HomeMy WebLinkAbout01-22-2018 Agenda BackupCITY OF SAN BERNARDINO
AGENDA
FOR THE
JOINT SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO
MONDAY, JANUARY 22, 2018
9:00 A.M. — CLOSED SESSION 9:30 A.M. — OPEN SESSION
COUNCIL CHAMBER • 201 NORTH °E° STREET • SAN BERNARDINO, CA 92401 • WWW.SBCITY.ORG
Virginia Marquez
COUNCIL MEMBER, WARD 1
Benito Barrios
COUNCIL MEMBER, WARD 2
John Valdivia
COUNCIL MEMBER, WARD 3
Fred Shorett
COUNCIL MEMBER, WARD 4
Henry Nickel
COUNCIL MEMBER, WARD 5
Bessine L. Richard
COUNCIL MEMBER, WARD 6
R. Carey Davis
James L. Mulvihill
COUNCIL MEMBER, WARD 7
Andrea M. Miller
CITY MANAGER
Gary D. Saenz
CITY ATTORNEY
Georgeann "Gigi" Hanna
CITY CLERK
David Kennedy
CITY TREASURER
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino.
o Anyone who wishes to speak during public comment or on a particular item will be required to fill out a
speaker slip. Speaker slips must be turned in to the City Clerk by 9:00 a.m. the day of the meeting.
o You may email your request to speak to publiccomments(aD-sbcity.org if you cannot turn it in in person
prior to 9 a.m. Each request will cover one speaker. Those who wish to speak must submit their own
request to be called on by the Mayor.
o Public comments for agenda items that are not public hearings will be limited to three minutes.
o There is a 6 -minute -per -person time limit for all comments, excluding public hearings.
o All who wish to speak, including Council members and staff, need to be recognized by the Mayor or
Mayor Pro Tempore before speaking.
o Please contact the City Clerk's Office (384-5002) prior to the meeting for any requests for reasonable
accommodation to include interpreters.
o All documents for public review are on file with the City Clerk's Office or may be accessed online by
going to http://www.sbcity.orp.
o Please turn off or mute your cell phone while the meeting is in session.
Joint Special Meeting Agenda January 22, 2018
CALL TO ORDER
Attendee Name Present Absent Late Arrived
Council Member, Ward 1 Virginia Marquez ❑ ❑ ❑
Council Member, Ward 2 Benito J. Barrios
❑
❑
❑
Council Member, Ward 3 John Valdivia
❑
❑
❑
Council Member, Ward 4 Fred Shorett
❑
❑
❑
Council Member, Ward 5 Henry Nickel
Council Member, Ward 6 Bessine L. Richard
Council Member, Ward 7 James Mulvihill
❑
❑
❑
❑
❑
❑
❑
❑
❑
Mayor R. Carey Davis
❑
❑
❑
City Clerk Georgeann "Gigi" Hanna
❑
❑
❑
City Attorney Gary D. Saenz
City Manager Andrea M. Miller
❑
❑
❑
❑
❑
❑
CLOSED SESSION
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
A three-minute limitation shall apply to each member of the public who wishes to
address the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency. No member of the public shall
be permitted to "share" his/her three minutes with any other member of the public.
A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant
to Government Code Section 54956.9(a) and (d)(1):
Kush Concepts, et al. v. City of San Bernardino, San Bernardino County Superior
Court Case No. CIVDS 1702131
Quiang Ye, Applicant, et al. v. City of San Bernardino, San Bernardino County
Superior Court Case No. CIVDS 1704276
Karmel Roe v. City of San Bernardino, et al., San Bernardino County Superior
Court Case No. CIVDS 1712424
CLOSED SESSION REPORT
INVOCATION AND PLEDGE OF ALLEGIANCE
Mayor and City Council of the City of San Bernardino Page 2 Printed 1/19/2018
Joint Special Meeting Agenda January 22, 2018
PUBLIC COMMENTS FOR ITEMS LISTED ON THIS AGENDA
A three-minute limitation shall apply to each member of the public who wishes to address
the Mayor and City Council on any item on the agenda, excluding public hearings. There is
no limit to the number of items that may be discussed within the three-minute time limit. To
be called on by the Mayor, please turn in individual speaker slips to the City Clerk by 9:00
a.m. the day of the meeting. If you wish, you may email your speaking request to
publiccomments(Dsbcity.org prior to the beginning of the meeting. Emailed requests to
speak will not be accepted from anyone but the person requesting to speak.
STAFF REPORTS
1. Cannabis Regulations
Recommendation: Receive and file verbal reports related to cannabis
laws and regulatory framework; Measure O litigation
status; status of other local agencies in the region;
potential public concerns and regulatory alternatives
related to business types, public consumption and
use, indoor and outdoor personal cultivation, special
events, unregulated operators, and operator
selection, and tax and fee revenue; review and
discuss and provide direction to staff.
2. Public Outreach, Town Hall Meetings, and Surveys
Recommendation:
3. Ballot Measure Timing
Recommendation:
PUBLIC HEARING
Receive and file a verbal report, review and discuss
options, and provide direction to staff.
Receive and file a verbal report, review and discuss
options, and provide direction to staff.
4. Extension of the Moratorium on Commercial Marijuana Land Uses and
Activities, Outdoor Personal Cultivation of Marijuana and Cannabis Events
Recommendation:
Adopt an Ordinance of the Mayor and City Council of
the City of San Bernardino, California, extending the
45 -day moratorium related to certain commercial
marijuana land uses and activities, outdoor personal
cultivation and cannabis events for up to 10 months
and 15 days.
5. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
Mayor and City Council of the City of San Bernardino Page 3 Printed 1/19/2018
Joint Special Meeting Agenda January 22, 2018
6. ADJOURNMENT
The next joint regular meeting of the Mayor and City Council and the Mayor and
City Council Acting as the Successor Agency to the Redevelopment Agency is
scheduled for 4:00 p.m., Wednesday, February 7, 2018, in the Council Chamber
at 201 North "E" Street, San Bernardino, California 92401. Closed Session will
begin at 4:00 p.m. and Open Session will begin at 5:00 p.m.
CERTIFICATION OF POSTING AGENDA
I, Georgeann "Gigi" Hanna, CMC, City Clerk for the City of San Bernardino, California, hereby
certify that the agenda for the Monday, January 22, 2018 special meeting of the Mayor and City
Council and the Mayor was posted on the City's bulletin board located in the breezeway of City
Hall, 300 North "D" Street, San Bernardino, California, at the San Bernardino Public Library, and
on the City's website www.ci.san-bernardino.ca.us on Friday, January 19, 2018.
I declare under the penalty of perjury that the foregoing is true and correct.
Georgeann "Glgi" Hanna, OMC, City Clerk
NOTICE: Any member of the public may address this meeting of the Mayor and City Council and
the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on
any item appearing on the agenda by approaching the microphone in the Council Chamber when
the item about which the member desires to speak is called and by asking to be recognized.
Any member of the public desiring to speak to the Mayor and City Council and the Mayor and
City Council Acting as the Successor Agency to the Redevelopment Agency concerning any
matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City
Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment
Agency may address the body at the end of the meeting, during the period reserved for public
comments. Said total period for public comments shall not exceed 60 minutes, unless
such time limit is extended by the Mayor and City Council and the Mayor and City
Council Acting as the Successor Agency to the Redevelopment Agency. A three minute
limitation shall apply to each member of the public, unless such time limit is extended by the
Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the
Redevelopment Agency. No member of the public shall be permitted to "share" his/her three
minutes with any other member of the public.
Speakers who wish to present documents to the governing body may hand the documents to
the City Clerk at the time the request to speak is made.
The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to
the Redevelopment Agency may refer any item raised by the public to staff, or to any
commission, board, bureau, or committee for appropriate action or have the item placed on the
next agenda of the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor
discussion held by the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency on any item which does not appear on the
agenda unless the action is otherwise authorized in accordance with the provisions of
subdivision (b) of Section 54954.2 of the Government Code.
Public comments will not be received on any item on the agenda when a public hearing has
been conducted and closed.
Mayor and City Council of the City of San Bernardino Page 4 Printed 1/19/2018
1.a
City of San Bernardino
Request for Council Action
Date: January 22, 2017
To: Honorable Mayor and City Council Members
Staff Report
From: Andrea M. Miller, City Manager
By: Mark Persico, AICP, Community Development Director
Subject: Cannabis Regulations
Recommendations
Receive and file verbal reports related to cannabis laws and regulatory framework;
Measure O litigation status; status of other local agencies in the region; potential public
concerns and regulatory alternatives related to business types, public consumption and
use, indoor and outdoor personal cultivation, special events, unregulated operators, and
operator selection, and tax and fee revenue; review and discuss and provide direction to
staff.
Background
On November 8, 2016, California voters approved Proposition 64, The Control,
Regulate, and Tax Adult Use of Marijuana Act (AUMA). Some of the provisions within
this Act took effect immediately to include legalized possession, transport, purchase,
use, and transfer of recreational marijuana for individuals 21 years of age or older, and
adult possession.
Additionally, on November 8, 2016, San Bernardino voters approved Measure O,
which garnered 26,037 votes, or 55.12% of the total. The measure, which was the
result of a citizens' petition, regulates marijuana businesses by establishing a
regulatory permit process, and the measure establishes a registration system and
requires the City to grant permits meeting the requirements of the measure.
On December 28, 2017, a court hearing was conducted regarding the validity of
Measure O — the November 2016 local ballot measure establishing a marijuana
permitting system. As of the drafting of this report, a final written decision has not been
issued by the courts.
Packet Pg. 5
1.a
Discussion Topics
Item 1: Cannabis Laws and Regulatory Framework
HdL has prepared an overview of State law and the various license types. The Bureau
of Cannabis Control is charged with reviewing and approving cannabis permits provided
the business first has a local permit (Attachment 1).
Item 2: Measure O Litigation Update
The City Attorney's Office will provide an update on the most recent court ruling and the
implications for the City.
Item 3: Status of other Local Agencies
A matrix of cannabis regulations is provided as additional context for the Mayor and City
Council as they set goals and policies for the City of San Bernardino cannabis
regulations.
Item 4: Potential Public Concerns and Regulation
The issues surrounding cannabis regulation are complex and constantly evolving. The
City of San Bernardino needs to be able to respond appropriately to the myriad of
issues and craft regulations tailored to our own needs.
The Mayor and City Council will set the policy direction and establish goals that will be
used to develop comprehensive regulations for the City of San Bernardino. Following
the goal setting exercise, staff and the consultant will draft an Ordinance(s) for Planning
Commission and ultimately Mayor and City Council consideration.
Item 5: Public Outreach, Town Hall Meetings and Surveys
If the Mayor and City Council believe additional public comments is necessary, staff will
develop an outreach schedule. The outreach phase would last approximately 30-45
days as directed.
Item 6: Tax and Fee Issues
Taxes require voter approval as outlined in the presentation provided by the City
Attorney's Office. Taxes are classified as a general tax to be used for "general
government" purposes or a "special tax" to be used for a designated purpose.
There are different voter approval thresholds for a general tax — 50% + 1 — versus a
special tax — 66.7%. A fee is designed to recover the full cost of the service being
provided. A full -cost recovery fee should recover the initial cost of reviewing the
application and the annual cost of monitoring the business including all public safety
and legal fees.
Packet Pg. 6
Conclusion
It is recommended that the Mayor and City Council take public comment and provide
policy direction and establish goals that can be used by City staff and the Planning
Commission to guide the development of cannabis regulations.
Attachments
Attachment 1 HdL Summary of Cannabis Regulations
Attachment 2 Power Point Presentation
Ward(s): All
Synopsis of Previous Council Actions:
1.a
Packet Pg. 7
Attach 1.b
SUMMARY OF CANNABIS REGULATIONS
(2017 Emergency Rules)
Temporary and Annual License Application Requirements
Temporary License
➢ Businesses may engage in commercial cannabis activities for 120 days while waiting for -the Bureau to process
the annual license (This may be extended 90 days).
➢ The applicant for a temporary license must have a valid license, permit, or other author!7,Ation issued by the
local jurisdiction.
➢ The temporary license must be for the same location and business type as the annual license being applied
for. 4f= _
Annual License
➢ State business licenses shall be renewed annually.
➢ Applicants can have multiple licenses for different btpinm, types, ekcept for a testing laboratory. Owners of
a testing laboratory are prohibited from conducteg°other commercial cannabis activities.
➢ Each license shall be designated as,, A-License,(Adult'-tse) or M -License (Medicinal) except for testing
laboratories which may serve both markets.
➢ The application must be completed byan "owner's As defined by §5003.
➢ All licensees and employees must be 21 years of -age or older.
➢ All applications shall contain a description of the business organizational structure.
➢ All application shall include a detakd description of the applicant's operating procedures including:
o Inventory procedures
o Nondaboratory�quality control procedures
o Security procedures
Premises Requirements
➢ SB94 - Tremi4es means the designated structure or structures and land specified in the application that is
owned, leased, or,6therwise held under the control of the applicant or licensee where the commercial cannabis
activity will be or is conducted. The premises shall be a contiguous area and shall only, be occupied by one
licensee."
E4ch Hoen se shall have a designated premises for the licensee's commercial cannabis activity. The Bureau
May allow a licensee to have the same licensed premises for two separate commercial cannabis licenses if
alt of the following criteria are met:
o The licensee holds both a A -license and an M -license for the identical type of business.
o The licensee holds both license in identical Name, business formation and ownership.
o The licensee only conducts one type of commercial cannabis activity on the premises.
o Records are kept separately for each license and clearly indicate that the records are related to the
A -license or the M -license.
➢ The premises shall not be located within 600 feet radius of a school, daycare, or youth center unless a local
jurisdiction issues the business a permit for a lesser distance.
➢ A licensee shall not sublet any portion of the licensed premises.
Packet Pg. 8
Delivering Revenue,
1340 Valley Vista Drive
909.861.4335
H�''
Insight and Efficiency
Suite 200
Fax 909.861.7726
To Local Government
Diamond Bar, CA 91765
888.861.0220
C 0 M P A N t E S
www.hdlcompanies.com
SUMMARY OF CANNABIS REGULATIONS
(2017 Emergency Rules)
Temporary and Annual License Application Requirements
Temporary License
➢ Businesses may engage in commercial cannabis activities for 120 days while waiting for -the Bureau to process
the annual license (This may be extended 90 days).
➢ The applicant for a temporary license must have a valid license, permit, or other author!7,Ation issued by the
local jurisdiction.
➢ The temporary license must be for the same location and business type as the annual license being applied
for. 4f= _
Annual License
➢ State business licenses shall be renewed annually.
➢ Applicants can have multiple licenses for different btpinm, types, ekcept for a testing laboratory. Owners of
a testing laboratory are prohibited from conducteg°other commercial cannabis activities.
➢ Each license shall be designated as,, A-License,(Adult'-tse) or M -License (Medicinal) except for testing
laboratories which may serve both markets.
➢ The application must be completed byan "owner's As defined by §5003.
➢ All licensees and employees must be 21 years of -age or older.
➢ All applications shall contain a description of the business organizational structure.
➢ All application shall include a detakd description of the applicant's operating procedures including:
o Inventory procedures
o Nondaboratory�quality control procedures
o Security procedures
Premises Requirements
➢ SB94 - Tremi4es means the designated structure or structures and land specified in the application that is
owned, leased, or,6therwise held under the control of the applicant or licensee where the commercial cannabis
activity will be or is conducted. The premises shall be a contiguous area and shall only, be occupied by one
licensee."
E4ch Hoen se shall have a designated premises for the licensee's commercial cannabis activity. The Bureau
May allow a licensee to have the same licensed premises for two separate commercial cannabis licenses if
alt of the following criteria are met:
o The licensee holds both a A -license and an M -license for the identical type of business.
o The licensee holds both license in identical Name, business formation and ownership.
o The licensee only conducts one type of commercial cannabis activity on the premises.
o Records are kept separately for each license and clearly indicate that the records are related to the
A -license or the M -license.
➢ The premises shall not be located within 600 feet radius of a school, daycare, or youth center unless a local
jurisdiction issues the business a permit for a lesser distance.
➢ A licensee shall not sublet any portion of the licensed premises.
Packet Pg. 8
1.b
Licensing Requirements Specific to Business Type
Cultivation Licenses
➢ Cultivations are regulated by the California Department of Food and Agriculture (CDFA), CalCannabis
Cultivation Licensing.
➢ A Cultivation licensee shall be valid for 12 months from the date of issuance.
➢ Cultivation licenses are divided into three categories:
o Cultivators — Types range from specialty cottage to medium-size grows
o Nurseries — Cultivation of cannabis solely as a nursery, including cloning and seed propagation
o Processors — A site that conducts only trimming, drying, curing, grading, or packaging
➢ Every business entity shall obtain a separate license for each premises where it engages in commercial
cannabis cultivation.
➢ Cultivation licenses are not transferrable or assignable to any other person, entity or property.
➢ A licensee may hold both an A -license and an M -license on the same premises, provided the inventory for
each license type is kept separate and distinct.
o Cultivation licensee are allowed to conduct the following activities; Planting, Growing, Harvesting,
Drying, Curing, Grading, and Trimming
➢ A licensee shall be limited to one (1) Medium Outdoor, or one (1) Medium Indoor, or one (1) Medium Mixed -
Light A -license or M -license. This rule shall remain in effect until January 1, 2023.
Distributor Licenses
➢ Distributors are regulated by the Bureau of Cannabis Control.
➢ Distributors shall not store or distribute non -cannabis goods on or from the licensed distribution facility.
➢ Distributors may provide cannabis goods storage -only services to other licensees unrelated to the quality
assurance and laboratory testing processes.
➢ Distributors must arrange for laboratory testing and quality assurance, verify proper packaging and labeling,
collect taxes, transport cannabis and cannabis products and may act as a wholesaler.
➢ Distributors may package, re -package, label, and re -label cannabis for retail sales.
➢ Distributors shall not package, re -package, label, or re -label manufactured cannabis products except for when
the distributor also holds a manufacturing license and its doing so with its own manufactured cannabis
products.
➢ A Distributor -Transporter Only licensee shell comply with all of the requirements of a distributor license, except
for those related to quality assurance and testing.
Manufacturing Licenses
➢ Manufacturers are regulated by the California Department of Public Health (CDPH), Manufactured Cannabis
Safety Branch (MCSB).
➢ Manufacturing licenses are divided into two categories:
o A -license — Cannabis products for sale in the adult -use market
o M -license — Cannabis products for sale in the medicinal market
➢ Licenses are divided into four types:
o Type 7 — Extraction using volatile solvents (butane, hexane, pentane, propane)
o Type 6 — Extraction using a non-volatile solvent or mechanical method (food -grade butter, oil, water,
ethanol, carbon dioxide)
o Type N — Infusions (using pre -extracted oils to create edibles, beverages, capsules, vape cartridges,
tinctures or topicals)
o Type P — Packaging and labeling only (shall not conduct activities discussed above in Type 7, Type
6, or Type N)
➢ Manufacturers must have written Standard Operating Procedures (SOPs) for:
o Inventory control
o Quality control
o Transportation
o Odor mitigation
Packet Pg. 9
1.b
o Security measures
o Waste management
➢ Production of cannabis products must occur in a sanitary and hazard -free environment.
➢ Extractions using CO2 or a volatile solvent must be conducted using a closed-loop system, certified by a
California -licensed engineer.
➢ Volatile solvent, CO2 and ethanol extractions must be certified by the local fire code official.
➢ Edible products are limited to a maximum of 10 mg of THC per serving and 100 mg of THC per package.
➢ Other products, such as tinctures, capsules and topicals, are limited to a maximum of 1,000 mg of THC per
package for the adult -use market and 2,000 mg of THC per package for the medicinal market.
➢ Cannabis products must be packaged before they are released to a distributor.
Retail Licenses
➢ Retailers are regulated by the Bureau of Cannabis Control.
➢ Retail establishments may only be open between 6am and 10pm.
➢ All products must be prelabeled and packaged before arriving at the premises. 4. ,
➢ Retailers shall only sell adult -use cannabis goods to individuals who are at least 21 years of age.
➢ Retailers shall only sell medicinal cannabis goods to individuals at least 18 years of age who possess a valid
physician's recommendation.
➢ Customers shall only be granted access to the retail area after the retailer has examined the individual's valid
proof of identification and verified that the individual is at least 21 years for adult -use purchases or at least 18
years with a valid physician's recommendation for medicinal purchases.
➢ Retailers may sell non -cannabis products on a licensed premises if the licensee remains compliant with local
regulations.
➢ Alcohol, tobacco and tobacco products may not be sold at any licensed premises.
Microbusiness Licenses
➢ Microbusinesses are regulated by the Bureau of Cannabis Control.
➢ Microbusiness licensee must conduct at least three of the four following commercial activities:
o Cultivation (less than 10,000 sq. ft)
o Manufacturing (Level 1, Type 6)
o Distribution
o Retail
➢ Microbusiness licensee must comply with all the rules and regulations that apply to activities it's conducting.
➢ Microbusiness licensee may only conduct commercial cannabis activities requested in the license application.
Non -Storefront Retailers
➢ Non -Storefront Retailers are regulated by the Bureau of Cannabis Control.
➢ Non -Storefront Retailer licensees is authorized to conduct retail cannabis sales exclusively by delivery.
➢ Non -Storefront Retailer licensees shall comply with all the requirements applicable to a Retailer licensee,
except for those provisions related to public access to the premises.
➢ Non -Storefront Retailer licensees shall be closed to the public.
Retail Delivery Activity
➢ All deliveries of cannabis goods shall be performed by a delivery employee of a retailer.
➢ Delivery employee shall be at least 21 years of age.
➢ All deliveries shall be made in person. A delivery of cannabis goods shall not be made through the use of an
unmanned vehicle.
➢ A retailer may only deliver cannabis goods to a physical address in the State of California.
➢ A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global Positioning System
(GPS) device for identifying the geographic location of the delivery vehicle.
➢ Retail delivery employees shall only travel to and from delivery addresses. Employees shall not deviate from
the delivery path described in the Delivery Routs section of the transportation manifest, except for necessary
vehicle repair, because of road conditions.
Packet Pg. 10
1.b
Testing Laboratories Licenses
➢ Testing Laboratories are regulated by Bureau of Cannabis Control.
➢ A licensed Testing Laboratory shall maintain ISO/IEC 17025 accreditation.
➢ Testing Laboratories must perform testing for the following:
o Cannabinoids
o Heavy metals
o Microbial impurities
o Moisture content and water activity
o Mycotoxins
o Residual pesticides
o Residual solvents and processing chemicals and
o terpenoids and
o homogeneity
➢ Testing Laboratories will be required to produce a certificate of analysis containing the pass/fail results.
➢ The testing requirements for cannabis products will be phased in.
➢ Owners of a Testing Laboratory are prohibited from conducting other commercial cannabis activities.
Temporary Cannabis Events Licenses
➢ Temporary cannabis event license will not be issued for more than 4 days and will not be issued separately
for consecutive days for the same event.
➢ An application for a temporary cannabis event license shall be submitted to the Bureau no less than 60 days
before the first day of the event.
➢ An application for a temporary cannabis event license shall contain written approval from the local jurisdiction
authorizing the applicant to engage in onsite cannabis sales to, and onsite consumption by, persons 21 years.
➢ A temporary cannabis event license shall list all the licensees that will be providing onsite sales of cannabis
goods at the event.
➢ All sales at an event shall be performed by a retailer or microbusiness authorized to sell cannabis to retail
customers.
➢ Consumption of alcohol or tobacco shall not be allowed on the cannabis event premises.
➢ All cannabis goods shall:
o Be transported to the site by a distributor
o Comply with all requirements for laboratory testing and labeling
o Adhere to all track and trace requirements
o Be placed in an exit package
➢ An event organizer, shall hire or contract for security personnel to provide security services at the event
➢ Access to the area where cannabis consumption is allowed shall be restricted to persons 21 years or older.
➢ Cannabis cannot be consumed in any location visible from any public place or non -age restricted area.
Packet Pg. 11
H,'dL�' COPANIES
Delivering Revenue, 1340 Valley Vista Drive
Insight and Efficiency Suite 200
To Local Government Diamond Bar, CA 91765
CALIFORNIA EMERGENCY REGULATIONS
LICENSE CLASSIFICATIONS
909.861.4335
Fax 909.861.7726
888.861.0220
www.hdicompanies.com
1.b
ADULT -USE / MEDICINAL LICENSE TYRE
DESCRIPTIO
Type 1— Cultivation; Specialty Outdoor
Less than or equal to 5,000 square feet of total canopy size on one premises, or up
Oversight: CDFA
to 50 mature plants on noncontiguous plots.
Type 2A—Cultivation; Specialty Indoor
Between 501 and 5,000 square feet of total canopy size on one premises.
Oversight: CDFA
Type 113 —Cultivation; Specialty Mixed -Light;
Between 2,501 and 5,000 square feet of total canopy size on one premises. Tier 1
Tier 1 and 2
applies to the use of artificial light at a rate of six watts per square foot or less; Tier
Oversight: CDFA
2 applies to the use of artificial light at a rate above six and below or equal to
twenty-five watts per square foot.
Type 1C—Cultivation; Specialty Cottage
Up to 25 mature plants for outdoor cultivation on one premises.
Outdoor
Oversight: CDFA
Type 1C — Cultivation; Specialty Cottage Up to 500 square feet of total canopy size for indoor cultivation, on one premises.
Indoor
Oversight: CDFA
Type 1C — Cultivation; Specialty Cottage Up to 2,500 square feet of total canopy size for mixed -light cultivation, on one
Mixed -Light; Tier 1 and 2 premises. Tier 1 applies to the use of artificial light at a rate of six watts per square
Oversight: CDFA foot or less; Tier 2 applies to the use of artificial light at a rate above six and below
or equal to twenty-five watts per square foot.
Type 2—Cultivation; Small Outdoor Between 5,001 and 10,000 square feet, inclusive, of total canopy size on one
Oversight: CDFA premises.
Type 2A — Cultivation; Small Indoor
Between 5,001 and 10,000 square feet, inclusive, of total canopy size on one
Oversight: CDFA
premises.
Type 2B —Cultivation; Small Mixed -Light; Tier
Between 5,001 and 10,000 square feet, inclusive, of total canopy size on one
1 and 2
premises. Tier 1 applies to the use of artificial light at a rate of six watts per square
Oversight: CDFA
foot or less; Tier 2 applies to the use of artificial light at a rate above six and below
or equal to twenty-five watts per square foot.
Type 3 — Cultivation; Medium Outdoor
From 10,001 square feet to one acre, inclusive, of total canopy size on one
Oversight: CDFA
premises.
License limit until 01/01/23
Type 3A — Cultivation; Medium Indoor
Between 10,001 and 22,000 square feet, inclusive, of total canopy size on one
Oversight: CDFA
premises.
License limit until 01/01/23
Type 3B —Cultivation; Medium Mixed -Light;
Between 10,001 and 22,000 square feet, inclusive, of total canopy size on one
Tier 1 and 2
premises. Tier 1 applies to the use of artificial light at a rate of six watts per square
Oversight: CDFA
foot or less;
License limit until 01/01/23
Tier 2 applies to the use of artificial light at a rate above six and below or equal to
twenty-five watts per square foot.
Type 4—Cultivation; Nursery
Shall only have clones, immature plants, seeds, and other agricultural products
Oversight: CDFA
used specifically for the propagation and cultivation of cannabis.
Type 5 — Cultivation; Outdoor; Large
Greater than one acre, inclusive, of total canopy size on one premises. No licenses
Oversight: CDFA
shall be issued before January 1, 2023.
May not be issued until after 01/01/23
Page 1 of 2
Packet Pg. 12
1.b
ADULT -USE / MEDICINAL LICENSE TYPE I DESCRIPTION I
Type 5A —Cultivation; Indoor; Large Greater than 22,000 square feet, inclusive, of total canopy size on one premises.
Oversight: CDFA No licenses shall be issued before January 1, 2023.
May iwL vc a„jed until after 01/01/23
Type 513 —Cultivation; Mixed -Light; Large
Greater than 22,000 square feet, inclusive, of total canopy size on one premises.
Oversight: CDFA
No licenses shall be issued before January 1, 2023.
ae issued until after 01/01/23
Type 6 — Manufacturer Level 1 [using non-
Extraction and/or infusion processes, including processing, preparing, making,
volatile solvents]
packaging, or labeling of cannabis products (i.e. concentrates, edibles, and oils).
Oversight: CDPH
Type 7 — Manufacturer Level 2 [using volatile
Extraction and/or infusion processes, including processing, preparing, making,
solvents]
packaging, or labeling of products containing cannabis (i.e. concentrates, edibles,
Oversight: CDPH
and oils).
Type N — Manufacturer Non -Extraction
Manufacturers that produce edibles, topicals, or other types of cannabis products
Oversight: CDPH
other than extracts or concentrates, but that do not conduct extractions.
Type P — Manufacturer; Packaging and
Manufacturers that only package or repackage cannabis products or label or relabel
Labeling
the cannabis product container.
Oversight: CDPH
Type 8 —Testing Laboratory Perform quality assurance testing for compliance with state law regarding content
Oversight: BCC/CDPH (i.e. THC, CBD, CBDA, etc.), pesticide residue, contaminants, impurities, and
labeling. May not hold or have an ownership interest in any other license type.
Type 9 — Non -Storefront Retailer Shall be authorized to conduct retail cannabis sales exclusively by delivery. Shall
Oversight: BCC comply with all the requirements applicable to Type 10 Retailer and shall be closed
to the public.
Type 10—Retailer An established storefront open to the public. Licensed to sell/deliver cannabis or
Oversight: BCC cannabis products.
Type 11— Distributor
Licensed to store, provide cannabis transport, arrange for testing, and to conduct
Oversight: BCC
quality assurance regarding labeling and packaging prior to delivery to retailer.
Type 12 — Microbusiness
Licensed to cultivate (less than 10,000 sq. ft.), distribute/transport, manufacture,
Oversight: BCC
and retail on a small scale. Must be perform at least three of the four activities.
[Type 13] — Distribution Transportation Only Authorized to transport cannabis goods between licensees. Shall comply with all
Oversight: BCC the requirements of a Type 11, except for those related to quality assurance and
testing.
Cannabis Event Organizer A temporary cannabis event license shall only be issued to a person who holds a
Oversight: BCC cannabis event organizer license issued by the Bureau.
Processor
A cultivation site that conducts only trimming, drying, curing, grading, packaging, or
Oversight: CDFA
labeling of cannabis and nonmanufactured cannabis products.
Page 2 of 2
Packet Pg. 13
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CANNABIS POLICY
MEETING
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PacPg. 15a
ABOUT
HDL
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Serves:
— 303 cities
— 48 counties
— 108 transaction districts
Partnered with over 100 local agencies to
develop cannabis policies
Team consists of former policymakers,
law enforcement and cannabis regulators
with State, County and local level
experience
HdL staff has experience conducting over
11,000 cannabis compliance reviews in
Colorado, California and Nevada
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CALIFORNIA CANNABIS LAWS
2015
• Medical Cannabis
• Regulation and
Safety
• Act (MCRSA)
2016
• Proposition 64
•Adult Use of
Marijuana Act
(AUMA)
2017
• Trailer Bill SB 94:
• Medical &Adult
Use Cannabis
• Regulation and
Safety Act; AB 133
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Packet Pg. 18
ATTORNEY GENERAL FEDERAL ENFORCEMENT POLICY
January 4, 2018
AG rescinds
2013 Cole
Memo
FinCEN
Guidelines
from 2014
Each state AG
will be free to
decide how
aggressively
they wish to
enforce federal
marijuana laws
Rohrabacher-
Blumenauer
amendment
January 19,
2018
Criminal
Action vs Civil
Action
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Medicinal vs
Adult -Use
Packet Pg. 19
a
TRAILER BILL SB 94:
Medicinal & Adult Cannabis Regulation and Safety Act
Local Contact
Requires local agency to establish local contact for their
jurisdiction
Notification
• • • The State must notify local jurisdictions when it receives a
commercial cannabis application.
Unified Regulatory System
in Merging medicinal and adult -use regulations together
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Packet Pg. 20
AUTHORIT- "
Local agencies shall have the right to
ban any or all commercial cannabis
businesses activity in the City
The law shall not limit local jurisdictions
to adopt and enforce local ordinances
to regulate businesses from local zoning
and land use requirements
The law does not supersede or limit
existing local authority for law
enforcement activity, enforcement of
local zoning requirements or local
ordinances
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Packet Pg. 21
SB94 OTHER KEY CHANGES
Starting on January 1, 2018 temporary
permits may be issued up to 4 months
until permanent licenses are either
approved or denied.
Vertical integration will now be
permitted except for testing labs
There will no longer be a
transportation license issued
Local Regulatory Ordinances will not
be subject to CEQA until July 1, 2019
Establishes a Non -Store Front License
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Packet Pg. 22
PROPOSITION 64 ELECTION RESULTS
Statewide
passed with 56% of the vote;
44% opposed
San Bernardino County
52.54% of voters supported;
47.46% opposed
City of San Bernardino
55.12% of voters supported;
44.88% opposed
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Packet Pg. 23
Measure 0 Litigation Update
Oral update from the City Attorney's Office
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Packet Pg. 24
STATUS OF
OTHER LOCAL
AGENCIES IN
THE REGION
O City of Blythe
O City of Coachella
O Cathedral City
O City of Desert Hot Springs
City of Moreno Valley
O Palm Springs
City of Riverside
O City of Perris
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Packet Pg. 26
CITY OF SAN BERNARDINO
Goals & Objectives -Community Priorities
Public Safety Environmental
Protection
Neighborhood
and Land Use
Protection
Access by
Youth
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Packet Pg. 27
PUBLIC CONSUMPTION
City should prioritizes protecting the public
health , safety, and general welfare by
providing a cannabis smoke-free environment
in public and private places where non -
cannabis smokers may be exposed to
secondhand cannabis smoke
There is no constitutional right to smoke
cannabis in public
Should edibles be allowed as part of public
consumption or not in local law?
Cannabis smoking shall be prohibited within
one thousand (1000) feet at the following:
Any school (k-12) public or private
Day care center
Youth centers
Any library, park, or areas in which the
primary purpose is used for minors
Any alcohol rehabilitations centers or
substance abuse facility.
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Packet Pg. 28
PERSONAL USE CULTIVATION
✓ Grants person right to cultivate (indoor) up to six plants
✓ Can be subject to reasonable local regulations
v1 Can prohibit outdoor cultivation
✓ The primary use of the property must be for a residence
V Must comply with building and construction code
✓ Use of
gas products
or generators for cultivation are prohibited
✓ Any structure
used
must be secure and fully enclosed
✓ Must have written consent of the property owner
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Packet Pg. 29
SPECIAL EVENT
To obtain a temporary event license, the
event organizer must first apply for and
obtain a cannabis event organizer license
California Code of Regulations Section
5600.
A temporary cannabis event license shall
only be issued to a person who holds a
cannabis event organizer license per
California Code of Regulations Section
5601.
Must have written approval from the local
jurisdiction authorizing the applicant to
engaged in onsite cannabis sale to, and
onsite consumption by persons 21 years of
age or older at the event.
No temporary cannabis event license will
be issued for more than 4 days.
CULGRAm
�ANNA�S
BURS
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REGULATED COMMERCIAL
CANNABIS
• Police Department oversight
• Cost recovery through fees
• Generates new general fund
revenues through taxes
• City controls who, what, when, where
• Discourages black market
UNREGULATED COMMERCIAL
CANNABIS
• Demand for cannabis remains the
same
• Accessibility from delivery services
and neighboring jurisdictions
• Pushes local market underground
• Cost to City increases without
resources to pay for it
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PUBLIC SAFETY CONCERNS
• Bad actors
• Youth exposed to grow sites in
residential property
• Black market diversion/inversion
• Illegal cultivation activities
• Illegal business activities
• Driving while impaired
• Increased traffic from Retailers
PUBLIC HEALTH CONCERNS
• Bad odors
• Pollutants/Air Quality
• Overdose Response Calls
• Access by youth in
homes/illegal sales
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Packet Pg. 33
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STARTING NOW IS IMPORTANT BECAUSE:
State licenses
have began to be
issued
January 2, 2018
Regulations are
under
development
and review
rAidElL_�
Investors &
businesses
are deciding
where to locate
It will be legal:
The must either
establish/maintain
a ban or
regulate it
T T 'I T 4-a
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MARIJUANA
POLICY
DEVELOMENT
"Policies designed today will help shape
how your industry looks tomorrow:"
-HdL Companies
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SUCCESS
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A REGULATORY SYSTEM CAN:
N
✓ Give the local agency authority and
control over licensing
M
✓ Require applicants to comply with N
robust requirements
✓ Enhance accountability for security
and product safety
✓ Reduce intervention from the Federal
Government by complying with the
Cole Memo and other state laws
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A REGULATORY ORDINANCE CAN
INCLUDE:
N
C
O
R
7
Limited number of business licenses
N
R
✓ Access control requirements
U
✓ Police access
M
Police background checks "
E
Record reporting/retention
requirements
Investigation and inspection protocols 2
Good neighbor policy mitigation
Suspension, fines, and permit
revocation
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CITY COUNCIL SETS CANNABIS
REGULATORY POLICIES ON:
• Cultivation
• Microbusiness
• Manufacturing
• Testing Labs
• Delivery/Non Store Front
Retailer
• Retail-Medicinal/Adult-Use
• Distribution Facilities
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PUBLIC SAFETY RISK ASSESSMENT
REGULATED CANNABIS
ALLOWS POLICE TO:
• Monitor business practices
• Conduct background checks
• Audit customer transactions
• Approve security plans
• Offset resource cost for staffs time
• Regulate time, place, and manner
requirements
UNREGULATED ILLEGAL
SALE OF CANNABIS:
• Reduces police power due to limited
search and seizure laws under Prop 64
• Makes it difficult to gather intelligence
information
• Encourages black market sales
• Creates a reliance on public safety
resources with no mechanism for cost
recovery
• Results in violent crimes/property theft
• No control regarding sales to youth
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APPLICATION
N
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PROCESS
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Merit based process selection for applicants that includes:
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• Applicants meeting specified regulatory standards
2
• Proposed location is properly zoned
• Completion of background check
• Payment of application fees
• Ongoing payment to City to recover cost
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PLANNING
DEPARTMENT
PROCESS
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Allows you to be business
friendly, nimble and
expeditious
Establishes one process o -
Requires compliance with
operational standards
Amendments to Zoning
Ordinance needed to
accommodate cannabis
businesses
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PROCESS FOR SUCCESSFUL REGULATORY
FRAMEWORK DEVELOPMENT
Jan —Feb
March- April May —June
Educate the community
Conduct community survey/stakeholder meeting
Draft a regulatory framework
Develop a cost recovery plan
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PROCESS FOR SUCCESSFUL REGULATORY
FRAMEWORK DEVELOPMENT
Jan —Feb
March -April
May — June
Conduct study session &public hearings on any
regulatory and zoning ordinance revisions
Adopt a resolution approving a cost recovery plan and
application procedures or Banning Cannabis Use Hdy
Packet Pg. 46
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PROCESS FOR SUCCESSFUL REGULATORY
FRAMEWORK DEVELOPMENT
Jan —Feb
March -April May —June
✓ Develop a tax policy
�/ ✓ Adopt a resolution placing a tax measure on
the November 2018 ballot
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CANNABIS ECONOMIC TRENDS
Cannabis industry set to generate
$7.6 billion in California by 2020
Local communities are looking to
benefit financially from
commercial companies
Creates jobs in the community
directly and indirectly
Misconceptions of sales/use tax
exemption H&S 11362.71
Health Benefits and Negative
Impacts
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Packet Pg. 49
CANNABIS STATE AND LOCAL TAX BATF
State Cannabis Excise Tax
(Applies to medical and non-medical)
Retail Tax
15%
Gross Receipts of Retail Sales
Cultivation Tax
$9.25/oz. Flowers
$2.75/oz. Leaves
Sales and Use Tax: 7.25% +
Adult -Use Subject to Tax
Medicinal May be Subject to Tax
■ State General Fund (3.9375%)
Local Public Safety Fund (.50%)
■ Local Revenue Fund (1.5625%)
■ County Transportation Fund (.25%)
■ City/County Operations Fund (1.00%)
City Cannabis Tax
(Medicinal /Adult —Use)
XX% of Gross Receipts
$XX Per Square Feet
$XX Flat Rate
$XX Per Weight
City Cost Recovery Fees
(Prop 26)
(Medicinal/Adult-Use)
$XX Application Fee
$XX License Fee
$XX Renewal Fee
$XX Administration Fee
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REVENUE GENERATING STRATEGIES
Standard fee to recover
City costs
General tax to be
considered by votes in
November 2018; 50%
+1;
Tax to general fund
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Packet Pg. 51
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DEVELOPMENT AGREEMENTS
N
0
Do They Circumvent Prop 218?
N
R
What is theose ur of Development Agreements (CGC
p p
65864) U)
M
• Lack of certainty in the approval of a development project can result in a
waste of resources, escalate the cost of housing and other developments
to the consumer
• The lack of public facilities such as streets, sewage, transportation,
drinking water, schools and utility facilities `
U
Who nas right tntne property for DA's (CGC 6586.5)
• The property owner or other persons having a legal or equitable interest
in the property U,-1v
Packet Pg. 52
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DEVELOPMENT AGREEMENTS (cont.)
N
Do They Circumvent Prop 218?
N
-0R
What limitations does the City/Countyhave on the
U
to
agreement? (Government Code 65865.2) M
N
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• The development agreement may include conditions, terms, restrictions, and
requirements for subsequent discretionary actions, provided that such
a
actions shall not prevent development of the land for the uses and to the
density or intensity of the development set forth in the agreement. 2
Can development agreements be challenged? (Government code
65867.5 (a)
• A development agreement is a legislative act that shall be approved by
ordinance and is subject to referendum. wi-id
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Packet Pg. 53
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NOVEMBER 6, 2018 BALLOT
MEASURE:
N
O
R
7
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May 1, Draft Tax Ordinance and y
R
conduct workshop to City Council to
U
develop tax rates
M
June 5, Reading of ordinance and N
Public Hearing
Aug 10, Ballot Measure Resolution
due to the County N
Q1
Aug 22, Primary Arguments due N
Aug 27, Rebuttal Arguments and City
U
Attorney's Impartial Analysis Due
Nov 6, Election Day
a
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Packet Pg. 54
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NOVEMBER 6, 2018 BALLOT
MEASURE:
N
O
R
7
a1
May 1, Draft Tax Ordinance and y
R
conduct workshop to City Council to
U
develop tax rates
M
June 5, Reading of ordinance and N
Public Hearing
Aug 10, Ballot Measure Resolution
due to the County N
Q1
Aug 22, Primary Arguments due N
Aug 27, Rebuttal Arguments and City
U
Attorney's Impartial Analysis Due
Nov 6, Election Day
a
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Packet Pg. 54
Cumulative Cannabis Taxes - HdL Analysis
CATEGORY
AMOUNT
INCREASE
CUMULATIVE PRICE
Producer Price
$1,000
$1,000
$1,000
State Cultivation Tax
$9.25/oz
$148
$1,148
Local Tax
3.50%
$35
$1,183
Batch Testing
$50/Ib, + 0.50%
$55
$1,238
Wholesale Price w/ Taxes
$1,238
Total Tax at Wholesale
$238
Tax as %
23.80%
Distributor Markup
30.00%
$371
$1,609
Local Tax
2.00%
$32
$1,642
Total Distributor Price
$1,642
Total Taxes at Distributor
$270
Total Tax as %
16.46%
Retailer Markup
100.00%
$1,642
$3,283
Local Tax
4.00%
$131
$3,415
State Excise Tax
15.00%
$492
$3,907
Total Retailer Price
$3,907
Total Taxes at Retail
$894
Total Tax as %
22.88%
CA Sales Tax (non-medical)
9.00%
$352
$4,259
Local Sales Tax
1.00%
$39
$4,298
Total Taxes at Retail
$1,285
Total Tax as %
29.89%
Total Local Tax
5.53%
$237.58
CUMULATIVE
CANNABIS TAXES
HdL Analysis
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L4MPANIES
MEASURE O LOCAL TAX REVENUE PROJECTIONS
SCENARIO -TOTAL 5 RETAIL PERMITS ONLY
Emerging market makes it difficult to assess with total accuracy
Annual Revenue Estimates:
• Very Conservative
• Moderate
• Aggressive
(2.5%) $ 275,000
(4%) $ 440,000
(6%) $ 660,000
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Packet Pg. 56
H d Es �
I
L4MPANIES
LOCAL TAX REVENUE PROJECTIONS SCENARIO -
TOTAL PERMITS 19
Emerging market makes it difficult to assess with total accuracy
Annual Revenue Estimates:
• Very Conservative
• Moderate
• Aggressive
(2.5%) $ 112967000
(4%) $ 11912,000
(6%) $ 276667000
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L4MPANIES
LOCAL TAX REVENUE PROJECTIONS SCENARIO -
TOTAL PERMITS 27
Emerging market makes it difficult to assess with total accuracy
Annual Revenue Estimates:
• Very Conservative
• Moderate
• Aggressive
(2.5%) $ 11756,000
(4%) $ 276487000
(6%) $ 37770,000
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LOCAL TAX REVENUE PROJECTIONS SCENARIO -
TOTAL PERMITS 35
Emerging market makes it difficult to assess with total accuracy
Annual Revenue Estimates:
• Very Conservative
• Moderate
• Aggressive
(2.5%) $ 2,2167000
(4%) $ 35384,000
(6%) $ 47874,000
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CALIFORNIA'S CANNABIS MARKET
Total Statewide Cannabis Production: 13.5 million pounds
(CDFA Estimate)
Total Statewide Cannabis Consumption: 2.5 million pounds
(CDFA Estimate)
,v/ Total Statewide Cannabis Consumption: 1.6 million pounds
(California Cannabis Opportunity Report)
Anticipated Number of Cultivation Licenses Statewide: 14,277*
Potential Cannabis Production 30 to 40 million pounds*
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*California Deportment of Food and Agriculture Survey - August 2016
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Forth Coast:
411 150r o00 lbs -
Sacramento
bs_
Sacramento
1rOOQr000 Ibs.
Intermountain:
3r875r000lbs.
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Joaquin Halley:
lbs.
Southeast Interior_
3001000 1 b S.
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TAKEAWAYS:
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Cannabis cultivation in California exceeds the size of the legal �_
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market by 5 to 8 times
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Interest in legal cultivation licenses exceeds the size of the legal N
market by 12 to 16 times
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California's entire market could potentially be supplied by as few
as 200 Type 3A Medium Indoor grows
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Interest in cultivation licenses in the Bay Area appears to be
moderate compared with the rest of the state a
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REGULATORY OPTIONS
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MEDICINAL
ADULT -USE
Cultivation
YES / NO
YES / NO
Manufacturing
YES / NO
YES / NO
Testing (Quality Control)
YES / NO
YES / NO
Retailer/Non-Store Front Retailer
(Dispensary/Delivery Services)
YES / NO
YES / NO
Distribution Facility
YES / NO
YES / NO
Microbusiness
YES / NO
YES / NO
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THE DECISION IS YOURS
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City Council Can Choose from the
following: Next Steps
OPTION 1
Ban cannabis uses in the
City if Measure O invalid;
Create modifications to
Muni Code to address
Prop 64 changes except
for indoor personal use
and public consumption
'IV OPTION 2
• Allow for conditional or
discretionary permit;
• Establish a licensing
process for cannabis
uses
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HdL
David McPherson
Cannabis Compliance Director
Matt Eaton
Cannabis Compliance Manager
Tim Cromartie
Cannabis Senior Advisor
dmcpherson@hdlcompanies.com
meaton@hdlcompanies.com
tcromartie@hdlcompanies.com
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909-861-4335
909-861-4335
909-861-4335
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4.a
Date:
To:
From:
Public Hearing
City of San Bernardino
Request for Council Action
January 22, 2017
Honorable Mayor and City Council Members
Andrea M. Miller, City Manager
By: Mark Persico, AICP, Community Development Director
Subject: Extension of the Moratorium on Commercial Marijuana Land
Uses and Activities, Outdoor Personal Cultivation of Marijuana
and Cannabis Events
Recommendations
An Ordinance of the Mayor and City Council of the City of San Bernardino, California,
extending the 45 -day moratorium related to certain commercial marijuana land uses and
activities, outdoor personal cultivation and cannabis events for up to 10 months and 15
days.
Background
On December 11, 2017, the Citizen's Advisory Committee (CAC) on cannabis
regulations concluded its work and made a series of recommendations regarding: a)
personal cultivation in residential zones, b) marijuana consumption/smoking in public
places, c) taxes and fees, and d) cannabis special events.
On December 20, 2017, the Mayor and City Council received and filed the
recommendations of the CAC and adopted a 45 -day moratorium on certain commercial
cannabis land uses and activities, outdoor personal cultivation and cannabis events.
On December 28, 2017, a court hearing
Measure O — the November 2016 local
permitting system. As of the drafting of this
issued by the courts.
Discussion
was conducted regarding the validity of
ballot measure establishing a cannabis
report, a final written decision has not been
The 45 -day moratorium was designed to temporarily protect the City in the event that
Measure O was declared partially or wholly invalid. The moratorium expires on February
2, 2018, and State law (Government Code section 65858 (a)) allows for an extension of
the Ordinance for an additional 10 months and 15 days by a four-fifths vote of the
legislative body
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Staff recommends that the moratorium be extended. If the moratorium is not extended
and is allowed to expire without the adoption of regulations and Measure O is
invalidated by the Court, cannabis activates in the City would be unregulated. We
anticipate the state would issue licenses to prospective cannabis business operators in
San Bernardino as Proposition 64 is written in a manner that provides, if a City does not
have a regulatory ordinance in place, the state will regulate on the City's behalf.
The most prudent course of action is to extend the moratorium to allow adequate time to
develop comprehensive cannabis regulations that benefit residents and investors
seeking to open businesses. Adopting new regulations as part of the Development
Code would require both the Planning Commission and Mayor and City Council to
conduct public hearings.
Below is a brief outline of the steps necessary to adopt regulations.
1. Mayor and City Council sets general policy direction at study session of January
22, 2018
2. Community meeting(s) conducted at direction of the Mayor and City Council (30
— 45 days) — completed by March 9th
3. Staff and consultant draft cannabis ordinance — completed by March 16tH
4. Planning Commission staff report is prepared and public hearing notice is
advertised in newspaper (10 -day notice required)
5. Planning Commission public hearing — April 10, 2018 (Commission meets 2"a
Tuesday of month. If necessary, however, a special meeting could be held)
6. Mayor and City Council staff report is prepared and hearing notice is advertised
in the newspaper (10 -day notice required)
7. Mayor and City Council public hearing and first and second reading of ordinance
— May 2 and 16, 2018
The adoption of an ordinance related to cannabis activities itself is not subject to CEQA
review under Business and Professions Code section 26055 provided the ordinance
that is ultimately adopted requires discretionary approval to engage in a cannabis
activity. In other words, unless the final ordinance permits cannabis uses by right, the
adoption of the cannabis regulatory ordinance is not subject to CEQA review: CEQA
review is conducted when the "project" — in this case the cannabis activity — is under
review.
Staff recognizes the importance of developing sounds regulations and that it must be
done in a timely manner. While the moratorium ordinance (Attachment 1) states the
extension is for up to 10 months and 15 days, Section 4 allows the Mayor and City
Council to end the moratorium sooner.
Conclusion
Extension of the 45 -day moratorium will allow the Mayor and City Council and Planning
Commission adequate time to consider comprehensive cannabis regulations, which will
be incorporated into the Municipal Code. Staff recommends that the Mayor and City
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Council extend the moratorium by up to 10
Manager to update the California Bureau
regulations.
months and 15 days and authorize the City
of Cannabis Control on the status of City
Attachments
Attachment 1 Ordinance Extending Moratorium
Ward(s): All
Synopsis of Previous Council Actions: Current moratorium adopted as Interim
Urgency Ordinance December 20, 2017.
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ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, EXTENDING A MORATORIUM ON
CERTAIN COMMERCIAL MARIJUANA LAND USES AND ACTIVITIES,
OUTDOOR PERSONAL CULTIVATION OF MARIJUANA, AND CANNABIS
EVENTS
WHEREAS, on December 20, 2017, the Mayor and City Council adopted an
interim urgency ordinance, Ordinance No. MC -1452, establishing a moratorium
prohibiting all land use entitlements, building permits, business licenses and any other
applicable approval or decisions for unregulated commercial marijuana activities, outdoor
personal cultivation of marijuana, and cannabis events; and
WHEREAS, since the adoption of the moratorium, staff has continued to meet
internally to explore and review the state regulatory framework and best practices from
other communities, coordinated with consultant HdL Companies for professional
guidance on establishing a local regulatory framework, explored areas within the
Municipal Code that need to be considered for amendments and began developing
regulations for unregulated commercial marijuana activities, outdoor personal cultivation
of marijuana, and cannabis events; and
WHEREAS, the State is continuing to modify and refine the Medicinal and
Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) regulations; and
WHEREAS, the Mayor and City Council desire to deliberately consider the
various options and to allow staff to prepare any necessary code amendments for future
consideration as well as to allow the State time to refine their regulations and procedures;
and
WHEREAS, Chapter 19.420 of the Municipal Code related to commercial
marijuana uses have been adjudicated as unconstitutionally invalid by the Superior Court
for the State of California in the following cases: Kush Concepts, et al., v. City of San
Bernardino, Superior Court Case No. CIVDS 1702131; Quiang Ye, et al., v. City of San
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Bernardino, et al., Superior Court Case No. CIVDS 1704276; Karmel Roe v. City of San
Bernardino, et al., Superior Court Case No. CLADS 1712424
WHEREAS, with Chapter 19.420 invalidated, the Municipal Code does not
adequately regulate commercial marijuana land uses and/or activities, nor does the
Municipal Code adequately regulate outdoor personal cultivation of marijuana or
cannabis events, and additional time is needed in order to thoroughly develop appropriate
regulations as directed by the Mayor and City Council; and
WHEREAS, this Ordinance shall extend the existing moratorium established by
Ordinance No. MC -1452 for a period of no more than 10 months and 15 days with an
expiration date of December 18, 2018; and
WHEREAS, said extension of the moratorium is based on the following findings:
1. Significant concerns have been raised regarding the impacts that possessing,
planting, harvesting, drying, processing, distributing, transporting, storing,
manufacturing, and selling of marijuana will have on public health, safety, and
welfare in the City, including the protection of environmental resources and
neighborhood quality; and
2. It is necessary for the City to protect the public interest in the aesthetic,
economic, health, safety, and community character, until additional staff time
has been completed and any necessary local regulations or code revisions
have been revised, adopted, and otherwise made effective; and
3. Improper marijuana cultivation poses an environmental health risk to the
public and may create a public nuisance, including without limitation:
offensive and irritating odor, degradation of air quality, excessive noise, risk
of criminal activity, improper and/or dangerous electrical alterations, and
impairment of the general quality of life of property owners and occupants
adjoining marijuana cultivation sites; and
4. Additional time is required to ensure that prior to the adoption of any
regulation, adequate security measures are implemented to ensure that the
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cultivation, concentration, or sale of marijuana in any location or premise does
not negatively impact surround homes or businesses by increasing nuisance
activity such as loitering or crime; and
5. The adoption of a comprehensive marijuana ordinance that addresses
unregulated commercial marijuana activities, outdoor personal cultivation of
marijuana, and cannabis events will take time and careful consideration and
will require input from various community stakeholders and the general
public; and
6. The City has a compelling interest in protecting the public health, safety, and
welfare of its residents and businesses, and preserving the peace and integrity
of the neighborhoods within the City; and
7. The issuance of land use permits, building permits, licenses, or other
entitlements for unregulated commercial marijuana activities, outdoor
personal cultivation of marijuana, and cannabis events would pose a current
and immediate threat to the public health, safety, and welfare, since such uses
could potentially create conflicts with surrounding land uses, and could
conflict with the City's long-term planning coals to be implemented through
the City's General Plan, Specific Plans, and Zoning (Development) Code; and
8. In order to address community concerns regarding the establishment of
unregulated commercial marijuana activities, outdoor personal cultivation of
marijuana, and cannabis events, it is necessary for the City to study the impact
such uses will have on the public health, safety, and welfare, and potentially
adopt new regulations; and
9. In order to protect the City's investment in its planning efforts, ensure that the
City's long term planning goals and strategies can be achieved in an effective
and timely manner, and to avoid a current and immediate threat to the public
health, safety, and welfare it is necessary for the City to study the impact any
new regulations regarding unregulated commercial marijuana activities,
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outdoor personal cultivation of marijuana, and cannabis events will have on
the public health, safety, and welfare; and
10. The citizens of the City will benefit from a comprehensive and thoughtful
local regulatory scheme that addresses the potential impacts of unregulated
commercial marijuana activities, outdoor personal cultivation of marijuana,
and cannabis events; and
11. There is an immediate need to prevent unregulated commercial marijuana
activities, outdoor personal cultivation of marijuana, and cannabis events,
which have the potential to affect the character and aesthetic of the
community; and
12. The issuance of land use permits, building permits, licenses or other
entitlements for unregulated commercial marijuana activities, outdoor
personal cultivation of marijuana, and cannabis events would pose an
immediate threat to the public health, safety, or welfare, since such uses could
potentially conflict with the City's long-term planning goals and the
development of the City; and
13. The adoption of a moratorium is necessary to prevent the potential
grandfathering of unregulated commercial marijuana activities, outdoor
personal cultivation of marijuana, and cannabis events; and
14. A moratorium on unregulated commercial marijuana activities, outdoor
personal cultivation of marijuana, and cannabis events is required to allow the
City the opportunity to consider the various policy implications of authorizing
commercial adult -use activities within the City and to develop a
comprehensive approach to regulate cannabis -related activities authorized by
MAUCRSA.
WHEREAS, the California Constitution, Article XI, section 7, provides cities
with the authority to enact ordinances to protect the health, safety, and welfare of their
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citizens, and adoption of zoning regulations are a permissible exercise of this authority;
IM
WHEREAS, Government Code section 65858 authorizes the Mayor and City
Council to adopt, upon a four-fifths vote of the Mayor and City Council, without
following the procedures otherwise required for a zoning ordinance, an interim urgency
ordinance prohibiting any uses that may be in conflict with a contemplated general plan,
specific plan, or zoning proposal that the City Council, Planning Commission or the
Community Development Department is considering or studying, or intends to study
within a reasonable time.
NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals.
The above recitals are hereby declared to be true and correct and represent
the findings of the Mayor and City Council, made in the exercise of their
independent judgment and that based on the above recitals, there is an
immediate threat to the public health, safety and welfare. The adoption of
this ordinance is necessary for the immediate protection of the public
health, safety and welfare. Said findings are hereby incorporated by
reference and made a part of this ordinance.
SECTION 2. Purpose.
The purpose of this ordinance is to extend a moratorium established by
Ordinance No. MC -1452 on the approval or issuance of any land use
permit, building permit, business license or any other applicable
entitlement or approval for unregulated commercial marijuana activities,
outdoor personal cultivation of marijuana, and/or cannabis events for the
immediate preservation of the public health, safety, and welfare.
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SECTION 3. Authority and Findings.
Based on the findings set forth in the Recitals incorporated herein by
Section 1, unregulated commercial marijuana activities, outdoor personal
cultivation of marijuana, and cannabis events pose a current and
immediate threat to the public health, safety, and welfare on the citizens of
the City and as such the Mayor and City Council extend the moratorium
ordinance by not less than a four-fifths vote, under the authority granted to
it by Article XI, Section 7 of the California Constitution and section 65858
of the California Government Code, which allows the City to extend a
moratorium prohibiting land uses which may be in conflict with a
contemplated general plan, specific plan, or zoning proposal that the City
Council, Planning Commission or the Community Development
Department is considering or studying or intends to study within a
reasonable time. The City Council hereby directs City Manager to
continue to take all actions necessary to establish regulations regarding
unregulated commercial marijuana activities, outdoor personal cultivation
of marijuana, and/or cannabis events.
SECTION 4. Moratorium Extended.
In accordance with the authority granted to the City under Article XI,
Section 7 of the California Constitution and California Government Code
section 65858, the moratorium on unregulated commercial marijuana
activities, outdoor personal cultivation of marijuana, and/or cannabis
events established by Ordinance No. MC -1452 on December 20, 2017 is
hereby extended 10 months and 15 days until December 18, 2018, unless
ended sooner by ordinance of the Mayor and City Council. The following
activities are prohibited and no land use entitlements, building permits,
business licenses and any other applicable approval or decisions for
commercial marijuana activities, shall be granted for such activities:
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(1) In the event that Measure O is held wholly or partially invalid, to
the extent Measure O is held invalid, any unregulated commercial
marijuana activity, which may include, but is not limited to cultivation,
manufacturing, processing, labeling, storing, distribution, delivery, sales
and retail, shall be prohibited in every zone in the City.
(2) Outdoor personal cultivation of marijuana including, but not
limited to, planting, cultivating, harvesting, drying, or processing, is
prohibited in every zone in the City. Indoor planting, cultivation,
harvesting, drying, or processing of marijuana plants for recreational use is
limited to within private residences, is limited to six (6) plants per private
residence, and must be entirely for the personal use of a resident of the
residence who is twenty-one (21) years of age or older, as permitted in
Health and Safety Code sections 11362.1 and 11362.2. The City reserves
the right to enact regulations regarding the indoor cultivation of marijuana
at a later date.
(3) Cannabis events are prohibited in every zone of the City, including
those areas of the City that may operate as a state designated fair under
Sections 19418.1, 19418.2, or 19418.3 of the Business and Professions
Code.
SECTION 5. Issuance of Land Use Entitlements in Violation of this Moratorium
Declared a Public Nuisance.
The issuance of any land use permits, building permits, licenses, or other
applicable entitlements for unregulated commercial marijuana activities,
outdoor personal cultivation of marijuana, or cannabis events in the City
as defined in this ordinance, during the duration of this moratorium, or any
extension thereof, is declared to be a public nuisance. Violations of this
ordinance may be enforced by any applicable law or ordinances, including
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but not limited to injunctions or administrative or criminal penalties, under
the San Bernardino Municipal Code.
SECTION 6. Severability.
If any provision of this ordinance or the application thereof to any person
or circumstance is held to be unconstitutional or otherwise invalid by a
court of competent jurisdiction, such invalidity shall not affect other
provisions or applications of this ordinance which can be implemented
without the invalid provision or application and to this end the provisions
of this ordinance are declared to be severable.
SECTION 7. California Environmental Quality Act.
The Mayor and City Council hereby find that this ordinance is not subject
to review under the California Environmental Quality Act (CEQA)
pursuant to CEQA Guidelines sections 15060, subdivision (c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15061, subdivision (b)(3) (there
is no possibility the activity in question may have a significant effect on
the environment). In addition to the foregoing general exemptions, the
City Council further finds that this ordinance is categorically exempt from
review under CEQA under the Class 8 Categorical Exemption (regulatory
activity to assure the protection of the environment), CEQA Guidelines
section 15308.
SECTION 8. Effective Date.
This ordinance shall become effective immediately upon a four fifths vote
of the Mayor and City Council.
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AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, EXTENDING A MORATORIUM ON
CERTAIN COMMERCIAL MARIJUANA LAND USES AND ACTIVITIES,
OUTDOOR PERSONAL CULTIVATION OF MARIJUANA, AND CANNABIS
EVENTS
I HEREBY CERTIFY that the foregoing ordinance was duly adopted by the
Mayor and City Council of the City of San Bernardino at a special meeting thereof, held
on the day of , 2018, by the following vote to wit:
Council Members:
MARQUEZ
BARRIOS
VALDIVIA
SHORETT
NICKEL
RICHARD
MULVIHILL
AYES NAYS
The foregoing Ordinance is hereby adopted this
Approved as to form:
Gary D. Saenz, City Attorney
to
ABSTAIN ABSENT
Georgeann Hanna, CMC, City Clerk
day of , 2018.
R. CAREY DAVIS, Mayor
City of San Bernardino
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