Ordinance 2017-07ORDINANCE NO. 2017- 07
AN 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" TO 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
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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.
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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
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(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;
(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:
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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 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 113 62.1, 113 62.2, 113 62.3, 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
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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.
SECTION VII
Pursuant to section 608 of the Charter of the City of Gilroy, this Ordinance shall be in full
force and effect thirty (30) days from and after the date it is adopted.
PASSED AND ADOPTED this 4t' day of December, 2017 by the following roll call vote:
AYES: COUNCILMEMBERS:
TOVAR, TUCKER and
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
BRACCO, HARNEY, LEROE- MUNOZ,
VELASCO
NONE
KLOECKER
APPROVED:
Velasco, Mayor
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I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the
attached Ordinance No. 2017 -07 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 4th day of December, 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 6th day of December, 2017.
(ha Freels, MMC
Clerk of the City of Gilroy
(Seal)