PC Report - 01-19-23 — Riverside City Council, February 28, 2023

Planning Commission
Memorandum

Community & Economic Development Department Planning Division 3900 Main Street, Riverside, CA 92522 | Phone: (951) 826-5371 | RiversideCA.gov

CITY PLANNING COMMISSION January 19, 2023
PAGE 1 PR-2022-001453
PLANNING COMMISSION HEARING DATE: JANUARY 19, 2023
AGENDA ITEM NO.: 4

SUMMARY

Case Numbers PR-2022-001453 (Zoning Text Amendment)
Request
Proposal by the City of Riverside to consider amendments to Title 19 (Zoning) of the Riverside Municipal Code, including but not limited to Articles V (Base Zones and Related Use and Development Provisions), VI (Overlay Zones), VII (Specific Land Use Provisions), and X (Definitions) related to commercial cannabis uses. The proposed amendments are related to proposed amendments to Titles 5 (Business Taxes, Licenses and Regulations) and 9 (Peace, Safety and Morals) to establish a Cannabis Business Permit Program in the City at the direction of the City Council Economic Development, Placemaking and
Branding/Marketing Committee. Proposed amendments to Title 19 include but are not limited to:

1. Eliminate the Citywide prohibition of commercial cannabis uses;

2. Establish Cannabis Storefront Retail, Cannabis
Warehousing/Distribution and Cannabis Testing Laboratories as permitted/conditionally permitted uses in specified Zones;

3. Establish Cannabis Cultivation and Cannabis Microbusinesses as prohibited uses in all Zones;

4. Amend various Chapters of the Zoning Code for consistency with proposed amendments to Ti tles 5 and 9 of the Municipal Code; and

5. Establish Definitions related to the proposed changes to cannabis uses.

Applicant City of Riverside, Community and Economic Development Department Project Location Citywide
Ward Citywide
Staff Planner
Judy Egüez, Senior Planner
951-826-3969
[email protected]

CITY PLANNING COMMISSION January 19, 2023
PAGE 2 PR-2022-001453

RECOMMENDATIONS
That the Planning Commission:

1. Recommend that the City Council determine that Planning Case PR-2022-001453 is exempt from further California Envi ronmental Quality Act (CEQA) review pursuant to Section 15061(b)(3) (General Ru le), as it can be seen with certainty that approval of the project will not have an effect on the environment;

2. Recommend Approval of the Planning Case PR-2022-001453 (Zoning Text Amendment) as outlined in the staff report and summarized in the Findings section of this report.

BACKGROUND
In 2016, California voters passed Proposition 64 (The Adult Use of Marijuana Act) which allowed for adults 21 or older to legally grow, possess and use cannabis for recreational purposes and legalized the sale and distribution of cannabis statewide. Shortly thereafter, Governor Brown signed Senate Bill 94 (The Medicinal Adult-Use Cannabis Regulation and Safety Act or MAUCRSA) into law. While the MAUCRSA created minimum requirements for licensees statewide, Proposition 64 and Senate Bill 94 gave local governments the flexibility to implement local regulatory fram eworks for land-use entitlements, building permits and business/operating licenses for cannabis related uses.

Following the passage of Proposition 64, the City Council acted to implement a moratorium on commercial cannabis activities in the City and subsequently adopted Ordinances permitting and regulating Cannabis Testing Laboratories and prohibiting:
1) the retail and commercial sale of cannabis;
2) commercial agricultural cultivation of marijuana;
3) the manufacturing and sale of marijuana extractable and consumable products; 4) distribution of all marijuana and cannabis associated products; 5) the establishment of microbusinesses such as boutique lounges; and 6) outdoor cultivation of all marijuana plants, including medical marijuana.

O n S e p t e mb e r 2 8 , 20 21 , t he C i t y o f R iv e r s id e r e c e ived a N o t ic e o f I nt e nt t o C ir c u la t e Petition for the Riverside Cannabis Taxation and Regulation Act, then amended on November 5, 2021 (Exhibit 1). The City Attorney prepared and provided a Ballot Title and Summary to the proponents on November 18, 2021.

If the proponents continue through the initia tive process and gather enough signatures required within 180 days (May 17, 2022), then City Council could choose one of two options: Call an election to place the ballot measure on the ballot during an election (special or regular); or Adopt the proposed Ordinance without revision.

If passed by voters or accepted by the City Council, it would create a regulatory framework for all cannabis uses within the City , largely without City Council, staff, or community input. Unlike ordinances passed by City Council, regulations established through a voter-initiated ballot cannot be amended or modified by sole action of the City Council. Any future amendments must go through a ballot process during a general election for approval.

CITY PLANNING COMMISSION January 19, 2023
PAGE 3 PR-2022-001453

On November 18, 2021, the Econom ic Development, Placemaking and Branding/Marketing (EDPBM) Committee discussed the need to develop an ordinance with the legal and regulatory framework fo r the permitting, licensing, enforcement, taxation, and legal operations of commercial cannabis storefronts within the City limits and directed staff to return to the Committee with Ordinance options.

On March 24, 2022, the EDPBM Committee directed staff to prepare amendments for the Riverside Municipal Code (RMC): 1) Title 5 – Business Taxes, Licenses and Regulations amendments related to licensing of cannabis business uses; 2) Title 9 – Peace, Safety and Morals amendments to clean up and provid e consistency in cannabis regulations and terminology; and 3) Title 19 - Zoning amendm ents related to land use regulations for cannabis related uses. Staff was also directed to conduct a financial analysis on potential revenue and move forward with a cannabis tax ballot measure in 2024 with the type of tax, language, and percentage to be determined at a later date.

On October 20, 2022, Staff presented an up date to the EDPBM Committee on the draft Municipal Code Amendments and requested a dditional direction to finalize the draft amendments in order to move the program forward for consideration by the Planning Commission and City Council (Exhibit 2).

On December 8, 2022, Staff conducted a Wo rkshop before the Planning Commission to introduce the components of the Cannabis Business Permit Program, with a focus on how it relates to Title 19 (Zoning). Staff also rece ived input for City Co uncil’s consideration.

Discussions on the topi c included proximity to sensitive receptors, uses considered as sensitive receptors, concentration of cannabis retail businesses, whether the permit process would be cost-prohibitive for small businesses, and impacts on crime. Maps have been prepared illustrating the recommendations of Staff, the EDPBM Committee and suggestions from the Planning Commission Workshop and are attached for informational purposes only as Exhibit 3.

PROPOSAL
The proposed amendments to Title 19 (Zonin g) of the Riverside Municipal Code are included as Exhibit 4 and comprise of the following:

1. Eliminates the prohibition of commercial cannabis uses in the City;

2. Establishes Cannabis Storefront Retail, Cannabis Warehousing/Distribution and Cannabis Testing Laboratories as permitted/conditionally permitted uses in specified Zones;

3. Establishes Cannabis Cultivation and Cannabis Microbusinesses as prohibited uses in all Zones;

4. Amends various Chapters of the Zoning Code for consistency with proposed amendments to Titles 5 and 9 of the Municipal Code; and

5. Establishes Definitions related to the pr oposed changes to commercial cannabis uses.

Eliminates prohibition of commercial cannabis uses
Title 19 contains several sections that prohibit commercial cannabis uses (19.146.025,

19.150.020, 19.220, 19.342.020). The prop osed amendment eliminates language indicating that commercial cannabis uses are prohibited.

CITY PLANNING COMMISSION January 19, 2023
PAGE 4 PR-2022-001453

Establishes permitted or conditionally permitted uses related to commercial cannabis The proposed amendment revises the Permitte d Uses Table (19.150.020.A) to include commercial cannabis uses and the respective zone in which they are permitted.

Cannabis storefront retail, cannabis testing laboratories, and cannabis warehouse & distribution will all be referred to existing us es as they operate in the same manner. No new uses are introduced.

Prohibited cannabis uses
The proposed amendment revises the Permitted Uses Table (19.150.020) to add Cannabis Microbusiness as a prohibited use. Cannabis Cultivation remains a prohibited use in the Permitted Uses Table (19.150.020.A) and in the Incidental Uses Table (19.150.020.B).

Amendments for consistency
The proposed amendment makes revisions to Title 19 for consistency in language.

Throughout Title 19, the term “marijuana” is changed to “cannabis”.

Definitions
Definitions for cannabis uses are included in Chapter 19.910 with references to Title 5. All previous definitions for “Marijuana” and marijuana uses are proposed to be deleted with a reference to see the definitions under “Cannabis”.

PUBLIC OUTREACH AND COMMENT
Public input has been conducted as part of the discussions before the EDPBM Committee. Meetings were held in November 2021, March 2022, and October 2022. A workshop was also held before the Pla nning Commission on December 8, 2022.

Additionally, EDPBM Committee members have conducted presentations, upon request, from several community groups. A Notice of Hearing for the proposed Title 19 Amendment was published in the Riverside Press-Enterprise pursuant to the requirements of Section 19.670.040 of the Zoning Code. As of the writing of this report, one comment has been received (Exhibit 5).

A public outreach program will be developed for the prospective 2024 sales tax measure moving forward.

ENVIRONMENTAL REVIEW
The proposed amendments are exempt from additional California Environmental Quality Act (CEQA) review pursuant to Section 15061(b)(3) of the CEQA guidelines, as it can be seen with certainty that the proposed amendments will have no effect on the environment.

FINDINGS
Zoning Code Amendment Findings pursuant to Chapter 19.810.040:
1) The proposed Zoning Code Amendments are generally consistent with the goals, policies, and objectives of the General Plan;
2) The proposed Zoning Code Text Amendments will not adversely affect surrounding properties; and

CITY PLANNING COMMISSION January 19, 2023
PAGE 5 PR-2022-001453

3) The proposed Zoning Code Text Amendments will promote public health, safety, and general welfare and serves the goals and purposes of the Zoning Code.

ENVISION RIVERSIDE 2025 STRATEGIC PLAN ALIGNMENT
This item contributes to the Envision Riverside 2025 City Council Strategic Plan, specifically Priority 3 (Economic Opportunity), Goal 3.3, to cultivate a business climate that welcomes innovation, entrepreneurship, and investment; and Priority 5 (High-Performing Government), Goal 5.4, to achieve and main tain financial health by addressing gaps between revenues and expenditures.

In addition, the project aligns with the five Cross-Cutting Threads as follows:

1. Community Trust – The City continues to be transparent in studying the potential Commercial Cannabis Program. A community outreach program will be developed as part of the process and ul timately, residents will decide on the ballot measure an any potential business tax.

2. Equity – The Commercial Cannabis Program w ill provide opportunities for those impacted in the past because cannabis was illegal. The review process, open to all, would include criteria to choose those businesses that would best fit and operate in the City of Riverside.

3. Fiscal Responsibility – With the collection of a business tax, voted on by the residents of the City, the City would re alize additional revenue that is lost because these businesses are not permitted in Riverside.

4. Innovation – The Commercial Cannabis Program would be prepared using an expert consultant that fully understands the State laws ensuring that the best and a creative approach will be used to regulate cannabis businesses.

5. Sustainability & Resiliency – The proposed Commercial Cannabis Program will help the City to realize additional business tax that will ensure its sustainability and resiliency.

APPEAL INFORMATION
Actions by the City Planning Commission, in cluding any environmental finding, may be appealed to the City Council within ten cale ndar days after the decision. Appeal filing and processing information may be obtained from the Planning Department Public Information Section, 3rd Floor, City Hall.

EXHIBITS LIST

1. Notice of Intent to Circulate Petition

2. Economic Development, Placemaking, Marketing/Branding Committee Report – October 20, 2022

3. Sensitive Receptor Maps

4. Proposed Title 19 Amendments

5. Comment Letter

6. Presentation

Prepared by: Judy Egüez, Senior Planner
Approved by: Matthew Taylor, Principal Planner
Distributed at Planning Commission
January 19, 2023
Agenda Item: 04
From: Steven Wu <[email protected]>
Sent: Tuesday, January 17, 2023 6:59 PM
To: Eguez, Judy <[email protected]>; Andrade, Frances <[email protected]> Subject: [External] Public Comment Planning Case PR‐2022‐001453 CAUTION: This email is originated from OUTSIDE of City of Riverside and was not sent by any City Officials or City Staff. Do not click on links or open attachments unless you are expecting the email and know that the content is safe. If you suspect this is a phishing or malicious email, please contact the helpdesk.

Hello,

My name is Steven and I am a resident of Riverside who has loved living here in this City. Though many of my family members and friends in LA and Orange County have a negative perception of Riverside (for its crime, homelessness, etc), I have found a great community and forged wonderful memories here. This is why I am gravely disappointed that the Planning Commission is considering an amendment of Title 19 in code for allowance of commercial cannabis uses (PLANNING CASE PR-2022-001453).

For a City allegedly geared towards arts and innovation and a City which has made positive strides in the last years to bring higher-paying jobs and higher-quality commercial establishments to the City, I believe this considered amendment allowing commercial cannabis uses and cannabis cultivation would greatly hurt the City's strides towards public safety and a better reputation. As someone who has had many family members and friends leave cities such as Moreno Valley due to the increased marijuana dispensaries, warehouse uses, and so on, I am shocked that the City of Riverside would not see the grave risk of following the trajectory of Moreno Valley, Perris, and San Bernardino should cannabis allowances be made here.

Additionally, we take issue with the broad statement that this project is exempt from CEQA as we strongly disagree with staff's statement that "there is no possibility the project will have a significant effect on the environment". We see this as a big overreach on staff's perspective in applying Section 15061(b)(3) (CommonSense) of CEQA, as conversely, to our perspective it is common sense that this project will negatively and significantly impact the environment if cannabis is grown, distributed, and made more increasingly available for consumption in this City. Furthermore, we believe that crime and homelessness will only be further exacerbated if the City should encourage additional drug use within its zones through a lax zoning code and planning policies. For these reasons as well as many others that we don't have time to list, we strongly urge that the Planning Commission deny staff's recommendation to amend Title 19 for cannabis uses and we plead that the City not give up its hard-won progress in making Riverside the great city that it is now.

Thanks you,

Steven Wu
6348 Westview Dr.

Riverside, CA 92506
Distributed at Planning Commission
January 19, 2023
Agenda Item: 04
From: Kaitlyn Wu <[email protected]>
Sent: Tuesday, January 17, 2023 5:21 PM
To: Eguez, Judy <[email protected]>; Andrade, Frances <[email protected]> Subject: [External] Public Comment: PLANNING CASE PR‐2022‐001453 CAUTION: This email is originated from OUTSIDE of City of Riverside and was not sent by any City Officials or City Staff. Do not click on links or open attachments unless you are expecting the email and know that the content is safe. If you suspect this is a phishing or malicious email, please contact the helpdesk.

Hello,

My name is Kaitlyn and I am a resident of Riverside who has loved living here in this City. Though many of my family members and friends in LA and Orange County have a negative perception of Riverside (for its crime, homelessness, etc), I have found a great community and forged wonderful memories here. This is why I am gravely disappointed that the Planning Commission is considering an amendment of Title 19 in code for allowance of commercial cannabis uses (PLANNING CASE PR-2022-001453).

Thanks,

Kaitlyn Wu
6348 Westview Dr.

Riverside, CA 92506
Distributed at Planning Commission
January 19, 2023
Agenda Item: 04

Economic Development,
Placemaking and Branding/
Marketing Committee

TO: ECONOMIC DEVELOPMENT, PLACEMAKING DATE: OCTOBER 20, 2022

AND BRANDING/MARKETING COMMITTEE

FROM: CITY ATTORNEY’S OFFICE WARDS: ALL

CITY CLERK

COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT

DEPARTMENT OF FINANCE

RIVERSIDE FIRE DEPARTMENT

RIVERSIDE POLICE DEPARTMENT

SUBJECT: REVIEW AND PROVIDE DIRECTION FOR THE PROPOSED RIVERSIDE

MUNICIPAL CODE AMENDMENTS RELATED TO LEGALIZING CANNABIS USES: TITLE 5 – BUSINESS TAXES, LICENSES AND REGULATIONS; TITLE 9 – PEACE, SAFETY AND MORALS; AND TITLE 19 – ZONING

ISSUE:

Review and provide direction for the proposed Riverside Municipal Code Amendments related to legalizing cannabis uses: Title 5 – Business Taxes, Licenses and Regulations; Title 9 – Peace, Safety and Morals; and Title 19 – Zoning.

RECOMMENDATION:

That the Economic Development, Placemaking and Branding/Marketing Committee review and provide direction on the proposed Riverside Municipal Code Amendments related to legalizing cannabis uses: Title 5 – Business Taxes, Licenses and Regulations; Title 9 – Peace, Safety and Morals; and Title 19 – Zoning.

BACKGROUND:

In 2016, California voters passed Proposition 64 (The Adult Use of Marijuana Act) which allowed for adults 21 or older to legally grow, possess and use cannabis for recreational purposes and legalized the sale and distribution of cannabis statewide. Shortly thereafter, Governor Brown signed Senate Bill 94 (The Medicinal Adult -Use Cannabis Regulation and Safety Act or MAUCRSA) into law. While the MAUCRSA created minimum requirements for licensees statewide, Proposition 64 and Senate Bill 94 gave local governments the flexibility to implement local regulatory frameworks for land-use entitlements, building permits and business/operating licenses for cannabis related uses.

Riverside Municipal Code Changes Related to Cannabis and Ballot Initiative Page 2

Following the passage of Proposition 64, ac tions related to cannabis in the City of Riverside included:
• July 25th, 2017 - Prepared a moratorium on commercial marijuana activity (excluding testing laboratory facilities)
• September 12, 2017 - Adopted an interim moratorium, followed by a ten- month fifteen- day moratorium extension on October 24, 2017
• November 7, 2017 - Adopted Ordinance No. 7398 to amend Title 5 of the RMC to permit and regulate Cannabis Testing Laboratories in industrial zones, subject to permit requirements (effective December 28, 2017
• January 9, 2018 - Continued the discussion of a regulatory framework for 45 days to follow a visit to Denver, Colorado to better understand the cannabis industry • March 27, 2018 - Directed staff to immediately prepare an ordinance prohibiting (a) the retail and commercial sale of cannabis; (b) commercial agricultural cultivation of marijuana, (c) the manufacturing and sale of marijuana extractable and consumable products, ( d) distribution of all marijuana and cannabis associated products, (e) the establishment of microbusinesses such as boutique lounges; and (f) outdoor cultivation of all marijuana plants, including medical marijuana
• May 31, 2018 – Amended Title 19 – Zoning – heard by Planning Commission at a public hearing (Planning Commission denied by a vote of 2 ayes, 5 noes and 1 abstention) • July 10, 2018 – Appealed Planning Commission decision ( Councilmember Conder ) – heard by City Council who voted to approve the amendments to Title 5 and Title 19 of the RMC, codifying a prohibition of commercial cannabis uses within City limits On Tuesday, September 28, 2021, the City of Riverside received a Notice of Intent to Circulate Petition for the Riverside Cannabis Taxation and Regulation Act , then amended on November 5, 2021. The City Attorney prepared and provided a Ballot Title and Summary to the proponents on November 18, 2021.

If the proponents continue through the initiative process and gather enough signatures required within 180 days (May 17, 2022) , then City Council could choose one of two options : Call an election to place the ballot measure on the ballot during an election (special or regular); or Adopt the proposed Ordinance without revision.

If passed by voters or accepted by the City Council , it would create a regulatory framework for all cannabis uses within the City, largely without City Council, staff , or community input. Unlike ordinances passed by City Council, regulations established through a voter -initiated ballot cannot be amended or modified by sole action of the City Council. If an alternative third party- initiated ballot measure is passed by the voters, any future amendments must go through a ballot process during a general election for approval.

On November 18, 2021, the Economic D evelopment, Placemaking and Branding/Marketing Committee discussed the need to develop an ordinance with the legal and regulatory framework for the permitting, licensing, enforcement, taxation, and legal operations of commercial cannabis storefronts within the City limits and directed staff to return to the Committee with Ordinance options.

On March 24, 2022 , the Economic Development, Placemaking and Branding/Marketing Committee (Committee) directed staff to prepare amendments for the Riverside Municipal Code (RMC): 1) Title 5 – Business Taxes, Licenses and Regulations amendments related to licensing of cannabis business uses; 2) Title 9 – Peace, Safety and Morals amendments to clean up and Riverside Municipal Code Changes Related to Cannabis and Ballot Initiative Page 3

provide consistency in cannabis regulations and terminology; and 3) Title 19 - Zoning amendments related to land use regulations for cannabis related uses and microbusinesses .

Staff was also directed to conduct a financial analysis on potential revenue and move forward with a cannabis tax ballot measure in 2024 with the type of tax, language, and percentage to be determined at a later date.

DISCUSSION:

Since the Committee meeting in March 2022, a team of City staff have worked with a consultant to draft RMC amendments (Draft Amendments) for Title 5, Title 9 and Title 19 (Attachment 1).

The City team includes staff from the City Manager’s Office, City At torney’s Office, City Clerk, Community & Economic Development Department, Finance Department, Riverside Fire Department and Riverside Police Department. In preparing the amendments, several decisions points were identified where further direction was needed from the Committee.

Draft Riverside Municipal Code Amendments

The following summarizes the decision points and the City team’s recommended way forward for Committee discussion and direction. If appropriate, the page number i n the Draft Amendments is included to facilitate the Committee’s review.

1) Ownership Definition (Title 5 - Page 4)
Decision Point – What is the percentage of ownership the City wants to include in defining the owner of the Commercial Cannabis Business?
A. The State defines an “owner” as a person with an aggregate interest of 20% or more in the Commercial Cannabis Business.

B. The Draft Amendments follow the State definition and includes a percentage of 20% in the definition of “owner.”
C. A lower percentage (e.g., 10%) would require that more investors may have to follow the responsibilities of a defined owner.

2) Criminal Background Checks (Title 5 - Page 6)
Decision Point – Does the City want to require employee background checks? A. Employee background checks are not required by the State.

B. The Draft Amendments would require City background checks for employees.

C. Riverside Police Department indicates this is current practice in the City and conduct similar background checks for violent felony crimes for employees of other businesses requiring special operating permits such as massage parlors.

3) Number of Various Uses Allowed ( Title 5 - Page 7) and Storefront Delivery (Title 5 -

Page 24 ends

Decision Point – Does the total number of Commercial Cannabis Businesses includ e both storefront and non-storefront retail uses?
Decision Point – Should Manufacturing, Distribution, and Testing Laboratories not be limited? Decision Point – Should storefront retailers be allowed to deliver?

Riverside Municipal Code Changes Related to Cannabis and Ballot Initiative Page 4

A. The Committee directed staff to allow up to 14 Commercial Cannabis businesses (2 per Ward) in the Draft Amendments.

B. Clarification is needed if this includes both storefront and non- storefront (essentially delivery retail) businesses.

C. Separate from the 14 retail businesses are Manufacturing, D istribution and T esting Laboratories, which are not limited in the Draft Amendments.

D. The Draft Amendment recommends allowing storefront retailers to deliver (requirements for delivery are included).

4) Labor Peace Agreement (Title 5 - Page 9)
Decision Point – How many employees should trigger a labor peace agreement for the owner? A. Labor Peace Agreements are required by the State for 20 or more employees.

B. Beginning July 1, 2024, a Labor Peace Agreement will be required by the State for all applicants/licensees with 10 or more employees.

C. The Draft Amendment recommends 5 employees based on recent policy direction from the City Council.

5) Appeal Officer (Title 5 - Page 13)
Decision Point – Who should hear appeals related to Commercial Cannabis Businesses? A. Appeals can be heard by a variety of parties: City Council, City Manager, Appointed Hearing Officer, City Board or Commission.

B. The Draft Amendment recommends that an Appointed Hearing Officer hear appeals related to denial of permit applications and other appeals of citations and violations once a Commercial Cannabis Business is operational.

C. This is consistent with current Code related cases in the City of Riverside. i. Currently hears appeals for numerous City Departments. ii. Includes, but is not limited to, code enforcement citation appeals, Fire Prevention cases, RPD cit ations pertaining to fireworks and entertainment permits, massage parlor appeals for PD.
iii. Current Appointed Hearing Officer is an attorney.

6) Distance from Sensitive Receptors (Title 5 - Page 16) Decision Point – What distance separation from sensitive receptors should be included? A. The State law grants local jurisdictions the authority to “specify a different radius” than the 600-foot requirement for schools, daycare centers, and/or youth centers.

B. State law also grants local jurisdictions authority to impose additional requirements beyond rules/regulations mandated by the State (e.g. , recognizing additional sensitive use buffers beyond state default of schools, day-care centers, and youth-centers).

C. The Draft Amendment recommends a 600- foot separation for schools, daycare centers and community centers. These uses can be tracked by the City when applications are submitted.

D. The Draft Amendment includes no distance separation from “youth centers” as they are too broadly defined by the State for the City to be able to track the locations.

E. Riverside Unified School District requested a minimum distance of 1, 000 feet from schools.

F. A map has been included to illustrate a 600-foot and 1, 000-foot buffer to the sensitive receptors (Attachment 2).

Riverside Municipal Code Changes Related to Cannabis and Ballot Initiative Page 5

7) Equity Application and License Standards
Decision Point – Should the City study the potential for Equity Application and License Standards?
A. The State provides financial support to cannabis business es by waiving licensing fees if applicants and licensees meet the equity eligibility criteria set in the proposed regulation such as past cannabis convictions or arrests, reduced income or residence in an area disproportionately impacted by past criminal justice policies, as well as other criteria.

B. Pursuant to Business and Professions Code Section 26249(c), a local j urisdiction may implement “equity application and license” standards which require verification from the State.

C. Local agencies are not required to establish local equity programs to provide waiver or deferral of application or license fees.

D. At this time, staff has not yet received policy direction from the Committee to establish a local cannabis equity program. Therefore, the Draft Amendment does not include Equity Application and License Standards.

E. Should the Committee, and ultimately City Council, wish to consider adopting Equity and License Standards , the first step in the process would be to direct staff to prepare a Cannabis Equity Study, which would form the basis of equity eligibility criteria and program benefits (study costs typically range from $10,000 to $100,000).

8) Public Outreach
Decision Point – Should additional outreach be completed for the RMC changes? A. To date, the Committee has heard the item in November 2021, March 2022 and at this meeting.

B. Committee members have also made presentations, upon request, on the item.

C. For the Draft Amendments, additional outreach has not been conducted.

D. A public outreach program will be developed for the ballot measure moving forward.

There are no outstanding decisions for Titles 9 and 19 as these RMC changes are clean-up items and reflect the Title 5 proposed changes.

Future Actions

The next steps for the RMC changes include finalizing the Draft Amendments per the Committee direction for City Council consideration.

On a parallel path, the City is working on items required for implementation if the Draft Amendments are adopted by City Council. This includes but is not limited to:
• October 2022 - February 2023
o Finalize the Draft Amendments
o City Council Consideration
• January 2023 – June 2023
o Financial analysis on potential revenue
o Implementation
 Application Submission and Review process
 Application Criteria and Application
 Community Benefit Agreement template
 Tracking, Monitoring and Reporting structure
Riverside Municipal Code Changes Related to Cannabis and Ballot Initiative Page 6

 Fee Schedule
• 2023-2024 - Ballot Measure

STRATEGIC PLAN ALIGNMENT:

This item contributes to the Envision Riverside 2025 City Council Strategic Plan:
• Priority 3 – Economic Opportunity
o Goal 3.3 – Cultivate a business climate that welcomes innovation, entrepreneurship, and investment.
• Priority 5 – High Performing Government
o G oal 5.4 Achieve and maintain financial health by addressing gaps between revenues and expenditures and aligning resources with strategic priorities to yield the greatest impact.

This item aligns with each of the five Cross-Cutting Threads as follows:

1. Community Trust – The City continues to be transparent in studying the potential for Riverside Municipal Code changes and a ballot measure. A community outreach program will be developed as part of the process and ultimately, residents will decide on the ballot measure an any potential business tax.

2. Equity – The draft Riverside Municipal Code amendments will provide opportunities for those impacted in the past because cannabis was illegal. The review process, open to all, would include criteria to choose those businesses that would best fit and operate in the City of Riverside.

3. Fiscal Responsibility – With the collection of a business tax, voted on by the residents of the City, the City would realize additional revenues that is lost because these businesses are not permitted in Riverside.

4. Innovation – The changes to the Riverside Municipal Code and ballot measure would be prepared using an expert consultant that fully understands the State laws ensuring that the best and a creative approach will be used to regulate cannabis businesses.

5. Sustainability & Resiliency – The proposed changes to the Riverside Municipal Code and ballot measure will help the City to realize additional business tax that will ensure its sustainability and resiliency.

FISCAL IMPACT:

There is no fiscal impact associated with this staff report.

The City Attorney’s Office, City Clerk, Department of Finance, Riverside Fire Department and Riverside Police Department concur with this staff report.

Prepared by: Chris Christopoulos , Acting Community & Economic Development Director
Certified as to
Riverside Municipal Code Changes Related to Cannabis and Ballot Initiative Page 7

availability of funds: Edward Enriquez, Interim Assistant City Manager/Chief Financial Officer/Treasurer
Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney

Attachments:

1. Draft Riverside Municipal Code Amendments – Title 5, Title 9 and Title 19

2. 600-foot and 1000-foot Radius Map – Sensitive Receptors

3. Presentation
1 3
7 6
5 4
2 City of Riverside, County of Riverside, California State Parks, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, USDA
0 2 41
Miles
KEY
Sensitive Receptors
600ft Buffer
1000ft Buffer
Commercial Zones
City Limit
Wards
µ
Attachment 2 - Retail Cannabis and Sensitive Receptor Buffers 1 11/22/2022
RiversideCA.gov
1 RiversideCA.gov
Economic Development, Placemaking
and Branding/Marketing Committee
October 20, 2022
Cannabis Update

CITY ATTORNEY'S OFFICE
CITY CLERK’S OFFICE

COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT

FINANCE DEPARTMENT

FIRE DEPARTMENT

POLICE DEPARTMENT
RiversideCA.gov
2 1. 2017
A. Moratorium on commercial marijuana activity (excluding testing laboratory facilities)
B. Adopted Ordinance No. 7398 to am end Title 5 of the Riverside Municipal Code (RMC) to permit and regulate Cannabis Testing Laboratories in industrial zones

2. 2018
A. Continued discussion of a regulatory framework for cannabis businesses
B. Staff directed to prepare an ordinance prohibiting cannabis businesses (except for testing laboratories) and amended RMC C. City Council voted to approve the amendments to RMC codifying a prohibition of commercial cannabis uses within City limits

BACKGROUND
1 2
2 11/22/2022
RiversideCA.gov
3 1. City receives Notice of Intent to Circulate Petition for the Riverside Cannabis Taxation and Regulation Act

2. Two Options for City Council Consideration on the
Petition
A. Call an election to place the initiative petition on the ballot; or
B. Adopt the proposed initiative petition without revisions.

BACKGROUND – SEPTEMBER 2021
RiversideCA.gov
4 1. Economic Development, Placemaking and Branding/
Marketing Committee (Committee) meeting to consider
legalization

2. City Team assembled - City Manager’s Office, City
Attorney’s Office, City Clerk’s Office, Community &
Economic Development Department, Fire Department, and
Police Department

3. Additional research
A. Legalizing cannabis retail, microbusiness, and distribution uses in the City of Riverside; and
B. Initiate a ballot measure to determine if a business tax should be collected and what that business tax should be for the City.

BACKGROUND – NOVEMBER 2021
3 4
3 11/22/2022
RiversideCA.gov
5 1. Immediate Actions - Prepare amendments for the Riverside Municipal Code (RMC)
A. Title 5 - Business Taxes, Licenses and Regulations amendments related to licensing of cannabis business uses;
B. Title 9 - Peace, Safety and Mora ls amendments to clean up and provide consistency in cannabis regulations and terminology; and C. Title 19 - Zoning amendments related to land use regulations for cannabis related uses and microbusinesses.

2. Future Actions
A. Conduct a financial analysis on potential revenue
B. Cannabis tax ballot measure in 2024 (type of tax, language, and percentage determined at a later date)
BACKGROUND - MARCH 2022
RiversideCA.gov
6 1. Draft Amendments completed (Title 5, Title 9 and Title 19)

2. Direction from Committee – Title 5

3. No further Direction needed for Title 9 and Title 19 A. Clean up items
B. Reflect changes to Title 5
DISCUSSION – RMC CHANGES
5 6
4 11/22/2022
RiversideCA.gov
7 1. Ownership Definition (Title 5 – Page 4)
Decision Point 1 – What is the percentage of ownership the City wants to include in defining the owner of the Commercial Cannabis Business?
A. The State defines “owner” - interest of 20% or more
B. Draft Amendments includes a percentage of 20% in defining owner
C. A lower percentage (e.g., 10%) could be considered - more investors may have to follow the responsibilities of a defined owner
DISCUSSION – DECISION POINT 1
RiversideCA.gov
8 2. Criminal Background Checks (Title 5 - Page 6)
Decision Point 2 – Does the City want to require employee background checks?
A. Employee background checks - not required by the State B. Draft Amendments would requir e City background checks for employees
C. Riverside Police Department
i. current practice in the City
ii. Conduct similar background ch ecks for violent felony crimes for employees of other businesses such as massage parlors DISCUSSION – DECISION POINT 2
7 8
5 11/22/2022
RiversideCA.gov
9 3. Number of Various Uses Allowed (Tit le 5 - Page 7)and Storefront Delivery Title 5 - Page 24)
Decision Point 3A – Does the total number of Commercial Cannabis Businesses include both storefront and non-storefront retail uses? Decision Point 3B – Should Manufacturing and Distribution; and Testing Laboratories not be limited?
Decision Point 3C – Should storefront retailers be allowed to deliver? A. Draft Amendments allow up to 14 Commercial Cannabis Uses (2 per Ward) - both storefront and non-storefront businesses
B. Manufacturing/Distribution and Testing Laboratories not limited in the Draft Amendments
C. Draft Amendment recommends allowing storefront retailers to deliver (requirements for delivery are included).

DISCUSSION – DECISION POINT 3
RiversideCA.gov
10 4. Labor Peace Agreement (Title 5 - Page 9)
Decision Point 4 – How many employees should trigger a labor peace agreement for the owner?
A. Labor Peace Agreements required by the State for 20 or more employees
B. Beginning July 1, 2024, a Labor Peace Agreement will be required by the State for all applicants/licensees with 10 or more employees
C. Draft Amendments recommends 5 employees based on
recent policy direction from the City Council
DISCUSSION – DECISION POINT 4
9 10
6 11/22/2022
RiversideCA.gov
11 5. Appeal Officer (Title 5 - Page 13)
Decision Point 5 – Who should hear appeals related to Commercial Cannabis Businesses?
A. Appeal person/body is not mandated by State
B. Draft Amendments recommend an Appointed Hearing Officer once a Commercial Cannabis Business is operational.

C. Consistent with current Code related cases in the City of Riverside i. Currently hears appeals for numerous City Departments ii. Includes, but is not limited to, code enforcement citation appeals, Fire Prevention cases, RPD citations pertaining to fireworks and entertainment permits, massage parlor appeals for PD
iii. Current Appointed Hearing Officer is an attorney
DISCUSSION – DECISION POINT 5
RiversideCA.gov
12 6. Distance from Sensitive Receptors (Title 5 - Page 16) Decision Point 6 – What distance separation from sensitive receptors should be included?
A. The State does grant local jurisdictions:
i. Authority to “specify a different radius” than the 600-foot requirement for schools, daycare centers, and/or youth centers
ii. Authority to impose additional requirements for additional sensitive uses B. Draft Amendment recommends 600-foot separation for schools, daycare centers and community centers (Uses that can be tracked by the City)
C. No distance separation from youth centers – broadly defined by the State (Uses cannot be tracked by the City)
D. Riverside Unified School District requested a 1000-foot separation from schools
DISCUSSION – DECISION POINT 6
11 12
7 11/22/2022
RiversideCA.gov
13 DISCUSSION – DECISION POINT 6
RiversideCA.gov
14 7. Equity Application and License Standards
Decision Point – Should the City study the potential for Equity Application and License Standards?
A. The State provides financial support to cannabis business - waiving licensing fees if applicants and licensees meet the equity eligibility criteria B. Pursuant to Business and Professions Code Section 26249(c), a local jurisdiction may implement “equity application and license” standards – State verification required
C. Not required
D. Staff has not received direction to establish a local cannabis equity program - Draft Amendment does not include Equity Application and License Standards.

E. If directed, the first step in the process would be to direct staff to prepare a Cannabis Equity Study (costs typically range from $10,000 to $100,000) DISCUSSION – DECISION POINT 7
13 14
8 11/22/2022
RiversideCA.gov
15 8. Public Outreach
Decision Point – Should additional outreach be completed for the RMC changes?
A. Committee meetings - November 2021, March 2022 and at this meeting
B. Committee members - presentatio ns, upon request, on the item
C. For the Draft Amendments, additional outreach has not been conducted
D. A public outreach program will be developed for the ballot measure moving forward
DISCUSSION – DECISION POINT 8
RiversideCA.gov
16 1. October 2022 - February 2023
A. Finalize the Draft Amendments
B. City Council Consideration

2. January 2023 – June 2023
A. Financial analysis on potential revenue
B. Implementation
i. Application Submission and Review process
ii. Application Criteria and Application
iii. Community Benefit Agreement template
iv. Tracking, Monitoring and Reporting structure
v. Fee Schedule

3. 2023-2024 - Ballot Measure

FUTURE ACTIONS
15 16
9 11/22/2022
RiversideCA.gov
17 That the Economic Development, Placemaking and
Branding/Marketing Committee review and provide
direction on the proposed Riverside Municipal Code
Amendments related to legalizing cannabis uses: Title 5 – Business Taxes, Licenses and Regulations; Title 9 – Peace, Safety and Morals; and Title 19 – Zoning

RECOMMENDATIONS
RiversideCA.gov
18 STRATEGIC PLAN ALIGNMENT
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
#5 High Performing Government
#3 Economic Opportunity
Envision Riverside 2025 Strategic Plan Priorities
Cross-Cutting Threads
17 18
10 11/22/2022
RiversideCA.gov
19 REFERENCE ONLY SLIDE
19 1
3 7
6 5
4 2
City of Riverside, County of Riverside, California State Parks, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, USDA
0 2 41
Miles
KEY
Sensitive Receptors
600ft Buffer
Commercial Zones
City Limit
Wards
µ
Exhibit 3 - Sensitive Use Buffers - Staff Recommendation City of Riverside, County of Riverside, California State Parks, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, USDA
µ
0 1 2 3 40.5
Miles
Exhibit 3 - Sensitive Uses Buffer - Committee Recommendation KEY
Sensitive Uses
1000ft Buffer - K-12 Schools, Colleges & Universities
600ft Buffer - Childcare and Community Centers
Commercial Zones
City Limit
Wards
City of Riverside, County of Riverside, California State Parks, Esri, HERE, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, USDA
µ
0 1 2 3 40.5
Miles
Exhibit 3 - Sensitive Uses Buffer - Planning Commission Comments KEY
Sensitive Uses (K-12 Schools,
Colleges, Universities, Parks,
Hospitals, Childcare, Places
of Worship)
1000ft Buffer
Commercial Zones
City Limit
Wards

Page 1 of 9 ends

TITLE 19 – ZONING
.
.
.

Chapter 19.146 - NORTHSIDE SPECIFIC PLAN ZONE (NSP)
.
.
.

19.146.025 Prohibited uses.

A. Any use which is listed as prohibited in the adopted Northside Specific Plan or prohibited by state and/or federal law is strictly prohibited.

B. Commercial marijuana cultivation, manufacturing, distribution, or sale is also strictly prohibited. .
.
.

Page 2 of 9 ends

Chapter 19.147 - DOWNTOWN SPECIFIC PLAN ZONE (DSP)
.
.
.

19.147.025 Prohibited uses.

Any use which is listed as prohibited in the adopted Downtown Specific Plan or prohibited by state and/or federal law is strictly prohibited. Commercial marijuana cultivation, manufacturing, distribution, or sale is also strictly prohibited.
.
.
.

Chapter 19.150 - BASE ZONES PERMITTED LAND USES
.
.
.

19.150.020 Permitted land uses.

A. A. Table 19.150.020 A. (Permitted Uses Table), Table 19.150.020 B. (Incidental Uses Table) and Table 19.150.020 C. (Temporary Us es Table) in Chapter 19.150 (Base Zones Permitted land uses) identify permitted uses, permitted accessory uses, permitted temporary uses, and uses permitted subject to the approval of a minor conditional use permit (Chapter 19.730 - Minor Conditional Use Permit), or conditional use permit (Chapter

19.760 - Conditional Use Permit), or uses requiring some other permit. Table 19.150.020 A. also identifies those uses that are specifically prohibited. Uses not listed in tables are prohibited unless the Community & Economic Development Department Director, or his/her designee, pursuant to Chapter 19.060 (Interpretation of Code), determines that the use is similar and no more detrimental than a listed permitted or conditional use. Any use which is prohibited by state and/or federal law is also strictly prohibited.

B. B. Chapter 19.149 - Airport Land Use Compatibility includes additional Airport Land Use Compatibility Plan requirements for discretionary actions proposed on property located within an Airport Compatibili ty Zone.

When located within an Airport Land Use Compatibility Zone, greater land use, restrictions for airport compatibility may apply per the applicable Airport Land Use Compatibility Plan.

19.150.020.A Permitted Uses Table

This table identifies permitted uses and uses requiring approval of other permits by zoning designation. In addition to these uses, other incidental and temporary uses may also be permitted as noted in the Incidental Uses Table and the Temporary Uses Table.

Use
Zones
Location of
Required
Standards in the
Municipal Code
Residential Zones
(Residential Conservation (RC), Residential Agricultural (RA-5), Rural Residential (RR), Residential Estate (RE), Single-Family Residential (R-1), Multiple Family Residential (R-3 and R-4))
Office & Commercial Zones
(Office, Commercial Retail, Commercial
General, Commercial Regional Center)
Mixed Use Zones
(Neighborhood, Village, Urban)
Industrial Zones
(Business Manufacturing Park, General
Industrial, Airport Industrial, Airport)
Other Zones
(Public Facilities, Railroad,
Neighborhood Commercial
Overlay)
RC** RA-5** RR RE R-1 R-3 R-4 O CR CG CRC* MU-N MU-V* MU-U* BMP I AI AIR PF RWY NC Overlay
.
.
.

Cannabis Cultivation, Personal X X X X X X X X X X X X X X X X X X X X X See Also Incidental Uses Table
Cannabis, Microbusiness X X X X X X X X X X X X X X X X X X X X X Cannabis Uses and Activities
Storefront Retail See Retail Sales Cannabis Non-storefront Retail See Retail Sales Cannabis Testing Laboratory See Laboratories - Research

Page 3 of 9 ends

19.150.020.A Permitted Uses Table

.
.
.

19.150.020.B Incidental Uses Table

This table identifies uses which are generally only permitted as an incidental use to some other permitted use on the propert y.

Use Zones Location of
Required
Standards in the
Municipal Code
Residential Zones
(Residential Conservation (RC), Residential Agricultural (RA-5), Rural Residential (RR), Residential Estate (RE), Single-Family Residential (R-1), Multiple Family Residential (R-3 and R-4))
Office & Commercial Zones
(Office, Commercial Retail, Commercial
General, Commercial Regional Center)
Mixed Use Zones
(Neighborhood, Village, Urban)
Industrial Zones
(Business Manufacturing Park, General
Industrial, Airport Industrial, Airport)
Other Zones
(Public Facilities, Railroad,
Neighborhood Commercial
Overlay)
RC** RA-5** RR RE R-1 R-3 R-4 O CR CG CRC* MU-N MU-V* MU-U* BMP I AI AIR PF RWY NC Overlay
.
.
.

Marijuana Cannabis Cultivation:

19.342 -
MarijuanaCannabis
Uses and Activities
See Article X
(Definitions)
Commercial, including Medical
Cannabis Cultivation, (Prohibited
use)

X X X X X X X X X X X X X X X X X X X X X Personal - Indoor P P P P P P P X X X X X X X X X X X X X X Personal - Outdoor (Prohibited
Use)

X X X X X X X X X X X X X X X X X X X X X .
.
.

.
.
.

Riverside Municipal Code – Proposed Amendments – Title 5, Title 9 and Title 19

Page 4 of 9 ends

Chapter 19.220 - SPECIFIC PLAN OVERLAY ZONE (SP)

19.220.020 Permitted land uses and development standards.

For those properties where the Specific Plan Overlay Zone is applied, all permitted use restrictions, development standards, and other applicable standards or regulations governing development as contained within the adopted specific plan shall apply. To the extent that the specific plan does not enumerate use restrictions, development standards, or other applicable regulations, the standards associated with the underlying base zone shall apply. In the event that provisions of the adopted specific plan conflict with or do not correspond with the provisions of the underlying base zone, the provisions as contained in the adopted specific plan shall apply and supersede the underlying base zone requirements ., with the exception of marijuana-related uses which shall be exclusively regulated by the underlying zone and are specifically prohibited .

Specific plans s hall be prepared and processed to Chapter 19.820 (Specific Plan/Specific Plan Amendments).
.
.
.

Chapter 19.342 MARIJUANACANNABIS PERSONAL USES AND ACTIVITIES

19.342.010 Purpose.

The purpose of this Chapter is to provide regulations related to personal and medical use only topursuant to California Health and Safety Code sections 11362.1 and 11362.2.

19.342.020 - Prohibition.

A. All marijuana cultivation, processing, delivery, sales and dispensaries, or any similar use, shall be prohibited activities in all zones and all specific plan areas in the City. No use permit, variance, building permit, or any other entitlement, license, or permit, whether administrative or discretionary, shall be approved or issued for the act ivities of marijuana cultivation, processing, delivery, sales, the establishment or operation of a marijuana dispensary or retail store, or any similar use, in the City, and no person shall otherwise establish or conduct such activities in the City.

B. This section is meant to prohibit all activities for which a State license is required. Accordingly, the City shall not issue any permit, license, except for testing laboratories, or other entitlement for any activity for which a State license is required under the Medicinal and Adult Use Cannabis Regulation and Safety Act.

C. Except as set forth in Section 19.342.040 below, cultivation of marijuana for medical purposes, including cultivation by a qualified patient or a primary caregiver, is expressly prohibited in all zones and all specific plan areas in the City. No person, including a qualified patient or primary caregiver, shall cultivate any amount of marijuana in the City, even for medical purposes.
(Ord. 7431 § 5, 2018)

19.342.030 - Cultivation.

Riverside Municipal Code – Proposed Amendments – Title 5, Title 9 and Title 19

Page 5 of 9 ends

A. Outdoor. No individual or entity may plant, cultivate, harvest, dry, or process marijuana plants outdoors in any zone or specific plan area of the City. No use permit, building permit, variance, or any other permit or entitlement, whether administrative or discret ionary, shall be approved or issued for any such use or activity.

B. Indoor. No individual or entity may plant, cultivate, harvest, dry, or process marijuana plants inside a private residence, or inside an accessory structure to a private residence located upon the grounds of a private residence, in excess of the limitations imposed by California Health and Safety Code section 11362.2. No individual or entity may plant, cultivate, harvest, dry, or process marijuana plants inside any enclosed structure within any zone or specific plan area of the City which is not either a private residence or an accessory structure to a private residence located upon the grounds of a private residence.

19.342.040 Personal use.

Pursuant to California Health and Safety Code sections 11362.1 and 11362.2, aAn individual may cultivate marijuanacannabis for personal use only within a residential structure or other fully enclosed and locked accessory structure located entirely on residential property owned or legally possessed by him or her, pursuant to the following regulations:

A. The cultivation of marijuanacannabis may take place only inside a lawfully existing and fully enclosed and secure private residence, or inside a lawfully existing and fully enclosed and secure accessory struc ture to a private residence that is located on the same parcel as the private residence. No cultivation shall occur outside of a fully enclosed structure.

B. The primary use of the property shall be for a residence and cultivation is to be considered an incidental use.

C. All areas used for cultivation of marijuanacannabis shall comply with all Buildings Codes and Regulations of the Riverside Municipal Code and the State of California, as well as all other applicable laws.

D. Indoor grow lights are not allowed in any structure used for human habitation. Indoor grow lights in any other structure shall not exceed 1,000 watts per light, and shall comply with the California Building, Electrical and Fire Codes as adopted by the City.

E. The use of gas products or volatile solvents, or dangerous poisons, toxins or carcinogens (including but not limited to CO 2 , butane, propane, natural gas, xylene, styrene, gasoline, kerosene, O2 H2, methanol, isopropyl alcohol, methylene chloride, acetone, benzene, toluene, and trichloro -ethylene,) or generators for cultivation of marijuanacannabis is prohibited.

F. Any structur e used for the cultivation of marijuanacannabis must have a ventilation and filtration system installed that shall prevent marijuanacannabis plant odors from exiting the interior of the structure and designed to prevent mold and moisture and otherwise prot ect the health and safety of persons residing in the residence and cultivating the marijuanacannabis. This ventilation shall at a minimum consist of a system meeting the requirements of the current, adopted edition of the California Building Code section 1 203.4 (Natural Ventilation) or section 402.3 (Mechanical Ventilation), or their equivalent(s).

Riverside Municipal Code – Proposed Amendments – Title 5, Title 9 and Title 19

Page 6 of 9 ends

G. Any accessory structure used for the cultivation of marijuanacannabis shall be located in the rear yard area of the parcel or premises and must maintain a minim um setback equal to the greater of (1) the setback imposed pursuant to the applicable zoning provisions of this Code, or (2) ten feet from any property line. The yard where the structure is maintained must be enclosed by a solid fence at least six feet in height.

H. Adequate mechanical locking or electronic security systems must be installed as part of the structure prior to the commencement of cultivation.

I. MarijuanaCannabis cultivation shall be limited to six marijuanacannabis plants per private residence, regardless of whether the marijuanacannabis is cultivated inside the residence or in an accessory structure. The limit of six plants per private residence shall apply regardless of how many individuals reside at the private residence.

J. The residential stru cture shall remain at all times a residence, with legal and functioning cooking, sleeping and sanitation facilities with proper ingress and egress. No room used for cooking of meals, sleeping or bathing shall be used for cultivation.

K. Cultivation of marijuanacannabis shall take place only on impervious surfaces.

L. There shall be no exterior evidence of marijuanacannabis cultivation occurring on the parcel.

M. No more than one room in any structure may be used for cultivation.

N. The marijuanacannabis cultivation area shall not exceed 32 square feet and not exceed ten feet in height per residence. This limit applies regardless of the number of individuals residing in the residence.

O. No room or area in a structure that is used for cultivation shall be accessible to persons under 21 years of age.

P. Written consent of the property owner to cultivate marijuanacannabis within the residential structure shall be obtained and shall be kept on the premises, and available for inspection by agents of the City.

Q. A portable fire extinguisher, that complies with the regulations and standards adopted by the State Fire Marshal and applicable law, shall be kept in any room used for cultivation of marijuanacannabis.

R. No one other than a full -time resident of the residence shall be inv olved or take part in the cultivation and said full-time resident may not participate in cultivation in any other location within the City.

S. No chemical fertilizers, pesticides, or other chemical agents shall be used for marijuanacannabis cultivation.

T. The marijuanacannabis cultivation area shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, noxious gases, odor, smoke, traffic, vibration, or other impacts; and shall not be conducted in a manner that is hazardous due to the use or storage of materials, processes, products or wastes, or from other actions related to the cultivation.

Riverside Municipal Code – Proposed Amendments – Title 5, Title 9 and Title 19

Page 7 of 9 ends

U. For the protection of local groundwater resources and indoor air quality, and to avoid disposal of harmful substances into sewers or septic systems, no chemical shall be used for marijuanacannabis cultivation that contains any substance on the list prepared pursuant to California Health and Safety Code section 25249.8; provided, that any chemical specifically approved by the California Department of Pesticide Regulation for indoor use on marijuanacannabis may be used in amounts prescribed by the Department. No chemical used for marijuanacannabis cultivation shall be stored in a manner visible from neighboring residences or to individuals located outside the property line or in the public right-of-way.

V. Cultivation shall be limited exclusively for the personal use of lawful residents of the property on which the cultivation is occurring.
.
.
.

ARTICLE X: - DEFINITIONS
Chapter 19.910 – DEFINITIONS

19.910.020 "A" Definitions
.
.
.

Agricultural stand means, in the RA-5 Zone, a stand for the sale of agricultural products produced or raised on the same premises, excluding marijuanacannabis and hemp.

Agricultural use means the use of land for the commercial or non -commercial purpose of planting, growing, rais ing, and harvesting of crops, livestock, or poultry; all of which shall be subject to any applicable state license, to a conditional use permit where required under this Code, and to the limitations and exclusions presented in this definition or as set forth for specific zones created under this Code. For the purpose of this definition, crops shall not include marijuanacannabis or hemp.
.
.
.

19.910.040 "C" Definitions
.
.
.

Cannabis shall have the same meaning as defined in TitleSection 5.77.060 of this Code.

Cannabis Products shall have the same meaning as defined in TitleSection 5.77.060 of this Code.

Cannabis means the term "cannabis" shall mean all items included in the California Health and Safety Code sections 11018 and 11018.1.

Cannabis cultivation, commercial shall have the same meaning as defined in Section 5.77.060 of this Code.

Riverside Municipal Code – Proposed Amendments – Title 5, Title 9 and Title 19

Page 8 of 9 ends

means the planting, growing harvesting, drying, trimming, clipping or processing of any kind, number, or size of cannabis plants or any part thereof. Cannabis shall be synonymous with cannabis, hemp, and any other cannabis derivatives.

Cannabis cultivatio n, personal means cannabis cultivation inside a lawfully existing and fully enclosed and secure private residence, or inside a lawfully existing and fully enclosed and secure accessory structure to a private residence that is located on the same parcel as the private residence for the exclusive personal use of a resident of the residence who is 21 years of age or older, as permitted by California Health and Safety Code sections 11362.1 and 11362.2.

Cannabis Distribution shall have the same meaning as defined in Section 5.77.060 of this Code.

Cannabis Non-storefront Retail shall have the same meaning as defined in Section 5.77.060 of this Code.

Cannabis Storefront Retail shall have the same meaning as defined in Section 5.77.060 of this Code.

Cannabis Testing Laboratory shall have the same meaning as defined in Section 5.77.060 of this Code.

Cannabis, Microbusiness means
Cannabis cultivation, delivery means the transport, shipment, conveyance, delivery, or transfer of cannabis for any purpose.

Cannabis, mobile dispensary. See definition in Chapter 9.65 - Mobile Cannabis Dispensaries Cannabis, primary caregiver. See the definition for primary caregiver set forth in California Health and Safety Code Sections 11362.5 and 11362.7 et seq.

Cannabis, qualified patient. See the definition for qualified patient set forth in California Health and Safety Code Sections 11362.5 and 11362.7 et seq.

Cannabis, medical dispensary means a facility where cannabis is made available for medical purposes in accordance with Health and Safety Code Section 11362.5 (Proposition 215).

Cannabis. See "marijuana."
.
.
.

19.910.090 "H" Definitions.
.
.
.

Home occupation means any use of a dwelling unit and related property for employment or occupational purposes that is incidental to the residential use of the dwelling unit. The cultivation, manufacturing, distribution, transport, or sale of marijuanacannabis or marijuanacannabis products is not a permitted home occupation. .

Riverside Municipal Code – Proposed Amendments – Title 5, Title 9 and Title 19

Page 9 of 9 ends

.
.

19.910.140 "M" Definitions.
.
.
.

Marijuana – See Cannabis.

Marijuana means the term "marijuana" shall mean all items included in the California Health and Safety Code sections 11018 and 11018.1.

Marijuana cultivation means the planting, growing harvesting, drying, trimming, clipping or processing of any kind, number, or size of marijuana plants or any part thereof. Marijuana shall be synonymous with cannabis, hemp, and any other cannabis derivatives.

Marijuana cultivation personal means marijuana cultivation inside a lawfully existing and fully enclosed and secure private residence, or inside a lawfully existing and fully enclosed and secure accessory structure to a private residence that is located on the same parcel as the private residence for the exclusive personal use of a resident of the residence who is 21 years of age or older, as permitted by California Health and Safety Code sections 11362.1 and 11362.2.

Marijuana cultivation, delivery means the transport, shipment, conveyance, delivery, or transfer of marijuana for any purpose.

Marijuana, mobile dispensary. See definition in Chapter 9.65 - Mobile Marijuana Dispensaries Marijuana, primary caregiver. See the definition for primary caregiver set forth in California Health and Safety Code Sections 11362.5 and 11362.7 et seq.

Marijuana, qualified patient. See the definition for qualified patient set forth in California Health and Safety Code Sections 11362.5 and 11362.7 et seq.

Massing means the unified composition of a structure's volume, affecting the perception of density and bulk. See definition in the Downtown Specific Plan.

Material processing facility (MPF) means a facility where source separated (presorted) recyclable materials are further sorted and separated, then bulked or converted for reprocessing, by hand or by use of machinery.

Material recovery facility (MRF) means a solid waste facility where mixed municipal solid waste is sorted or separated, by hand or by use of machinery, for the purpose of recovering recyclable materials.

Medical marijuana dispensary means a facility where marijuana is made available for medical purposes in accordance with Health and Safety Code Section 11362.5 (Proposition 215). .
.
.

December 23, 2022

Riverside Planning Commission,

My name is Matthew Nathaniel, and I am both a resident of downtown Riverside and a business professional in the cannabis industry, currently serving as Director with the Shryne Group. I would like to begin by thanking you for the recent discussion on December 8th in an effort to put forth the best ordinance for the City of Riverside. While this is a lengthy process, it’s exciting to be moving closer to legal, regulated cannabis in order to provide safe access to local consumers.

Having a great deal of experience with cannabis licensing, I want to express the importance of establishing the foundation for a smooth and efficient process. This begins with decisions regarding zoning and sensitive receptors. Cannabis businesses are heavily taxed, have stringent regulations, and limited traditional marketing options. This is why it’s essential for cannabis retail stores to be located in commercial zones in areas with high foot and vehicle traffic.

First there is the consideration of sensitive receptors, and how they should be defined. I encourage the city to be clear on the definitions of sensitive uses. When searching for properties, it is difficult for operators to make decisions if the definitions are ambiguous and not clearly stated. Typically, sensitive uses include schools (K-12), registered day care centers, and youth centers. Schools (K-12) and licensed day care centers are easily identifiable. However, “youth centers” are difficult to define. To maintain clarity, only locations that cater specifically to youth under the age of 18 are generally considered sensitive receptors. For example, churches aren’t considered a sensitive receptor, unless it has a licensed daycare or preschool that operates daily on premises. Other locations such as universities and hospitals simply don’t cater specifically to youth under 18 years old, and are not considered sensitive receptors.

Next, distance separation, or buffers, from sensitive receptors need to be examined.

California state law requires a 600 ft separation from sensitive receptors. And while the city has discretion to modify the distance to more than 600 feet, it’s vitally important to consider the amount of properties in commercial areas that will actually be available to a cannabis retail store and also be a viable location for a successful business. Looking at a map, one might think that if there are only 14 businesses allowed, there are plenty of locations. However, as you can see on the map provided by staff, the vast majority of compliant commercial properties are located along the Riverside Freeway (91) on Magnolia and Indiana, as well as downtown. There are a few spots at Van Buren Blvd and Arlington, at University and the 215, and at Canyon Springs and the 215. There are also other ways to measure these separation distances, such as path of travel from door to

door, which more accurately represents reality than property line to property line in a straight line.

This is a narrow market already, and as anyone experienced in this industry will tell you, most of the locations that appear available on a map aren’t actually available. Most already have a business on site, while others simply prefer not to work with a cannabis business. This greatly reduces the real options for cannabis retail stores, and creates a predatory real estate market for landlords, making it exponentially more expensive to secure and hold a property for an applicant. With these market conditions, I encourage the city to allow the 14 proposed retail stores to be allowed across the city and not place limits by ward. I also encourage you to consider the impact of sensitive receptors, separation distances on the real estate market, and how location can either set a business up for success, or condemn it to failure.

Riverside needs to have a good mix of businesses with strong, proven track records of success to ensure that the businesses can open in a timely manner, and will be able to follow through on community benefits, as well as deliver strong tax revenue to the city.

These are the type of businesses that will have the highest standards of product safety and on-site security to ensure safe access for consumers, and improved safety in the neighborhood.

I am happy to answer any questions at your convenience, and invite you to a tour of the Shryne Group’s flagship facility. This is a unique opportunity to see full vertical integration in a single location including tissue culture, cultivation, manufacturing, distribution, and retail. The behind-the-scenes perspective illustrates the different safety aspects of the product life cycle. Feel free to reach out if you have any questions, and would like to schedule a brief call or tour.

I look forward to continuing to work toward the creation of an ideal licensing process for the City of Riverside. Thank you for your time and consideration.

Sincerely,

Matthew Nathaniel
Director: Shryne Group
323.420.1091
[email protected]

1 01/06/2023
RiversideCA.gov
1 RiversideCA.gov
Planning Commission
Agenda Item: 4
January 19, 2023

CANNABIS BUSINESS PERMIT PROGRAM
PR-2022-001453 – Zoning Code Amendment

COMMUNITY & ECONOMIC DEVELOPMENT DEPARTMENT
RiversideCA.gov
2 2017
• Moratorium on commercial marijuana activity (excluding testing laboratory facilities)
• Adopted Ordinance No. 7398 to amend Title 5 of the Riverside Municipal Code (RMC) to permit and regulate Cannabis Testing Laboratories in industrial zones 2018
• Continued discussion of a regulatory framework for cannabis businesses • Staff directed to prepare an ordinance prohibiting cannabis businesses (except for testing laboratories) and amended RMC
• City Council voted to approve the amendments to RMC codifying a prohibition of commercial cannabis uses within City limits

BACKGROUND
1 2
2 01/06/2023
RiversideCA.gov
3 City receives Notice of Intent to Circulate Petition for the Riverside Cannabis Taxation and Regulation Act
BACKGROUND – SEPTEMBER 2021
Two options for City
Council consideration
on the Petition
Call an election to
place the initiative
petition on the
ballot; or
Adopt the proposed
initiative petition
without revisions.

RiversideCA.gov
4 EDPBM Committee meeting to consider legalization
City Team assembled:
a. City Manager’s Office
b. City Attorney’s Office
c. City Clerk’s Office
d. Community & Economic Development Department
e. Police Department
BACKGROUND – NOVEMBER 2021
3 4
3 01/06/2023
RiversideCA.gov
5 Prepare Amendments for the Riverside Municipal Code (RMC) • Title 5 - Business Taxes, Licenses and Regulations
• Title 9 - Peace, Safety and Morals
• Title 19 - Zoning
Future Actions
• Conduct a financial analysis on potential revenue
• Develop Application Procedure Requirements and Review Criteria • Prepare an Equity Study
• Cannabis sales tax ballot measure in 2024 (type of tax, language, and percentage determined at a later date)
BACKGROUND - 2022
RiversideCA.gov
6 BACKGROUND - 2022
Planning Commission Workshop – December 8, 2022
•Sensitive receptors
•Concentration of cannabis retail businesses
•Permit process cost preventative for small business
•Impacts on crime
5 6
4 01/06/2023
RiversideCA.gov
7 SENSITIVE USES BUFFER
RiversideCA.gov
8 SENSITIVE USES BUFFER
7 8
5 01/06/2023
RiversideCA.gov
9 SENSITIVE USES BUFFER
RiversideCA.gov
10 PROPOSED TITLE 19 AMENDMENTS

1. Eliminates the Citywide prohibition of commercial cannabis uses in the City;

2. Establishes Cannabis Storefront Retail, Cannabis
Warehousing/Distribution and Cannabis Testing Laboratories as permitted/conditionally permitted uses in specified Zones;

3. Prohibits Cannabis Cultivation and Cannabis Microbusinesses in all Zones;

4. Amends various Chapters of the Zoning Code for consistency with proposed amendments to Titles 5 and 9 of the Municipal Code; and

5. Establishes Definitions related to the proposed changes to cannabis uses.
9 10
6 01/06/2023
RiversideCA.gov
11 DISCUSSION – TITLE 19 – RMC CHANGES
RiversideCA.gov
12 DISCUSSION – TITLE 19 – RMC CHANGES
11 12
7 01/06/2023
RiversideCA.gov
13 February
2023
• Council Hearing –
Title 19
Amendments
(CEDD)
February –
June 2023
• Develop
application
Procedure
Guidelines and
Review Criteria
(CMO/Consultant)
• Conduct fee study
(Finance)
• Council adoption –
Guidelines and
Criteria (CMO)
July –
October 2023
• Potential
application period
(CMO)
• Prepare Fiscal
Impact Analysis for
sales tax measure
(Finance)
• Develop language
for sales tax
measure (Clerk)
November
2023 – 2024
• Place sales tax
measure on ballot
(Clerk)
• General Election –
November 5, 2024

NEXT STEPS
RiversideCA.gov
14 STRATEGIC PLAN ALIGNMENT
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
#5 High Performing Government
#3 Economic Opportunity
Envision Riverside 2025 Strategic Plan Priorities
Cross-Cutting Threads
13 14
8 01/06/2023
RiversideCA.gov
15 That the Planning Commission recommend the City Council:

1. Determine that Planning Case PR-2022-001453 is exempt from further California Environmental Quality Act (CEQA) review pursuant to Section 15061(b)(3) (General Rule), as it can be seen with certainty that approval of the project will not have an effect on the environment; and

2. Approve Planning Case PR-2022-001453 (Zoning Text
Amendment) as outlined in the staff report and
summarized in the Findings section of the report.

RECOMMENDATIONS
RiversideCA.gov
16 REFERENCE ONLY SLIDE
15 16

Riverside City CouncilFebruary 28, 2023

Riverside City Council
February 28, 2023