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Staff Report - ord.marijuana.secondreading Final PREPARED BY: ROBERT SCHULTZ Town Attorney Reviewed by: Town Manager, Assistant Town Manager, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832 www.losgatosca.gov TOWN OF LOS GATOS COUNCIL AGENDA REPORT MEETING DATE: 11/07/2017 ITEM NO: 5 DATE: OCTOBER 30, 2017 TO: MAYOR AND TOWN COUNCIL FROM: ROBERT SCHULTZ, TOWN ATTORNEY SUBJECT: ADOPT AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING LOS GATOS MUNICIPAL CODE CHAPTER 14, ARTICLE XII, SECTION 14.120.010 – 14.120.030 PROHIBITING THE ESTABLISHMENT OF ANY FORM OF MARIJUANA COMMERCE, TRADE OR INDUSTRY, AND PROHIBITING COMMERCIAL CULTIVATION, PROCESSING, AND DELIVERY OF MARIJUANA RECOMMENDATION: Adopt ordinance that was introduced at the Town Council meeting of October 17, 2017, amending Section 14.120.010 – 14.120.030 of the Town Code to prohibit the establishment of any form of marijuana commerce, trade or industry, and prohib iting commercial cultivation, processing, and delivery of marijuana. BACKGROUND: On October 17, 2017, the Council considered and voted to introduce an Ordinance (Attachment 1) amending Section 14.120.010 – 14.120.030 of the Town Code to prohibit the establishment of any form of marijuana commerce, trade or industry, and prohibiting commercial cultivation, processing, and delivery of marijuana. DISCUSSION: The Town Council has consistently taken the position that medical marijuana operations are detrimental to the public health, safety, and welfare and has adopted regulations prohibiting such operations in the Town. In 2016, the Town expanded the prohibition on medical marijuana dispensaries to include the cultivation, processing, and delivery of medical marijuana. PAGE 2 OF 2 SUBJECT: TOWN CODE AMENDMENT: PROHIBIT ANY FORM OF MARIJUANA COMMERCE OCTOBER 30, 2017 S:\COUNCIL REPORTS\2017\11-07-17\Marijuana Ordinance\Staff Report - ord.marijuana.secondreading Final.docx DISSCUSSION (cont’d): Last November, California voters approved Proposition 64, which is known as The Control, Regulate, and Tax Adult Use Marijuana Act (the “AUMA”). With the passage of the AUMA, personal and commercial (non-medical) use of marijuana is now decriminalized under California law, subject to certain restrictions. The AUMA permits a Town to adopt and enforce local ordinances to regulate non -medical marijuana businesses, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke. The AUMA also authorizes local governments to completely prohibit the establishment or operation of non-medical marijuana businesses within its jurisdiction. Given the adverse impacts associated with marijuana dispensaries and cultivation sites and the Town’s previous efforts to maintain local control through prohibition, the Town Attorney’s Office prepared the attached ordinance (“Ordinance”). The proposed Ordinance (Attachment 1) would prohibit all commercial marijuana activities in the Town, which includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, labeling, transportation, distribution, delivery, trade or sale of marijuana and marijuana products by any person, entity, commercial or business enterprise, whether for-profit or nonprofit. Additionally, the Ordinance would prohibit the outdoor cultivation of marijuana, which would include any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana that is not within a fully enclosed and secure structure. Consistent with the requirements of the AUMA, the Ordinance would not prohibit the cultivation of up to six marijuana plants inside a person’s private residence or inside a fully enclosed accessory structure to a person’s private residence. The Ordinance would not alter the protections afforded by the previous ordinances adopted by the Town Council co ncerning medical marijuana dispensaries, mobile medical marijuana dispensaries, and the cultivation and processing of medical marijuana. Should the Council adopt the ordinance, the new provisions would take effect in thirty days. Staff will coordinate with businesses regarding the change in the law. Attachments: 1. Ordinance amending Section 14.120.010 – 14.120.030 of the Town Code to prohibit the establishment of any form of marijuana commerce.