Honorable Chair and Members of the Hermosa Beach Planning Commission
Regular Meeting of July 18, 2023
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ZONE TEXT AMENDMENT (TA) 23-03 AND ORDINANCE TO AMEND PORTIONS OF THE HERMOSA BEACH MUNICIPAL CODE TITLE 17 RELATING TO MOBILE CANNABIS DISPENSARIES AND A DETERMINATION THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
(Assistant Planner Johnathon Masi)
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Recommended Action:
Recommendation
Staff recommends Planning Commission adopt Resolution No. 23-09 recommending City Council approve Zone Text Amendment 23-03, thereby amending Hermosa Beach Municipal Code (HBMC) Sections 17.04.050, 17.08.020, 17.18.020, 17.26.030, and 17.42.110 regarding Mobile Cannabis Dispensaries, and determine the amendment is exempt from the California Environmental Quality Act (CEQA).
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Executive Summary:
Staff has identified conflicting regulations regarding Commercial Cannabis Activities and Cannabis Delivery in Title 17 and Chapter 5.80 of the HBMC. Staff prepared a revised ordinance for review and recommendation to the City Council. The proposed Ordinance includes changes to the HBMC substantially in the form attached.
Background:
At its March 8, 2016, meeting, City Council adopted Ordinance 16-1362 amending sections 17.42.110 and 17.26.030 of the Hermosa Beach Municipal Code (HBMC) to expressly prohibit all commercial medical marijuana (a subset of cannabis) uses in the City, cannabis deliveries to any location within the city, and prohibit cultivation for medical use by a qualified patient or primary caregiver. This ordinance codified the long-standing rule that since cannabis uses were not listed as a permitted use in the HBMC, medical marijuana uses were not permitted in the City.
At its December 14, 2021 meeting, City Council directed the City Manager to form an Advisory Group to explore policy issues and provide City Council with input on whether the City’s current ban on cannabis uses should be modified. The group held a total of six public meetings and at its sixth and final meeting on March 29, 2022, the Cannabis Advisory Group participated in a final voting process regarding its support of key policy issues and options of the City Council. A majority of the group indicated that there is currently adequate access to legal cannabis. When asked if Hermosa Beach should lift the ban on cannabis delivery, a majority of the group indicated yes, but did not support that delivery being based within the City. The group’s final report and recommendations were presented to the City Council at its April 12, 2022 meeting.
At its September 13, 2022 meeting, City Council adopted Ordinance No. 22-1449 (Attachment 3) of the City of Hermosa Beach, California, adding Chapter 5.80 of the Hermosa Beach Municipal Code. Chapter 5.80 allows cannabis delivery by operators with physical locations outside City limits and includes guidelines for businesses to obtain a cannabis delivery permit. Chapter 5.80 charges the City Manager with review authority and outlines administrative penalty procedures consistent with Chapter 1.10.
The adoption of Chapter 5.80 to allow cannabis businesses outside the City to deliver within city limits resulted in preexisting land use classifications in Title 17 that provide regulations that conflict with one another.
Analysis:
Title 17 provides definitions for commercial land uses regarding cannabis activities. The definitions provide a framework for regulations outlined in other sections of Title 17. Title 17 uses “Commercial Cannabis Activities” as an umbrella term to generally prohibit any land use that is similarly defined. Chapter 5.80 created “Cannabis Delivery” as a new commercial land use category but did not clarify whether this use is the same or different from the umbrella term used to govern other cannabis uses.
Cannabis Delivery “shall include the use by a dispensary of any technology platform owned and controlled by the dispensary or independently licensed by the state which enables persons, qualified patients, and/or primary caregivers to arrange for or facilitate the commercial transfer of cannabis or cannabis products.” Mobile Cannabis Dispensary is defined as “any dispensary, clinic, cooperative, association, club, business or group which transports or delivers, or arranges the transportation or delivery of, cannabis to a person.”
Both Mobile Cannabis Dispensaries and Cannabis Delivery regulate businesses that deliver or arrange delivery of cannabis, but neither provides clarification on which is more encompassing. Instead, Chapter 5.80 includes a provision that the regulations provided in said chapter prevail over other sections of the municipal code.
Commercial Cannabis Activities include Mobile Cannabis Dispensaries but does not explicitly include Cannabis Delivery uses. Similarly, Mobile Cannabis Dispensaries does not explicitly include Cannabis Delivery. Commercial Cannabis Activity is the broadest term, which includes Mobile Cannabis Dispensaries. Cannabis Delivery is an operational characteristic of businesses classified as Mobile Cannabis Dispensaries.
To fulfil the intent of Chapter 5.80, sections of Title 17 require amendment to specifically allow mobile cannabis dispensaries in areas of the City that could receive deliveries. The attached draft amendments include adding “mobile cannabis dispensaries” to HBMC Section 17.08.020, “R-1, Permitted Uses in the Single-Family Zone”; HBMC Section 17.18.020, “MHP, Permitted Uses in the Mobile Home Park Zone”; HBMC Section 17.26.030, “C-1, C-2 and C-3 Permitted Uses in Commercial Zones”; and HBMC Section 17.28.020, “M-1 Permitted Uses in the Manufacturing Zone.” The proposed amendments would allow cannabis delivery to any location in the City, excluding to Open Space zoned properties.
Proposed amendments are shown below. Bold, italicized, and underlined text represents proposed additions (example). Strikethrough text represents proposed deletions (example).
• HBMC Section 17.04.050
“Commercial Cannabis Activity” is amended as follows:
Commercial cannabis activity means cultivation, manufacture, processing, storing, laboratory testing, labeling, transporting, distribution, packaging, delivery or sale of cannabis or cannabis products for medical and nonmedical use or any other purpose and includes the activities of any business licensed by the state or other government entity under Division 10 of the California Business and Professions Code, or any provision of state law that regulates the licensing of cannabis businesses. This definition also includes mobile cannabis dispensary and a medical marijuana dispensary. This definition excludes mobile cannabis dispensaries.
“Mobile Cannabis Dispensaries” is amended as follows:
Mobile cannabis dispensaries means any dispensary, clinic, cooperative, association, club, business or group which transports or delivers, or arranges the transportation or delivery of, cannabis to a person in the City. This definition includes businesses engaged in Cannabis Delivery.
• HBMC Section 17.08.020 Permitted Uses
R-1 Zone permitted uses is amended to allow “Mobile Cannabis Dispensaries”, consistent with the requirements set forth by HBMC 17.42.110:
P. Mobile Cannabis Dispensaries
• HBMC Section 17.18.020 Permitted Uses
MHP Zone permitted uses is amended to allow “Mobile Cannabis Dispensaries”, consistent with the requirements set forth by HBMC 17.42.110:
C. Mobile Cannabis Dispensaries
• 17.26.030 C-1, C-2 and C-3 Permitted Uses
The land use regulations table is amended to replace “Cannabis Delivery” with “Mobile Cannabis Dispensaries” and to allow “Mobile Cannabis Dispensaries”, consistent with the requirements set forth by HBMC 17.42.110, in all commercial zones:
• 17.28.020 M-1 Permitted Uses
The land use regulations table is amended to allow “Mobile Cannabis Dispensaries”, consistent with the requirements set forth by HBMC 17.42.110:
• HBMC Section 17.42.110(A)
17.42.110 Commercial Cannabis Activities and Cannabis Cultivation Prohibition
The purpose of this section is to expressly prohibit the establishment of certain commercial cannabis uses in the city. The city council finds that certain prohibitions on commercial cannabis activity are necessary for the preservation and protection of the public health, safety and welfare of the city. The prohibition of such uses is within the authority conferred upon the city council by state law and is an exercise of its police powers to enact and enforce regulations for the public health, safety and welfare of the city. Nothing in this chapter shall be interpreted to conflict with state law, including without limitation the Compassionate Use Act, the Control, Regulate, and Tax Adult Use of Marijuana Act (AUMA) and the MAUCRSA, as may be amended. Nothing in this section is intended to prohibit a primary caregiver from providing medical cannabis to a qualified patient as those terms are defined by state law.
Existing regulations currently exclude all commercial cannabis uses in the City, which is inconsistent with section 5.80.010. Staff proposes to add “Mobile Cannabis Dispensaries” as a permitted use to achieve the intent of Chapter 5.80.
• HBMC Section 17.42.110(B)
“Except as provided in this chapter, Commercial cannabis activities of all types are expressly prohibited in all zones in the city. No person shall establish, operate, conduct, or allow a dispensary or commercial cannabis activity anywhere within the city. To the extent that this prohibition conflicts with any other provision of this Code, this prohibition shall control.”
Existing regulations currently exclude all commercial cannabis activities in all City zones. Staff proposes to provide standards for which commercial cannabis uses may be permitted, consistent with section 5.80.010.
• HBMC Section 17.42.110(C)
“A property owner shall not rent, lease or otherwise permit any person or business that engages in commercial cannabis activity to occupy real property in the city. A property owner shall not allow any person or business to establish, operate, maintain, conduct, or engage in commercial cannabis activity on any real property owned or controlled by that property owner that is located in the city.”
This provision is existing and is only proposed to be reordered.
• HBMC Section 17.42.110(D)
“No person or entity may cultivate cannabis at any location in the city, except:
1. A person may cultivate no more than six (6) living cannabis plants inside a private residence in accordance with Health and Safety Code Section 11362.2; and
2. Where the city is preempted by federal or state law from enacting a prohibition on such cultivation.”
This provision is existing and is only proposed to be reordered.
• HBMC Section 17.42.110(E)
Mobile Cannabis Dispensaries
1. Businesses with physical locations solely outside city limits are permitted to engage in cannabis delivery within city limits provided the business is in compliance with Chapter 5.80 and all other applicable State and local law.
Subsection E provides guidelines consistent with Chapter 5.80 in which cannabis delivery is allowed. Staff recommends the Planning Commission adopt the above subsection, to provide clear outlines for applicability, and to bridge regulations between Title 17 and Chapter 5.80.
• HBMC Section 17.42.110(F)
Violations and Remedies.
1. Criminal Penalties. Any violation of any provision of this chapter shall be deemed a misdemeanor and shall be punishable in accordance with Chapter 1.04.
2. Any use or condition caused, or permitted to exist, in violation of any provision of this section shall be, and hereby is declared to be, a public nuisance and may be abated by the city pursuant to Code of Civil Procedure Section 731 and Chapter 8.28 and any other remedy available by law to the city. (Ord. 17-1380 §2, 2017: Ord. 16-1362 §1, 2016: Ord. 08-1292 §2, 2008)
This provision is existing and is only proposed to be reordered.
General Plan Consistency:
The proposed development is consistent with the following Goals and Policies of PLAN Hermosa:
Governance Element
Goal 1. A high degree of transparency and integrity in the decision-making process.
Policy:
• 1.1 Open Meetings. Maintain the community’s trust by holding meetings in which decisions are being made, that are open and available for all community members to attend, participate, or view remotely.
Goal 2. The Community is active and engaged in decision-making processes.
Policy:
• 2.3 Public participation guidelines. Establish parameters and guidelines to ensure public participation is promoted through diverse methods
Environmental Determination:
The Zone Text Amendment is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3). The activity is covered by the commonsense exemption that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
The Zone Text Amendment only modifies use classifications already present in the Municipal Code. The amendment would not approve any development project or create any new land use provisions that would allow new development, and therefore would not cause a significant effect on the environment.
Public Notification:
For the July 18, 2023 Planning Commission public hearing, a legal ad was published on July 6, 2023 in the Easy Reader, a newspaper of general circulation. Public notification materials are included as Attachment 4. As of the writing of the report, staff has received no public comments.
Attachments:
1. Draft Resolution and Draft Ordinance No. 23-09
2. Redlined Draft Ordinance
3. Ordinance No. 22-1449
4. SUPPLEMENTAL - Public Notification Package
5. Link to March 8, 2016 City Council Staff Report
6. Link to November 28, 2017 City Council Staff Report
7. Link to November 23, 2021 city Council Agenda
8. Link to December 14, 2021 City Council Staff Report
9. Link to March 22, 2022 city Council Staff Report
10. Link to April 12, 2022 City Council Staff Report
11. Link to May 24, 2022 City Council Staff Report
12. Link to July 26, 2022 City Council Staff Report
13. Link to August 9, 2022 City Council Staff Report
14. Link to September 13, 2022 City Council Staff Report
Respectfully Submitted by: Johnathon Masi, Assistant Planner and Jay Fall, Management Analyst
Concur: Angela Crespi, Deputy City Manager
Legal Review: Patrick Donegan, City Attorney
Approved: Carrie Tai, AICP, Community Development Director