1. Consideration of Action Re: Commercial Cannabis Businesses
City Council
February 26, 2018

2. Background
In response to changes in state law regarding the legalization of marijuana, staff conducted numerous public meetings to seek input on changes to Pasadena’s regulations regarding commercial cannabis uses
Meetings were held with the community, EdTech, Planning Commission, and City Council

3. Background
Given the State’s mandatory deadline of January 2018 for the implementation of its licensing mechanism, the City Council elected to take a conservative approach and clarified the City’s existing bans on commercial cannabis activity
With the exception of allowing medical cannabis deliveries into the City, all commercial cannabis uses were prohibited

4. Background
The City Council determined that Pasadena would take a measured approach to the legalization of cannabis
Preserve local control to make future decisions about the cultivation, manufacturing, and sale of cannabis products in Pasadena
Allow the City to observe the rollout of the State’s licensing and regulatory mechanism; learn best practices from other cities
No time within which to act was proposed

5. Background
Proponents submitted a referendum petition against the ordinance that banned cannabis land uses
Referendum failed for lack of enough valid signatures
Proponents then submitted an initiative measure that would allow commercial cannabis businesses, and a tax
Would legalize all dispensaries currently operating illegally and would designate such illegal dispensaries as non-conforming land uses so that the City could not apply conditions to operations

6. Background
On January 22, 2018, the City Council directed staff to prepare and present ordinances regulating and taxing commercial cannabis businesses and all required documents for Council’s consideration of placement on the ballot of the June 5, 2018 special election
As directed, staff has prepared Agenda Reports responsive to the establishment of proposed regulations, taxation, and all required documentation that would allow the City Council to place cannabis regulations on the June 5, 2018 ballot

7. Consideration of Regulations and Taxation
Item 24 – Proposed Regulations: Developed with intradepartmental coordination in consideration of input received during 12 public meetings and consideration of emerging standards;
Item 25 – Proposed Taxes: Developed based on best practices in consideration of comparable municipal taxes already established;
Item 26 – Resolutions Calling for Special Election

8. Preserving Local Control
LAND USE REGULATIONS
Exercise local regulatory control over an important land use; protect residents from secondary effects
TAXATION
Help to fund general municipal services (police and code enforcement services necessary for the proper administration of regulations), as well as promote health education regarding the dangers of smoking cannabis, particularly to young people

9. Overview of Regulations
The proposed regulations:
Are built on the input received during the public outreach effort and multiple public meetings
Utilize best practices and emerging approaches to the permitting and implementation of cannabis regulations
Take into consideration potential community impacts
Maintain a cautious and slow approach to cannabis regulations through limited permit types and a limited number of overall permits

10. Overview of Regulations
Amend:
Title 5 – Business Licenses and Regulations
Title 8 – Health and Safety
Title 17 – Zoning
Allow 3 cannabis business types to operate in the city:
Retailer – max of 6; no more than one/ council dist.
Cultivation Site – max of 4
Testing Laboratory – max of 4

11. Application Procedure
City Manager would promulgate the procedures to govern the application process, including:
Providing objective review criteria
Appointing a selection committee (3 members)
Soliciting applications

12. Permittee Selection Process
Initial 30-day application period (w/ subsequent 30-day application periods when permits are available)
City Manager (or his/her designee) provides initial review for compliance with PMC
Selection committee reviews and scores each application
Top applicants in each permit category are required to secure a business location and apply to Planning to obtain any required land use approvals or entitlements
Applicants shall also acquire any other necessary local permits, e.g. Health Permit
Applicants that have obtained land use approvals shall obtain a City business license from the Finance Department
Commercial cannabis permit issued by the City
Applicants that have approved commercial cannabis permits issued by the City shall obtain a license from the State

13. Commercial Cannabis Permit
A commercial cannabis permit would be valid for one (1) year from the date of issuance
It may not be transferred, does not run with the land, and is valid only at the original commercial cannabis business site unless a transfer site is approved by the City

14. Commercial Cannabis Regulations

15. Commercial Cannabis Regulations

16. Commercial Cannabis Regulations

17. City Council: Background
CL (Commercial, Limited)
CO (Commercial, Office)
CG (Commercial, General)
IG (Industry, General)
Central District

18. City Council: Background
CL (Commercial, Limited)
CO (Commercial, Office)
CG (Commercial, General)
IG (Industry, General)
Central District
Schools (600 feet)

19. City Council: Background
CL (Commercial, Limited)
CO (Commercial, Office)
CG (Commercial, General)
IG (Industry, General)
Central District
Schools (600 feet)
Parks (600 feet)

20. City Council: Background
CL (Commercial, Limited)
CO (Commercial, Office)
CG (Commercial, General)
IG (Industry, General)
Central District
Schools (600 feet)
Parks (600 feet)
Churches (600 feet)

21. City Council: Background
CL (Commercial, Limited)
CO (Commercial, Office)
CG (Commercial, General)
IG (Industry, General)
Central District
Schools (600 feet)
Parks (600 feet)
Churches (600 feet)
Libraries (600 feet)

22. City Council: Background
CL (Commercial, Limited)
CO (Commercial, Office)
CG (Commercial, General)
IG (Industry, General)
Central District
Schools (600 feet)
Parks (600 feet)
Churches (600 feet)
Libraries (600 feet)

23. City Council: Background
CO (Commercial, Office)
Schools (600 feet)
CL (Commercial, Limited)
Parks (600 feet)
CG (Commercial, General)
Churches (600 feet)
IG (Industry, General)
Libraries (600 feet)
Central District
Residential Buffer: 600 feet

24. City Council: Background
CO (Commercial, Office)
Schools (600 feet)
CL (Commercial, Limited)
Parks (600 feet)
CG (Commercial, General)
Churches (600 feet)
IG (Industry, General)
Libraries (600 feet)
Central District
Residential Buffer: 300 feet

25. City Council: Background
CO (Commercial, Office)
Schools (600 feet)
CL (Commercial, Limited)
Parks (600 feet)
CG (Commercial, General)
Churches (600 feet)
IG (Industry, General)
Libraries (600 feet)
Central District
Residential Buffer: 200 feet

26. City Council: Background
CO (Commercial, Office)
Schools (600 feet)
CL (Commercial, Limited)
Parks (600 feet)
CG (Commercial, General)
Churches (600 feet)
IG (Industry, General)
Libraries (600 feet)
Central District
Residential Buffer: 100 feet

27. Recommendation It is recommended that the City Council:
Find that the proposed action is not a project subject to CEQA pursuant to Section of CEQA and Sections (c)(2), (c)(3), and of the State CEQA Guidelines and, as such, no environmental document is required for the action; and
Approve submittal of the ordinance to the voters of the City of Pasadena.

28. End of Presentation
City Council
February 26, 2018