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Cannabis Regulatory Ordinances
On November 4, 2014, City of Shasta Lake residents overwhelmingly approved Measure C (73.18%) which imposed a 6 to 10 percent gross receipts tax on marijuana collectives/cooperatives operating within the City. The gross receipts tax does not apply to marijuana activities outside of a collective/cooperative such as commercial cultivation and manufacturing.

With the passage of the Medical Cannabis Regulatory Safety Act (MCRSA) legislation early in 2015, and now the Adult Use of Marijuana Act (AUMA) on November 8, 2016, there will be a number of areas concerning regulation and licensing of activities under each of the acts.  A majority of City of Shasta Lake voters passed Prop 64 Yes: 54.25% to No: 45.75%.  Since the City has allowed medical marijuana collectives/cooperatives, some cannabis regulations are currently in place.  To assist with complying with the passage of the new laws and regulations, the City retained SCI Consulting Group on December 20, 2016 to help in the development of a final comprehensive regulatory ordinance(s), cannabis tax measure (ballot initiative), and development of regulatory fees for cannabis monitoring and compliance.

On January 23, 2017, SCI Consulting Group held a Cannabis Stakeholders and Experts Group (CSEG) meeting. The CSEG included representatives from the community and the industry to discuss concerns and goals moving forward.  Below is the regulatory framework Cannabis activity in the City of Shasta Lake.

Ordinance Regulate the establishment, operation, cultivation, manufacturing, sale, testing and distribution of commercial cannabis
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ORDINANCE CC-17-259

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE AMENDING TITLE 5 OF THE CITY OF SHASTA LAKE MUNICIPAL CODE BY ADDING CHAPTER 5.05 TO REGULATE THE ESTABLISHMENT, OPERATION, CULTIVATION, MANUFACTURING, SALE, TESTING AND DISTRIBUTION OF COMMERCIAL CANNABIS



Regular Council Meeting - April 18, 2017 (Staff Report)
First reading of a Regulatory Ordinance amending Title 5 by adding Chapter 5.05 to the City of Shasta Lake Municipal Code to regulate the establishment, operation, cultivation, manufacturing, sale, testing and distribution of commercial cannabis.
City Council Moves Approval 4-0 (Watkins absent)

Regular Council Meeting - May 2, 2017 (Staff Report)
Second reading of a Regulatory Ordinance amending Title 5 by adding Chapter 5.05 to the City of Shasta Lake Municipal Code to regulate the establishment, operation, cultivation, manufacturing, sale, testing and distribution of commercial cannabis.
City Council Moves Approval 5-0 
Note: After a second reading, it takes 30 days to be in effect

Land Use Ordinance to Regulate the Establishment, Operation, Cultivation, Manufacturing, Testing, and Distribution of Cannabis
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ORDINANCE CC-17-258

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SHASTA LAKE AMENDING THE CITY OF SHASTA LAKE MUNICIPAL CODE TO ADD CHAPTER 17.10 TO ESTABLISH ZONING FOR THE CULTIVATION, DISTRIBUTION ,DISPENSARY, MANUFACTURING, NURSERY, TESTING AND TRANSPORT OF COMMERCIAL CANNABIS WITHIN THE CITY OF SHASTA LAKE



Special Planning Commission Meeting - March 30, 2017 (Staff Report)
Z-17-01: Proposed Amendments to Shasta Lake Municipal Code Title 17
(Zoning) Review of an Ordinance of the City of Shasta Lake amending City’s Municipal Code to regulate the establishment, cultivation, dispensary operation, distribution, manufacturing, sale, and testing of commercial cannabis as land uses.

This Amendment is to the Zoning Ordinance only and identifies where such land uses are allowed and not allowed as well as areas where a Conditional Use Permit is required.
Planning Commission Passed 7-0 03/30/2017

Regular Council Meeting - April 18, 2017 (Staff Report)
First reading of a Regulatory Ordinance amending Title 17 (Zoning) by adding Chapter 17.10 to the City of Shasta Lake Municipal Code to regulate the establishment, operation, cultivation, manufacturing, sale, testing and distribution of commercial cannabis.
City Council Moves Approval 4-0 (Watkins absent)

Regular Council Meeting - May 2, 2017 (Staff Report)
Second reading of a Regulatory Ordinance amending Title 17 (Zoning) by adding Chapter 17.10 to the City of Shasta Lake Municipal Code to regulate the establishment, operation, cultivation, manufacturing, sale, testing and distribution of commercial cannabis.
City Council Moves Approval 5-0 
Note: After a second reading, it takes 30 days to be in effect


Residential Cannabis Cultivation Regulations
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Residential Cannabis Cultivation Regulations

Shasta Lake Municipal Code Chapter 17.83 provides regulations for medical marijuana cultivation within the city limits.  The Chapter includes regulations for location, size, screening and security measures to accommodate the needs of qualified patients and their caregivers.



Proposed Commercial Cannabis Business Tax Ordinance
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proposed ordinance, will or will not be 
enacted by voters

ORDINANCE NO. CC-17-

AN ORDINANCE OF THE PEOPLE OF THE CITY OF SHASTA LAKE, CALIFORNIA, REPLACING CHAPTER 3.17 OF THE CITY OF SHASTA LAKE MUNICIPAL CODE, AND APPROVING AND IMPLEMENTING A COMMERCIAL CANNABIS BUSINESS TAX



With the City’s ongoing development of a comprehensive regulatory ordinance, a new tax ordinance is being proposed that would replace Measure C and apply a tax on all commercial cannabis businesses. 


Shasta County does not have regularly scheduled general election until November 2018. In order to place this measure on the ballot, the City must call for a special election on August 29, 2017. Waiting to call an election until the next regularly scheduled general election, would forego the opportunity to devote a projected range of $200,000 to $400,000 in first-year revenues to local law enforcement and safety of the public in the interim.   

The proposed special tax measure, requiring 2/3 approval by the voters, would place the following taxes on commercial cannabis activities:

City Council Regular Meeting 03/21/2017 (Video & Staff Report)
Resolution calling for a Special Election and a Measure to adopt an Ordinance imposing a Special Tax for Local Law Enforcement Funding.  Resolution for approval of a supplemental appropriation.
Passed 5-0 03/21/2017

City Council Regular Meeting 04/18/2017 (Staff Report)
Action to revise Section 5 of Resolution CC-17- 23 calling for a special municipal
election to be held on Tuesday, August 29, 2017 to present to the voters the
Ordinance replacing Chapter 3.17 to the Municipal Code, to impose a special tax
on commercial cannabis businesses to fund local law enforcement/code
enforcement.
City Council Moves Approval 4-0 (Watkins absent)

City Council Regular Meeting 05/02/2017 (Staff Report)
Discussion and possible action on a Resolution authorizing the Mayor, Vice
Mayor, and City Manager, or any combination thereof, to prepare, sign, and submit, on behalf of the City Council, a written argument in support of the Commercial Cannabis Business Tax Measure and a written rebuttal to any argument against the Measure. 
City Council Moves Approval 5-0 


City of Shasta Lake • 1650 Stanton Drive • Shasta Lake, CA 96019 • Phone: 530-275-7400 • Fax: 530-275-7414 "Equal Opportunity Provider, and Employer"
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