HomeMy WebLinkAbout- Item 1 - Attachment 1 - 3/10/2015ORDINANCE NO. XX -XX
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
COSTA MESA ADDING CHAPTER VI (MEDICAL
MARIJUANA DISPENSARIES AND CULTIVATION) TO TITLE
9 (LICENSES AND BUSINESS REGULATIONS) OF THE
COSTA MESA MUNICIPAL CODE, REPEALING AND
REPLACING SECTION 13-16 (ENFORCEMENT) OF ARTICLE
4 (ENFORCEMENT) OF CHAPTER I (GENERAL) OF TITLE
13 (PLANNING, ZONING AND DEVELOPMENT), AND
REPEALING AND REPLACING LINE 31A OF TABLE 13-30
(CITY OF COSTA MESA LAND USE MATRIX) OF CHAPTER
IV (CITYWIDE LANDUSE MATRIX) OF TITLE 13 (PLANNING,
ZONING AND DEVELOPMENT), RELATING TO THE
REGULATION OF MEDICAL MARIJUANA DISPENSARIES
AND CULTIVATION.
WHEREAS, in 1996 the California voters approved Proposition 215 (known as
the Compassionate Use Act (the "CUA") and codified as Health and Safety Code
Section 11362.5, et seq.) to exempt certain patients and their primary caregivers from
criminal liability under state law for the po e n 57%lultivation of marijuana for
medical purposes; and
WHEREAS, in 2003 the Califor 'a legi ure enacted Senate Bill 420 (known as
the Medical Marijuana Program Act (the "MMPA") and codified as Health and Safety
Code Section 11362.7 et seq.), as later amended, to clarify the scope of the
Compassionate Use Act relating to the possession and cultivation of marijuana for
medical purpose, and to authorize local governing bodies to adopt and enforce laws
consistent with its provisions; and
WHEREAS, in 2005 the California Board of Equalization began issuing seller's
permits for sales consisting only of medical marijuana; and
WHEREAS, in 2008 the California Attorney General issued guidelines for the
security and non -diversion of marijuana grown for medical use; and
Ordinance No. XX -XX Page 1
WHEREAS, in 2014 the U.S. House of Representatives voted to stop federal law
enforcement from interfering with medical marijuana operations in the various states
which have decriminalized and/or authorized such operations; and
WHEREAS, Health & Safety Code Section 11362.83 provides that cities are free
to adopt and enforce local ordinances that regulate the location, operation, or
establishment of medical marijuana dispensaries and cultivation; and
WHEREAS, the City Council of the City of Costa Pisa i nds that nothing in
this Ordinance shall be deemed to conflict with federal law as contained in the
Controlled Substances Act, nor to otherwise permit any activity that is prohibited under
that Act or other applicable law; and
WHEREAS, the City Council of the City of Costa Mesa intends that nothing in
this Ordinance shall be construed to allow to engage in conduct that endangers
others or causes a public nuisance, allow e u na for non-medical
purposes, or allow a"ei'l
ating to t ultivatio istribution or consumption of
marijuana that is oand
of medi
medicalflarijuana dispensaries and the cultivation
of Costa Mesa presently remain prohibited; and
WHEREAVtnegative
ouncil of the City of Costa Mesa finds that medical
marijuana operatitivation require careful consideration as well as the
regulation of the I manner in which dispensaries operate and cultivation
occurs so as to pimpacts on nearby residents and businesses; and
WHEREAS, the City Council of the City of Costa Mesa finds that the City of
Costa Mesa has a compelling interest in protecting the public health, safety and welfare
of its residents and businesses by regulating the location and operation of medical
marijuana dispensaries and medical marijuana cultivation, in preserving the peace and
Ordinance No. XX -XX Page 2
quiet of the neighborhoods in which medical marijuana dispensaries operate and
medical marijuana is cultivated, and in providing compassionate access to medical
marijuana to its seriously ill residents; and
WHEREAS, the California Constitution grants local governments in Article XI,
Section 7 the authority under their police powers to regulate land use; and
WHEREAS, the proposed ordinance has been reviewed by City staff in
accordance with the Environmental Checklist Form (Appendix G of the CEQA
Guidelines) to determine if there would be any possibility that the proposed ordinance
would have the possibility of creating any environmental impacts, and City staff has
determined that the establishment of regulations for medical marijuana businesses does
not meet any of the thresholds contained in the Checklist that would trigger an
environmental impact, and thus according to the "general rule exemption" (Section
15061(b)(3)) of the CEQA Guidelines, projects which have no potential for causing a
significant effect on the environment are not subject to CEQA, no further environmental
analysis is required, and a notice of exemption will be filed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter VI (Medical Marijuana Dispensaries and Cultivation) of Title 9 (of
the Costa Mesa Municipal Code is hereby added as follows:
CHAPTER VI. MEDICAL MARIJUANA DISPENSARIES AND CULTIVATION
Sec. 9-491. Purpose
The purpose of this chapter is to establish a comprehensive set of regulations with
attendant regulatory permits applicable to the operation of medical marijuana
dispensaries, as well as the cultivation of medical marijuana and the management and
Ordinance No. XX -XX Page 3
ownership of a medical marijuana business. The regulations are intended to ensure
such operations and cultivation are consistent with the overall health, welfare and safety
of the city and its populace, and that such operations are in compliance with California's
Compassionate Use Act of 1996 as well as California's Medical Marijuana Program Act
of 2003.
The chapter is not intended to permit activities that are otherwise illegal under federal,
state or local law. This chapter is not intended to conflict with federal or state law.
Sec. 9-492. Operation Prohibited Without Permit
It shall be unlawful to own, establish, operate, uper a establishment or
operation of a medical marijuana business, or to pa to as an employee, contractor,
agent, volunteer, or in any manner or cap city other than as provided in this chapter.
The general prohibition contained in the s hall include renting, leasing, or
otherwise permitting a medical marijuan usi occupy or use a location, vehicle,
or other mode of transportation.
Sec. 9-493. Definitio
The following define hall to this chapter unless the context clearly denotes
otherwise. •
a) "
li
rson who is required to file an application for a permit or a
ter.
b) "Attending physician" has the same definition as set forth in Health and Safety
Code section 11362.7.
c) "Attorney General Guidelines" shall refer to the California Attorney General
Guidelines for the Security and Non -diversion of Marijuana Grown for Medical
Ordinance No. XX -XX Page 4
Use, issued by the Attorney General's Office in August, 2008, as amended from
time to time, which sets regulations intended to ensure the security and non -
diversion of marijuana grown for medical use by qualified patients or primary
caregivers.
d) "City CEO" has the same meaning as "city manager" in Section 2-97 of this code
and shall include his or her designee.
e) "Cultivation" means the growing of medical mA edical purposes as
defined in strict accordance with Health and Safety Code sections 11362.5 and
11362.7 et seq.
f) "Cultivator" means a person who engages in the cultivation of medical marijuana.
g) "Delivery" means the act of taking something to a person or place.
h) "Dispense" means the selection, measuring, packaging, labeling, delivery, or
distribution or sale of medical marijuana to a qualified patient or a primary
caregiver.
i) " ible" has same definition as "food" as set forth in Health and Safety Code
seoQ,on 109935.
j) "EmploVreices
y person (whether paid or unpaid) who provides regular
labor ofor a medical marijuana business, including but not
limited n of a medical marijuana business.
k) "Identification card" has the same definition as set forth in Health and Safety
Code section 11362.7, and as may be amended, and which provides that
"Identification card" means a document issued by the State Department of Health
Services that document identifies a person authorized to engage in the medical
Ordinance No. XX -XX Page 5
use of marijuana and the person's designated primary caregiver, if any.
1) "Labeling" means all labels and other written, printed, or graphic matter (a) upon
any marijuana intended for medical use, or (b) accompanying such marijuana
intended for medical use.
m) "Location" means any parcel of land, whether vacant or occupied by a building,
group of buildings, or accessory buildings, and incuildings, structures,
yards, open spaces, lot width, and lot area.
n) "Lighting" means the act of illuminating ell as a effect achieved by the
arrangement of lights.
o) "Live scan" means a system for inkless electronic fingerprinting and the
automated background check developed by the California Department of Justice
(DOJ) which involves digitizing fingerprints and electronically transmitting the
fingerprint imag along with personal descriptor information to computers at
the DOJ for letion criminal record check; or such other comparable
inkless electron er n and automated background check process as
determined by the city council.
p) "Manager" means an employee responsible for management and/or supervision
of a medical marijuana business.
q) "Marijuana" has the same definition as set forth in Health and Safety Code
section 11018, and as may be amended.
r) "Medical marijuana" means marijuana used for medical purposes in accordance
with the Compassionate Use Act (Health and Safety Code section 11362.5) and
the Medical Marijuana Program Act (Health and Safety Code sections 11362.7 et
seq.).
Ordinance No. XX -XX Page 6
s) "Medical marijuana business" means a medical marijuana dispensary and/or a
medical marijuana cultivation site.
t) "Medical marijuana cultivation site" means a location where the cultivation of
medical marijuana occurs.
u) "Medical marijuana dispensary" has the same mea Section 13-6 of the
Costa Mesa Municipal Code.
v) "Member" means either a qualified patien , a persQ ith an iden io card, or
a primary caregiver.
w"Non-profit" means to use surplus revenue to achieve the goals of an
organization rather than distributing surplus revenue as profit or dividends.
-7_)aa "Pe
of a medical marijuana dispensary and/or a
the various regulatory licenses issued pursuant to this
not limited to a license for a medical marijuana business.
means any natural person, firm, corporation, partnership, club, or
any association or combination of natural persons, whether acting by themselves
or through any servant, agent or employee.
aa -)bb "Person with an identification card" has the same definition as set forth in
Health and Safety Code section 11362.7, and as may be amended, and which
Ordinance No. XX -XX Page 7
provides that "Person with an identification card" means an individual who is a
qualified patient who has applied for and received a valid identification card
pursuant to this article [being Article 2.5 of Chapter 6 of Division 10 of the Health
and Safety Code].
bb)cc "Physician's referral" means a written recommendation for a patient from a
licensed medical doctor indicating that marijuana would be a beneficial treatment
for a serious medical condition of the patient.
es)d�)_ "Police Department" means the Police Department of the City of Costa
Mesa.
dd)ee "Primary caregiver" has the same definition as set forth in Health and
Safety Code section 11362.7(d), (e), and as may be amended.
ee)ff�"Qualified Patient" has the same definition as set forth in Health and
Safety Code section 11362.7(f). l
ff)gg) "Reason Cor�sation" me compensation commensurate with
to'oTARWI� employees of other not-for-profit
m ilar job descriptions and duties, required level of
and a ice, r individual earnings history, and number of hours
gg)hh "Serious Medical Condition" has the same definition as set forth in Health
and Safety Code section 11362.7(h), and as may be amended.
i Comment [Issuel]:
Sec. 9-494. (Medical Marijuana Dispensary Permitl_ Limit the number ofpermits?
Or, will simply limited zoning and location
restrictions provide for enough limits on the
Prior to initiating operations as a medical marijuana dispensary and as a continuing maximum numbers of permits which can be issued?
requisite to conducting operations, the owner of a medical marijuana dispensary shall Or, no cap on permits and allow the market to decide
how many permits will be issued?
Ordinance No. XX -XX Page 8
obtain a regulatory permit from the CitT CEO or his/her designee under the terms and comment [Issuez]:
conditions set forth in this chapter. A medical marijuana dispensary permit is valid for Need to determine selection process for issuance of
permits. Should there be a lottery' A pre-screening"
one year from the date of issuance. Conditions necessary for the continuing validity of Some combination erthetwo?
any and all regulatory permits issued for the operation of a medical marijuana
dispensary include:
a) Strict adherence to each and every requirement of this ter.
b) Allowing the City CEO or his/her designee and t otic partment to conduct
reasonable inspections of the location of tha marijuana business at the
discretion of the city, including but not li ed to inVection of security, inventory,
and written records and files pertaining tollLmed' arijuana business, for the
purposes of ensuring compliance with local a ate law.
c) Maintaining with the city currentcontact information of the owner(s) of
the medical marijuana dispensary.
d) Maintaining the cit rrent and valid contact information of a legal
representative m I marijuana dispensary.
e)nsferable if transferee successfully completes all of the requirements that
N9-495.1
would otherwise need to meet.
Secari' na Cultivation Permit
Prior to initiating operations as a medical marijuana cultivator and as a continuing
requisite to conducting operations, the persons intending to cultivate medical marijuana
shall obtain a regulatory permit from the City CEO or his/her designee under the terms
and conditions set forth in this Section. A medical mariivana cultivation permit is valid
for one year from the date of issuance. Conditions necessary for the continuing validity
Ordinance No. XX -XX Page 9
of any and all regulatory permits issued for the operation of a medical marijuana
cultivation site include:
a) Strict adherence to each and every requirement of this chapter.
b) Allowing the City CEO or his/her designee, as well as the Police Department, to
conduct reasonable inspections of the location of the medical marijuana business
at the discretion of the city, including but not limited to inspection of security,
inventory, and written records and files pertaining the medical marijuana
business, for the purposes of ensuring compliance with local and state law.
c) Maintaining with the city current and valid contact information of the owner(s) of
the medical marijuana cultivation site.
d) Maintaining with the city current and valid contact information of a legal
representative of the medical marijuana cultivation site.
e) Transferable only if transferee succes Ily completes all of the requirements that
a new applicant Id otherwise need t eet.
Sec. 9- Applic for ical Marijuana Dispensary and Cultivation
Per
The owner of a proposed ledical marijuana dispensary and/or a medical marijuana
cultivation site shall file an application with the City CEO or his/her designee upon a
form provided by the city and shall pay a filing fee as established by resolution adopted
by the city council as amended from time to time.
An application for a regulatory permit for a medical marijuana dispensary permit and/or
a medical marijuana cultivation permit shall include, but shall not be limited to, the
following information:
Ordinance No. XX -XX Page 10
a) Address of the location where the medical marijuana business will be located.
b) A site plan and floor plan of the premises denoting all the use of areas on the
premises of the medical marijuana business, including storage, cultivation areas,
exterior lighting, restrooms, and signage.
c) A security plan including the following measures:
Security cameras shall be installed nTained in condition, and
used in an on-going manner wit least 30 days of digita co ed
documentation in a format approv the Police Departure he
cameras shall be in use 24 hours per day, 7 days per week. The areas to
be covered by the security cameras include, but are not limited to, the
storage areas, cultivation areas, all doors and windows, and any other
areas as determined by the olic artment.
ii. The IAC
sin space/cultivation site shall be alarmed with acentrally-
monitored fi�an rglar alarm system, and monitored by an alarm
Nff
erly licensed by the State of California Department of
Coir eau of Security and Investigative Services in
acth Ca is Business &Professions Code section 7590 et
seq. and whose agents are properly licensed and registered under
appl' able la
iii. Entran to the dispensing area, cultivation site and any storage areas
shall be locked at all times, and under the control of employees with
current and valid employee permits.
iv. Interior Lighting. The premises within which the medical marijuana
business is operated shall be equipped with and, at all times during which
Ordinance No. XX -XX Page 11
is open to the public or any portion thereof, shall remain illuminated with
overhead lighting fixtures of sufficient intensity to illuminate every place to
which members of the public or portions thereof are permitted access with
an illumination of not less than two foot-candles as measured at the floor
level.
Exterior Lighting. The exterior of the premises upon which the medical
marijuana business is operated shall be equipped with and, at all times
between sunset and sunrise, shall remain illuminated with fixtures of
sufficient intensity and number to illu ,Very portion of the property
with an illumination level of not I than o foot-candle as measured at
the ground level, including, but no ed t dscaped areas, parking
lots, driveways, walkways, entry areas, refuse storage areas.
vi. All windows on the building that houses the dispensary and/or cultivation
site shall be appropriately secured and all marijuana securely stored, and
a reliable, commercial alarm system shall be installed and maintained.
d) The name Nana
ess of any person who is managing or responsible for the
medical musiness' activities.
e) The name and a,ss of the owner and lessor of the real property upon which
the medical mariju a business is to be conducted. In the event the applicant is
not theYbuess
the property, the application must be accompanied with a
notarizeement from the owner of the property that a medical
marijuaill be operated on his/her property.
f) Authorization for the City CEO or his/her designee to seek verification of the
information contained within the application.
g) Evidence that the medical marijuana business is organized as a bona fide non -
Ordinance No. XX -XX Page 12
profit cooperative, affiliation, association, or collective of persons comprised
exclusively and entirely of qualified patients and the primary caregivers of those
patients in strict accordance with California's Compassionate Use Act.
h) A statement in writing by the applicant that he or she certifies under penalty of
perjury that all the information contained in the application is true and correct.
i) Any such additional and further information as is deemed necessary by the City
CEO or his/her designee to administer this chapt�
Sec. 9-497. Obligation of Medical Marijuana Dispensary and/or Cultivation
Operation
The obligations of the medical marijuana dispensary and/or cultivator, including all on-
going and continuing obligations required pursuant to any provision of this chapter or as
may be provided in any conditional approval of the City CEO or his/her designee or the
city council, shall be set forth in a written agreement, approved as to form by the city
attorney, and enforceable by the
of a regulatory permit as provided in this chapter, the
nsary and/or cultivator shall:
a) Provide written authorization to the City CEO or his/her designee as well as the
Police Department, to conduct reasonable inspections of the location of the
medical marijuana business at the discretion of the city, including but not limited
to inspection of security, inventory, and written records and files pertaining to the
Ordinance No. XX -XX Page 13
medical marijuana business, for the purposes of ensuring compliance with local
and state law.
b) Execute an agreement indemnifying the city, its elected officials, employees,
agents, officers, and representatives, and each and all of them individually, from
all liability in connection with all claims, damages, attorney's fees, costs and
allegations arising from or in any way related to the operation of the medical
marijuana business.
c) Carry insurance in the amounts and of the types that are acceptable to the City
CEO or his/her designee, with minimal coverage provided of comprehensive
commercial general liability insurance and comprehensive automotive liability
insurance (if automobiles are used by the medical marijuana business for any
purpose) protecting the medical riju
than one million dollars ($1,000,
including bodily injury and propert ai
($1,000,000.00) aggregate for each
each accide uch insurance shall
employees, agV
tractors as
liability arisiroueratio
a business in an amount of not less
occurren combined single limit,
Ah.ss than one million dollars
mal injury liability, products liability and
e the city, its council members, officers,
itional insured as respects to any
medical marijuana business.
d) Agree to defend at its sole expense, any action against the city, its elected
officials, employees, agents, officers, and representatives, and each and all of
them individually, which arises from the application and/or use of this chapter by
an applicant.
e) Agree to reimburse the city for any court costs and attorney fees that the city may
be required to pay as a result of any action against the city, its elected officials,
employees, agents, officers, and representatives, and each and all of them
individually, which arises from the application and/or use of this chapter by an
applicants action. The city may, at its sole discretion, participate at its own
Ordinance No. XX -XX Page 14
expense in the defense of any such action.
Failure to perform the aforementioned actions shall render the operation of a medical
marijuana business unlawful.
Section 9-498. Medical Marijuana Business Operator Permit
A continuing condition for the operation of a medical mariiwna business is that all
An applicationla medical Imariivana business operator permit shall include. but may
a) Identification of the medical marijuana business which the applicant is seeking an
operator permit.
b) Provision of written live scan results for the applicant.
Ordinance No. XX -XX Page 15
c) Whether the applicant has been convicted within the last ten years of a Felony I Comment [Issue3]:
substantially related to the qualifications, functions or duties of an operator of a Should all felons bedisqualified for obtaining an
operator permit?
medical marijuana business (such as a felony conviction for distribution of
controlled substances, money laundering, racketeering, etc.) including whether
such operator has obtained a certificate of rehabilitation (expungement of felony
record) under California law or under a similar federal statute or state law where
the expungement was granted.
of the medical mariivana busiffgWoT which the%oolication is
being submitted.
n
Sec. 9-498500. Reviele��plicatioe
The City CEO or hi esig hall conduct a review of any applicant for any permit
authorized under this c r, an II prepare a report on the acceptability of the
application. Upon complet g the review process, the permit shall be deemed a qualified
application, u the Cit CEO or his/her designee finds:
a) The applicant has made one or more false or misleading statements, or
omissions on the application or during the application process; or
b) A proposed location for a medical marijuana business is not allowed by state or
local law, statue, ordinance, or regulation, including this code, at a particular
location; or
Ordinance No. XX -XX Page 16
c) The applicant for either a medical marijuana dispensary permit or a medical
marijuana cultivation permit is not a primary caregiver or qualified patient or the
legal representative of the medical marijuana business; or
d) The applicant or any person who is managing or is otherwise responsible for the
activities of the cooperative or collective has engaged i unlawful, fraudulent,
unfair, or deceptive business acts or practices; or
e) The applicant has not satisfied each and evequ rement of this chapter.
Based on the information set forth in the applica nd ity CEO or his/her
designee's review, the City CEO or his/her designee impose reasonable terms and
conditions on the use of the permit, (including the requirement of securing a conditional
1�
use permit for medical marijuana businesses, dditio_n t_o Ynsure
specified in this
chapter to ensure the safe operation of tlbusthe health, safety
and welfare of the citizens and visitors of
Sec. 9-495501. Actio?WApgfffiLtions for
This seiMn shall
of Cofra Mesa.
its
for all permits provided for in this
a) Upon receipt of a completed application and payment of the application and
license fees, the City CEO or his/her designee shall investigate the information
contained in the application to determine whether the applicant shall be issued
the requested permit.
b) If the City CEO or his/her designee determines that the applicant has completed
the application improperly, the City CEO or his/her designee shall notify the
applicant of such fact within thirty (30) days of receipt of the application. The
Ordinance No. XX -XX Page 17
Comment [Issue4]:
If this is included then the zoning code will also need
to be amended.
incomplete application upon return as incomplete shall be deemed abandoned.
The applicant may then resubmit a new application for a new review pursuant to
the requirements of this section.
c) Within sixty (60) days of receipt of the completed application, the City CEO or
his/her designee shall complete the investigation, grant or deny the application in
accordance with the provisions of this chapter, and so notify the applicant as
follows:
If the application is denied, the City CEO or his/her designee shall attach
to the application a statement of the reasons for denial.
If the application is granted, the City CEO or his/her designee shall attach
to the application the requested permit.
iii. The application as granted de permit, if any, shall be
placed in the United States first class postage prepaid, addressed to
the applicant at the address st d in the application.
d) The City CEO or his/her designee shall grant the application and issue the
requested permit upon findings that the proposed permit meets all of the
requirements of this chapter, unless the application is denied for one (1) or more
of the reasons set forth in section 9-500498.
e)If the City CEO or his/her designee neither grants nor denies a complete
application within sixty (60) days after it is received (except as provided in section
9-501499(b)), the application shall be forwarded to the city council at its next
regularly scheduled meeting for consideration in strict conformance with the
requirements of this chapter.
Sec. 9-502. Annual Permit Renewal
Ordinance No. XX -XX Page 18
a) Applications for the renewal of a permit shall be filed with the City CEO or his/her
designee between ninety (90) and sixty (60) calendar days before the expiration
of the current permit. Temporary permits will not be issued. Any permittee
allowing his or her permit to lapse or which permit expired during a suspension
shall be required to submit a new registration application and pay the
corresponding original application fees.
written application under penaltV of permurVuired for h the Citv CEO
or his/her designee who shall conduct aasonab investi ation as war anted
into whether the applicant has fully and completely complied with all provisions of
this chapter during use of the permit.
c The application shall be accom nnnr.-fi ind'VWfiling fee established
bV separate resolution of the CitVAVunc the cost of the
investigation re this article.
d Ana licant sh re uired to u date a information contained in his/her
ori i application and r an new and/or additional information as
nAv be reasonablv reauired by the Citv CEO in order to determine whether said
N9-5W500
e renewed.y
Seca7rating Standards and Restrictions
A medical marijuana business shall operate in conformance with the following minimum
standards, and such standards shall be deemed to be part of the conditions of approval
on the permit for a medical marijuana business to ensure that its operation is in
compliance with California law, the Attorney General Guidelines, and the Costa Mesa
Municipal Code, and to mitigate any potential adverse impacts of the medical marijuana
business on the public health, safety or welfare.
Ordinance No. XX -XX Page 19
a) Security.
One security guard who is licensed by the State of California shall be
present at the location of the medical marijuana business during all
business hours. The security guard shall only be engaged in activities
related to providing security for the medical marijuana business, except on
an incidental basis. Each security guard shall possess a "Security Guard
Card" at all times, and shall not possess fir(rms. The duties of the
security guard shall include but are not lihited to:
a. Ensuring no person smokes any substance within twenty feet (20')
of any building entrance, exit, window and air intake vent.
Monitoring of the o si a premise or loitering and unlawful
sale and/or distributi of na by members. Security
abbdirect report t e medical marijuana
lawful sales and/or distribution of medical marijuana
nd the medical marijuana business shall make a
Leport n twenty-four (24) hours to the Costa Mesa Chief of
Police.
rity camas shall be installed and maintained in good condition, and
Ain an o oing manner with at least 30 days of digitally recorded
doc on in a format approved by the City CEO or his/her designee.
The c eras shall be in use 24 hours per day, 7 days per week. The
areas to be covered by the security cameras include, but are not limited
to, the storage areas, cultivation areas, all doors and windows, and any
other areas as determined by the City CEO or his/her designee.
iii. The location of the medical marijuana business shall be alarmed with a
Ordinance No. XX -XX Page 20
centrally -monitored fire and burglar alarm system, and monitored by an
alarm company properly licensed by the State of California Department of
Consumer Affairs Bureau of Security and Investigative Services in
accordance with California Business & Professions Code section 7590 et
seq. and whose agents are properly licensed and registered under
applicable law.
iv. All entrances into the building housing a me al marijuana business shall
be locked from the exterior at all time wi ntry controlled by employees.
b) Authorizations.
L The City CEO or his/her designee shall have the right to enter the medical
marijuana dispensary and/or cultivation site from time to time
unannounced for the purpose of making reasonable inspections to
observe and enforce complianwith this chapter and all laws of the city
and State of California.
ii. Recordi s madeecurity ca as required pursuant to this chapter
made availa ity CEO or his/her designee or the Police
Depa t upon verbal request; no search warrant or subpoena shall be
needed to v' the recorded materials.
IN
c) Records.
i. Medical marijuana businesses shall maintain records reflecting:
a. The full name, address, and telephone number(s) of the owner
and/or lessee of the property.
b. The full name, address, and telephone number(s) of all employees.
Ordinance No. XX -XX Page 21
c. Results of annual live scans of all employees.
d. The full name, address, and telephone number(s) of all members
who participate in cultivation of marijuana.
e. The state issued identification card number of all members to whom
the medical marijuana business provides medical marijuana. If a
member does not have a state issued identification card, then the
medical marijuana business shall assign the member a unique
identifying number for the use of the medical marijuana business,
and maintain a written copy of the physician's referral for the
member.
f. The full name, addres elephone number(s) of all members to
whom the medical m ijua ovides medical marijuana.
This specific identifyin ormation of names, addresses and
phone bers of m bers is considered to be conditionally
P ed e City and 11 be deemed confidential and not
ubje City pecti unless such inspection has been
rize he City of Costa Mesa Police Chief or his/her
de a in g pursuant to a reasonable justification.
jrtie d ignation, by qualified patient(s) and person(s) with
ication cards, of any and all primary caregivers who
cipate in the collective cultivation of marijuana.
h. The dates upon which all members are dispensed medical
marijuana, the amount dispensed, and the name of the recipient.
L The delivery of medical marijuana, from the medical marijuana
Ordinance No. XX -XX Page 22
business to a member located outside of the medical marijuana
business location, including but not limited to the identity of the
recipient, the amount delivered, the date of the delivery, the
address of the delivery, the name of the employee making the
delivery, and a written receipt from the member confirming the
delivery.
A written accounting of all cash and in-kindontributions,
reimbursements, and reasonable corpensation provided by the
management members and s�o the medical marijuana
business, and all expendi s and costs incurred by the medical
marijuana business.
k. A copy of the medical marijuana business' commercial general
liability insurance policy and all other insurance policies related to
the operation of the medical marijuana business.
V
I. An inventory record documenting the dates and amounts of medical
marijuana received at the medical marijuana business, the amounts
of medical marijuana being cultivated at the location of the medical
marijuana business, the daily amounts of medical marijuana stored
at the location of the medical marijuana business, and the daily
amounts distributed to members.
m. Proof of a valid and current permit issued by the city in accordance
with this chapter. Every medical marijuana business shall display at
all times during business hours the permit issued pursuant to the
provisions of this chapter in a conspicuous place so that it may be
readily seen by all persons entering the location of the medical
marijuana business.
Ordinance No. XX -XX Page 23
Records shall be maintained on-site, either in paper or electronic form,
and secured and verified by the City CEO or his/her designee as needed
(consistent with requirements pertaining to patient confidentiality pursuant
to applicable State and Federal law), and at least every 12 months by the
qualified patient's attending physician.
iii. All records required to be maintained by the medical marijuana business
for no less than 3 years and are subject to immediate inspection upon
written request by the City CEO or his/her signee
4
d) Employees
A medical marijuana business shall maintain results of live scans
conducted annually by the medical marijuana business on all employees,
the written results of such lives being maintained at the location of
the medical marijuana busi ss.
No employee convicted within the last ten years of a felony substantially_ comment [Issues]:
related t qu tions, functions or duties of an employee of a Should all felons be prohibited fiombeing
employees?
I mar bu ch as a felony conviction for distribution of
contr bst money laundering, racketeering, etc.) shall be
employed meth arijuana business, unless such employee has
obtained a certificate of rehabilitation (expungement of felony record)
under California law or under a similar federal statute or state law where
the expungement was granted. At the request of the medical marijuana
business, the City CEO shall determine the applicability of this section to a
potential employee within a reasonable period of time after a written
request has been made to the City CEO for such determination.
iii. All employees must possess a valid government issued (or equivalent)
form of identification containing an identifying photograph of the employee,
Ordinance No. XX -XX Page 24
the name of the employee, the date of birth of the employee, and the
residential address of the employee. Color copies of such identification
shall be maintained at the location of the medical marijuana business. A
valid California Driver's license will satisfy this requirement.
iv. All owners and managers must have a current and valid identification
card.
e) Volume.
A medical marijuana business shall onl�Itfivate, ispense, store or transport
medical marijuana in aggregate amounts ti o it bers' needs. To that end
a medical marijuana business shall ensure c nce with state law limits on
amount of dried marijuana and aunt of marijua ]ants allowed per qualified
patients and persons with identi a�16n cards and/or primary caregivers
f) Only Medical Marijuana.
Medical marijuana busi s shall dis ense, offer for sale or provide only
4No
are clo ,ly a ith medical marijuana, such as pipes,
paper ,
commendations On-site.
A medical marijuana business shall not have a physician or an attending
physician at the location of the medical marijuana business to evaluate patients
or provide a recommendation for medical marijuana.
h) Signage.
The following signs in measurements of not less than eight by ten inches shall be
Ordinance No. XX -XX Page 25
clearly and legibly posted in a conspicuous location inside the medical marijuana
business where they will be visible to members in the normal course of a
transaction, stating:
i. "Smoking, ingesting or consuming marijuana on this property or within 20
feet of the medical marijuana business is prohibited."
AV
ii. "Minors are prohibited from entering this property unless they are a
qualified patient or a primary caregiver and they are in the presence of
their parent or legal guardian."[
iii. "Neither the City of Costa Mesa, C of e, nor any other
governmental agency has tested or in ed any marijuana product for
pesticides, or other regulated contaminant tributed at this location."
iv. "The sale of marijuana and'e di fijuana for non-medical
purposes are violations of st aw."
No Alcohol.
MrdicalntAllic
ss es shall not hold or maintain a license from the State
Dof Be ge Control to sell alcoholic beverages, or operate
a business that sells alcoholic beverages.
j) No Lounge or Cafe.
Medical marijuana businesses shall not operate as a lounge, cafe or restaurant
serving food or drinks for consumption on-site. There shall be no seating area,
tables, couches, or chairs for the gathering or congregating of members.
k) Quality control.
Ordinance No. XX -XX Page 26
Comment [Issue6]:
Increase to those under 2 L?
Medical marijuana businesses shall disclose the percentage level of specified
compounds, as designated from time to time by the City CEO or his/her
designee, which are present in medical marijuana to members before providing
medical marijuana.
1) Labeling.
i. Any medical marijuana provided to membhalTW properly labeled in
strict compliance with state and loca a ulations and policies,
including but not limited to those ablisheQ,by the City O#fse e#
ii. A distinct and clearly lelabel must be affixed onto all medical
marijuana items provide y a medical marijuana business which states:
a. This item contains medical marijuana
b,.Arning thjIthe item is a medication and not a food
C.
item is to be kept away from children.
Lather known allergens are used.
ight (11unces or grams) of marijuana in the item.
makes the product attractive to children or imitates candy
iv. Any edible marijuana product that is made to resemble a typical food
product (i.e. brownie, cake) must be in a properly labeled opaque (non
see-through) package before it leaves the medical marijuana business.
T ouff.Z:KammrStriffl"V .Ir�il.�:L1�
Ordinance No. XX -XX Page 27
establish additional minimum requirements as deemed necessary for
labeling of medical marijuana products, which shall be strictly adhered to
by all medical marijuana businesses.
m) Edibles
All medical marijuana edibles shall comply with the California Sherman Food,
Drug, and Cosmetic Law, as codified in section 109875, et seq. of Part 5 of
Division 104 of the Health and Safety Code, and 4 amended from time to time.
Further minimum requirements for all medical marijuana edibles include:
i. No edible medical marijuana produc equ- refrigeration or hot -holding
shall be manufactured for sale or ution at a medical marijuana
business, due to the potential for food- a illness. Baked medicinal
products (i.e. brownies, bar ies, cakes), tinctures and other non -
refrigerated type items ar acc le for manufacture and sale at a
medical marijuana business.
ii. Edible medical marijuana prod for sale or distribution at a medical
,,ggNWjWQ.na business must have been prepared by a member of that
ijuana business. No non-member medical marijuana products
are allowe1W sale or distribution at a medical marijuana business.
n) Signage.
i. Signs on the premises shall not obstruct the entrance or the video
surveillance system. The size, location, and design of any signage must
conform to the sign provisions in the Costa Mesa Municipal Code.
ii. Business identification signage shall be limited to that needed for
identification only, consisting of a single window sign or wall sign that shall
Ordinance No. XX -XX Page 28
comply with the appropriate sign requirements with the applicable zoning
district.
o) Employee Training.
All employees of a medical marijuana business shall receive appropriate
training for their intended duties to ensure understanding of rules and
procedures regarding maintaining complian the operation with State
and local law.
The medical marijuana business all take those steps necessary to
assure that the persons assigned vid urity are properly trained
or employed by a private security servi good standing with all
supervisory or regulatory bodies exercisin isdiction over such services.
P) Supply.
A medical ana di sary shall ly acquire its supply of medical
marijuana from em
<Thimum
r Medical Marijuana Dispensary.
hou f operation for a medical marijuana dispensary shall be
(daily from 7:00 a.m. to 10:00 p.m -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
r) Use Restricti s.
Smoking, ingesting or consuming marijuana at the location of the medical
marijuana business or within 20 feet of the medical marijuana business is
prohibited.
Ordinance No. XX -XX Page 29
Comment [Issue7]:
Keep these hours?
s) No Minors. Comment [Issue8]:
Increase age restriction to 21?
i. Minors are prohibited from entering the location of the medical marijuana
business unless they are a qualified patient or a primary caregiver and
they are in the presence of their parent or legal guardian.
ii. No minor shall operate a medical marijuana disp ary in any capacity,
including but not limited to, as a management ber, employee,
contractor or volunteer.
t) Odors.
A medical marijuana business shall have an air treatment system that ensures
off-site odors shall not result from its operations. This requirement at a minimum
means that the medical marijuana bshall be designed to provide
sufficient odor absorbing ventilatiorpand ms so that any odor
generated insi(ingo,'Sncadjacent
ation of the ical marijuana business is not detected
outside the bui prop ies or public rights-of-way, or within any
other unit located 'thin the same buildi as the medical marijuana business, if
the use only occupi portion ilding.
Nmedi
.
A 6
arijuan usiness shall carry insurance in the amounts and of the
types that 31%lifrptable to the City CEO or his/her designee, with minimal
coverage prolyded of comprehensive commercial general liability insurance and
comprehensive automotive liability insurance (if automobiles are used by the
medical marijuana business for any purpose) protecting the medical marijuana
business in an amount of not less than one million dollars ($1,000,000.00) per
occurrence, combined single limit, including bodily injury and property damage
and not less than one million dollars ($1,000,000.00) aggregate for each
Ordinance No. XX -XX Page 30
personal injury liability, products liability and each accident. Such insurance shall
name the city, its council members, officers, employees, agents and contractors
as additional insured as respects to any liability arising out of the operation of the
medical marijuana business.
v) Site management.
The medical marijuana business permit holder shall take all reasonable
steps to discourage and correct conditionsfiat constitute a nuisance in
parking areas, sidewalks, alleys and a*k-4,,surrounding the premises and
adjacent properties during business hours if related to the members of the
subject medical marijuana business.
"Reasonable steps" shall include immediately calling the police
upon observation of t;hat
S
requesting that those
engaging in activities nuisance or are otherwise
illegal to cease thoseities personal safety would be
threatened in makingequest.
"Nuisance" includes but is not limited to disturbances of peace,
open public consumption of medical marijuana or alcohol,
excessive pedestrian or vehicular traffic, including the formation of
any pedestrian lines outside the building, illegal drug activity,
harasfifient of passersby, excessive littering, excessive loitering,
lie parking, excessive loud noises, especially late at night or
85rly in the morning hours, lewd conduct or police detentions and
arrests.
The medical marijuana business permit holder shall make available to
members who are dispensed medical marijuana a list of the rules and
regulations governing medical marijuana use and consumption within the
Ordinance No. XX -XX Page 31
city and recommendations on sensible medical marijuana etiquette.
w) Non-profit.
L A medical marijuana business shall operate on a non-profit basis. A
medical marijuana business shall not profit from the sale or distribution of
marijuana. Any monetary reimbursement that members provide to the
medical marijuana business should only be an amount necessary to cover
overhead costs and operating expenses. Retail sales of medical marijuana
that violate California law or this chapter are expressly prohibited.
ii. Reasonable proof (as determined to the satisfaction of the City CEO or
his/her designee) of compliance with these non-profit requirements shall
be providing annually to the City CEO or his/her designee in writing along
with supporting documentation.
x) Delivery of Medj6ALUWLLjana to Members
i. All empl w Ovide deliv of medical marijuana from a medical
nab ss to r located outside the medical marijuana
busin atio t have a valid identification card at all times with the
L employee a the ery is being made.
ii. liveries ust be recorded by the medical marijuana business and
mai the regular records of the medical marijuana business.
These cords shall include but not be limited to the identity of the
recipient, the amount delivered, the date of the delivery, the address of the
delivery, and the name of the employee making the delivery.
iii. Upon receipt of a delivery outside of the location of the medical marijuana
business, a member must sign for the delivery on a written identifiable
Ordinance No. XX -XX Page 32
receipt to be kept in the regular records of the medical marijuana
business.
iv. All deliveries must leave the medical marijuana business in sealed
containers whose seals will not be broken until receipt of the delivery by
the member.
+v -.v. No delivery of medical marijuana, from the medical marijuana business to
a member located outside of the medical 1 iari'uana business location,
shall be performed by employees of lAmedrcal mari'A& business for
the two vears subseauent to the adective date of this ordi . .
y) Exemptions
The regulations contained in thi hall not app7ed
to a medical marijuana
business engaged in the following es: pursuant to Chapter 1
of Division 2 of the Health and Safe ode; a h th care facility permitted
pursuant to ter 2 o e Division f the Health and Safety Code; a
residential care "tv f rsons with onic life-threatening illness permitted
the cullRbkon. storm.
or us
elision of the Health and Safety Code; a
elderly licensed pursuant to Chapter 3.2 of Division
le,, a residential hospice or a home health agency
8 of Division 2 of the Health and Safety Code, or
by a aualified patient or patients or that oatient's
or careaivers. incidental to a residential use bv. and
location, as long as such use complies strictly with applicable law regulating such
use and the location of such use, including, but not limited to, Health and Safety
Code sections 11362.5 and 11362.7 et. seq.
Ordinance No. XX -XX Page 33
Ordinance No. XX -XX Page 34
d) ReGti ides and GE)RtaMiRants
.rsr r_�ns��sz, - . rTnMm7-T.W .rrriak
Sec. 9-504. Fees
a) Fees.
An application fee set by resolution of the city council shall be required for
Ordinance No. XX -XX Page 35
formal processing of every application made under this chapter.
The City Council is authorized to pass resolutions to recover any and all
fees and costs incurred by the implementation of this chapter through an
appropriate fee recovery mechanism to be imposed upon medical
marijuana businesses and their operations.
b) State Board of Equalization Seller's Permit Require
The State Board of Equalization has determ a medica njuana
transactions are subject to sales tax, regardless o whether the individual or
group makes a profit, and those engaging Arans s involving medical
marijuana must obtain a Seller's Permit from tate Board of Equalization.
Such permit shall be conspicuously displayed at Medical Marijuana Business.
Failure to maintain the Seller's Permit is grounds for revocation of a medical
marijuana dispensary permit and/o me arijuana cultivation site permit.
Sec. 9-583505. Location Restrictions
a) Med' ana ess II not be located within one thousand feet of a
lic or pri hoo , lic library or youth center (serving youth ages
ei teen (18) and under). •
b) Medical m ijuana inesses shall not be located within two hundred (200') feet
of a reside a except pursuant to the issuance of a minor conditional use
permit as det fined by the director of development services.
c) Medical marijuana businesses may only be located in iia', manufacturing
or industrial zones as designated in Row 31a, Table 13-30, of Section 13-30 of
chapter 4 of Title 13 of the Costa Mesa Municipal Code.
Ordinance No. XX -XX Page 36
d) No medical marijuana business can be located within one thousand (1000') feet
of any other medical marijuana business, irrespective of ownership.
e) No medical marijuana business shall be established within two hundred (200') I_ J ,
feet of either an existing sober living home as defined in Section 13-6, Article 2 of
Title 13 of this Code. or a state licensed drua and alcohol treatment facilitv as
Sec. 9-504506. Suspension and Revocatio
The City CEO or his/her designee is authorized to suspend and/or revoke any and all
permits issued pursuant to this chapter upon the determination through written findings
of a failure to comply with any provision of this chapter, any condition of approval, or
any agreement or covenant as required pursuant to this chapter. The City CEO or
his/her designee may revoke a medical marijuana regulatory permit if any of the
following, singularly or in combination, occur:
<ct
or hi desi rmines that the medical marijuana
ary o atio or the operator, has failed to comply with any
of this ch any dition or approval, or any agreement or covenant
Ir
pursuant to this chapter; or
b) Operations cease for more than 180 calendar days (including during any change
of ownership, if applicable); or
c) Ownership is changed without securing a new regulatory permit; or
d) The medical marijuana dispensary and/or cultivation site fails to maintain
required security camera recordings; or
Ordinance No. XX -XX Page 37
Comment [Issue9]:
What should minimum distance be if this section is
added?
e) The medical marijuana dispensary and/or cultivation site fails to allow inspection
of the security recordings, the activity logs, or of the premise by authorized city
officials.
Sec. 9-585507. Violations and Penalties.
Any person, whether as principal, employee, agent, partner, director, officer,
stockholder, or trustee or otherwise, violating or causing the violation of any of the
provisions of this chapter shall be guilty of a misdemeanor, and any conviction thereof
shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by
imprisonment for not more than six (6) months, or by both such fine and imprisonment.
Any violation of the provisions of this chapter shall constitute a separate offense for
each and every day during which such violation is committed or continued.
Sec. 9-586508. Public Nuisance.
In addition to the oeiiMies set'th in this
which is operating in
constitute isan d,
operati All costs%termit
sul
cos , be paid b
ter, any medical marijuana business
this chapter is hereby declared to
be abated or enjoined from further
blic nuisance, including attorneys' fees and court
leeli�r of the medical marijuana business pursuant to
Chapter III (Public Nuisance Abatement) of Title 20 (Property Maintenance) of the Costa
Mesa Municipal Code. Any appeals to a determination that a medical marijuana
business is operating as a public nuisance shall be pursuant to the provisions in the
same chapter.
Sec. 9-509. Cost Recovery for Excessive Use of Resources Due to Nuisance Activities
at Medical Mariivana Businesses
Ordinance No. XX -XX Page 38
The purpose of this section is to provide administrative and civil remedies against
responsible persons who permit, allow, or fail to prevent recurring nuisance activities to
occur at medical marijuana businesses within the City of Costa Mesa that compromise
the public health, safety or welfare.
a Definitions. For the purposes of this section the following words or phrases shall
have the meanings given herein:
"Administ
following:
section and in re ari ici atin
subiect to this section. i Judi Ii
inclu butALL-limited tot ctual
respond in ca s RbWrnuisance
enforcing statutdv offenses related to
nducting any heari
). attornev's fees.
and costs of the
nvestigating and
attend ing�h aringis; and preparing notices, civil citations, and orders.
ii. "Call NfMuJr-shall mean anv call made to the police department
initiated calls for service.
iii. "Officer -initiated calls for service" shall be calls for service that are generated
by officers while on routine patrol wherein officers happen upon nuisance
activity as enumerated in subsection (x) below.
Ordinance No. XX -XX Page 39
iv. "Chief of police" shall mean the Chief of the Police Department and shall
include his/her designee.
"Enforcement officer" shall mean anv person authorized by the chief of police
to enforce violations of this chapter.
a. Disturbing the peace in violation of Penal Code Section 415.
b. Manufacturing, giving away, selling, offering for sale, soliciting the sale
of, possessing, purchasing, using, igniting, exploding, firing or
Ordinance No. XX -XX Page 40
otherwise discharging any fireworks within the city in violation of article
8 (fireworks sales) of chapter II (regulation of certain businesses) of
title 9 (licenses and business regulations) of this Code, any applicable
provisions of the California Fire Code, as adopted by reference by
section 7-14, and section 7-19 of chapter 11 (fire prevention) of Title 7
(fire protection and prevention) of this Code.
(Health & Safety Code §§ 11000 et seg.).
i. The commission or attempted commission of any act of prostitution as
defined in Penal Code Section 647(b).
Ordinance No. XX -XX Page 41
j. The manufacture, sale, possession, or use of a firearm in violation of
the Dangerous Weapons Control Law (Penal Code 12000 et seg.).
A "Property" shall mean the lot or parcel(s) of land where the medical marijuana
business is located within the Citv of Costa Mesa.
the provisions of this section. The chief of police shall have the authority to
designate city employees as enforcement officers in conformance with this
section to assist with enforcement responsibilities. includina. but not limited to
the issuance of civil citations.
Ordinance No. XX -XX Page 42
Comment [Issuel0]:
If this section is used, this number needs to be set.
Perhaps base on square footage of business, annual
revenues, or some other quantifiable number.
c) Scope of Application.
L A criminal conviction is not required for establishing the occurrence of
nuisance activity pursuant to this section. The occurrence of nuisance
activitv may be established by documented evidence that the nuisance
a. Identify the medical marijuana business and the threshold amount
of nuisance activity for that business;
b. Summarize the evidence of the nuisance activity occurring at or in
Ordinance No. XX -XX Page 43
the medical mariivana business (includina the documented
observations of the peace officer or a witness willing to testify) for
which the responsible person is being imposed a fee;
c. Provide the dates on which the nuisance activity was reported to
the police department and the dates of anv prior responses by the
d. Notifv the propertv owner a
ive actions. includina b
iii. Prior to the issuance of t1%7rst recovery fee AM. the chief of
ical mlriivana busin
registered mail, to the mailing address provided on the business' most
recent business license application.
Notice shall be deemed served on the date the notice is received by the
recipient, pursuant to the records of the U.S. Postal Service. In the event
Ordinance No. XX -XX Page 44
the notice is refused by the recipient. notice shall be deemed served five
business days following mailing of the notice by certified or registered
mail.
. : .
i. The responsible person may be notified in writing for every month that the
medical marijuana business generates excessive police calls, including
the date, time and type of nuisance activities that gerterated the calls, and
the total amount that those calls will jii0invoiced. L
A. On a periodic basis,lie chief of polices ll notify the fi
pwmed a� the police Jces required, and such other
information asqR%Wcessarv. The finance department shall
thereafter cause
,,a��ppropriate billing of the administrative costs to be
made to the resrlonsible person, and shall serve such invoice to the
responsible owner in accordance with section 9-508(f).
II become final within ten (1
u'hless appealed pursuant to section 9-508(h). Once a cost
recovery invoice becomes final, payment shall be due to the city
within thirty (30) days. The invoice shall make reference to the
appeal procedures in section 9-508(h), and shall specify that an
unsuccessful appellant shall also be invoiced for all administrative
costs of the appeal
Ordinance No. XX -XX Page 45
C. Notice of the assessment of administrative costs shall be provided
to the responsible person. The notice shall be given at the time of
imposing the assessment and shall specify that the property may
be sold after three years by the tax collector for unpaid delinquent
assessments. The tax collector's power of sale shall not be affected
by the failure of the property owner to receive notice. The
assessment may be collected at the same time and in the same
manner as ordinary municipal taxe4are collected, and shall be
sub'ect to the same penaltiesA the same proqre and sale in
case of delinquency as prArded for ordinary municipN taxes. All
laws applicable to the levy, Milection * enforcement of municipal
transferred or conveved to a bona fide MWaser for value. or if a
Urn
shall not result in a lien agest the real property but instead shall
be transferred to tfatcured roll for collection.
i. Appeals pursuant to this section shall be heard by an independent hearing
officer.
ii. Any appeal shall be filed with the City CEO within ten (10) calendar days
following the service of the invoice on the responsible person. The appeal
shall be in writing and shall state the grounds for the appeal. The appeal
Ordinance No. XX -XX Page 46
shall be accompanied by the amount owed under the invoice, as well as
the fee required for the taking of the appeal, which fee shall be set by city
council resolution. The City CEO shall have the discretion to waive or
modify the amount to be deposited prior to the appeal if the responsible
person demonstrates by clear and convincing evidence that depositing the
full amount would result in a substantial hardship.
F-121,
followinaP"klin`a of the
hall then notifv the appellaaffbv mail
hearing date for good cause.
iv. To allow appellants the ol3bMunity to fullv pre-%Efheir arauments. the
WIT.7i
)peal.Zbe hearing (Wer also has the discretion to exclude
hearina ms needlesslv repetitive.
to lbbctions 1094.5 and 1094.6 of the Code of Civil Procedure.
Sec. 9--W510. Appfals
Any decision regarding approval, conditional approval, denial, suspension or revocation
may be appealed to the city council in accordance with the provisions of Chapter IX of
� Comment [Issuell]:
Title 2 of the Costa Mesa Municipal Codel, with the exception of the operation of Section
Possibly limit ability of City Council Members to
9-509 which provides for Its own appeal procedures. request appeals as provided for in CMMC Section 2-
302.
Ordinance No. XX -XX Page 47
Sec. 9-588511. Prohibited Operations and Nonconforming Use
All medical marijuana businesses in violation of Health and Safety Code Section
11362.7 et seq. and 11362.5 et seq., this chapter, or any other applicable State law are
expressly prohibited.
It is unlawful for any medical marijuana business in the city, or any agent, employee or
representative of such medical marijuana business, to permit any breach of peace
therein or any disturbance of public order or decorum by any tumultuous, riotous or
disorderly conduct on the premises of the medical marijuana business, or to violate any
State law, or this chapter.
No use which purports to have distributed marijuana prior to the enactment of this
chapter shall be deemed to have been a legally established use under the provisions of
the Costa Mesa Zoning Code, the Costaesa unicipal Code, or any other local
ordinance, rule or regulation, and such use all not be entitled to claim legal
nonconforming status.
Sec. 9-589512. Severability
If any section, subsection, subdivision, sentence, clause, phrase, word, or portion of this
Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The People of the City of Costa Mesa hereby
declare that they would have adopted this Ordinance and each section, subsection,
subdivision, sentence, clause, phrase, word, or portion thereof, irrespective of the fact
that any one or more sections, subsections, subdivisions, sentences, clauses, phrases,
words or portions thereof be declared invalid or unconstitutional.
Sec. 9-5x-8513. Amendment
Ordinance No. XX -XX Page 48
Provisions of this chapter may without any restrictions be amended or repealed is
kAher their ^„rpeses by ordinance passed by a majority vote of the city council.
Sec. 9-514. Consistency with Statewide Regulation of Marijuana
This chapter shall be read consistent with any statewide regulation of medical marijuana
that is promulgated by the California legislature or by voter approval in the future. In the
event statewide regulation is passed pursuant to the decriminalization or legalization of
marijuana for recreational use, this chapter shall overn the conduct of those business
allowed to distribute marijuana under such visions to the fullest extent possible
consistent with such statewide regulation.
PROPOSED SPECIAL TAXIECTIONS FOR VOTER APPROVAL
Sec. 9-515. Medical Marijuana Tax N
d/or
h $1.00,Of proceeds or fractional part thereof, the rate to be set
Council.
chapter, shaWay a maximum monthly fee of $10.00 per square foot under active
cultivation, the rate to be set by resolution of the City Council.
c) An annual medical marijuana business license fee set by resolution of the City
Council, but not to exceed $10,000, shall be required for the issuance of a
medical marijuana business permit. Separate permits may be required for the
Ordinance No. XX -XX Page 49
cultivation of medical cannabis as distinct from the dispensing of medical
cannabis.
d) All revenues collected from the medical marijuana taxes provided for in this
chapter are to be strictly allocated to only the following specific purposes in the
1. KeimDursement io ine UTV Tor aii costs incurrea jr7gawgigi
special election on this tax measure; 164,
iii. Unfunded City pension liabilities;
iv. Drua abuse and prevention educ
e Failure to Pay the taxes set fort ter shall 31nmect to penalties,
interest charaes. and assessment s t nc may establish and the
The City Counc i e the tax a rized by this chapter at a lower rate
and lish ptiOR401111fees, or other reductions and penalties and
-ffrpqt char ass ents for failure to Dav the tax in a timelv manner. as
incentiJIMr reductiM. and restorina the maximum tax specified in this chapter
i ne paymenVE ine tax requirea pursuant to anis cnapter snail not De consiruea
as authorizing the conduct or continuance of any illegal business or of a legal
business in an illegal manner. Nothing in this chapter implies or authorizes that
any activity connected with the distribution or possession of marijuana is legal
unless otherwise authorized and allowed in strict and full conformance to the
provisions of this Code. Nothing in this chapter shall be applied or construed as
Ordinance No. XX -XX Page 50
authorizina the sale of mariivana.
h) Taxes provided for under the provisions of this chapter are not sales or use taxes
and shall not be calculated or assessed as such. The taxes shall not be
separately identified or otherwise specifically assessed or charged to any
individual member: rather, the taxes are imposed upon the medical mari'uana
business.
procedures to implement and administer th' e'rto ensur a efficient and
timelv collection of the tax imposed by thirchaDteiL includina with imitation.
failure to pay the tax as provided.
V
Sec. 9-516. Medical Marijuana Tax Reaulations and
Each person owina Tax und'l is chapter. on or before the last business
day of each cafe month as established by the City CEO shall prepan
a tax return tothe C EO of the total proceeds and/or totalsquare feet
00,
der active Itivation and the amount of Tax owed for the preceding
dar mo . At the time the Tax return is filed the full amount of the
Tax r the precedina calendar month shall be remitted to the citv.
ii. All tax returns shall be completed on forms provided by the City CEO or
his/her designee.
iii. Tax returns and payments for all outstanding taxes owed the city are
immediately due the City CEO upon cessation of business for any reason.
Ordinance No. XX -XX Page 51
iv. Whenever any payment, statement, report, request or other
communication received by the City CEO is received after the time
prescribed by this section for the receipt thereof, but is in an envelope
bearing a postmark showing that it was mailed on or prior to the date
)rescribed in this section for the receipt thereof, or whenever the City CEO
or other communication was in fact depositeAn the United States mail on
paid pursuant to this chapter on or before the due date shall pay penalties and
interest as follows:
L A penalty equal to twenty-five percent of the amount of the Tax in addition
to the amount of the Tax, plus interest on the unpaid Tax calculated from
Ordinance No. XX -XX Page 52
the due date of the Tax at a rate established by resolution of the
Council; and, an additional penalty equal to twenty-five percent of the
amount of the Tax if the tax remains unpaid for a period exceeding one
calendar month beyond the due date, plus interest on the unpaid Tax and
interest on the unpaid penalties calculated at the rate established by
resolution of the Citv Council.
c) Refunds.
interest accrued on the delinquent tax and a waiver shall be
granted only once during any twenty-four month period.
Ordinance No. XX -XX Page 53
i. No refund shall be made of any tax collected pursuant to this chapter,
except as provided in this Section.
ii. No refund of any Tax collected pursuant to this chapter shall be made
because of the discontinuation, dissolution, or other termination of a
medical mariivana business.
the claimant who paid tl
filed with the City CEO.
that awn claim for refund is
business9lbordsAg.the claimant IForder to determine the eligibility of the
claimant to the ime o claim for refund shall be allowed if the
vi. MMe event Aht the Tax was erroneously paid and the error is attributable
to thILiZe entire amount of the Tax erroneously paid shall be refundec
retain the amount set forth in this Chapter from the amount to be refunded
to cover expenses.
vii. The City CEO shall initiate a refund of any Tax which has been overpaid
or erroneously collected whenever the overpayment or erroneous
Ordinance No. XX -XX Page 54
d E
collection is uncovered by a city audit of Tax receipts. In the event that the
Tax was erroneously paid and the error is attributable to the city, the entire
amount of the Tax erroneously paid shall be refunded to the claimant. If
the error is attributable to the claimant, the city shall retain the amount set
forth in this chapter from the amount to be refunded to cover expenses.
the City CEO, with the concurrence of the City Attorney, may from time to
iii. The Citv CEO or his/her de%anee 0111hmue-tMe cower to audi
including both state and federal income tax returns, California sales tax
returns, cultivation recogs, or other evidence documenting the
-Agross receipts oll&medical marijuana business or persons eng;
, the operation of a medical marijuana business, or other evidence
inina She amount of Tax. if anv. required to be paid by the
pros Ofthis chapter, and for the purpose of verifying any statements
or any*r—m thereof when filed by any person pursuant to the provisions of
this chapter. If such medical marijuana business or person, after written
demand by the City CEO, refuses to make available for audit, examination
or verification such books, records, or equipment as the City CEO
requests, the City CEO may, after full consideration of all information
within the City CEO's knowledge concerning the medical marijuana
Ordinance No. XX -XX Page 55
business and activities of the person so refusing, make an assessment in
the manner provided in subsection (F) of this Section.
iv. The conviction and punishment of any person for failure to pay the
required tax shall not excuse or exempt such person from any civil action
for the tax debt unpaid at the time of such conviction. No civil action shall
the provisions of this chapter is correct, or that the amount of tax is
correctly computed, the City CEO may compute and determine the
amount to be paid and make a deficiencv determination upon the basis of
the facts contained in the statement or upon the basis of any information
in his or her possession or that may come into his or her possession. One
Ordinance No. XX -XX Page 56
or more deficiency determinations of the amount of tax due for a period or
periods may be made. When a person discontinues engaging in a
business, a deficiency determination may be made at any time within
three years thereafter as to any liability arising from engaging in such
business whether or not a deficiency determination is issued prior to the
date the tax would otherwise be due.
Lim
under this Chapter:
the provisions of this chapter.
b. If the
Person has tax due under the provisions of this
chapter.
cd d statement or ret or furnished to the City CEO
aaeqLrme substantiati f the information contained in a statement
or return already filed, or paid any additional amount of tax due
under the provisions of this chapter.
If the Sity CEO determines that the nonpayment of any tax due
6W9fthis chanter is due to fraud. a penalty of twentv-five oerc(
penalties and interest otherwise stated in this chapter.
e. The notice of assessment shall separately set forth the amount of
any tax known by the City CEO to be due or estimated by the City
CEO, after consideration of all information within the City CEO's
Ordinance No. XX -XX Page 57
knowledge concerning the business and activities of the person
assessed, to be due under each applicable section of this Chapter,
and shall include the amount of any penalties or interest accrued on
each amount to the date of the notice of assessment.
f. The notice of assessment shall be served upon the person either
on the face of the business to icate issued Wer this Code or
to such other address asor she small reaister wi Cjty CEO
such purpose, then -to suchperson's last wn address. For the
purposes of this sec n. a service by MAIIt is complete at the time
VV%Wn ten daVs after the d of service the person may apply in
-writing to the City CE9�or a hearing on the assessment. If
ig plicationjor a hearing before the City is not made within the time
heroin rescribed the tax assessed by the City CEO shall become
final conclusive. Within thin daVs of the receipt of an such
applic t on for hearing, the City CEO shall cause the matter to be
Ltdithearina before a hearina officer pursuant to the provisions of
unless a later date is aareed to by the Citv CEO and the person
requesting the hearing. Notice of such hearinq shall be given by the
City CEO to the person requesting such hearing not later than five
days prior to such hearing. At such hearing said applicant may
appear and offer evidence why the assessment as made by the
Ordinance No. XX -XX Page 58
CEO should not be confirmed and fixed as the tax due. After
such hearing the hearing officer shall determine and reassess the
proper tax to be charged and shall give written notice to the person
in the manner prescribed in this Chapter for giving notice of
assPssmPnt_
f) The tax measures provided for in this section which apply to medical marijuana
are intended to equally apply to all marijuana if statewide authorization of general
marijuana use in California is promulgated in th_etuture.
'Al�`
SECTION 2. Section 13-16 (Enforcem
(General) of Title 13 (Planning, Zoning
replaced with the following:
Sec. 13-16. Enforcement.
) of Chapter I
repealed and
(a) Criminal pro tion. Any person, whether as principal, agent, or employee,
violating the ter f thi ning code may be prosecuted as provided in section
1-33 nicip de.
(b) Criminal citation. For the purposes of this zoning code, a violation of the terms of
this zoning code may be cited as either an infraction or misdemeanor pursuant to
State Government Code Sections 36900 and 36901 and as provided in section
1-33 of this Municipal Code.
(c) Civil action. As an alternative to prosecution or citation, or as an additional action,
the city attorney may, at the request of the development services director,
institute an action in any court of competent jurisdiction to restrain, enjoin, or
abate the condition(s) or activity(ies) found to be in violation of the provisions of
this zoning code.
Ordinance No. XX -XX Page 59
(d) Nuisance. Any use, structure, or property that is altered, enlarged, erected,
established, maintained, moved, or operated contrary to the provisions of this title
or any condition of approval, is hereby declared to be unlawful and a public
nuisance and may be abated by the city through civil proceedings by means of a
restraining order, preliminary or permanent injunction, or in any other manner
provided by law for the abatement of such nuisances.
SECTION 3. Line 31a of Table 13-30 (City of Costa MeLande Matrix) of Chapter
IV (Citywide Landuse Matrix) of Title 13 (Planning, A nd Develooment) is hereby
repealed and replaced with the following:
Ordinance No. XX -XX Page 60
ATTACHMENT A
5 Subject to the limitations and requirements of Chapter VI (Medical Marijuana Dispensaries and Cultivation) of Title 9 (Licenses and
Business Regulations). A
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Ordinance No. XX -XX Page 61
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5 Subject to the limitations and requirements of Chapter VI (Medical Marijuana Dispensaries and Cultivation) of Title 9 (Licenses and
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Ordinance No. XX -XX Page 61
r
SECTION 4. Effective Date. This Chapter, if approved by the electorate of the City of
Costa Mesa at the General Municipal Election of November 4, 2014 shall become
effective immediately upon the declaration of the results of that election by the City
Council of the City of Costa Mesa.
SECTION 5. Severability. If any section, subsection, sentence, clause, phrase, or
portion of this Ordinance is for any reason held to be invalid or unenforceable by a court
of competent jurisdiction, the remaining portions of this Ordinance shall nonetheless
remain in full force and effect. The People hereby decl that they would have adopted
each section, subsection, sentence, clause, p o portion of this Ordinance,
irrespective of the fact that any one or more ions, ssections, sentences, clauses,
phrases, or portions of this Ordinance be declar ali nenforceable.
SECTION 6. Execution. The Mayor is hereby authorize8 to attest to the adoption of the
Ordinance by the voters of the City of Costa Mesa by signing where indicated below.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED
and ADOPTED by the People of the City of Costa Mesa, California voting on the
City Clerk
APPROVED AS TO FORM:
City Attorney
Ordinance No. XX -XX Page 62