storage, distribution sale, cultivation, manufacturing, and testing of marijuana. P. The AUMA expressly preserves local control over the regulation of cannabis-related businesses and cannabis-related land uses, including the authority to completely prohibit any cannabis business licensed under Division 10 within its jurisdiction. (Business & Professions Code § 26200, et seq.) Q. Under the AUMA, no city may completely prohibit persons 21 years of age or older from planting, cultivating, harvesting, drying, or processing up to six cannabis plants at any one time inside a private residence or inside an accessory structure to a private residence located upon the grounds of a private residence that is fully enclosed and secure. (Health & Safety Code § 11362.2(b)(2).) However, a city may enact and enforce reasonable regulations on indoor cultivation and may completely prohibit the outdoor cultivation of cannabis. (Health & Safety Code § 11362.2(b)(1) and (3).) R. On June 27, 2017, the Governor signed Senate Bill (SB) 94, which took effect immediately. SB 94 merges existing state laws regarding medicinal and recreational (adult use) marijuana by repealing the Medical Cannabis Regulation and Safety Act (MCRSA) and including certain MCRSA provisions within the licensing provisions of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA). The consolidated provisions are now known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). S. MAUCRSA expressly preserves the authority of a local jurisdiction to adopt and enforce local ordinances to regulate cannabis (marijuana) businesses licensed by the state, including, without limitation, local zoning and land use requirements, business ORDINANCE No. 1577 Page 3 of 10 license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of cannabis businesses within the local jurisdiction. T. Since the adoption of Ordinance No. 1543, City planning staff, working in conjunction with the City Attorney and local law enforcement, has reviewed and considered the following: (1) federal and state laws pertaining to cannabis; (2) information and data from jurisdictions in other states that have previously decriminalized recreational cannabis, including documented evidence regarding the secondary impacts associated with legalization and the proliferation of cannabis-related uses and activities; (3) ordinances of other California cities that either prohibit or regulate cannabis-related uses; (4) opinions and bulletins from law enforcement agencies in California and in other states regarding impacts associated with cannabis-related uses and activities; and (5) information regarding the effects of cannabis use. U. On September 27, 2018, the Planning Commission held a duly noticed public hearing and considered Resolution No. 2851. The Commission directed staff to make modifications to the resolution and bring the matter back for further consideration at the Commission's October 11, 2018 regular meeting. On October 11, 2018, the Planning Commission adopted Resolution No. 2851 recommending that the City Council approve Zone Text Amendment No. ZTA 17-07 to clarify and update the existing prohibition on cannabis-related uses in activities in all zones and specific plan areas throughout the City. V. On November 6, 2018, the City Council held a duly noticed public hearing on in order to receive and consider public testimony on the subject of this Ordinance. W. The City Council finds that cannabis-related land uses and activities can adversely affect the health, safety, and well-being of City residents. Cannabis cultivation and distribution can attract crime, lead to fires, expose minors to cannabis, negatively impact neighborhoods, damage buildings, require dangerous electrical alterations and use, and create the nuisance of strong and noxious odors. (White Paper on Marijuana Dispensaries, California Police Chiefs Association's Task Force on Marijuana Dispensaries, April 22, 2009, p. 12.) In Colorado, where recreational marijuana is legal and commercialized, marijuana-related traffic deaths increased 92% from 2010 to 2014 while all traffic deaths increased only 8 percent during the same time period. (The Legalization of Marijuana in Colorado. The Impact, Rocky Mountain High Intensity Drug Trafficking Area, Vol. 3, September 2015, pp. 14-15.) Use of marijuana by Colorado teens ages 12-17 is at least 56% higher than the national average. (Id. at pp. 35-36.) A study released in May 2016 by AAA Foundation for Traffic Research found that fatal crashes involving drivers who recently used marijuana doubled in the state of Washington after it legalized marijuana. (Prevalence of Marijuana Involvement in Fatal Crashes.- Washington, rashes.Washington, 2010-2014, May 2016, AAA Foundation for Traffic Safety.) Based on these facts and other evidence, there is a concern that the proliferation of cannabis-related uses and activities in the City would result in increased crime and other negative secondary effects like those experienced in other communities throughout California and around the ORDINANCE No. 1577 Page 4 of 10 country. To safeguard against these deleterious secondary effects, the City Council finds it is necessary to maintain the prohibition on cannabis-related uses and activities in all zones and specific plan areas to the maximum extent permissible under State law. X. Although cannabis-related land uses and activities are already prohibited in all areas of the City pursuant to the Municipal Code, the proposed ordinance would update the existing prohibitions to account for changes in the law made by the AUMA and MAUCRSA. SECTION 2: General Plan Consistency. Based upon oral and written testimony and other evidence received at the public hearing held for this item, and upon studies and investigations made by staff on behalf of the City Council, the City Council finds that the proposed Ordinance is consistent with the goals, policies, and objectives of the General Plan. The General Plan sets as a goal a high quality of life for all residents. The General Plan does not permit or contemplate the establishment or operation of cannabis-related land uses anywhere in the City. The Land Use Element of the General Plan is implemented through the City's Zoning Code. The EI Segundo Zoning Code is "permissive" in nature, meaning uses that are not expressly authorized by the Code are prohibited. Cannabis-related uses have never been allowed anywhere in the City and are expressly prohibited. Although this is the current state of the law, the proposed amendments to the Zoning Code are intended to update the City's existing prohibitions to account for changes in the law made by the AUMA and MAUCRSA. By prohibiting cannabis-related uses, the City is preventing the negative secondary effects and other adverse impacts associated with such uses. The City Council further finds that the proposed Zoning Code Amendment will not adversely affect surrounding properties. The Amendment is a City-wide Zoning Code Amendment that prohibits cannabis-related uses and activities to the maximum extent allowed under State law. The prohibition prevents the negative secondary effects associated with such uses, enhances the health, safety, and welfare of the community, and will not adversely affect surrounding properties. SECTION 3: Zone TextAmendment Findings. In accordance with ESMC Chapter 15-26 (Amendments), the proposed ordinance is consistent with and necessary to carry out the purpose of the ESMC as follows: The ordinance is necessary and consistent with the purpose of the ESMC, which is to serve the public health, safety, and general welfare and to provide the economic and social advantages resulting from an orderly planned use of land resources. The ordinance is intended to clarify that all cannabis-related uses and activities are prohibited to the maximum extent allowed under State law. The prohibition prevents the negative secondary effects associated with such uses, enhances the health, safety, and welfare of the community, and will not adversely affect surrounding properties. SECTION 4: Authority. This ordinance is adopted pursuant to the authority granted by the California Constitution and State law, including, but not limited to, Article XI, Section 7 of the California Constitution, the Compassionate Use Act, the Medical Marijuana Program Act, the Medical Marijuana Regulation and Safety Act, and the Control, Regulate ORDINANCE No. 1577 Page 5 of 10 and Tax Adult Use of Marijuana Act, and the Medicinal and Adult-Use Cannabis Regulation and Safety Act. SECTION 5: Section 1-6 of Title 15 of the EI Segundo Municipal Code is amended to add the following definitions: CANNABIS: 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, including cannabis infused in foodstuff or any other ingestible or consumable product containing cannabis. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. The term "cannabis" includes "medical cannabis" for the purposes set forth in the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code. "Cannabis" 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. "Cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the Health and Safety Code. CANNABIS ACCESSORIES: any equipment, products or materials of any kind which are used or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, smoking, or vaporizing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. CANNABIS CULTIVATION: any activity involving the planting, growing, cultivating, harvesting, drying, curing, grading, trimming or processing of cannabis. CANNABIS CULTIVATION FACILITY: a facility where cannabis is cultivated, prepared, and packaged for sale to cannabis dispensaries, to cannabis product manufacturing facilities, or to other cannabis cultivation facilities, but not to consumers. CANNABIS DELIVERY: 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 under this division, that enables customers to arrange for or facilitate the commercial transfer by a licensed retailer of cannabis or cannabis products. CANNABIS DISPENSARY: a facility or location, whether fixed or mobile, where cannabis, cannabis products, or devices for the use of cannabis are offered, made available to, or provided, either individually or in any combination, with or without remuneration, for medical, recreational, or other purposes. ORDINANCE No. 1577 Page 6 of 10 CANNABIS DISTRIBUTION: the procurement, sale, and transport of cannabis and cannabis products between state-licensed entities for commercial use purposes. CANNABIS ESTABLISHMENT: a cannabis cultivation facility, a cannabis testing facility, a cannabis product manufacturing facility, or a cannabis dispensary. CANNABIS MANUFACTURE: to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. CANNABIS PRODUCT MANUFACTURING FACILITY: a facility where cannabis and cannabis products are manufactured, prepared and packaged for sale to other cannabis product manufacturing facilities or to cannabis dispensaries, but not to consumers. CANNABIS PRODUCTS: cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. CANNABIS-RELATED ACTIVITY: any commercial cannabis activity, cultivation of cannabis, delivery of cannabis or cannabis products, distribution of cannabis or cannabis products, dispensing of cannabis or cannabis products, manufacture of cannabis or cannabis products, sale of cannabis or cannabis products, and the operation or establishment of a cannabis or medical cannabis cooperative, dispensary, delivery service, or provider. "Cannabis-related activity" does not include the cultivation, planting, harvesting, drying, processing or possession of up to six cannabis plants at one time by persons 21 years of age or older when conducted within a single private residence and in a manner consistent with Health & Safety Code Section 11362.2 and any other applicable regulations. CANNABIS STORAGE FACILITY: a facility used for the storage of cannabis, cannabis products or cannabis accessories. CANNABIS TESTING FACILITY: a facility where cannabis is analyzed and certified for safety and potency. COMMERCIAL CANNABIS ACTIVITY: the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products. PRIVATE RESIDENCE: a house, an apartment unit, a mobile home, or other similar habitable dwelling. SECTION 6: Chapter 13B of Title 15 of the EI Segundo Municipal Code is deleted in its entirety and replaced as follows: ORDINANCE No. 1577 Page 7 of 10 Chapter 13B CANNABIS-RELATED USES AND ACTIVITIES 15-1313-1: Definitions. 15-1313-2: Prohibited uses and activities. 15-1313-3: Cultivation of cannabis for personal use. 15-1313-4: Interpretation. 15-1313-1: Definitions The definition of "cannabis" and related terms for the purpose of this Chapter are contained in Section 1-6 (Definitions) of this Title. 15-1313-2: Prohibited uses and activities. The establishment or operation of any commercial cannabis activity, cannabis-related activity, cannabis storage facility, or cannabis establishment, including any business licensed by the state or other government entity pursuant to Division 10 of the Business & Professions Code, as it may be amended from time to time, is prohibited in all zoning districts and specific plan areas of the City. No use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, can be approved or issued for the establishment or operation of any such business or activity. ORDINANCE No. 1577 Page 8 of 10 15-1313-3: Cultivation of cannabis for personal use. A. Outdoor Cultivation. The outdoor cultivation of cannabis is prohibited in the City of EI Segundo regardless of purpose. B. Indoor Cultivation. Not more than six plants may be cultivated, planted, harvested, dried, processed or possessed at one time by persons 21 years of age or older when conducted within a single private residence and in a manner consistent with Health & Safety Code Section 11362.2 and any other applicable regulations. 15-1313-4: Interpretation. The intent of this chapter is to prohibit all cannabis-related uses and activities, including the personal cultivation of cannabis, whether medical or recreational in nature, to the maximum extent allowed under state law. Nothing in this chapter should be interpreted as allowing behavior otherwise prohibited by state law and nothing in this chapter should be interpreted as prohibiting conduct that the city is expressly preempted from prohibiting under state law. SECTION 7: Environmental Review. The City Council finds that this ordinance does not have the potential to cause significant effects on the environment and, therefore, the project is exempt from the California Environmental Quality Act (CEQA) pursuant to 14 Cal. Code Regs. § 15061(b)(3). The ordinance amends the EI Segundo Municipal Code to clarify the existing prohibitions on cannabis-related land uses and activities. The ordinance does not portend any development or changes to the physical environment. Following an evaluation of possible adverse impacts, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. In addition to the foregoing general exemption, the following categorical exemption applies: 14 Cal. Code Regs. § 15308 (actions taken for the protection of the environment). SECTION 8: Construction. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 9: Enforceability. Repeal of any provision of the EI Segundo Municipal Code does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. ORDINANCE No. 1577 Page 9 of 10 SECTION 10; Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 11: The City Clerk is directed to certify the passage and adoption of this Ordinance, cause it to be entered into the city of EI Segundo's book of original ordinances, make a note of the passage and adoption in the records of this meeting, and, within fifteen days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. PASSED, APPROVED, AND ADOPTED ORDINANCE No. 1577 this 20th day of November, 2018 Drew Boyl s, Mayor ATTEST: Ir A �Jltvv Tracy Wea r, City Clerk APPROVED AS TO FORM Mark . Hensle , Attorney ORDINANCE No. 1577 Page 10 of 10 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of EI Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Ordinance No. 1577 was duly introduced by said City Council at a regular meeting held on the 6th day of November, 2018, and was duly passed and adopted by said City Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a regular meeting of said Council held on the 20th day of November, 2018, and the same was so passed and adopted by the following vote: AYES; Mayor Boyles, Mayor Pro Tem Pirsztuk, Council Member Brann, Council Member Pimentel, and Council Member Nicol NOES: None ABSENT: None ABSTAIN: None WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY thisYd day of December, 2018. T y Weaver, City Clerk of e City of EI Segundo, California