I. RECOMMENDATION:
Receive and discuss the presentation regarding the proposed comprehensive overhaul of the City’s cannabis ordinances, and provide policy direction to staff on any desired changes, priorities, or concerns prior to preparing a final repeal-and-replace ordinance for formal consideration.
II. BACKGROUND:
The City of Coalinga currently regulates commercial cannabis activities through multiple ordinances and sections of the Municipal Code that were adopted incrementally over time. As State cannabis laws, regulatory agencies, and industry practices have evolved, portions of the City’s code have become duplicative, outdated, or internally inconsistent.
To address these issues, the City engaged SCI Consulting Group to review the existing regulatory framework and prepare a consolidated, modernized ordinance structure that improves clarity, enforceability, and administrative efficiency while preserving local control over cannabis operations.
III. DISCUSSION:
Overview of Proposed Changes
The proposed update would repeal and replace the City’s existing cannabis ordinances with a single, consolidated ordinance governing all commercial cannabis activities. Key objectives include:
- Creating one unified ordinance applicable to all license types
- Harmonizing and clarifying definitions
- Removing outdated references to superseded State laws and agencies
- Streamlining permitting, enforcement, and compliance procedures
- Establishing a clean foundation for future policy decisions
Major Structural Changes
The proposal replaces the current dual-ordinance structure with one comprehensive ordinance, consolidating application procedures, permit requirements, renewals, enforcement provisions, and employee permitting into a single regulatory framework. This approach is intended to reduce redundancy, confusion, and administrative burden for both staff and operators.
The ordinance is reorganized into a streamlined four-part structure:
- Application and Permit Procedures – Unified processes for conditional use permits, regulatory permits, renewals, denials, and suspensions.
- General Operational Requirements – Standard operating rules applicable to all license types (hours, signage, minors, odor control, nuisance prevention, environmental compliance, and recordkeeping).
- Security Requirements – Modernized and standardized security standards, including camera systems, access control, alarms, lighting, monitoring, retention, and backup power.
- Activity-Specific Requirements – Distinct sections for retail, lounges, manufacturing, distribution, cultivation/nursery, and microbusiness operations.
Removal of Duplicative State Requirements
The proposed ordinance intentionally removes provisions that merely restate State law or reference outdated regulatory bodies (e.g., former State agencies or repealed statutes). This approach allows the City’s code to focus on local land use, operational, and enforcement standards, while avoiding conflicts with future changes in State cannabis regulations.
Benefits to the City
If implemented, the proposed overhaul is expected to:
- Reduce staff workload and administrative complexity
- Improve code clarity and enforceability
- Provide clearer, more predictable requirements for operators
- Support consistent inspections and compliance efforts
- Reduce interpretation disputes and processing delays
IV. ALTERNATIVES:
- Provide direction to modify the proposed framework before proceeding.
- Direct staff to maintain the existing ordinance structure with targeted amendments instead of a full repeal-and-replace.
- Take no action at this time.
V. FISCAL IMPACT:
The fiscal impact as part of this action is part of the existing work order the City has executed with SCI to undertake this effort. | | |