CPC-2017-2260-CACommercial Cannabis Location Restriction OrdinanceCitywide Proposed Code Amendment

City Planning CommissionSeptember 14, 2017

BACKGROUND• State law:

– 2015: Medical Cannabis Regulation & Safety Act (MCRSA)

– 2016: Adult Use of Marijuana Act (Prop 64 / AUMA)

– 2017: SB 94 – Medical and Adult Use Cannabis Regulation & Safety Act (MAUCRSA)

• City regulations:– 2013: Prop D – limited immunity for existing,

compliant dispensaries– 2017: Prop M – City Council must repeal Prop D

and adopt new regulations by 2018

LADOT

CANNABIS COMMISSION

Department of Cannabis Regulation and Cannabis Commission

Adopted by City Council

BUSINESS REGULATIONS

Application process and requirements

Cannabis Commission authority

Social equity program

Operating standards

LOCATION RESTRICTIONS

Eligible zones

Distancing requirements

RELATIONSHIP TO OTHER LEGISLATION

PROPOSED BUSINESS REGULATIONS• Application requirements & procedures• Appeals• Priority processing• Operations requirements

– General– Retail– Delivery– Manufacturing– Testing– Distribution– Transport

• Inspections• Enforcement• Renewals• Cancellation of license/authorization

HIGHLIGHTS OF BUSINESS REGULATIONSGeneral• Surveillance & security• Ventilation/air filtration• No on-site consumption/no alcohol sales• No special events or parties

Retail• Age 21 or over• Hours of 6 am to 9 pm• No goods visible from outside• No sales through exterior openings

Disposal/Destruction of Product Waste

PUBLIC INPUT & PARTICIPATION

• Discussion draft released June 8, 2017• Staff hearing June 29, 2017

– Approx. 200 attendees– 61 speakers

• 40 written comments

WHAT IS COMMERCIAL CANNABIS ACTIVITY?

• Business activity involving:– Cannabis plant or

cannabis-derived products– Medical & nonmedical

• Does not include personal possession or cultivation

PROPOSED ORDINANCE

LICENSING

• Cannabis businesses can operate in LA if:– Licensed by the State

– Authorized by the Cannabis Commission

– Compliant with the City’s regulations

• Regulations not in Zoning Code

WHICH ACTIVITIES?

• Location restrictions by State license type:– Retail – Cultivation – indoor – Cultivation – mixed-light (accessory use only)– Manufacturing – Level 1– Manufacturing – Level 2– Testing– Distribution– Microbusiness (retail w/ manufacturing,

distribution, limited cultivation)

WHICH ACTIVITIES?

• Transport – not tied to location

• Not eligible:– Cultivation – outdoor

ELIGIBLE ZONES

Retail Microbusiness Indoor Cultivation & Level 1 Manufacturing

C1C1.5C2C4C5CMM1M2 M3

M1M2 M3

MR1M1

MR2M2 M3

ELIGIBLE ZONES

Mixed Light Cultivation

Level 2 Manufacturing Distribution Testing

A1A2

Accessory use only.

MR2M2 M3

MR1M1

MR2M2 M3

CMMR1M1

MR2M2 M3

DISTANCING REQUIREMENTS

• Apply only to retail & microbusiness w/ on-site sales

• 800 feet from: – K-12 schools– Public parks– Public libraries– Alcoholism/drug rehab

or treatment facilities– On-site cannabis sales

DISTANCING REQUIREMENTS

• Do not apply to:– Retail and microbusiness activity w/ no on-site sales

(i.e., delivery-only)– Cultivation– Manufacturing– Distribution– Testing

CANNABIS VS ALCOHOL

• Cannabis & alcohol are both products, not land uses

• Both are tied to underlying land uses– For cannabis: retail, manufacturing, cultivation,

testing, distribution, etc.– For alcohol: retail, restaurant, bar, nightclub, etc.

• The underlying land uses are generally allowed by the Zoning Code (except bar)

CANNABIS VS ALCOHOL

Local permit & State license• Alcohol

– Sale or dispensing of alcohol requires CUP & California ABC license

• Cannabis– All commercial cannabis requires State

license– Proposing certain license types require

authorization by City’s Department of Commission Regulation; others prohibited

CANNABIS VS ALCOHOL

Federal Law

• Alcohol – Prohibition 1920-1933

• Cannabis - Marijuana classified by US DEA as a Schedule I drug – illegal to possess, use, buy, sell, or cultivate marijuana

THANK YOU