COUNTY OF SANTA CRUZ 0409

Transcription

1 COUNTY OF SANTA CRUZ 0409 PLANNING DEPARTMENT 701 OCEAN STREET, 4TH FLOOR, SANTA CRUZ, CA (831) FAX: (831) TDD: (831) KATHLEEN MOLLOY PREVISICH, PLANNING DIRECTOR April 20, 2011 AGENDA DATE: May 3,2011 Board of Supervisors County of Santa Cruz 701 Ocean Street Santa Cruz, CA SUBJECT: CONTINUED COMBINED PUBLIC HEARING TO CONSIDER A PROPOSED MEDICAL MARIJUANA COOPERATIVE ORDINANCE APPLICABLE TO UNINCORPORATED AREAS OF SANTA CRUZ COUNTY; AND TO CONSIDER A ONE YEAR EXTENSION OF A MORATORIUM TO TEMPORARILY PROHIBIT MEDICAL MARIJUANA DISPENSARIES AND PRODUCTION HOUSES WITHIN THE COASTAL ZONE Members of the Board: On April 12, 2011, your Board considered the Planning Commission recommendations from January 26 and February 9, 2011 regarding approval of medical marijuana cooperative and collective regulations as well as extension of a moratorium on dispensaries within the Coastal Zone (Attachment 5). In addition to your Board taking public testimony, Board members identified a need for additional discussion of the following issues: testing of medical marijuana and the formation of a medical marijuana working group. On February 9, 2011, the Planning Commission considered information provided by staff regarding two jurisdictions (Los Angeles, Long Beach) regarding voluntary testing of THC (tetrahydrocannabinol) levels, as part of their medical marijuana ordinances. It is believed that there are no California jurisdictions that test for mold, bacteria, or fungus since it is generally accepted that individual patients will react differently to bacteria and fungus. The Commission expressed that testing is a topic that would require significant evaluation, and that a working group should be established to consider testing and other issues which could be considered for addition to the regulations at some future time. Your Board also provided direction regarding formation of a working group with the direction being to: "Direct County staff to establish a medical marijuana working group to be staffed by appropriate county staff for a period of at least one year from the date of adoption in order for this group to investigate specifically how the county's charity care provision can be structured to ensure the highest level of participation, the issue of testing of medical marijuana, and other issues related to the county's ordinance." 65

2 0410 The staff working group would consist of inter-agency staff that would meet every two or three months as necessary and would not be subject to open meeting requirements. Based on your Board's previous direction, the working group would cease to function after May 31, Recommendation Staff and the Planning Commission recommend that the issue of testing for safe medical marijuana be evaluated through the staff working group. Therefore, your Board is recommended to approve the proposed ordinances to establish medical marijuana collective/cooperative regulations and to extend the moratorium for grow houses and dispensaries which are attached for your Board's consideration. It is therefore RECOMMENDED that your Board take the following actions: 1. Reopen the public hearing and take testimony to consider the proposed ordinance; and 2. Adopt the attached resolution (Attachment 1) making findings and certifying the Environmental Notice of Exemption (Attachment 4); : 3. Approve the attached ordinance to amend County Code Chapter to establish medical marijuana regulations; (Attachment 2);, 4. Approve the attached ordinance to extend the moratorium in the Coastal Zone (Attachment 3); 5. Direct County staff to establish a medical marijuana working group reflecting a range of perspectives and expertise to be staffed by appropriate county staff for a period of at least one year from the date of adoption in order for this group to investigate and report back on how the county's charity care provision can be structured to ensure the highest level of participation, the issue of testing of medical marijuana, and other issues related to the county's ordinance; and 6. Direct Planning staff to submit the proposed code changes to the California Coastal Commission for certification as part of a 2011 coastal round. Sincerely, RECOMMENDED: Kãi i4& 1è M. Previsich r frwùct- Planning Director SUSAN. MAURIELLO County Administrative Officer Attachments: 1. Resolution 2. Ordinance to Adopt Medical Marijuana Regulations 3. Ordinance to Extend Moratorium in the Coastal Zone 4. CEQA Exemption 5. April 12, 2011 Board Letter with Attachments KP:WWBoard Letters\2011\PendinglApriI\May 3 65

3 AttachmeilÒ11 BEFORE THE BOARD OF SUPERVISORS OF THE COUNTY OF SANTA CRUZ, STATE OF CALIFORNIA RESOLUTION NO. On the motion of Supervisor duly seconded by Supervisor the following is adopted: BOARD OF SUPERVISORS RESOLUTION MAKING FINDINGS RELATING TO THE REGULATION OF MEDICAL MARIJUANA COOPERATIVES AND CERTIFYING THE CEQA EXEMPTION IN CONNECTION THEREWITH AND DIRECTING SUBMITTAL OF THE ORDINANCE TO THE CALIFORNIA COASTAL COMMISSION The Board of Supervisors of the County of Santa Cruz finds as follows: WHEREAS, in 1996 the voters of the State of California approved Proposition 215, which was codified as Health and Safety Code Section , et seq. and entitled the Compassionate Use Act of 1996 ("the Act"); and WHEREAS, the intent of Proposition 215 was to enable persons who are in need of marijuana for medical purposes to obtain and use it under limited, specific circumstances; and WHEREAS, on January 1, 2004, Senate Bill 420 became effective to clarify the scope of the Act and to allow cities and counties to adopt and enforce rules and regulations consistent with SB 420 and the Act; and WHEREAS, in February 2009 the U.S. Attorney General stated that federal law enforcement officials would cease enforcement at California medical marijuana facilities; and WHEREAS, County staff has received inquiries from members of the public as to the possibility of establishing medical marijuana cooperatives in the unincorporated area of the County of Santa Cruz; and WHEREAS, County staff is aware that there are currently several medical marijuana distribution operations in the unincorporated area of the County of Santa Cruz operating without any land use permits; and "'65

4 0412 WHEREAS, concerns have been raised in the community regarding the need for regulations to address impacts including, but not limited to, safety and the impact that a proliferation and/or over concentration of medical marijuana cooperatives may have on the community as a whole; and WHEREAS, many County residents would likely seek access to medical marijuana provided that the facilities are designed and located to minimize the concerns described above; and WHEREAS, on September 28, 2010, the County of Santa Cruz enacted an urgency ordinance imposing a temporary moratorium on the establishment of medical marijuana dispensaries and production houses in the unincorporated area of Santa Cruz County; and WHEREAS, on November 9, 2010, the County of Santa Cruz extended the urgency ordinance imposing a temporary moratorium on the establishment of medical marijuana dispensaries and production houses in the unincorporated area of Santa Cruz County for ten months and 15 days; and WHEREAS, the County of Santa Cruz has a compellng interest in ensuring that marijuana is not distributed in an ilicit manner, in protecting the public health, safety and welfare of its residents and businesses, in preserving the peace and integrity of the neighborhoods in which medical marijuana cooperatives operate, and in providing seriously il residents with compassionate access to medical marijuana; and WHEREAS, on January 26, 2011 and February 9, 2011, the Planing Commission conducted public hearings to consider the establishment of medical marijuana standards to the Santa Cruz County Code; and WHEREAS, on April 12, 2011, the Board of Supervisors opened the public hearing to receive public testimony regarding the establishment of medical marijuana standards to the Santa Cruz County Code, and continued the hearing to May 3, 2011; and NOW THEREFORE, BE IT RESOLVED AND ORDERED, that the Board of Supervisors hereby approves the categorical exemption under CEQA as set forth in Attachment 4 and incorporated herein by reference, in connection with adopting an ordinance regulating medical marijuana on this same date. BE IT FURTHER RESOLVED AND ORDERED that the Board of Supervisors hereby directs these amendments be submitted to the State of California Coastal Commission. Cruz, State of PASSED AND ADOPTED by the Board of Supervisors of tl;e County of Santa California, this day of _,2011 by the following vote: 65

5 AYES: SUPERVISORS NOES: SUPERVISORS ABSENT: SUPERVISORS ABSTAIN: SUPERVISORS 0413 Chairperson of the Board of Supervisors ATTEST: Secretary APPROVED AS TO FORM: ~,;v7~ County Counsel DISTRIBUTION: County Counsel Planning Deparment Sheriff.;

6 0414 Attachment 2 ORDINANCE No. ORDINANCE AMENDING SECTION M AND SECTION (B) AND ADDING SECTION TO THE SANTA CRUZ COUNTY CODE RELATING TO THE REGULATION OF MEDICAL MARIJUANA COOPERATIVES SECTION I Section 13.1O.700-M of the Santa Cruz County Code is hereby amended to add the following definition after "Matrix Unit" to read as follows: Medical Marijuana Cooperative. Any cooperative or collective of 10 or more persons where the primary purpose is to provide the lawful distribution of medical marijuana that has been recommended by a licensed physician, in strict accordance with Health and Safety Code Section et seq. The sharing or distribution of medical marijuana between nine or fewer persons is not subject to this code. Except as otherwise expressly authorized, the sharing or distribution of medical marijuana is not an allowed use. SECTION II The Commercial Uses Char in Section (b) of the Santa Cruz County Code is hereby amended by adding the category "Medical Marijuana Cooperatives, subject to the provisions of Section " below the category "Cottage Industry" to read as follows: USE PA VA CT C-1 C-2 C-4 r,., Marijuana Cooperatives, ! I- \ i I ',J to the provisions of Section I 1 I ! I SECTION III The Santa Cruz County Code is hereby amended by adding Section entitled "Medical Marijuana Cooperatives" to read as follows: Medical Marijuana Cooperatives.. R!'

7 (a) Purpose. Standards are required to assure that the operations of medical marijuana cooperatives are in compliance with California Health and Safety Code Section (adopted as Proposition 215, the "Compassionate Use Act of 1996") or any State regulations and/or guidelines adopted in furtherance thereof, and to mitigate the adverse secondary effects from operations of cooperatives. This Ordinance is enacted as a health and safety measure pursuant to the county's police power. Nothing contained herein shall excuse, facilitate or promote a violation of federal law. (b) Level 5 Approval Required. It shall be unlawful to establish, cause, or permit the operation of a medical marijuana cooperative without first obtaining a development permit required by this section. A medical marijuana cooperative shall meet the siting criteria and performance standards described below if authorized pursuant to the procedures for a LevelS Approval. The Planning Department shall provide notice of the application to the Health Services Agency, Sheriffs Office and other relevant county deparments (c) Siting Criteria. Applicants for a medical marijuana cooperative must meet the following siting criteria prior to consideration of a permit application: (l) The proposed location shall lie within a P-A (Professional and Administrative Offices), C-L (Neighborhood Commercial), C-2 (Community Commercial) or C-4 (Commercial Services) zone district. (2) If the proposed location is located within 300 feet of any residentially zoned area, the applicant shall be required to demonstrate to the decision-maker that the use would not create an intensity of use that is incompatible with the nearby residential use and that the applicant would employ security measures that would insure that the use would not adversely affect the security and safety of the neighboring residential uses. (3) The proposed location shall not be located within eight hundred feet of (a) any other medical marijuana cooperative, or within six hundred feet of (b) any licensed preschool, or (c) any public or private school providing instruction in kindergarten or grades 1 to 12, inclusive, but does not include any private school in which education is primarily conducted in private homes. (4) The distance specified in subsection (2) and (3) shall be the horizontal distance measured in a straight line from the property line of the referenced use to the closest property line of the lot on which the cooperative is to be located without regard to intervening structures. (d) Performance Standards. Medical marijuana cooperatives, once permitted, shall meet the following operating procedures and performance standards for the duration of the use; and the Management Plan shall incorporate these procedures and standards:...65

8 0416 (1) The cooperative shall not provide an on-site location for doctors or medical professionals to write recommendations. (2) No product shall be smoked, ingested or otherwise consumed within the cooperative or within 50 feet of the building in which the cooperative is located, except that cooperative employees and volunteer staff that possess a valid medical doctor's recommendation for medical marijuana, may individually smoke, ingest or otherwise consume medical marijuana during normal break time(s). (3) The hours of operation shall be limited to no more than 7:00 a.m. to 8:30 p.m., daily. (4) Parking shall be provided at a rate of 1 space per 300 gross square feet of floor area. Exterior lighting of the parking area shall be kept at a sufficient intensity so as to provide adequate lighting for patrons, while not disturbing surrounding residential or commercial areas. (5) The cooperative shall prohibit loitering by persons within 50 feet of any entryway into or exit from the cooperative. (6) The cooperative shall provide litter removal services each day of operation on and in front of the premises and, if necessary, on public sidewalks within fifty feet of any entry into or exit from the cooperative. (7) The cooperative shall provide adequate security on the premises, including lighting, alarms and dedicated security personnel, to insure the safety of persons and to protect the premises from theft. (8) All employees of the cooperative shall be at least 18 years of age. (9) Signage shall be limited to one identifying sign stating the business name, address and hours of operation not to exceed 4 square feet in area; such signs shall not be directly iluminated and shall not contain graphics identifying marijuana. In addition to an identification sign, appropriate directional signage may be required. (10) No advertising for sale of medical marijuana shall be permitted, except advertising that is directed exclusively to cooperative or collective members. An entry in the telephone directory with the name, location and phone number of the cooperative is allowed. Each cooperative is allowed a website with the name, location and phone number of the cooperative. Such web sites must include the cooperative's bylaws, membership criteria, and operating procedures but may not include the display of a sales price to non-members for any marijuana product that is dispensed by the cooperative. The display of the sales price to cooperative or collective members on a portal that may be accessed by members only may be permitted. 6!l

9 0417 (11) The cooperative shall provide the Planning Director, the Sheriff and all adjoining property owners located within fifty feet of the building in which the cooperative is located with a current name, phone number, address and facsimile number of an on-site community relations staff person to whom one can provide notice if there are concerns regarding operating problems associated with the establishment. The establishment shall make every good faith effort to encourage neighbors to call this person to try to solve operating problems, if any, before any calls or complaints are made to the county. (12) The cooperative shall post a copy of the conditions of approval for the permit on the premises in a place where it may be readily viewed by any member of the general public. All members shall be required to sign a "good neighbor" agreement restating and agreeing to abide by the requirements of the Level 5 Approval and this Section and indicating that if a member is found in violation, their membership may be revoked. (13) The cooperative shall meet any specific operating procedures and measures imposed as additional conditions of approval that are reasonably related to the health, safety or welfare of the community. (14) All cooperatives shall operate in strict compliance with Health and Safety Code Section , et seq., as amended, and any related state regulations. No cooperative shall operate for profit. Cash and in-kind contributions, reimbursements, and reasonable compensation provided by members towards the cooperative's actual expenses for the growth, cultivation, and provision of medical marijuana shall be allowed provided that they are in strict compliance with State Law. All such cash and in-kind amounts and items shall be fully documented. Medical marijuana shall be labeled as grown indoors or outdoors and whether or not pesticides were used in its production. The marijuana used in the products dispensed by the cooperative shall be grown locally only. A cooperative shall maintain a management plan that governs the operation and dispensing of medical marijuana, including provisions addressing how the cooperative wil meet the performance standards and other provisions of the County Code governing medical marijuana cooperatives. A medical marijuana cooperative shall maintain records at the location accurately and truthfully documenting: (a) the full name, address, and telephone number(s) of the owner, landlord and/or lessees of the location; (b) the full name, address, telephone number(s) and specific role of all members who are engaged in the management of the cooperative;,. 85

10 0418 (c) all receipts of the cooperative, including but not limited to all contributions, reimbursements, and reasonable compensation whether cash or in-kind and all expenditures incurred by the cooperative; (d) an inventory record documenting the dates, amounts and content testing, if testing is conducted, of all marijuana in the possession of the cooperative; (e) a log documenting the transfer of medical marijuana to members; (f) a log documenting all complaints filed with the on-site community relations staff person, the date and how individual complaints were resolved; and (g) a low-income patient participation plan that fully describes and documents how low-income patients are provided assistance and access to cooperative membership, medical marijuana and cooperative services. The availability of low-income patient assistance and access shall be advertised in a prominent facility location to increase member awareness and participation. A cooperative shall not: (a) unreasonably deny membership in the cooperative to any county resident, or (b) unreasonably deny access to a cooperative member's prescribed medication. The' demonstrated financial inability of a cooperative member to pay for medical marijuana shall not, in and of itself, constitute a reasonable basis for denying membership in the cooperative, or denying or otherwise limiting the member's access to medical marijuana appropriate for the member's medical needs. The County may audit the membership and financial records of the cooperative at any time. Current copies of the management plan, and other cooperative records shall be available for inspection within a reasonable period of time by County Code Compliance staff, Sheriff s Offce staff and other assigned County staff. (15) Release ofthe county from liability. The owner(s) and permittee(s) of each cooperative shall release the county, and its agents, officers, elected officials, and employees from any injuries, damages, or liabilities of any kind that result from any arrest or prosecution of cooperative owners, operators, employees, or members for violation of state or federal laws by executing a release of liability in a form satisfactory to the county planning director. (16) County indemnification. The owner( s) and permittee( s) of each cooperative shall indemnify and hold harmless the county and its agents, offcers, elected offcials, and employees for any claims, damages, or injuries brought by adjacent or nearby property owners or other third paries due to the operations at the cooperative, and for any claims brought by any of their members for problems, injuries, damages or liabilities of any kind that may arise out of the distribution and any use of medical cannabis provided at the cooperative. (e) Findings. In approving a LevelS Approval, it shall be determined by the hearing body that all of the following apply: 65

11 (1) The proposed use as described by the management plan of the cooperative complies with all of the mandatory requirements of this section and other applicable sections of this code and applicable policies of the General Plan; (2) The proposed use wil not adversely affect the health, safety or welfare of area residents or businesses, or uses; and wil not result in an undue concentration in anyone neighborhood; (3) The operational characteristics of the proposed use, such as hours of operation, noise, odor, amount and location of parking, signage, safety, loitering and litter, will not have a negative impact upon the surrounding area; 0419 (4) The proposed use is compatible with the sizes and types of other neighboring uses in the surrounding area; (5) The proposed use is not located in what has been determined by the Santa Cruz County Sherift s Office to be an area where a disproportionate number of law enforcement service calls occur; and (6) The proposed use, as a nonresidential occupancy, shall meet all building code requirements for such occupancy. (7) The bylaws, membership criteria, employee compensation schedules and operating procedures are all consistent with a bona fide medical marijuana cooperative. (t) Basis for denial. The decision-maker may deny any application which is inconsistent with the above-noted findings. (g) Previously existing medical marijuana cooperative. Notwithstanding any other provisions of this Code, the existing location of a cooperative in operation on September 28,2010, that is located outside of a P-A (Professional and Administrative Offices), C-L (Neighborhood Commercial), C-2 (Community Commercial, or C-4 (Commercial Services) zone district shall be exempt from the requirements of this chapter for the period of time allowed by subsection (l) commencing with the effective date of this chapter, if the cooperative is determined to be eligible pursuant to subsection (2): (1) The exemption period for a cooperative is set forth below: Number of years in Operation 10 or more years 5 to 9 years o to 5 years Length of Exemption 7 years 5 years 1 year (2) Each cooperative seeking an exemption pursuant to this subdivision shall apply for and obtain a written determination from the planning director as to to 8.~

12 0420 its eligibility for and the duration of an exemption. A Level 3 application fee shall be paid to process an application and receive a written determination. The exemption granted for a cooperative located within a residential zone district shall be no longer than 1 year in length. To be eligible for an exemption, an application shall be fied with the director within ninety (90) days after the effective date of this chapter. The director may require all information necessary to make a determination, including a management plan that complies fully with Section (d) (14) and proof or verification of non-profit status, with at least ten cooperative members. If one or more previously existing cooperatives are located within 800 feet of any other existing cooperative, the director may approve the locations for a period not to exceed the length of the exemption. At the conclusion of the exemption, the cooperative with the fewer years or days of operation shall be precluded from applying for a new application unless the other cooperative(s) choose not to apply or the cooperative(s) cannot comply with remaining sections of this ordinance and are therefore prohibited from making future application(s). Notwithstanding an initial approval by the Planning Director, any cooperative found to be in violation of any of the exemption requirements at any time is subject to the enforcement provisions cited in this section of the code. (h) Liability. The provisions of this Section shall not be construed to protect cooperative owners, permittees, operators, and employees, or their members from prosecution pursuant to any laws that may prohibit the cultivation, sale, use, or possession of controlled substances. Moreover, cultivation, sale, possession, distribution, and use of marijuana remain violations of federal law as of the date of adoption of the ordinance creating this section and this section is not intended to, nor does it, protect any of the above described persons from arrest or prosecution under those federal laws. Owners and permittees must assume any and all risk and any and all liability that may arise or result under state and federal criminal laws from operation of a medical marijuana cooperative. Further, to the fullest extent permitted by law, any actions taken under the provisions of this section by any public offcer or employee of the County or the County itself, shall not become a personal liability of such person or the liability of the County. A warning and disclaimer shall be put on medical marijuana zoning application forms and shall include the following: a warning that the cooperative operators and their employees may be subject to prosecution under federal marijuana laws; and a disclaimer that the county wil not accept any legal liability in connection with any approval and/or subsequent operation of a cooperative. (i) Private enforcement. Any interested person may file a civil action to enforce the membership and access requirements of subsection (d)(14). In cases where a cooperative is found by a court of law to have acted unreasonably in denying membership in a cooperative, or in denying access to a person's medicine as a result of that person's inability to pay, the cooperative shall be liable for reasonable attorney fees. The remedies provided by this section shall be in addition to any other remedies provided by statutory or decisional law. 65

13 0421 G) Revocation, Periodic Review. Notwithstanding the provisions cited above, any cooperative found to be in violation of any requirements imposed by this ordinance is subject to revocation provided in Section of the County Code. The County may also pursue any and all remedies and actions available under local and state laws for violations committed by a cooperative and persons related to or associated with a cooperative. The County may also require periodic review of any medical marijuana cooperative approved through a LevelS permit. PASSED AND ADOPTED by the Board of Supervisors of the County of Santa Cruz this day of, 2011, by the following vote: AYES: NOES: ABSENT: ABSTAIN: SUPERVISORS SUPERVISORS SUPERVISORS SUPERVISORS CHAIRPERSON, BOARD OF SUPERVISORS ATTEST: Clerk of the Board ~'- =" APPROVED AS- FORM: County Counsel Copies to: Planning County Counsel Sheriff. So 85

14 ORDINANCE NO AN UNCODIFIED INTERIM ORDINANCE OF THE COUNTY OF SANTA CRUZ EXTENDING A TEMPORARY MORATORIUM ON THE ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES AND PRODUCTION HOUSES WITHIN THE COASTAL ZONE PORTIONS OF THE UNINCORPORATED AREA OF SANTA CRUZ COUNTY AND DECLARING THE URGENCY THEREOF The Board of Supervisors of the County of Santa Cruz find as follows: WHEREAS, concerns have been raised in the community regarding the need for regulations to address impacts including, but, not limited to, safety and the impact a proliferation and/or over concentration of medical marijuana dispensaries and production houses may have on the community as a whole; and WHEREAS, many County residents seek access to medical marijuana provided that the facilities are designed and located to minimize the concerns described above; and WHEREAS, On September 28, 2010, the Board of Supervisors adopted Ordinance No imposing a temporary 45 day moratorium on the establishment of medical marijuana dispensaries and production houses in the unincorporated area of Santa Cru County; and WHEREAS, On November 9,2010, the Board of Supervisors adopted Ordinance No extending the temporary moratorium for an additional ten months and 15 days; and WHEREAS, the County of Santa Cruz has studied and analyzed the concerns of said uses on public health, safety and welfare of the community and if such proliferation and/or over concentration might be in conflct with current or proposed General Plan policies; and WHEREAS, the Santa Cruz County Board of Supervisors enacted an ordinance regulating Medical Marijuana Cooperatives that wil take effect within the unincorporated areas of the County in areas outside of the Coastal Zone; and WHEREAS, the regulations adopted by the Board of Supervisors require review and certification by the California Coastal Commission before they can take effect within the Coastal Zone area of the County; and 65 i

15 0423 WHEREAS, based on the foregoing it is in the best interest of public health, safety and welfare to allow the California Coastal Commission adequate study of medical marijuana dispensaries as they relate to land use issues within the Coastal Zone as they consider the regulations adopted by the Board of Supervisors; therefore it is appropriate to extend the moratorium on medical marijuana dispensaries and production houses within the Coastal Zone District of Santa Cruz County consistent with the authority granted by Government Code Section NOW, THEREFORE BE IT ORDAINED by the Board of Supervisors of the County of Santa Cruz as follows: SECTION I In accordance with Government Code Section 65858, from and after the date of this Ordinance, a moratorium against the establishment of any medical marijuana dispensaries or production houses within any portion of the Coastal Zone lying within the unincorporated area of the County of Santa Cruz is hereby enacted for a period of one year from the adoption of this ordinance to allow consideration by the California Coastal Commission of the ordinance regulating Medical Marijuana Cooperatives enacted by Santa Cruz County Board of Supervisors. SECTION II This interim ordinance is necessary in that there is a current and immediate threat to the public health, safety, or welfare from the unregulated operation of medical marijuana dispensaries and/or production houses that are presently in operation or that may thereafter begin operation; and that the approval of use permits, building permits, or any other applicable entitlement for medical marijuana dispensaries and production houses which are required in order to comply with a zoning ordinance would appropriately address that threat to public health, safety, or welfare as discussed above. SECTION III This interim ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060( c) (2) - the activity wil not result in a direct or reasonably foreseeable indirect physical change in the environment and Section 15060(c) (3) - the activity is not a project as defined in Section of the CEQA Guidelines, because it has no potential for resulting in physical change to the environment, directly or indirectly. 2 :-1J5

16 SECTION IV 0424 Effective Date. This ordinance shall take effect immediately based on the findings by the Board of Supervisors that this ordinance is adopted consistent with Government Code Section 65858, and is necessary for the protection of the public health, safety, and general welfare. Pursuant to Government Code Section 65858, this ordinance shall be in full force and effect for one year from the date of its adoption by the Board of Supervisors. PASSED AND ADOPTED THIS day the Board of Supervisors of of,2011, by the County of Santa Cruz by the following vote: AYES: NOES: ABSENT: ABSTAIN: SUPERVISORS SUPERVISORS SUPERVISORS SUPERVISORS Chairperson of the Board of Supervisors Attest: Clerk of the Board ~V17=- APPROVED AS TO FORM: County Counsel Distribution: County Administrative Officer Planning Department County Sheriff fl5 3

17 0425 Attachment 4 COUNTY OF SANTA CRUZ-",",~6e PLANNING DEPARTMENT 701 OCEAN STREET, 4TH FLOOR, SANTA CRUZ, CA (831) FAX: (831) TOD: (831) KATHLEEN MOLLOY PREVISICH, PLANNING DIRECTOR CALIFORNIA ENVIRONMENTAL QUALITY ACT NOTICE OF EXEMPTION The Santa Cruz County Planning Deparment has reviewed the project described below and has determined that it is exempt from the provisions of CEQ A as specified in Sections of CEQA for the reason(s) which have been specified in this document. Application Number: N/A Assessor Parcel Number: county wide application to C-1 (Neighborhood Commercial), C-2 and C-4 zone districts that are located more than 600 feet from a public or private school. Project Location: Santa Cruz County Project Description: The proposed ordinance would establish standards to regulate the lawful distribution of medical marijuana by cooperatives and collectives in unincorporated areas of Santa Cruz County in the C-L (Neighborhood Commercial,) C-2 (Community Commercial) and C-4 (Commercial Services) zones, when located more than 600 feet from a public or private school. The proposed project ordinance would amend Section M of the Santa Cruz County Code to add a medical marijuana cooperative definition, amend Section (b) to add the category "Medical Marjuana Cooperatives, subject to the provisions of a new Code Section entitled "Medical Marijuana Cooperatives." The purose of the proposed ordinance is to assure that medical marjuana cooperatives operate in compliance with California Health and Safety Code Section (adopted as Proposition 215, the "Compassionate Use Act of 1996") or any State regulations and/or guidelines adopted in furtherance thereof, and to mitigate the adverse secondary effects from operations of cooperatives. The proposed medical marijuana cooperative ordinance would 1) apply countywide; 2) require a Level 5 approval permit for new non-profit cooperatives, 3) provide a limited exemption for ex,isting non-profit medical marijuana cooperatives, 4) operate in strict compliance with Health and Safety Code Section , et seq., as amended, and any applicable state or county regulations. Person or Agency Proposing Project: Wanda Willams, Assistant Planing Director Contact Phone Number: (831) t"".~ 'Jf

18 ATACHMBIT 4 A. B. c. D. The proposed activity is not a project under CEQA Gùidelines Section The proposed activity is not subject to CEQA as specified under CEQA Guidelines Section (c). Ministerial Project involving only the use of fixed standards or objective measurements without personal judgment. Statutory Exemption other than a Ministerial Project (CEQA Guidelines Section to 15285). Specify type: E. -L Categorical Exemption Section (b)(3), Section (b)(2), (b)(3), Section 15308, Section J 5321 F. Reasons why the project is exempt: The attached proposed ordinance is exempt fi-om the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that there is nothing in this ordinance or its implementation that could have a foreseeable significant effect on the environment. The ordinance will not affect the physical environment. The exemptions extend to State CEQA Guidelines Sections (b) (2) and (3) in that there is no possibility the activity in question may have a significant effect on the environment. In addition to the foregoing general exemptions, the following categorical exemptions apply: Sections (actions taken as authorized by local ordinance to assure protection of the environment) and (action by. agency for enforcement of a law, general rule, standard or objective administered or adopted by the agency, including by direct referral to the County Counsel as appropriate for judicial enforcement). In addition, none otthe conditions described in Section apply to this project. 0dt ~s, kisigi.~~re Date Deember 21, !

19 Attachment 5.G a COUNTY OF SANTA CRUZ PLANNING DEPARTMENT 701 OCEAN STREET, 4TH FLOOR, SANTA CRUZ, CA (831) FAX: (831) TDD: (831) KATHLEEN MOLLOY PREVISICH, PLANNING DIRECTOR April 4, 2011 AGENDA DATE: April 12, 2011 Board of Supervisors County of Santa Cruz 701 Ocean Street Santa Cruz, CA SUBJECT: COMBINED PUBLIC HEARING TO CONSIDER A PROPOSED MEDICAL MARIJUANA COOPERATIVE ORDINANCE APPLICABLE TO UNINCORPORATED AREAS OF SANTA CRUZ COUNTY AND TO CONSIDER A ONE YEAR EXTENSION OF A MORATORIUM IN COUNTY COASTAL ZONE AREAS ONLY, TO TEMPORARILY PROHIBIT MEDICAL MARIJUANA DISPENSARIES AND PRODUCTION HOUSES Members of the Board: On November 9,2010, your Board held a public hearing and extended a 45-day moratorium for ten months and 15 days to prohibit the establishment of medical marijuana dispensaries and production houses in the unincorporated area of Santa Cruz County. The initial 45-day moratorium was approved on September 28, 2010 in response to a written recommendation by Supervisors Coonerty and Leopold that staff conduct the necessary legal process for the County to formally consider an ordinance regulating medical marijuana cooperatives (Ordinance No. 5075). Ordinance No approved on November 9th extended the moratorium to allow for formal consideration by the public, Planning Commission, Board of Supervisors and Coastal Commission of an ordinance that would establish medical marijuana dispensary regulations and restrictions consistent with the Compassionate Use Act of 1996 (California Health and Safety Code Section ) and Senate Bil 420 (2003) (Health and Safety Code Sections ). On January 26 and February 9 of 2011, the Planning Commission held a public hearing to consider a proposed ordinance to establish standards to regulate the lawful distribution of medical marijuana by cooperatives and collectives in unincorporated areas of the county, and adopted a resolution recommending that the Board of Supervisors adopt the ordinance (see Planning Commission Resolution included as Attachment 5). As you may recall, the September 22, 2010 letter prepared by Supervisors John Leopold and Neal Coonerty recognized the need to establish clear rules for enforcement as stated: "While patient collectives such as the Wo/Men's Alliance for Medical Marijuana (WAMM) have existed in our community since before the passage of Prop. 215, only the City of Santa Cruz has established rules in our county regulating medical marijuana dispensaries. Over the last year, medical marijuana dispensaries have opened throughout the unincorporated areas. It is time to develop a set of reasonable regulations that modify our planning rules to cover these dispensaries in f ~fj5

20 , n commercial areas of our county. Development of an ordinance will establish clear rules for our Sheriff's Office to enforce, provide planning guidance for this new business segment, and ensure that patients of all income levels have access to prescribed medicine." (See letter included as Attachment 7.) Staff anticipates that similar to the Planning Commission hearing, the hearing conducted by your Board may require an extended discussion regarding how the proposed ordinance addresses the substance of the Supervisors letter. Albeit, Supervisor Coonerty has notified staff the he is not available to participate in an extended discussion during today's meeting, and therefore, staff is recommending that your Board receive the proposed ordinance, that reflects recommendations by the Planning Commission and continue the public hearing for the proposed collective/cooperative ordinance and for the proposed moratorium extension to May 3, 2011, when Supervisor Coonerty is available to participate,in an extended discussion. Content of Ordinance The proposed ordinance addresses the substance of the Supervisors' letter. Key provisions are summarized as follows: Cooperative Definition. Ordinance would add the following definition as Section M: "Medical Marijuana Cooperative. Any cooperative or collective of 10 or more persons where the primary purpose is to provide the lawful distribution of medical cannabis that has been recommended by a licensed physician, in strict accordance with Health and Safety Code Section et. seq." Zone DistrictsLevel 5 Review. The proposed ordinance would limit the location of medical marijuana collectives or cooperatives to the P-A (Professional and Administrative Offices), C-1 (Neighborhood Commercial), C-2 (Community Commercial) and C-4 (Commercial Services) zoning districts and require a Level 5 review. (See Map of zoning included as Attachment 9). Separation/Concentration. The proposed ordinance would require a minimum 600 foot separation from schools and pre-schools, and a minimum 800 foot separation between two or more medical marijuana cooperatives/collectives. Cooperative Exemptions. The approval of medical marijuana cooperatives that existed on September 28, 2010, that are located within and outside of a P-A, C-1, C-2, or C-4 zone district would be processed through an exemption process structured similar to an amortization process. The exemption periods are set forth below: Number of years in operation Length of Exemption 10 or more years 7 years 5 to 9 years 5 years o to 5 years 1 year Parking. The proposed ordinance establishes a minimum parking standard for collectives of 3.33 spaces per 1,000 square feet of gross floor area (one space per 300 square feet), consistent with the general office parking requirement. Performance Standards. The draft ordinance would establish other performance criteria including providing a management plan, limiting hours of operation, and limiting signage and internet advertising for any person wishing to establish a medical marijuana cooperative. Voluntary Advisory Group. During the Planning Commission hearing, there was public testimony supportive of establishing an advisory committee or working group to assist the County and permitted establishments with implementing the ordinance and operating in compliance with its provisions. A working group could perhaps also recommend additional or amended provisions in 65 2

21 0429 oc 2 H - the future, as needed based on experience with the ordinance. While the Planning Commission did not include a requirement in the ordinance for such a committee, staff and the Planning Commission do support the general idea of an "outside working group". While such a group would not be an official County commission, committee or task force, County staff could assist the group by providing certain information or by identifying issues that would benefit from discussion and advice back to the County. A working group consisting of medical marijuana care givers, qualified patients, cooperative/collective operators and medical marijuana advocates that reside in Santa Cruz County would be helpful in ensuring proper implementation and keeping up with regulatory changes at the federal and state level. The working group could work with the Planning Department, County Counsel's Offce and County Sheriff's Offce to develop purposeful information and educational materials for distribution and use by medical marijuana patients, caregivers, cooperatives/collectives and others. The information and educational materials could focus on fully informing potential medical marijuana patients, caregivers and others regarding state and county laws, local restrictions and guidelines. Other jurisdictions including San Francisco have created temporary advisory or task force committees, intended to review medical cannabis laws, to make recommendations for changes and to resolve conflicts. A San Francisco task force recently considered a ban on clustering, requiring background checks for owners, and an ordinance requirement to say why another dispensary (there were 24 licensed in SF in 2010) was needed. Also, San Francisco unlike most other jurisdictions has adopted public health rules to regulate the sale and distribution of medicinal marijuana in baked goods and other edible items. Most public health agencies have opted to not regulate marijuana, citing an agency conflict with federal food and drug regulations. A working group could discuss and forward advice regarding food- and drink-related medical marijuana products, perhaps coordinating with the County Environmental Health Department along with the other County departments. CEQA Determination The attached resolution with ordinance (Attachments 1, 2) is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) in that there is nothing in the proposed ordinance or its implementation that could have a foreseeable significant effect on the environment. The ordinance will not affect the physical environment. The exemptions described in Attachment 4 extend to State CEQA Guidelines Sections (b) (2) and (3) in that there is no possibility the activity in question may have a significant effect on the environment. In addition to the foregoing general exemptions, the following categorical exemptions apply: Sections (actions taken as authorized by local ordinance to assure protection of the environment) and (action by agency for enforcement of a law, general rule, standard or objective administered or adopted by the agency, including by direct referral to the County Counsel as appropriate for judicial enforcement). Local Coastal Program Consistency The proposed zoning amendments allow for a new non-principally permitted use in the P-A, C-1, C-2 and C-4 zone districts only. Medical marijuana cooperatives will not be allowed on agricultural lands thereby not resulting in loss of agricultural lands. Ordinance implementation will not, in itself, impact coastal access or negatively impact public viewsheds. The ordinance is not proposed to allow development or uses in the VA (Visitor Accommodations) or CT (Tourist Commercial) zone districts and, thereby, wil not impact visitor serving opportunities in the County. In the Coastal Zone, this means that a medical marijuana cooperative will require, in addition to a Level 5 Use Permit, a Coastal Permit appealable to the Coastal Commission. Any potential impacts on coastal resources will be addressed and appropriately conditioned, on a case by case basis, as part of the Coastal Permit process. 3 6S

22 ~0430 Extension of Moratorium No in Coastal Zones Board approval of medical marijuana amendments will serve to lift Interim Ordinance No (an extension of Ordinance No. 5075) enacted to temporarily prohibit medical marijuana dispensaries and production houses in the unincorporated area of Sana Cruz County for a period of ten months and 15 days. Your Board is being requested to extend the moratorium for one year beyond the legal date of expiration (September 28, 2011), for Coastal Zone areas to prevent dispensary and production houses to occur prior to Coastal Commission scheduling of a public hearing to consider the amendments. The extension will provide consistency with action taken by your Board. Pursuant to Government Code Section 65858, your Board is lawfully authorized to extend the moratorium in Coastal Zone areas for one year from September 28, 2011 after noticing is provided pursuant to Section and a public hearing. Staff anticipates that the Coastal review and processing of the proposed amendments will likely require less time than the maximum one year. Your Board can choose to terminate the moratorium ordinance earlier as soon as a proposed ordinance is in effect. Conclusion and Recommendation Numerous concerns have been raised in the community regarding the need for regulations to address impacts including, but not limited to, safety and the impact a proliferation and/or over concentration of medical marijuana dispensaries may have on the community as a whole; and many County residents seek access to medical marijuana, provided that the facilities are designed and located to minimize the concerns described above. It is therefore RECOMMENDED that your Board take the following actions: 1. Conduct a public hearing to consider the proposed ordinance amendments; 2. Continue the public hearing on the proposed ordinance amendments to Chapter of the County Code (Attachment 2 ), and the ordinance extending the moratorium for up to one year in Coastal Zone arèas, to the Board of Supervisor's meeting of May 3,2011; 3. Direct County staff to encourage formation of an outside medical marijuana working group (not a formal County commission, committee or task force) and to provide appropriate assistance to such a group, perhaps through the Wo/Men's Alliance for Medical Marijuana (WAMM). RE~ su~ County Administrative Officer 6l 4

23 BEFORE THE PLANNING COMMISSION OF THE COUNTY OF SANTA CRUZ, STATE OF CALIFORNIA RESOLUTION NO Attachment On the motion of Commissioner Dann duly seconded by Commissioner Britton the following is adopted: PLANNING COMMISSION RESOLUTION RECOMMENDING AMENDMENTS TO CHAPTER OF THE SANTA CRUZ COUNTY CODE RELATING TO THE REGULATION OF MEDICAL MARIJUANA COOPERATIVES WHEREAS, in 1996 the voters of the State of California approved Proposition 215, which was codified as Health and Safety Code Section , et seq. and entitled the Compassionate Use Act of 1996 (lithe Act"); and WHEREAS, the intent of Proposition 215 was to enable persons who are in need of marijuana for medical purposes to obtain and use it under limited, specific circumstances; and WHEREAS, on January 1, 2004, Senate Bil 420 became effective to clarify the scope of the Act and to allow cities and counties to adopt and enforce rules and regulations consistent with SB 420 and the Act; and WHEREAS, County staff has received inquiries from members of the public as to the possibility of establishing medical marijuana cooperatives in the unincorporated area of the County of Santa Cruz; and WHEREAS, concerns have been raised in the community regarding the need for regulations to address impacts including, but not limited to, safety and the impact that a proliferation and/or over concentration of medical marijuana cooperatives may have on the community as a whole; and WHEREAS, many County residents would likely seek access to medical marijuana provided that the facilities are designed and located to minimize the concerns described above; and WHEREAS, on September 28, 2010, the County of Santa Cruz Board of Supervisors enacted an urgency ordinance imposing a temporary moratorium on the establishment of medical marijuana dispensaries and production houses in the unincorporated area of Santa Cruz County; and WHEREAS, on November 9, 2010, the County of Santa Cruz Board of Supervisors extended the urgency moratorium for a period of 10 months and 15 f 85