Agenda #: 7.1
Meeting Date: February 6, 2024
TO: Honorable Mayor and Members of the City Council
FROM: Daniel Fox, City Manager
TITLE: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR AMENDING CHAPTER 8.26 OF THE DIAMOND BAR CITY CODE
IN ITS ENTIRETY TO PROHIBIT AND REGULATE
MARIJUANA/CANNABIS BUSINESSES AND CULTIVATION IN
COMPLIANCE WITH STATE LAW AS LAST AMENDED BY SB 1186.
STRATEGIC
GOAL: Open, Engaged & Responsive Government
RECOMMENDATION:
A. Find that the adoption of the ordinance is exempt from CEQA; and B. Approve for first reading by title only, waive full reading of Ordinance No. 01 (2024); and schedule the second reading and adoption at the next regularly scheduled City Council meeting on February 20, 2024.
FINANCIAL IMPACT:
None.
BACKGROUND:
Diamond Bar City Code Chapter 8.26 prohibits marijuana dispensaries (both medical and recreational) Citywide. Specifically, Section 8.26.050 states that a “marijuana dispensary shall be a prohibited use in any zoning district of the city, even if located within an otherwise permitted use, and neither the city council nor city staff shall approve any use, interpretation, permit, license, certificate of occupancy, zoning code or general plan amendment allowing the operation and/or establishment of a marijuana dispensary.”
On September 18, 2022, the Governor signed into law SB 1186 (Wiener), known as the Medicinal Cannabis Patients’ Right of Access Act (Attachment 3), which went into effect on January 1, 2024. The Act prohibits local jurisdictions from adopting or enforcing any
regulation that directly or indirectly prohibits the retail sale of medicinal cannabis by delivery to patients or caregivers within the City, but allows local jurisdictions to adopt and enforce reasonable regulations, including where delivery businesses may be located. The proposed ordinance (Attachment 1) prohibits the establishment of marijuana delivery businesses Citywide based on the finding that there are already such businesses outside of the City that can readily serve clientele that reside in Diamond Bar.
ANALYSIS:
With the enactment of SB 1186, any non-storefront commercial retailer (of medicinal cannabis from which delivery can be conducted) may apply for a business license in any zoning district at a physical location within the City, unless the City can make a finding that there are sufficient businesses in surrounding areas from which patients or their primary caregivers can order their medicine. Upon researching surrounding areas, it was found that there are presently more than 12 licensed medicinal marijuana retailers located within a 17-mile radius of the City from which retail sale of medicinal marijuana by delivery is available. Therefore, prohibiting physical premises of these establishments within the City would not affect timely access for patients who reside here.
The City Council is being presented with an ordinance that would expand the current prohibition of marijuana businesses, including physical locations of non-storefront commercial retailers from which delivery of medicinal cannabis can be conducted. As required by state law, the ordinance will allow the retail sale by delivery of medicinal marijuana to qualified patients or primary caregivers by medicinal marijuana businesses from fixed locations outside the City subject to compliance with state law regulations.
It is recommended that the Council approve the ordinance for first reading. Because permanent ordinances do not become effective until 30 days after a second reading, a parallel, 45-day urgency ordinance has been placed on this agenda which would go into effect immediately to ensure the protection of public health, safety and welfare during the required waiting period for the regular ordinance.
ENVIRONMENTAL REVIEW:
The City has determined that the proposed code amendment is not subject to the California Environmental Quality Act (“CEQA”) in that it will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, in that there are no marijuana dispensaries currently existing or permitted under the City's current municipal code and it maintains the existing environment in the City. This Ordinance is not a project under CEQA pursuant to Public Resources Code Section 21065 which provides that CEQA only applies to an activity which has the potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
Further, the Ordinance is exempt from CEQA under the following provisions of Title 14 of the California Code of Regulations: Sections 15060(c)(2), 15060(c)(3) and 15061(b)(3), as the Ordinance is covered by the general rule that CEQA only applies to projects which have the potential for causing a significant effect on the environment and it can be seen with certainty that there is no possibility that the Ordinance will have a significant effect on the environment and Section 15304, as the Ordinance is a minor alteration in land use limitations.
LEGAL REVIEW:
The City Attorney has reviewed and approved the Ordinance as to form.
PREPARED BY:
REVIEWED BY:
Attachments:
1. 7.1.a Ordinance No. 01 (2024)
2. 7.1.b DBCC Section 8.26 – Marijuana Businesses (current regulations)
3. 7.1.c Senate Bill 1186