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HomeMy WebLinkAbout06.C- City Attorney RESOLUTION (ID # 4584) DOC ID: 4584 B CITY OF SAN BERNARDINO — REQUEST FOR COUNCIL ACTION Election From: Jolena E. Grider M/CC Meeting Date: 08/01/2016 Prepared by: Steven Graham, (909) 384- 5355 Dept: City Attorney Ward(s): All Subject: Resolution of the Mayor and Common Council of the City of San Bernardino Ordering the Submission of a Proposed Initiative Measure to the Electors of Said City at a Special Election to be Consolidated with the Presidential Election of November 8, 2016. (#4584) Current Business Registration Certificate: Not Applicable Financial Impact: Account Budgeted Amount: <<Insert Amount>> Account No. <<Insert Account No.>> Account Description: <<Insert Account Description>> Balance as of: <<Insert Date>> Balance after approval of this item: <<Insert Amount>> Please note this balance does not indicate available funding. It does not include non- encumbered reoccurring expenses or expenses incurred, but not yet processed. Motion: Adopt the Resolution. Background: The Mayor and Common Council, citing public health and safety concerns caused by Dispensaries and concerned about the status of state and federal law, passed Ordinance No. MC-1349 in 2011 prohibiting Dispensaries and other marijuana activities within the City. The current ban makes the establishment or operation of a Dispensary and other marijuana activities unlawful subject to administrative fines, misdemeanor criminal prosecution, or civil nuisance abatement. In 2013, the California Supreme Court upheld local governmental entities' ability to prohibit Dispensaries and other marijuana activities. At the July 5 meeting of the Mayor and Common Council meeting, the Mayor and Common Council directed the City Attorney to prepare a proposed measure regulating marijuana that the Mayor and Common Council would consider submitting to the qualified electors of the City. The City Attorney's Office has met with City staff from the Mayor's Office, City Manager's Office, Police Department, and Community Development Department to draft a regulatory framework based on input received at meetings of the Mayor and Common Council and Legislative Review Committee. Packet Pg. 538 Updated: 7/26/2016 by Linda Sutherland B .c 4584 The proposed measure would enact strict application, license renewal, operating standards and location restrictions for all marijuana activities within the City. The proposed measure would have additional operating standards and location restrictions for marijuana dispensaries. Unlike the voter initiated initiatives that have or are likely to qualify for the November election, this measure would reserve to the Mayor and Common Council the ability to modify, amend, or repeal the regulations as State and Federal Law change with regards to marijuana. The proposed measure would also include the ability for the Mayor and Common Council to set application and regulatory fees in an amount necessary to cover the costs to the City of regulating marijuana activities. The measure has language that would render null and void any other initiative that purports to regulate marijuana activities in the City if this measure receives the most affirmative votes. City staff also recommend that the Mayor and Common Council find that passage of this resolution would not be subject to CEQA review because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment and the passage of this resolution is not a project as defined in Section 15378 because it has no potential for resulting in physical change of the environment, directly or indirectly. City Attorney Review: N/A Supporting Documents: Chapter 5.05 Ballot Initiative Reso (DOC) Chapter 5.05 Ballot Initiative- Exhibit "A" (DOC) Packet Pg. Updated: 7/26/2016 by Linda Sutherland B 539 1 RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL ORDERING THE SUBMISSION OF A PROPOSED INITIATIVE MEASURE TO THE ELECTORS OF 3 SAID CITY AT A SPECIAL ELECTION TO BE CONSOLIDATED WITH THE 4 PRESIDENTIAL ELECTION OF NOVEMBER 8, 2016 5 WHEREAS,there is scheduled a statewide Presidential Election for November 8, 2016; and 6 WHEREAS, on July 5, 2016 the Mayor and Common Council requested that the City Attorney 7 prepare a marijuana regulatory ordinance for consideration at the meeting of August 1, 2016; and 8 WHEREAS,pursuant to authority provided by Elections Code Section 9222 and the Charter of the 9 City of San Bernardino, the Mayor and Common Council desires to submit to the qualified electors of said City an initiative measure proposing to replace Chapter 5.05 and repeal Section 19.06.026 of 10 the San Bernardino Municipal Code relating to commercial marijuana activities; and 11 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 12 13 SECTION 1. That pursuant to Elections Code 9222 and the Charter of the City of San 14 Bernardino, it is hereby ordered that the following initiative measure proposing to replace 15 Chapter 5.05 and repeal Section 19.06.026 of the San Bernardino Municipal Code be submitted 16 to the qualified electors of said City at a Special Election to be consolidated with the Presidential 17 18 Election of November 8, 2016. 19 SECTION 2. The full text of the measure is set forth in Exhibit "A" to this resolution 20 and is incorporated herein by this reference. Said measure shall appear upon the ballots for said 21 Special Election in substantially the following form: 22 23 MEASURE_ YES NO COMMERCIAL MARIJUANA ACTIVITY. 24 Shall San Bernardino Municipal Code Chapter 5.05 and Section 19.06.026, which prohibit the sale, 25 possession, cultivation, use, and/or distribution of 26 marijuana be replaced and repealed and the City of San Bernardino regulate commercial marijuana 27 activity? 28 (I LtLe 1 SECTION 3. That the Mayor and Common Council of the City of San Bernardino 2 hereby find that the submission of this ballot measure to the voters is covered by the general rule 3 that CEQA applies only to projects which have the potential for causing a significant effect on 4 5 the environment. It can be seen with certainty that there is no possibility that this project may 6 have a significant effect on the environment, therefore, the activity is not subject to CEQA under 7 State CEQA Guidelines sec. 15061(b)(3). The proposed ordinance proposes regulations and 8 approvals which, among other things, require a finding that"The location, size, design, and 9 operating characteristics of the proposed Commercial Marijuana Activity will not create any 10 11 unavoidable significant adverse impacts to the environment based on the CEQA review of the 12 project, including significant noise, traffic, odor, or other conditions or situations that may be 13 objectionable or detrimental or adverse to public health, safety and welfare of the residents in the 14 vicinity of the proposed facility..." Section 5.05.070(e)(6). The regulatory framework as a whole, 15 16 and Section 5.05.070 in particular, provides a comprehensive set of environmental criteria that a 17 Commercial Marijuana Activity must meet and results in certainty that there is no possibility that 18 the activity in question may have a significant impact on the environment. 19 20 /// 21 22 HI 23 24 25 26 27 28 2 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL ORDERING THE SUBMISSION OF A PROPOSED INITIATIVE MEASURE TO THE ELECTORS OF 2 SAID CITY AT A SPECIAL ELECTION TO BE CONSOLIDATED WITH THE 3 PRESIDENTIAL ELECTION OF NOVEMBER 8,2016 4 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 5 Common Council of the City of San Bernardino at a meeting thereof, held on the 6 day of , 2016, by the following vote, to wit: 7 Council Members: AYES NAYS ABSTAIN ABSENT 8 9 MARQUEZ 10 BARRIOS 11 VALDIVIA 12 SHORETT 13 14 NICKEL Is RICHARD 16 MULVIHILL 17 18 Georgeann Hanna, City Clerk 19 The foregoing Resolution is hereby approved this day of ) 2016. 20 21 22 R. Carey Davis, Mayor City of San Bernardino 23 Approved as to form: Gary D. Saenz, City Attorney 24 25 By: 26 27 28 3 I AN ORDINANCE OF THE PEOPLE OF THE CITY OF SAN BERNARDINO 2 REPLACING SAN BERNARDINO MUNICIPAL CODE CHAPTER 5.05 AND REPEALING SECTION 19.06.026 TO REGULATE THE ESTABLISHMENT 3 AND OPERATION OF COMMERCIAL MARIJUANA BUSINESSES 4 WHEREAS, Federal Law (codified at 21 U.S.C. Sections 801 et seq., 5 entitled the "Controlled Substances Act" ("CSA") makes it unlawful to manufacture, distribute, or possess any controlled substances, including 6 marijuana, which has, as a Schedule I drug under the CSA, a high potential for 7 abuse and no accepted medical value in treatment; and, 8 WHEREAS, at the General Election held on November 5, 1996, California voters approved Proposition 215 (codified as Health and Safety Code Section 9 11362.5, and titled the "Compassionate Use Act of 1996" ("CUA")), which 10 provided that "Section 11357, relating to the possession of marijuana, and Section 11358, relating to the cultivation of marijuana, shall not apply to a 11 patient, or to a patient's primary caregiver, who possesses or cultivates 12 marijuana for the personal medical purposes of the patient upon the written or oral recommendation or approval of a physician;" and, 13 14 WHEREAS, On January 1, 2004, Senate Bill 420 (codified as Health and Safety Code Sections 11362.7 et seq. and titled the "Medical Marijuana Program" 15 ("MMP") went into effect and was enacted to clarify the scope of the CUA and to allow cities and counties to adopt and enforce regulations consistent with the 16 CUA and MMP; and, 17 WHEREAS, medical marijuana dispensaries that have operated 18 unpermitted in the City of San Bernardino and elsewhere have caused 19 significant problems, including burglaries and takeover robberies of dispensaries, robberies of customers leaving dispensaries, an increase in crime (especially 20 thefts and robberies) in the vicinity of dispensaries, illegal reselling of marijuana obtained from dispensaries, physicians issuing apparently fraudulent 21 recommendations for the use of marijuana, dispensary staff selling marijuana to 22 customers with obviously counterfeit patient identification cards, street dealers attempting to sell marijuana to dispensary customers, dispensary customers 23 using marijuana and then driving under the influence of marijuana, the sale of 24 illegal drugs other than marijuana in the dispensaries, sales of marijuana to minors; and 25 WHEREAS, after studying various alternatives for the regulation of 26 marijuana businesses, considering testimony from members of the public, and 27 reviewing the legal status of marijuana businesses under applicable law, the Mayor and Common Council find that the regulation and operation of marijuana 28 businesses is necessary to protect the public health, safety, and welfare; and l�ce� Pales . #k co G Ott ItLP 1 2 WHEREAS, the City of San Bernardino has a compelling interest in ensuring that marijuana is not distributed in an illicit manner, in protecting the 3 public health, safety and welfare of its residents and businesses, in preserving the peace and quiet of the neighborhoods in which marijuana businesses operate, 4 and in providing compassionate access to medical marijuana to its seriously ill 5 residents. 6 NOW, THEREFORE, THE PEOPLE OF THE CITY OF SAN 7 BERNARDINO DO ORDAIN AS FOLLOWS= 8 SECTION 1. The People hereby adopt the recitals and findings set forth 9 above. 10 SECTION 2. Section 19.06.026 of the San Bernardino Municipal Code is hereby repealed in its entirety. 11 12 SECTION 3. Chapter 5.05 of the San Bernardino Municipal Code is hereby repealed in its entirety and replaced with the following: 13 14 Chapter 5.05 COMMERCIAL MARIJUANA ACTIVITIES 15 5.05.010 Purpose and Intent. 16 17 It is the purpose and intent of this Chapter to regulate Commercial Marijuana Activities in order to ensure the health, safety and welfare of the residents of the 18 City of San Bernardino. The regulations in this Chapter are in compliance with 19 the Compassionate Use Act, the Medical Marijuana Program Act, Medical Marijuana Regulation and Safety Act and the California Health and Safety Code 20 (referred to as "State Law"). Commercial Marijuana Activities shall comply with all provisions of the San Bernardino Municipal Code ("Code"), State Law, the 21 2008 California Attorney General Guidelines for the Security and Non-Diversion 22 of Marijuana Grown for Medical Use, and all other applicable local and state laws. Nothing in this Chapter purports to permit activities that are otherwise 23 illegal under state or local law. 24 5.05.020 Definitions. 25 (a) "Accrediting body" means a nonprofit organization that requires 26 conformance to ISO/IEC 17025 requirements and is a signatory to 27 the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement for Testing. 28 2 I (b) "Applicant," for purposes of this Chapter means the following= 2 3 (1) Owner or owners of a proposed facility, including all persons or entities having ownership interest other than a security 4 interest, lien, or encumbrance on property that will be used by 5 the facility. 6 (2) If the owner is an entity, "owner" includes within the entity 7 each person participating in the direction, control, or management of, or having a financial interest in, the proposed 8 facility. 9 (3) If the applicant is a publicly traded company, "owner" means 10 the chief executive officer or any person or entity with an aggregate ownership interest of 5 percent or more. 11 12 (c) "Cannabis" means the same as "Marijuana." 13 (d) "Commercial Marijuana Activity" includes cultivation, manufacturing, processing, storing, laboratory testing, labeling, 14 transporting, distribution, or sale of marijuana or a marijuana 15 product. 16 (e) "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana. 17 18 (f) "Delivery" means the commercial transfer of marijuana or marijuana products from a Dispensary. "Delivery" also includes the use by a 19 Dispensary of any technology platform owned and controlled by the Dispensary, or independently licensed under State Law, that enables 20 persons to arrange for or facilitate the commercial transfer by a 21 licensed Dispensary of marijuana or marijuana products. 22 (g) "Dispensary" means a facility where marijuana, marijuana products, or devices for the use of marijuana or marijuana products are 23 offered, either individually or in any combination, for retail sale. 24 (h) "Dispensing" means any activity involving the retail sale of 25 marijuana or marijuana products from a Dispensary. 26 (i) "Distribution" means the procurement, sale, and transport of marijuana and marijuana products between entities licensed 27 pursuant to this Chapter. 28 3 1 (j) "Distributor" means a person licensed under this Chapter to engage 2 in the business of purchasing marijuana from a licensed cultivator, or marijuana products from a licensed manufacturer, for sale to a 3 licensed dispensary. 4 (k) "Cultivation site" means a facility where marijuana is planted, 5 grown, harvested, dried, cured, graded, or trimmed, or that does all or any combination of those activities, that holds a valid license 6 pursuant to this Chapter. 7 (1) "Edible marijuana product" means manufactured marijuana that is 8 intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum. 9 (m) "Manufacturer" means a person that conducts the production, 10 preparation, propagation, or compounding of manufactured 11 marijuana, as described in subdivision (o) of this Section, or marijuana products either directly or indirectly or by extraction 12 methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location 13 that packages or repackages marijuana or marijuana products or 14 labels or relabels its container, that holds a valid local license 15 pursuant to this Chapter. 16 (n) "Licensee" means a person issued a license under this Chapter to engage in commercial marijuana activity. 17 (o) "Manufactured marijuana" means raw marijuana that has 18 undergone a process whereby the raw agricultural product has been 19 transformed into a concentrate, an edible product, or a topical product. 20 (p) "Marijuana" means all parts of the plant Cannabis sativa Linnaeus, 21 Cannabis indica, or Cannabis ruderalis, whether growing or not; the 22 seeds thereof, the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, 23 derivative, mixture, or preparation of the plant, its seeds, or resin. "Marijuana" also means the separated resin, whether crude or 24 purified, obtained from marijuana. "Marijuana" also means 25 marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. 26 "Marijuana" does not include the mature stalks of the plant, fiber 27 produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, 28 or preparation of the mature stalks (except the resin extracted 4 I therefrom), fiber, oil, or cake, or the sterilized seed of the plant 2 which is incapable of germination. For the purpose of this Chapter, "Marijuana" does not mean "industrial hemp" as defined by Section 3 81000 of the Food and Agricultural Code or Section 11018.5 of the 4 Health and Safety Code. 5 (q) "Marijuana concentrate" means manufactured marijuana that has undergone a process to concentrate the cannabinoid active 6 ingredient, thereby increasing the product's potency. 7 (r) "Manufacturing site" means a location that produces, prepares, 8 propagates, or compounds manufactured marijuana or marijuana products, directly or indirectly, by extraction methods, 9 independently by means of chemical synthesis, or by a combination 10 of extraction and chemical synthesis, and is owned and operated by a licensee for these activities. 11 (s) "Marijuana product" means a product containing marijuana, 12 including, but not limited to, concentrates and extractions, intended 13 to be sold for personal use. 14 (t) "Nursery" means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for 15 the planting, propagation, and cultivation of medical cannabis. 16 (u) "Testing laboratory" means a facility, entity, or site in the City that 17 offers or performs tests of marijuana or marijuana products and that is both of the following: 18 19 (1) Accredited by an accrediting body that is independent from all other persons involved in the marijuana industry in the state. 20 (2) Registered with the State Department of Public Health. 21 22 (v) "Transporter" means a person issued a state license by the bureau to transport medical cannabis or medical cannabis products in an 23 amount above a threshold determined by the bureau between facilities that have been issued a state license pursuant to this 24 chapter. 25 (w) "Commercial Marijuana Activity Regulatory License" means an 26 official document granted by the City of San Bernardino that 27 specifically authorizes a person to conduct Commercial Marijuana Activity in the City. 28 5 I (x) "Person" means an individual, firm, partnership, joint venture, 2 association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or 3 combination acting as a unit and includes the plural as well as the 4 singular number. 5 (y) "Topical cannabis" means a marijuana product intended for external use. 6 (z) "Transport" means the transfer of marijuana or marijuana products 7 from the permitted business location of one licensee to the permitted 8 business location of another licensee, for the purposes of conducting Commercial Marijuana Activity authorized pursuant to this 9 Chapter. 10 5.05.030 Scope of this Article. 11 This Chapter applies to any person currently engaged in a Commercial 12 Marijuana Activity in the City of San Bernardino, or who engages in a 13 Commercial Marijuana Activity after the effective date of this Chapter. Any person engaging in a Commercial Marijuana Activity in the City of San 14 Bernardino shall operate in conformance with the operating standards set forth in this Chapter to assure that the Commercial Marijuana Activity is in 15 compliance with State Law and to mitigate the adverse secondary effects from 16 the Commercial Marijuana Activity. 17 5.05.040 License Required. 18 (a) It shall be unlawful for any person to engage in a Commercial 19 Marijuana Activity without a Commercial Marijuana Activity 20 Regulatory License issued by the City of San Bernardino pursuant to the provisions of this Chapter. 21 (b) Engaging in a Commercial Marijuana Activity without a Commercial 22 Marijuana Activity Regulatory License includes establishing, 23 owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting, suffering or concealing the fact of such 24 an act. 25 (c) Commercial Marijuana Activity Regulatory License types issued by 26 the City of San Bernardino shall include: 27 (1) Type A for persons engaged in Cultivation, operation of a Cultivation site and/or operation of a Nursery; 28 6 1 2 (2) Type B for persons engaged in manufacturing of Marijuana as a Manufacturer and/or operation of a Manufacturing Site; 3 (3) Type C for persons engaged in the operation of a Testing 4 Laboratory; 5 (4) Type D for persons engaged in Dispensing and/or operation of 6 a Dispensary, and 7 (5) Type E for persons engaged in Transportation and/or Distribution. 8 9 (d) A person holding of a Type A license may apply for a Type B license for the same facility. 10 11 (e) A person holding a Type B license may apply for a Type A license for the same facility. 12 (f) A person holding a Type C license may not apply for any other type 13 of license. 14 (g) A person holding a Type D license may not apply for any other type 15 of license. 16 (h) A person holding a Type E license may not apply for any other type 17 of license. 18 (i) A separate license shall be required for each facility where a Commercial Marijuana Activity is engaged in, even if it is an activity 19 covered by the same License Type and the same Licensee. 20 5.05.050 Violations and Penalties. 21 (a) Any person causing, permitting, aiding, abetting, suffering or 22 concealing a violation of this Chapter shall be guilty of a misdemeanor. 23 24 (b) Each and every violation of this chapter, and each day that a violation continues, shall constitute a separate violation. 25 (c) The City Attorney, in his or her sound discretion, may prosecute a 26 violation of this Chapter as an infraction, rather than as a 27 misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an infraction. Any person convicted of an 28 infraction under the provisions of this Chapter shall be punished by 7 I a fine not exceeding one hundred dollars for the first violation, a fine 2 not exceeding two hundred dollars for a second violation within one year, and a fine not exceeding five hundred dollars for a third 3 violation within one year. A fourth violation of this Chapter within one year shall be charged as a misdemeanor and may not be reduced 4 to an infraction. 5 (d) Any person convicted of a misdemeanor under the provisions of this 6 Chapter shall be punished by a fine of not more than one thousand dollars, or by imprisonment in the city jail or county jail for a period 7 not exceeding six months, or by both such fine and imprisonment. 8 (e) In addition to the penalties provided by this section, any person in 9 violation of this Chapter shall be subject to a civil fine pursuant to the administrative citation provisions of Chapter 9.92 or civil 10 penalty pursuant to the administrative civil penalties provisions of 11 Chapter 9.93. 12 (f) In addition to the penalties provided by this section, any violation of this Chapter shall be deemed a public nuisance and may be 13 summarily abated by the City. The City may recover any nuisance 14 abatement costs and/or administrative fines relating to such violations in accordance with Government Code Sections 38773.1 15 and 38773.5 in accordance with Chapter 8.30 of this Code. 16 5.05.060 Nonconforming Use. 17 Any person that at the time of the passage of this Ordinance has engaged in a 18 Commercial Marijuana Activity that does not comply with the requirements of 19 this Chapter must immediately cease the Commercial Marijuana Activity until such time, if any, when it complies fully with the requirements of this Chapter. 20 No Commercial Marijuana Activity that existed prior to the enactment of this Chapter shall be deemed to be a legally established use under this Code, and 21 such Commercial Marijuana Activity shall not be entitled to claim legal 22 nonconforming status. 23 5.05.070 License Application 24 (a) Commercial Marijuana Activities are unique and their effect on the 25 surrounding area and City as a whole cannot be determined in 26 advance of a review of the application for a particular proposed Commercial Marijuana Activity at a particular facility. 27 (b) Any person desiring a Commercial Marijuana Activity Regulatory 28 8 I License required by this Chapter to engage in a Commercial 2 Marijuana Activity shall, prior to engaging in Commercial Marijuana Activity, complete and file an application to the 3 Community Development Director on a form supplied by the 4 Community Development Department. 5 (c) The application shall be filed together with a nonrefundable fee as established by resolution of the Mayor and Common Council, to 6 defray the cost of processing the application and investigation required by this Chapter. The application shall contain all of the 7 following: 8 (1) The address of the property where the Commercial Marijuana 9 Activity will occur; 10 (2) A site plan describing the property with fully dimensioned 11 interior and exterior floor plans including electrical, mechanical, plumbing, and disabled access compliance 12 pursuant to Title 24 of the State of California Code of 13 Regulations and the federally mandated Americans with Disabilities Act; 14 (3) Exterior photographs of the entrance(s), exits(s), street 15 frontage(s), parking, front, rear and side(s) of the proposed ® 16 property; 17 (4) Photographs depicting the entire interior of the proposed property; 18 19 (5) If the property is being rented or leased or is being purchased under contract, a copy of such lease or contract; 20 (6) If the property is being rented or leased, written proof that the 21 property owner, and landlord if applicable, were given notice 22 that the property will be used to engage in Commercial Marijuana Activity, and that the property owner, and landlord 23 if applicable, agree(s) to said operations; 24 (7) The name, home address, personal telephone number, title 25 and function(s) of each manager, employee, volunteer of the Applicant etc.; 26 (8) For each manager, employee, volunteer of the Applicant a 27 fully legible copy of one valid government issued form of photo 28 identification, such as State Driver's License or Identification 9 I Card; 2 (9) Identification of the form of the Applicant (individual, 3 corporation, LLC, etc.); 4 (10) The name and address of the Applicant's current agent for Service of Process; 5 6 (11) A copy of the Applicant's Board of Equalization Seller's Permit; 7 (12) A copy of the General Operating Standards, listed in Section 8 5.05.130, and for Type D Applicants, a copy of the Dispensary 9 Operating Standards, listed in Section 5.05.140, containing a statement dated and signed by the property owner and the 10 Applicant stating under penalty of perjury, that they read, understand and shall ensure compliance with the 11 aforementioned operating standards; 12 (13) A detailed security plan; 13 (14) A detailed maintenance plan; 14 15 (15) Evidence that the Applicant has acquired all necessary land use entitlements required under Title 19 of this Code, 16 including any necessary environmental approvals under the California Environmental Quality Act ("CEQA"); 17 18 (16) A statement dated and signed by the property owner and Applicant stating under penalty of perjury that they have 19 sent via certified mail notice of their intent to seek a Commercial Marijuana Activity Regulatory License to all 20 property owners of record owning parcels within 1000 feet of 21 the property where the proposed Commercial Marijuana Activity will occur; 22 (17) A statement dated and signed by the property owner and 23 Applicant stating under penalty of perjury that the property 24 where the proposed Commercial Marijuana Activity will occur complies with the location restrictions of Sections 5.05.150 and 25 5.05.160; and 26 (18) Approval from the San Bernardino Police Department that 27 each manager, employee, volunteer of the Applicant listed in (7) of this subdivision has passed a City administered 28 LiveScan background check. 10 1 2 (d) The Director of Community Development shall have sixty (60) calendar days in which to review the application and investigate the 3 background of the Applicant. The Police Department, Community Development Department, and the San Bernardino County Fire 4 Department shall inspect the proposed facility and shall make 5 separate recommendations to the Community Development Director concerning compliance with the foregoing provisions. 6 7 (e) After the sixty (60) day review period, the Director of Community Development may approve and/or modify a Commercial Marijuana 8 Activity Regulatory License in whole or in part, with or without 9 conditions, only if all of the following findings are made: 10 (1) The application fee required by this Section has been paid; 11 (2) The application conforms in all aspects to the provisions of 12 this Chapter; 13 (3) The Applicant has not made a material misrepresentation or omission in the application; 14 (4) The Applicant has not had a Commercial Marijuana Activity 15 Regulatory License, or other similar license or permit denied 16 or revoked for cause by the City of San Bernardino or by any other city, county, or city and county in or out of this state 17 within five (5) years prior to the date of the application; 18 (5) The proposed Commercial Marijuana Activity would comply 19 with all applicable local and state laws including, but not limited to, health, zoning, fire, and safety requirements; 20 (6) The location, size, design, and operating characteristics of the 21 proposed Commercial Marijuana Activity will not create any 22 unavoidable significant adverse impacts to the environment based on the CEQA review of the project, including significant 23 noise, traffic, odor, or other conditions or situations that may be objectionable or detrimental or adverse to public health, 24 safety and welfare of the residents in the vicinity of the 25 proposed CMA facility; and 26 (7) The proposed Commercial Marijuana Activity will not be 27 adverse to the public interest, health, safety, convenience, or welfare of the City of San Bernardino. 28 11 1 05.05.080 License Expiration. 2 A Commercial Marijuana Activity License shall automatically expire one year 3 after the license is issued unless renewed in conformity with Section 5.05.090. No license granted herein shall confer any vested right to any person for more than 4 the above-referenced period. 5 5.05.090 License Renewal. 6 7 (a) Applications for the renewal of a Commercial Marijuana Activity Regulatory License shall be filed with the Director of Community 8 Development at least sixty (60) calendar days before the expiration 9 of the current license but no earlier than ninety (90) days before the expiration of the current license. Temporary licenses will not be 10 issued. Any Licensee allowing his or her license to lapse or which license expired during a suspension shall be required to submit a 11 new application and pay the corresponding new application fees. 12 (b) Any Licensee desiring to obtain a renewal of his or her respective 13 license shall file a written application under penalty of perjury on 14 the required form with the Director of Community of Development who shall conduct a review and investigation. The application shall 15 be accompanied by a nonrefundable filing fee established by resolution of the Mayor and Common Council to help defray the cost 16 of the review and investigation required by this Chapter. A Licensee 17 shall be required to update the information contained in his or her original license application and provide any new and/or additional 18 information as may be reasonably required by the Director of 19 Community Development in order to determine whether said permit should be renewed. 20 (c) After the sixty (60) day review period, the Director of Community 21 Development may approve and/or modify the Commercial Marijuana 22 Activity Regulatory License renewal in whole or in part, with or without conditions, only if all of the following findings are made: 23 (1) The license renewal fee required by this Section has been paid; 24 25 (2) The license renewal conforms in all aspects to the provisions of this Chapter; 26 (3) The Licensee has not made a material misrepresentation or 27 omission in the renewal application; 28 12 1 (4) The Licensee has not had a Commercial Marijuana Activity 2 Regulatory License, or other similar license or permit denied or revoked for cause by the City of San Bernardino or by any 3 other city, county, or city and county in or out of this state within five (5) years prior to the date of the renewal 4 application; 5 (5) The Licensee has complied with all applicable local and state 6 laws including, but not limited to, health, zoning, fire, and 7 safety requirements; 8 (6) The location, size, design, and operating characteristics of the Commercial Marijuana Activity has not created any 9 unavoidable significant adverse impacts to the environment based on the CEQA review of the project performed pursuant 10 to Section 5.05.070, including significant noise, traffic, odor, or 11 other conditions or situations that are objectionable or detrimental or adverse to public health, safety and welfare of 12 the residents in the vicinity of the facility; and 13 (7) The Commercial Marijuana Activity has not been adverse to 14 the public interest, health, safety, convenience, or welfare of the City of San Bernardino. 15 16 5.05.100 Revocation of License. 17 (a) The Director of Community Development may revoke or temporarily suspend a Commercial Marijuana Activity Regulatory License if any 18 of the following findings are made 19 (1) The annual regulatory fee required by Section 5.05.170 has 20 not been paid on the date it was due; 21 (2) The licensee has failed to substantially comply with each and 22 every provision of this Chapter; 23 (3) The licensee has failed to substantially comply with each and 24 every condition of the applicable land use entitlement for the property; 25 (4) The licensee has made a material misrepresentation or 26 omission on a license application or application for license 27 renewal; 28 (5) The licensee has had a Commercial Marijuana Activity 13 I Regulatory License, or other similar license or permit denied 2 or revoked for cause by the City of San Bernardino or by any other city, county, or city and county in or out of this state 3 within five (5) years prior to the date of the revocation; 4 (6) The Licensee has failed to substantially comply with any 5 applicable local and state law including, but not limited to any law relating to health, zoning, fire, and safety requirements; 6 (7) The location, size, design, and operating characteristics of the 7 Commercial Marijuana Activity has created an unavoidable 8 significant adverse impact to the environment, including significant noise, traffic, odor, or other conditions or situations 9 that are objectionable or detrimental or adverse to public health, safety and welfare of the residents in the vicinity of the 10 facility; or 11 (8) The Commercial Marijuana Activity has been adverse to the 12 public interest, health, safety, convenience, or welfare of the 13 City of San Bernardino. 14 5.05.110 Interpretation of the Director. 15 The Director of Community Development has the authority to make 16 interpretations of this Chapter. 17 5.05.120 Appeal of Decision or Interpretation. 18 (a) Any person shall have the right to appeal the Director's decision to 19 grant, deny, or revoke a Commercial Marijuana Activity Regulatory License to the Hearing Officer of the City appointed in conformity 20 with Section 9.93.090 of the San Bernardino Municipal Code. 21 (1) The appeal shall be made to the Office of the City Clerk within 22 fifteen (15) days of the Director's decision. 23 (2) The Hearing Officer shall hold a hearing within sixty (60) days 24 of the date the appeal is filed with the Office of the City Clerk. 25 (3) The Hearing Officer shall render a decision within ten (10) days of the date the appeal is filed with the Office of the City 26 Clerk. 27 (4) The Hearing Officer shall review the Director's decision under 28 the abuse of discretion standard. The Hearing Officer shall 14 I only reverse the decision of the Director if the Hearing Officer 2 finds that the Director's decision was arbitrary and capricious and totally lacking in evidentiary support. 3 (b) Any person shall have the right to appeal any interpretation of this 4 Chapter made by the Director. 5 (1) The appeal shall be made to the Office of the City Clerk within 6 fifteen (15) days of the Director's interpretation. 7 (2) The Hearing Officer shall hold a hearing within sixty (60) days 8 of the date the appeal is filed with the Office of the City Clerk. 9 (3) The Hearing Officer shall give deference to the Director's 10 interpretation on appeal. 11 5.05.130 General Operating Standards. 12 The following operating standards shall be applicable to all Licensees. 13 (a) All Commercial Marijuana Activities must occur within a building, 14 that is, indoors within a fully enclosed structure that includes solid 15 walls, and a ceiling, roof, or top. 16 (b) Any facility where the Commercial Marijuana Activity occurs shall 17 have lighting adequate to illuminate the exterior of the building, all entrances and exits to the building, and all interior portions of the 18 building where Marijuana is located. The lighting shall be sufficient to readily identify any individual committing a crime anywhere at 19 the location with the location's security camera system. 20 (c) Each Licensee, and all officers, managers, employees, volunteers and 21 agents of the Licensee shall complete a City-administered criminal background check using LiveScan prior to engaging in a Commercial 22 Marijuana Activity. No Licensee, or any officer, manager, employee, 23 volunteer or agent of Licensee shall have been convicted of, or plead guilty/no-contest to a felony, misdemeanor drug or weapon charge, or 24 crime of moral turpitude within the previous five years. 25 (d) The facility, interior and exterior, shall be monitored at all times by 26 on-site or internet-based closed-circuit television. The camera and recording system must be of adequate quality, color rendition and 27 resolution to allow the ready identification of any individual 28 committing a crime anywhere on or adjacent to the location. The 15 I recordings shall be maintained for a period of not less than ninety 2 days and made available to the Police Department upon request. If the recordings are not voluntarily made available, the Police 3 Department may obtain a warrant or other court order. 4 (e) At all times Marijuana is present, the facility shall have at least one 5 security guard on duty that is licensed, possesses a valid Department of Consumer Affairs "security guard card," and has a 6 valid San Bernardino Business Registration Certificate. 7 (f) The facility shall have a centrally-monitored fire and burglar alarm 8 system. q (g) The facility shall contain a fireproof safe. 10 (h) No recommendations from a doctor for medical marijuana shall be 11 issued at the facility. 12 (i) No sales of alcohol or tobacco may take place at the facility. 13 U) No consumption of alcohol, tobacco, or Marijuana may take place at the facility. 14 15 (k) The facility shall have sufficient odor absorbing ventilation and exhaust system such that odor generated from the location where 16 the Commercial Marijuana Activity occurs is not detected outside the property, anywhere on adjacent property or public rights-of-way, 17 or within any other unit located within the same building. 18 (1) No one under 21 years of age shall be permitted to enter the facility. 19 I (m) The Licensee shall provide the name and phone number of an on-site 20 staff person to the Police Department and Community Development 21 Department for notification if there are operational problems at the facility. 22 (n) The facility shall have posted in a conspicuous place near the 23 entrance a sign directing all complaints to a telephone number 24 provided by the City. The telephone number will be monitored by the City to receive complaints regarding Licensee. The City may submit 25 complaints to the Licensee. The Licensee shall respond within twenty-four (24) hours to the City with how the Licensee has or will 26 respond to the complaint. 27 . (o) The manufacturing of Marijuana Concentrate using volatile solvents 28 is prohibited. 16 1 2 5.05.140 Dispensary Operating Standards. 3 In addition to the General Operating Standards stated above in Section 5.05.130, Licensees holding a Type D License to engage in Dispensing or operate a 4 Dispensary shall comply with the following standards: 5 (a) If food or edible marijuana products are distributed, the Licensee 6 shall comply which all relevant State and Local Laws pertaining to 7 the preparation, distribution and sale of food. 8 (b) The Licensee shall have a second security guard to monitor the immediate vicinity of the Dispensary to assure that patrons 9 immediately leave the Dispensary and do not consume Marijuana in 10 the vicinity of the Dispensary. 11 (c) Exterior signage shall be limited to one wall sign not to exceed ten square feet in area and may not be externally or internally 12 illuminated. Interior signage or advertising may not be visible from 13 the exterior. 14 (d) Hours of Operation shall be limited to: Monday — Saturday 10 a.m. — 15 8 p.m. and Sunday 11 a.m. — 7 p.m. 16 (e) A Dispensary shall notify patrons of the following both verbally and through posting of a sign in a conspicuous location: 17 (1) Use of medical marijuana shall be limited to the patient 18 identified on the doctor's recommendation. Secondary sale, 19 barter or distribution of medical marijuana is a crime and can lead to arrest. 20 21 (2) That loitering on and around the Dispensary is prohibited by California Penal Code § 647(e) and that patrons must 22 immediately leave the site and not consume Marijuana in the vicinity of the Dispensary, on the property or in the parking 23 lot. 24 (3) Forgery of medical documents is a felony crime. 25 (4) A warning that patrons may be subject to prosecution under 26 federal marijuana laws. 27 (5) That the use of marijuana may impair a person's ability to 28 drive a motor vehicle or operate machinery. 17 1 2 (6) That no person under 21 years of age is permitted within the Dispensary. 3 (f) A Dispensary shall not provide marijuana to any individual in an 4 amount not consistent with personal use. 5 (g) A Dispensary shall not store more than $500.00 in cash reserves 6 overnight at the facility and shall make at least one daily bank drop that includes all cash collected on that business day. 7 8 (h) The Delivery of Marijuana or Marijuana Products is prohibited. 9 5.05.150 General Location Restrictions. 10 In addition to any zoning requirements under Title 19 of this Code, the following 11 location restrictions apply to all Licensees. 12 (a) A person may only engage in Commercial Marijuana Activity in the 13 following zones: OIP, IL, IH, and IE. 14 (b) No person may engage in Commercial Marijuana Activity in the following zones: RE, RL, RS, RU, RM, RMH, RH, CO, CG-1, CG-2, 15 CG-3, CR-1, CR-2, CR-3, CR-4, CH, PCR, PF, PFC, PP, or SP. 16 (c) No person may engage in Commercial Marijuana Activity within 600 17 feet of the following: 18 (1) School; 19 (2) Park; 20 (3) Library; or 21 22 (4) Recreation Center. 23 (d) No person may engage in Commercial Marijuana Activity within 100 feet of any property zoned RE, RL, RS, RU, RM, RMH, or RH. 24 25 (e) No person may engage in Commercial Marijuana Activity within 100 feet of any Religious Facility. 26 5.05.160 Dispensary Location Restrictions 27 28 (a) In addition to the location restrictions found in Section 5.05.150, no 18 1 1 person may engage in Dispensing or operate a Dispensary within 2 1000 feet of any of the following: 3 (1) School; 4 (2) Park; 5 6 (3) Library; 7 (4) Recreation Center; 8 (5) Religious Facility; or 9 (6) Any other licensed Dispensary. 10 (b) No person may operate a Dispensary within 300 feet of any property 11 zoned RE, RL, RS, RU, RM, RMH, or RH. 12 (c) All distances specified in this Chapter shall be measured in a straight line, without regard to intervening structures, from the 13 nearest point of the property line to the nearest point of the property 14 line of those uses described herein. 15 5.05.170 Fees. 16 In addition to the application fees established by this Chapter, the Mayor and 17 Common Council may pass by resolution a regulatory fee for each license type to defray the reasonable regulatory costs to the City of San Bernardino for 18 performing investigations, inspections, audits, enforcing orders, and the 19 administrative enforcement and adjudication contemplated by this Chapter. 20 5.05.180 Amendments. 21 Pursuant to Section 9217 of the California Elections Code, the Mayor and 22 Common Council have reserved the right and authority to amend or repeal this 23 Chapter without any restrictions. 24 SECTION 4. MAYOR AND COMMON COUNCIL TO MAKE FUTURE AMENDMENTS TO VOTER APPROVED ORDINANCE. 25 26 This is a Mayor and Common Council sponsored initiative ordinance which traditionally would only be subject to amendment by the voters of the City of San 27 Bernardino. However, pursuant to Section 9217 of the California Elections Code 28 the Mayor and Common Council reserve the right and authority to amend or 19 I repeal the ordinance without any restrictions. 2 SECTION 5. COMPETING MEASURES. 3 In the event that this measure and another measure or measures relating to the 4 regulation of marijuana in the City of San Bernardino appear on the same ballot, 5 the provisions of the other measure or measures shall be deemed to be in conflict with this measure. In the event that this measure shall receive a greater number 6 of affirmative votes required to pass than the other measure or measures, the 7 provisions of this measure shall prevail in their entirety over the competing measure or measures, and the competing measure or measures shall be null and 8 void. 9 SECTION 6. EFFECTIVE DATE. 10 After its adoption by the voters, this ordinance shall be in full force and effect ten 11 (10) days after the vote is declared by the legislative body, pursuant to the 12 provisions of Elections Code sections 9217 and 15400 and as provided by law. 13 SECTION 8. SEVERABILITY. 14 If any provision of this Ordinance or the application thereof to any person or 15 circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid 16 provision or application, and to this end the provisions of this ordinance are 17 severable. The People of the City of San Bernardino hereby declare that they would have adopted this Ordinance irrespective of the invalidity of any particular 18 portion thereof. 19 20 21 22 23 24 25 26 27 28 20 Entered Into Rec. at CC mtg.� l.� by: Agenda Item o: pM DODSON & ASSOCIATES by: � 21-501N. ARROWHEAD AVENUE City Clerk SAN BERNARDINO, CA 92405 City of San Bernardino TEL(909) 882-3612 • FAX(909) 882-7015 E-MAIL tda e,tdaenv.com L MEMORANDUM August 1 , 2016 From: Tom Dodson To: Mr. Steven P. Graham, Deputy City Attorney Subj: CEQA compliance for a new Ordinance of the City of San Bernardino to Regulate the Establishment and Operation of Commercial Marijuana Businesses The City of San Bernardino is considering adoption of a new ordinance that will regulate the establishment and operation of commercial marijuana businesses. Formal opposition has been expressed to the City placing this new ordinance (Chapter 5.05 of the San Bernardino Municipal Code would be repealed in its entirety and replaced with a new Chapter 5.05, Commercial Marijuana Activities) on the ballot for approval by the voters of the City. The primary basis for this opposition is that the City must first perform a review of the new Chapter 5.05 for compliance with the California Environmental Quality Act (CEQA). The opposition claims that the City must prepare an Environmental Impact Report (EIR) as the only available environmental determination to comply with CEQA, citing Friends of Sierra Madre v. the City of Sierra Madre 25 Cal.4th 165 (2001) ("that the discretionary submission of a ballot measure to the voters by a city council is not exempt from CEQA") as the basis for this conclusion. The City has requested that Tom Dodson & Associates (TDA) conduct a professional review of the available options for processing CEQA compliance based on CEQA the statute and the State CEQA Guidelines. What follows is my evaluation of the available CEQA processing options for the City in this situation. Note the following evaluation is a review of the existing situation based on 40 years of professional experience as a CEQA practitioner, not a legal review. Thus, my recommendations should not be viewed as legal advice, but as a professional review of CEQA processing options from a consultant that has assisted hundreds of clients to make the most reasonable environmental determination for compliance with the statute and Guidelines for a given set of circumstances. In order to perform this analysis the essential first step is to examine the basic action/project being proposed by the City. If approved by the City, new Chapter 5.05 of the City's Municipal Code would be placed before City voters as a ballot measure. If approved by the City's voters, new Chapter 5.05 would allow "Commercial Marijuana Activities" (CMA) to be implemented within the City of San Bernardino corporate boundaries. However, this authorization is not open ended. Instead, new Chapter 5.05 creates an elaborate regulatory framework with which each CMA must comply before it can begin operation in the City. Thus, I would frame the whole of the project in this instance to consist of not just an open authorization to implement a CMA within the City, but authorization to implement a CMA if it meets the regulatory purpose of new Chapter 5.05 which is to protect public health, safety and welfare of residents and businesses by preserving peace and quiet in the vicinity of future marijuana businesses that comply with new Chapter 5.05 and are granted entitlements by the City to operate. The key issue is whether the regulatory framework established by new Chapter 5.05 eliminates the potential for significant adverse impact on the environment or forecloses the potential for any physical changes in the environment. Based on my review of new Chapter 5.05, 1 conclude and recommend to the City that with a minor text change in the new Chapter the potential for significant adverse impact can be foreclosed. However, I do not believe the regulatory framework in new Chapter 5.05 goes so far to eliminate the potential for any physical change in the environment. By permitting the CMA use as an acceptable land use (albeit highly circumscribed) within the City, the new Chapter 5.05 will inherently allow some physical modifications in the environment where such uses are granted entitlements in the future. Based on the citation above (Friends of Sierra Madre), the submission of a ballot measure to the voters by a city council must comply with CEQA requirements and therefore, it is clearly not automatically exempt from CEQA compliance. However, CEQA the statute and the State CEQA Guidelines do not automatically require the preparation of an EIR as the only method of compliance with the statute. CEQA and the Guidelines create a hierarchy of options for compliance and assign the CEQA lead agency, in this case the City of San Bernardino, the responsibility of selecting the best and most appropriate environmental determination for the specific circumstance. ANALYSIS The CEQA processing hierarchy goes as follows: 1 . Statutorily Exempt: The statute and Guidelines provide specific types of project that the legislature has concluded are not subject to the law. Statutory exemptions are addressed in two sections of the State CEQA Guidelines (Sections 15060, 1 5061 , and 15260 through 15285, and Article 12.5 (Agricultural Housing which does not apply here). 2. Categorical Exemptions: The statute and Guidelines identify certain types of projects (list of classes) that have been determined not to have a significant effect on the environment by the legislature and which are exempt from the provisions of CEQA (Sections 15300 through 15332). 3. Negative Declarations: If a project is determined to be subject to CEQA, but will not cause unavoidable significant adverse environmental impacts, a Negative Declaration can be prepared for the project for consideration and adoption by an agency's decision making body prior to approving the action/project. 4. EIR: If a project is determined to be subject to CEQA, but will cause any unavoidable significant adverse impacts, an EIR must be prepared for the project and the EIR must be certified by the agency's decision making body prior to approving the action/project. It is clear that preparation and certification of an EIR would be one mode of complying with CEQA for new Chapter 5.05. This is the most conservative and time consuming method of complying with CEQA and even if an EIR must be circulated more than one time before it can be found adequate (due to legal challenge), an agency will ultimately be able to approve a project for which an EIR has been prepared and certified. A Negative Declaration (even with mitigation measures) could also be prepared, but the opposition has already asserted that it can make a "fair argument" that certain impacts should be considered significant and adverse and the "fair argument" threshold sets the bar so low that there is no assurance a Negative Declaration would withstand legal challenge. A court could require the preparation of an EIR. I reviewed all 33 classes of projects that are Categorically Exempt. Based on my review, I conclude that none of the 33 classes of project would specifically include new Chapter 5.05. Language in Section 15308 (Actions by Regulatory Agencies for Protection of the Environment) might be stretched to encompass adopting new Chapter 5.05, but I would not recommend this approach because the City does not clearly fall under the concept of a regulatory agency). This brings us to the concept of Statutory Exemptions as outlined in the sections referenced above. I carefully reviewed the exemptions provided in Sections 15260 to 15285. Similar to Categorical Exemptions, I did not find any specific sections that are directly on point. One section, 15273 (Rates, Tolls, Fares, and Charges) might be stretched to cover new Chapter 5.05 because the City is seeking to obtain funds to support regulating CMAs. However, new Chapter 5.05 goes further than just a charge (authorization of a new land use), so I would not recommend this approach. The final set of potential Statutory Exemptions derives from the language in Sections 15060 and 15061 of the State CEQA Guidelines, which encompass "Preliminary Review" of a proposed action, including determining whether it is or is not a "project" subject to the statute. Section 1 5060( c) states that "An activity is not subject to CEQA if.- 1. The activity does not involve the exercise of discretionary powers by a public agency; In this instance the decision to approve and place new Chapter 5.05 on the ballot is a discretionary action. Therefore, this exemption does not apply to the proposed project. 2. The activity will not result in a direct or reasonably foreseeable indirect physical change in the environment; or In Section 9 of new Chapter 5.05 the text indicates that the City believes this is the appropriate environmental finding for compliance with CEQA. I do not concur. For example in Section 5.05.070(e)(6) the text states "the proposed Commercial Marijuana Activity will not create significant noise, traffic, odor, or other conditions or situations that may be objectionable or detrimental to other permitted uses in the vicinity". This is a clear acknowledgment that CMA may have foreseeable direct or indirect effects on the environment. I do not believe the finding in Section 5.05.070(e)(6) can be sustained under a legal challenge for this reason. 3. The activity is not a project as defined in Section 15378. Based on the California Supreme Court's finding in Friends of Sierra Madre, City submittal of a ballot measure can and should be construed as a project that is not exempt from CEQA. If we are to have access to any other alternative CEQA environmental determination than preparation of an EIR, our last resort is to the exemptions discussed in Section 15061 , Review for Exemption. Section 15061(b) states: A project is exempt from CEQA if. (1) The project is exempt by statute.... We examined this option above and concluded that none of the exemptions by statute apply to new Chapter 5.05. (2) The project is exempt pursuant to a categorical exemption.... We examined this option above and concluded that none of the Categorical Exemptions apply to new Chapter 5.05. (3) The activity is covered by the general rule that CEQA applies only to project which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. I believe the General Rule exemption outlined above should be used by the City for new Chapter 5.05 as it is the only plausible CEQA environmental deter- mination that can be completed in a short time frame and that may withstand legal challenge. Here is my reasoning and a suggested minor text amendment to new Chapter 5.05 for consideration. In section 5.05.010 of the proposed ordinance the text states: "Commercial Marijuana Activities shall comply with all provisions of the San Bernardino Municipal Code ("Code") , State Law.....and all other applicable local and state laws." Further, in Section 5.05.070(c)(1 5) the text states: "Evidence that the Applicant has acquired all necessary land use entitlements required under Title 19 of this Code, including any necessary environmental approvals under the California Environmental Quality Act ("CEQA');". Thus, future individual projects are clearly required to undergo CEQA review using the City's thresholds of significance. Again, in 5.05.070(e)(6) the text reads as follows: "The location, size, design, and operating characteristics of the proposed Commercial Marijuana Activity will not create significant noise, traffic, odor, or other conditions or situations that may be objectionable or detrimental to other permitted uses in the vicinity:". This section is establishing a narrow set of criteria that a CMA must fulfill if it is to be approved. I suggest changing the text in Section 5.05.070(e)(6) to read: The location, size, design, and operating characteristics of the proposed Commercial Marijuana Activity will not create any unavoidable significant adverse impacts to the environment based on the CEQA review of the project, including significant noise, traffic, odor, or other conditions or situations that may be objectionable or detrimental or adverse to public health, safety and welfare of the residents in the vicinity of the proposed CMA facility:" With this minor text change, the City has provided a comprehensive set of environmental criteria that a CMA must meet which also results in "certainty that there is no possibility that the activity in question may have a significant effect on the environment,". CONCLUSION In order to present the most legally defensible CEQA environmental determination, I recommend that the City utilize the General Rule exemption described in the preceding text. I have also suggested a minor change in the text that I believe will allow the City to assert that the "regulatory framework" established in new Chapter 5.05 allows the City to make a CEQA environmental determination with "certainty that there is no possibility that the activity in question may have a significant effect on the environment." With this change no CMA facility could be approved with any significant adverse environmental impacts. In my professional opinion this requirement is no more onerous than the limits on land use zones where a CMA facility can be implemented as outlined in Sections 5.05.1 50 and -160. Should you have any questions or further wish to discuss the preceding analysis and recommendations, please do not hesitate to contact me. 4W 904 Tom Dodson