Ordinance 2017-061
ORDINANCE NO. 2017-06
AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF
THE CITY OF GILROY AMENDING CHAPTER 30, SECTION
30.2.20, ENTITLED "DEFINITIONS ", CHAPTER 30, SECTION
30.45.30, ENTITLED "LEGISLATIVE FINDINGS AND
STATEMENT OF PURPOSE— PROHIBITION OF
MARIJUANA CULTIVATION, PROCESSING, DELIVERY
AND DISPENSARY USES" AND CHAPTER 30, SECTION
30.45.40, ENTITLED "PROHIBITED ACTIVITIES" AND
ADDING CHAPTER 30, SECTION 30.45.45, ENTITLED
"INDOOR CULTIVATION FOR PERSONAL USE" OF THE
GILROY CITY CODE
WHEREAS, the Control, Regulate and Tax Adult Use of Marijuana Act ( "the
AUMA ") was approved by California voters on November 8, 2016; and
WHEREAS, the AUMA legalizes under state law certain possession, use, and
cultivation of non - medical marijuana for those who are 21 years of age or older and
authorizes a comprehensive state system to regulate commercial marijuana activity; and
WHEREAS, under the AUMA, cities may adopt and enforce local ordinances,
including zoning and land use requirements, to regulate marijuana businesses or to
completely prohibit the establishment or operation of such businesses within the City's
jurisdiction, and the state will not approve a state license for a business that violates local
ordinances; and
WHEREAS, effective January 1, 2016, 3 bills (AB 266, AB 243, and SB 643),
collectively known as the Medical Cannabis Regulation and Safety Act ( "MCRSA "),
govern cultivation, processing, transporting, testing, and distribution of medical marijuana
to qualified patients; and
WHEREAS, under the Federal Controlled Substances Act, 21 U.S.C. § 801 et seq.,
the use, possession, and cultivation of marijuana for both medical and recreational uses are
currently unlawful and subject to federal prosecution; and
WHEREAS, while marijuana cultivation and all commercial medical marijuana
uses are prohibited under the City's current zoning regulations, the Gilroy City Code does
not currently expressly regulate the sale, cultivation and delivery of non - medical marijuana
within its jurisdiction; and
MBRA 400-1292-11700
ORDINANCE NO. 2017 -06
MBRANSO SON104706083
2
WHEREAS, current City regulations prohibit cultivation for personal use of
marijuana in the City of Gilroy; and
WHEREAS, marijuana laws do not confer a land use right and the MCRSA
requires the city to prohibit cultivation uses, either expressly or otherwise under the
principles of permissive zoning, or the State will become the licensing authority. The
MCRSA also requires delivery services to be expressly prohibited by local ordinance, if the
City desires to prohibit delivery. Similarly, the AUMA gives cities explicit authority to
adopt and enforce local ordinances, including zoning and land use requirements, to regulate
marijuana businesses or to completely prohibit the establishment or operation of such
businesses within the city's jurisdiction. No State license will be approved for a business
that violates local ordinances; and
WHEREAS, the City Council desires to update the marijuana regulations in the
Gilroy City Code to maintain the City's existing prohibition on commercial marijuana
activities, and expressly make clear, in light of passage of the AUMA, that all such uses
(whether medical or recreational) continue to be prohibited in all zones throughout the
City, and to preserve local control over such uses,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GILROY
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION I
Gilroy City Code, Chapter 30, ZONING ORDINANCE, Section 30.2.20,
"Definitions" is hereby amended to add the following definitions:
"Commercial marijuana activity" has the same meaning as "commercial cannabis activity"
as provided in California Business & Professions Code § 26001(k) as may be amended, and
means and includes cultivation, possession, manufacture, distribution, processing, storing,
laboratory testing, packaging, labeling, transportation, delivery or sale of marijuana or
marijuana products. "Commercial marijuana activity" also includes the activities of any
business or nonprofit licensees by the state or other government entity under chapter 3.5 of
Division 8 or Division 10 of the Business and Professions Code.
"Marijuana delivery" has the same meaning as "Delivery" as provided in California
Business & Professions Code § 26001(p) as may be amended, and includes the commercial
transfer of marijuana or marijuana products to a customer. Marijuana delivery also includes
the use by a retailer of any technology platform, whether owned or controlled by the
retailer or independently licensed, that enables customers to arrange for or facilitate the
commercial transfer by a licensed retailer of marijuana or marijuana products.
MBRMSO1170v1 ORDINANCE NO.2017 -06
MBRANSOM04706083
3
SECTION II
Gilroy City Code, Chapter 30, ZONING ORDINANCE, Section 30.2.20,
"Definitions" is hereby amended to modify the definition of "marijuana dispensary" or
"marijuana dispensaries" to read as follows:
"Marijuana dispensary" or "marijuana dispensaries" means any business, office, store,
facility, location, retail or wholesale component of any establishment, cooperative or
collective that delivers (as delivery is defined in Business and Professions Code Section
26001(p) or any successor statute thereto) whether mobile or otherwise, dispenses,
distributes, exchanges, transmits, transports, sells or provides marijuana to any person for
any reason, including members of any medical marijuana cooperative or collective
consistent with the August 2008 Guidelines for the Security and Non - Diversion of
Marijuana Grown for Medical Use, as may be amended from time to time, that was issued
by the office of the Attorney General for the State of California or subject to the provisions
of the California Health and Safety Code Section 11362.5 (Compassionate Use Act of
1996) or California Health and Safety Code Sections 11362.7 to 11362.83 (Medical
Marijuana Program Act), or otherwise engages in any commercial marijuana activity.
SECTION III
Gilroy City Code, Chapter 30, ZONING ORDINANCE, Section 30.45.30,
"Legislative findings and statement of purpose— Prohibition of marijuana cultivation,
processing, delivery and dispensary uses." is hereby amended to read as follows:
30.45.30 Legislative findings and statement of purpose — Prohibition of
marijuana cultivation, processing, delivery and dispensary uses.
(a) The city council finds that the prohibitions on marijuana cultivation (except as
otherwise permitted herein), marijuana processing, marijuana delivery and marijuana
dispensaries are necessary for the preservation and protection of the public health, safety,
and welfare for the city and its community. The city council's prohibition of such activities
is within the authority conferred upon the city council in its charter and state law.
(b) Effective January 1, 2016, three bills (AB 266, AB 243, and SB 643), collectively
known as the Medical Cannabis Regulation and Safety Act ( "MCRSA "), govern
cultivation, processing, transporting, testing, and distribution of medical marijuana to
qualified patients, and contain statutory provisions that
(1) Allow local governments to enact ordinances expressing their intent to
prohibit the cultivation of marijuana and their intent not to administer a conditional permit
program for the cultivation of marijuana;
MBRMSONN �i ORDINANCE NO. 2017 -06
MBRANSON104706083
4
(2) Expressly provide that the MCRSA does not supersede or limit local
authority for local law enforcement activity, enforcement of local ordinance, or
enforcement of local permit or licensing requirements regarding marijuana;
(3) Expressly provide that the MCRSA does not limit the authority or remedies
of a local government under any provision of law regarding marijuana, including but not
limited to a local government's right to make and enforce within its limits all police
regulations not in conflict with general laws;
(4) Require a local government that wishes to prevent marijuana delivery
activity from operating within the local government's boundaries to enact an ordinance
affirmatively banning such delivery activity.
(c) On November 8, 2016, the California voters passed Proposition 64 (referred to as
"The Adult Use of Marijuana Act" ( "AUMA ")). Effective November 9, 2016, the AUMA
legalized use and possession of nonmedical marijuana by adults, and directs the creation of
a state regulatory system for the sale, cultivation and processing of marijuana and
marijuana products. Under the AUMA, cities may adopt and enforce local ordinances,
including zoning and land use requirements, to regulate marijuana businesses or to
completely prohibit the establishment or operation of such businesses within the City's
jurisdiction. The state will not approve a state license for a business that violates local
ordinances.
(d) The city council finds that this chapter: (1) expresses its intent to prohibit the
cultivation (except as otherwise permitted herein), delivery, and distribution of marijuana
in the city and to not administer a permit program for the cultivation of marijuana in the
city; (2) exercises its local authority to enact and enforce local regulations and ordinances,
including those regarding the permitting, licensing, or other entitlement of the activities
prohibited by this chapter ; (3) exercises its police power to enact and enforce regulations
for the public benefit, safety, and welfare of the city and its community; and (4) expressly
prohibits the delivery of marijuana in the city.
SECTION IV
Gilroy City Code, Chapter 30, ZONING ORDINANCE, Section 30.45.40,
"Prohibited Activities." is hereby amended to read as follows:
30.45.40 Prohibited activities.
(a) Except as otherwise permitted herein, marijuana cultivation, marijuana processing,
marijuana delivery, and marijuana dispensaries are prohibited activities in the city, except
40"12 NID470 ORDINANCE NO.2017 -06
MBRANSON104706083
where the city is preempted by federal or state law from enacting a prohibition on any such
activity. No use permit, variance, building permit, or any other entitlement, license, or
permit, whether administrative or discretionary, shall be approved or issued for the
activities of marijuana cultivation, marijuana processing, marijuana delivery, or the
establishment or operation of a marijuana dispensary in the city, and no person shall
otherwise establish or conduct such activities in the city, except where the city is preempted
by federal or state law from enacting a prohibition on any such activity for which the use
permit, variance, building permit, or any other entitlement, license, or permit is sought.
(b) Commercial marijuana activities of all types are expressly prohibited in all zones
and all specific plan areas in the City of Gilroy. No person shall establish, operate, conduct
or allow a commercial marijuana activity anywhere within the City. This subsection is
meant to prohibit all activities for which a state license is required pursuant to the AUMA
or the MCRSA, and the City will not issue any permit, license, or other entitlement for any
activity for which a state license is required under the AUMA or the MCRSA.
SECTION V
Gilroy City Code, Chapter 30, ZONING ORDINANCE, Section 30.45.45, "Indoor
Cultivation for Personal Use." is hereby added as follows:
30.45.45 Indoor Cultivation for Personal Use.
Indoor cultivation of six (6) or fewer live marijuana plants is permitted within a single
private residence or inside an accessory structure located on the grounds of a private
residence, only to the extent that it is in compliance with the limits and requirements
established under California Health and Safety Code Sections 11362.1, 11362.2, 11362.3,
11362.4 and 11362.45 and any other applicable state laws. Cultivation outdoors upon the
grounds of a private residence is prohibited in accordance with California Health and
Safety Code Section 11362.2(b)(3).
SECTION VI
If any section, subsection, subdivision, sentence, clause or phrase of this Ordinance
is for any reason held to be unconstitutional or otherwise void or invalid by any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each section, subsection, subdivision, sentence, clause or phrase thereof,
irrespective of the fact that any one or more sections, subsections, subdivisions, sentences,
clauses or phrases be declared unconstitutional or otherwise void or invalid.
MBRA S »7o�� ORDINANCE NO. 2017 -06
MBRANSON104706083
6
SECTION VII
This ordinance, pursuant to Gilroy City Charter, Article VI, Section 602, is hereby
declared by the City Council to be necessary as an emergency measure and shall take effect
immediately and be in full force and effect after its adoption and approval because the City
Council has found that the Federal Controlled Substances Act makes unlawful and subject
to federal prosecution the use, possession, and cultivation of marijuana; that several
California cities and counties have experienced offensive and serious adverse impacts
associated with commercial marijuana activities; that commercial marijuana activities
increase risks of criminal activity, degrade the natural environment, and pose fire hazards;
that the AUMA and the MCRSA do not create limitations on local land use authority to
regulate commercial marijuana activities; that an ordinance prohibiting all commercial
marijuana activities is necessary and appropriate to maintain and protect the public health,
safety and welfare of the citizens of Gilroy; and that in order to ensure the City of Gilroy
maintain local decision making authority to prohibit and not license any commercial
marijuana activities in the City that such an ordinance prohibiting all commercial marijuana
activities be effective prior to January 1, 2018.
PASSED AND ADOPTED this 20th day of November, 2017 by the following roll
call vote:
AYES: COUNCILMEMBERS: BRACCO, HARNEY, KLOECKER,
LEROE- MUNOZ, TOVAR, TUCKER and VELASCO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
Velasco, Mayor
MBRM n-1170i1 ORDINANCE NO.2017 -06
MBRANSON104706083
I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Emergency Ordinance No. 2017 -06 is an original ordinance, or true and correct copy of
a City ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said
Council held on the 20m day of November, 2017, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of
the City of Gilroy this 20'' day of November, 2017.
Shawna Freels, MMC
City Clerk of the City of Gilroy
(Seal)