San Bernardino Takes Action to Legalize Cannabis Businesses

Marijuana Laws

Despite adopting a moratorium on cannabis businesses on February 1, 2018, the San Bernardino City Council took swift action in adopting three new laws regulating cannabis businesses, personal cultivation, and public consumption of cannabis on February 21, 2018.  The second reading of the new ordinances is scheduled for March 7, 2018, and they will be effective April 7, 2018.

The first ordinance relates to marijuana business permits for indoor and mixed-light cannabis cultivation, manufacturing, distribution, transportation, testing, and dispensing of both medical and adult-use cannabis.  The City of San Bernardino established a maximum limit of one cannabis business per 12,500 residents (approximately 17 businesses) but the law does not mandate the issuance of any cannabis permits.  Initial cannabis permits will be issued for 12 months.  A local cannabis permit is a prerequisite to obtain a California cannabis license.

The permitted zones for cannabis businesses are much more expansive than the designated zones of the three marijuana ballot measures considered by San Bernardino voters in November 2016.  The law further incorporates a buffer zone of 600 feet from sensitive uses such as residences, schools, day care centers, youth centers, and parks.  Several other standard regulations are also set forth for each type of cannabis business.  Future resolutions of the San Bernardino City Council will determine how many of each type of cannabis business will be permitted, what fees will be assessed, and what process and criteria will be utilized.  The City Council will have the final decision on the issuance of the local cannabis permits.

The second ordinance regulates public consumption of marijuana.  Cannabis smoking is prohibited in any unenclosed area that is within 1000 feet of schools, day care centers, youth centers, alcohol rehabilitation center, substance abuse facilities, libraries, parks, bicycle paths or any other area in which the primary purpose is used for minors.  Cannabis smoking is also prohibited in unenclosed places of employment, public places, dining areas, recreational areas and service areas.

The third ordinance bans outdoor marijuana cultivation for personal use.  It imposes a six-plant limit, requires compliance with the electrical, building, and fire codes, and mandates an on-line registration program with a fee.  A ventilation and filtration system is also required to control odors emanating from the structure.

Ultimately, there is much more work to be done by City staff and City Council before there will be clear guidance on the future of commercial cannabis businesses in San Bernardino.  Read more about California cannabis law.

Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.

Cannabis Opportunities in San Bernardino; or lack thereof

Marijuana Laws

For several years, cannabis businesses of any kind were banned in the City of San Bernardino.  In November 2016, the citizens of San Bernardino had three choices regarding the future of cannabis in their town.  Two of the choices were the result of the initiative process which requires the proponents to collect sufficient signatures from registered voters in the City before they could be placed on the ballot.  The third choice was a City-sponsored ballot measure.  With three options on the ballot, San Bernardino voters were faced with a difficult choice.

Measure “O” established a regulatory process for all cannabis businesses (medical and adult-use), including zoning restrictions related to specific parcel numbers, distance from residential zones, and taxation.  Measure “N” also established a regulatory process for medical cannabis businesses only, including zoning restrictions to permit businesses in commercial zones, established distance requirements, imposed a 5% taxation on all gross receipts, and mandated a minimum of twenty medical cannabis business licenses in the City.  Measure “P”, placed on the ballot by the City Council,  established a regulatory process for all cannabis businesses, including zoning restrictions, but no taxation.

The City-wide ballot measures were on the same ballot as California Proposition 64 (Adult Use of Marijuana Act – AUMA) , the State-wide legalization of Adult Use of Cannabis (read more about California Cannabis Law).  Nearly 53% of the citizens of the County of San Bernardino voted for the legalization of the Adult Use of Cannabis.

Measure “O” was the successful measure with 54% of the votes cast (Measure “N” received 51.10%, and Measure “P” 48.45%).

The City was simultaneously sued to mandate the immediate implementation of Measure “O” and, alternatively, a challenge to the validity of Measure “O”.  The Court issued its Final Statement of Decision invalidating Measure “O” on February 9, 2018.  Read the Court Decision on San Bernardino Measure O.

It is anticipated that the proponents of Measure “O” will appeal the trial court decision and request a stay of the trial court decision.  It is further anticipated that the proponents of Measure “N” will file a lawsuit demanding that Measure “N” is immediately operative.  For more info, see this article from the San Bernardino Sun.

Meanwhile, on February 1, 2018, the City of San Bernardino extended a moratorium for ten months and fifteen days reinstating the previous ban of all cannabis businesses.  City staff presented proposed new regulations to the City Council on February 7, 2018.  The proposed new regulations will be forwarded to the Planning Commission for consideration.

Between lawsuits and City Council consideration of new regulations,  it is unclear what the future of cannabis will be in the City of San Bernardino.

Contact us to learn more about California state or local cannabis regulations, cannabis regulatory compliance, and cannabis litigation.