DATE: December 15, 2015
TO: Board of Supervisors
SUBMITTED BY: Daniel C. Cederborg, County Counsel
SUBJECT: New California Laws Regulating Cultivation of Medical Marijuana and Dispensaries (AB 266, SB 643, AB 243); Possible Amendments to County of Fresno Medical Marijuana Ordinances
RECOMMENDED ACTION(S):
TITLE
Receive Report from County Counsel on Recently Enacted State Statutes Regarding Regulation of Medical Marijuana Cultivation and Dispensaries (AB 266, SB 643, AB 243) and on County of Fresno Medical Marijuana Ordinances; Provide Direction Regarding Possible Amendments to Ordinances.
REPORT
ALTERNATIVE ACTION(S):
There are no alternative actions.
FISCAL IMPACT:
There is no increase in net County cost associated with the recommended action as this is a report to your Board. However, should there be future fiscal impacts resulting from ordinance amendments, those impacts will be included within those respective agenda items.
DISCUSSION:
The Governor recently signed into law three bills (AB 266, SB 643 and AB 243) which together provide for statewide regulation of the commercial cultivation of medical marijuana and the operation of dispensaries for medical marijuana. The legislation, which will take effect January 1, 2016, expressly reserves to cities and counties their authority to regulate or ban marijuana cultivation or dispensaries through land use or health and safety ordinances (new Business and Professions Code §§ 19315, 19316; Health and Safety Code § 11362(g)).
The new state laws, contained primarily in various sections of the Business and Professions Code and Health and Safety Code require state licensure for medical marijuana cultivators and dispensaries. Small growers for individual or limited caretaker use are not covered by the legislation. For both the cultivators and dispensaries, no state license can be issued unless the local city or county jurisdiction also issues a license or approval. Various types of licenses for various size commercial cultivations and dispensaries are prescribed, with specific requirements for the licensees. Licensees and their employees will be subject to criminal background checks as well as being required to meet other conditions of licensure for either commercial cultivation or the operation of a dispensary. In the area of commercial cultivation of medical marijuana, strict product tracking requirements are imposed. Transport of medical marijuana is also made subject to regulation by the state. Regulations covering various aspects of the new laws will be promulgated by numerous state agencies.
The legislation also tightens laws on physicians writing medical marijuana recommendations, making the issuance of recommendations without the actual interview, examination or diagnosis of a patient a breach of professional standards and regulating the advertising of the provision of medical marijuana recommendations. Cities and counties are also empowered to charge fees for permits or licenses of commercial cultivations or dispensaries, or to impose taxes on transactions.
For counties or cities that do not have in place ordinances or permissive zoning schemes that prohibit or regulate the cultivation of medical marijuana in place effective March 1, 2016, the State of California will become the sole regulatory agency for commercial cultivation and dispensaries (new Health and Safety Code §11362.777(c)(4)). Because the County of Fresno has a current ban on cultivation anywhere in the unincorporated areas under Fresno Ordinance Code Chapters 10.60, 10.62 and 10.64, the County has met this requirement and the State of California would not become the sole licensing agency for cultivators.
Because of the existing ordinances banning cultivation of medical marijuana in the County, and the effect of the permissive zoning provisions in the County that do not allow dispensaries as a permitted use in any zone, the new state legislation will have limited direct impact on the cultivation or dispensing of medical marijuana in the County. However, in light of the new statewide system of regulation of medical marijuana and based on suggestions made by several Board members at open meetings, staff seeks direction on several areas of possible ordinance amendments or additions from the Board of Supervisors:
1. Whether the County should ban or regulate deliveries of medical marijuana within the County. The new laws regulate transportation of medical marijuana and provide rules for home delivery. While the County cannot restrict the transportation of state-legal medical marijuana through the County of Fresno, the County can regulate or ban home deliveries within the unincorporated area. Currently, there is no County ordinance in place dealing with this topic.
2. Several Board members have mentioned a desire to provide for a hearing officer to hear appeals of cultivation citations under the County ordinances.
3. The Board may have other areas it wishes to direct staff to address with respect to the current ordinance scheme.
Upon receiving direction from the Board, staff will return with proposed amendments or new ordinances, if any, at the January 12, 2016 Board meeting.
REFERENCE MATERIAL:
Fresno County Ordinance Code Chapters 10.60, 10.62 and 10.64.
CAO ANALYST:
Ron Alexander