February 25, 2019Section 26200.1 is added to the Business and Professions Code, to read:
26200.1. (a) (1) Except as provided in subdivision (d), a local jurisdiction shall comply with the requirements of this subdivision if more than 50 percent of the electorate of that local jurisdiction, as determined using election data from the Secretary... Read more
February 25, 2019Section 26200.1 is added to the Business and Professions Code, to read:
26200.1. (a) (1) Except as provided in subdivision (d), a local jurisdiction shall comply with the requirements of this subdivision if more than 50 percent of the electorate of that local jurisdiction, as determined using election data from the Secretary of State, voted in favor of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016, an initiative measure enacted as Proposition 64 at the November 8, 2016, statewide general election.
(2) A local jurisdiction described in paragraph (1) shall issue a minimum number of local licenses that authorize medicinal retail cannabis commercial activity, or a combination of medicinal retail cannabis commercial activity and adult-use retail cannabis commercial activity, within the jurisdiction that would be permitted by a retailer license described in Section 26070, as determined by paragraph (3). A local jurisdiction may impose a fee on licensees to cover the regulatory costs of issuing those local licenses.
(3) (A) Except as provided in subparagraph (C), the minimum number of local licenses for retail cannabis commercial activity that a local jurisdiction is required to issue pursuant to paragraph (2) is one-sixth of the number of on-sale general license types for alcoholic beverage sales that are currently active in that jurisdiction, as determined pursuant to subparagraph (B).
(B) (i) (I) If the local jurisdiction is a city, the number of on-sale general licenses for alcoholic beverages shall be determined by adding all of the currently active licenses issued in the jurisdiction that are of a license type listed in subclause (II). If the local jurisdiction is a county, the number of on-sale general licenses for alcoholic beverages shall be determined by adding all of the currently active licenses issued in the unincorporated regions of the county that are of a license type listed in subclause (II).
(II) For purposes of subclause (I), the following on-sale general license types shall be counted: Types 47, 47D, 48, 48D, 57, 57D, 68, 70, 71, 71D, 75, 75D, 78, and 78D.
(ii) The number determined in clause (i) shall be divided by six and rounded up to the nearest whole number using generally accepted mathematical rounding practices.
(iii) If the number of local licenses for retail commercial cannabis determined in clause (ii) would result in a ratio equal to, or fewer than, one local license for retail cannabis commercial activity for every 15,000 residents of the local jurisdiction, the number determined in clause (ii) shall be the minimum number of local licenses the jurisdiction is required to issue pursuant to paragraph (2).
(C) Notwithstanding subparagraphs (A) and (B), if the number of local licenses for retail commercial cannabis determined in clause (ii) of subparagraph (B) would result in a ratio greater than one local license for retail cannabis commercial activity for every 15,000 residents of the local jurisdiction, the minimum number of local licenses that the local jurisdiction is required to issue pursuant to paragraph (2) shall be determined by dividing the number of residents in the local jurisdiction by 15,000 and rounding down to the nearest whole number.
(b) Notwithstanding subdivision (a), a local jurisdiction described in paragraph (1) of subdivision (a) that wants to establish a lower amount of local licenses for retail cannabis commercial activity than required by subdivision (a) shall do all of the following:
(1) Create a local ordinance or other local law that clearly specifies the level of participation in the retail commercial cannabis market the local jurisdiction will allow.
(2) Submit that ordinance or other local law to the electorate of that local jurisdiction at the next regularly scheduled local election following the operative date of this section.
(3) If the ordinance or other local law is approved by more than 50 percent of the electorate of that local jurisdiction voting on the issue, then the new ordinance or other local law shall become effective in that local jurisdiction.
(c) If a local jurisdiction described in paragraph (1) of subdivision (a) does not submit a local ordinance or other local law to the electorate as described in subdivision (b), or that local ordinance or other local law fails to receive more than 50 percent of the approval of the electorate of that local jurisdiction voting on the issue as described in subdivision (b), then the local jurisdiction shall have 120 days after the next regularly scheduled local election following the operative date of this section to issue local licenses in compliance with subdivision (a).
(d) A local jurisdiction is exempt from this section if either of the following applies:
(1) On or after January 1, 2017, and until January 1, 2020, the local jurisdiction submitted to the electorate of the local jurisdiction a local ordinance or resolution that authorizes retail cannabis commercial activity, and a majority of the electorate voted not to approve the local ordinance or resolution.
(2) On or after January 1, 2017, and until January 1, 2020, the local jurisdiction submitted to the electorate of the local jurisdiction a local ordinance or resolution that prohibits retail cannabis commercial activity, and a majority of the electorate voted to approve the local ordinance or resolution.
(e) For purposes of this section, all of the following shall apply:
(1) “Electorate of a county” means the electorate of the unincorporated area of the county.
(2) “Local jurisdiction” means a city, county, or a city and a county.
(3) “Local license” means any license, permit, or other authorization from the local jurisdiction.
(f) This section shall not be construed to require a local jurisdiction to authorize adult-use retail cannabis commercial activity.
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