Cannabis (Marijuana) Regulations

2022 Commercial Cannabis Non-Storefront Retail Business RFP In June 2022, the City issued a Request for Proposals (RFP) for allowable non-storefront retail (delivery only) commercial cannabis businesses seeking a permit to operate in the City. The City has an unlimited number of non-storefront retail (delivery) licenses available, and will accept proposals on a rolling basis. No proposals for cultivation, testing, distribution, manufacturing, or microbusinesses will be accepted at this time. The City does not allow storefront retail sales of cannabis. Click here to view the RFP. Results of 2021-22 Commercial Cannabis RFP In December 2021, the City issued a Request for Proposal (RFP) for allowable commercial cannabis businesses seeking a permit to operate in the City. A committee of City and local public agency staff representing Community Development, Building, Fire, Police, Code Enforcement, Planning, Water and Sanitation reviewed and graded the applications according to the evaluation and scoring criteria established in the RFP. All proposals that achieved a minimum score of 80% were presented to the City Council for consideration of a Conditional Certificate to operate. At their regular meeting of March 8, 2022, the Council gave conditional approval to three businesses: Marin Haven, 4 Commercial Boulevard (Non-storefront retail) CB Labs, 1615 Hill Road, #9-10 (Testing laboratory) Velvet Fog, 11 Digital Drive, Suite D (Microbusiness – Manufacturing/Distribution/Delivery) - Updated their 2020 approvals for new location These applicants are now in the process of securing their State licenses, completing any necessary building improvements and meeting other conditions of their approvals. Staff Report Proposal Summaries Presentation Updates to Zoning Requirements Please note that zoning requirements for cannabis businesses were amended on November 16, 2021 to require minimum distancing from potentially sensitive residential properties and youth-oriented facilities. Full amendments and changes can be viewed here.

2022 Commercial Cannabis Non-Storefront Retail Business RFP

In June 2022, the City issued a Request for Proposals (RFP) for allowable non-storefront retail (delivery only) commercial cannabis businesses seeking a permit to operate in the City. The City has an unlimited number of non-storefront retail (delivery) licenses available, and will accept proposals on a rolling basis. No proposals for cultivation, testing, distribution, manufacturing, or microbusinesses will be accepted at this time. The City does not allow storefront retail sales of cannabis. Click here to view the RFP.

Results of 2021-22 Commercial Cannabis RFP

In December 2021, the City issued a Request for Proposal (RFP) for allowable commercial cannabis businesses seeking a permit to operate in the City.

A committee of City and local public agency staff representing Community Development, Building, Fire, Police, Code Enforcement, Planning, Water and Sanitation reviewed and graded the applications according to the evaluation and scoring criteria established in the RFP. All proposals that achieved a minimum score of 80% were presented to the City Council for consideration of a Conditional Certificate to operate.

At their regular meeting of March 8, 2022, the Council gave conditional approval to three businesses:

Marin Haven, 4 Commercial Boulevard (Non-storefront retail)
CB Labs, 1615 Hill Road, #9-10 (Testing laboratory)
Velvet Fog, 11 Digital Drive, Suite D (Microbusiness – Manufacturing/Distribution/Delivery) - Updated their 2020 approvals for new location

These applicants are now in the process of securing their State licenses, completing any necessary building improvements and meeting other conditions of their approvals.

Staff Report
Proposal Summaries
Presentation

Updates to Zoning Requirements

Please note that zoning requirements for cannabis businesses were amended on November 16, 2021 to require minimum distancing from potentially sensitive residential properties and youth-oriented facilities. Full amendments and changes can be viewed here.

Overview

Proposition 64 legalized the use of cannabis for both medicinal and non-medicinal use in California. As of January 1, 2018, all non-medicinal cannabis businesses must have a state license to operate, however a state license may not be issued to businesses which violate the provisions of any local ordinance or regulation. Cities may enact local laws or regulations pertaining to cannabis cultivation, dispensing, manufacturing, distribution, transportation and testing within its jurisdiction.

Commercial Cannabis

The City Council adopted Resolution 2019-069 on October 22, 2019 regarding the process for evaluating applications, issuing commercial cannabis licenses and establishing certain operation parameters for commercial business activities. The Council formally adopted a commercial cannabis Licensing Ordinance and Zoning Ordinance on November 12, 2019.

Personal Cultivation of Cannabis

At its meeting of October 2, 2018, the Novato City Council adopted regulations for the personal cultivation of cannabis within city limits.

The Council authorized indoor cultivation of up to six (6) plants per residential property, regardless of the number of occupants. Indoor cultivation is allowed both within a residence and also within a “Fully Enclosed and Secure Accessory Structure,” which is a detached accessory building that has a roof, a foundation, solid walls which are not transparent or breakable. These might include an accessory art studio, office or pool cabana, but not a greenhouse.

The Personal Cultivation Ordinance approved by the City Council contains several restrictions including:

• Plants cannot be visible from the street or adjoining properties at ground level
• The cultivation area may not be accessible by minors
• Any building modifications, including electrical or structural changes, must have approved building permits
• Grow lights cannot exceed 1,200 watts per fixture
• A ventilation and filtration system is required for odor control
• The use of generators is prohibited
• Renters must obtain written authorization from the property owner(s) to cultivate

Note: The City Council did not authorize outdoor cultivation (either open air—such as a yard or garden, or within non-secure and enclosed accessory structures such as greenhouses or hoop structures) within City limits for personal use.

Background

The passing of Proposition 64 legalized the use of both medicinal and non-medicinal cannabis consumption and sales for adult-use. In response to Prop. 64, the City of Novato adopted a moratorium (Ordinance No. 1629 & Ordinance No. 1633) that prohibited all outdoor and indoor cultivation of cannabis, excluding the exception under Prop. 64 that permits the cultivation of six (6) plants indoors for personal use (subject to the property owners permission). Additionally under these ordinances, the City provides an exception to the moratorium for CB Labs, Liposome Formulations, and deliveries of medicinal cannabis from out-of-city businesses.

The moratorium was scheduled to expire November 15, 2018. Prior to the expiration of the moratorium, City staff conducted a series of community workshops to provide an overview of the cannabis industry, discuss current laws and regulations, explain the roles of code enforcement and law enforcement, respond to community questions and feedback, and get community feedback to identify key issues and concerns. See the Community Meetings & Workshops section on this page for meeting topics, dates, times, locations, and recordings.

History

Status as of November 12, 2019: The City Council adopted the Licensing Ordinance and Zoning Ordinance, which will go into effect on December 12, 2019.

Status as of October 22, 2019: The City Council discussed final policy decisions and introduced commercial cannabis ordinances at their meeting of October 22, 2019. They adopted Resolution 2019-069 regarding the process for evaluating applications, issuing commercial cannabis licenses and establishing certain operation parameters for commercial business activities. The October 22, 2019 staff report , video and meeting minutes are available online. The ordinances will be formally adopted on November 12, 2019.

Status as of October 11, 2019: The City Council is scheduled to hold a public hearing on Tuesday, October 22, 2019, at 6:00pm in the Novato City Hall Council Chambers, to consider adopting an ordinance to amend Novato Municipal Code Chapters 8 and 19 to establish regulations for licensing and permitting of commercial cannabis activities in the City.

Status as of September 23, 2019: The Planning Commission conducted a public hearing on September 23, 2019, to consider providing a recommendation to the City Council regarding the proposed commercial cannabis licensing and permitting ordinance and CEQA exemptions. The Planning Commission voted unanimously to recommend the City Council: a) find the proposed cannabis ordinance to be exempt from CEQA; and b) adopt the requested cannabis ordinance with modifications.

Status as of May 20, 2019: At their May 14, 2019 meeting, the City Council held a Cannabis Community Workshop to receive public comment and discuss the option to tax cannabis businesses. Council provided feedback to staff.

Tuesday, May 14, 2019 at 6pm
Community Workshop
At the workshop, the Novato City Council will review, discuss, and receive community feedback on a draft cannabis tax proposal to potentially be placed on the November 2019 ballot. The purpose of this workshop is solely to discuss the Option to Tax Cannabis businesses. Zoning, Business Types, Permitting, Application Process, and other Regulatory Ordinance topics will not be discussed. These topics will be discussed in future meetings.

Status as of May 7, 2019: On Monday, May 6, 2019 at 7pm, the Planning Commission held a Commercial Cannabis Land Use and Taxing Community Workshop to review draft proposals to regulate and tax commercial cannabis facilities in the city.

At the workshop, staff presented details of a draft ordinance which will regulate the size, number and locations of commercial cannabis activities. Additionally, details of a proposed cannabis business tax to potentially be placed on the November 2019 ballot were discussed.