REPORT ON THE REVIEW AND DEVELOPMENT OF REGULATIONS PERTAINING TO CANNABIS

Pursuant to Government Code Section 65858(d)

October 22, 2018

PurposeCalifornia Government Code Section 65858(d) provides that at least ten days before expiration of an interim ordinance or any extension, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to adoption of the interim ordinance(s).

This report outlines the City’s efforts taken to consider cannabis activities and specifically commercial cannabis activities.

Background

On November 8, 2016, Proposition 64 was adopted by California voters. The passage of Proposition 64 resulted in a number of implications for local governments, including those listed below.

Legalizes the nonmedical use of marijuana by persons 21 years of age and older.

Legalizes the indoor personal cultivation of up to six marijuana plants per residence, subject to reasonable restrictions that may be imposed by local governments. However, a local government may not impose a ban on indoor cultivation.

Legalizes the outdoor personal cultivation of up to six marijuana plants per residence, subject to reasonable restrictions that may be imposed by local governments. In contrast to the provisions concerning indoor cultivation, a local government may choose to completely ban outdoor cultivation.

Establishes a timetable for the commercial cultivation, production, marketing, delivery, sale and possession of nonmedical marijuana, subject to a State licensing process.

Proposition 64 authorizes local jurisdictions to adopt reasonable rules and regulations pertaining to such personal cultivation, indoor and outdoor, and commercial cannabis activities. In order to restrict cannabis activities while local regulations were developed and adopted, the City Council enacted the following moratoria.

Moratorium on the Indoor and Outdoor Cultivation of Non-Medicinal Cannabis.

At its meeting of November 7, 2016, the City Council adopted two moratorium ordinances imposing a temporary prohibition on the indoor and outdoor cultivation of non-medicinal cannabis, respectively, except for the indoor cultivation of up to 6 plants per residence subject to certain conditions. On December 2, 2016, the City Council voted to extend the moratoria for 10 months and 15 days. On November 6, 2017, the City Council adopted Ordinance Nos. 07-2017 and 08-2017 which extended the moratorium period for one additional year to November 6, 2018. The moratorium was scheduled to expire on that date. However, on October 1, the City Council adopted a regular ordinance regulating the personal cultivation of cannabis both indoors and outdoors which shall take effect 30 days following the date of adoption. Since that date will precede the expiration of the moratoria, the regular ordinance will repeal the moratoria on the date that it takes effect. Thereafter, permanent regulations for personal cultivation will be in effect throughout the City.

Moratorium on the Indoor and Outdoor Cultivation of Medicinal Cannabis and Commercial Cannabis Activities. At its meeting of November 6, 2017, the City Council adopted an ordinance imposing a temporary moratorium on the indoor and outdoor cultivation of medicinal cannabis and commercial cannabis activities, except for the indoor cultivation of up to 6 plants per residence for medicinal purposes and the delivery of medicinal cannabis by businesses outside the city subject to certain conditions. On December 4, 2017, the City Council adopted Ordinance No. 12-2017 extending the moratorium for 10 months and 15 days to November 5, 2018. The moratorium will expire on that date unless it is extended for up to an additional one-year period. However, on October 1, the City Council adopted a regular ordinance regulating the personal cultivation of cannabis both indoors and outdoors which shall take effect 30 days following the date of adoption. Since that date will precede the expiration of the moratoria, the regular ordinance will repeal the personal cultivation provisions of the moratorium on the date that it takes effect. Thereafter, permanent regulations for personal cultivation will be in effect throughout the City. An Urgency Ordinance extending the temporary moratorium on commercial cannabis activities which would otherwise expire on November 5, 2018, will be considered on October 22.

Summary of Measures Taken to Date

November 7, 2016 to Date. City staff has researched the recently adopted State laws concerning cannabis, the licensing types and regulations under development by State agencies, and the measures undertaken by other communities with respect to the regulation of cannabis.

In order to replace the temporary moratoria with permanent cannabis regulations, the City Council engaged in the process of developing local regulations addressing medicinal and adult-use commercial cannabis activities. To ensure that technical issues were appropriately addressed and to expedite the process, the City Council allocated funding to contract with MuniServices, a consulting firm to local governments with expertise in cannabis audit and

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consultative services to several localities in California, to assist in this effort. In August 2017, MuniServices was hired to assist the City in developing a comprehensive cannabis policy.

September 11, 2017. The City Council held a public workshop on cannabis in order to:

1. Provide an overview on state regulations affecting cannabis (both recreational and medicinal) and options/issues/opportunities facing cities.

2. Inform the Council and the community about the status of regulations in the City of Sonoma.

3. Receive an update about the status of cannabis in Sonoma County and Sonoma Valley specifically.

4. Learn about status of other agencies in the region with respect to cannabis regulation.5. Hear from law enforcement regarding cannabis.6. Understand policy options facing City of Sonoma.

A panel of speakers presented at the workshop, including subject matter experts from MuniServices, Sonoma Police, City and Sonoma County Planning.

Over the course of meetings held on December 4 and December 12, 2017, the City Council directed staff to proceed with a community-based process to investigate and explore a medicinal dispensary (or dispensaries), as well as medicinal cannabis testing and manufacturing facilities. This process included two community workshops, held on March 28 and April 11, 2018. In addition, Councilmembers undertook field trips to dispensaries, manufacturing, and testing businesses in other communities.

Simultaneously, staff began preparing a permanent ordinance for personal cultivation which would prohibit outdoor cultivation and permit indoor cultivation of up to 6 cannabis plants and submitted the ordinance to the Planning Commission for review and comment. At its meeting on March 8, 2018, the Planning Commission recommended that the City Council adopt the proposed ordinance. On April 16, 2018, the City Council introduced the personal cultivation ordinance recommended by the Planning Commission with only a few minor changes. On May 30, during the review of the second reading of the personal use ordinance, the City Council provided direction regarding options for personal use. Specifically, the City Council gave direction to consider limited outdoor cultivation (three (3) cannabis plants to be allowed outside) subject to conditions as may be reasonable and appropriate for the Council’s consideration. Accordingly, the ordinance that was being considered for adoption was not in fact adopted by the City Council.

At that same meeting of May 30, the City Council also considered the question of allowing commercial cannabis activities and provided direction for an ordinance that would prohibit all commercial cannabis activities (including dispensaries, retail, manufacturing and testing establishments) with the single exception of deliveries of medicinal cannabis to residents from licensed and permitted cannabis delivery businesses located outside the city. On September 13, 2018, an ordinance prohibiting all commercial cannabis activities except deliveries of medicinal cannabis subject to certain conditions was reviewed by the Planning Commission, at

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which time the Planning Commission recommended the adoption of the ordinance to the City Council and further recommended that an active discussion be placed on a future Planning Commission agenda for a medicinal dispensary, among other topics, after the ordinance is adopted.

On September 24, the City Council took action to introduce an ordinance that would regulate personal cultivation of cannabis but would not include commercial cannabis activities regulations. The City Council was informed at that time that staff would be placing before it an ordinance that would extend the temporary moratorium on commercial cannabis activities for its consideration prior to the expiration of the moratorium currently in effect on November 5, 2018. Since a regular ordinance establishing permanent regulations on personal cultivation of medicinal cannabis (as well as non-medicinal cannabis) was introduced at the same meeting and later adopted by the City Council, the personal cultivation provisions of the existing moratorium have been rendered unnecessary and are repealed as of the effective date of the personal cultivation ordinance. Accordingly, the moratorium extension should not include personal cultivation provisions and has been narrowed to addressing commercial cannabis activities only.

Next Steps

At its meeting of October 22, 2018, the City Council will consider taking action on a proposed extension of an Urgency Ordinance establishing a temporary moratorium on commercial cannabis activities. It is expected that an extension of the moratorium for an additional one-year period will give the City sufficient time to determine the permanent regulations that should apply to commercial cannabis activities, if any be allowed within the City. Staff plans on bringing back a permanent ordinance for commercial cannabis in November.

Posted on the City’s web site on October 3, 2018.

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