City of Stockton. Meeting Agenda - Final. City Council Special

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1 City of Stockton City Council Special Meeting Meeting Agenda - Final City Council Special Michael D. Tubbs Mayor/Chair Elbert H. Holman Jr. Vice Mayor/Vice Chair (District 1) Daniel R. Wright (District 2) Susan Lofthus (District 3) Susan Lenz (District 4) Christa Fugazi (District 5) Jesús M. Andrade (District 6) Tuesday, February 28, :30 PM Council Chamber, City Hall, 425 N. El Dorado Street, Stockton CA 1. SPECIAL SESSION CALL TO ORDER / ROLL CALL 2. PUBLIC COMMENT 3. ITEMS FOR DISCUSSION 4. NEW BUSINESS *Members of the public may only comment regarding items on this agenda RESOLUTION TO SET THE BUSINESS LICENSE TAX RATE FOR MEDICAL CANNABIS BUSINESSES OPERATING IN THE CITY PURSUANT TO CHAPTER 5.98 OF THE STOCKTON MUNICIPAL CODE Recommended Action: RECOMMENDATION It is recommended that the City Council adopt a resolution to set the business license tax rate for medical cannabis businesses operating in the City to $50 per one-thousand dollars in gross receipts, pursuant to Chapter 5.98 of the Stockton Municipal Code. Department: Attachments: Administrative Services Proposed Resolution - Medical Cannabis Tax Rate 5. PUBLIC HEARING AN URGENCY ORDINANCE AMENDING TITLES 5 AND 16 OF THE STOCKTON MUNICIPAL CODE RELATING TO MEDICAL CANNABIS BUSINESSES Page 1 City of Stockton Printed on 2/22/2017 1

2 City Council Special Meeting Agenda - Final February 28, 2017 Recommended Action: RECOMMENDATION Staff recommends that the City Council review and adopt an Urgency Ordinance amending Title 5, Chapter 5.100, section and Title 16, Chapter 16.80, sections (A)(1) and (B)(1) to: 1. Increase the number of available medical cannabis dispensary permits by two (2), which would increase the citywide dispensary cap for a total of 6 dispensaries; and 2. Limit the number of Conditional Use Permit (CUP) applications that may be processed consistent with the number of available Operator Permits under the applicable cap. Department: Attachments: Community Development Attachment A - Measure P Maps Attachment B - Proposed Ordinance - Redline Version Proposed Ordinance - Medical Cannabis 6. ADJOURNMENT CERTIFICATE OF POSTING I declare, under penalty of perjury, that I am employed by the City of Stockton and that I caused this agenda to be posted in the City Hall notice case on February 22, 2017, in compliance with the Brown Act. Bonnie Paige, CMC By: Deputy Page 2 City of Stockton Printed on 2/22/2017 2

3 City Council Special Meeting Agenda - Final February 28, 2017 *Members of the public may only comment regarding items on this agenda. All proceedings before the City Council are conducted in English. The City of Stockton does not furnish language interpreters and, if one is needed, it shall be the responsibility of the person needing one. In accordance with the Americans With Disabilities Act and California Law, it is the policy of the City of Stockton to offer its public programs, services and meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require a copy of a public hearing notice, or an agenda and/or agenda packet in an appropriate alternative format; or if you require other accommodation, please contact the Office of the City Clerk located at 425 North El Dorado Street, Stockton, California during normal business hours or by calling (209) , at least 5 days in advance of the hearing/meeting. Advance notification within this guideline will enable the City/Agency to make reasonable arrangements to ensure accessibility. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the Office of the City Clerk located at 425 North El Dorado Street, Stockton, California during normal business hours or by calling (209) The Agenda is available on the City of Stockton Website: CHALLENGING CITY DECISIONS: The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City is governed by Section of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision. Under Section , any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. If a person wishes to challenge the nature of the above section in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Stockton, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies. Page 3 City of Stockton Printed on 2/22/2017 3

4 City of Stockton Legislation Text File #: , Version: 1 RESOLUTION TO SET THE BUSINESS LICENSE TAX RATE FOR MEDICAL CANNABIS BUSINESSES OPERATING IN THE CITY PURSUANT TO CHAPTER 5.98 OF THE STOCKTON MUNICIPAL CODE RECOMMENDATION It is recommended that the City Council adopt a resolution to set the business license tax rate for medical cannabis businesses operating in the City to $50 per one-thousand dollars in gross receipts, pursuant to Chapter 5.98 of the Stockton Municipal Code. Summary On June 28, 2016, the Council approved Resolution that authorized to place a measure on the November 8, 2016 ballot for voters to decide whether to increase the City s medical cannabis business license tax rate. Measure Q was approved by percent of City voters, and requires an increase in the business license tax on a medical cannabis business from $25 per onethousand dollars in gross receipts to a minimum of $35 up to a maximum of $50 per one-thousand dollars in gross receipts. The proposed resolution would set the business license tax rate for medical cannabis businesses to $50 per one-thousand dollars in gross receipts. DISCUSSION Background On June 28, 2016, the Stockton City Council placed two ballot measures on the November 8, 2016, General Election ballot that expanded the number of medical marijuana dispensaries authorized to operate in the City, authorized medical marijuana cultivation businesses, and increased the business license tax on medical cannabis-related businesses. Council approved Resolutions and to place these measures on the ballot by a 7 to 0 vote. Measure P was approved by percent of City voters, which expands the number of medical marijuana dispensaries authorized to operate in the City and authorizes medical marijuana cultivation businesses. Measure Q was approved by percent of City voters and allows the City Council to raise or lower the business license tax within a range of between $35 - $50, per one-thousand dollars in gross receipts of medical cannabis. Measure Q amends the definition of "gross receipts" to broaden and simplify the application of the tax; define the term "Medical Cannabis"; and define the term "Medical Cannabis Business" to encompass a broad range of potential businesses, including dispensaries and cultivators. City of Stockton Page 1 of 2 Printed on 2/22/ powered by Legistar

5 File #: , Version: 1 Measure Q also amends Chapter 5.99 by updating the purpose and intent provisions; broadening the definition of "Marijuana Business" and clarifying that the application of the tax on recreational or other non-medical marijuana shall apply at such time that state or federal law, and the City Code, allow such use in the City. Prior to the approval of Measure P, two medical marijuana dispensaries were authorized to operate in the City of Stockton. Their annual gross receipts are estimated to total $6.7 million cumulatively and generate $168,000 in business license tax revenue. The revenue is based on the tax rate of $25 per one-thousand dollars in gross receipts and in addition to the $30,000 operating permit required annually from each medical marijuana business. Present Situation Measure P will allow for two additional dispensaries, for a total of four, and up to four marijuana cultivations sites. There can be no more than four of each type of marijuana business in the city, and no more than two businesses per Council district. Measure Q implemented changes to the tax rate for marijuana businesses. The expanded number of businesses and increased tax rate are estimated to generate $1 million annually. The recommended tax rate of $50 per one-thousand dollars will be levied on gross receipts of every medical cannabis business operating in the City of Stockton upon adoption of the proposed resolution. The Stockton Municipal Code does authorize a business license tax on non-medical marijuana businesses of $100 per one-thousand dollars in gross receipts pursuant to Chapter 5.99 of the Stockton Municipal Code, but only as such businesses are authorized by State or Federal law and permitted in the City. Chapter 5.99, which established the Marijuana Business category and tax rate, was approved by City voters at the November 2, 2010, election. At the time, the tax established in Chapter 5.99 was proposed in response to California Proposition 19 (2010), the Regulate, Control and Tax Cannabis Act. Proposition 19 was defeated, however the tax imposed by Chapter 5.99 was drafted such that it would apply in the event of any subsequent change in law as relates to the sale of recreational marijuana. Therefore, it is now effective following the passage of Proposition 64 (the California Marijuana Legalization Initiative ) adopted by voters of the State of California at the November 8, 2016, election. The State of California is also in the process of developing its regulatory scheme for non-medical marijuana businesses. FINANCIAL SUMMARY Medical cannabis business license tax proceeds will be placed in the City's General Fund and made available for any legal purpose. If approved, this Resolution will increase the business license tax on medical cannabis businesses from the current $25 per one-thousand dollars in gross receipts to the maximum tax of $50 per one-thousand dollars in gross receipts. The change in the business license tax may increase FY revenues by as much as $420,000 (for a partial year) and is expected to raise $1 million annually. City of Stockton Page 2 of 2 Printed on 2/22/ powered by Legistar

6 Resolution No. STOCKTON CITY COUNCIL A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF STOCKTON TO SET THE BUSINESS LICENSE TAX RATE FOR MEDICAL CANNABIS BUSINESSES OPERATING IN THE CITY PURSUANT TO CHAPTER 5.98 OF THE STOCKTON MUNICIPAL CODE The City of Stockton ( City ) City Council ( Council ) approved placing two ballot measures on the November 8, 2016, general election ballot that would overturn the City s ban on medical cannabis dispensaries, allow medical cannabis cultivation businesses within the City, and allow for the increase of business license taxes on medical cannabis-related businesses; and Council approved placing both measures, Measure P and Measure Q, on the ballot by a vote of 7-0, adopting Resolutions and ; and Measure P was approved by percent of City voters voting at the November 8, 2016 general election, which lifted the ban on and expanded the number of medical marijuana dispensaries authorized to operate in the City and authorized certain medical marijuana cultivation locations; and Measure Q was approved by percent of City voters voting at the November 8, 2016 general election, which, among other things, amended Stockton Municipal Code ( SMC ) Chapter 5.98 to increase the rate of the medical cannabis business license tax to a minimum of $35 up to a maximum of $50 for each $1,000 of gross receipts per year on or after January 1, 2017; and Pursuant to SMC section , as amended by Measure Q and approved by the voters, Council is authorized to set the business license tax rate applicable to medical cannabis businesses by ordinance or resolution; and Council therefore desires to set the annual business license tax rate for medical cannabis businesses operating in the City by and through this resolution; now, therefore, NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS: SECTION 1. FINDINGS. The Council hereby finds and declares that the above recitals are true and shall be incorporated into this resolution as though set forth herein. The Council further finds that Measure Q was approved by a majority of voters voting on 6

7 the measure at the November 8, 2016 general election, as required by Article XIIIC of the California Constitution and Government Code section SECTION 2. TAX RATE. Pursuant to the authority granted by Government Code section and SMC section (B), as amended by Measure Q and approved by the voters at the November 8, 2016 general election, the Council hereby authorizes the imposition of an annual business license tax on medical cannabis businesses operating in the City pursuant to SMC Chapter 5.98, in the amount of fifty dollars ($50) for each one-thousand dollars ($1,000) of gross receipts or fractional part thereof. Medical Cannabis, Medical Cannabis Business and Gross receipts shall have the same meanings as those set forth in SMC section SECTION 3. FUTURE ADJUSTMENT. Pursuant to SMC section (C), the Council may, at any time by future ordinance or resolution, adjust the general business license tax rate set forth herein to implement a lower tax rate it deems appropriate, and may increase such tax rate from time to time, not to exceed the maximum tax rate of $50 per each $1,000 of gross receipts per year set forth in this resolution. SECTION 4. SCOPE. Nothing in this resolution authorizes any personal, medical or commercial cannabis activity or use in any zone in the City. Nothing in this resolution authorizes or permits medical cannabis businesses to operate in the City. This resolution solely establishes the tax rate applicable to medical cannabis businesses which may be permitted or prohibited through other action of the City or the Council. SECTION 5. SEVERABILITY. If any provision of this resolution or the application thereof to any person, entity or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the resolution that can be given effect without the invalid provision or application, and to this end the provisions of this resolution are severable. SECTION 6. SUPERSEDE. This resolution supersedes all prior ordinances, resolutions and other Council actions that may conflict with or be contrary to this resolution. 7

8 SECTION 7. EFFECTIVE DATE. This resolution shall become effective immediately upon its adoption. Pursuant to Government Code section , this resolution shall be published in the same manner and within the same time as ordinances. To this end, the City Clerk is directed to publish this resolution, or a summary of this resolution, at least once in a newspaper of general circulation in the City within fifteen (15) days of its passage. PASSED, APPROVED AND ADOPTED January 24, ATTEST: MICHAEL D. TUBBS Mayor of the City of Stockton BONNIE PAIGE City Clerk of the City of Stockton 8

9 City of Stockton Legislation Text File #: , Version: 1 AN URGENCY ORDINANCE AMENDING TITLES 5 AND 16 OF THE STOCKTON MUNICIPAL CODE RELATING TO MEDICAL CANNABIS BUSINESSES RECOMMENDATION Staff recommends that the City Council review and adopt an Urgency Ordinance amending Title 5, Chapter 5.100, section and Title 16, Chapter 16.80, sections (A)(1) and (B)(1) to: 1. Increase the number of available medical cannabis dispensary permits by two (2), which would increase the citywide dispensary cap for a total of 6 dispensaries; and 2. Limit the number of Conditional Use Permit (CUP) applications that may be processed consistent with the number of available Operator Permits under the applicable cap. Summary With the passage of Measure P last November, approximately 60 businesses made inquiries regarding the City s regulation of medical cannabis businesses. However, only two (2) CUP applications have been received (one dispensary and one cultivation site) even though the ordinance defines CUP requirements and there are no existing restrictions on applications. It appears there may be confusion about the permit process that caused a delay in potential businesses filing permit applications. This report will provide an overview of the newly enacted ordinance and allow the City Council to consider proposed ordinance changes. The overview and proposed change to increase the citywide limit on cannabis businesses would resolve any existing confusion and afford equal opportunity to potential applicants without negative impact to current applicants. Amendments to specify the number of CUP applications that may be processed will clarify how applications will be forwarded for consideration of Operator Permits and avoid unnecessary workload. An urgency ordinance was prepared to make the changes immediately. DISCUSSION Background Currently, two medical cannabis dispensaries operate within the City, and are the only lawfully established cannabis businesses in Stockton. Prior to the adoption of Measure P, the previous regulations included a Request for Proposals process that scored and ranked potential operators based on certain criteria. Only the top three dispensary operators were selected to apply for CUPs and Operator Permits. Subsequently, the City adopted an ordinance prohibiting all medical cannabis businesses. Only two of the CUPs had been legally established, which granted them the entitlement necessary to continue despite the prohibition. City of Stockton Page 1 of 3 Printed on 2/22/ powered by Legistar

10 File #: , Version: 1 On June 28, 2016, the Council adopted Resolutions and to place two qualified initiatives (Measures P and Q) before voters on the November 8, 2016 General Election ballot. The two initiatives sought to remove the prohibition on medical cannabis (marijuana) dispensaries, allow medical cannabis cultivation businesses within the City, and allow an increase to the business license tax on medical cannabis and marijuana-related businesses. Both measures were approved by the voters. Measure P did three things: lifted the ban on medical cannabis dispensaries, expanded the maximum number of medical cannabis dispensaries, and allowed the establishment of medical cannabis cultivation locations. Measure P amended Chapters 5.10, 16.20, and of the Stockton Municipal Code (SMC) to: Remove the prohibition on dispensaries; Allow up to four (4) medical cannabis dispensaries in certain commercial and industrial zones, including the two (2) existing dispensaries; Allow up to four (4) cultivation sites in industrial zones; Impose location restrictions for dispensaries and cultivation operations, including distances from sensitive locations; Require a CUP, Operator Permit, and permits for all employees; Prohibit dispensary owners/operators from owning/operating cultivation operations within the City; and Prohibit cultivation owners/operators from owning/operating dispensary operations within the City. As enacted, Measure P requires two types of permits for medical cannabis businesses: a CUP approved by the Planning Commission, and an Operator Permit approved by the Chief of Police. The CUP must be obtained prior to applying for an Operator Permit. The measure also sets zoning standards that restrict the location of dispensaries and cultivation facilities, including separation distances from sensitive land uses and from other cannabis businesses. A map that shows the areas available for these businesses, accounting for the land use limitations, is included as Attachment A - Measure P Maps. Measure P limits the number of dispensary Operator Permits to four citywide (including the two existing dispensaries) and not more than two in any Council District. The measure operates differently from the prior permitting procedure by defining the land use requirements for a CUP and the initial RFP process is no longer a part of the process. The initial step now begins with an application for a CUP. The change in process may be a source of confusion and may explain why only two out of 60 inquirers filed a CUP application to date. Because there is no limit on the number of CUP applications, there is the potential for Community Development to issue a CUP to more operators than would be eligible for Operator Permits. If too many CUPs are approved, it could result in additional confusion, a substantial amount of unnecessary work, and delay the issuance of Operator Permits. Proposed Changes The public hearing and proposed change to increase the citywide limit on cannabis businesses would City of Stockton Page 2 of 3 Printed on 2/22/ powered by Legistar

11 File #: , Version: 1 resolve existing confusion and afford equal opportunity to potential applicants without negative impact to current applicants. Amendments to specify the number of CUP applications that may be processed will clarify how applications will be forwarded for consideration of Operator Permits and avoid unnecessary workload. An urgency ordinance was prepared to make the changes immediately, streamline the process and resolve confusion most expeditiously. Under this process, applications for CUPs would be accepted based on the date of application submittal, and no applications in excess of the available number of Operator Permits would be accepted (Attachment B - Proposed Ordinance - Redline Version. Government Code section provides that an ordinance may take effect immediately if it is one that is adopted for the immediate preservation of the public peace, health or safety, contains a declaration of the facts constituting the urgency, and is passed by a four-fifths vote of the City Council. ENVIRONMENTAL CLEARANCE These amendments are categorically exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) as there is nothing in this Ordinance or its implementation that could reasonably have any significant effect on the environment. FINANCIAL SUMMARY There are no anticipated financial impacts with this ordinance amendment. Attachment A - Measure P Maps Attachment B - Proposed Ordinance - Redline Version City of Stockton Page 3 of 3 Printed on 2/22/ powered by Legistar

12 Attachment A - Measure P Maps 12

13 Attachment A - Measure P Maps 13

14 Attachment B ORDINANCE NO. AN ORDINANCE AMENDING TITLE 5 CHAPTER 5.100, SECTION AND TITLE 16 CHAPTER 16.80, SECTIONS (A)(1) AND (B)(1) OF THE STOCKTON MUNICIPAL CODE, RELATING TO MEDICAL CANNABIS BUSINESSES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS: SECTION I. DECLARATION OF URGENCY Pursuant to the provisions of California Government Code Sections and 36937, the City Council of the City of Stockton has determined that the provisions contained herein are necessary for the immediate preservation of the public peace, health, or safety within the incorporated areas of the city. This determination is based on the following facts and circumstances: 1. On November 8, 2016, Measure P was submitted to the voters for approval. Measure P lifted the ban on and expanded the number of medical marijuana dispensaries and allowed for medical marijuana cultivation locations. Measure P was approved and became effective on December 23, City staff have received numerous inquiries from members of the public regarding the establishment of medical marijuana dispensaries and cultivation businesses throughout the City of Stockton and are currently processing two applications (one for a medical marijuana dispensary and one for a cultivation business). 3. Although Measure P limits the number of operator s permits for dispensaries and cultivation sites, there is no such limitation on the number of applicants who may apply for Conditional Use Permits. Therefore, there is the potential for more Conditional Use Permit applications to be received than can ultimately operate. 4. Measure P does not contain a process for dealing with the disproportionate number of applicants versus available permits. 5. Immediate action is needed to increase the number of available permits and establish a process that limits the number of applications that may be filed and processed to ensure that the number of applications is proportionate to the number of available permits. 6. Failure to limit the number of applications given the substantial interest (I.e. 60 inquiries) would result in a substantial amount of staff time in both the Community Development and Police departments. CITY ATTORNEY REVIEW: DATE: 14

15 Attachment B 7. Processing such a substantial amount of applications would be overly oppressive or burdensome and could result in other work being postponed or left undone. For the Police department, this could mean unreasonable use of staff resources which might otherwise be allocated to more pressing public safety issues. For Community Development, this could mean that other more beneficial community projects are not processed as timely as they might otherwise be. 8. This Ordinance is found to be categorically exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) in that the City Council finds and determines that there is nothing in this Ordinance or its implementation that could reasonably have any significant effect on the environment. SECTION II. AMENDMENT OF CODE. Title 5 Chapter 5.100, Section is hereby amended to read as follows: At no time shall there be in operation within the City more than four six (46) active Operators Permits for dispensaries and four (4) active Operators Permits for cultivation sites. At no time shall there be more than two (2) dispensaries and two (2) cultivation sites in operation within any Council District. (Res I) SECTION III. AMENDMENT OF CODE. Title 16 Chapter 16.80, section (A)(1) is hereby amended to read as follows: A. Medical Cannabis Dispensaries. 1. Conditional use permit required. A conditional use permit is required to establish or operate a medical cannabis dispensary. The Director shall not accept applications for conditional use permits in excess of the number of available permits allowed under Stockton Municipal Code section SECTION IV. AMENDMENT OF CODE. Title 16 Chapter 16.80, section (B)(1) is hereby amended to read as follows: B. Medical Cannabis Cultivation. 1. Conditional use permit required. A conditional use permit is required to establish or operate a medical cannabis cultivation site. The Director shall not accept applications for conditional use permits in excess of the number of available permits allowed under Stockton Municipal Code section

16 Attachment B SECTION V. EFFECTIVE DATE. This ordinance shall take effect immediately and be in full force after its passage. ADOPTED: EFFECTIVE: ATTEST: MICHAEL D. TUBBS Mayor of the City of Stockton BONNIE PAIGE City Clerk of the City of Stockton 3 16

17 ORDINANCE NO. AN ORDINANCE AMENDING TITLE 5 CHAPTER 5.100, SECTION AND TITLE 16 CHAPTER 16.80, SECTIONS (A)(1) AND (B)(1) OF THE STOCKTON MUNICIPAL CODE, RELATING TO MEDICAL CANNABIS BUSINESSES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS: SECTION I. DECLARATION OF URGENCY Pursuant to the provisions of California Government Code Sections and 36937, the City Council of the City of Stockton has determined that the provisions contained herein are necessary for the immediate preservation of the public peace, health, or safety within the incorporated areas of the city. This determination is based on the following facts and circumstances: 1. On November 8, 2016, Measure P was submitted to the voters for approval. Measure P lifted the ban on and expanded the number of medical cannabis dispensaries and allowed for medical cannabis cultivation locations. Measure P was approved and became effective on December 23, City staff have received numerous inquiries from members of the public regarding the establishment of medical cannabis dispensaries and cultivation businesses throughout the City of Stockton and are currently processing two applications (one for a medical cannabis dispensary and one for a cultivation business). 3. Although Measure P limits the number of operator s permits for dispensaries and cultivation sites, there is no such limitation on the number of applicants who may apply for Conditional Use Permits. Therefore, there is the potential for more Conditional Use Permit applications to be received than can ultimately operate. 4. Measure P does not contain a process for dealing with the disproportionate number of applicants versus available permits. 5. Immediate action is needed to increase the number of available permits and establish a process that limits the number of applications that may be filed and processed to ensure that the number of applications is proportionate to the number of available permits. 6. Failure to limit the number of applications given the substantial interest (I.e. 60 inquiries) would result in a substantial amount of staff time in both the Community Development and Police departments. CITY ATTORNEY REVIEW: DATE: 17

18 7. Processing such a substantial amount of applications would be overly oppressive or burdensome and could result in other work being postponed or left undone. For the Police department, this could mean unreasonable use of staff resources which might otherwise be allocated to more pressing public safety issues. For Community Development, this could mean that other more beneficial community projects are not processed as timely as they might otherwise be. 8. This Ordinance is found to be categorically exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3) in that the City Council finds and determines that there is nothing in this Ordinance or its implementation that could reasonably have any significant effect on the environment. SECTION II. AMENDMENT OF CODE. Title 5 Chapter 5.100, Section is hereby amended to read as follows: At no time shall there be in operation within the City more than six (6) active Operators Permits for dispensaries and four (4) active Operators Permits for cultivation sites. At no time shall there be more than two (2) dispensaries and two (2) cultivation sites in operation within any Council District. SECTION III. AMENDMENT OF CODE. Title 16 Chapter 16.80, section (A)(1) is hereby amended to read as follows: A. Medical Cannabis Dispensaries. 1. Conditional use permit required. A conditional use permit is required to establish or operate a medical cannabis dispensary. The Director shall not accept applications for conditional use permits in excess of the number of available permits allowed under Stockton Municipal Code section SECTION IV. AMENDMENT OF CODE. Title 16 Chapter 16.80, section (B)(1) is hereby amended to read as follows: B. Medical Cannabis Cultivation. 1. Conditional use permit required. A conditional use permit is required to establish or operate a medical cannabis cultivation site. The Director shall not accept applications for conditional use permits in excess of the number of available permits allowed under Stockton Municipal Code section

19 SECTION V. EFFECTIVE DATE. This ordinance shall take effect immediately and be in full force after its passage. ADOPTED: EFFECTIVE: ATTEST: MICHAEL D. TUBBS Mayor of the City of Stockton BONNIE PAIGE City Clerk of the City of Stockton 3 19