TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Christopher Tracy, AICP, Senior Planner, Advanced Planning
SUBJECT: Establishment of Medicinal Cannabis Delivery Location and Operational
Standards and Miscellaneous Updates to Existing Cannabis Standards
(MCA-2023-00008) to amend Sections 16.08.010, 16.10.010, 16.11.010,
16.12.010, 16.13.010, 16.14.010, and 16.44.250 of the Murrieta
Development Code and adoption of a Categorical Exemption pursuant to
the California Environmental Quality Act
title
end
RECOMMENDATION
recommendation
Hold a Public Hearing;
Find that the action is consistent with the California Environmental Quality Act (CEQA) Guidelines in accordance with Section §15060(c)(2) and Section §15061(b)(3); and
Introduce Ordinance No. 602-24 entitled: An Ordinance of the City Council of the City of Murrieta, California, Amending Title 16 of the Murrieta Development Code to Revise Sections 16.08.010, 16.10.010, 16.11.010, 16.12.010, 16.13.010, 16.14.010, and 16.44.250 for the Establishment of Medicinal Cannabis Delivery Location and Operational Standards and Miscellaneous Updates to Existing Cannabis Standards.
body
PRIOR ACTION/VOTE
On December 19, 2023, the City Council adopted an Urgency Ordinance establishing a 45-day temporary moratorium on the establishment of expansion of medical marijuana dispensaries or facilities, and mobile medical marijuana dispensaries within city limits. (Vote 5-0)
On January 10, 2024, the Planning Commission recommended that the City Council adopt the proposed ordinance subject to the addition of development standards pertaining to signage and advertising, clarification of storage requirements, and operational standards for deliveries. Standards for these topics are included in the ordinance.
The Planning Commission also directed staff to conduct further research for other standards regarding firearms, locational requirements, and definitions used by the state; however, staff determined no additional changes to the ordinance were required.
On January 16, 2024, the City Council approved a continuation of the Urgency Ordinance established for a 45-day temporary moratorium as noted above. (Vote 5-0)
CITY COUNCIL GOAL
Provide a high level of innovative public safety.
BACKGROUND
In 1996, voters approved Proposition 215, establishing the ability for doctors to prescribe "medical cannabis" to patients and their primary caregivers. The National Institute on Drug Abuse defines medical cannabis as "using the whole, unprocessed marijuana plant or its basic extracts to treat symptoms of illness and other conditions." In 2022, the state enacted Senate Bill 1186 (SB 1186), which is known as the Medicinal Cannabis Patients' Right to Access Act, based on the premise that there are barriers to medicinal cannabis access for patients in California. For reference, statewide, SB 1186 became effective on January 1, 2024.
SB 1186 pre-empts the City's ability to regulate the delivery and sale of medicinal cannabis. SB 1186 bars cities from adopting or enforcing any regulation that prohibits the sale of medicinal cannabis to medicinal cannabis patients or their primary caregivers or that otherwise imposes an unreasonable restriction on the sale or delivery of medicinal cannabis.
The legislation under SB 1186 further prohibits cities from adopting or enforcing any regulations that have the effect of prohibiting the sale by delivery within the City of medicinal cannabis to medicinal cannabis patients or their primary caregivers in a timely and readily accessible manner and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the City. The legislation is included in Attachment 1 for reference. The City's current limitations on non-medical (retail) cannabis businesses, such as prohibitions of recreational cannabis sales and retail storefronts for recreational cannabis, remain unaffected by the proposed modifications.
Although SB 1186 prohibits local bans on establishing medicinal cannabis delivery businesses, it allows cities to adopt local standards for permitting, location, and the operational components of a medicinal cannabis delivery service business. However, as detailed under SB 1186, a city may not establish regulations that have the effect of prohibiting the sale of medicinal cannabis by delivery, including the following:
• Regulate the number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the local jurisdiction.
• Regulate the operating hours of medicinal cannabis businesses.
• Regulate the number or frequency of sales by delivery of medicinal cannabis.
• Regulate the types or quantities of medicinal cannabis authorized to be sold by delivery.
• Prohibit the establishment of physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted by a licensed non-storefront operator.
However, SB 1186 allows the City to impose reasonable regulations through the City's land use authority (zoning) and police powers that are not otherwise pre-empted by state law. Therefore, the City can adopt and enforce reasonable regulations for the delivery of medicinal cannabis related to:
• Zoning requirements.
• Security or public health and safety requirements.
• Licensing requirements.
• Imposing or collecting applicable state or local taxes on retail sales of medicinal cannabis occurring within the City.
• Regulations consistent with requirements or restrictions imposed on a cannabis business by state law under Division 10 of the California Business and Professions Code or regulations issued by the Department of Cannabis Control.
If the City does not update the Municipal Code to provide for the delivery of medicinal cannabis to qualified patients, it could expose the City to litigation as the City could be in violation of state law.
Implementation of Standards
With respect to the implementation of these requirements, the City Council enacted a temporary 45-day interim moratorium on the establishment of businesses in the City that engage in the sale or delivery of medicinal cannabis in December 2023 (Attachment 2) to have time to establish local regulations to address locational and operational aspects of such businesses. This temporary interim moratorium (Attachment 3) was extended for a second time for ten(10) months and 15 days at the City Council's January 16, 2024, meeting since these standards were still under development. The extension of the moratorium is recommended to be terminated upon the effective date of an ordinance establishing permanent standards, assuming the City Council adopts an ordinance within the current moratorium period.
For reference, staff brought forward this item for the Planning Commission's consideration at its January 10, 2024, meeting. As detailed below, the Commission recommended approval of the ordinance with the direction for staff to research a few items further and recommended a few modifications within the ordinance itself. In summary, this included the following:
• Research further the utilization of firearms with respect to security and business operations. After collaborating internally with the City Attorney's Office and Police Department, it was determined that the best process would be to have this review as part of the application review process versus having specific regulations.
• Research further the state's definition of Medicinal Cannabis as it relates to the last portion of the state definition: "...or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction." Research indicates that this may have been included by the legislature to encourage the expansion of programs that may not yet exist pertaining to the delivery of medicinal cannabis. Staff believes it would be best to leave as currently drafted to avoid any potential future issues with conflicting definitions with California Department of Cannabis Control licensing. The City's provisions can always be amended to meet changes in state law as needed.
• Clarification within the ordinance that signs shall contain no advertising of other companies, brands, goods, or services, or of the use.
• Adding larger medical facilities, such as hospitals, urgent care, and similar medical facilities, as a sensitive use from a medicinal cannabis distribution facility hub. Staff reviewed Table 16.12-1 "Use Table for Business Park and Industrial Districts" of the MMC, and these types of facilities are not currently allowed in the Business Park (BP) Zone, so no additional modifications are needed to the ordinance.
• Clarification within the ordinance the use of the facility shall be limited to the storage of medicinal cannabis and medicinal cannabis products solely within a secured, isolated interior environment.
• Clarification within the ordinance that no product shall be allowed to remain in vehicles without an employee present in the vehicle. This would require two employees to make deliveries per delivery vehicle. This requirement reduces the risk of product theft since a delivery vehicle will never be left unattended.
• Clarification within the ordinance that vehicle signage is prohibited. This includes signs, wraps, and advertising of business or industry-related products. This prohibition reduces the potential for the targeted theft of high-value products contained within a delivery vehicle.
Analysis
Consistent with SB 1186, staff recommends that the City Council introduce an ordinance (Attachment 4) that provides the framework for the establishment of medicinal cannabis delivery service business locations within the City subject to licensing and zoning applications, security, screening, sign regulations, delivery vehicle standards, odor control requirements, recordkeeping requirements, operator and employee standards, as well as compliance with restrictions imposed on cannabis businesses by state law and other regulations issued by the California Department of Cannabis Control. The ordinance also makes miscellaneous updates regarding existing terminology pertaining to cannabis already contained in the Murrieta Municipal Code (MMC) to ensure consistency with proposed regulations.
Ordinance Summary
The following is a summary of the proposed ordinance components. Additional details are located within the text of the draft ordinance. The proposed changes are provided within a redline format in Attachments 4 and 5, respectively:
Clean-up of Existing MMC Section 16.44.250 "Marijuana and Hemp Use"
• Section renamed to "Cannabis and Hemp Use"
• Modifying naming terminology from "Marijuana" to "Cannabis" consistent with state terminology throughout this Section.
• Updating existing Definitions Section (MMC Chapter 16.110) to reflect "Cannabis" terminology
• Adding a new "Medicinal Cannabis Delivery Service" subsection containing the new requirements as described in greater detail below.
• The existing "Public Nuisance," "Violations," "Conflicting Provisions," and "Severability" Sections will remain the same.
New Requirements
The following summarizes the zoning regulations, building, and operational standards that the ordinance will apply to medicinal cannabis delivery service businesses, all of which will be verified during the medicinal cannabis delivery service license application process.
Zoning and Location Criteria
For context, a Medicinal Cannabis Delivery Service business can be most closely associated with the existing "Wholesale and Distribution" use listed in MMC Chapter 16.12 at Table 16.12- 1 - "Use Table for Business Park and Industrial Districts" in MMC Title 16 - Zoning, which is a permitted use in the Business Park (BP) Zone. To help with future clarification for staff and future applicants, the proposed ordinance will identify this use independently within the use table with the associated separation criteria as described below.
As proposed, a medicinal cannabis delivery business shall be located at least 500 feet from the following sensitive receptor locations or any other medicinal cannabis delivery business location:
• Residential zones
• Public or private schools
• Daycare centers
• Churches
• Public parks
• Youth activity centers
Under the proposed criteria, all measurements would be taken from the closest property line of the delivery business to the closest property line of the sensitive receptor location. For business condominiums, this measurement would be taken from the outer boundaries of the common parcel where the structure is located and not from the building itself.
Attachment 6 includes a map of the eligible existing properties within the BP Zone that identifies the 500-foot radius separation requirements from sensitive uses as mapped currently. As identified on the attached map, there should be several potential locations within this zone where a future business could be located. Lastly, staff is proposing that a delivery business interior area not exceed 3,000 square feet in size (cumulative total) to ensure that the scale of operations would not result in potential traffic and access issues as it relates to surrounding uses and local roadways. This is similar to the approach other jurisdictions take with these types of locations.
The following describes the elements of the proposed ordinance:
Definitions
• New definitions for Medicinal Cannabis and Medicinal Cannabis Delivery Service.
Requirements for Medicinal Cannabis Delivery Service License
• Approval of medicinal cannabis delivery service license is required.
• A separate medicinal cannabis delivery service license shall be required for each physical address location within the City.
• A completed City application as reviewed by the Police Department.
• Indemnification Agreement.
• Proof of Insurance.
• The business owner and the property owner, if different, shall sign the medicinal cannabis delivery service license application form.
• Approvals would be issued for one year for a location or once the permanent standards are in place, whichever occurs first. Thereafter, a new or renewal license application must be submitted to continue the Medicinal Cannabis Delivery Service.
Application Requirements
• Site and Floor Plan.
• Lighting Plan.
• Copies of the applicant's current Cannabis License from the CA Department of Cannabis Control are required.
• Odor Control Management Plan.
• Safety and Security Plan.
• Existing Sensitive Uses Information.
Operator Requirements
• Background Check. All owners, operators, partners, investors, employees, and agents must submit to a background check.
Operational Requirements
• Compliance with state requirements, except where local requirements apply.
• Business operations must be conducted in conformance with the approved Medicinal Cannabis Delivery Service license and all approved plans.
• A City Business License shall be obtained prior to operation and maintained at all times.
• Acquisition of required City permits (i.e., Building, Fire, etc.).
• Dimensions for delivery service business shall not exceed 3,000 square feet of gross building area.
• Visibility and Signs. No cannabis or cannabis products may be visible at a location or from delivery vehicles.
• Vehicle Signage. Due to the potential for the targeted theft of high-value products as contained within a delivery vehicle, and in order to protect the public's safety and welfare, there should be no vehicle signs or wraps identifying the business, or advertising products related to the business, or industry-related products/services - (added by Planning Commission).
• Signs shall be limited to one wall sign consisting of the property address only.
• Signs shall contain no advertising of other companies, brands, goods, or services, or of the use - underlined portion added by Planning Commission.
• Hours of operation as authorized by the state.
• Food products compliance with state laws for edibles.
• Odor control requirements.
o Approved Odor Control Management Plan.
• Business activities within a fully enclosed and secure structure.
• Delivery to medicinal cannabis patients or their primary caregivers only.
• Inspected products as tested by a qualified third-party testing facility as required by applicable state laws.
• Labeling and packaging shall be labeled and placed in a tamper-evident package and required state standards.
• Product tracking system in compliance with California Cannabis Track and Trace system.
• Recordkeeping requirements in compliance with Department of Cannabis Control requirements.
• Prohibited activities.
o No on-site sales and pick-up orders.
o No cannabis paraphernalia sales.
o Sales or delivery to other cannabis businesses (other than to other delivery locations owned by the same entity) is prohibited.
o A Medicinal Cannabis Delivery Service shall not grow, cultivate, manufacture, or process cannabis.
o No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or cannabis at or within 200 feet of the physical address location of a Medicinal Cannabis Delivery Service.
o No loitering shall be permitted within 50 feet of any Medicinal Cannabis Delivery Service.
• Permitted Locations.
o A permitted use in Business Park zone (BP).
o A physical delivery logistics location shall not be located within 500 feet of sensitive uses or any other medicinal cannabis delivery business location.
o Measurement would be taken from the outer boundaries of the common parcel where the structure is located and not from the building.
• Screening, Safety, and Security Requirements
o No public access is allowed.
o Outdoor vehicle storage shall be required to be provided in a secured area with screening methods (fencing and landscaping).
o Secured site access. All exterior vehicle parking areas shall be gated and secured and meet Murrieta Fire & Rescue and Police Standards.
o Surveillance systems for property.
o Security video retention - Video from the security surveillance cameras shall be maintained for a period of not less than thirty (30) days and shall be made immediately available to City representatives upon request.
o Alarm system - A third-party and centrally monitored fire, robbery, and burglar alarm system shall be installed and maintained in good working condition at the premises.
o Right of inspection. All vehicles and facilities permitted pursuant to this article are subject to inspection by City personnel any time the operator is exercising privileges under an operator permit. Prior notice of an inspection is not required.
o Providing secure storage for products. The use of the facility shall be limited to the storage of medicinal cannabis and medicinal cannabis products solely within a secured, isolated interior environment (underlined portion added by Planning Commission).
o Ensure that all entrances and exits of the medicinal cannabis delivery service business are locked at all times, with entry strictly controlled with panic hardware.
o Disposal requirements authorized by State license waste management plan and City approved third-party hauler.
o Report of violations within 24 hours.
o Designated security liaison identified for the Police Department.
• Delivery/ Delivery Vehicle Requirements
o GPS tracking of vehicles - GPS data shall be made available to the Police Department upon request.
o Product shall be stored during transport in secure safes.
o No product to remain in vehicles without a driver an employee (underlined portion modified by Planning Commission).
o Delivery vehicles shall be stored in approved secured and screened vehicle parking/ loading areas only.
o No publicly accessible parking - parking is limited to employees.
o Delivery vehicles shall be registered with the Police Department.
o A direct communication system with the delivery-only medical cannabis operator is required.
o In-Transit requirements:
Ø Only owners, operators, or employees of the delivery-only medical cannabis operations may be present in vehicles during deliveries.
Ø No more than the maximum amount of medical cannabis permitted under state law.
Ø Delivery vehicles may only travel between fixed locations of delivery-only medical cannabis operations and the residential addresses specified by customers while transporting medical cannabis and/or medical cannabis products.
Ø All delivery drivers shall carry valid identification and proof of employment at a licensed delivery-only medical cannabis operation.
Ø All delivery drivers shall carry a copy of the delivery-only medical cannabis regulatory permit, a copy of the delivery request, a form of government-issued identification, and all other information required by State law. The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager's designee.
Ø All drivers shall carry an inventory log of cannabis and cannabis products being transported.
Ø Delivery drivers shall be trained in a manner to facilitate verification of qualified patients.
Ø Medicinal cannabis and medicinal cannabis products may be transported by one Medicinal Cannabis Delivery Service's physical address location to another Medicinal Cannabis Delivery Service's physical address location if the state licenses for both locations are held by the same licensee.
• Owner, Operator, and Employee Requirements.
o Twenty-one (21) years of age or older.
o Background check.
o Convictions. No owner, operator, investor, partner, employee, or agent of a delivery-only medical cannabis operation shall have been convicted of a felony or crime of moral turpitude nor has been found by any State or local jurisdiction to have committed a violation of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). The Chief of Police reserves the right, in his or her sole discretion, to waive this requirement in relation to violations of MAUCRSA, in the event that he or she determines that the violation of MAUCRSA was minor in nature and would not undermine the safe and effective operation of the proposed business in accordance with applicable laws.
o Owner/Employee rosters and Notice of Change.
o City revocation process.
o City appeal process.
• Business activities within a fully enclosed and secure structure.
• Revocations - Any violation of these requirements may result in the revocation of the ability to operate.
• Appeal standards consistent with existing City processes.
The proposed amendments have been developed based on reference materials and guidelines provided by SB 1186 and from the review of examples from other local jurisdictions. In closing, with the implementation of these new standards, the City will be in full compliance with State law concerning this issue area.
Environmental
The proposed code amendment has been evaluated pursuant to the California Environmental Quality Act (CEQA) - Public Resources Code Sections 21000-21189 and the CEQA Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3 Sections 15000-15387), and it has been determined that the amendments will have no significant adverse impacts on the environment as this is an update to existing operating standards related to medical marijuana delivery consistent with State requirements and is similar in nature to other delivery services that occur throughout the City on a daily basis. Furthermore, the amendment is exempt pursuant to the CEQA Guidelines, specifically Section 15060(c)(2), because the proposed ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment; and Section 15061(b)(3), because the ordinance is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment (Attachment 7).
FISCAL IMPACT
None.
ATTACHMENTS
1. Senate Bill 1186
2. Interim Urgency Ordinance No. U-600-23
3. Interim Urgency Ordinance No. U-601-24
4. Draft Ordinance No. 602-24
5. Ordinance No. 602-24 Redline
6. Example 500-Foot Separation Radius Maps
7. Draft Notice of Exemption